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Dr. Bhumika Achhnani

Introduction to Human Resource
Management

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Dr. Bhumika Achhnani

 The effective use of people to achieve both
organizational and individual goals
 The effective recruitment, selection, development,
compensation, and utilization of human resources by
organizations
 Definition: The Policies & practices involved in carrying
out the “People” or HR aspects of a management
position including recruiting, screening , training,
rewarding & appraising

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•Human (Homo-sapiens – Social
Animal)

•Resources (Human, Physical,

Financial, Technical, Informational
etc)

Management (Function of
Planning, Organizing, Leading ,
Controlling of organizational
resources to accomplish goals
efficiently and effectively)

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 To help the organization reach its goals.

 To ensure effective utilization and maximum development of

human resources.

 To ensure reconciliation of individual goals with those of the

organization.

 To provide the organization with well-trained and well-motivated

employees.

 To increase to the fullest the employee's job satisfaction and self-

actualization.

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 The success of organizations increasingly depends on
people-embodied know-how- the knowledge, skill, and
abilities imbedded in an organization's members.

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1. Helps you get results - through others.
2. Helps you avoid common personnel mistakes like the
following:
1. Hire the wrong person for the job
2. Experience high turnover
3. Waste time with useless interviews
4. Have your company taken to court because of
discriminatory actions.
5. Commit any unfair labour practices.
3. Helps you to gain Competitive Advantage

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Personnel Management Human Resources Management

1) Personnel means persons employed. Human Resources management is the

Personnel management is the management of employees’ knowledge,
management of people, skills employed abilities, talents, aptitudes, creative
abilities etc.

2) Employee in personnel management Employee in human resource

is mostly treated as an economic man management is treated not only as
as his services are exchanged for wage economic man but also as social and
/ salary. psychological man. Thus, the complete
man is viewed under this approach.

3) Employee is viewed as a commodity Employee is treated as a resource

or tool or equipment which can be
purchased.
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4) Employees are treated as cost 4) Employees are treated as profit
centre and therefore management centre and therefore, invests capital
controls the cost of labour for human resource development
and future utility
5) Employees are used mostly for Employees are used for the multiple
the organizational benefit. benefits of the organisation,
employees and their family
members
6) Personnel function is treated as Human resources management is a
only an Auxiliary function. Strategic Management function

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 The scope of HRM is very wide:

1.Personnel aspect- This is concerned with manpower planning,

recruitment, selection, placement, transfer, promotion, training and
development, layoff and remuneration, incentives, productivity etc.

2. Welfare aspect- It deals with working conditions and amenities

such as canteens, rest and lunch rooms, housing, transport, medical
assistance, education, health and safety, recreation facilities, etc.

3. Industrial relations aspect- This covers union-management

relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.

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 Industrial Revolution
 Trade Unionism
 Social responsibility Era
 Scientific Management Era
 Human Relations Era
 Behavioural Science Era
 System Approach Era
 Contingency Approach Era

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 Industrial Revolution
 The seed of HRM were sown during Industrial Revolution
in 1850’s in Western Europe and USA. The wind
gradually reached to India in beginning of 20th century.
During this period:
o Machines were brought in
o Technology made rapid progress

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 Workers were treated like machine tools.
 Employers were keen to meet production targets rather
than satisfy workers.
 Government did very little to protect the interest of
workers.

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 Trade Unionism
 This was the period when state intervention to protect the
worker’s interest was felt necessary. During this period:
 Workers started to form their associations.
 Trade Union Act, 1926 was passed in India.
 The basic philosophy was to safeguard worker’s interest and
sort out their problems like:
o Child labour
o Long hours of work
o Poor working conditions
 The unions used strikes, lockouts etc. as weapons for
acceptance of their problems.

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 These activities of trade unions gave rise to personnel
practices such as:
o Collective bargaining
o Grievance redressal
o Arbitration
o Employee benefit programs
o Installation of rational wage structures.

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 Social Responsibility Era
 Robert Owen, a British industrialist is considered to be
the first to adopt humanistic and paternalistic approach.
He viewed that the social and economic environment
influence the physical, mental and psychological
development of workers.
 His philosophy was that owner is like a father and
worker is like a child. He practised the following:
o Provision for reduced working hours
o Housing facilities
o Education of workers and their children

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 Scientific Management Era:
 This concept was introduced by Fredrick Winslow Taylor
in USA early in 20th century. He developed the following
four principles:
o Use of scientific methods in setting work standards.
o Scientific selection and placement of workers best suited for the
tasks. Also provision for training.
o Clear cut division of work and responsibility between
management and workers.
o Harmonious relations and close cooperation with workers.
 His study focused on physical characteristics of the
human body as it responds to routine and clearly
defined jobs.

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 He developed following techniques for the same:
o Time study
o Motion study
o Standardization of tools, equipment and machinery and working
conditions
o Incentive wage plan with differential piece rate of wages.

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 Human Relations Era:
 This particular period focused on the feelings, attitude and
needs of the workers as human beings. Between 1925 and
1935 Hugo Munsterberg, a psychologist suggested the use of
psychology in selection, placement, testing and training the
employees in an organisation.
 Between 1924 to 1932, Elton Mayo conducted a series of
experiments at Hawthrone plant of Western Electric Company
in USA. Main findings were:
o Physical environment should be good
o Favourable attitudes of workers and work team towards their work
o Fulfilment of worker’s social and psychological needs
o Job security
o Right to express the opinion on matters related to them.

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 Behavioural Science Era
 It was concerned with social and psychological aspects
of human behaviour. Some of important element were:
 Individual behaviour is linked with group behaviour
 Informal leadership rather than formal leadership
 Motivation by self control and self development
 Improving efficiency through self operating

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 Systems Approach Era
 Technical subsystem: formal relationships
 Social subsystem: informal group relations
 Power subsystem: exercise of power

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 Contingency Approach Era
 According to contingency, the best way to manage
varies with situation
 There may not be the universal way of managing all the
situations
 It is imperative for managers to analyse different
situations and then use the best suitable in that
particular situation.

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 To Attract People
 To Develop People
 To Motivate
 To Keep Talented People

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 The Changing Environment of HRM
 Changes are occurring today that are requiring
HR managers to play an increasingly central
role in managing companies.
 These changes or trends include

• Globalization Trends
• Changes in the nature of work
• Technology

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Globalization Trends
 The tendency of firms to extend their sales, ownership, and/or
manufacturing to new markets abroad.
 Sony, Apple, Nike & Mercedes Benz are some firms that market all
over the World.
 Indian firms like Infosys, Wipro, TCS & Satyam serve customers
around the world.
 Tata Steel & Mittal Steel have acquired steel plants around the
world
 Companies like GE, Dell & Google have located back office support
operations in India & other countries.
 Globalization’s Implications: More globalization means more
competition, & more competition means more pressure to be “world
class”- to lower costs to make employees more productive, & to do
things better & less expensively.
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 Because of this, globalization brings benefits & threats. For
consumer it means lower prices & higher quality, but for emps
to work harder, & perhaps having less secure jobs
Technological Trends
 Eg:- Indian Railways, the largest railway system in the world
has provided computerized ticket booking facility to
passengers.
Trends in the Nature of Work
 High-Tech Jobs
 Service Jobs
 Knowledge Work & Human Capital
 Human Capital:- The knowledge, education, training, skills &
expertise of a firms Workers.
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1. Strategic HRM
 Strategy A chosen course of action.
 Strategic plan is the company’s plan for how it
will match its internal strengths & weaknesses
with external opportunities & threats in order
to maintain a competitive advantage.
 SHRM means formulating & executing HR
policies & practices that produce the emp
competencies & the behaviors the company
needs to achieve its strategic aims.

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2. Creating High Performance Work Systems
 It focus on Productivity & Performance
 They have to focus on Performance
1. Managing with Technology
1. Self Service e.g.:- Dell
2. Call Centers
3. Productivity Improvement
4. Outsourcing e.g.:- ma Foi Management Consultant
2. Effective HR Practices
1. Well trained employees perform better than untrained ones
2. Safe work place produce fewer lost-time accidents
e.g. – Toyota they are having world class training & plant safety programs
3. High Performance Work System
A high Performance work system is an integrated set of HRM policies & practices
that together produce superior employees performance.
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o Employment security
o Selective hiring
o Extensive training
o Self-managed teams/decentralized decision making
o Information sharing
o Contingent (pay-for-performance) rewards
o Measurement of management practices
o Emphasis on high-quality work
o Benefits of a High-Performance Work System (HPWS)
• Generate more job applicants
• Screen candidates more effectively
• Provide more and better training
• Link pay more explicitly to performance
• Provide a safer work environment
• Produce more qualified applicants per position
• Hiring based on validated selection tests
• Provide more hours of training for new employees
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• Conduct more performance appraisals 30
 HR Proficiencies:- represent traditional knowledge & skills
in areas such as employee selection, training &
compensation
 Business Proficiencies:- reflect hr professionals new
strategic role
 Leadership Proficiencies:- They need ability to work with
& lead management groups, & to drive the changes
required.
 Learning Proficiencies:- He or she must have the ability to
learn new technology & apply it

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 Managing within the Law
o Equal employment laws

o Occupational safety and health laws

o Labor laws

 Managing Ethics
o Ethical Things

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 Human Capital Management is a systematized approach
to employee staffing that perceives people as assets
(human capital) whose current value can be measured
and whose future value can be enhanced through
investment.
 An organization that supports HCM, provides employees
with clearly defined and consistently communicated
performance expectations. In such a scenario, managers
are responsible for rating, rewarding and holding
employees accountable for achieving specific business
goals, creating innovation and supporting continuous
improvement.

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 Human Capital Management is essential for hiring,
managing, training and retaining talented and high
performing employees. It plays an important role in the
recruitment process. It ensures that human resource
professionals hire individuals who really deserve to be in
the organization.

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 Human capital management is important for:
o Hiring the right talent
o Orienting him/her to the organization
o Making a new employee feel comfortable
o Training employees in order to constantly upgrade their skills
o Retaining employees
o Making employees self sufficient and prepare them for adverse
conditions
o Human Capital management helps in developing skills of
employees which help them stand apart from the rest.

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Dr. Bhumika Achhnani

 The success of an org. depends largely on the
quantity & quality of its human resources.
 No org. can be successful in the long run without
having the right number & the right kind of
people doing the right jobs at the right time.
 Procurement of the right kind & right number of
human is the first operative function of HRM.
 Before selecting the right man for the right job, it
becomes necessary to determine the quality &
quantity of people required in an org.

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 This is the function of HRP or manpower
planning.
 HRM begins with manpower planning.

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 HRP has been defined as “ the process by which
management determines how an org should
move from its current manpower position to its
desired manpower position.
 Through it management strives to have the right
number & right kind of people at the right place,
at the right time, doing things which result in
both org, & the individual receiving, maximum
long range benefit.

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 HRP is a process of determining & assuming that
the org will have an adequate process of qualified
persons, available at the proper times, performing
jobs which meet the needs of the enterprise &
which provides satisfaction for the individuals
involved.
 In short, HRP is the process of determining
manpower needs & formulating plans to meet
these needs.

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1. HRP like all planning is future oriented. It involves
forecasts of the manpower needs in future time
period.
2. HRP is an on-going or continuous process because
the demand for & the supply of human resources
undergo frequent changes.
3. HRP is an integral part of corporate planning.
Without a corporate plan, there can be no
manpower plan. Whether or not the manpower
plans meet the org requirements & are in tune
with the reality depends on how clearly the goals
are defined.

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4. The basic purpose of HRP is to make optimum
utilization of an org’s current & future human
resources, it is necessary to relate future human
resources to future needs of the org.
5. HRP has both quantitative & qualitative aspects.
The former implies the right number of
employees while the later means the right
talent required in the org.
6. HRP is the primary responsibility of
management as to ensure effective utilisation
of the org’s hr.
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7. Human resource plans can be long term or
short term
8. HRP is a two-phased process, it includes
demand & supply.

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The main objectives of HRP are as follows
1. To ensure optimum use of existing human
resources.
2. To forecast future requirements for human
resources.
3. To provide control measures to ensure that
necessary human resources are available as &
when required.
4. To link human resource planning with
organisational planning.
5. TO determine levels of recruitment & training

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6. To estimate the cost of human resources &
housing needs of employees.
7. To provide a basis for management development
programmes.
The ultimate purpose of manpower planning is
“to relate future human resources to future
enterprise needs so as to maximize the future
return on investment in human resources.”

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1. Inaccuracy
2. Employees Resistance
3. Uncertainties
4. Inefficient Information System
5. Lack of Top Management Support
6. Time & Expense

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 1

Corporate Analysis
M
a
n M
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o 2 4 3 o
w d
e
r Demand Manpower Supply if
Forecast Gaps Forecast y
o
b O
j r
& g
P
o 5 P
li
ci l
e Manpower Plans a
s
n
s
Monitoring & Control
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1. Analyzing Organisational Plans

 First of all, the objectives & strategic plans of the company are
analyzed.
 It is related to future work activity.
 Each plan can further be analyzed into sub-plans & detailed
programmes.
 The future org structure & job design should be analyzed.
 It is necessary to be made clear & changes in the org structure
should be examined so as to anticipate its manpower requirement.
 It is necessary to study business plans because all manpower plans
are related to it.
 A company’s plan are based on economic forecast, company’s sales
& expansion forecast.

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 Forecasting
Tools

Trend Analysis Ratio Analysis Scatter Plotting

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1. Trend Analysis:- Study of a firm’s past employment needs over
a period of years to predict future needs.

2. Ratio Analysis:- A forecasting technique for determining

future staff needs by using ratios between, for example, sales
volume & number of employees need

3. Scatter Plot:- A graphical method used to help identify the

relationship between two variables.

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2. Forecasting Demand for Human Resources
 It is necessary to make projections for new positions to be
created & the vacancies arising in current manpower.
 Job analysis & forecasts of future activity levels help in human
resource forecasting.

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 3. Forecasting Supply of HR
 Every Org has two sources of supply of HR- Internal &
External
 Internally, HR can be obtained for certain posts through
Promotions & Transfers.
 HR flow in & out of org due to several reasons

Inflows Outflows
Promotions
New Recruits
Transfers

Promotions Retirements
Resignations
Transfers
Deaths

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4. Manpower Gap
 Net HR requirements or manpower gaps can be
identified by comparing demand forecasts & supply
forecasts.
 Such comparison will reveal either deficit or surplus of HR
in future.
 Deficit suggest the number of persons to be recruited &
Surplus suggest Termination.

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5. Action Planning
 Once the manpower gaps are identified , plans are
prepared to bridge this gaps
 Action Plan
1) Recruitment plan
2) Redundancy plan
3) Promotion plan
4) Training & Development plan

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6. Monitoring & Control
 Action plan is working properly or not
 Any addition to the manpower must be considered at the top
level management
 Keeping a close watch on overtime
 Measuring the efficiency of manpower
 Seeing the utilisation of manpower
 See the level of Job satisfaction.

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 HRP helps determine the no. & type of people a firm needs.
 Job analysis specify the tasks & duties of job & the qualifications expected
from prospective job holders.
 The next logical step is to hire the right number of people of the right
type to fill the jobs.
 Hiring involves two broad groups of activities 1) Recruitment & 2)
Selection.

HRP Determine Job

Recruitment &
Selection Needs
Analysis

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 Evaluating
Recruiting
Effectiveness

What to How to
Measure Measure

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 Human Resource Planning (HRP) is influenced by several
considerations. The more important of them are: (i) type
and strategy of organization, (ii) organizational growth
cycles and planning, (iii) environmental uncertainties, (iv)
time horizons, (v) type and quality of forecasting
information, (vi) labor market.

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 Type and Strategy of Organization
 The type of organization determines the production
process and number and type of staff needed.
Manufacturing organizations have a more complex
structure compared to service organization. It goes
without saying that the HRP differs according to the
nature of the organization.
 The human resource needs of an organization depend
on the strategic plan adopted by it. For example, growth
of the business calls for hiring of additional labour, while
mergers will need a plan for layoffs.

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 Environmental Uncertainties
 HR managers rarely have the privilege in a stable and
predictable environment. Political, social and economic
changes affect all organizations. Personnel planners deal
with environmental uncertainties by carefully
formulating recruitment , selection, and training and
development policies and programmes. Balancing
mechanisms are built into the HRM programme through
succession planning , promotion channels, layoffs,
flextime, job sharing , retirement, VRS and other
personnel related arrangements.

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 Time period
 Yet another major factor affecting personnel planning is
the horizon. On one hand, there are short-term plans
spanning six months to one year. On the other hand,
there are long-term plans which spread over three to
twenty years. The exact time span, however, depends on
the degree of certainty prevailing in an organization’s
environment. Plans for companies operating in an
unstable environment, computers for example, must be
for a short period. Plans for others where environment is
fairly stable, for example a university plans, may be long-
term. In general , the grater the uncertainty, the shorter
the plan’s time horizon and vice versa.
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 Information
 The type and quality of information used in making
forecast is an important factor influencing Human
Resource Planning. In the absence of a well-developed
information mechanism Human Resource Planning is just
impossible. Accurate and timely human resource
information system helps in getting better quality
personnel.

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 Nature of jobs being filled
 Job vacancies are very common and arise due to
promotions, retirements, termination of services, growth,
expansion, etc. HRP is required to ensure that suitable
candidates are recruited.

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 Off-loading
 This implies giving part of the organizations work to
outside parties. If an organization prefers off-loading to
recruitment of more people. Human Resource Planning
is not required.

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