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Amity School of Business

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SEMESTER IV

HUMAN RESOURCE MANAGEMENT

(BBAHR-30501)

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Module VI:

Increased concern for HRM (Sound IR, dual career

couples, flexi-working hours, work-from home facility) QWL-concept, significance, determinants.

International Human Resource Management (Managing

inter country differences), SHRM Talent management, competency mapping

HR accounting-cases Indian organisations, HRIS, HR audit

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IHRM

International HRM (IHRM) is the process of:

procuring,

allocating, and

effectively utilizing human resources in a multinational

corporation to achieve organisational objectives irrespective of

geographical boundaries.

IHRM is the result of three dimensions: human resource

activities, types of employees and countries of operation.

IHRM requires a broader perspective, encompasses a greater

scope of activities and is subject to much greater challenges

than is domestic HRM.

IHRM needs to keep in mind the cultural differences,

expectations of the employees in other countries. 3

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Objectives of IHRM

To reduce the risk of international human resource

To avoid cultural risks

To avoid regional disparities To manage diversified human capital

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P Morgans Model of IHRM

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P Morgans Model of IHRM

This model consists of following 3 dimensions:

1. HR Activities: procurement, allocation & utilization

2. Country of operation: host, parent and 3rd country

3. Types of employees: host country, parent country and 3rd

country nationals

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Factors affecting IHRM 8

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Need for Cultural Training

To survive and succeed expatriates require training in

three matters: culture, language and practical day to

day matters.

For organisations, it is a big challenge to prepare

expatriates for the country other than there home

country.

According to Harris and Moran, cultural differencesbetween countries could be examined along the

following dimensions:

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Need for Cultural Training

Sense of self and space

Language

Dress & Appearance

Food, eating habits

Time consciousness

Relationships

Values and norms Beliefs and attitudes

Mental processes and learning

Work habits and practices

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International training and development

1) Cultural awareness programme

2) Preliminary visits3) Language instruction

4) Practical assistance with day to day matters

5) Health and safety6) International labour laws

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A Human Resource Management System (HRMS or HRIS),refers to the systems and processes at the intersection betweenhuman resource management (HRM) and informationtechnology.

It merges HRM as a discipline and in particular its basic HRactivities and processes with the information technology field.

The Human Resource Information System (HRIS) is asoftware or online solution for the data entry, data tracking,

and data information needs of the Human Resources, payroll,management, and accounting functions within a business.

The software used for this purpose is Enterprise ResourcePlanning (ERP) software. On the whole, these ERP systemshave their origin on software that integrates information from

different applications into one universal database

Human Resource Information System (HRIS)

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Amity School of BusinessHRIS

HRIS is a systematic procedure forcollecting, storing, maintaining, retrivevingdata needed by an organisation about its

Human Resources.

HRIS is a part of organisations larger

Management Information System(MIS)

It is the data of persons presently availablealong with their present and futurepotentials

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Importance of HRIS

The Human Resource Information Systems (HRIS) provideoverall:

Management of all employee information.

Reporting and analysis of employee information. Benefits administration including enrollment status changes,

and personal information updating.

Complete integration with payroll and other company financialsoftware and accounting systems.

Applicant tracking and resume management.

With an appropriate HRIS, Human Resources staff enablesemployees to do their own benefits updates and addresschanges, thus freeing HR staff for more strategic functions.

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Importance of HRIS Keep track of

Attendance,

pay raises and history,

pay grades and positions held, performance development plans,

training received,

disciplinary action received,

personal employee information,

Finally, managers can access the information they need tolegally, ethically, and effectively support the success of theirreporting employees.

An effective HRIS provides information on just aboutanything the company needs to track and analyze about

employees, former employees, and applicants.

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Strategic Human Resource Management Strategic human resource management (SHRM) is the

integration of HRM with the strategic goals and corporate

strategy so as to improve business performance and achieve

organisational goals.

Strategic human resource management (SHRM) is a concept

that integrates traditional human resource management

activities such as hiring, pay, benefits, training, and

administration. within a firm's overall strategic planning andimplementation

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Strategic human resource managementIt focuses on

How organisation can improve their competitive performance

by utilising their human resource more effectively?

How company can best meet the needs of their employees

while promoting company goals.

How the organisation can build the set of policies and

practices that will build employee pool of skills, knowledge,

and abilities that are relevant to organizational goals

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Importance of SHRM

It enhances employee productivity and the ability of agencies

to achieve their mission.

Integrating the use of personnel practices into the strategic

planning process enables an organization to better achieve its

goals and objectives.

To manage future operations effectively, it is essential that

companies produce "business leaders" and "innovators"through SHRM Approach.

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Comparison between Traditional HRM &SHRM

Basis of Comparison Traditional HRM SHRM

Focus On activities On results

Approach Reactive Active

Responsibility Development of people Development of bothpeople and organisationin line with theorganisational goals

Significance Managing people tofacilitate the activities

Formulation andimplementation of HRstrategy in alignmentwith corporate strategy

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Benefits of SHRM

1. Identifying and analyzing external opportunities and threats

that may be crucial to the company's success.

2. To supply information regarding the company's internalstrengths and weaknesses.

3. Provides a clear business strategy and vision for the future.

4. To recruit, retain and motivate people.

5. To develop and retain highly competent people.6. To ensure that people development issues are addressed

systematically.

7. To ensure high productivity.

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Barriers of SHRM

1. High resistance due to lack of cooperation from the bottom

line.

2. Focus on current performance

3. Inability of HR to think strategically.4. Interdepartmental conflict.

5. The commitment of the entire senior management team.

6. Limited time, money and the resources.

7. Fear of incompetency of senior level managers to take upstrategic steps.

8. Diverse work-force with competitive skill sets.

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Industrial RelationsIt refers to the whole field of relationships among people, trade

unions, human relationships that exist because of the necessary

collaboration of men and women in the employment process of

modern industry.

Relation of all those associated in industry may be called IR

It include relationships between

Employers and Employees

Various unions and State

Unions, Employers and government

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Objectives of Industrial Relations

To develop & maintain harmonious

relations between management and

labor.

To safeguard the interests of labor as

well as management.

To avoid all forms of industrial

conflict.

To provide better working and

living standards to workers

To rise productivity by reducing

turnover and absenteeism.24

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To raise the productivity to a higher level

To establish government control overindustries to regulate Production & IR

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Differences between HRM & IR

HRM IR

There are 2 main parties- employee &employer

There are 4 parties employee,employer, trade unions & government

Formulation & implementation of HRMpolicies

Implementation of HRM policies resultsin IR

Conflicts arising out of poor IR requirereformulation of HRM policies

Sound IR contribute to organisationalgoals

Individual employee contacts with theimmediate superior

Employees as a group contact even thetop management

Grievance & disciplinary proceduresused to solve employer-employeeconflicts

Collective bargaining used to settleterms & conditions of employment

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Causes of Poor IR

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Causes

Economic causes Poor wages, compensation

Organisational causes Faulty communication system, unfair

practices

Social causes Violence, indiscipline, uninteresting

nature of work

Psychological causes Lack of job security, poor

organisational culture, authoritativeadministration

Political causes Trade unions, inter union rivalry

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Measures for improving IR

Sound HR Policies

Constructive attitude Collective bargaining

Participative management

Responsible unions

Employee welfare

Grievance procedure

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Quality of Work-life

It refers to the favorableness and unfavorableness of job

environment for people.

It is based on the assumption that a job is more than just a job.It is a very important part of life.

It is concerned with:

How to develop careers that allow employees to realise there full

capabilities and interests?

How to design jobs to provide meaningful, interesting and challenging

work experience?

How to utilise participative management to improve the quality of life

at workplace?

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Flexi working conditions: A useful definition of flexible

working relates to when, where, how and what work is done:

Flexible time: Work is performed at times that better suit

the employer and employee

Flexible place: Work is carried out wherever is most

appropriate and effective for the employer and employee.

Flexible tasks: Multi-skilled workers are able to undertake

a variety of tasks according to need.

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HRM and the Quality of Work-life

The HR department can develop a bundle of systems that can

together create a highly motivational culture and can improve

the quality of life of its employees, such as:

Healthy work conditions Fare compensation

Job Participation

Employees Counseling

Opportunity for career growth

Recognition of efforts

Work from home facility

Considering dual working couples31

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The beneficiaries of flexible working include:

Employers, who are able to match resources to work need and

attract and retain staff, whilst reducing fixed costs, boosting

productivity and improving customer service.

Employees, who can gain access to employment, explore new

career opportunities, raise their incomes, reduce their living

costs and balance more effectively the demands of work and

home.

Families, communities and the environment can also gain:

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Benefits of Flexible working conditions:

Managers and professionals were equipped and enabled to do

some of their work at home.

Travel was reduced substantially and more time was spent

with customers and business partners.

Part-time employees can also be recruited who can work from

their homes.

The main office size also gets reduced and remodelled into

mainly shared space, paper-free business processes

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HR Audit

Human Resource Audit is a systematic assessment of thestrengths, limitations, and developmental needs of its existinghuman resources in the context of organizational performance.

HR Audit is a comprehensive evaluation of the entire gamut of HRactivities :-

HR Cost HR activities

Health, Environment & Safety Legal Compliance Quality Compensation & Benefits

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NEED FOR H.R. AUDIT:

HR audit is done to get a clear judgment about the overall

status of the organization and also to find out whether certain

systems put in place are yielding any results.

HR audit also helps companies to figure out any gaps or lapses

and the reason for the same.

To encourage a sense of confidence in the human resource

department that it is well-managed.

To ensure effective utilization of human resources.

To evaluate the extent to which line mangers have

implemented the HR policies and programmes.

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NEED FOR H.R. AUDIT:

To examine and pinpoint strength and weaknesses related toH.R. areas and Skills and Competencies to enable anorganization to achieve its long-term and short-term goals.

To increase the effectiveness of the design and implementationof human resource policies, planning and programs.

To help human resource planners develop and updateemployment and program plans.

To conduct due diligence for mergers and acquisitions. .

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Process of HR Audit

STEP ONE: Briefing and Orientation:

Key Staff Members meet:i. To discuss particular issues considered to be important.

ii. To chart out audit procedures, andiii. To develop plans and program of audit.

STEP TWO: Scanning material information:

Scrutiny of all available information pertaining to personnel,personnel handbooks and manuals, guides, appraisal forms,computer capabilities and any other related information.

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STEP THREE: Surveying employees and conductinginterviews:

a. Interview with key managers, functional executives, Topfunctionaries in the organisation and employees

Representatives, if necessary.b. The purpose is to pinpoint issues of concern, Presentstrengths, anticipated needs and managerial views on humanresources.

c. During the on-site visit, a separate review is conducted of

HR records and postings. Employee personnel files arerandomly examined as well as compensation, employeeclaims, disciplinary actions, grievances and other relevant HRrelated information are checked.

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STEP FOUR: Evaluation: The data gathered is evaluated to

present thea. Current Situation.b. Priorities.c. Staff pattern, andd. Issues identified.

STEP FIVE: Reporting:

The information gathered is used to develop an HR auditreport.

The results of the audit are discussed with Managers and StaffSpecialists Important issues are identified for inclusion in theformal Report.

On the basis of this report the management decides whatactions need to be taken to make the HR practices more

affective

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Talent Management

Talent management refers to the skills of attracting highly

skilled workers, integrating new workers, and developing and

retaining current workers to meet current and future business

objectives.

This term "talent management" is usually associated with

competency-based management.

Talent management decisions are often driven by a set of

organizational core competencies as well as position-specific

competencies.

The competency set may include knowledge, skills,

experience, and personal traits (demonstrated through defined

behaviors).40

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Activities involved in talent

management:

Attract

Select Train

Develop

Retain

Promote

and move employees

through the organization.

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Why Talent Management is important?

To increase awareness ofavailable talent and successors

To review the performance and career potential of employees,

To discuss possible vacancy risks of current employees

To identify successors and top talent in the organization

To create development action plans so as to prepare employees

for future roles in the organization.

For analyzing their career interests and organizational business

needs

Developing these individuals to reduce the risk of losing the

best people and experiencing extensive leadership gaps when

turnover occurs42

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Competency Mapping

Research indicates that

Source of50% of job performance problems is that people

are in the wrong job.

25% of on-the-job performance problems is the inability to

identify the gaps between the competencies of the person

and the requirements of the job.

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Competency Mapping

Competencies include the collection of knowledge, skills, and

attributes (more historically called "KSA's") necessary for

achieving important results in a specific job or work role in aparticular organization.

Attributes include: personal characteristics, traits, motives,

values or ways of thinking that impact an individual's

behavior.

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Purpose of competency mapping

"Effectiveness of an organisation is the summation of the

required competencies in the organisation".

Gap Analysis Role Clarity

Potential Identification

Growth Plans.

Succession Planning.

Restructuring

Inventory of competencies for future planning.

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Mapping Process

There are about five stages while performing competency

mapping.

STAGE 1: The first stage of mapping requires understanding

the vision and mission of the organization.

STAGE 2: Second stage requires understanding the behavioral

as well as the functional aspects required to perform job

effectively. These would be the behavioral indicators that

would be measured during competency mapping.

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STAGE 3: This involves finalising the indicators

Development of dictionary which involves detail description

of the competency based on the indicators.

Care should be taken that the indicators should be measurable

and gives objective judgment.

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STAGE 4:

This stage requires finalising method of assessment.

Methods of assessment can be either through assessment

centers or 360 Degree Feedback

Assessment method should objectively measure the entire

competency required.

STAGE 5: This stage involves giving a brief feedback to the participant

about the competencies that has been assessed and where they

stand to.

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STAGE 6:

Sixth stage involves detailed report of the competencies

assessed and also the development plan for the developmental

areas so that the gap between the desired and the expected

performance can be reduced.

ca20c82471module 6

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