MGT 351 - HUMAN RESOURCE MANAGEMENT

Lecture 1 to Lecture 12 | Copyright | Muhammad Faisol Chowdhury Senior Lecturer, School of Business, North South University | Email: faisol.chowdhury@me.com
1

CONTENT
Lecture 1 - Introduction to HRM Lecture 2 - Ethical & Legal Issues of HRM Lecture 3 - Diversity Management Lecture 4 - Human Resource Information System Lecture 5 - HR Planning & Strategy Lecture 6 - Job Analysis & Design Lecture 7 - Recruitment & Selection Lecture 8 - Performance Management Lecture 9 - Training & Development Lecture 10 - Remuneration & Reward Management Lecture 11 - Career Management Lecture 12 - Occupational Health & Safety

1. INTRODUCTION TO HRM

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

3

UNDERSTANDING HRM

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 and aspects related to it.

MANAGEMENT & HRM

HRM is Management but Management is more than HRM HRM is an integral part of Management A good relation between Staff Manager & Line Manager is important

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 OBJECTIVES & APPROACHES

Soft Approach Alignment Organizational People Value Competitive Advantage Maintenance Profit Commitment Hard Approach Retention

Operational

Personal

ACTIVITIES OF HRM

FUNCTIONS OF HRM
Transactional HRIS Payroll Administrative Planning Job Analysis Recruitment Selection Training Performance Appraisal Salary & Compensation OH&S Industrial Relations International HRM Ethical & Legal Environment People Development Performance Management Knowledge & Culture Diversity Management Change Management

Traditional

Transformational

Contemporary

Surveillance Humor Management Office Context Emotion Management Motivation & Empowerment Etc

THREE MOST IMPORTANT ACTIVITIES

Hiring right candidate with right qualification for right position

Obtain

Maintain

Develop

Enhancing employees commitment, loyalty, satisfaction, retention

Improving employees KSA

LINE & STAFF FUNCTION

Line Manager

Line Managers direct the work of subordinates in accomplishing the organizations basic goals. Example: Production Manager, Sales Manager, etc Staff Manager Staff Managers are authorized to assist and advice line managers in accomplishing the organizations goal. Example: HR Manager

10

HR MANAGERS RESPONSIBILITIES
Line Function Superior - Subordinate relationship Direct and supervise activities of its own line. Theoretical Perspective Soft Approach Hard Approach Staff Function Advisory relationship Unitarist Approach Pluralist Approach Radical Approach Centralization Strategic Function Coordinative relationship Attempt to achieve strategic fit by coordination of HR activities. Decentralization

Assist other line managers.

11

THEORETICAL FRAMEWORK

Unitarist Framework (Unitarism)

It considers workplaces as centers of cooperation, where employers and employees work together to achieve benet for all parties. Believes that employer and employee can be of one mind on the best way to ensure business success and a fair return to all parties. Conict is to be avoided since it comes from difcult individuals. Discourages unionism and supports Taylorism. Industrial Relation is grounded on mutual cooperation. HRM will deliver and maintain this culture of cooperative spirit.

12

THEORETICAL FRAMEWORK

Pluralist Framework (Pluralism)

Believes that organizations are made up of individuals and groups with conicting claims and interests. Conict is inevitable. Conict is not necessarily unhealthy, as it brings positive and mutually understandable outcomes. Unionism is welcome but its movement must be controlled in order to ensure that they perform in the organizations interest. IR will deliver and maintain this culture.

13

THEORETICAL FRAMEWORK

Radical / Marxist Framework (Radicalism / Marxism)

Organizations are one element of capitalist system, which considers worker elimination and exploitation are the solution for any problem. Supports communism. Organizations thus are a part of an ongoing struggle throughout society over the sharing of the fruits of production. Both unitarist and pluralist theories are seen as serving the interest of capital. Removing the source of conict requires overthrow the whole capitalist system.

14

THEORETICAL FRAMEWORK

Hard Approach: (instrumental)

Associated with Taylorism / unitarist understanding of organization. Employees are viewed as a passive factor of production and an expense. Emphasize is given more on production rather than employees personal needs. Employees can easily be replaced and are thus seen as disposable.

15

THEORETICAL FRAMEWORK

Soft Approach: (humanistic)

Root from pluralist understanding of organization. Stress on active employee participation for organizational goal achievement. Employees are seen as valued asset, and a source of competitive advantage, thus, investment is made on them to increase skill, loyalty and prot.

16

HISTORICAL DEVELOPMENT

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

17

HISTORICAL DEVELOPMENT

The Welfare Tradition

Because of the 19th century industrialization, companies like Rowntrees, Cadbury, Unilever, etc. initiated programs known as Industrial Welfare to provide housing, basic health care, canteens, education for workers and families. It was soft and person centered side of management. Focused on OH&S, EAP, workplace counseling, hiring, ring, salary & wage, etc. The Personnel Ofcer was not in any formal sense the representative of the workforce. He was paid to be part of the organizations management.

18

HISTORICAL DEVELOPMENT

The Industrial Relations Tradition

In 1929, F W Taylors scientic management inuenced Personnel Management concept to take care of employee related activities like employee hiring, ring, training, motivation, payment, as well as compliance with various employment laws. From the mid 19th century, industrialized workers started becoming increasingly organized and their power had increased and were required a systematic framework for negotiation, conict resolution and employment relation. Labor Party and Liberal Party involvement with labor unions and employers associations. Personnel Ofcers responsibilities included negotiation, conict resolution, discipline, grievance procedure, etc. This diplomatic role also posed a dilemma of dual allegiance - lack of trust in the relationship between personnel function and management function.

19

HISTORICAL DEVELOPMENT

The Control of Labor Tradition

After the mid 19th century, globalization, internationalization, standardization emerged. Companies like IBM, Xerox, HP, etc. pioneered personnel management by adding value to it. This tradition of personnel management arose in response to the increasing pace of organizational growth and change. Primary responsibilities of the Personnel Ofcer were: job allocation, performance monitoring, time-keeping, control of absenteeism, recording sick leave, holidays, administering pay and benets, training and promotion, devising rules, regulations, policy, procedure, compliance, workplace reports, etc. This was an essentially bureaucratic tradition.

20

HISTORICAL DEVELOPMENT

The Professional Tradition

In the late 19th century, intense legalization in all areas of employment has increased because of the growing complexities of growth of MNCs, globalization, internationalization and compliance. Gradually, personnel management transformed into a longer term, more proactive and strategic approach to people management, known as Human Resource Management. It is a much sophisticated behavioral and managerial theory, 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

21

CHANGING ENVIRONMENT

Globalization

Occupation

Economy

Knowledge Economy Changing Business Environment

Environment

Politics

Diversity

Technology

Internationa lization

Outsource

22

23
23

2. ETHICAL AND LEGAL ISSUES OF HRM

... fair and equal treatment for all ...
24
24

EMPLOYMENT CONTRACT

Employer obligation

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

employment contract

An informal (oral) or formal (written) agreement between an employer and employee specifying the legal obligations of each.

Employee obligation

duties & obligations defined in the law that an employee must fulfill
25
25

EMPLOYMENT CONTRACT

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.

26
26

ETHICS

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

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 of understanding 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 on CSR, whereas, another organization may emphasize more on profitability.

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

27
27

ETHICS & HRM

EEO - Equal Employment Opportunity AA - Affirmative Action Anti Discrimination Harassment Workplace Discrimination Diversity Management CSR - Corporate Social Responsibility

28
28

ETHICS & HRM

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 to disturb and upset people. Example: sexual harassment, leg-pulling, bullying, mocking, teasing, etc. related age, culture, gender, religion, etc.

29
29

ETHICS & HRM

Workplace Discrimination - any practice that makes distinctions between different groups 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 Industrial activity Political belief Gender Career status Marital status Religion Association involvement Criminal conviction Physical features Pregnancy Victimization Disability Personal characteristics Race Sexual harassment Culture Medical record Sexual preference Others

30
30

ETHICS & HRM

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 female pilot for her childbearing potential.

31
31

ETHICS & HRM

Indirect Discrimination - occurs when policies, procedures and practices that appear to be neutral (non discriminatory) produce adverse outcomes for people with specific characteristics.

it occurs when a person seeks to impose a condition with which someone with one of the specified attributes 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.

32
32

ETHICS & HRM

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.
Retaliation - an employer may not fire, demote, harass or otherwise take revenge against an individual for filing a charge of discrimination, participating in a discrimination proceeding, or otherwise opposing discrimination. Example - assigning extra work load and changing shift patterns of a female employee because of her complain of discrimination, as females are more likely to be responsible for child care.

33
33

ETHICS & HRM

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.

34
34

ETHICS & HRM

Child Labor - what to do about it?

Should we ban it? Who will earn for family? Child Employment?

35
35

ETHICS & HRM

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.

36
36

37
37

3. DIVERSITY MANAGEMENT
... blending people for organizational benet ...
38
38

DIVERSITY MANAGEMENT

Diversity is having people from different background 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.

39
39

DIVERSITY MANAGEMENT

Hiring people with different background and using their competencies organizations benefit.

for the

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

40
40

WHY DIVERSITY

Diversity Management

Societal

Organizational

Employee

CSR & Ethics

Competitive Advantage

Productivity Satisfaction, Commitment Career Development

Goodwill & Image Better ER

Learning Culture

Local & Global Compliance

41
41

APPROACHES OF DIVERSITY MANAGEMENT

Legal obligation Ethical obligation Aging workforce Religion Disability

42
42

DIVERSITY & COST

Diversity

management

Productivity

Diversity

mismanagement

Expense

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.

43
43

DIVERSITY MANAGEMENT STRATEGY

Five goals of diversity management strategy

Acquisition

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

Communication

Education, Training

Career Development

Work-life balance

44
44

45
45

4. HUMAN RESOURCE INFORMATION SYSTEM

... technological upgradation of HRM activities ...

46
46

UNDERSTANDING HRIS
An information system designed to support 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.

System of collecting all disorganized data, facts, figures, numbers and all other possible information to store in a meaningful way so that whenever needed, people can retrieve, manipulate, analyze and use it.

47
47

UNDERSTANDING HRIS

Faster

Work Support

Easy Representation

Cost Cutting

Efficiency

Productivity

Effectiveness

Quality

Simplicity

Secured Storage

Accuracy

48
48

HRIS DATA

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

49
49

HRIS TYPES

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 HR data, analyze and display HR information. DSS (Decision Support system) - provide analytical and simulation tools that can be used to aid managements HR decision making.

50
50

HRIS NEED ANALYSIS

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.

51
51

PROBLEMS OF ADAPTION

Lack of top managements support Satisfaction with existing paper based / manual system Security and confidentiality

Limitation of HRIS knowledge and skills Not identifying and understanding the importance of HRIS

52
52

53
53