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Functions of HRM.ppt

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The document discusses the functions of human resource management (HRM). It outlines managerial functions such as planning, organizing, staffing, directing, and controlling. It also describes operative functions including employment, development, compensation, maintenance, motivation, personnel records, employee relations, and separation. Finally, it notes the advisory functions of HRM which involve advising top management and departmental heads. The overall purpose of HRM is to acquire, develop, manage, motivate, and gain commitment from employees to achieve organizational goals.

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Functions of HRM
Function of Human Resource Management •Human resource management is concerned with hiring, motivating, and maintaining workforce within businesses. •As per Armstrong (1997) HRM is defined as “ a strategic approach to acquiring, developing, managing, motivating and gaining the commitment of the organization’s key resources- the people who work in and for it.”
FUNCTIONS OF HRM MANEGERIAL OPERATIVE ADVISORY
Managerial Functions • Planning • Organizing • Staffing • Directing • Controlling
1. Planning • Future course of action. • For a human resource manager, planning means the determination of personnel programs that will contribute to the goals of the enterprise. • Demand and supply forecasting for each job. • Identifying net shortage and excess of manpower. • Developing HR policies and programmes.
2. Organizing • Designning and developing organisation structure to carry out the various operations. • The organization structure basically includes the following: – Grouping of personnel activity logically into functions or positions; – Assignment of different functions to different individuals; – Delegation of authority according to the tasks assigned and responsibilities involved; – Co-ordination of activities of different individuals.
3. Staffing • It is the process of obtaining and maintainingcapable and competent personnel in various positions at all levels, i.e. manpower planning, recruitment, selection, placement and induction.
4. Directing • The direction function of the personnel manager involves encouraging people to work willingly and effectively for the goals of the enterprise. – Motivation – Leadership – Communication – Morale
5. Controlling • Controlling is concerned with the regulation of activities in accordance with the plans, which in turn have been formulated on the basis of the objectives of the organisation. • It involves performance appraisal, critical examination of personnel records and statistics and personnel audit.
FUNCTIONS OF HRM MANEGERIAL OPERATIVE ADVISORY
Operative Functions 1. Employment/Procurement 2. Development 3. Compensation 4. Maintenance 5. Motivation 6. Personnel Records 7. Employee Relations 8. Separation
1. Employment • Employment is the first operative function of HRM. This involves procuring and employing individuals with suitable knowledge, skills, experience and aptitude necessary to perform various jobs. • The various functions of employment are:  Job analysis and design  HR planning  Recruitment  Selection  Placement  Induction
• Job Analysis and Design: Describing the responsibilities and minimum qualities required to perform the job. • Human Resource Plan: Determination of right people at right time at right position. • Recruitment: Recruitment refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organization. • Selection: The process of choosing the most suitable people out of acceptable candidates who have applied for a job in the organization from both within as well as outside the organization. • Placement and Induction: Process to introduce new employees to organization.
2. HR development •Process of improving, moulding and changing the skills, knowledge and ability of an employee HR development involves functions such as: •Training – Training is the systematic development of knowledge, skills and attitudes required to perform a given task or job successfully, in an individual. •Management development – It is the concept of developing the employees of an organization to meet future changes and challenges. •Career planning and development – Career planning and development refers to identifying one’s career goals and formulating plans for achieving them through various means such as education and work experience. •Performance appraisal – This is the process of evaluating the performance of an employee on the job and developing a plan for the employee’s improvement.
3. Compensation • It includes all the rewards that an employee receives during the course of his or her job–for his or her contributions to the organisation. It includes: Job evaluation – It is a systematic determination of the value of each job in relation to other jobs in the organisation, in the industry and in the market. Wage and salary administration – It is the process of formulating and operating a suitable wage and salary programme. Incentives – These are the rewards that an employee earns in addition to regular wages or salary based on the performance of the individual, the team or the organisation. Fringe benefits – These are monetary and non-monetary benefits given to employees during their employment and sometimes, also in the post-employment period.
4. Maintenance (Working Conditions and Welfare) • Process of providing employees the working conditions so that they may like their work and workplace and maintain their efficiency. • These include measures taken for health, safety, and comfort of the workforce. • The personnel department also provides for various welfare services which relate to the physical and social well- being of the employees. • These may include provision of cafeteria, rest rooms, counseling, group insurance, education for children of employees, recreational facilities, etc.
5. Motivation Process of integrating people into a work situation in a way that it encourages them to perform / deliver to the best of their ability. ◦ Understanding needs ◦ Designing motivation techniques ◦ Financial ◦ Non-financial ◦ Monitoring
6. Personnel Records • The human resource or personnel department maintains the records of the employees working in the enterprise. • It keeps full records of their training, achievements, transfer, promotion, etc. • It also preserves many other records relating to the behaviour of personnel like absenteeism and labour turnover and the personnel programs and policies of the organisation.
7. Employee Relations • These days, the responsibility of maintaining good industrial relations is mainly discharged by the human resource manager. • The human resource manager can help in collective bargaining, joint consultation and settlement of disputes, if the need arises. • The human resource manager can do a great deal in maintaining industrial peace in the organisation as he is deeply associated with various committees on discipline, labour welfare, safety, grievance, etc.
8. Separation • Since the first function of human resource management is to procure the employees, it is logical that the last should be the separation and return of that person to society. • The personnel manager has to ensure the release of retirement benefits to the retiring personnel in time. • Types of Separation: – Retirement – Resignation – Layoff – Retrenchment – Dismissal
III. Advisory Functions • Human resource manager has specialized education and training in managing human resources. 1. Advised to Top Management: Personnel manager advises the top management in formulation and evaluation of personnel programs, policies and procedures. He also gives advice for achieving and maintaining good human relations and high employee morale. 2. Advised to Departmental Heads: Personnel manager offers advice to the heads of various departments on matters such as manpower planning, job analysis and design, recruitment and selection, placement, training, performance appraisal, etc.
Human Capital • Intellectual: Special knowledge, skills and learning capacity • Social: Network, relationship, sociability and trustworthiness • Emotional: Self confidence, ambition, courage, risk bearing ability
Difference between Personnel Management and Human Resource Management
Personnel Management • According to Edwin Flippo, “ Personnel Management is the planning, organizing, compensation, integration, and maintenance of people for the purpose of contributing to organizational, individual and societal goals.”
Human Resource Management Art of procuring, developing and maintaining, competent workforce to achieve the goals of an organization in an effective and efficient manner.
Base PM HRM Nature of relation Focus Plurist Profit maximization Unitarist Development of Human resources. Perception of conflicts Institutionalized Pathologised Contract Emphasis on compliance Beyond contract commitment Planning perspective Role of procedures Reactive Dominated Proactive Culture and values
Source: D.E. Guest- Human Resource Management and Industrial Relations, Journal of Management Studies,1987, Vol,24, pp 503-522 Base PM HRM Level of Trust Low High Key relation Labour and Management Customer Basis of Job design Division of labour Teams Skill acquisition Training and Development Learning organisation Reward management Standardized Job evaluation Performance related
Human resource Policies
Content • Basic concept • Objectives • Types • Coverage • Characteristics of sound HR policy
Introduction  “ A policy is a man-made rule of pre- determined courses of action that is established to guide the performance of work towards the organisation objectives.”- Edwin Flippo  “ Policies are statements of the organisation’s over-all purposes and its objectives in the various areas with which its operations are concerned- personnel, finance, production, marketing and so on.”
HR Policies & Procedures HR policies – set of guidelines that determine the way in which e/e are to be treated in the organization. HR procedures – help the mgt in implementing the HR policies i.e. specific applications or actions.
Functions of HRM.ppt
HR Policies • Definition:- • A policy is a plan of action. • Brewster and Richbell defined “HR policies as a set of proposals and actions that act as a reference point for managers in their dealings with employees.” -They constitute guides to action. -They furnish the general standards or bases on which decisions are based. -Their genesis lies in an organization’s values, philosophy, concepts and principles
Functions of HRM.ppt
Functions of HRM.ppt
Objectives HR Policies: 1) Fulfillment of the organisational objectives. 2) Development of sincere sense of unity within the enterprise. 3) Maximize use of Human resourcers 4) Providing adequate and trained personnel at all levels. 5) Protection of the common interest of all parties. 6) To provide consultative participation. 7) To avoid confusion or misunderstanding between the management and workers. 8) To provide for the payment of fair and adequate compensation. 9) To create a sense of responsibility.
Peter Drucker says: “The management must gear its policies and objectives in such a fashion that the employees perform their work. It implies a consideration of human being as a resource having psychological properties, abilities and limitations requiring same amount of engineering attention as any other resource. And it is the management alone that can satisfy the requirements of motivation, participation, satisfaction, leadership,
Types of HR policy • Originated policy • Appealed policy • General policy • Specific policy • Written policy
Forms of delivery of HR policies: • Written standard practice, procedures issued to cover company policies, with supplements to cover changes. • Booklets, bulletins, issued to new employees setting forth rights, privileges and responsibilities. • Verbal instructions from immediate superiors. • Group meetings of new employees convened regularly. • Union contract • Conference conducted as a part of executive training programme.
Various Types of Policies • Employment Policies – These are the policies that guide hiring practices, orientation of new employees, compliance with employment laws, and confidentiality. • Employment Status & Records – These are the policies that define such issues as employment classifications, access to personnel files and guidance on how background checks and performance reviews are to be performed. • Employee Benefits – These are policies that explain employee benefits such as insurance, vacations, holidays, leave, and employee reimbursements. • Payroll – These are policies that are related to salary and wage administration including deductions, pay advances, and time keeping.
• Workplace Guidelines – These policies are quite varied and their purpose range from defining certain work arrangements such as flex time and telecommuting to offering guidelines on the use of company assets and record retention. • Employee Conduct – These policies are guidelines that control employer behavior and conduct on the job. The mainstay of this section is a code of conduct but also important are policies regarding substance abuse, smoking, harassment, and workplace violence. • E-Policies – These policies guide staff in the use of the organization’s information technology. Policies defining acceptable and prohibited activities and use of e-mail and the Internet make up a majority of these policies
• Training and Development Policy • Condition of Employment • Lay-off, termination of service • Disciplinary action • Grievance redressal • Transfer, promotion and Demotion
Coverage of HR Policies:- a) Social responsibility Equity Quality of Work Life b) Employment Practices c) Promotion Policies d) Development Policies e) Relations Policies f) Termination Policies
Characteristics of sound HR Policy. • Relation of policies with objectives • Definite, positive, clear and easily understood by everyone. • It should be in written and uniform • Reasonably stable but not rigid i.e. periodically revised. • Compliance with all appropriate law and regulation. • Recognise the desire of employees. • It should be progressive and enlightened, and must be consistent with professional practice and philosophy.
• It should be formulated with due regards for the interest of all the concerned parties- employer, employee and public community. • Based on careful analysis of all the available facts. • Must provide a two-way communication between employer and employees. • It must ensure justice to the employees.
Tata steel’s Personnel Policy The statement Objectives of the Tata Iron & steel Co. Ltd. Gives a clear cut policy towards its employees: 1) By a realistic and generous understanding and acceptance of their needs and rights. 2) By proving adequate wages, good working conditions, job security, an effective machinery for redressal of grievances and suitable opportunities of promotion. 3) By treating them as individuals, giving them a sense of self-respect. 4) By creating a sense of belongingness through human and purposeful activities as an integral part of human
Advantages of HR Policies Policies are useful instructional devices, that offer various advantages to HR working at various levels. • Delegation • Uniformity • Better Control • Standards of efficiency • Confidence • Speedy Decisions • Coordinating Devices
Obstacles in Administrating HR Policies:- 1. Managers are reluctant to follow guidelines as it curtails their freedom. 2. Conflict between implied and expressed policy. 3. Not easy to Communicate. 4. Makes managers rigid.
QUALITIES OF HR MANAGER
• “A human resource manager is a vital member of an organizations HR department. • The department function like the key engine room of an organization so an HR manager roles and responsibility assume great significance”. • An HR manager must possess certain qualities and skills to channelize the talent, potential and capabilities of employees.
Qualities of Manager as per Henry Fayol 1. Physical- Health, vigor and address 2. Mental- Ability to understand and learn, judgement, mental vigor and adaptability 3. Moral- Energy, Firmness, willingness to accept responsibility, Initiative, loyalty, tact and dignity. 4. Educational- Knowledge about general functioning of the organisation 5. Technical- Knowledge of the job being performed. 6. Experience- Arising from the work.
Qualities of HR Manager Personal Qualities Social Qualities Professional
Personal Qualities • Humanitarian values • Honest and sincere • Discipline • Dedication • Enthusiastic • Self-confidence • Positive attitude • Self-awareness • Free from bias • Social outlook
Social Qualities •Leadership •Effective communication •Active Listening •Adaptability/flexibility (Openness to change) •Etiquette & Mannerism •Building up rapport
Professional Qualities • Intelligence skill • Experience and training • Grievance handling /counseling • Negotiation skills / (create win- win situation) • Interdisciplinary approach • Transparency / Confidentiality • Decision skill: Analytical, judgment and foresight. • Executing skill: Ability to implement process. • Knowledge of labour law and other laws.
Role of HR Manager
• HR manager plays a pivotal role to achieve organizational objectives. • It is human resource/work people who perform task and achieve company goals. • HR manager is a guide, philosopher, friend, path- finder, path identifier, problem solver, competence maker of the human resource. • Ulrich (1997) has developed a model of multiple roles for HR professionals who focus ranges from long-term strategic to short-term operational, and activities range from managing processes (HR tools and systems) to managing people.
Role of HR Manager • Administrative Role • Operational Role • Strategic Role
Role of HR Practitioner • Advisory Role • Pro-acting Role • Welfare Role • Developmental Role • Mediator’s Role • Counsellors Role • Maintenance Role • Spokesperson Role • Motivator’s Role • Procurer’s Role • Disputes Prevention Role • Decision Maker’s role • Change agent role • Coordinator’s Role • Strategic Partner Role • Monitoring Role • Executive Role
• Advisory Role: One of the major roles of HR manager is, to advise the top management in the matter relating to management and development of human resource, in order to achieve organizational objects. • Pro-Acting Role: HR manager ascertains the probable areas of conflict and differences between workers and management • Welfare Role: HR executive looks to the welfare aspect of the employee’s viz., canteen, creche, rest-room, hospital, transportation, housing accommodation, school, etc.
• Developmental Role: Development of workers for attaining company goals is made by the HR manager through improvement of knowledge, skill, abilities, aptitude, attitude, value, beliefs etc. • Mediator’s Role: HR manager works as a link personality between trade unions and top management in order to eliminate the differences of opinions cropped up in process of settlement of disputes. • Counsellor’s Role: Guiding and advising employees to take decisions with respect to work, career and family.
• Spokesperson Role: HR executive works as a spokesperson of the company especially, in the matter of depicting organization health, condition, strength etc. to the employees while negotiating for settlement of industrial disputes. • Motivator’s Role: One of the functions of HR manager is to motivate the employees to achieve their own goals, as well as organizational goals HR manager performs such role by way of introducing reward schemes. • Procurer’s Role: HR manager helps to procure the right number and right kind of people at the right time, to enable the company to run smoothly, effectively and efficiently and to achieve its goals.
• Change Agent Role: In changing scenario, workers are required to change their attitudes, belief, perceptible state, values to meet organization needs, requirement and expectation. • Maintenance Role: HR manager plays a pivotal role to retain the dynamic, excellent, highly skilled workers by providing attractive compensation package, introducing reward management, career planning and development, welfare, fringe benefits and social security schemes. • Disputes Prevention/ Legal Role: HR executive creates congenial and conducive climate in the company by eliminating differences between management and workers and developing understanding on the basis of mutuality.
• Executive Role: HR manager acts as an executor of the policy decisions in the company, for smooth functioning and effectiveness of the organization. • Decision Maker’s Role: HR manager is the supreme person to make decisions in respect of management and development of human resource. • Coordinator’s Role: HR executive coordinates the task of developing, interpreting of HR programmes, policies which are put into operation by the line people, and develops a team spirit amongst them.
• Strategic Partner Role: HR manager helps to accomplish business strategy of the organization through introducing and implementing HR strategies. • Monitoring Role: HR manager acts as regulator/monitor to ensure, that HR policies, procedures, programmes, so formulated are monitored effectively to meet the objectives.
Types of HRM Jobs • Generalist – Human Resource Assistant or Specialist • Employment, Recruiting and Placement – Interviewer, EEO Specialist or College Recruiter • Training and Development – Trainer, Orientation Specialist • Compensation and Benefits – Salary Administrator, Compensation Analyst, and Benefits Administrator Career in HRM
Types of HRM Jobs • Employee and Labor Relations – Labor Relations Specialist, Plant Personnel Assistant, Employee Relations Specialist • Health, Safety and Security – Safety specialist, Security Specialist, Employee Assistance Program Counselor, Medical Program Administrator • Human Resource Information Managers
Education • Undergraduate Degrees – Behavioral Sciences, General Business, Business & Labor Law • Masters Degrees – Human Resource Management, Labor Relations, Organizational Behavior/Development – A Master’s degree is preferred in today’s competitive market • Human Resource Certification Institute (HRCI) • PHR (Professional in Human Resources) • SPHR (Senior Professional in Human Resources) based on experience, exam, and course requirements
Challenges of Modern HR Managers
Introduction • HRM is one of the functions of management that endured tremendous change in the new millennium. • There is a shift in HRM manager’s responsibility from simply handling personnel issues to designing strategic implementation of complicated strategies for the organization.
Challenges to HR Professionals • Environmental Challenge • Organisational Challenge • Individual challenge
Environmental Challenge • Globalization • Change Management • Workforce Diversity: Gender, age distribution, cultural diversity, educational level. • Regulatory Framework • Economic change • Technological trends: Artificial intelligence, Robots
Globalization Impact on HRM Partnerships with foreign firms “Anything, anywhere, anytime” markets Different geographies, cultures, laws, and business practices Issues: Identifying capable expatriate managers. Developing foreign culture and work practice training programs. Adjusting compensation plans for overseas work.
Organisational Challenge • Slower growth • Human Resource Information system • Attracting and retaining talent to the enterprise • Developing Distinctive capabilities • Corporate Reorganization • Managing relationship • Changing nature of work • Flatter organization • Ethical management • Team work
Major Uses For HRIS
Individual challenge • Quality of work life • Individual productivity • Attrition rate/ Turnover • Employee empowerment • Job insecurity • Leadership development • Managing work-life balance • Conflict, Groupism and internal politics
• Quality of Work-life: Richard E Walton provides eight criteria for assessing the QWL. – Sufficient and fair compensation, – Healthy and safe work environment, – Opportunity to use and develop human capacities, – Opportunity of continued growth and security, – Social integration in the work organization, – Constitutionalism, – Balance role of work and – Socially beneficial and responsible work
Productivity Enhancements MOTIVATION • Job enrichment • Promotions • Coaching • Feedback • Rewards ENVIRONMENT • Empowerment • Teams • Leader support • Culture ABILITY • Recruitment • Selection • Training • Development Perf = f (A,M,E)
Developing Human Capital • Human Capital The knowledge, skills, and capabilities of individuals that have economic value to an organization.

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Functions of HRM.ppt

  • 2. Function of Human Resource Management •Human resource management is concerned with hiring, motivating, and maintaining workforce within businesses. •As per Armstrong (1997) HRM is defined as “ a strategic approach to acquiring, developing, managing, motivating and gaining the commitment of the organization’s key resources- the people who work in and for it.”
  • 4. Managerial Functions • Planning • Organizing • Staffing • Directing • Controlling
  • 5. 1. Planning • Future course of action. • For a human resource manager, planning means the determination of personnel programs that will contribute to the goals of the enterprise. • Demand and supply forecasting for each job. • Identifying net shortage and excess of manpower. • Developing HR policies and programmes.
  • 6. 2. Organizing • Designning and developing organisation structure to carry out the various operations. • The organization structure basically includes the following: – Grouping of personnel activity logically into functions or positions; – Assignment of different functions to different individuals; – Delegation of authority according to the tasks assigned and responsibilities involved; – Co-ordination of activities of different individuals.
  • 7. 3. Staffing • It is the process of obtaining and maintainingcapable and competent personnel in various positions at all levels, i.e. manpower planning, recruitment, selection, placement and induction.
  • 8. 4. Directing • The direction function of the personnel manager involves encouraging people to work willingly and effectively for the goals of the enterprise. – Motivation – Leadership – Communication – Morale
  • 9. 5. Controlling • Controlling is concerned with the regulation of activities in accordance with the plans, which in turn have been formulated on the basis of the objectives of the organisation. • It involves performance appraisal, critical examination of personnel records and statistics and personnel audit.
  • 11. Operative Functions 1. Employment/Procurement 2. Development 3. Compensation 4. Maintenance 5. Motivation 6. Personnel Records 7. Employee Relations 8. Separation
  • 12. 1. Employment • Employment is the first operative function of HRM. This involves procuring and employing individuals with suitable knowledge, skills, experience and aptitude necessary to perform various jobs. • The various functions of employment are:  Job analysis and design  HR planning  Recruitment  Selection  Placement  Induction
  • 13. • Job Analysis and Design: Describing the responsibilities and minimum qualities required to perform the job. • Human Resource Plan: Determination of right people at right time at right position. • Recruitment: Recruitment refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organization. • Selection: The process of choosing the most suitable people out of acceptable candidates who have applied for a job in the organization from both within as well as outside the organization. • Placement and Induction: Process to introduce new employees to organization.
  • 14. 2. HR development •Process of improving, moulding and changing the skills, knowledge and ability of an employee HR development involves functions such as: •Training – Training is the systematic development of knowledge, skills and attitudes required to perform a given task or job successfully, in an individual. •Management development – It is the concept of developing the employees of an organization to meet future changes and challenges. •Career planning and development – Career planning and development refers to identifying one’s career goals and formulating plans for achieving them through various means such as education and work experience. •Performance appraisal – This is the process of evaluating the performance of an employee on the job and developing a plan for the employee’s improvement.
  • 15. 3. Compensation • It includes all the rewards that an employee receives during the course of his or her job–for his or her contributions to the organisation. It includes: Job evaluation – It is a systematic determination of the value of each job in relation to other jobs in the organisation, in the industry and in the market. Wage and salary administration – It is the process of formulating and operating a suitable wage and salary programme. Incentives – These are the rewards that an employee earns in addition to regular wages or salary based on the performance of the individual, the team or the organisation. Fringe benefits – These are monetary and non-monetary benefits given to employees during their employment and sometimes, also in the post-employment period.
  • 16. 4. Maintenance (Working Conditions and Welfare) • Process of providing employees the working conditions so that they may like their work and workplace and maintain their efficiency. • These include measures taken for health, safety, and comfort of the workforce. • The personnel department also provides for various welfare services which relate to the physical and social well- being of the employees. • These may include provision of cafeteria, rest rooms, counseling, group insurance, education for children of employees, recreational facilities, etc.
  • 17. 5. Motivation Process of integrating people into a work situation in a way that it encourages them to perform / deliver to the best of their ability. ◦ Understanding needs ◦ Designing motivation techniques ◦ Financial ◦ Non-financial ◦ Monitoring
  • 18. 6. Personnel Records • The human resource or personnel department maintains the records of the employees working in the enterprise. • It keeps full records of their training, achievements, transfer, promotion, etc. • It also preserves many other records relating to the behaviour of personnel like absenteeism and labour turnover and the personnel programs and policies of the organisation.
  • 19. 7. Employee Relations • These days, the responsibility of maintaining good industrial relations is mainly discharged by the human resource manager. • The human resource manager can help in collective bargaining, joint consultation and settlement of disputes, if the need arises. • The human resource manager can do a great deal in maintaining industrial peace in the organisation as he is deeply associated with various committees on discipline, labour welfare, safety, grievance, etc.
  • 20. 8. Separation • Since the first function of human resource management is to procure the employees, it is logical that the last should be the separation and return of that person to society. • The personnel manager has to ensure the release of retirement benefits to the retiring personnel in time. • Types of Separation: – Retirement – Resignation – Layoff – Retrenchment – Dismissal
  • 21. III. Advisory Functions • Human resource manager has specialized education and training in managing human resources. 1. Advised to Top Management: Personnel manager advises the top management in formulation and evaluation of personnel programs, policies and procedures. He also gives advice for achieving and maintaining good human relations and high employee morale. 2. Advised to Departmental Heads: Personnel manager offers advice to the heads of various departments on matters such as manpower planning, job analysis and design, recruitment and selection, placement, training, performance appraisal, etc.
  • 22. Human Capital • Intellectual: Special knowledge, skills and learning capacity • Social: Network, relationship, sociability and trustworthiness • Emotional: Self confidence, ambition, courage, risk bearing ability
  • 23. Difference between Personnel Management and Human Resource Management
  • 24. Personnel Management • According to Edwin Flippo, “ Personnel Management is the planning, organizing, compensation, integration, and maintenance of people for the purpose of contributing to organizational, individual and societal goals.”
  • 25. Human Resource Management Art of procuring, developing and maintaining, competent workforce to achieve the goals of an organization in an effective and efficient manner.
  • 26. Base PM HRM Nature of relation Focus Plurist Profit maximization Unitarist Development of Human resources. Perception of conflicts Institutionalized Pathologised Contract Emphasis on compliance Beyond contract commitment Planning perspective Role of procedures Reactive Dominated Proactive Culture and values
  • 27. Source: D.E. Guest- Human Resource Management and Industrial Relations, Journal of Management Studies,1987, Vol,24, pp 503-522 Base PM HRM Level of Trust Low High Key relation Labour and Management Customer Basis of Job design Division of labour Teams Skill acquisition Training and Development Learning organisation Reward management Standardized Job evaluation Performance related
  • 29. Content • Basic concept • Objectives • Types • Coverage • Characteristics of sound HR policy
  • 30. Introduction  “ A policy is a man-made rule of pre- determined courses of action that is established to guide the performance of work towards the organisation objectives.”- Edwin Flippo  “ Policies are statements of the organisation’s over-all purposes and its objectives in the various areas with which its operations are concerned- personnel, finance, production, marketing and so on.”
  • 31. HR Policies & Procedures HR policies – set of guidelines that determine the way in which e/e are to be treated in the organization. HR procedures – help the mgt in implementing the HR policies i.e. specific applications or actions.
  • 33. HR Policies • Definition:- • A policy is a plan of action. • Brewster and Richbell defined “HR policies as a set of proposals and actions that act as a reference point for managers in their dealings with employees.” -They constitute guides to action. -They furnish the general standards or bases on which decisions are based. -Their genesis lies in an organization’s values, philosophy, concepts and principles
  • 36. Objectives HR Policies: 1) Fulfillment of the organisational objectives. 2) Development of sincere sense of unity within the enterprise. 3) Maximize use of Human resourcers 4) Providing adequate and trained personnel at all levels. 5) Protection of the common interest of all parties. 6) To provide consultative participation. 7) To avoid confusion or misunderstanding between the management and workers. 8) To provide for the payment of fair and adequate compensation. 9) To create a sense of responsibility.
  • 37. Peter Drucker says: “The management must gear its policies and objectives in such a fashion that the employees perform their work. It implies a consideration of human being as a resource having psychological properties, abilities and limitations requiring same amount of engineering attention as any other resource. And it is the management alone that can satisfy the requirements of motivation, participation, satisfaction, leadership,
  • 38. Types of HR policy • Originated policy • Appealed policy • General policy • Specific policy • Written policy
  • 39. Forms of delivery of HR policies: • Written standard practice, procedures issued to cover company policies, with supplements to cover changes. • Booklets, bulletins, issued to new employees setting forth rights, privileges and responsibilities. • Verbal instructions from immediate superiors. • Group meetings of new employees convened regularly. • Union contract • Conference conducted as a part of executive training programme.
  • 40. Various Types of Policies • Employment Policies – These are the policies that guide hiring practices, orientation of new employees, compliance with employment laws, and confidentiality. • Employment Status & Records – These are the policies that define such issues as employment classifications, access to personnel files and guidance on how background checks and performance reviews are to be performed. • Employee Benefits – These are policies that explain employee benefits such as insurance, vacations, holidays, leave, and employee reimbursements. • Payroll – These are policies that are related to salary and wage administration including deductions, pay advances, and time keeping.
  • 41. • Workplace Guidelines – These policies are quite varied and their purpose range from defining certain work arrangements such as flex time and telecommuting to offering guidelines on the use of company assets and record retention. • Employee Conduct – These policies are guidelines that control employer behavior and conduct on the job. The mainstay of this section is a code of conduct but also important are policies regarding substance abuse, smoking, harassment, and workplace violence. • E-Policies – These policies guide staff in the use of the organization’s information technology. Policies defining acceptable and prohibited activities and use of e-mail and the Internet make up a majority of these policies
  • 42. • Training and Development Policy • Condition of Employment • Lay-off, termination of service • Disciplinary action • Grievance redressal • Transfer, promotion and Demotion
  • 43. Coverage of HR Policies:- a) Social responsibility Equity Quality of Work Life b) Employment Practices c) Promotion Policies d) Development Policies e) Relations Policies f) Termination Policies
  • 44. Characteristics of sound HR Policy. • Relation of policies with objectives • Definite, positive, clear and easily understood by everyone. • It should be in written and uniform • Reasonably stable but not rigid i.e. periodically revised. • Compliance with all appropriate law and regulation. • Recognise the desire of employees. • It should be progressive and enlightened, and must be consistent with professional practice and philosophy.
  • 45. • It should be formulated with due regards for the interest of all the concerned parties- employer, employee and public community. • Based on careful analysis of all the available facts. • Must provide a two-way communication between employer and employees. • It must ensure justice to the employees.
  • 46. Tata steel’s Personnel Policy The statement Objectives of the Tata Iron & steel Co. Ltd. Gives a clear cut policy towards its employees: 1) By a realistic and generous understanding and acceptance of their needs and rights. 2) By proving adequate wages, good working conditions, job security, an effective machinery for redressal of grievances and suitable opportunities of promotion. 3) By treating them as individuals, giving them a sense of self-respect. 4) By creating a sense of belongingness through human and purposeful activities as an integral part of human
  • 47. Advantages of HR Policies Policies are useful instructional devices, that offer various advantages to HR working at various levels. • Delegation • Uniformity • Better Control • Standards of efficiency • Confidence • Speedy Decisions • Coordinating Devices
  • 48. Obstacles in Administrating HR Policies:- 1. Managers are reluctant to follow guidelines as it curtails their freedom. 2. Conflict between implied and expressed policy. 3. Not easy to Communicate. 4. Makes managers rigid.
  • 50. • “A human resource manager is a vital member of an organizations HR department. • The department function like the key engine room of an organization so an HR manager roles and responsibility assume great significance”. • An HR manager must possess certain qualities and skills to channelize the talent, potential and capabilities of employees.
  • 51. Qualities of Manager as per Henry Fayol 1. Physical- Health, vigor and address 2. Mental- Ability to understand and learn, judgement, mental vigor and adaptability 3. Moral- Energy, Firmness, willingness to accept responsibility, Initiative, loyalty, tact and dignity. 4. Educational- Knowledge about general functioning of the organisation 5. Technical- Knowledge of the job being performed. 6. Experience- Arising from the work.
  • 52. Qualities of HR Manager Personal Qualities Social Qualities Professional
  • 53. Personal Qualities • Humanitarian values • Honest and sincere • Discipline • Dedication • Enthusiastic • Self-confidence • Positive attitude • Self-awareness • Free from bias • Social outlook
  • 54. Social Qualities •Leadership •Effective communication •Active Listening •Adaptability/flexibility (Openness to change) •Etiquette & Mannerism •Building up rapport
  • 55. Professional Qualities • Intelligence skill • Experience and training • Grievance handling /counseling • Negotiation skills / (create win- win situation) • Interdisciplinary approach • Transparency / Confidentiality • Decision skill: Analytical, judgment and foresight. • Executing skill: Ability to implement process. • Knowledge of labour law and other laws.
  • 56. Role of HR Manager
  • 57. • HR manager plays a pivotal role to achieve organizational objectives. • It is human resource/work people who perform task and achieve company goals. • HR manager is a guide, philosopher, friend, path- finder, path identifier, problem solver, competence maker of the human resource. • Ulrich (1997) has developed a model of multiple roles for HR professionals who focus ranges from long-term strategic to short-term operational, and activities range from managing processes (HR tools and systems) to managing people.
  • 58. Role of HR Manager • Administrative Role • Operational Role • Strategic Role
  • 59. Role of HR Practitioner • Advisory Role • Pro-acting Role • Welfare Role • Developmental Role • Mediator’s Role • Counsellors Role • Maintenance Role • Spokesperson Role • Motivator’s Role • Procurer’s Role • Disputes Prevention Role • Decision Maker’s role • Change agent role • Coordinator’s Role • Strategic Partner Role • Monitoring Role • Executive Role
  • 60. • Advisory Role: One of the major roles of HR manager is, to advise the top management in the matter relating to management and development of human resource, in order to achieve organizational objects. • Pro-Acting Role: HR manager ascertains the probable areas of conflict and differences between workers and management • Welfare Role: HR executive looks to the welfare aspect of the employee’s viz., canteen, creche, rest-room, hospital, transportation, housing accommodation, school, etc.
  • 61. • Developmental Role: Development of workers for attaining company goals is made by the HR manager through improvement of knowledge, skill, abilities, aptitude, attitude, value, beliefs etc. • Mediator’s Role: HR manager works as a link personality between trade unions and top management in order to eliminate the differences of opinions cropped up in process of settlement of disputes. • Counsellor’s Role: Guiding and advising employees to take decisions with respect to work, career and family.
  • 62. • Spokesperson Role: HR executive works as a spokesperson of the company especially, in the matter of depicting organization health, condition, strength etc. to the employees while negotiating for settlement of industrial disputes. • Motivator’s Role: One of the functions of HR manager is to motivate the employees to achieve their own goals, as well as organizational goals HR manager performs such role by way of introducing reward schemes. • Procurer’s Role: HR manager helps to procure the right number and right kind of people at the right time, to enable the company to run smoothly, effectively and efficiently and to achieve its goals.
  • 63. • Change Agent Role: In changing scenario, workers are required to change their attitudes, belief, perceptible state, values to meet organization needs, requirement and expectation. • Maintenance Role: HR manager plays a pivotal role to retain the dynamic, excellent, highly skilled workers by providing attractive compensation package, introducing reward management, career planning and development, welfare, fringe benefits and social security schemes. • Disputes Prevention/ Legal Role: HR executive creates congenial and conducive climate in the company by eliminating differences between management and workers and developing understanding on the basis of mutuality.
  • 64. • Executive Role: HR manager acts as an executor of the policy decisions in the company, for smooth functioning and effectiveness of the organization. • Decision Maker’s Role: HR manager is the supreme person to make decisions in respect of management and development of human resource. • Coordinator’s Role: HR executive coordinates the task of developing, interpreting of HR programmes, policies which are put into operation by the line people, and develops a team spirit amongst them.
  • 65. • Strategic Partner Role: HR manager helps to accomplish business strategy of the organization through introducing and implementing HR strategies. • Monitoring Role: HR manager acts as regulator/monitor to ensure, that HR policies, procedures, programmes, so formulated are monitored effectively to meet the objectives.
  • 66. Types of HRM Jobs • Generalist – Human Resource Assistant or Specialist • Employment, Recruiting and Placement – Interviewer, EEO Specialist or College Recruiter • Training and Development – Trainer, Orientation Specialist • Compensation and Benefits – Salary Administrator, Compensation Analyst, and Benefits Administrator Career in HRM
  • 67. Types of HRM Jobs • Employee and Labor Relations – Labor Relations Specialist, Plant Personnel Assistant, Employee Relations Specialist • Health, Safety and Security – Safety specialist, Security Specialist, Employee Assistance Program Counselor, Medical Program Administrator • Human Resource Information Managers
  • 68. Education • Undergraduate Degrees – Behavioral Sciences, General Business, Business & Labor Law • Masters Degrees – Human Resource Management, Labor Relations, Organizational Behavior/Development – A Master’s degree is preferred in today’s competitive market • Human Resource Certification Institute (HRCI) • PHR (Professional in Human Resources) • SPHR (Senior Professional in Human Resources) based on experience, exam, and course requirements
  • 69. Challenges of Modern HR Managers
  • 70. Introduction • HRM is one of the functions of management that endured tremendous change in the new millennium. • There is a shift in HRM manager’s responsibility from simply handling personnel issues to designing strategic implementation of complicated strategies for the organization.
  • 71. Challenges to HR Professionals • Environmental Challenge • Organisational Challenge • Individual challenge
  • 72. Environmental Challenge • Globalization • Change Management • Workforce Diversity: Gender, age distribution, cultural diversity, educational level. • Regulatory Framework • Economic change • Technological trends: Artificial intelligence, Robots
  • 73. Globalization Impact on HRM Partnerships with foreign firms “Anything, anywhere, anytime” markets Different geographies, cultures, laws, and business practices Issues: Identifying capable expatriate managers. Developing foreign culture and work practice training programs. Adjusting compensation plans for overseas work.
  • 74. Organisational Challenge • Slower growth • Human Resource Information system • Attracting and retaining talent to the enterprise • Developing Distinctive capabilities • Corporate Reorganization • Managing relationship • Changing nature of work • Flatter organization • Ethical management • Team work
  • 76. Individual challenge • Quality of work life • Individual productivity • Attrition rate/ Turnover • Employee empowerment • Job insecurity • Leadership development • Managing work-life balance • Conflict, Groupism and internal politics
  • 77. • Quality of Work-life: Richard E Walton provides eight criteria for assessing the QWL. – Sufficient and fair compensation, – Healthy and safe work environment, – Opportunity to use and develop human capacities, – Opportunity of continued growth and security, – Social integration in the work organization, – Constitutionalism, – Balance role of work and – Socially beneficial and responsible work
  • 78. Productivity Enhancements MOTIVATION • Job enrichment • Promotions • Coaching • Feedback • Rewards ENVIRONMENT • Empowerment • Teams • Leader support • Culture ABILITY • Recruitment • Selection • Training • Development Perf = f (A,M,E)
  • 79. Developing Human Capital • Human Capital The knowledge, skills, and capabilities of individuals that have economic value to an organization.