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CONTENT

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1. INTRODUCTION TO HRM

... people and profit - a good balance ...

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Maintaining a meaningful relationship between employer and employee.

Managing people within the employer and employee relationship.

Planning, designing, implementing and reviewing HRM activities in an organization.

It is a branch of Management which deals with the people of an organization andaspects related to it.

UNDERSTANDING HRM

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MANAGEMENT & HRM

Management is a technique of getting things done properly through people.

Five basic functions of management: planning, organizing, staffing, leading, controlling.

HRM is a part of Management dealing directly with productive use of people in

achieving the organizations strategic business objectives and the satisfaction of

individual employee needs.

HRM is Management but Management ismore than HRM

HRM is an integral part of Management

A good relation between Staff Manager &

Line Manager is important

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Organizational

Operational

Personal

Hard

Approach

Soft

Approach

Alignment

People

Value

CompetitiveAdvantage

Maintenance

Profit

Commitment

Retention

HRM OBJECTIVES & APPROACHES

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ACTIVITIES OF HRM

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Transactional

Traditional

Transformational

HRIS

Payroll

Administrative

Planning

Job AnalysisRecruitment

Selection

Training

Performance Appraisal

Salary & Compensation

OH&SIndustrial Relations

International HRM

Ethical & Legal

Environment

People Development

Performance ManagementKnowledge & Culture

Diversity Management

Change ManagementContemporary

Surveillance

Humor Management

Office Context

Emotion Management

Motivation & Empowerment

Etc

FUNCTIONS OF HRM

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Obtain

Maintain Develop

Hiring right candidate with right

qualification for right position

Improving employees KSAEnhancing employees commitment,

loyalty, satisfaction, retention

THREE MOST IMPORTANT ACTIVITIES

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Staff Managers are authorized to assist and

advice line managers in accomplishing the

organizations goal. Example: HR Manager

Line Managers direct the work of

subordinates in accomplishing the

organizations basic goals. Example:

Production Manager, Sales

Manager, etc

Staff Manager

Line Manager

LINE & STAFF FUNCTION

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Line Function

Staff Function

Strategic Function

Direct and supervise

activities of its own line.

Assist other line managers.

Attempt to achievestrategic fit by

coordination of HRactivities.

Soft Approach

Hard Approach

Unitarist Approach

Pluralist Approach

Radical Approach

Centralization

Decentralization

Superior - Subordinaterelationship

Advisory relationship

Coordinative relationship

HR MANAGERS RESPONSIBILITIES

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Unitarist Framework (Unitarism)

It considers workplaces as centers of cooperation, where employers andemployees work together to achieve benefit for all parties.

Believes that employer and employee can be of one mind on the best way toensure business success and a fair return to all parties.

Conflict is to be avoided since it comes from difficult individuals.

Discourages unionism and supports Taylorism.

Industrial Relation is grounded on mutual cooperation.

HRM will deliver and maintain this culture of cooperative spirit.

THEORETICAL FRAMEWORK

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Pluralist Framework (Pluralism)

Believes that organizations are made up of individuals and groups withconflicting claims and interests.

Conflict is inevitable.

Conflict is not necessarily unhealthy, as it brings positive and mutuallyunderstandable outcomes.

Unionism is welcome but its movement must be controlled in order toensure that they perform in the organizations interest.

IR will deliver and maintain this culture.


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Radical / Marxist Framework (Radicalism / Marxism)

Organizations are one element of capitalist system, which considers workerelimination and exploitation are the solution for any problem.

Supports communism.

Organizations thus are a part of an ongoing struggle throughout societyover the sharing of the fruits of production.

Both unitarist and pluralist theories are seen as serving the interest ofcapital.

Removing the source of conflict requires overthrow the whole capitalistsystem.


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Hard Approach: (instrumental)

Associated withTaylorism / unitaristunderstanding oforganization.

Employees are viewed as apassive factor ofproduction and an expense.

Emphasize is given more onproduction rather thanemployees personal needs.

Employees can easily bereplaced and are thus seenas disposable.


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Soft Approach: (humanistic)

Root from pluralistunderstanding oforganization.

Stress on active employeeparticipation fororganizational goalachievement.

Employees are seen as valuedasset, and a source ofcompetitive advantage, thus,investment is made on themto increase skill, loyalty andprofit.


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Personnel Management has its roots in four traditions, arising from

developments in the employment environment over the last 150 years.

The Welfare Tradition

The Industrial Relation Tradition

The Control Labour Tradition

The Professional Tradition

HISTORICAL DEVELOPMENT

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The Welfare Tradition

Because of the 19th century industrialization, companies like Rowntrees,Cadbury, Unilever, etc. initiated programs known as Industrial Welfare toprovide housing, basic health care, canteens, education for workers andfamilies.

It was soft and person centered side of management.

Focused on OH&S, EAP, workplace counseling, hiring, firing, salary & wage,etc.

The Personnel Officer was not in any formal sense the representative ofthe workforce. He was paid to be part of the organizations management.


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The Industrial Relations Tradition

In 1929, F W Taylors scientific management influenced PersonnelManagement concept to take care of employee related activities likeemployee hiring, firing, training, motivation, payment, as well as compliancewith various employment laws.

From the mid 19th century, industrialized workers started becoming

increasingly organized and their power had increased and were required asystematic framework for negotiation, conflict resolution and employmentrelation.

Labor Party and Liberal Party involvement with labor unions and employersassociations.

Personnel Officers responsibilities included negotiation, conflict resolution,discipline, grievance procedure, etc.

This diplomatic role also posed a dilemma of dual allegiance - lack of trustin the relationship between personnel function and management function.


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The Control of Labor Tradition

After the mid 19th century, globalization, internationalization,standardization emerged.

Companies like IBM, Xerox, HP, etc. pioneered personnel management byadding value to it. This tradition of personnel management arose inresponse to the increasing pace of organizational growth and change.

Primary responsibilities of the Personnel Officer were: job allocation,performance monitoring, time-keeping, control of absenteeism, recordingsick leave, holidays, administering pay and benefits, training and promotion,

devising rules, regulations, policy, procedure, compliance, workplacereports, etc.

This was an essentially bureaucratic tradition.


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The Professional Tradition

In the late 19th century, intense legalization in all areas of employment hasincreased because of the growing complexities of growth of MNCs,globalization, internationalization and compliance.

Gradually, personnel management transformed into a longer term, moreproactive and strategic approach to people management, known as Human

Resource Management. It is a much sophisticated behavioral and managerialtheory, specializing in personnel function.

Now, HR Manager has three areas of responsibilities:

Responsibility towards employer and organization

Responsibility towards employee and their welfare

Best endeavors to enhance the relationship of employer and employee


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Globalization

Knowledge

Economy

Technology

Environment

Diversity

Outsource

Economy

Politics

Changing

Business

Environment

Occupation

Internationa

lization

CHANGING ENVIRONMENT

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2. ETHICAL AND LEGAL ISSUES OF HRM

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... fair and equal treatment for all ...

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EMPLOYMENT CONTRACT

Employer

obligation

Employee

obligation

employment

contract

duties & obligations defined in the law that an employee must

fulfill

duties & obligations defined in the law that an employer must fulfill

An informal (oral) or formal (written) agreement between

an employer and employee specifying the legal obligations

of each.

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Psychological Contract -set of values that determines what an organization expects of

its employees, and what they expect of it in the employment relationship.

It represents the mutual beliefs, perceptions, and informal obligations between an

employer and an employee.

Agency Theory -a firm is a series of contractual relationships between owners and

workers.

Owners invest in firms to increase their wealth and contract with employees to

produce goods and services.

Workers and employees work as the agent of the employer, all together to achieve

the common goal of the organization.

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EMPLOYMENT CONTRACT

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Ethics - deals with what is good and bad, right or wrong, or with moral duty and

obligations.

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ETHICS

It consist of a set of guidelines as to

acceptable conduct directed towards

resolving conflicts of interests, so as to

enhance societal wellbeing.

Ethical Climate -it is the shared set ofunderstanding in an organization about what

is correct behavior and how ethical issues

will be handled.

It varies from organization to organization.

An organization may emphasize more onCSR, whereas, another organization may

emphasize more on profitability.

Whistleblower -a person who makes a disclosure about improper conduct in an

organization.

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ETHICS & HRM

EEO - Equal Employment Opportunity

AA - Affirmative Action

Anti Discrimination

Harassment

Workplace Discrimination


CSR - Corporate Social Responsibility

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EEO -giving people a fair chance to succeed by avoiding discrimination based on

unrelated job factors such as age, race, gender, nationality, etc.

AA - programs that require firms to make special efforts to recruit, hire and promote

women and members of minority groups. Example: quota system in admission.

Anti Discrimination -Elimination of any practice that makes distinctions between

different groups based on age, gender, etc., and that result in one group being

advantaged and the other group disadvantaged.

Harassment -Intimidating, offensive behavior or work environment which intend todisturb and upset people. Example: sexual harassment, leg-pulling, bullying, mocking,

teasing, etc. related age, culture, gender, religion, etc.

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ETHICS & HRM

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Workplace Discrimination - any practice that makes distinctions between differentgroups of people based on work / non work related characteristics, which results in

particular individual or group being advantaged and other disadvantaged.

Work / non work related characteristics:

Age Career statusCriminal

convictionDisability Culture

Industrial

activityMarital status

Physical

features

Personal

characteristicsMedical record

Political belief Religion Pregnancy Race

Sexual

preference

GenderAssociation

involvementVictimization

Sexual

harassmentOthers

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ETHICS & HRM

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Direct Discrimination -any overt bias

towards a person based on

characteristics such as age, gender,

religion, etc.

It occurs when one interested

group of people is treated less

favorably than another.

Example -An airline company

refused employment to a femalepilot for her childbearing potential.

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ETHICS & HRM

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it occurs when a person seeks to

impose a condition with which

someone with one of the specifiedattributes cannot possibly comply,

although others can.

Example -A Chinese restaurant is

looking for a chef with the

requirement of mandarin speaking,indirectly discriminating against

non-mandarin speaking people.

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ETHICS & HRM

Indirect Discrimination -occurs when policies, procedures and practices that appear

to be neutral (non discriminatory) produce adverse outcomes for people with specificcharacteristics.

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Victimization -occurs when an employer disadvantages workers because they have

sought to exercise their legal rights or assisted others in doing so.

Example - passing an employee over for promotion because he recently threatened

to take the firm to an Employment Tribunal over a discriminatory practice.

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ETHICS & HRM

Retaliation -an employer may not fire, demote,harass or otherwise take revenge against anindividual for filing a charge of discrimination,participating in a discrimination proceeding, orotherwise opposing discrimination.

Example -assigning extra work load and changingshift patterns of a female employee because of hercomplain of discrimination, as females are morelikely to be responsible for child care.

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Reverse Discrimination -claim that due to affirmative action (AA) quota systems,

majority groups of employees are discriminated against.

Example - white males against the quota system for black males in selection process.

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ETHICS & HRM

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Child Labor -what to do about it?

Should we ban it?

Who will earn for family?

Child Employment?

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ETHICS & HRM

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CSR (Corporate Social Responsibility)

-the role an organization play to

monitor and ensure its support to

law, ethical standards, and

international norms.

Consequently, organization would

embrace responsibility for the impact

of its activities on the environment,

consumers, employees, communities,

stakeholders and all other members

of the public sphere.

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ETHICS & HRM

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3. DIVERSITY MANAGEMENT

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... blending people for organizational benefit ...

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DIVERSITYMANAGEMENT

Diversity is having people from differentbackground in a workforce.

Involved with integrating non-traditional people

into the workforce and using their competency

for the organizations competitive advantage.

Ensuring fair and effective utilization of all the

employees by avoiding discrimination and

providing fair treatment.

Managing the mixture of employees and

developing each employees full potential while

leveraging diversity as an organizationals

resource.

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DIVERSITY MANAGEMENT

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Hiring people with different background and using their competencies for the

organizations benefit.

Creating a workplace climate inclusive, respectful, innovative and supportive for all.

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DIVERSITYMANAGEMENT

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WHY DIVERSITY


Societal Organizational Employee

CSR & Ethics

Goodwill & Image

CompetitiveAdvantage

Better ER

Learning Culture

Local & GlobalCompliance

Productivity

Satisfaction,Commitment

Career Development

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APPROACHES OF DIVERSITY MANAGEMENT

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APPROACHES OF DIVERSITY MANAGEMENT

Legal obligation

Ethical obligation

Aging workforce

Religion

Disability

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DIVERSITY & COST

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DIVERSITY & COST

Mismanaging diversity can severely costs an organization.

An employer can be held vicariously liable for discriminating employees, not

complying with EEO, and other local and international standards.

Skilled employees may leave an organization because of poor diversity

management, which may lead to increase in the cost of organizations hiring and

employee development process.

Diversity

mismanagementDiversity

management Productivity

Expense

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DIVERSITY MANAGEMENT STRATEGY

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DIVERSITY MANAGEMENT STRATEGY

Five goals of diversity management strategy

Increase the diversity by hiring employees from

different sources

Clearly communicating the vision of diversity and its

implications for the organization to all

Becoming sensitive to an demonstrate an

understanding of the value of differences through

education and training

Creating a culture that enables and encourages the

development and upward mobility of all

Providing a flexible and supportive work environment

for employees in achieving a work and life balance

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Acquisition

Communication

Education, Training

Career Development

Work-life balance

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4. HUMAN RESOURCE INFORMATION SYSTEM

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... technological upgradation of HRM activities ...

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UNDERSTANDING HRIS

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UNDERSTANDING HRIS

An information system designed tosupport the organizations HR functions.

Use of computer and softwares to

systematically generate relevant and

timely information for HR decision

making.

It is an integrated approach to acquire,

store, analyze and control the flow of HR

information throughout an organization.

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System of collecting all disorganized data, facts, figures, numbers and all otherpossible information to store in a meaningful way so that whenever needed, people

can retrieve, manipulate, analyze and use it.

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UNDERSTANDING HRIS

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EasyRepresen-

tation

Cost CuttingWork SupportFaster

Efficiency EffectivenessProductivity

Quality Simplicity SecuredStorage

Accuracy

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UNDERSTANDING HRIS

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HRIS DATA

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The HRIS data / information should have the following features:

Accuracy - accurate and error free data

Reliability - reliable information is consistent

Timeliness - information must be available to meet demands

Readability - presentation of information must be easily understood

Comprehensiveness - information should provide complete answers

Verifiability - duplication of information must be possible

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HRIS DATA

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HRIS TYPES

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EDP (Electronic Data Processing) - is used

to process day-to-day classification, storage,

calculation and summarizing of HR data.

MIS (Management Information system) -

provides reporting systems that integrate HRdata, analyze and display HR information.

DSS (Decision Support system) - provide

analytical and simulation tools that can be

used to aid managements HR decision

making.

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HRIS TYPES

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HRIS NEED ANALYSIS

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Needs Analysis - makes a detailed study of the HR functions requirement.

Stand Alone Information System - a single system unrelated to other information

systems. Example: a HRIS software to design employe training program.

Integrated Information System - a system that is related with other systems. Example:one HRIS software that support a variety of tasks (payroll, absenteeism, bonus, benefit,

etc.)

Customized System - organizations may develop their own HRIS software in-house or

may order a software company.

Off-the-shelf - organizations may purchase commercially available softwares for HRIS.

Example: PeopleSoft, Lattice, Trak-it, etc.

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HRIS NEED ANALYSIS

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PROBLEMS OF ADAPTION

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Lack of top managements support

Satisfaction with existing paper based /

manual system

Security and confidentiality 52

PROBLEMS OF ADAPTION

Limitation of HRIS knowledge and skills

Not identifying and understanding the

importance of HRIS

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351 lecture 1 - 4

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