Human resouce management
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HRM Report Submitted to Sir Tanzeen Qadri The report discusses key topics in human resource management including objectives of HRM, scope of HRM, features of HRM, HRM activities, role of HRM, role of HR managers, managerial functions of HRM, personnel aspects of management jobs, basic HR concepts, and strategic management. It provides an overview of core HR principles and functions.
Human resouce management
- 1. Human Resource Management HRM Report Submitted to Sir Tanzeen Qadri “HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives.” Engr. Faizan Saleem (25504)
- 2. 1 Table of Contents Integration............................................................................................................. 4 Influencing............................................................................................................. 4 Applicability .......................................................................................................... 4 Introduction .......................................................................................................... 4 OBJECTIVES OF HRM ............................................................................................. 5 SCOPE OF HRM...................................................................................................... 5 What is HRM?........................................................................................................ 6 Features of HRM ................................................................................................... 6 HRM Activities....................................................................................................... 7 ROLE OF HRM........................................................................................................ 7 Role of HR Managers (Today)................................................................................ 8 Ø Counselor: .................................................................................................... 8 Ø Problem Solver: ............................................................................................ 8 Role of HR Managers (Future)............................................................................... 8 Managerial Functions of HRM............................................................................... 8 ü Planning:....................................................................................................... 8 ü Organizing..................................................................................................... 8 ü Staffing ......................................................................................................... 8 ü Directing....................................................................................................... 8 ü Controlling.................................................................................................... 9 Personnel Aspects of a Manager’s Job.................................................................. 9 Personnel Mistakes ............................................................................................... 9 Basic HR Concepts................................................................................................10 Line and Staff Aspects of HRM...........................................................................10 Line Managers’ HRM Responsibilities..................................................................10
- 3. 2 Functions of the HR Manager........................................................................10 A line function ...................................................................................................10 A coordinative function......................................................................................10 Staff (assist and advise) functions ......................................................................10 HR and Authority .................................................................................................11 Authority ...........................................................................................................11 Implied authority...............................................................................................11 Line authority ....................................................................................................11 HR Job Duties .......................................................................................................11 Recruiters ..........................................................................................................11 Equal employment opportunity (EEO) coordinators...........................................11 Job analysts........................................................................................................11 Compensation managers ...................................................................................11 Training specialists .............................................................................................11 Labor relations specialists..................................................................................11 Cooperative Line and Staff HR Management.......................................................12 Strategic Management.........................................................................................12 ROLE OF HRM IN STRATEGIC MANAGEMENT.......................................................12 Role in Strategy Implementation: .....................................................................13 HUMAN RESOURCE PLANNING ( H R P ) ..............................................................13 PURPOSE OF HRP .................................................................................................13 NEED & IMPORTANCE OF HRP..............................................................................14 Forecast future personnel needs: ......................................................................14 Cope with change: .............................................................................................14 Creating highly talented personnel: ...................................................................14 Protection of weaker sections............................................................................14 International strategies:.....................................................................................14
- 4. 3 Foundation of personnel functions:...................................................................14 Increasing investments in HR:............................................................................14 Other benefits: Following are the other benefits of HRP.......................................15 HRP SYSTEM .........................................................................................................16 HRP PROCESS .......................................................................................................17 Organizational Objectives & Policies: -...............................................................17 Manpower Demand Forecasting...........................................................................17 Internal Factors..................................................................................................17 External Factors .................................................................................................17 Reasons for Manpower Demand Forecasting........................................................18 Summary ..............................................................................................................18
- 5. 4 Integration “HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives.” Influencing “HRM is concerned with the people dimensions in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of the organization – government, business, education, health, recreational, or social action.” Applicability “HRM planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.” Introduction Definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the “employment relationship” fulfilling for both the management and employees. These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence, personnel management is essentially “workforce” centered whereas human resource management is “resource” centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control.
- 6. 5 OBJECTIVES OF HRM 1. Societal Objectives: To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. 2. Organizational Objectives: To recognize the role of HRM in bringing about organizational effectiveness. HRM is only means to achieve to assist the organization with its primary objectives. 3. Functional Objectives: To maintain department’s contribution and level of services at a level appropriate to the organization’s needs. 4. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individual’s contribution to the organization. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining, retaining and motivating the employees in the organization. SCOPE OF HRM From Entry to the Exit of an employee in the organization. Scope of HRM can be described based on the following activities of HRM. Based on these activities we can summarize the scope of HRM into 7 different categories as mentioned below after the activities. Let’s check out both of them. 7 Categories of Scope of HRM 1. Introduction to HRM 2. Employee Hiring 3. Employee and Executive Remuneration 4. Employee Motivation 5. Employee Maintenance 6. Industrial Relations 7. Prospects of HRM
- 7. 6 What is HRM? We use the answer to the question as to “what is HRM?” is that it is all about people in organizations. No wonder that some MNC’s (Multinationals) call the HR managers as People Managers, People Enablers and the practice as people management. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for managing employee expectations vis-à-vis the management objectives and reconciling both to ensure employee fulfillment and realization of management objectives. Features of HRM Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include: • It is pervasive in nature as it is present in all enterprises. • Its focus is on results rather than on rules. • It tries to help employees develop their potential fully. • It encourages employees to give their best to the organization. • It is all about people at work, both as individuals and groups. • It tries to put people on assigned jobs in order to produce good results. • It helps an organization meet its goals in the future by providing for competent and well-motivated employees. • It tries to build and maintain cordial relations between people working at various levels in the organization. • It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.
- 8. 7 HRM Activities Ø HR Planning Ø Job Analysis Ø Job Design Ø Recruitment & Selection Ø Orientation & Placement Ø Training & Development Ø Performance Appraisals Ø Job Evaluation Ø Employee and Executive Remuneration Ø Motivation Ø Communication Ø Welfare Ø Safety & Health Ø Industrial Relations ROLE OF HRM Advisory Role: HRM advises management on the solutions to any problems affecting people,personnel policies and procedures. Personnel Policies: Organization Structure, Social Responsibility, Employment Terms &Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations. Personnel Procedures: Relating to manpower planning procedures, recruitment and selectionprocedures, and employment procedures, training procedures, management development procedures,performance appraisal procedures, compensation procedures, industrial relations procedures and healthand safety procedures. Functional Role: The personnel function interprets and helps to communicate personnel policies. Itprovides guidance to managers, which will ensure that agreed policies are implemented. Service Role: Personnel function provides services that need to be carried out by full time specialists.
- 9. 8 Role of HR Managers (Today) Ø Humanitarian Role: Reminding moral and ethical obligations to employees Ø Counselor: Consultations to employees about marital, health, mental, physical and career problems. Ø Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and groupsand management. Ø Spokesman: To represent of the company because he has better overall picture of his company’soperations. Ø Problem Solver: Solving problems of overall human resource management and long-termorganizational planning. Ø Change Agent:Introducing and implementing institutional changes and installing organizationaldevelopment programs Ø Management of Manpower Resources: Broadly concerned with leadership both in the group andindividual relationships and labor-management relations. Role of HR Managers (Future) Ø Protection and enhancement of human and non-human resources Ø Finding the best way of using people to accomplish organizational goals Ø Improve organizational performance Ø Integration of techniques of information technology with the human resources Ø Utilizing behavioral scientists in the best way for his people Ø Meeting challenges of increasing organizational effectiveness Ø Managing diverse workforce. Managerial Functions of HRM ü Planning: Plan and research about wage trends, labor market conditions, union demands and other personnel benefits. Forecasting manpower needs etc. ü Organizing: Organizing manpower and material resources by creating authorities and responsibilities for the achievement of organizational goals and objectives. ü Staffing: Recruitment & Selection ü Directing: Issuance of orders and instructions, providing guidance and motivation of employees to follow the path laid-down.
- 10. 9 ü Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations. Personnel Aspects of a Manager’s Job Ø Conducting job analyses (determining the nature of each employee’s job) Ø Planning labor needs and recruiting job candidates Ø Selecting job candidates Ø Orienting and training new employees Ø Managing wages and salaries (compensating employees) Ø Providing incentives and benefits Ø Appraising performance Ø Communicating (interviewing, counseling, disciplining) Ø Training and developing managers Ø Building employee commitment. Personnel Mistakes Ø Hire the wrong person for the job Ø Experience high turnover Ø Have your people not doing their best Ø Waste time with useless interviews Ø Have your company in court because of discriminatory actions Ø Have your company cited by OSHA for unsafe practices Ø Have some employees think their salaries are unfair and inequitable relative to others in the organization Ø Allow a lack of training to undermine your department’s effectiveness Ø Commit any unfair labor practices
- 11. 10 Basic HR Concepts HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals. Line and Staff Aspects of HRM Line manager A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Staff manager A manager who assists and advises line managers. Line Managers’ HRM Responsibilities Ø Placing the right person on the right job Ø Starting new employees in the organization (orientation) Ø Training employees for jobs new to them Ø Improving the job performance of each person Ø Gaining creative cooperation and developing smooth working relationships Ø Interpreting the firm’s policies and procedures Ø Controlling labor costs Ø Developing the abilities of each person Ø Creating and maintaining department morale Ø Protecting employees’ health and physical condition Functions of the HR Manager A line function The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria). A coordinative function HR managers also coordinate personnel activities, a duty often referred to as functional control. Staff (assist and advise) functions Assisting and advising line managers is the heart of the HR manager’s job.
- 12. 11 HR and Authority Authority The right to make decisions, direct others’ work, and give orders. Implied authority The authority exerted by an HR manager by virtue of others’ knowledge that he or she has access to top management. Line authority The authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas. HR Job Duties Recruiters Search for qualified job applicants. Equal employment opportunity (EEO) coordinators Investigate and resolve EEO grievances, examine organizational practices for potential violations, and compile and submit EEO reports. Job analysts Collect and examine information about jobs to prepare job descriptions. Compensation managers Develop compensation plans and handle the employee benefits program. Training specialists Plan, organize, and direct training activities. Labor relations specialists Advise management on all aspects of union–management relations.
- 13. 12 HR Department Organizational Chart (Large Company) Cooperative Line and Staff HR Management Ø The line manager’s responsibility is to specify the qualifications employees need to fill specific positions. Ø HR staff then develops sources of qualified applicants and conduct initial screening interviews Ø HR administers the appropriate tests and refers the best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants. Strategic Management “A Process of formulating, implementing and evaluating business strategies to achieve organizational objectives is called Strategic Management” ROLE OF HRM IN STRATEGIC MANAGEMENT Role in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that maybe useful in strategy formulation. Details regarding advanced incentive plans used by competitors, opinionsurvey data from employees, elicit
- 14. 13 information about customer complaints, information about pendinglegislation etc. can be provided by HRM. Unique HR capabilities serve as a driving force in strategyformulation. Role in Strategy Implementation: HRM supplies the company with a competent and willing workforcefor executing strategies. It is important to remember that linking strategy and HRM effectively requiresmore than selection from a series of practice choices. The challenge is to develop a configuration of HRpractice choices that help implement the organization’s strategy and enhance itscompetitiveness. HUMAN RESOURCE PLANNING (H R P) Need, Availability, Supply=Demand “HRP includes estimation of how many qualified people are necessary to carry out the assigned activities,how many people will be available, and what, if anything, must be done to ensure personnel supply equalspersonnel demand at the appropriate point in the future.” PURPOSE OF HRP Ø In simple words HRP is understood as the process of forecasting an organization’s future demand forand supply of the right type of people in the right numbers. Ø It is only after HRP is done, that the company can initiate and plan the recruitment and selectionprocess. Ø HRP is a sub-system in the total organizational planning. Ø HRP facilitates the realization of the company’s objectives by providing right type and right number ofpersonnel. Ø HRP is important because without a clear-cut manpower planning, estimation of a organization’shuman resource need is reduced to mere guesswork.
- 15. 14 NEED & IMPORTANCE OF HRP Forecast future personnel needs: To avoid the situations of surplus or deficiency of manpower infuture, it is important to plan your manpower in advance. For this purpose a proper forecasting of futuresbusiness needs helps you to ascertain our future manpower needs. From this angle, HRP plays animportant role to predict the right size of manpower in the organization. Cope with change:HRP enables an enterprise to cope with changes in competitive forces, markets,technology, products and government regulations. Such changes generate changes in job content, skillsdemands and number of human resources required. Creating highly talented personnel: Since jobs are becoming highly intellectual and incumbentsgetting vastly professionalized, HRP helps prevent shortages of labor caused by attritions. Furthertechnology changes would further upgrade or degrade jobs and create manpower shortages. In thesesituations only accurate human resource planning can help to meet the resource requirements. Further HRP is also an answer to the problems of succession planning. Protection of weaker sections: A well-conceived personnel planning would also help to protectthe interests of the SC/ST, physically handicapped, children of socially oppressed and backward classeswho enjoy a certain percentage of employments notwithstanding the constitutional provisions of equalopportunity for all. International strategies: International expansion strategies largely depend upon effective HRP.With growing trends towards global operations, the need for HRP further becomes more important as theneed to integrate HRP more closely into the organization keeps growing. This is also because the processof meeting staffing needs from foreign countries grows in a complex manner. Foundation of personnel functions: HRP provides essential information for designing andimplementing personnel functions such as recruitment, selection, personnel development, training anddevelopment etc. Increasing investments in HR: Another importance is the investment that an organization makesin human capital. It is important that employees are used
- 16. 15 effectively throughout their careers. Becausehuman assets can increase the organization value tremendously as opposed to physical assets Other benefits: Following are the other benefits of HRP. 1. Upper management has a better view of HR dimensions of business 2. Management can anticipate imbalances before they become unmanageable and expensive. 3. More time is provided to locate talent 4. Better opportunities exists to include women and minorities in future growth plans 5. Better planning of assignments to develop managers 6. Major and successful demands on local labor markets can be made.
- 17. 16 HRP SYSTEM HRP System as such includes following elements or sets for planning. Ø Overall Organization Objectives Ø Business Environment Ø Forecasting Manpower Needs Ø Assessing Manpower Supply Ø Matching Manpower Demand-Supply factors Based on these elements we can draw “HRP System Architecture” as under.
- 18. 17 HRP PROCESS Organizational Objectives & Policies: - The objectives of HR plan must be derived from organizational objectives like specific requirements of numbers and characteristics of employees etc. HRP needs to sub-serve the overall objectives by ensuring availability and utilization of human resources. Specific policies need to be formulated to address the following decisions. Ø Internal Hiring or External Hiring? Ø Training & Development plans Ø Union Constraints Ø Job enrichment issues Ø Rightsizing organization Ø Automation needs Ø Continuous availability of adaptive and flexible workforce Manpower Demand Forecasting It is the process of estimating the future quantity and quality of people required. The basis should be annual budget and long term corporate plans Demand forecasting should be based on following factors. Internal Factors Ø Budget constraints Ø Production levels Ø New products and services Ø Organizational structure Ø Employee separation External Factors Ø Competition environment Ø Economic climate Ø Laws and regulatory bodies Ø Technology changes Ø Social Factors
- 19. 18 Reasons for Manpower Demand Forecasting Ø To quantify jobs Ø To determine the Staff-mix Ø To assess staffing levels and avoid unnecessary costs Ø Prevent shortages of people Ø Monitor compliances of legal requirements with regards to reservations. Summary A human resource management system (HRMS) or human resource information system (HRIS), refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible.