INTRODUCTION TO HRM

OVERVIEW
 LEARNING OBJECTIVES

 What is PM/HRM?
 What are the objectives of PM/HRM?
• What is unique about HRM?
• HRM stakeholders……………
 Distinction between PM & HRM
• Evolution of HRM in Bangladesh
• Who completes HR tasks?
• HRM Model
 Key activities of human resources
• Responsibility for HRM
• Line vs. Staff authority
• Prospects of HR manager
 Outstanding personal qualities
 WHAT IS HUMAN RESOURCE MANAGEMENT?

“HRM is the function performed in the

organizations that facilitates the most effective
use of people to achieve organization and
individual goals”.

HRM is the process of managing people in

organizations in a structured and thorough
manner.
 WHAT IS HUMAN RESOURCE MANAGEMENT?
According to American Management Association:

Human Resource Management is that field of

management which has to do with planning, organizing
and controlling various operative functions of procuring,
developing, maintaining and utilizing a work force in order
that-
(a) the objectives for which the company is established
are attained as efficiently and economically as possible;
(b) the objectives of all levels of personnel are served to
the highest degree; and
(c) the objectives of the community are duly considered
and served.”
 Definitions of HRM
• “HRM is the function facilitating the most
effective use of people to achieve both
organizational and individual goals”

• “HRM is that field of management which deals

with planning, organizing & controlling the
functions of procuring, developing, maintaining
and utilizing a labor force such that
organizational & individual goals are fulfilled”
•Today’s organizations constantly mould itself to meet
the business challenges despite economic, political and
social patterns in which it exists.
•The efforts made by organizations to sustain business
metrics like revenue, profits and growth, market share is
possible only through the people in the organization who
work towards making this happen within the enterprise.
•According to Fisher, Schoendfelt and Shaw in their
book “Human Resources Management,“ HRM involves
all management decisions and practices that directly
affect or influence the people or Human resources who
work for the organization”
 Total Knowledge

Attitudes skills

Human
Resources
Belief of
value individual
involved

Talents Creative abilities

OBJECTIVES OF HRM
 OBJECTIVES OF HRM

 It is concerned with the optimum utilization of

the human resources within and organization.
PERSONAL
 It is concerned with the creation of conditions
in which each employee is encouraged to
make his best possible contribution to the
effective working of the undertaking.
 It is also concerned with the development of
the sense of mutual respect and trust between
management and workers through sound
relations.
 It endeavors to increase the productive
efficiency to the workers through training,
guidance and counseling and
 It tries to raise the morale of the employee.
 OBJECTIVES OF HRM

• To recognize the role of HRM in

bringing about organizational
ORGANIZATIONAL effectiveness.
• HRM is not an end itself. It is
only a means to assist the
organization with its primary
objectives.
• Simply stated, the department
exist to serve the rest of the
organization.
 OBJECTIVES OF PM/HRM

• To be ethically and socially responsible

to the needs and challenges of the
SOCIETAL society while minimizing the negative
impact of such demands upon the
organization.
• The failure of organizations to use their
resources for the society’s benefit in
ethical way may lead to restrictions.
• For example, the society may limit HR
decisions through laws that enforce
reservation in hiring and laws that
address discrimination, safety or other
such areas of social concern.
 Scope of HRM

1. Personnel • HRM is concerned with manpower planning, recruitment, selection,

placement, transfer, promotion, training and development, layoff
Aspect- and retrenchment, remuneration, incentives, productivity etc.

• It deals with working conditions and amenities such as canteens, rest

2. Welfare and lunch rooms, housing, transport, medical assistance etc.
• It includes wide array of responsibilities and services like safety

Aspect- services, health services etc.

• It is about determining employee’s real needs and fulfilling them with
active participation of both the mgt and the employees.

3. Industrial • IR is an art and science of understanding the union management

relations, joint consultation, collective bargaining, grievance and

relations disciplinary procedures, settlement of disputes, etc

• The main aim is to safeguard the interest of employees by securing
the highest level of understanding to the extent that does not leave a
Aspect- negative impact on the organization.
 Importance of HRP
The importance of HRs can be discussed at four levels :-

1.Significance for an organization :-The achievement of

organizational goals can be achieved through the following:-
• Attracting and retaining the required personnel.
• Developing the necessary skills and right attitudes among
employees.
• Full utilization of the available human resources
• Securing willing cooperation of employees through motivation,
participation, grievance handling.
2.Professional significance:-It helps to improve the quality
of work life. It is providing opportunities for personal
development of each employee and maintains healthy
relationship among individuals.
•It also contribute in developing those talent in organization and
bring about efficiency and effectiveness of work through human
resources development.

3. Social significance:- It helps to enhance the dignity of

labor in the following;-
• Provides suitable employment that increase psychological
satisfaction to people.
• Maintaining the balance between the jobs available and the job
seekers in terms of numbers and qualifications, needs and
aptitudes
4. National significance:- It also plays a vital role in the
development of nation. The effective exploitation and utilization
of a nation’s natural physical and financial resources require an
efficient and committed manpower. HRM helps to speed up the
process of economic growth which in turn leads to higher
standards of living and provides employment.
 WHAT IS UNIQUE ABOUT HRM?

HR is multidisciplinary:
• It applies the disciplines of Economics (wages,
markets, resources), Psychology (motivation,
satisfaction), Sociology (organization structure,
culture) and Law (Maternity Benefit Act, Min.
Wage Act, Factories Act, IRO, etc.).

• HR is embedded within the work of all managers,

and most individual contributors due to the need
of managing people (subordinates, peers and
superiors) as well as teams to get things done.
 DISTINCTION BETWEEN
PERSONNEL MANAGEMENT (PM) & HUMAN RESOURCES MANAGEMENT (HRM)

Dimension PM HRM

Perspective Short-term perspective Long-term perspective

Control External control Self-control

Perception Pluralist perspective A utilitarian

perspective
Role Specialist role Strategic role

Outlook Cost-minimization Maximum utilization

 DISTINCTION BETWEEN PERSONNEL MANAGEMENT &. HRM (CONT’D)

Dimension PM HRM

Employment contract Careful delineation of Aim to go beyond

written contracts contract

Rules Importance of Can do outlook,

devising clear rules impatience with rule

Guide to management Procedures Business need

action

Behavior referent Norms/customs and Values/mission

practices

Managerial task vis-à- Monitoring Nurturing

vis labour
 DISTINCTION BETWEEN PERSONNEL MANAGEMENT &. HRM (CONT’D)

Dimension PM HRM
Job design Division of labor Team work
Conflict handling Reach temporary truce Manage climate and
culture
Training and Controlled access to courses Learning organizations
development
Respect for Labor is treated as a tool People are treated as
employees which is expendable and assets to be used for the
replaceable benefit of an organization
Shared interests Interests of the organization Mutuality of interests
are uppermost
Evolution ‘Employee advocate' ‘Member of the
management team'
• Human resource management involves blending the
traditional administrative functions along with the changing
concepts of employee welfare in the organisation.
• The retention of employees is dependent on how they are
perceived and treated in the organisation based on their
performance, abilities and skills. • The extent of activities
carried out by the HR is dependent on the size and scope of
the organisation, the nature of operations and the attitude of
management towards the employees. • HRM functions can
be broadly classified into the following two categories: •
Managerial functions • Operative functions • Advisory
functions
 • It’s the process of thinking about & organizing the
activities required to achieve a desired goal.
Planning • Example : To prepare agenda for a program gram

• Organizing effective management is crucial for

nearly all large organizations & generally valuable
Organizing for those of any size.

• It is the process of obtaining and maintaining

capable and competent personnel in various
positions at all levels, i.e.manpower planning,
Staffing recruitment, selection, placement and induction.
 • It is said to be a process in which the managers instruct ,
guide and oversee the performance of the workers to
Directing achieve predetermined goals.

• It helps to check the errors and to take the corrective action

so that deviation from standards are minimized & stated
Controlling goals of the organization are achieved in a desired manner.
• Operative functions of HR department: Operative functions of
HR department are those core functions that only the HR
department is assigned to perform. These functions are:
Employment Employment is the first operative function of HRM.
This involves procuring and employing individuals with suitable
knowledge, skills, experience and aptitude necessary to
perform various jobs. The various functions of employment are: •
Job analysis • HR planning • Recruitment • Selection • Placement
• Induction
• It is the process of obtaining and maintaining capable and
competent personnel in various positions at all levels,
i.e.manpower planning, recruitment, selection, placement and
induction.to achieve a desired goal. Example : To prepare
agenda for a program gram

• It helps to check the errors and to take the corrective action so

that deviation from standards are minimized & stated goals of
the organization are achieved in a desired manner.
 WHO COMPLETES HR TASKS?

• Line Managers
• Human Resource
Managers
• Shared Service Centers
• Outsourcing Firms
• Technology interfaces
 HRM MODEL

Current Context Organizational Strategies Organizational Culture:

(Political Climate, Gov’t and Structure: Goals, Mission and Vision,
Laws, Economy, etc.) Organizational chart Informal Procedures

Human Resource Functions

Plan for Future Recruitment and

Human Resource Selection
Needs Policies

Training and Salary, Benefits,

Development Bonus System

Performance
Management

Review & Evaluation of Human

Resource Activities
 KEY ACTIVITIES OF HUMAN RESOURCES

• Human Resource Planning

• Human Resource Policies
• Salary and Benefit Administration
• Human Rights and Labour Laws
• Recruitment, Selection and Orientation
• Performance Management
• Training and Staff Development
• Communications and Counselling
 RESPONSIBILITY FOR HRM

• The responsibility for human resource management

activities rest with each MANAGER.

• If a MANAGER does not accept this responsibility

then HR activities will only partially get done.

• HR department provides strategies, systems, tools

and support to Managers to ensure effective staff
management!
 LINE vs. STAFF AUTHORITY

• Authority: The right to make decisions, direct other’s

work, and give orders.

• Line manager: A manager who is authorized to

direct the work of subordinates and responsible for
accomplishing the organization’s goals.

• Staff manager: A manager who assists and advises

line managers. HR managers are generally staff
managers.
 PROSPECTS OF HR MANAGER

• “Personnel is the fast track to the

top” and “Human Resource
Director are the new corporate
heroes”.
• It is said that in the years to come,
a tour of duty in the Human
Resource Department will be
mandatory for any executive in
Bangladesh who aims to be
Chairman or Chief Executive
Officer.
 OUTSTANDING PERSONAL QUALITIES

 A lively intelligence
The personal function demands a marked degree of
analytical ability and great resourcefulness. Good judgment,
intellectual honesty, alertness and keen perception are also
ranked high among the desirable mental traits.

 A high degree of freedom from bias

To be truly effective, personnel management requires of its
practitioners an impartial, objective attitude toward
management, toward the workers & toward the society. The
personnel managers’ plans, his decisions, his counsel – all
must be dictated by the total requirements of the situations.
This implies sincerity, fearlessness, and above all honesty.
 OUTSTANDING PERSONAL QUALITIES (CONT’D)

 A compelling Manner
The ability to inspire confidence, to encourage
friendliness and to elicit cooperation and enthusiasm
is invaluable to the pioneering effort that will be
required for him.
 Understanding the People
Such understanding includes appreciation of human
wants and aspirations, of individual differences in
aptitudes and abilities. It manifests itself in an
increasing effort to provide others with the
opportunities, the encouragement and the motivation
of their development.
 OUTSTANDING PERSONAL QUALITIES (CONT’D)

 A good Executive
He must be organization minded and know how to
delegate assignments. Since personnel departments
themselves are often complex and need a strong executive
at the top, his management ability must compare
favorably with that of the other top executives in the
company.

 A good salesman
Not the over aggressive type, but the kind who can sell
sound management ideas to employees and interpret
labor’s ideas to the employer. Here a good sense of values
is all-important.
 OUTSTANDING PERSONAL QUALITIES (CONT’D)

 A good Negotiator
He should be able to conduct meetings between
management and labor without letting the arguments
come to a boil, able to maintain his own equilibrium
and get a good night's sleep even after spending an
entire day at the conference table with the most
arrogant of union leaders.

 He must be a Good Technician

Able to analyze details concerning labor laws,
interpretations and executive orders. Incidentally, he
must also have the faculty of adapting himself
gracefully to changed conditions.
 OUTSTANDING PERSONAL QUALITIES (CONT’D)

 He must have the quality which president

Roosevelt once described as a “Passion for
anonymity”. This means that he will not look for
opportunities to claim credit, that he will enjoy
engineering a deal for which someone else gets
a praise, and that he will consider the line
supervisors the real personnel managers of the
company and constantly try to build them up as
such.
 He must be fully conversant with existing labor
laws and regulations. He must also know the
language of the people.