HUMAN RESOURCE MANAGEMENT Course ID: HRM Term: 3 Credits: 1 Sessions: 20 FACULTY INFORMATION Dr. Ritu Gupta ▪ Office: Cabin No. F-122, Gyanshila ▪ Phone: +91-771-2474-619/ ▪ Mobile: +91-96520-81180 ▪ Email: rgupta@iimraipur.ac.in ▪ Availability: By appointment. COURSE OBJECTIVES CO1. To understand the fundamental concepts of HR CO2. To explore managerial roles required in changing context. CO3. To gain an insight of processes, tools, and techniques CO4. To understand the link between HR principles and other business functions COURSE LEARNING OUTCOMES PO1- Management graduate students will use the knowledge acquired to understand, analyze, and evaluate complex business problems 1.2 Integrate and evaluate critical issues across multiple functional areas PO2- Students will use critical and analytical skills to make decisions backed by data and logic to handle business problems and challenges 2.2 Assimilate relevant information 2.3 Identify different alternatives and critically evaluate them EVALUATION SCHEME Individual: Mid-term: 20% End term: 30% Quiz: 20% Group: Case Submission: 20% (any 4 cases 5 marks each) actual submissions, no best of or there of or none of Topic Presentation: 10% SUBMISSIONS ▪ Written assignment to be submitted groups ▪ Plagiarism will be dealt with strictly in accordance to PGP handbook ▪ Group written case submissions get marks as a group, the onus is on you to inform me if someone is not contributing. Submission of the case has to be done by email. a) Using concepts to reach at the solution or decision in the case b) Action plan recommended to implement the solution/decision c) Exhaustive list of possible options with justification to why they should or should not be adopted METHODOLOGY FOR LEARNING ▪ Self learning – Text chapters and additional readings ▪ Peer learning ▪ Lecture and discussion ▪ Exercises ▪ Case Method THE CONTRACT Student ▪ Honor the code (academic expectations) ▪ 4P’s of Involvement ▪ ▪ ▪ ▪ Preparation Presence Promptness Participation ▪ Accept and maintain the ownership of the discussion THE OTHER SIDE OF THE CONTRACT Faculty ▪ To parcel out knowledge in more understandable and convenient packages. ▪ To give you a platform and ample opportunity for peer learning. ▪ Strive to make the course a satisfying development experience. A LITTLE ABOUT YOU: SECTION C Age: ? Gender: 39 (62%) F : 24(38%) M State: 19 States and Delhi (Highest number from Delhi/MP/TN) SSC: 88.5% Avg HSC: 86.08% Avg Undergrad: Btech+BE+BS+BSc (35), Bcom (13), BBAs (1), BA (8), BALLB (1),Barch (1), Others? (Kamal & Nedhe) Exp: 29 Freshers (46%)/ 34 (54%) A LITTLE ABOUT YOU: SECTION D Age: ? Gender: 41 (64%) F : 23(36%) M State: 16 States and Delhi & Daman & Diu (Highest number from Uttar Pradesh) SSC: 85.87% Avg HSC: 84.81% Avg Undergrad: Btech+BE+BSc (3), Bcom (15), BBAs (4), BA (6), MBBS & Agriculture (1), BALLB (1), BVSC (1) Exp: 32 (50% freshers) INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Functions of HRM Challenges of HRM SEC D SEC D SO WHAT IS HR DOING NOW AND NEXT 2020COVID year Post COVID WHAT HR SHOULD BE DOING? ▪Set the agenda: layoffs/ recruiting/ flexible work arrangements/ performance management ▪Focus on issues that matter in the here and now ▪Acquire business knowledge ▪Highlight financial benefits ▪Walk away from the time wasters: millennials/ diversity Source: Why we love to hate HR…and what HR can do about it? By Peter Cappelli, Harvard Business Review, 2015 WE DID: ▪What is your notion of HRM? ▪Examples from your previous experience? ▪Who does HR manager’s work? ▪Can you see the alignment with OB? WHY IS HR IMPORTANT ▪It can Innovate; it facilitates other departments also to innovate. ▪It can produce as well as become destructive. ▪It can reenergize and renew itself; as it gains experience its value appreciates. ▪Can change itself and other factors of production. ▪Can refuse to change and thus nullify other factors of production. ✓Formal performance appraisals are better than none. ✓Using systematic selection techniques is better than hiring based on intuition. WHAT IS HUMAN RESOURCE MANAGEMENT (HRM) ? The comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforce—human resources—in ways that contribute to organizational effectiveness. -Denisi, Griffin and Sarkar (2016) HOW HR HAS EVOLVED AS A FUNCTION OVER TIME Source: C.S. Venkataratnam and B.K. Srivastava, Personnel Management and Human Resources, TATA Mc-Graw Hill, New Delhi, 2004 Figure: Basic Functions of Human Resource Management Source: Dessler & Varkkey, Human Resource Management, 15th Ed. A TYPICAL HR DEPARTMENT DIRECTOR (HRD) MANAGER (PERSONNEL) MANAGER (ADMINISTRATION) MANAGER (HRD) HR PLANNING WELFARE TRAINING & DEVELOPMENT RECRUITMENT & SELECTION LEAVE RECORDS PERFORMANCE APPRAISAL FIGURE: THE HUMAN RESOURCE MANAGEMENT FUNCTION AT SHELL OIL HRM FRAMEWORK Source: Dessler, G. (2009). Human Resource Management Line managers • Are directly responsible for creating goods and services. HR MANAGEMENT AS A STAFF VERSUS LINE FUNCTION Staff managers • Are responsible for supporting line management’s efforts to achieve organizational roles and objectives. Organizations have blurred this distinction. LINE STAFF SYNERGY Successful organizations combine the experience of line managers with the expertise of HR managers to develop and utilize the talents of employees to their greatest potential. Line managers are non-HR managers who are responsible for overseeing the work of other employees. Just as there are different types of line managers who specialize in different functions—operations, accounting, marketing, and so forth—there are different types of human resources managers who specialize in different HR functions. TYPE OF WORK DONE BY HR HR Transactional HR Transformational • Administering health, welfare, payroll, • Helping the firm to deliver on its strategy, benefits • duties of staffing, training, policy, legal etc. • This work is carried out by: • To be more competitive, and • create value through employee actions This work is carried out by: • Corporate HR • e-HR and employee self-reliance • Embedded HR • Outsourcing • Centres of expertise • Service centres HR PROFESSIONAL Service Centre • Service centers where • Routine and transactional work is done • HRIS so that employees become self-reliant and connected through technology • Shared across boundaries within organization Corporate HR • Operate from corporate headquarters • Create a consistent firm wide culture / identity • Handle disputes between centers of expertise and embedded HR • Nurturing corporate level employees • Create programs to implement the CEO’s agenda ➢ Outsourcing ➢ Outright purchase from vendors • Ensure HR alignment with business goals • Ensure HR professional development HR PROFESSIONAL Centers of Expertise Embedded HR • Operate as specialized internal consultants. • Operate from on-site • Depending on the size of the firm, • Titles of HR generalists, HR business • May be corporate based or country based • specialist or consultant titles • Collaborate with embedded HR in selecting and implementing the right services partners, employee relations managers etc. • Define requirements to achieve business goals • Represent employees interests • Track performance • Engage in execution • Create practices aligned with business strategy • Recommend most appropriate practices • Implement the HR practices HIGH PERFORMANCE WORK SYSTEMS (HPWS) Analytical thinking Critical thinking Innovative thinking Source: Demirbag, M., Collings, D. G., Tatoglu, E., Mellahi, K., & Wood, G. (2014). High-performance work systems and organizational performance in emerging economies: Evidence from MNEs in Turkey. Management International Review, 54(3), 325359. HR METRICS Name of metric How to calculate What it measures Absence Rate [(Number of days employees are absent in a Absenteeism month / average number of employees during month)x (No. of workdays)]x100 Cost per hire (Advertising + Agency fees + employee referrals + travel costs of applicants and staff + relocation costs + recruiter pay) / total number of hires Costs incurred to hire a new employee HR Expense factor (HR Expense / Total operating expense) A measure of whether HR Budget exceeded, or fell below, or met the expected benchmark Time to fill (Total days elapsed to fill requisitions / total number of hires) Efficiency of recruitment team Turnover rate (Number of separations during entire month / average no. of employees during that month)x100 Attrition rate (Source: Grossman, R. (2000). Measuring Up. HR Magazine, pp. 29-35; SHRM/ BNA 2000 Cost per Hire and Staffing Metrics Survey) TODAY HRM IS BEING SHAPED BY… ▪A highly volatile market (VUCA phenomenon) ▪Rapid pace of new technology development (eg: Industry 4.0, SMAC) ▪Changing employee millennials) preferences and expectations ▪Global catastrophes (eg: sub-prime crisis; COVID) (eg: HOW DO HR MANAGERS SCAN THE ENVIRONMENT? ▪External environmental factors: ▪Continuing high cost of employee healthcare coverage ▪Increased global competition for jobs ▪Growing complexity of legal compliance ▪Aging population ▪Economic growth of BRIC nations ▪Greater need for cross-cultural understanding ▪Greater economic uncertainty Internal environmental/demographic factors Level of Top management commitment INTERNAL ENVIRONMENTAL/DEMOGRAPHIC FACTORS Corporate restructuring Diversity+ Generational differences CHALLENGE 1: RESPONDING TO THE DEMOGRAPHIC AND DIVERSITY CHALLENGES OF THE WORKFORCE United Nations World Population Prospects (2017) SEC D DIVERSITY ISSUE IN USA EY’S GLOBAL GENERATIONS STUDY 2022 THE NEGLECTED DIVERSITY QUOTIENT: INCLUSION AND LGBTQ ▪Google runs a voluntary employee group called Gayglers to raise awareness about inclusion ▪Tata Steel is aiming to have 25% of its workers from diverse groups by 2020, of which 5% will be from the LGBT community ▪Intuit is seen as one of the frontrunners in providing inclusion for LGBT individuals. It was voted one of the best companies to work for in 2017. Intuit has its own Pride Network and has been advocating for greater awareness around LGBT inclusion. Due to its efforts, Intuit has achieved a 100% rating on the Human Rights Campaign's Corporate Equality Index for many years in a row. ▪Infosys has been one of the first few companies to create an employee resource group called "Infosys Gays Lesbians and You" (IGLU) to bring together their LGBT employees CHALLENGE 2: LOWERING LABOR COSTS Organizations take many approaches to lowering labor-related costs, including…. Carefully managing employees’ benefits Downsizing Outsourcing Offshoring Outplacement Employee Leasing The process of dismissing employees who are then Employee Leasing hired by a leasing company (which handles all HRrelated activities) and contracting with that company to lease back the employees. Indirect payroll/ contingent workers on the rise CHALLENGE 3: ADVANCING HR THROUGH TECHNOLOGY • Technology is reshaping the way HR functions used to be conducted earlier Human Resources Information System (HRIS) - A computerized system that provides current and accurate data for purposes of control and decisionmaking. Eg: KENEXA, ORACLE A CASE STUDY OF CHATBOT APPLICATION FOR ONBOARDING CHALLENGE 3: ADVANCING HR THROUGH TECHNOLOGY (CONTD…) Benefits: Automation of routine tasks, lower administrative costs, increased productivity and response times. Self-service access to information and training for managers and employees Online recruiting, screening, and pretesting of applicants Training, tracking, and selecting employees based on their record of skills and abilities Organization-wide alignment of “cascading” goals Corporate Social Responsibility (CSR) CHALLENGE 4: SETTING AND ACHIEVING CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY GOALS The responsibility of the firm to act in the best interests of the people and communities affected by its activities. Sustainability is closely related to corporate social responsibility. Sustainability refers to a company’s ability to produce a good or service without damaging the environment or depleting a resource. Green HRM CHALLENGE 5: COMPETING, RECRUITING, AND STAFFING GLOBALLY Globalization • approximately 70 to 85 percent of the U.S. economy today is affected by international competition. • About 10 percent of what Americans produce every year, dollar-wise, is sold abroad. Impact of Globalization • “Anything, anytime, anywhere” markets • Partnerships with foreign firms • Lower trade and tariff barriers • Expatriate challenges • Repatriates, inpatriates Right to privacy Work-life balance CHALLENGE 5: SOCIO-CULTURAL FACTORS Contingent workers (eg: crowd-sourcing & gig economy) Workplace harassment and bullying Gender and racial discrimination THANK YO U Thank you