Resource Management By Syed Shah Rukh Haider Resource

Resource Management By: Syed Shah. Rukh Haider

Resource An economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome.

The Three Most Basic Resources Land Includes all natural resources (“gifts of nature”) used in the production process, such as arable land, forests, mineral and oil deposits, and water resources. Labor Consists of the physical and mental talents of individuals used in producing goods and services. Capital Refers not to money but to tools, machinery, and other productive equipment.

Other Resources • Energy • Entrepreneurship • Information • Expertise • Management • Time

Resources in Project Management anything used up to execute the project • Budget • People • Technology • Time • Space • Tools • Equipment • and etc.

Resource Allocation Resource allocation is used to assign the available resources in an economic way. In project management, resource allocation is the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time.

Resource Allocation Plan 1. Basic Allocation Decision 2. Contingency mechanisms

1. Basic allocation decision • The choice of which items to fund in the plan • What level of funding it should receive • Which to leave unfunded • The resources are allocated to some items, not to others

2. Contingency mechanisms A. There is a priority ranking of items excluded from the plan, showing which items to fund if more resources should become available. B. There is a priority ranking of some items included in the plan, showing which items should be sacrificed if total funding must be reduced.

Example of Resource Allocation for Jobs Assume that the active resource plan is called “Night Plan”. 3 Job classes: DW Consumer Group OLTP Consumer Group Other Consumer Group

Resource leveling A project management technique used to examine unbalanced use of resources (usually people or equipment) over time, and for resolving over-allocations or conflicts. Leveling resources involves redistributing an imbalance of allocated work. It assists project team members by keeping them from becoming overwhelmed, working overtime, or running into project burnout.

Resource leveling If DW Consumer Group do not fully use the allocated 60%, the unused portion is available for use by jobs in OLTP and Other Consumer Group.

Resource leveling The Two Key Elements of Resource Leveling: 1. 2. As the main aim of resource leveling is to allocate resource efficiently, so that the project can be completed in the given time period. Hence, resource leveling can be broken down into two main areas; projects that can be completed by using up all resources which are available and projects that can be completed with limited resources. Projects which use limited resources can be extended for over a period of time until the resources required are available. If then again, the number of projects that an organization undertakes exceeds the resources available. Then it's wiser to postpone the project for a later date.

Resource Over-allocation of a resource is when a resource has been assigned more work than can be completed during normal work hours. Resource allocation often leads to overtime and overspending on financial resources.

Techniques for Avoiding Resource Overload 1. 2. 3. 4. 5. Resource Leveling Prioritize Projects Linking Tasks Leaving Breathing Room Avoid the “Putting out fires” approach to project management

Techniques for Avoiding Resource Overload 1. Resource Leveling In this method, the project manager can either level resources by hand (complicated, but perhaps more sound) or use a software program such as Microsoft Project to level resources for you.

Techniques for Avoiding Resource Overload 2. Prioritize Projects By prioritizing projects, when a resource allocation overload is apparent or a task conflict exists, it can be resolved without piling pressure on the individual or team (or requiring the individual or team to put in a couple twelve-hour days).

Techniques for Avoiding Resource Overload 3. Linking Tasks Linking tasks is more of a logistical solution. If the resource has been assigned to research the markets for project A and project B, these tasks could be linked. In this manner, when it appears that a resource has been overallocated, really the tasks are similar enough to count for two projects. By linking these tasks from the different projects, the problem can be resolved.

Techniques for Avoiding Resource Overload 4. Leaving Breathing Room When scheduling the project, it is vital to leave breathing room between tasks. However, it is important to not under-allocate resources as this could lead to a loss of budget monies meaning resource allocations problems will affect your project's health. A fine balance must be achieved between breathing room and not moving forward quickly enough.

Techniques for Avoiding Resource Overload 5. Avoid the “Putting out fires” approach to project management If your team is consistently putting out fires, it makes it difficult to focus on the project. Moreover, by putting out fires, the team becomes knee-deep in ash, while project tasks pile up. This is where project management techniques such as Scrum come in handy.

Human Resource Management • ‘The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people. ’

Human Resource Management • “HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals. ” – Ivancevich and Glueck

History of HRM - 1 • Scientific Management Approach (mid 1900 s) – – – Study of motion and fatigue ‘one-best-way’ to accomplish the task Piece-rate system Welfare programmes Failed to bring behavioural changes and increase in productivity • Human Relations Approach (1930 -40) – Effect of social and psychological factors – Relations and respect High Productivity

History of HRM - 2 • Human Resources Approach (1970 s) – Principles • Employees are assets • Policies, programmes and practices - help in work and personal development • Conducive environment

Challenges of HRM • Individuals differ from one another • Customization of stimulation and motivation • Demanding personnel

Functions of HRM - 1 Managerial Planning Organizing Staffing Directing Controlling

Functions of HRM - 2 Operational Employment HR Development Compensation Mgt Employee Relations HR Planning Performance Appraisal Job Evaluation Recruitment Training Wage and Salary Admn Selection Management Development Incentives Placement Career Planning and Development Bonus Induction Fringe Benefits

Emerging role or HRM • Value of Human Resource • Competitive advantage • Human Resource Accounting – It is measurement of the cost and value of people for an organization

ROLE OF HR EXECUTIVES • Service provider • Executive • Facilitator • Consultant • Auditor

Challenges to HR Professionals • • • Worker productivity Quality improvement The changing attitudes of workforce The impact of the government Quality of work-life Technology and Training

Human Resource Management Definition 1 – Integration HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives

Human Resource Management Definition 2 - Influencing • HRM is concerned with the people dimensions management. Since every organization is made up of people , acquiring their services, developing their skills , motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true regardless of the type of the organization - govt, business education , health, recreational or social action

Definition 3 Applicability • HRM is planning, organizing directing and controlling of the procurement , development, compensation , integration, maintenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished. Core Elements of HRM Organizations ------People ------ Management

Meaning of HRM It is concerned with management of people from Recruitment to Retirement To select right person, at the right place for the right job.

HRM PM People as important assets who could be used for the benefit of organization and society People as a tool behavior of whom could be manipulated for benefit of the organization and replaced when worn out , this department was not treated with respect Difference between Personnel Mgmt & HRM Aiming at policies and promoting mutuality – goals, respect, rewards & responsibilities One way traffic In turn better economic performance and greater HRD Emphasis on only performance

A part of strategic business Eg – NBP Bank every unit of NBP Bank is a profit making center Not considered a part Difference between Personnel Mgmt & HRM New add-ons like training programmes could be invoked in HRM A routine activity meant to hire new employees having fixed grades & to maintain personnel records.

SCOPE OF HRM starts from the employees entry till the exit of the same and hence covers everything under the sun. Activities v. HR Planning v. Job Analysis – JD &JS- Eg Wipro – implicit JA & Nirma – explicit v. Job Design eg- Bajaj Auto- job rotation and job enrichment v. Employees Hiring --Recruitment & Selection v. Orientation & Placement, Training & Development eg Dupoint Saint Goabain Satyam –team work practiced, Punjab Tractor- Indvidual

SCOPE OF HRM v Employee and Executive Remuneration Eg- Industrial A prefers low base of salary& individual negotiation , Industrial B prefers collective bargaining v Employee Maintenance – Motivation, Communication eg Engro–for its employees with international cons, v Performance Appraisals, Job Evaluation Eg- P&G Auto- 1 -behaviour 2. on results v Industrial Relations – Welfare, Safety& Health, eg Engro

Role of HRM v. Advisory Role v. Personnel Policies v. Personnel Procedures v. Functional Role v. Service Role Eg – Google HR Managers Today Humanitarian Role Counselor Mediator Spokesman Problem Solver Change Agent Future Enhancement of Human & Non Human Resources Maximization of people to achieve organizational goals Synergizing IT with HR Managing diverse workforce

Managerial functions of HRM Planning- plan & research about wage trends, labour mkt etc Organizing- manpower and resources Staffing- recruitment & selection Directing- issuance of orders and instructions to follow plan of action Controlling – to regulate the activities Operational Functions of HRM Procurement- planning , Recruitment & Selection , Induction & Placement Development – T & D, Career Planning & Counseling Compensation- Wage & Salary administration Integration Maintenance – improving work conditions, retentions Separation - caused by resignations, retirement, death, medical reasons etc

Organization of Personnel Department 1. Its concerned with the relationships of management to employees 2. Its concerned with the relationships of employees to employees in all matter 3. Personnel department is staff deparment and has a structure of line type 4. Organization of personnel function depends on the size, structure, range and depth of actions, needs, capacities, nature and location of organization. 5. The degree to which the organization takes personnel function seriously • Scale of operations large – a separate department is essential

Organizational Structure Personnel Department

Organizational Structure Personnel Department

Personnel Department

Organizational Structure & HRM

MAIN POINTS OF CHAPTER • Organizational Structure and Human Resource Management • Formal and Informal Organizations • Tall and Flat Organizational Structures • Responsibility, Authority and Accountability • Line and Staff Functions • Human Resource Management and other Organizational Functions

Mechanistic Vs organic organization • Rigid structure • Employees are tied by rules & regulations • High degree of centralization • Suitable for operating in static environment • Decision-making is done by superiors • Ex: Public sector in the pre-reforms era • Flexible structure • Employees are not tied by rules & regulations • Decentralized style of management • Suitable for operating in dynamic environment • Decision-making is done by junior level employees also • Ex: Marico`s Saffola

Formal organization Informal organization Chess group President Vice President Division Managers Department Managers Division Managers Vice President Division Managers Department Managers Department Managers Informal organization Bowling team

Tall Vs Flat structure CMD COO GM ED ED GM GM CM ED PM PM CM Manager Team Lead Manager Officer Team Member Officer TALL STRUCTURE Executive Team Member FLAT STRUCTURE Team Member

RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY • Responsibility: It is the obligation of a manager to carry out the duties assigned to him. • Authority: It refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility. • Accountability: The employee's answerability on using the authority in discharging the responsibility is termed accountability.

LINE AND STAFF FUNCTIONS • Departments or employees of a firm that perform core activities • Contributes directly to the business of the firm • Ex: Manufacturing and Marketing departments • Departments or employees of a firm that perform a support function • Contributes indirectly to the business of the firm • Ex: HR and Finance departments

Line & Staff Relationship Traditional concept Service oriented firm Which are line and staff functions Both needs to support each other

Line staff conflict Different perception HR professional to bring change • • Understand market & organization Be empathetic Build trust and transparency Win – win approach

The Role of Human Resources Department As a specialist As a facilitator As a change agent As a controller

HUMAN RESOURCE MANAGEMENT AND OTHER ORGANIZATIONAL FUNCTIONS Product & HR Production & HR Marketing & HR Management Techniques & HR Organization structure & HR

Human Resource Planning

Human Resource planning Right number Right Skills Right Time Right Cost

HRP defined • Process of anticipating and making provision for the movement of people into, within, and out of an organization

Objectives of HRP Right Time • To maintain Right number • To forecast Right Skills • To optimize Right Cost • To utilize

HRP at different planning levels Ø Corporate – level planning Ø Intermediate – level planning Ø Operations planning Ø Planning short-term activities

Organizational plans and objectives Identify future human resource requirements HUMAN RESOURCE PLANNING MODEL Compare with the current HR inventory Determine the numbers, levels & criticality of vacancies Analyze the cost & time involved in managing the demand Choose the resources & methods of recruitment Determine the redundant numbers Analyze the cost & time required for managing surplus Redeploy Retrench

Forecasting • Compare future needs with current availabity • Analyze companies change plan • Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios

Matching the inventory with future requirements • If the current inventory exceeds the future requirements • Natural attrition cannot bring down resource to match • What to consider then? ?

MANAGING THE FORECASTED DEMAND / SURPLUS Managing future demand Managing Future Surplus

Dealing With Surplus Manpower Retrenchment outplacement layoffs Leave of absence without pay Loaning

Work Sharing Reduced work hours Early/voluntary retirement attrition

Growing importance of HRP

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