session 1
TRANSCRIPT
Scheme of Classes & EvaluationEvaluation: 1. Group formation 2. Each Group to have a maximum of 6 members 3. Group Presentation/Discussion of Cases & Articles (03) 4. Discussions to have one representation from each group 5. Consistent performance expected, any act of indiscipline may result in serious penalty 6. Mid term exam to be held after 10 sessions comprising a mix of MCQs, Case & or subjective type questions from the course covered till the 10th session 7. End term exam to be held after 20 sessions / the 20th session comprising of a mix of MCQs, Case & or subjective type questions from the entire course 8. Of total 50 marks 15 shall be the Mid Term, 15 End Term & other 20 presentations, discussions , punctuality & participation
BUDGET HIGHLIGHTS 2011-12ALLOCATION FOR SOCIAL SECTOR INCREASED BY 17% TO RS. 1,60,887 CRORE. ALLOCATION FOR BHARAT NIRMAN PROGRAMME INCREASED BY RS. 10,000 CRORE. PLAN ALLOCATION FOR EDUCATION HIKED BY 24% AND HEALTH BY 20%. ELIGIBILITY FOR OLD AGE PENSION SCHEME REDUCED FROM 65YEARS TO 60. ALLOCATION FOR INFRASTRUCTURE INCREASED BY 23.3% TO RS. 2,14,000 CRORE. CREDIT TO FARMERS TO BE INCREASED TO RS. 4,75,000 CRORE. FISCAL DEFICIT PEGGED AT 4.6% OF GDP. GOVERNMENT TO BORROW RS. 3.43 LAKH CRORE FROM THE MARKET. EXTENSION OF NUTRIENT BASED SUBSIDY TO COVER UREA UNDER ACTIVE CONSIDERATION. EXEMPTION LIMIT FOR INCOME TAX RAISED BY Rs. 20,000 TO RS. 1,80,000 MINIMUM ALTERNATE TAX INCREASED FROM 18 TO 18.5%. ONE PERPCENT CENTRAL EXCISE DUTY IMPOSED ON 130 ITEMS. LOWER RATE OF EXCISE DUTY RAISED FROM 4 TO 5%. SERVICE TAX HIKED ON DOMESTIC AND INTERNATIONAL AIR TRAVEL. DIRECT TAXES CODE TO BE EFFECTIVE FROM APRIL 2012 AND IMPLEMENTION OF GST IS ON COURSE
The biggest differentiator resource is Human Resource for any Organization The biggest challenge is to quantify the contributions of the HR
Questioning the Existence of HRM Is touted to have moved from welfare function to HRM and HCM with PM & IR in the background Were earlier called health and happiness department Mere change in terminology not on Ground Zero Still bargaining hard for a significant place on floor space In many organizations still an ancillary function as a consultative body Still lacks in roles of professional practices and strategic role unlike finance or marketing Can be performed by line managers Has gained some ground: 1. In the 1990 ASPA was rechristened as SHRM to have a strategic role in Organizations 2. In India an emergence of HR bodies was seen like IIPM & NILM later merged to form NIPM Prominent companies like Maruti & Nokia did not have an Exclusive HR role or department till late 90s and most of the HR activities being outsourced ** should all HR functions be outsourced?
Meaning and DefinitionHuman Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. People s dimension Organisational effectiveness
Scope of HRMNature of HRM Prospects of HRM Employee Hiring
HRMIndustrial Relations Employee & Executive Remuneration
Employee Maintenance
Employee Motivation
Objectives of HRMPersonal Objectives
Functional Objectives
Organisational Objectives
Societal Objectives
HRM Function
Strategic business partner Change Agent Employee champion Administration Expert
Dave Ulrich
Workforce planning Recruitment(sometimes separated into attraction and selection) Induction, Orientation and Onboarding Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal Labor relations
Models of HRM HR competency model, Christopher Mabey
Business Mastery Business Acumen Customer Orientation Knowledge in all functional Areas External relations
HR Mastery Staffing Performance Appraisal Reward Systems Communication Organization design
Personal Credibility Competence Sound academic credentials Trust Ethical Conduct Courage
Change Mastery Interpersonal Skills Problem Solving Skills Reward Systems Innovativeness and creativity
Models of HRM The Fombrun, Tichy & Devanna model (1984)Human resource development
Selection
Appraisal
Organizational Development
Rewards
Models of HRM The Harvard ModelStakeholders Interests Shareholders Management Employee Groups Government Community Unions HRM Employee Influence HR flow Reward systems Work systems HR outcomes Commitment Competence Congruence Cost- Effectiveness Long Term Consequences Individual well being Organizational well being Societal well being
Situational Factors Workforce characteristics Business strategy and conditions Management Philosophy Labor market Unions Task technology Laws and Societal Values
Models of HRM The DavidGuest Model (1997)
HRM Strategies
HRM Practices Hiring Training Appraisal Compensation Relations
HR Outcomes Commitment Quality Flexibility
Behavioral Outcomes Motivation Cooperation Organizational Citizenship
Performance Outcomes Positive Productivity Innovation Quality Negative Low productivity Absenteeism Turnover
Financial Outcomes Profits ROI
Models of HRM Outer ContextThe Warwick Model (Hendry & Pettigrew)Socio-economic Technical Political-legal Competitive Inner ContextCulture Structure Politics/leadership Task-technology Business outputs
Business Strategy Context Objectives Product market Strategy and tactics HRM Content HR flows Work systems Reward systems Employee relations
HRM Context Role Definition Organization HR Outputs
Difference between PM and HRM Personnel Management Careful delineation of written contracts Importance of devising clear rules Procedures Norms/customs and practices Monitoring Labour management Piecemeal Slow Transactional Indirect Negotiation Separate, marginal task Job evaluation HRM Aim to go beyond contract Can do outlook, impatience with rule Business need Values/mission Nurturing Customer Integrated Fast Transformational leadership direct facilitation Integrated key tasks Performance related
Difference between PM and HRM Personnel Management Separately negotiated Collective bargaining contracts Many Division of labour Reach temporary truce Controlled access to courses personnel procedures Labour is treated as a tool which is expendable and replaceable Interests of the organisation are uppermost Precedes HRM external HRM harmonisation Individual contract Few Team work Manage climate and culture Learning companies wide ranging culture, structural and personnel strategies. People are treated as assets to be used for the benefit of an organisation, its employees and the society as a whole. Mutuality of interests Latest in the evaluation of the subject internal
Composition of a HR / Personnel DepartmentOwner/Manager
Manager-Personnel
Manager-Administration
Manager-HRD
Manager-IR
Appraisal
Training & Development
PR
Canteen
Medical
Welfare
Transport
Legal
HRP
Hiring
Grievances Handling
Compensation
HRM Small-scale UnitOwner/Manager
Production Manager
Sales Manager
Office-Manager
Accountant
Personnel Assistant
HRM Large-scale UnitChairman and Managing Director
Director Production
Director Finance
Director Personnel/HRM
Director Marketing
Director R&D
Paradoxes in HRM Only hype but low on content Has grown from IR to PM to HRM. But HRM is brilliant ambiguity. HR Manager is change agent and transformationalist. Finance overtakes personnel function.
Evolution of HRM in India1920s 30sPragmatism of capitalists
1940s 50sTechnical, legalistic
1970s 80sProfessional, legalistic, impersonal
1990sPhilosophical
Jobs & Careers in HRM HR Specialist HR Manager HR Executive Why Study HRM?
Reality Check It is good to read that people management has matured from IR to PM to HRM to HCM. But has the change been only cosmic or real? Have a debate.
Reality Check Should this happen? Would this happen? Could this happen? How could all HR activities be outsourced? Can a firm function with a HR department organised on perfunctionary basis? Answer these questions.
Reality Check Looking at the four models described in this section, what similarities and dissimilarities do you notice among them? What assumptions to they make? What lessons do they carry to practising HR managers and students of HRM?