HUMAN RESOURCE

MANAGEMENT
UNIT I
Management Essentials
 Management involves setting goals and
allocating scarce resources to achieve
them.
 Management is the process of efficiently
achieving the objectives of the
organization with and through people.
Management Essentials
 Primary Functions of Management
 Planning – establishing goals
 Organizing – determining what activities need to
be done
 Leading – assuring the right people are on the
job and motivated
 Controlling – monitoring activities to be sure
goals are met
 HUMAN RESOURCE MANAGEMENT

Human resource management (HRM) is the management

function that is concerned with getting, training, motivating, and
keeping competent employees.
The first three steps represent employment planning, adding
staff through recruitment and reducing staff by downsizing, and
selecting competent employees. These new employees must
be adapted to the organization (orientation) and their job skills
must be kept current (training and development). The last
steps in the HRM process are performance appraisals,
compensation and benefits, and safety and health. These
elements are used to identify employment goals, correct
performance problems, and promote sustained high-level
performance.
Why Is HRM essential to an organization?
 Focus on Strategic Nature of HR
 Specialized skills are needed to perform HRM job
 The HRM function:
1. Acquiring: Recruitment, Selection, Interviews
2. Developing: Training, Development, Career
Development
3. Motivating: Performance appraisals, Reward &
compensation, Employee benefit
4. Maintaining: Safety & Health, Employee relations,
Communication
Why is HRM Important to an
Organization?
 The Strategic Nature – HRM must be
a strategic business partner and represent
employees.
 forward-thinking, support the business strategy,
and assist the organization in maintaining
competitive advantage.
 concerned with the total cost of its function and
for determining value added to the organization.
Why is HRM Important to an
Organization?
 HRM is the part of the organization
concerned with the “people” dimension.
 HRM is both a staff, or support function
that assists line employees, and a function
of every manager’s job.
Why is HRM Important to an
Organization?
 HRM Certification
 Colleges and universities offer HR programs.
 The Society for Human Resource
Management and Human Resource
Certification Institute offer professional
certification.
How External Influences Affect HRM

 StrategicEnvironment
 Governmental Legislation
 Labor Unions
 Management Thought
How External Influences Affect HRM
 HRM Strategic Environment includes:
 Globalization
 Technology
 Work force diversity
 Changing skill requirements
 Continuous improvement
 Work process engineering
 Decentralized work sites
 Teams
 Employee involvement
 Ethics
How External Influences Affect HRM
 Governmental Legislation
 Laws supporting employer and employee
actions
 Labor Unions
 Act on behalf of their members by negotiating
contracts with management
 Exist to assist workers

 Constrain managers

 Affect non unionized workforce

How External Influences Affect HRM
 Management Thought
 Management principles, such as those from
scientific management or based on the
Hawthorne studies influence the practice of
HRM.

 Morerecently, continuous improvement

programs have had a significant influence on
HRM activities.
Outcomes of a High-Performance Work System
Conditions that Contribute to
High Performance
 Teams perform work.
 Employees participate in selection.
 Employees receive formal performance
feedback and are actively involved in the
performance improvement process.
 Ongoing training is emphasized and
rewarded.
 Employees’ rewards and compensation
relate to the company’s financial
performance.
Conditions that Contribute to
High Performance (continued)
 Equipment and work processes are
structured and technology is used to
encourage maximum flexibility and
interaction among employees.
 Employees participate in planning
changes in equipment, layout, and work
methods.
 Work design allows employees to use a
variety of skills.
How HRM functions are translated into
practice?

 Employment
Highest Investment
 Training
& Development Areas of HRM
 Compensation Benefits
 Employee relation
Translating HRM Functions into
Practice
 Four Functions:
 Employment

 Training
and development
 Compensation/benefits

 Employee relations
Translating HRM Functions into
Practice
 Employment - Employment specialists:
 coordinate the staffing function
 advertising vacancies
 perform initial screening
 interview
 make job offers
 do paperwork related to hiring
 Training and Development –
 help employees to maximize their potential
 serve as internal change agents to the organization
 provide counseling and career development
Translating HRM Functions into
Practice
 Compensation and Benefits –
 establish objective and equitable pay systems
 design cost-effective benefits packages that
help attract and retain high-quality employees.
 help employees to effectively utilize their
benefits, such as by providing information on
retirement planning.
Translating HRM Functions into
Practice
 Employee Relations – involves:
 communications

 fairapplication of policies and procedures

 data documentation

 coordination of activities and services that

enhance employee commitment and loyalty
 Employee relations should not be confused with
labor relations, which refers to HRM in a
unionized environment.
Translating HRM Functions into
Practice
 Purpose
and Elements of HRM
Communications
 Keep employees informed of what is happening
and knowledgeable of policies and procedures.
 Convey that the organization values
employees.
 Build trust and openness, and reinforce
company goals.
Translating HRM Functions into
Practice
 Effective Communication programs
involve:
 Top Management Commitment
 Effective Upward Communication

 Determining What to Communicate

 Allowing for Feedback

 Information Sources
Does HRM Really Matter?
 Research has shown that a fully functioning HR
department does make a difference.
 Organizations that spend money to have quality
HR programs perform better than those who
don’t.
 Practices that are part of superior HR services
include:
 rewarding productive work
 creating a flexible work-friendly environment
 properly recruiting and retaining quality workers
 effective communications
HRM in a Global Village
 HRM functions are more complex when
employees are located around the world.
 Consideration must be given to such
things as foreign language training,
relocation and orientation processes, etc.
 HRM also involves considering the needs
of employees’ families when they are sent
overseas.
HR and Corporate Ethics
 HRM must:
 Make sure employees know about corporate
ethics policies
 Train employees and supervisors on how to act
ethically
TQM
Why TQM?

Ford Motor Company had operating losses

of $3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in
1971 to 40% in 1981.
Attention to quality was seen as a way to
combat the competition.

Total Quality Management

TQM
 Total - made up of the whole
 Quality - degree of excellence a product or service
provides
 Management - act, art or manner of planning,
controlling, directing,….

Therefore, TQM is the art of managing the whole to

achieve excellence.
excellence

Total Quality Management

What does TQM mean?

Total Quality Management means that the

organization's culture is defined by and
supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training. This involves the continuous
improvement of organizational processes,
resulting in high quality products and
services.

Total Quality Management

What’s
What’s the goal
goal of TQM?

“Do the right things right the

first time, every time.”

Total Quality Management

Another way to put itit
 Atit’s simplest, TQM is all managers
leading and facilitating all contributors in
everyone’s two main objectives:
✔ (1) total client satisfaction through
quality products and services; and
✔ (2) continuous improvements to
processes, systems, people, suppliers,
partners, products, and services.

Total Quality Management

Productivity and TQM
 Traditional view:
 Quality cannot be improved without significant
losses in productivity.
 TQM view:
 Improved quality leads to improved productivity.

Total Quality Management

Basic Tenets of TQM
 1. The customer makes the ultimate
determination of quality.
 2. Top management must provide leadership and
support for all quality initiatives.
 3. Preventing variability is the key to producing
high quality.
 4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
improvement.
 5. Improving quality requires the establishment
of effective metrics. We must speak with data and
facts not just opinions.

Total Quality Management

The three aspects of TQM

Tools, techniques, and training in

Counting their use for analyzing,
understanding, and solving quality
problems

Customers Quality for the customer as a

driving force and central concern.

Culture Shared values and beliefs,

expressed by leaders, that define
and support quality.

Total Quality Management

Total Quality Management
and Continuous Improvement
 TQM is the management process used to
make continuous improvements to all
functions.
 TQM represents an ongoing, continuous
commitment to improvement.
 The foundation of total quality is a
management philosophy that supports
meeting customer requirements through
continuous improvement.

Total Quality Management

Continuous Improvement versus
Traditional Approach
Traditional Approach
 Market-share focus
 Individuals
 Focus on ‘who” and “why”
 Short-term focus
 Status quo focus
 Product focus
 Innovation
 Fire fighting
Total Quality Management
Continuous
Continuous Improvement
Improvement
 Customer focus
 Cross-functional teams
 Focus on “what” and “how”
 Long-term focus
 Continuous improvement
 Process improvement focus
 Incremental improvements
 Problem solving
Quality Throughout
 “A Customer’s impression of quality begins with
the initial contact with the company and continues
through the life of the product.”
 Customers look to the total package - sales, service
during the sale, packaging, deliver, and service after the
sale.
 Quality extends to how the receptionist answers the
phone, how managers treat subordinates, how courteous
sales and repair people are, and how the product is
serviced after the sale.
 “All
departments of the company must strive to
improve the quality of their operations.”
Total Quality Management
Value-based Approach
 Manufacturing  Service Dimensions
Dimensions  Reliability
 Performance  Responsiveness
 Features  Assurance
 Reliability  Empathy
 Conformance  Tangibles
 Durability
 Serviceability
 Aesthetics
 Perceived quality

Total Quality Management

The TQM System
Objective Continuous
Improvement

Principles Customer Process Total

Focus Improvement Involvement

Leadership
Education and Training
Elements Supportive structure
Communications Reward and recognition
Measurement

Total Quality Management

Employee Empowerment
Employee Empowerment Defined…
 Employee Empowerment is Employee Involvement
that matters.
 Itcould also be defined as controlled transfer of
authority to make decisions and take actions.
 What is needed?
 Successful implementation of empowerment requires
change in corporate culture.
 Does this mean Abdication?
 NO. Empowerment involves actively soliciting input from
those closest to the work and giving careful thought to that
input.
Rationale

 An aspect of Working Smart

 Empowerment is the key to

motivation & Productivity.

 Itenables a person to develop

personally & professionally.
Inhibitors of Empowerment
 Resistance from Employees & Unions
 Resistance from Management
 Insecurity
 Personal Values
 Ego
 Management Training
 Personality Characteristics of Managers
 Exclusion of Managers
 Workforce Readiness
 Organizational Structure & Management Practices
Management’s Role in Empowerment
& Implementing Empowerment
 Management’s Role:
 Commitment
 Leadership
 Facilitation
 Implementing Empowerment:
 Development of Suggestion Systems (Fig 8.3)
 Considering the Employees Point of View
 Putting Vehicles in Place
 Brainstorming
 Nominal Group Technique (fig 8.4)
 Quality Circles
 Suggestion Boxes
 Walking & Talking
Suggestion Systems - 1
 Management’s Role:
 Establishing Policy
 Setting Up the System
 Promoting the Suggestion System
 Evaluating & Implementing suggestions
 Rewarding employees

 Improving the system..

 Improving Suggestion Processing
 Improving Individual Suggestions
 Problem Identification
 Research
 Idea Development
Suggestion Systems - 2
 Evaluating Suggestions
 Though Employees make suggestions, final analysis is
still to be made by manager.
 Thus, Establish a formal rating system for evaluating
suggestion systems.

 Handling Poor Suggestions

 Listen Carefully
 Express Appreciation
 Carefully explain your position
 Encourage feedback
 Look for Compromise
Achieving Full Participation
 Removing Hidden Barriers
 Negative Behavior
 Poor Writing Skills
 Fear of Rejection
 Inconvenience
 Encouraging new Employees
 Coaching Reluctant Employees
 Assess
 Investigate
 Match
 Choose
 Manage
How to Recognize Empowered
Employees
 Taking Initiative

 Identifying Opportunities

 Thinking Critically

 Building Consensus
Empowerment
 Avoiding Traps:
 Defining Power as Discretion & Self- Reliance
 Failing to Properly Define Empowerment for Managers &
Supervisors
 Assuming Employees Have the skills to be Empowered
 Getting Impatient Making the Transition from Traditional
Approach
 Beyond Empowerment
Evolution Of HRM in India
 Indian experts account growth since 1920
This period related to post I-World War difficult conditions that called
for State intervention & Trade Unions.
 The Royal Commission (1931)- recommended to appoint of Lab-
Welfare-Officer for selection of workers & settling grievances
 The Factories Act, 1948- compulsory Welfare officer (workers 500
& 500+)
 In course of time: Two Professional Bodies set up.
 IIPM ( Kolkota ) & NILM (Mumbai), premier Traditional Industrial
Centers.
 Post II- World War & Indian independence- witnessed increased
‘Awareness & Expectations’ of workers
Evolution Of HRM in India
 During 1960s Personnel Function began expanding beyond ‘
Labor welfare’
 Labor welfare, IR& Per-Administration merged into emerging
profession - Per. Management (PM)
 Shift in focus towards Professionalism of MGT.-Massive thrust to
heavy industry (II-Five Year Plan) & accelerated growth of public
sector in Indian economy
 1970s-Shift in Professional Values - Focus from welfare to focus
on Efficiency
 1980s-New Technologies, HRM challenges, HRD- Talk of
Professionals
 1980s-IIPM and NILM merged, birth of National Institute of
Personnel Management (NIPM)
 1990- ASPM (USA) change to Society for Human Resource
Management
 1990s-Emphasis Shift to ‘ Human values & productivity through
people’
Learning Organizations
 Learning organization – an organization that
supports lifelong learning by enabling all
employees to acquire and share knowledge.
 The people in a learning organization have
resources for training, and they are encouraged
to share their knowledge with colleagues.
 Managers take an active role in identifying
training needs and encouraging the sharing of
ideas.
Key Features of Learning Organizations

1. Continuous learning – each employee’s and

each group’s ongoing efforts to gather
information and apply the information to their
decisions.
2. Knowledge is shared – one challenge is to shift
the focus of training away from teaching skills
and toward a broader focus on generating and
sharing knowledge.
3. Critical, systemic thinking – is widespread and
occurs when employees are encouraged to see
relationships among ideas and think in new
ways.
Key Features of Learning Organizations (continued)

4. Learning culture – a culture in which learning is

rewarded, promoted, and supported by managers
and organizational objectives.
5. Employees are valued – the organization
recognizes that employees are the source of its
knowledge. It therefore focuses on ensuring the
development and well-being of each employee.
CURRENT HR ISSUES
Family & friends
Survival of Lay offs
Work place violence
Sexual Harassment
Work place Diversity
HRM Technology
 New technologies – applications of
knowledge, procedures, and equipment that
have not previously been used.
 Transaction Processing: Computations and
calculations used to review and document HRM
decisions and practices. These include
documenting employee relocation, payroll
expenses, and training course enrollments.
HRM Technology (continued)
 Decision Support Systems: These are systems
designed to help managers solve problems. They
usually include a "what if" feature.
 Expert Systems: Are computer systems
incorporating the decision rules of people deemed
to have expertise in a certain area.
 Relational Databases: Store data in separate files
that can be linked by common elements.
 Quality management: Continuous Improvement
programs are devised
 Customer satisfaction by involvement
GROUP ACTIVITY