HUMAN RESOURCE

MANAGEMENT
Tanaya Devasthali
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Evolution of Human Resource

Management
Concept

What is it all about?

The Commodity
concept

Labour was regarded as a commodity to be bought and sold.

Wages were based on demand and supply. Government did
very little to protect workers.

The Factor of
Production concept

Labour is like any other factor of production, viz, money,

materials, land, etc. Workers are like machine tools.

The Goodwill concept

Welfare measures like safety, first aid, lunch room, rest room will
have a positive impact on workers productivity

The Paternalistic
concept/ Paternalism

Management must assume a fatherly and protective attitude

towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.

Objectives of HRM

Functions of HRM
P/HRM
Operative Functions

Managerial
functions:

Planning

Procurement

Development:

Job Analysis

Training

HR planning
Organising

Recruitment
Selection
Placement

Directing

Induction
Internal
mobility

Controlling

Executive
development
Career
planning
Succession
planning
Human
resources
development
strategies

Motivation and
Compensation:

Maintenance:

Job design

Health

Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services

Emerging
Issues:

Grievances

Personnel
records

Discipline

Work scheduling
Motivation

Integration:

Personnel
audit

Safety

Teams and
teamwork

Welfare

Collective
bargaining

Social security

Participation

HR
accounting

Empowerment

HRIS

Trade unions

Job stress

Employers
associations
Industrial
relations

Personnel
research

Mentoring
International
HRM

Scope of Human Resource Management

nd
e e a ns
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Em r Relat
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Lab

Human
Resource
1
Management

Safety and
Health

Hu
m
De an
ve Re
lo so
pm u
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t

Com
p
and ensatio
n
Ben
efits

a
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Staffing
Job Analysis
Human Resource Planning
(HRP)
Recruitment
Selection

Staffing (Continued)
Staffing - Process through which an
organization ensures that it always has
proper number of employees with
appropriate skills in right jobs at right
time to achieve organizations objectives
Job analysis - Systematic process of
determining skills, duties, and
knowledge required for performing jobs
in an organization
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Staffing (Continued)
Human resource planning - Process of
systematically reviewing human
resource requirements to ensure that
required numbers of employees, with
required skills, are available when
needed.
Recruitment - Process of attracting
qualified individuals and encouraging
them to apply for work with organization
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Staffing (Continued)
Selection - Process through which
organization chooses, from a group of
applicants, those individuals best suited
both for open positions and for the
company

Human Resource Development

Training
Development
Career Planning
Career Development
Organizational
Development

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Human Resource
Development (Continued)
Training - Designed to provide
learners with the knowledge and
skills needed for their present jobs.
Development - Involves learning
that goes beyond today's job; it has
a more long-term focus

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Human Resource
Development (Continued)
Career planning - An ongoing process
whereby individual sets career goals and
identifies means to achieve them
Career development - Formal approach
used by organization to ensure that people
with proper qualifications and experiences
are available when needed
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Human Resource
Development (Continued)
Organization development Organization
wide application of behavioral science to
planned development and support of
strategies, structures and processes for
improving firms effectiveness

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Compensation and Benefits

Compensation
Pay
Benefits
Non financial
Awards

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Compensation & Benefits (Contd.)

Compensation- All rewards that individuals
receive a a result of their employment
Pay - Money that a person receives for performing a
job

Benefits - Additional financial rewards, other than

base pay such as sick leave, vacations, holidays
and medical insurance

Nonfinancial Rewards
The Job
Pleasant working environment

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Safety and Health

Employees who work
in a safe
environment and
enjoy good health
are more likely to be
productive and yield
long-term benefits to
the organization.
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Safety and Health

Safety - Involves protecting employees
from injuries caused by work-related
accidents
Health - Refers to the employees'
freedom from illness and their general
physical and mental well being

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Employee and Labor Relations

Business required by
law to recognize
unions and bargain
with it in good faith if
firms employees
want union
representation.
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Human Resource Research

Human resource
research is not a
separate function.
It pervades all HR
functional areas.

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Interrelationships of HRM
Functions
All HRM functions
are interrelated.
Each function
affects other areas.

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Relationship of
Human Resource
Management with
other Social Sciences
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Environment of Human Resource Management

EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT

Customers

Safety and
Health

Competition

Hu
m
De an
ve Re
lo so
pm u
en rce
t

Com
p
and ensatio
n
Ben
efits

Finance

Human
Resource
1
Management

Operations

Other
Functional
Areas

Labor Force

Shareholders

The Economy

St

fi
f
a

ng

Society

Technology

Marketing

nd
e e a ns
io
pl oy
Em r Relat
o
Lab

Legal Considerations

Unions

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Labor Force
Pool of individuals
external to firm
from which
organization
obtains its workers

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Legal Considerations
Central, state
and local
legislation
Court decisions

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Society
Social responsibility Implied, enforced
or felt obligation of managers to serve or
protect interests of groups other than
themselves
Ethics Discipline dealing with what is
good and bad, or right and wrong, or with
moral duty and obligation

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Ethics and HR
Management
Discipline dealing
with what is:
good & bad

right & wrong

moral duty & obligation

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Unions
Group of employees
who have joined
together for purpose
of dealing
collectively with their
employer

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Shareholders
Owners of a corporation
Because they have
invested money in a firm,
they may at times
challenge programs
considered by
management to be
beneficial to the
organization
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Customers
Because sales critical
to firms survival,
management must
ensure employment
practices do not
antagonize the
customers they serve

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Competition
In order to
succeed, grow and
prosper, a firm
must be able to
maintain a supply
of competent
employees.

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Technology
As technology changes:
Certain skills no longer required
New skills needed
Necessitates some retraining of current
workforce

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The Economy
In general, when
economy is booming,
it is often more difficult
to recruit qualified
workers.

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Reasons: Increased Importance of

HRM
External
1) Increased international competition:
a) Steel and automotive industry crises.
b) Looking at Japans employment practices that
appear to foster employee commitment, etc.
2) Increased domestic competition
3) Government involvement (e.g., fair employment
practices)
4) Demographic changes:
a) Age structure; female participation in work force
5) Changing values of the work force (altered
expectations)
6) Customer focus
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Reasons: Increased Importance of

HRM
Internal
1) Need to improve productivity and quality
2) New technologies and production
concepts
3) Increasing education of the work force
4) Responding to slower growth/changes in
markets
5) Restructuring and reorganization
6) Need for flexible, adaptable work force:
firm specific skills.
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HRs Changing Role:

Who Performs Human
Resource Management Tasks?
Human Resource Managers
Shared Service Centers
Outsourcing Firms
Line Managers

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Human Resource Manager

Acts in advisory or staff
capacity
Works with other managers to
help them deal with human
resource matters

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Shared Service Centers

(SSCS)
Takes routine,
transaction-based
activities that are
dispersed and
consolidates them in
one location.
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Shared Service Centers (SSCS)

Performing HR Tasks
Fewer HR Personnel
Needed

HR Managers Assume
QualityRole
aImproves
More Strategic

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Outsourcing Firms
Transfers
responsibility to
an external
provider

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Outsourcing
Reduces:

Cost
Transaction Time

Improves Quality

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Line Managers Performing

HR Tasks

Involved with human

resources by nature of their
jobs

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HR as a Strategic Partner
HR executives must
understand complex
organizational design.
Must be able to
determine capabilities
of company's
workforce, today and
in the future
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The evolving strategic role of

Human Resource Management
Strategic focus
Strategic partner

Change agent

System

People

Administrative expert

Employee champion

Operational focus

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Traditional HR vs. Strategic HR

Point of distinction

Traditional HR

Focus

Employee Relations

Role of HR

Transactional change
follower and respondent

Initiatives

Slow, reactive, fragmented

Time horizon

Short-term

Control

Bureaucratic-roles, policies,
procedures

Job design

Tight division of labour;

independence,
specialisation

Key investments
Accountability
Responsibility for HR

Capital, products
Cost centre
Staff specialists

Strategic HR
Partnerships with internal and
external customers
Transformational change leader
and initiator
Fast, proactive and integrated
Short, medium and long (as
required)
Organic-flexible, whatever is
necessary to succeed
Broad, flexible, cross-training
teams
People, knowledge
Investment centre
Line managers

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Shifts in HR management in India

Emerging HR practice

Traditional HR practice

Administrative role
Reactive
Separate, isolated from

Proactive

Functional organisation
Individuals encouraged,

Key part of organisational

mission

company mission
Production focus

Strategic role

Service focus

Process-based organisation

Cross-functional eams,
teamwork most important

singled out for praise,

rewards
People as expenses

People as key
investments/assets
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Approaches to HRM
Traditional
Modern
Strategic

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HRM Models

The Fombrun, Tichy and Devanna Model

The Harvard Model
The Guest Model
The Warwick Model

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Thank You!!!

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