HUMAN

RESOURCE
MANAGEMENT
MODULE 1
 Introduction
Human Resource
Management
 ATTRACTING

 MANAGING

 MOTIVATING

 DEVELOPING EMPLOYEES
“ If you want 10 days of happiness, grow
grain. If you want 10 years of happiness,
grow a tree. If you want 100 years of
happiness , grow people”.
Organizations require many things in order to be
effective: a method of producing, a way of
marketing whatever product or service is created,
and human resources. While all of these things
are important to organizational effectiveness, the
only factor that represents a potential
competitive advantage is human resources
and how these resources are managed.
 Human Resources are the most
valuable and unique assets of an
organization.
 The successful management of an
organization’s human resources is an
exciting, dynamic& challenging task
especially at a time when the world
has become a global village .
 Meaning of HUMAN
RESOURCES
The total knowledge, skill,
creative abilities, talents and
aptitudes of an organization’s
workforce, as well as the value,
attitudes and beliefs of the
individuals involved.
WHAT IS HUMAN RESOURCE
MANAGEMENT?
 Human resource (HR)
management refers to the practices
and policies you need to carry out
the personnel aspects of your
management job, specifically,
acquiring, training, appraising,
rewarding, and providing a safe and
fair environment for your company’s
employees.
 HRM is a Management function that helps
managers recruit, select, train & develop
members of an organization. It is concerned
with people’s dimension in organizations.
 HRM is one of the functional areas of
management and it has replaced the term
‘personnel Management’.
 It represents a new model of management
with a different value system.
 It is based on ideas and techniques
developed to enhance worker motivation,
productivity & performance.
Definition:

Human Resource Management is

defined as a strategic and coherent
approach to the management of an
organization’s most valued assets –
the people working there who
individually and collectively
contribute to the achievement of its
objectives.
 Why Is HR Management
Important to All Managers?
Personnel mistakes you don’t want to make -
 Hiring the wrong person for the job

 Experiencing high turnover

 Finding employees not doing their best

 Having your company taken to court because of

your discriminatory actions
 Having your company cited under federal
occupational safety laws for unsafe practices
 NATURE OF HRM
HRM is concerned with the people’s dimension in
organizations.
- It is people who staff and manage organizations
- HRM involves the application of management
functions and principles.
- Decisions on different aspects of employees must
be consistent with HR decisions.
- Decisions must influence the effectiveness of the
organizations which must result in betterment of
services to the customers.
- HRM functions not confined to business
establishments only. They are applicable to non-
business organizations too.
 SCOPE OF HRM

Control: Acquisition:
HR Audit HR Planning,
HR Accounting Recruitment ,
HRIS Selection, Placement.

HRM

Maintenance:
Remuneration, Development:
Motivation, Training, Career
Health & Safety Development,
Social Security, Organization
Industrial Relations Development,
Performance Appraisal Internal Mobility
 HUMAN RESOURCE
DEVELOPMENT
 It is a process of improving, moulding
and changing the skills, knowledge,
creative ability, aptitude, attitude,
values commitment, etc., based on
present and future job and
organizational requirements.
 Scope of HRD

CAREER PLANNING & PERFORMANCE

DEVELOPMENT APPRAISAL

ORGANIZATION
CHANGE
HRD TRAINING

ORGANIZATION MANAGEMENT
DEVELOPMENT DEVELOPMENT
1.Performance Appraisal: It is the systematic
evaluation of individuals with respect to their
performance on the job and their potential for
development.
2. Training: It is a process of imparting the
employees the technical and operating skills
and knowledge.
3. Management Development: It is the
process of designing and conducting suitable
executive development programs so as to
develop the managerial and human relations
skill of employees.
4. Career Planning and development: It
is the planning of one’s career and
implementation of career plans by
means of education, training, job
search and acquisition of work
experiences.
 Features of HRM

 HRM is concerned with employees both as

individuals and as a group in attaining
goals
 Is concerned with the development of
human resource
 HRM covers all levels(top, middle, low) and
categories (unskilled, skilled, technical,
professional) of employees
 It appeals to the employees in all types of
organizations in the world
 Is a continuous never ending
process
 Integrated approach aiming at
attaining goals of individuals,
organisations & society
 Is concerned with managing
Human Resource at work
 Central subsystem of an
organization
 Aims at securing unreserved
cooperation from all employees
 Functions of HRM
Managerial Functions
 Planning: It is a pre-determined course of
action. Planning is future oriented concerned
with clearly charting out the desired direction of
business activities in future. Forecasting is one
of the important elements in the planning
process. Other functions of managers depend
upon planning function.
 Organising: It is a process by which the
structure and allocation of jobs are determined.
It involves giving each subordinate a specific
task, establishing departments, delegating
authority to subordinates, establishing channels
of authority and communication, coordinating
the work of subordinates.
 Staffing: This is a process by which managers select, train,
promote and retire their subordinates. This involves
deciding what type of people should be hired, recruiting
prospective employees, selecting employees, setting
performance standards, compensating employees,
evaluating performance, counselling employees, training
and developing employees.
 Directing: It is the process of activating group efforts to
achieve the desired goals. It includes activities like getting
the subordinates to get the jobs done, maintaining morale,
motivating subordinates, etc for achieving the goals of the
organisation.
 Controlling: It is the process of setting standards
for performance, checking how actual performance
compares with these set standards, and taking
corrective actions as needed.
OPERATIVE FUNCTIONS
 Employment: It is concerned with procuring right
kind of people in appropriate number to be placed
necessary to achieve the organizational objectives.
It covers functions such as
- Job analysis: It is the process of study and
collection of information relating to the operations
and responsibilities of a specific job.
- Human Resource Planning: It is a process for
determination and assuring that the organization will
have an adequate number of qualified persons,
available at proper times, performing jobs which would
meet the needs of the organization.
- Recruitment: It is the process of searching for
prospective employees and stimulating them to apply
for jobs in an organization.
- Selection: It is the process of ascertaining the
qualifications, experience, skill, knowledge, etc of an
applicant with a view to appraising his/ her suitability to
a job.
- Placement: It is the process of
assigning the selected candidates with
the most suitable job in terms of job
requirements. It is process of matching
employee specifications with job
requirements.
- Induction and Orientation: These are
the techniques by which a new employee
is rehabilitated in the changed
surrounding and introduced to the
practices, policies, purposes and people,
etc of the organization.
 Human Resource Development: It is
the improving, moulding and changing
the skills, knowledge, creative ability,
aptitude, attitude, values, commitment,
etc, based on present and future job and
organizational requirements.
- Performance Appraisal: It is the
systematic evaluation of individuals with
respect to their performance on the job
and their potential for development.
- Training: It is the process of imparting the
employees the technical and operating skills and
knowledge.
- Management Development: It is the process
of designing and conducting suitable executive
development programs so as to develop the
managerial and human relations skill of the
employees.
- Career Planning and Development: It is the
planning of one’s career and implementation of
career plans by means of education, training, job
search and acquisition of work experience.
- Organization Development: It is a planned
process designed to improve organizational
effectiveness and health through modifications in
individual and group behavior, culture and systems
of the organization using knowledge and
technology of applied behavioral science.
 Compensation: It is the process of providing
adequate, equitable and fair remuneration to the
employees. It includes job evaluation, wage and
salary administration, incentives, bonus, fringe
benefits, social security measures.
 Maintenance: It is concerned with protecting
and promoting employees while at work. For
this purpose, various benefits such as housing,
medical, educational, transport facilities, etc
are provided to the employees. Several
security measures like provident fund,
pension, gratuity, group insurance, etc are
also arranged.

It is important to note that the

managerial and operative functions of
HRM are performed in conjunction with
each other in an organization, be large or
small organizations.
 Objectives of HRM
 To create and utilize an able and
motivated workforce
 To establish and maintain sound
organizational structure and desirable
working relationships
 To secure the integration of individuals
and groups with the organization
 To create facilities and opportunities
for individual or group development
 To attain effective utilization of human
resources
 To identify and satisfy individual and group
needs
 To maintain high employee morale and sound
human relations
 To strengthen and appreciate the human
assets continuously
 To provide an opportunity for expression and
voice in management
 To provide fair, acceptable and efficient
leadership.
 To provide facilities and conditions of work
and creation of favorable atmosphere.
 Objectives of HRM

Social Objectives

Organisational Objectives

Functional Objectives

Individual Objectives
 Social Objectives
- Supportive Functions

 Legal Compliance

 Benefits – in monetary terms

 Union-management relations
 Organizational
Objectives
-Supportive Functions
 HR Planning

 Employee relations

 Selection

 Training and Development

 Functional Objectives
- Supportive Functions
 Appraisal

 Placement

 Assessment
 Individual Objectives
- Supportive Functions
 Training and Development

 Appraisal

 Placement

 Compensation

 Assessment
HRM Policy:
a set of proposals and actions that act as a
reference point for managers in their
dealings with employees. Personnel policies
guide the course of action intended to
accomplish personnel objectives.
Ex: One of the personnel objectives of
Indian Railways is to provide equal
employment opportunities to the people of
minority sections.
HRM Procedure:
 a well thought out course of action. It
prescribes the specific manner in which
a piece of work is to be done.
 Procedures are called “action
guidelines”. They are generally derived
from the policies.
 Policies define a broad field , procedures
show a sequence of activities within that
area.
 The basic purpose is to spell out clearly
the way one is to go about doing
something.
 Need for HRM Policies
 Consider the favoritism & discrimination in
treating the employees
 Minimise favoritism and discrimination in
treating the employees.
 Ensure that the action will be continued though
the managers in keys jobs.
 Have standards of performance.
 Create and develop employee enthusiasm and
loyalty.
 Advantages of HRM
Policies
 Delegation
 Uniformity
 Better Control
 Standards of Efficiency
 Confidence
 Speedy decisions
 Co-ordinating devices
 Characteristics of a Sound
HR policy
 Related to Objectives
 Easy to understand
 Precise
 Stable as well as flexible
 Based on facts
 Appropriate number
 Just, fair and equitable
 Reasonable
 Review
ORGANIZATION OF
HRM
 Manager
Personnel

Dpty Mgr Dpty Mgr Dpty Mgr Dpty Mgr Dpty Mgr
EmploymentSalary&Benefits HRD Indl Rel Orgnal Climate

Asst Mgr Asst Mgr Asst Mgr

Training Exctv Dvpmnt Career Plng &Dvpt

Persnl Officer
Persnl Officer Senior
Junior

Divisonal Mgr - Personnel

Dpty dvsnl mgr- Dpty dvsnl mgr-

Employment Indl Relations

Branch Personnel Officer

Line Versus Staff
Authority
 Authority is
the right to
make decisions,
to direct the
work of others,
and to give
orders
 Line Versus Staff
Authority
 Line  Staff
managers are managers
authorized to assist and advise
direct the work of line managers in
subordinates accomplishing
these goals
 in charge of
accomplishing the
 HR managers are
organization’s generally staff
basic goals managers
 Line Managers’ H R
Responsibilities
 Placing the right person in the right job
 Starting new employees in the organization
 Training employees for jobs that are new to them
 Interpreting the company’s policies and
procedures
 Controlling labor costs
 Protecting employees’ health and physical
conditions
Human Resource
Department’s
Management
Responsibilities
 Advice and counsel: The H R manager serves as an in-
house consultant to supervisors, managers and executives.
They can be an invaluable resource for decision making. H
R managers are also being relied on more heavily to advise
compensation committees.
 Service: H R managers perform a host of service
activities such as recruiting, selecting, testing, planning
and conducting training programs and hearing employee
concerns and complaints. Managers must be convinced
that the HR is there to help them increase their productivity
rather than impose obstacles to their goals. This requires a
skill on the part of HR to communicate with the managers
as well as executives.
 Policy formulation and implementation: HR
managers generally propose and draft new policies or
policy revisions to cover recurring problems or to
prevent anticipated problems. These are proposed to
the senior executives. However, HR may monitor the
performance of line and staff departments to ensure
conformity with the established HR policies, procedures
and practices.
 Employee Advocacy: H R managers serve as an
employee advocate, that is, listening to employee’s
concern and representing their needs to the managers.
Effective employee relations provide a support
structure when disruptive changes interfere with
normal daily activities.
 Role of Human Resources Manager

1) Conscience Role
2) The Counselor
3) The Mediator
4) The Spokesman
5) The Problem Solver
6) The Change agent
Personnel Welfare
Role Role

Role of Personnel
Manager

Clerical Fire-Fighting
Role Role
 Role of Personnel Manager
Personnel Role
a) Advisory
b) Manpower Planning
c) Training & Development
d) Measurement & assessment of
individual and group behavior
 Qualities of a HR
Manager
 Fairness and Firmness: HR should be
fair in matters of promotions, demotions,
transfers, layoffs, and be firm in enforcing
discipline.
 Tact & Resourcefulness: HR must be
tactful in dealing with difficult situations
Tact implies determining what is good and
fair in trying conditions, and skill in
dealing with the most demanding
situations.
 Knowledge of labor & other items: HR must possess a
sound knowledge of the constitution and other acts that
influence labor interests. HR must be aware of the
government’s policy towards labor and general economic
conditions prevailing at a given time.
 Broad Social Outlook: Social Responsibility of business is
a topic much discussed these days. It is desirable that the
HR has a social outlook and contributes towards the
betterment of quality of life of the employees and those
who live around and beyond the company.
 Competence to perform: HR must
have the competence to perform
activities relating to personnel better
than his/her subordinates. His/her
confidence would equip to face
adverse situations with courage.
 Factors affecting HRM
 Technological factors: Technological change has
led to change in the demand for skilled candidates. It is
found that procurement of skilled employees and their
increase in the numbers to match the changing job
requirement has become a complicated task.
 Structure, values and education in a
country:
- Structure: The structure of employment has changed due
to the entrance of workforce from different backgrounds.
Organizational workforce is composed of people from
different regions, due to increased transportation facility
and mobile character of people.
- Employee Values: Earlier the management
decided and the employees had to follow
obediently. But gradually, this relationship has
been replaced by the relationship where
employees and management are partners.
- Even though there are good inputs of new
values like emphasis on quality of life, work life
balance, equality in gender, participation
authority, fringe benefits, etc are provided,
there has been negative change in values like
decline in work ethics.
- Education: Increased formal
education has led to the changes in
the attitude of employees. The well
educated employees always
challenge and question the
management’s decision and want a
voice in company affairs affecting
their interest. Increased level of
education has also increased the
level of expectation from both
employers and employees.
 Legal and government factors:
- To mention a few important legislations affecting HRM
are Factories Act, Trade Unions Act, The Payment of
Wages Act, The Minimum Wages Act, The Employees
State Insurance Act, Workmen’s Compensation Act,
The payment of Bonus Act, and so on.
 Employee’s Organization: These are power
blocks in several countries including India. The issues
related to employees are discussed with these unions.
 Customers
 Social Factors
 Economic Factors
 Political Factors

Considering the complexities and the

challenges in the HRM, the management
has to develop sophisticated techniques
and efficient specialists to manage the
personnel on sound lines.
Meeting Present
and Emerging
Human Resource
Challenges
 Key HR Challenges for
Today’s Managers:
Environmental
 Rapid change
 Workforce diversity
 Globalization
 Internet revolution
 Legislation
 Evolving work and family roles
 Skill Shortages
 Rise of the service sector
 Key HR Challenges for
Today’s Managers:
Organizational
 Quality, distinctive capabilities
 Decentralization
 Downsizing
 Organizational restructuring
 Self-managed work teams
 Small business growth
 Technology
 Outsourcing
 Key HR Challenges for
Today’s Managers: Cultural
 Basic assumptions and beliefs
shared by members of an
organization…
 rules, norms
 behaviors
 philosophy
 dominant values
 feeling or climate
 Key HR Challenges for
Today’s Managers: Individual

 Matching people and organizations

 Ethical dilemmas
 Social responsibility
 Productivity
 Empowerment
 Brain drain
 Job insecurity
 Challenges in HRM
 Going Global
 Embracing new technology
 Managing change
 Managing talent
 Responding to market
 Managing the Vision
 Building Organizational capability
 Managing Human Relations
 The word ‘strategy’, deriving from the Greek noun strategus,
meaning ‘commander in
 chief’, was first used in the English language in 1656. The
development and usage of
 the word suggests that it is composed of stratos (army) and
agein (to lead). In a
 management context, the word ‘strategy’ has now replaced the
more traditional
 term – ‘long-term planning’ – to denote a specific pattern of
decisions and actions undertaken by the organization in order to
accomplish performance
goals
 Strategic HRM
 Strategic human resource
management is the process of
linking the human resource
function with the strategic
objectives of the organization in
order to improve performance.
 Human Resources as a
Strategic Partner
 Although many HR functions have
begun to play a strategic role in
guiding succession management,
knowledge retention, and other
enterprise-wide initiatives, there is
still opportunity for such functions to
improve and truly transform key
influencers and decision-makers .
 The pressing need for organizations to
maintain a diverse pool of talented
leaders, capture expertise from exiting
employees, and outsource transactional
activities to focus on core capabilities
has heightened the importance of the
HR function.
 The corporate HR function sets the
strategic tone and provides specialized
knowledge and direction while HR
generalists implement and adapt to fit
the needs of specific business groups.
 A healthy tension exists between the policy directives
determined by corporate HR and the diverse needs of
various business units, but the best practitioners are able to
achieve a healthy balance because of their deep
understanding of current HR practices, corporate strategy
and divisional business objectives.
 For example, at Texas Instruments (TI) the
leadership and HR have engaged in a strategic
initiative aimed at reducing the costs of
turnover and low morale resulting from
expansion and contraction associated with the
business cycle by using outsourced workers to
provide a more flexible work force.
For HR to be an effective strategic partner in any
organization, the HR professionals must understand
two things:
The business of the business and
Knowledge of the business, support for the
strategy, and the ability to translate every activity to
strategic objectives undergird the success of our best
practice leaders
HR work begins with the business, not HR.
Another aspect of becoming a strategic partner
with the business is demonstrating support for
organizational/business strategies through
alignment with those strategies. Such
alignment puts HR in a better position to
deliver value, which thereby demonstrates
credibility
 Key questions to ask to ensure that HR is a key player
in the organization’s strategic process include the
following:
 What organizational capabilities must our
organization have to gain and/or maintain a
competitive advantage?
 What abilities do HR personnel need so that they can
understand and respond to short-term and long-term
market demands?
 How do we organize HR activities to deliver
maximum value?
 How do we create an HR strategy that sets an agenda
for how HR will help our company succeed?
 Personnel vs. HRM