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Chapter - 1 Strategic Role of HRM: Management

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CHAPTER – 1

STRATEGIC ROLE OF HRM


Management
Management involves coordinating and
overseeing the work activities of others so
that these activities are completed efficiently
and effectively.
MANAGEMENT PROCESS
The five basic functions of planning, organizing,
staffing , leading and controlling.
MANAGERS FUNCTIONS
 Planning.
1. Establishing goals and standards.
2. Developing rules and procedures.
3. Forecasting.
MANAGERS FUNCTIONS (cont’d)
 Organizing.
1. Giving specific task to each employee.
2. Establishing departments.
3. Delegating authority to subordinates.
4. Establishing channels of authority and
communication.
5. Coordinating the work of subordinates.
MANAGERS FUNCTIONS (cont’d)
 Staffing.
1. Determine what type of people to be hired.
2. Recruiting prospective employees.
3. Selecting employees.
4. Setting performance standards.
5. Compensating employees.
6. Evaluating performance.
7. counseling employees.
8. Training and developing employees.
MANAGERS FUNCTIONS (cont’d)
 Leading.
1.Get the job done.
2. Maintaining morale.
3. Motivating subordinates.
MANAGERS FUNCTIONS (cont’d)
 Controlling.
1. Setting standards such as sales quotas, quality
standards or production levels.
2. Comparing actual performance with set standards.
3. Taking corrective actions as needed.
What is Human Resource Management
 Managing people within the organization within the employer-
employee relation.
 Involves the productive use of people in achieving
organization’s strategic business objectives and the satisfaction
of individual employee needs.
 The policies and practices involved in carrying out the people or
human resource aspects of a management position including
recruitment, selection, screening, training, appraising and
rewarding etc.
 The process of acquiring, training, appraising, and
compensating employees and attending to their labor relations,
health and safety and fairness concerns.
FUNCTIONS OF HR MANAGER
 Conducting job analysis.
 Planning labor needs and recruiting job candidates.
 Selecting job candidates.
 Orienting and training new employees.
 Managing wages and salaries.
 Providing incentives and benefits.
 Appraising performances.
 Communicating (interviewing, counseling, disciplining).
 Training and developing managers.
 Building employee commitment.
 Employee health and safety.
 Handling grievances and labor relations.
THREE DISTINCT FUNCTION OF HR MANAGER
 A line function. Exerts line authority within the HR department.
 A coordinative function. Ensures that line managers are
implementing the firms HR objectives, policies and procedures.
 Staff function (assist and advise)
1. Assists in strategy design and its execution.
2. Assists in hiring, training, evaluating, rewarding counseling,
promoting and firing employees.
3. Administers various benefits programs like health and accident
insurance, retirement and vacation etc.
4. Handles grievances and labor relation.
5. Provides up to date information on current trends and new
methods of solving problems.
6. Represents the employee interests within the frame work of its
main obligation to senior management.
FUNCTIONS OF LINE MANAGERS
(HRM RESPONSIBILITIES)
 Placing the right person on the right job.
 Orientation of employees.
 On job training.
 Improving the job performance of each employee.
 Developing smooth working relations.
 Interpreting the company’s policies and procedures.
 Controlling labor cost.
 Developing the abilities of each person.
 Morale building.
 Protecting employee’s health.
WHY IS HR MANAGEMENT IMPORTANT
TO ALL MANAGERS
 May hire wrong person.
 Experience high turnover.
 People may not doing their best.
 Waste time with useless interviews.
 Company may be taken to court for its discriminatory actions.
 Employees think that their salaries are unfair comparatively.
 Lack of training in the department.
 Commit any unfair labor practices.
LINE VERSUS STAFF AUTHORITY
 Authority. The right to make decisions, to direct the
work of others, and to give orders.
 Line Managers. Who are authorized to direct the
work of subordinates and is responsible for
accomplishing the organization's tasks.
 Staff Manager. Manager who assists and advises
line managers.
LINE VERSUS STAFF AUTHORITY
(cont’d)
 Functional control.
The authority exerted by HR manager as coordinator
of personnel activities.
 Line authority. The authority exerted by HR
manager by directing the activities of the people in
his own department.
 Implied authority. The authority exerted by HR
manager by virtue of other ‘s knowledge that he has
access to top management.
CHANGING ENVIRONMENT OF HR
MANAGEMENT
 Globalization.
 Technological Advances.
 Exporting Jobs.
 The Nature of Work.
 Workforce Demographics.
NEW PROFICIENCES OF HR MANAGER
 HR proficiencies. Represent traditional knowledge
and skills in areas such as employee selection,
training and compensation.
 Business proficiencies. Assist in creating
profitable enterprises that serve customers
effectively. So, HR manager should be familiar with
how companies operate including strategic planning,
marketing, production and finance.
NEW PROFICIENCES OF HR MANAGER
(cont’d)
 Leadership proficiencies. They need the abilities
to work with and lead management groups and drive
the changes required.
 Learning proficiencies. HR manager to stay
abreast of and apply all the new technologies and
practices affecting the profession.
KNOW YOUR EMPLOYMENT LAW
 Equal employment law. laws related to
employees like what questions it interviewers ask,
how it selects employees for training programs and
evaluate managers etc.
 Occupational safety and health law. Maintain
strict guidelines regarding safety practices.
 Labor laws. What the supervisor can and cannot
say and do etc.

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