UNIT-I

INTRODUCTION







Human Resource Management
Introduction
What Is HPh!
Human Fesource |anagement (HF|) Is a way of management that lInks peoplerelated actIvItIes to
the strategy of a busIness or organIsatIon. HF| Is often referred to as strategIc HF|. t has several
goals:
To meet the needs of the busIness and management (rather than just serve the Interests of
employees);
To lInk human resource strategIes / polIcIes to the busIness goals and objectIves;
To fInd ways for human resources to add value to a busIness;
To help a busIness gaIn the commItment of employees to Its values, goals and objectIves
%he IInk between Human Pesources and usIness Strategy
All elements of the busIness strategy have ImplIcatIons for human resources, as Illustrated In the table
below. The challenge for management Is to IdentIfy and respond to these HF challenges:
amples of Key Strategy Issues Possible Human Resource Implications
What markets should the business compete
in?
What expertise is required in these markets? Do
existing management and employees have the right
experience and skills
Where should the business be located to
compete optimally?
Where do we need our people? How many do we
need?
How can we achieve improvements in our
unit production costs to remain
competitive?
How productive is the workIorce currently? How
does this compare with competitors? What
investment in the workIorce (e.g. training,
recruitment) and their equipment is required to
achieve the desired improvement in productivity?
How can the business eIIect cultural
change?
What are the current values oI the workIorce. How
can the prevailing culture be inIluenced/changed to
help implement a change programme?
How can the business respond to rapid
technological change in its markets?
What technological skills does the business currently
possess? What additional skills are needed to
respond to technological change? Can these skills be
acquired through training or do they need to be
recruited?
An Important part of HF| Is the Human Pesources PIan. The purpose of thIs plan Is to analyse the
strategIc requIrements of the busIness In terms of manpower and then to fInd a way of meetIng the
requIred demand for labour. ThIs Is the subject of a separate revIsIon note.
Differences between Personnel Management (PM) and Human Resources Management
(HRM)

1. Personnel mean employed persons oI an organization. Management oI these people is
personnel management (PM). Human resource management (HRM) is the management oI
employees` knowledge, aptitudes, abilities, talents, creative abilities and skills/competencies.

2. PM is traditional, routine, maintenance-oriented, administrative Iunction whereas HRM is
continuous, on-going development Iunction aimed at improving human processes.

3. PM is an independent Iunction with independent sub-Iunctions. HRM Iollows the systems
thinking approach. It is not considered in isolation Irom the larger organization and must take
into account the linkages and interIaces.

4. PM is treated like a less important auxiliary Iunction whereas HRM is considered a strategic
management Iunction.
5. PM is reactive, responding to demands as and when they arise. HRM is proactive, anticipating,
planning and advancing continuously.
6. PM is the exclusive responsibility oI the personnel department. HRM is a concern Ior all
managers in the organization and aims at developing the capabilities oI all line managers to carry
out the human resource related Iunctions.

7. The scope oI PM is relatively narrow with a Iocus on administering people. The scope oI
HRM views the organization as a whole and lays emphasis on building a dynamic culture.

8. PM is primarily concerned with recruitment, selection and administration oI manpower. HRM
takes eIIorts to satisIy the human needs oI the people at work that helps to motivate people to
make their best contribution.

9. Important motivators in PM are compensation, rewards, job simpliIication and so on. HRM
considers work groups, challenges and creativity on the job as motivators.

10. In PM improved satisIaction is considered to be the cause Ior improved perIormance but in
HRM it is the other way round (perIormance is the cause and satisIaction is the result).

11. In PM, employee is treated as an economic unit as his services are exchanged Ior
wages/salary. Employee in HRM is treated not only as economic unit but also a social and
psychological entity.

12. PM treats employee as a commodity or a tool or like equipment that can be bought and used.
Employee is treated as a resource and as a human being.

13. In PM employees are considered as cost centers and thereIore, management controls the cost
oI labor. HRM treats employees as proIit centers and thereIore, the management invests in this
capital through their development and better Iuture utility.

14. PM`s angle is that employees should be used mostly Ior organizational beneIits and proIits.
HRM angle emphasizes on the mutual beneIits, both oI employees and their Iamilies and also the
company.

15. PM preserves inIormation and maintains its secrecy. In HRM communication is one oI its
main tasks which take into account vertical, lateral and Ieedback type communication.
Differences between Human Resource Management (HRM) and Human Resource
Development (HRD)
1. HRM is a subset oI the entire management processes oI an organization. HRD is a subset oI
HRM.
2. Scope oI HRM is wider. Scope oI HRD as compared to HRM is narrower.
3. HRM manages and develops the human elements oI an organization in its entirety on longer
term basis. HRD Iocuses on those learning experiences which are organized Ior a speciIic period
to bring about the desired behavioral changes.
4. HRM emphasizes that employees, their abilities and their attitudes constitute an important
organizational resource that should be used eIIectively and eIIiciently to achieve organizational
as well as employees' goals. HRD emphasizes mainly on training and development oI
employees.
5. HRM takes decisions on HRD plans. HRD thus depends on the decisions oI HRM.
6. HRM at its center has HRD. HRD's cooperation is important Ior overall success oI HRM.
HRD has to work within the realm oI HRM and thereIore, it's objectives should be in tandem
with the broader objectives oI HRM. Thus, HRM and HRD are interdependent.
7. HRM takes care oI all the human needs and tries to satisIy these needs so that the employees
are motivated Irom all the angles to contribute their best to achieve organizational goals. HRD
Iocuses on upgrading the skills and competencies oI the employees in order to improve the
perIormance oI the employees on the job.
Defining Human Resource Management
This guide is based on Human Resource Management, 4th edition, by Alan Price and includes
links to extra articles, notes, tips and exercises.
Many people Iind HRM to be a vague and elusive concept - not least because it seems to have a
variety oI meanings. Pinning down an acceptable deIinition can seem like trying to hit a moving
target in a Iog. This conIusion reIlects the diIIerent interpretations Iound in articles and books
about human resource management. HRM is an elastic term (...). It covers a range oI applications
that vary Irom book to book and organization to organization. (...)
In Managing Human Resources. Personnel Management in Transition, Stephen Bach (2005:3)
argues that, compared to a decade ago, much oI the controversy about the definition oI HRM has
dissipated. He considers that, in part, this may be due to the use oI a broader and more
encompassing deIinition oI HRM. However, Bach (p.4) shows that the debate has not vanished
by disagreeing with Boxall and Purcell's (2003:1) statement that HRM reIers to:
"... all those activities associated with the management oI the employment relationship in the
Iirm. The term 'employee relations' will be used as an equivalent term as will the term 'labour
management'."
Bach argues that this deIinition is 'a little too broad', stating that such a broad deIinition makes it
diIIicult to:
O PlghllghL any dlsLlncLlve feaLures or values LhaL underpln P8M
O harL changes ln Lhe pracLlce of P8M
O DndersLand Lhe conLroversy surroundlng P8M
In Bach's opinion, HRM diIIers Irom employee relations in its Iocus on management practices
and tendency to ignore the interests oI employees. In Iact, he holds quite 'hard' views on the
nature oI HRM:
O P8M ls unlLarlsL (employer and employee lnLeresLs should colnclde) wlLh an emphasls on
organlzaLlonal effecLlveness
O @he lnLeresLs of oLher sLakeholders such as employees are marglnallzed
O @here ls a predomlnanL lnLeresL on Lhe lndlvldual flrm speclflcally Lhe flrm focused on
lndlvldual employee moLlvaLlon and asplraLlon
O @here ls a consequenL playlng down of exLernal and collecLlve (unlonlzaLlon) lssues
Human Resource Management, 4th edition discusses the use and meaning oI the term 'human
resource management', presents a number oI textbook deIinitions and provide a working
deIinition Ior the book:
'A philosophy oI people management based on the belieI that human resources are uniquely
important in sustained business success. An organization gains competitive advantage by using
its people eIIectively, drawing on their expertise and ingenuity to meet clearly deIined
objectives. HRM is aimed at recruiting capable, Ilexible and committed people, managing and
rewarding their perIormance and developing key competencies.'
Points to consider
ook at textbook deIinitions oI HRM. You should think about the purposes oI the deIinitions
and the diIIerent aims oI academics and practitioners. Academics are interested in the theoretical
basis and intellectual validity oI the concept. Practitioners have a job to get on with and are likely
to be more interested in a practical description oI the management discipline Ior which they are
responsible.
Selection Methods
Interviews - all types
Interviews can take many Iorms and styles. The type oI interviewing recommended throughout
the University is Criteria-Based Behavioural Interviewing. This type oI interviewing is based
around the criteria identiIied in the person speciIication the essential and desirable criteria. It is
thereIore really important to prepare a good person speciIication right at the start oI the
recruitment process.
It is also important to identiIy how each oI the criteria will be assessed. Some items in the
criteria e.g. a qualiIication, can be assessed by reIerence to the application Iorm, these can be
called the 'hard or Iactual criteria and can usually be assessed on the application Iorm or c.v.
Other criteria, e.g. interpersonal skills, which can be called 'soIt criteria can only be assessed
through an interview. By clearly identiIying your criteria on the person speciIication and how
you intend to assess each oI these, you will ensure that you are:
O Lhoroughly checklng each candldaLe agalnsL Lhe rlghL crlLerla
O able Lo plan Lhe whole process Lo lnclude any LesLs eLc
O falrly applylng Lhe crlLerla Lo each candldaLe
O able Lo dlscrlmlnaLe falrly beLween candldaLes
O noL mlsslng an lmporLanL aspecL of Lhe requlremenLs
The interview will tend to concentrate thereIore on the soIt criteria, though you will also be
checking to make sure the candidate does possess the 'hard data they have claimed in their
application.
The interview will Iollow a structure and should be planned and prepared in advance. For more
inIormation on interviewing, you should really attend the training course.
few general tips on interviewing are included below:
Purpose of an Interview:
oes candldaLe meeL person speclflcaLlon knowledge skllls experlence personal quallLles
behavlours?
2 oes candldaLe know enough Lo declde Lhls ls rlghL [ob and organlsaLlon for Lhem? (so Lhey sLay)
Cood lmpresslon of DnlverslLy? (even lf noL successful)
eneral principles of Criteria-Based Bebavioural Interviews
8ecrulL for aLLlLude Lraln for skllls
2 8esL lndlcaLor of fuLure behavlour ls pasL behavlour
Lvldencebased approach
4 8ased on Lhorough person speclflcaLlon
3 8elaxed buL noL lnformal formaL
6 andldaLe sLreLched noL sLressed
7 roblng quesLlons noL personal
8 o noL reveal personal vlews
ood Interviews sbould:
8e frlendly
2 SLreLch Lhe candldaLe
Make Lhe candldaLe work/Lhlnk hard
4 Should cover a loL of ground
3 8eally LesL Lhe candldaLes skllls
6 8e very Lhorough
7 8e 80 Lo 90 of candldaLe Lalklng
Common Issues of Poor Interviews:
nLervlewers Lalked Loo much 30 or more
2 nLervlewers read ouL Lhelr quesLlons
CuesLlons long and complex
4 nLervlewers dld noL probe
3 andldaLes noL glven an opporLunlLy Lo expand answers
6 nLervlew flnlshed Loo qulckly (before scheduled Lo flnlsh)
7 nLervlewer dld noL make much eye conLacL
8 nLervlewer shuffllng papers (obvlously has noL read cv prlor Lo lnLervlew)
ints and Tips - Do's
repare room for candldaLes comforL eg llghL heaL
2 repare yourself eg read cvs agaln
repare quesLlons ln advance
4 Dse a prepared openlng
3 Dse pauses and sllence
6 Cpen quesLlons Lo sLarL
7 @ry Lo move smooLhly from Loplc Lo Loplc
8 Ask one quesLlon aL a Llme
9 Avold [argon
0 @ry Lo look lnLeresLed!
MalnLaln eye conLacL
2 keep noLes Lo mlnlmum buL regular
Cffer candldaLe Lhe opporLunlLy Lo ask quesLlons
ints and Tips - Don'ts
on'L accepL gllb answers make sure you probe f Lhey say Lhey are good aL someLhlng how
do Lhey know? WhaL evldence can Lhey glve you LhaL Lhls ls Lrue?
2 on'L do mosL of Lhe Lalklng you only collecL evldence when Lhe candldaLe ls Lalklng
on'L reacL vlolenLly Lo anyLhlng sald eg suddenly wrlLe a reply down when you have noL Laken
any oLher noLes
4 on'L crlLlclse or argue or dellberaLely provoke Lhe candldaLe Lhls sLyle of lnLervlewlng relles
on a good rapporL Lo relax Lhe candldaLe so LhaL you can see Lhem as Lhey really are DpseL Lhe
rapporL and Lhey wlll noL behave ln Lhelr normal way
3 Lose eye conLacL wlLh Lhe candldaLe geL colleagues Lo Lake noLes from your quesLlons so LhaL
you can keep Lhe rapporL
Typical Interview Plan
nLroducLlon
2 8road quesLlons galn sufflclenL undersLandlng of experlence and background
rlLerlabased quesLlons from erson SpeclflcaLlon
4 lollow up problng quesLlons noL scrlpLed buL from candldaLes responses
3 Lach panel member Lo have asslgned crlLerla
6 halr Lo mop up" lf noL enough searchlng quesLlons
7 andldaLes ask quesLlons
8 Sell" [ob DnlverslLy rewards and Lerms and condlLlons
9 lose
sing tbe Interview ssessment rids
-oL [usL bureaucracy
2 Dse as a Lool Lo help dlscusslon/declslon
ompleLe Lhe person crlLerla before you seL quesLlons and before Lhe lnLervlew aL shorL llsLlng
sLage
4 SeL your sLandards for each of Lhe key person crlLerla (eg good communlcaLlon skllls) before you
lnLervlew Lvery person speclflcaLlon has communlcaLlon skllls as an lmporLanL crlLerla buL whaL
does lL mean ln your [ob ls lL passlng slmple lnformaLlon Lo slngle enqulrers explalnlng
complex lnformaLlon Lo groups of people or persuadlng and lnfluenclng governmenL
deparLmenLs Lo change Lhelr pollcles?
3 Share Lhls undersLandlng wlLh Lhe panel
6 Lach panel member should assess each candldaLe separaLely and Lhen ln plenary
7 8emember you should be looklng for a body of poslLlve and conLrary evldence for any crlLerla
noL relylng on a slngle plece of evldence
t tbe end of every interview: Did it go well, did you give tbe candidate every opportunity to
state tbeir case?
WhaL was Lhe openlng llke?
2 Pow was my rapporL and body language wlLh Lhe candldaLe
WhaL dld learn from Lhelr body language?
4 ld Lhe quesLlons work were Lhey clear and unamblguous?
3 ld we probe well?
6 ld we geL Lhe evldence we needed?
7 Were all Lhe crlLerla covered?
8 WhaL was Lhe close llke were Lhe nexL sLeps clear?
Presentations
Presentations can be used in a variety oI ways depending on how they relate to the job
description and the normal working practices expected oI the post.
Example 1: Ior a post which is required to respond to a committee or the public in a very short
timescale given a Iew Iacts, candidates could be asked to simply arrive early to the interview, be
quickly brieIed and given halI an hour to prepare a 5 minute presentation, and deliver it orally
with no supports.
Example 2 : However, iI the job requires a person to take time to prepare and deliver lectures oI
say 45 minutes, they would normally have time to prepare properly, so it would be unreasonable
to give them the same task as the one above. They should receive the topic well in advance and
have time beIorehand to prepare their delivery.
In assessing presentations, it is important to have the decided on the criteria against which each
candidate will be marked. These could include criteria which will also be assessed at interview,
but may take on a particular aspect e.g. communications skills could be assessed in the
interview but will be mainly looking at how the person communicates with the panel and gets
their points across, as well as how they interact with the members oI the panel. In a lecture style
presentation, the candidates` communications skills to a large group will be assessed, which is
much more Iormal delivery.
Other criteria can be assessed in the presentation ability to assimilate inIormation quickly could
be included in Example 1 but not in 2. Strategic perspective skills might be included iI the topic
allows it. Judgement and selI conIidence could also be assessed through a presentation.
For the panel oI interviewers, it is important that they attend all the presentations iI possible. II
others are involved in assessing e.g. an audience Ior a lecture presentation, then the audience
should be allowed to provide their views to the panel to make the process worthwhile. This may
be done by asking the audience to email to one person on the panel, giving the audience a
Iramework Ior their comments. This may not mean speciIying all the criteria to them but perhaps
asking them to comment on tone, delivery, content, suitability, interest, enthusiasm etc.
Finally, the panel should be prepared to give Ieedback on candidates` presentations.
Tests
It is possible that when deIining the person speciIication criteria that some criteria prove hard to
assess either through the application Iorm or c.v., or via the interview. For example, iI some IT
skills are needed Ior the posts, such as Access database skills, how will you know that the
candidates meet the standard that you are expecting in the job? A candidate can tell you or write
down that they have these skills, and even describe how they use the system, but it is hard to be
sure. II this is an important part oI the role, it may be worth using a test. In this case, the
recruitment advisor could assist you in developing a test to be used as part oI the shortlisting
process, perhaps to reduce a Iield oI 12 candidates to 4 or 5 Ior interviews.
There are also tests e.g. numerical reasoning, verbal reasoning, critical thinking, manual
dexterity which can be bought oII the shelI. We do not currently stock these but can access and
deliver them on your behalI.
Psycbometric tests
These are particularly useIul iI you want to assess candidates Ior managerial or senior
appointments or candidates Ior appointments where there is a special need Ior the post - such as
strong relationship building skills. These types oI test are especially good at assisting with
assessing how candidates are likely to behave, Ior example, towards a manager, towards their
peers, and towards their subordinates. They will oIten provide a proIile which should be
discussed with the candidate to check validity, as they are selI perception questionnaires.
Candidates should also be given Ieedback on the proIile. The proIile should be a part oI the
assessment, contributing perhaps up to 10 towards the Iinal decision. They should be used
careIully as they need to be used in the right way by properly trained assessors.