Human Resource

Management
Module – 1
Human Resource
 The total knowledge, skills, creative abilities,
talents and aptitudes of an organization's
workforce, as well as the value, attitudes
and beliefs of the individuals involved.
 -- Leon C. Megginson

Human Resource Management
 Managing the functions of employing,
developing and compensating Human
Resources resulting in creating and developing
human relations and utilizing Human
Resources with a view to contribute to the
organizational, individual and social goals.
Why Study HRM?
 Competitive Advantage through People
 Resources must be of value
 Resources must be rare
 Resources must be difficult to imitate
 Resources must be organized

 Core competencies help deliver value to its
customers
Framework for HRM
Challenges to HRM
Going Global
 Impact of globalization
 Effect of Globalization on HRM

EMBRACING NEW TECHNOLOGY 

Knowledge workers 

HRIS 
Managing Change
 Types of changes
 Proactive
 Reactive


 Managing change through HR

Developing Human Capital
 Invest in employee development
 Use the existing knowledge

 Training

 Career development
Responding to the Market
 Meet customer expectations
 Management innovations
 TQM
 SixSigma
 Reengineering
Contain Costs
 Downsizing
 Outsourcing

 Employee leasing

 Productivity enhancements
Demographic and Employee Concerns
 Demographic Changes
 Diversity Challenge
 Age distribution
 Gender distribution
 Levels of education
 Cultural changes
 Employee rights
 Concern for privacy
 Attitude towards work
 Balancing work and family

Line Managers and HR Departments
 Responsibilities of HR Manager
 Advice and counsel
 Service
 Policy formulation and implementation
 Employee advocacy
 Competencies of HR Manager
 Business mastery
 HR Mastery
 Change mastery
 Personal credibility
 Role of Line Managers
Policy & Procedure


 Policy
 Plan of action
 Set of proposals and actions that act as a
reference point for managers in their dealings
with employees


 Procedure
 Course of action – action guidelines

Functions of HRM
 Managerial Functions
 Operative Functions
Managerial Functions
 Planning
 Organizing

 Directing

 Controlling
Operative Functions
 Employment
 Job analysis
 HRP
 Recruitment
 Selection
 Placement
 Induction and Orientation
 Human Resource Development
 Performance Appraisal
 Training
 Management Development
 Career planning & Development
 Organization Development
Operative Functions
 Compensation
 Job evaluation
 Wage and salary administration
 Incentives
 Bonus
 Fringe benefits
 Social security measures
 Human Relations
 Effectiveness of HRM
 OrganizationalHealth
 HR Accounting, Audit & Research
HR Audit
 HR audit is the systematic examination and
evaluation of policies, procedures and
practices to determine the effectiveness of
human resource management.

Objectives of HR Audit
 To evaluate the total HRM programmes in the
light of the organizational objectives.
 To seek explanation and information on such
questions as ‘what happened’ and ‘why did
it happen’
 To evaluate the extent to which line managers
have implemented various HR policies and
programmes that have been developed and
initiated.
 To evaluate the total performance of HR
department

Benefits of HR Audit
 Identification of the contributions of HR
department to the achievement of
organizational objectives.
 Improvement of professional image of HR
dept.
 Clarification of HR department’s duties and
responsibilities.
 Find critical HR problems
 Ensuring timely compliance with legal
requirements
 Reduction of HR costs through more effective
procedures
Scope of HR audit
 HR strategies and policies
 HRM functions
 HRM compliance- refers to the adherence to
various HR strategies and policies by line
managers and adherence to legal
requirements.
 HR climate- degree of employee turnover,
absenteeism, accidents, status of grievances
etc.

HR Policy
 Essential features of HR policy
 The statement of any policy should be definite,
positive, clear and easily understandable.
 Should be reasonably stable i.e., periodically
reviewed, evaluated, assessed and revised.
 Must be supplementary to the overall
organizational objectives.
 Should be formulated with due regard to all the
parties interested.
 Should be progressive and consistent with the
professional management philosophy.
 Should be uniform through out the organization.
 Should be consistent with the public policy.
 Should be known to all interested parties.
Why adopt HR policy
 Established policies ensure consistent
treatment of all personnel throughout the
organization.
 Favoritism, discrimination thereby minimized.

 Continuity of action is assured even though

top management personnel change.
 Sound policies help resolve interpersonal, and
inter-group conflicts.
 Help build employee motivation and loyalty.

 Policies serve standard of performance.


HR Records
 HR records and reports record and provide the
information relating to various aspects of
human resources of an organization.


 Types
 Conventional
 Modern
Importance of Records
 To supply information to the management
 To identify training needs and design
programmes
 For succession planning

 To take decisions on promotion, transfer, layoff

etc
 To compensate employees

 To maintain data on leaves, retirements etc

Essential Points in Records
 Simple
 Accurate

 Economic

 Useful
Organization Design
 Relationships
 Formal Organization
 Informal Organization
 Responsibility
 Authority

 Accountability
Line and Staff Relationships
 HRM is a line responsibility
 Line needs assistance in managing men

 HRM is a staff function


LINE AND STAFF RELATIONSHIPS 
HRM is a line  re spo nsibility 

Line  ne e ds assistanc e  in managing me n 

HRM is a staff func tio n 

The re fo re , HRM is a line  re spo nsibility but  a 
staff func tio n 


HR Research
 Characteristics:
 Purposive
 Limitsbias
 Systematic
 Parsimonious
 Repeatable
 Planned
 Supplements knowledge
Need for HR Research
 To build existing knowledge
 Evaluation of proposed programmes, practices
and activities
 Evaluation of current and new policies and
practices
 Anticipation of personal problems


Process of HR Research
 Formulation of a problem
 Selection of hypothesis

 Formulation of objectives

 Design of experiment or enquiry

 Description of methodology

 Collection of data

 Prepare a working guide

 Analysis and interpretation

 Report writing
HRIS
 Necessary for
 Planning
 Controlling
 Decision making
 Preparing reports
 Personal profiles
 Career profile

 Skill profile

 Benefits profile
Uses of HRIS