Human Resource Management
BA23214
HR Model – Dave Ulrich
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- DAVE ULRICH
EXPLAINS THE
ROLE OF THE
HR BUSINESS
PARTNER IN A
DIGITAL AGE
Concepts
• Functions of Management
• Span of Control
• Departmentation
• Inside-out and Outside-in
Roles of HRD Manager
Key roles for HRD Analytic Developmental
practitioners (ASTD, 1989) • Need Analyst
• Researcher
• Programme
Designer
• Evaluator • Material
Developer
R. Wayne Pace, Philip C.
Smith and Gordon Mills,
Instrumental Mediational
after reviewing the 11 roles • Instructor / • HRD Manager
of HRD as indicated by the Facilitator
• Organization
• Individual Career
Development
American Society for Training Change Agent
• Marketer
Advisor
• Administrator
and Development (ASTD)
grouped all these roles into 4
major areas.
Roles of HRD Manager - Analytic
• Needs Analyst - The role of defining gaps between ideal
and actual performance and specifying the cause of the
gaps
• Researcher - The role of identifying, developing, or testing
new information (theory, research, concepts, technology,
models, hardware and so on) and translating the
information into its implications for improved individual
or organizational performance.
• Evaluator - The role of identifying the extent of a
program, service or product’s impact.
Roles of HRD Manager - Developmental
• Program Designer - The role of preparing
objectives, defining content, selecting and
sequencing activities for a specific program.
• Material Developer - The role of producing
written or electronically mediated
instructional materials.
Roles of HRD Manager - Instrumental
• Instructor / Facilitator - The role of presenting
information, directing structured learning
experiences, and managing group discussions and
group processes.
• Organization Change Agent - The role of influencing
and supporting changes in organization behavior.
• Marketer - The role of marketing and contracting for
HRD viewpoints, program and services.
Roles of HRD Manager - Mediational
• HRD Manager - The role of supporting and leading a group’s
work, and linking that work with the total organization.
• Individual Career Development Advisor - The role of helping
an individual to assess personal competencies, values and
goals, and to identify, plan and implement development
and career actions.
• Administrator - The role of providing co-ordination and
support services for the delivery of HRD programmes and
services.
Perspectives in Human Resource
Management
Unit I
Unit I
• Human Resource Management - Evolution,
Importance and Functions
• HR Policies – Types, Process of Formulation
and Guidelines
• Human Resource Information System
Human Resource Management
• Human resource management is the process of
acquiring, training, appraising, and compensating
employees, and of attending to their labor
relations, health and safety, and fairness concerns
• Desseler -the policies and practices involved in
carrying out the people or human resource
aspects of a management position, including
recruiting, screening, training, rewarding, and
appraising comprises of HRM
Definitions
• Edwin B. Flippo - Human resource management is
planning, organizing, directing and controlling of
the procurement, development, resources to the
end that individual and societal objectives are
accomplished.
• Decenzo and Robbins - HRM is a managerial
process of acquiring and engaging the required
workforce appropriate for the job and concerned
with developing, maintenance and utilization of
workforce.
Definitions
• French Wendell - Human resource management is
the recruitment, selection, development, utilization,
compensation and motivation of human resources
by the organisation.
• Storey - A distinctive approach to employment
management which seeks to achieve competitive
advantage through the strategic deployment of a
highly committed and capable workforce, using an
integrated array of cultural, structural and personnel
techniques.
People / Personnel aspects of a
management job
• Conducting job analyses (determining the
nature of each employee’s job)
• Planning labor needs and recruiting job
candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries (compensating
employees)
People / Personnel aspects of a
management job
• Providing incentives and benefits
• Appraising performance
• Communicating (interviewing, counseling,
disciplining)
• Training and developing managers
• Building employee commitment
Why is Human Resource Management
Important to ALL Managers?
• AVOID PERSONNEL MISTAKES
– Hire the wrong person for the job
– Experience high turnover
– Have your people not doing their best
– Waste time with useless interviews
– Have your company taken to court because of your
discriminatory actions
– Have your company cited under federal occupational safety
laws for unsafe practices
– Have some employees think their salaries are unfair relative to
others in the organization
– Allow a lack of training to undermine your departments
effectiveness
Why is Human Resource Management
Important to ALL Managers?
• IMPROVE PROFITS AND PERFORMANCE
– As one company president summed up: For many years, it has been
said that capital is the bottleneck for a developing industry. I don t
think this any longer holds true. I think its the work force and the
company s inability to recruit and maintain a good work force that
does constitute the bottleneck for production. I don t know of any
major project backed by good ideas, vigor, and enthusiasm that has
been stopped by a shortage of cash. I do know of industries whose
growth has been partly stopped or hampered because they can t
maintain an efficient and enthusiastic labor force, and I think this will
hold true even more in the future. a
– Indeed, we’ll see that because of global competition, technological
advances, and the changing nature of work, that president s
statement has never been truer than it is today
a
Quoted in Fred K. Foulkes, The Expanding Role of the Personnel Function, Harvard Business Review, March April
Why is Human Resource Management
Important to ALL Managers?
• ANYONE MAY SPEND SOME TIME AS AN HR
MANAGER
– Some may well make a planned (or unplanned)
stopover as a human resource manager.
Why is Human Resource Management
Important to ALL Managers?
• HR FOR ENTREPRENEURS
– Some people may either work for small businesses
or create new small businesses of their own.
– If you are managing your own small firm with no
human resource manager, you’ll have to
understand the nuts and bolts of human resource
management.
Line & Staff Authority
• Authority is the right to make decisions, to
direct the work of others, and to give orders.
• In organizations, having line authority
traditionally gives managers the right to issue
orders to other managers or employees. Line
authority therefore creates a superior (order
giver) subordinate (order receiver)
relationship.
Line & Staff Authority
• Staff authority gives a manager the right to
advise other managers or employees. It
creates an advisory relationship.
• On the organization chart, managers with line
authority are line managers. Those with staff
(advisory) authority are staff managers
Line Managers Human Resource Duties
• Because of the direct handling of people has
always been part of every line manager s
duties, from president down to first-line
supervisors.
– Placing the right person in the right job
– Starting new employees in the organization
(orientation)
– Training employees for jobs that are new to them
Line Managers Human Resource Duties
– Improving the job performance of each person
– Gaining cooperation and developing smooth
working relationships
– Interpreting the company s policies and
procedures
– Controlling labor costs
– Developing the abilities of each person
– Creating and maintaining department morale
– Protecting employees health and physical
condition
Human Resource Manager’s Duties
1. A line function. The human resource manager directs
the activities of the people in his or her own
department, and perhaps in related areas (like the
plant cafeteria).
2. A coordinative function. The human resource
manager also coordinates personnel activities, a duty
often referred to as functional authority (or
functional control). Here he or she ensures that line
managers are implementing the firm’s human
resource policies and practices (for example,
adhering to its sexual harassment policies).
Human Resource Manager’s Duties
3. Staff (assist and advise) functions. Assisting and
advising line managers is the heart of the human
resource manager s job.
– He or she advises the CEO so the CEO can better
understand the personnel aspects of the company s
strategic options.
– HR assists in hiring, training, evaluating, rewarding,
counseling, promoting, and firing employees.
– It administers the various benefit programs (health and
accident insurance, retirement, vacation, and so on).
– It helps line managers comply with employment and
occupational safety laws, and plays an important role in
handling grievances and labor relations.
Human Resource Manager’s Duties
– It carries out an innovator role, by providing up-to-date
information on current trends and new methods for better
utilizing the company’s employees (or human resources).
– It plays an employee advocacy role, by representing the
interests of employees within the framework of its primary
obligation to senior management. Although human
resource managers generally can’t wield line authority
(outside their departments), they are likely to exert implied
authority. This is because line managers know the human
resource manager has top managements ear in areas like
testing and affirmative action
IBM Example
Randall MacDonald, IBM s senior vice president of human
resources, noted that the traditional human resource
organization often isolates HR functions into silos such as
recruitment, training, and employee relations. He says this silo
approach often means there s no one team of human resource
specialists focusing on the needs of specific groups of employees.
MacDonald therefore reorganized IBM s human resource function.
He segmented IBM s 330,000 employees into three sets of
customers : executive and technical employees, managers, and
rank and file. Separate human resource management teams
(consisting of recruitment, training, and compensation specialists,
for instance) now focus on serving the needs of each employee
segment. These specialized teams help ensure that the
employees in each segment get precisely the talent, learning, and
compensation they require to support IBM s needs.
TRENDS SHAPING HUMAN RESOURCE
MANAGEMENT
• Globalization and Competition Trends
– Deregulation (doing away with or relaxing regulations)
– Technological Trends
• Trends in the Nature of Work
– High tech jobs : As the U.S. governments Occupational Outlook Quarterly
put it, knowledge-intensive high-tech manufacturing in such industries as
aerospace, computers, telecommunications, home electronics,
pharmaceuticals, and medical instruments is replacing factory jobs in steel,
auto, rubber, and textiles.
– Service jobs : Number of manufacturing jobs have come down and service
jobs are up.
– Knowledge work and Human Capital : Human capital refers to the
knowledge, education, training, skills, and expertise of a firm s workers;
human resource management methods can boost profitability by building
TRENDS SHAPING HUMAN RESOURCE
MANAGEMENT
• Workforce and Demographic trends
– Demographic trends
• Gen Y (1977-2002) – high performance and high
maintenance
• Retirees
• Non traditional workers – remote work, contract,
freelance, co-working sites
• Workers from abroad
• Economic Challenges and trends
– Unemployment
– Globalization
Importance of HRM
• Improves productivity
• Reduces cost
• Strengthens brand
• Enables financial and intellectual company
growth
• Manages transformation and change
Hawthorne Experiments
• By Elton Mayo, White Head and
Roethlisberger
• At Western Electric Company’s Hawthorne
Works, Cicero, Illinois
• Time period : 1924-1932
• Key phases
– Illumination Studies (1924-1927)
– Relay Assembly Test Room Studies (1927-1932)
– Mass Interviewing Program (1928-1930)
– Bank Wiring Observation Room Study (1931-1932)
Illumination Studies
• The experiment was conducted in two rooms: an experiment
room and a control room.
• In the experiment room, workers performed their tasks under
different lighting conditions. In the control room, workers
performed their tasks under normal conditions.
• Productivity increased in both rooms when the lighting was
changed, regardless of whether it was increased or
decreased. Productivity only decreased when the light level
was reduced to about the level of moonlight. Productivity
decreased after the experiment ended.
• The researchers concluded that employees were responding
to the attention they were getting from the researchers and
supervisors during the study, rather than to any changes in
Relay Assembly Test Room Studies
• A group of six female workers were chosen to
assemble telephone relays in a dedicated test
room.
• Researchers introduced various changes to the work
environment, including different break lengths,
meal provisions, and workday adjustments.
• Regardless of the specific changes made, the
workers' productivity consistently increased due to
the feeling of being observed and valued by
management.
Mass Interviewing Program
• To gather in-depth information about employees'
perspectives on their jobs, supervision, company
policies, and overall working conditions, mass
interview program was done.
• Initially, direct questioning was used, asking specific
questions about satisfaction with supervisors and
policies, but this often led to guarded
responses. Later, researchers shifted to a non-
directive approach where interviewers primarily
listened to employees' concerns and perspectives
without interrupting or offering opinions.
Mass Interviewing Program
• Employees' attitudes and social interactions within
the workplace had a major impact on their
productivity. Complaints were often symptoms of
deeper underlying issues, not just objective facts
about the work environment. Workers' perceptions
of their status and social relationships within the
company significantly influenced their behaviour.
• The Mass Interviewing Program highlighted the
importance of considering the psychological and
social needs of employees, leading to the
development of the Human Relations movement in
management.
Bank Wiring Observation Room Study
• This experiment focused on a group of male workers
assembling telephone switching equipment.
• When researchers tried to increase productivity by
introducing pay incentives based on individual output,
the workers actually produced less, demonstrating that
their behaviour was more strongly driven by group norms
than individual rewards.
• The study revealed that the workers had developed
unwritten rules and social pressures within their group,
which discouraged anyone from producing significantly
more than others, fearing potential repercussions from
the group.
Evolution of HRM
• Elton Mayo - Hawthorne study - during 1920s -
social and psychological factors are
responsible for workers’ productivity;
workplace culture and conditions play a role in
productivity; participation in decision making
improve performance
• Robert Owen - Introduced reforms like no
children employed, fewer work hours, higher
pay, clean work environment
Evolution of HRM
• FW Taylor - scientific management;
differentiated compensation system that
rewards employees with higher performance
levels
Evolution of HRM
• Setting up of ‘welfare offices’, , ‘hiring offices’, ‘safety
bureaus’, ‘time-office’
• Helping employers to deal with trade unions in 1930s
• Equal opportunity regulations in 1960’s and competitive
advantage with engaged employees in the globalization in
1970s
• Behavioural science movement; Maslow, Argyris and
Herzberg in 1960s
• Organizational Development Movement initiated by Bennis
in the 1970
• Human Resource Accounting (HRA) theory developed by
Flamholtz (1974)
Evolution of human resource management
Transition of HRM Function
• Reactive • Proactive
• Perspective • Descriptive
• Administrative • Executive
op
HR POLICIES
Types of HR Policies
• Originated Policies
• Appealed Policies
• Imposed Policies
• General Policies
• Specific Policies
• Written Policies and Implied Policies
Types of HR Policies
Principles of HR Policies
• Related to Objectives
• Easy to Understand
• Precise
• Stable as well as flexible
• Based on facts
• Appropriate number
• Just, fair and equitable
• Reasonable
• Periodic review
Formulation of HR Policies
• Gain understanding of the corporate culture and its
core values.
• Analyse existing policies, written and unwritten. HR
policies will exist in any organization, even if they
are implicit rather than expressed formally.
• Analyse external influences (HR Laws in India).
• Assess any areas where new policies are needed or
existing policies are inadequate.
• Check with managers, preferably starting at the top,
on their views about HR policies and where they
Formulation of HR Policies
• Seek the views of employees about the HR policies,
especially the extent to which they are inherently fair and
equitable and are implemented fairly and consistently.
Consider doing this through an attitude survey.
• Seek the views of union representatives.
• Analyse the information obtained in the first seven steps and
prepare draft policies
• Consult, discuss and agree policies with management and
union representatives.
• Communicate the policies, with guidance notes on their
implementation as required. Supplement this communication
with training.
Formulation of HR Policies
HR : Strategy, Policy, Practice
• HR strategies, which define the direction in which
HRM intends to take each of its main areas of
activity.
• HR policies, which set out what HRM is there to do
and provide guidelines defining how specific
aspects of HR should be applied and implemented.
• HR practices, which consist of the HRM activities
involved in managing and developing people and in
managing the employment relationship.
HUMAN RESOURCE INFORMATION
SYSTEM (HRIS)
HRIS
• As defined by Kettley and Reilly (2003), a
computerized human resource information
system consists of ‘a fully integrated,
organization-wide network of HR-related data,
information, services, databases, tools and
transactions’.
Reasons for adopting e-HR / HRIS
• HR service improvement;
• Cost-cutting and operational efficiency;
• The desire of the HR function to change the
nature of its relationship with employees and
line managers;
• The transformation of HR into a customer-
focused and responsive function;
• The offer of services that fit the new world of
work and are attractive to current and future
staff.
Functions of a computerized HR System
Basic functions
• hold personal details about individual employees
including career history, skills and qualifications,
leave and absence records;
• hold details about employees’ jobs, including
grade, pay and benefits, hours, locations, job
description or role definition;
• produce reports summarizing different aspects
of this information
Functions of a computerized HR System
Additional ‘functionality’
• Recording and analysis of absence, attendance and labour
turnover, which includes making comparisons between
different occupations and locations and producing data on
trends;
• Recruitment and training administration;
• Job evaluation;
• Sophisticated modelling tools for such activities as human
resource planning and reward management, which enable
the system to be used to support strategic decision-making;
• Linkages to the internet (for example as part of an internet
recruitment system) or to the internal intranet
Technical Infrastructure
Human resource information system
• This provides the information required to
manage HR processes. These may be core
employee database and payroll systems but
can be extended to include such systems as
recruitment, e-learning, performance
management and reward. The system may be
web-based, enabling access to be remote or
online and at any time.
Technical Infrastructure
HR/corporate intranet
• An intranet is an electronic network that enables
information to be communicated across
organizations. It posts static data such as
information on HR policies and communications
about employee facilities such as learning
opportunities and flexible benefits. It can include
links that enable managers and other employees to
interface directly with HR applications and make
changes or enquiries
Technical Infrastructure
B2E (Business to Employee) portal
• A B2E portal provides a single intranet screen
that enables the organization to gather and
present information and gives people ready
access to it.
Technical Infrastructure
Application service provider
• An application service provider (ASP) carries
out on behalf of the organization all or much
of the administration of the human resource
information system. Organizations, often
smaller or medium-sized, can use an ASP to
outsource the burden of running the system
Effective system features
• The IPD guide on using computerized personnel
systems (1999) states that an effective system
will have the following features:
• meets business needs;
• user-friendliness;
• good reporting facilities;
• flexibility;
• value for money;
• good supplier support;
• reliability
Challenges in developing a HRIS
According to Kettley and Reilly (2003)
• Aligning e-HR investment with the strategy of
the business;
• Taking into account the needs of a varied
workforce, including their access to and
familiarity with technology;
• Customizing e-HR;
• Avoiding information overload;
• Making an impact on HR and organizational
performance
Preferred Characteristics of an Information
System
• Direct input of data at source;
• Systems that can be used by the ‘occasional
user’, not just a dedicated expert;
• Systems able to deal with administrative
processes, not simply a management
information system;
• Systems that provide the information needed
by line managers in an easily understood
format.
Applications
• Personal records • Reward management
• Human Resource Planning • Performance
• Employee turnover management
monitoring and control • Computer-managed
• Employee scheduling learning
• Employee profiling • Career management
• Skills inventories and • Absence control
audits • Equal opportunity
• Competency modelling monitoring
• Recruitment • Expert systems