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Human Resources Management According to Narayanmurthy, the success of Infosys was due above all to its ability to attract, develop, retain human capital’
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Some Changes in the World of Business Knowledge Work Versus Assembly Line IT, IT, IT, IT, IT / Commuciation / Communication….. Service Industry Globalisation Quality, Customer, Competition Reduced Barriers to entry Talent Famine… Labour Imbalances Virtual Workplaces What is HRM?
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Why is it important? People as important organisational resources Value from people – function of way they are managed -At Organisation Level -At the level of individual Managers STRATEGY IN PEOPLE MANAGEMENT
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HR Strategies Supporting Business Strategy Infy TCS leverage freshers Globalisation strategy of Infy – next slide L & T uses training / foreign assignments to manage attrition Mass Recruitment at ICICI Escorts – Trehan – retaining Nurses Upgrading Human Resources – Banks, Manufacturing Companies Go to W
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Why did Infosys CFO move to HR in May 2006 ? His Goals… ET 2/5/2006 increase the bonding between the people and organisation by better communication Structuring so that managers will have more responsibility for people — delegation of authority and training. Globalise workforce rapidly. - more local hiring in US and Europe, take in more engineers and delivery people. Set up HR organisations in the US (Plano) and Europe(London). Raise the number of expats in Banagalore etc etc
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Naik on Attrition at Larsen and Toubro - 2006 L&T attrition due to boom in infrastructure activities special human resource strategy to reduce attrition - 15 % design & engineering division -8.9 % construction - 10 % manufacturing -14 % IT/infotech division -12.5 % - whole company “… We would have been comfortable with a rate of below 5 per cent, but we have accepted the fact that attrition is here to stay," The company's HR strategy includes accelerating training, and giving Overseas opportunities
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Relationship between business perfomance and personnel policy Mark Huselid (USA) – 1995 Data of 965 firms Related HR practices to Attrition Productivity Financial results Analysis showed 1σ in ‘index of work practices’ accounted for 16 % increase in productivity. Where people development is an actively pursued strategy - the organisation performs better The Human Value of the enterprise – Andrew Mayo
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Human Capital Index (HCI – STARTED 1999) - set of measures quantifying exactly which HR practices and policies have the greatest correlation to shareholder value. Concluded that Superior practices precede shareholder value creation Watson Wyatt Human Capital Index®: Human Capital As a Lead Indicator of Shareholder Value
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Watson Wyat Study - 2002 Asia Pacific Human Capital Index Survey review of the people practices and financial performance 500 publicly traded companies in 12 Asia Pacific countries Responses to a questionnaire – analysis + statistical correlation between responses and the financial performance Over a five year period, companies High HCI score - 107 % increase in shareholder value Medium - 38 % Low – decrease of 3 %
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W and W’s 2004 Human Capital Research – Asia Pacific
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Source - HRM Text and Cases, K Ashwathapa THE BEST COMPANIES TO WORK FOR (BT Survey - 2000) Egalitarian Work Practices Stock Options Information Sharing On going Upgradation of skills Learning Organisations - Knowledge Management Empowerment Great Work Content Performance Driven Culture No Lay-off policy Therefore HRM must be concerned with
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HRM Must be concerned with attracting and retaining RIGHT people developing them to contribute -changing mindsets motivating /engaging them to give their best Ensuring the existence of factors facilitating performance ensuring that human endeavour is effective
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Scope of HRM A Dynamic Interaction of … HR Planning Recruitment & Selection Development Managing and Assessing Performance Culture Building Participation & Involvement Motivation & Reward Communication Correction Employee Relations Employee Welfare HRM versus Personnel Management
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HRM VS PERSONNEL MANAGEMENT People are resources to be developed, respected and used with care versus people as an instrument / a factor of production Mutuality of interest versus organisation’s interest Proactive, strategic function versus reactive administrative stand alone function Based on support versus based on control
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INTERDISCIPLINARY NATURE OF HRM Industrial Psychology - People at work Social Psychology - How people affect one another Organisation Theory - why organisations exist, how they function Organisation Behaviour - causes of individual and group behaviour- use of knowledge in organisations Law Political Science Economics Place of HR department in Organisation Chart
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Place of HR Department in an Organisation
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Organisation Chart of an Advertising Agency Structure of an HR Department
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© Geometric Limited | www.geometricglobal.com Human Resource Team - Geometric Corporate HR Rishi Agarwal PLM Institute Hemant Shah Global Resourcing & Staffing Ravikumar D Vice President, HR Rajiv Singh 3DPLM Vandana G Bombay Sonalika Johri Pune Nidhi Jang Bangalore Shabri A Location HR Delivery Center 3DPLM Shivani Ayre (Mumbai) Smita / Neha/Sajiri (Pune) Pune Sholy/ Anuprita/Payal Aditi / Krupa/Lata Bombay Bindu / Pratibha Tejaswini Bangalore Prathibha V Fenil M Geometric Engineering Mike Pelki Bangalore Shabri A/Nidhi Comp & Ben Policies Sujata Rai Capability Building Naaz Mushrif India Recruitment Kamal Dunani
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HR Functions Personnel Administration Recruitment / Selection / Performance Evaluation Training and Development Compensation and Benefits Industrial Relations Welfare Change Champions Culture building Communication Org Image Whose job is HRM?
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Actual roles vary from Company to Company Whose Job is HRM? A Shared Responsibility Recruitment and Selection - ( some roles) Functional Specialist’s Role HR Functionary’s Role
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ROLE OF HR FUNCTIONARY Business Partner Problem Solver Service Provider - develops HR Systems, Policy Innovator Enabler/ Coach / Change Agent Consistency Monitor Guardian of the Organisation’s values regarding people
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Managing HR, Bohlander & Shell COMPETENCIES OF A HR MANAGER Business Mastery HR Mastery Change Mastery Personal Credibility What is Policy - Some HR Policies
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Examples of HR Policy Hiring on MERIT, disregarding gender, source, Terms of employment Medical Assistance Values and Ethics Training and Development Employee contact with customers Why Policy?
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WHY IS HR POLICY NEEDED? Ensures due consideration to Human Resources Consistency of treatment Ensures continuity of action Serves as a standard of performance Sound policy builds employee motivation Sound policy helps resolve conflicts Permits delegation and planning
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FEATURES OF SOUND POLICY Definite, clear in writing Stable, not rigid. Consistent with organisation’s aims Regard needs of all important stakeholders Consistent and uniform Capable of being evaluated Indicate scope of discretion The End
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WHAT IS HRM? Concerned with managing people individually group Across the organisation Aimed at getting better organisation results through people That being so - it must be concerned with…
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DEFINITIONS Strategic and a coherent approach to the management of an organisation’s most valuable assets can be regarded as a set of inter related activities with an ideological and philosophical underpinning. Why Strategic - HRM versus Personnel Management
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Actual roles vary from Company to Company Recruitment and Selection - Functional Specialist’s Role Assist Job analyst understand duties of people Explain to HR the future needs and the type of people required Perhaps – screen bio –data Perhaps – develop technical test Interview candidates and decide on whom to select
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Actual roles vary from Company to Company Recruitment and Selection HR Functionary’s Role Write Job Description & Job Specification Develop Sources of recruitment Send interview communication conduct initial screening interviews and refer feasible candidates to supervisor Arrange medical tests Issue appointment letter
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IBM – FROM bt 20/5/07 When IBM got a big SAP Implementation project in China it scanned operations across 160 countries and 1,35,000 employees in global services division and finally zeroed in on Atanu Ghosh in the Bangalore office because he had a track record of handling similar complex cases
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