HRM 2 sem cml

8/7/2019 HRM 2 sem cml

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Module 1Module 1



Concept of Human ResourcesConcept of Human Resources

� The term human resources may be

defined as the total knowledge, skills,

creative abilities, talents and aptitudes of an organisation¶s workforce, as well as the

values, attitudes, approaches and beliefs

of the individuals involved in the affairs of

the organisation.



Elements of Human CapitalElements of Human Capital

1. Intellectual capital

2. Social capital

3. Emotional capital



Intellectual capitalIntellectual capital

� It consists of both the stock of knowledge,

skills and expertise that all members of the

organisation collectively possess and theknowledge and expertise that may be

embedded in or owned by the organisation

including patents, IT based knowledge

systems or specialised process of work.



Social capitalSocial capital

� Social capital relates to the structure,

quality and flexibility of the human

relationships (networks) both inside thecompany and outside.

� External relationships have also been built

with customers, suppliers, enviornmental

pressure groups etc.



Emotional capitalEmotional capital

� Individuals need self-confidence and

courage to convert their knowledge and

relationships into effective action.� Organisations require high energy and an

environment of pride, trust and openness

to create a bias for speedy action in

rapidly evolving markets.



Nature of human factor Nature of human factor

1. Social Man

2. Rational Man and Complex Man

3. Knowledge worker and wisdom worker





The following assumptions about humanThe following assumptions about human

beings can be derived from the reports of beings can be derived from the reports of

Hawthorne experiments:Hawthorne experiments:1. Human beings are basically motivated by

social needs and they obtain their basic senseof identity through relationships with others.

2. They are more responsive to the social forcesof the peer group than to the incentives andcontrols of management.

3. The amount of work to be done by a worker isnot determined by his physical capacity or the

management, but by the social norms.4. Generally people don not act or react as

individuals, but as members of a group.



Rational Man and Complex ManRational Man and Complex Man

� Edgar Schein has given two sets of

assumptions.



Assumptions underlying the concept of Assumptions underlying the concept of

rational economic man are;rational economic man are;

a. People are motivated primarily by economicincentives.

b. Since economic incentives are under thecontrol of the organisation, people areessentially passive agents to be manipulated,motivated and controlled by the organisation.

c. People¶s feelings are irrational and must beprevented from interfering with their rational

calculation of self-interest.d. So organisation must design in such a way as

to neutralize and control people¶s feelings andtherefore their unpredictable traits.



Assumptions underlying the concept of Assumptions underlying the concept of

complex man are;complex man are;

a. People are not only complex, but are

also highly variable.

b. People are capable of learning newmotives through their organisational

experiences.

c. People¶s motives in different

organisations for different sub-parts of

the same organisation may be different.



Knowledge worker (KW) wisdom worker (WW)

Tend to follow a hectic life

pattern. He is usually aroamer.

Tend to follow an intense life

pattern.

Thinks all knowledge is

objective

Thinks all knowledge is

Subjective

Primary focus is on controlthe external environment

and other persons.

Primary focus is on controlof self

Is usually egoistic, but not

normally and truly effectivein performance.

Is usually humble, as also

truly effective inperformance.

Is commonly very right-

conscious

Is prone to be much more

duty conscious.



Two approaches to managerialTwo approaches to managerial

effectivenesseffectiveness

Training Technical

skills Policies andprocedures

Know

ledgeworkers

Managerial

effectiveness

Wisdom

workersEducation &

DevelopmentValues

Principles and

vision



Management assumptions aboutManagement assumptions about

peoplepeople

� Theory X and Theory Y by Douglas

McGregor



Assumptions about Theory X or Assumptions about Theory X or

Autocratic managersAutocratic managers

a. The average human being has aninherent dislike of work and will avoid it, if he can.

b. The average human being is lazy andavoids responsibility.

c. The average human being prefers to be

directed, wishes to avoid responsibility,has relatively little ambition and wantssecurity above all.



Assumptions about Theory YAssumptions about Theory Y

a. The average human being doesn¶tinherently dislike work. Depending uponcontrollable conditions, work may be a

source of satisfaction or a source of punishment.

b. The average human being will exercise

self-direction and self-direction and self-control in the service of objectives towhich he is committed.



Personnel ManagementPersonnel Management

� Personnel Management is the planning,

organising, directing and controlling of the

procurement, development, compensation,

integration, maintenance and reproduction

of human resources to the end that

individual, and societal objectives are

accomplished.- Flippo



Human Resource ManagementHuman Resource Management

� Human Resource Management is the

process of acquiring, training, appraising

and compensating employees and

attending to their labour relations, health ,

safety and fairness concerns.



Difference between HRM & PersonnelDifference between HRM & Personnel

ManagementManagement

1. Focus:2. Philosophy: HRM represents the

humanisation of management while

personnel management is concerned withmanaging personnel.

3. Nature of function:

4. Pervasiveness: HRM is the concern of allmanagers from top to bottom in an

organisation, while personnel management

is mainly the concern of the personnel

manager.



Difference between HRM &Difference between HRM &

Personnel ManagementPersonnel Management5. Motivation:

6. Team-work:

7. Techniques: Traditional personnelmanagers operated through pressure

tactics but HRM aims to achieve worker¶s

cooperation through team building, mutual

understanding and motivation.



Nature of Human ResourceNature of Human Resource

ManagementManagement1. Inherent part of management

2. Pervasive function

3. Basic to all functional areas4. People Centred

5. Personnel Activities or Functions

6. Continuous Process7. Based on human relations



Objectives of HRMObjectives of HRM

� To procure right type of personnel for right

jobs at the right time.

� To provide right kind of training to

personnel to increase their productivity

� To ensure effective utilisation of human

resources

� To identify and satisfy the needs of

individuals by offering various monetaryand non-monetary rewards.

� To achieve and maintain high morale among

employees in the organisation by securing better

human relations.



Scope of HRMScope of HRM

� Manpower planning

� Recruitment, selection and placement

� Training and development

� PA

� Motivation of workforce by providing

financial incentives and avenues of

promotion

� Remuneration of employees

� Social security and welfare of employees

� Reveiew and audit of personnel policies



Human Resource DevelopmentHuman Resource Development

� HRD may be defined as a continuousprocess to ensure the development of

employee competencies, dynamism,

motivation and effectiveness in a systematicand planned way.

� HRD is a process concerned with an

organised series of learning activities

designed to produce behavioural changes in

the human resources in such a way that they

acquire desired level of competence for

present and future roles.



AdvantagesAdvantages

� Acquire or sharpen capabilities required to

perform various functions associated with

their present or expected future roles.

� Develop their general capabilities

� Develop an organisational culture in which

superior-subordinate relationships, team

work are strong.



Nature of HRDNature of HRD

1. System perspective ± It is concerned with

providing learning experience for the

organisational members to develop their

competencies.

HRD is viewed as a system consisting of

several interdependent and interrelated

sub-systems. These includes; PA ,potential appraisal, role analysis, training,

job enrichment, communication etc.



2.2. BehaviouralBehavioural sciencescience

knowledgeknowledge

� HRD makes use of principles and

concepts of behavioral science for the

development of people. It uses knowledge

drawn from psychology, physiology etc. for

planning and implementing various

programmes for the development of

individuals.



� 3. Continuous process

4. Quality of work life ±

At the organisation level, it is

concerned with improving the quality of

work life so as to achieve greater

satisfaction of employees and higher levelof productivity.



Objectives of HRDObjectives of HRD

� Development of human resources

� Develop the constructive mind and overall

personality of each employee.� Develop and maintain high motivation

level of employees.

� Strengthen superior ± subordinaterelationship

� Develop the sense of team spirit, team

work etc.



HRD CultureHRD Culture

� It is characterised by openness,

confrontation, trust, autonomy, proaction

etc.



HRD ClimateHRD Climate

� It is a global expression of what the

organisation is. Organisational climate is

the manifestation of the attitudes of

organisational members toward the

organisation itself.



HRD MatrixHRD Matrix

� It identifies the interrelationships between

HRD instruments, process, outcomes and

organisational effectiveness.



HRD subsystems ( mechanisms or HRD subsystems ( mechanisms or

instruments)instruments)

1. Performance appraisal

� Setting standards for performance

� Communicating the standard to theemployees

� Measuring the performance

� Comparing the actual performance withthe standard set.



2. Potential appraisal

It provides necessary data which helps in

preparing career plans for individuals.

3. Feedback counselling

Identifying training needs

4. Training

5. Role analysis



6. Career planning6. Career planning

� Identifying and organising skills, interests,

work ± related needs and values

�C

onverting these inventories into generalcareers, fields and specific job goals.

� Testing the possibilities against the

realities of the organisation or the job

market.



7. Job rotation

8. Quality circleQC is a small group of employees doing

similar or related work who meet regularly

to identify, analyse and solve productquality problems and to improve general

operation.



Objectives of QCObjectives of QC

� To develop, enhance and utilise human

resource effectively

� To satisfy the workers¶ psychologicalneeds to motivate them

� To improve supervisory skills of

employees like leadership, inter-personal

and conflict resolution

� To utilise the skills through participation



9. Reward system

10. Organisation Development

OD is a planned change strategy aimed at

developing and revitalizing the adaptive

capacities of organisations.

11. Quality of working life



12. Human resource planning

It is the process aimed at ensuring that the

organisation will have adequate number of qualified persons available at proper time,

performing jjobs which would meet the

needs of the organisation and also provide

satisfaction for the individuals involved.



HRD climate variables/HRD ProcessesHRD climate variables/HRD Processes

� OCTAPAC Culture:charas of HRD climate

1. Openness

It refers to freedom to express ideas,

opinions, views, etc.

2. Confrontation

It refers to coflict, dispute to evolve effective

and efficient suggestions and solutions toa given problem. There is a dire need to

confront problems and issues rather than

avoid them.



3. Trust

Trust means belief, confidence, faith. One

cannot order others to trust, it comes onlythrough their experience.

4. Autonomy

It refers to freedom. Freedom to do a thingin the way on wants, tends to act as a

morale booster. Creativity in the individual

is not discouraged while working for achieving objectives.



5. Proaction

It refers to planning in advance, the state of

alertness / preparedness etc.

6. Authenticity

It refers to genuine, actual.

7. Collaboration

It refers to cooperation, participation,

teamwork etc.



HRD outcome variablesHRD outcome variables

� More competent people

� Better developed roles

� Higher work commitment and job involvement

� More problemsolving

� Better utilization of human resources

� Higher job satisfaction and work motivation

� Better organisational health

� More team work, synergy and respect for each

other.



OrganisationalOrganisational EffectivenessEffectiveness

� A sound HRD system is perhaps the most

important element in organisational

effectiveness which not only ensures

smooth performance but also long-term

survival and growth of the organisation.



HRD can play effective role in;HRD can play effective role in;

� Optimising the use of employees for thegrowth of the organisation

� Enabling employees to grow with the

organisation

� Promoting collaboration and team spirit.

� Maximising the effectiveness of the

employees and organisation

� Maximising managerial effectiveness.

Providing a favorable work enviornment

� Achieving good employer-emplyee

relationshi s.



� HRD ModelHuman Resource Development Plans or Interventions

Individual development plan Organisational development

plan

Skill+knowledge+attitude

Development

Work culture+ Dev. Plans +facility

Dev.

Quality of working life

Trained and developed employees

Healthy organisation climate

Organisational effectiveness



System approach to HRMSystem approach to HRM

� According to Cleland and King, ³ A system

may be defined as an assemblage or

combination of things or parts forming a

complex or unitary whole.

� It is a set of correlated members, or a

coordinated body or complex of methods,

plans and procedures.



OrganisationOrganisation as a systemas a system

1. Inputs

� Human resources

� Raw materials� Capital

� Technology

� Information



2. Enviournment (Feedback)

� Employees

� Managerial Processes

3. Output

� Goods and services



The important subThe important sub--systems of asystems of a

business firm;business firm;

1. Human resource system ± Dealing withthe human resources

2. Production system ± Consisting of

production function3. Finance system ± Dealing with finance

function

4. Marketing system ± Looking after marketing function

5. R&D system ± Monitoring the discovery of

new ideas, technology, methods etc.



HR system has the followingHR system has the following

subsub--systems:systems:

a. Employment

b. Training and Development

c. Compensationd. Maintenance or employee welfare and

services

e. Personnel records and research etc.



HRM SystemHRM System

� HR System must be an open and dynamic

system if it has to achieve its objectives

which include

� Quality of work life

� Productivity

� Readiness to change



Quality of work lifeQuality of work life

� It involves implementing policies andprocedures that make the work more

rewarding for the employee.

� These include autonomy, recognition,belonging, development, external

rewards,etc.



1. Autonomy deals with the amount of

freedom that employees can exercise in

their job.

2. Recognition involves being valued by

others in the organisation.

3. Belonging refers to being part of theorganisation.

4. Development refers to the internal

rewards available from the organisation;challenge and accomplishment.



5. External rewards

Which are usually in the form of salary

and benefits also include promotion, rank

and status.



ProductivityProductivity



Readiness to changeReadiness to change



Strategic HRMStrategic HRM

� Strategic management can be viewed as

the action plan of the organisation

regarding its survival and growth in the

given evironment taking into account the

opportunities and threats, strength and

weaknesses and the creativity and the

flexibility required to meet the unforeseen.



SHRMSHRM

� SHRM is the pattern of planned human

resource development and activities

intended to enable an organisation to

achieve its goals.

- Wright and McMohan



SHRMSHRM

� SHRM is the linking of HRM with strategic

goals and objectives in order to improve

business performance and develop

organisational cultures that foster

innovation and flexibility.

- Truss and Gratton



HR problems while implementingHR problems while implementing

strategiesstrategies

� Disruption of social and political structures.

� Failure to match individuals¶ aptitude with

implementation tasks.

� Inadequate top management support for

implementation activities.



Strategic HR issuesStrategic HR issues

� Employment Employability

� Careers

� HR diversity� Training and Development



Traditional HR vs. SHR

± Focus on employee relation - focus is on

partnerships with internal and external groups± Transactional in nature ± transformational in

nature (helps people to adopt, learn and act

quickly)

± Initiatives of employees are slow, reactive andfragmented ± fast, proactive and integrated.

± Controlled by tight regulations ± controlled by

whatever is necessary to succeed.

± Job design is tight division of labour,

independence and specialisation - Job design

is organic, specialisation is replaced by cross

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HRM 2 sem cml