HUMAN RESOURCE

MANAGEMENT

Importance
Liberalization, Globalization and advancement in IT
has changed the world around us
In such competitive scenario ,effective utilization of
resources has become primary task of organizations
Management of Human resource has acquired central
stage & driving seat since apart from itself being a
resource-it drives others resource as well
Continuous honing of employee skills and a focused
look at various HR processes has become very vital
for even survival of organizations , let alone growth.

CONCEPT
Alignment of HR strategy with Corporate strategy &
goals
Sourcing, Deploying and development of Human
resource for their optimal utilization
Development of employees competencies
Managing performance
Working for well being of employees-organizations
known by the quality of people they possess.

What is HRM
HRM is holistic approach towards management of
people who contribute to achievement of
organizational objectives
It ensures the most effective and efficient use of
human talent for accomplishing goals
It refers to acquisition ,retention, motivation and
maintenance of Human resource in an
organization High Power Work Systems

SALARY AND
BENEFITS
KNOWLEDGE
MANAGEMENT

BONUS,
REWARDS &
DISCIPLINE
INCENTIVES
GRIEVANCE
HANDLING
SEPARATION

HIRING &
PLACEMENT

PERFORMANCE
COMMUNICATION MEASUREMENT

INDUSTRIAL
RELATIONS &
WELFARE

CAREER
DEVELOPMENT

ORGANIZATIONTRAINING
STRUCTURE
MANPOWER
PLANNING

Human Resource Management at

Work
Acquisition

Training

Fairness

Health and Safety

Labor Relations

16

Human
Resource
Management
(HRM)

Appraisal

Compensating

Basic HR Concepts

The bottom line of managing:

Getting results

HR creates value by engaging in

activities that produce the
employee behaviors that the
company needs to achieve
its strategic goals.

17

OBJECTIVES
Helping organizations reach its goals
Efficiently employing skills of employees
Providing well trained and well motivated employees
Increasing employee job satisfaction
Communicating HRM policies to employees
Motivation of employees
Managing change and building responsible behavior
Maintaining ethical policies

Functions of HRM

Staffing
Work /Job Analysis
HR/Manpower planning
Recruitment
Selection
Placement
Induction/Orientation
Performance appraisal & Management
Training & Development

Functions of HRM---Contd.
Career Planning & Management-Succession
Compensation management :
Wage & salary packages
Employee benefits & services
Employee motivation, rewards & incentives

Industrial relations--Grievances/Conflict management and

Dispute resolution
Collective bargaining & workers Participation in mgmt/
Employees empowerment.
Managing employee Discipline

Functions of HRM---Contd.

Employment related Legislation/Laws

Social security, Promoting safety & Health
Leadership , Values & Corp. social responsibility
Ethics, Justice & Fair treatment
Knowledge management:
Key emerging areas
Tech. innovation & IT
Organization design

Functions of HRM---Contd.
Human resource accounting, Audit & Research:
Cost & value of HR
Effectiveness of HRM
Development through research

International HR Practices
Quality of Work life, Job satisfaction & morale
Finally for achieving organizational objectives
HRM has to focus on 3 core areas-known as 3Ps
PEOPLE PROCESSES
PERFORMANCE

STRATEGIC CHALLENGES OF HRM

TECHNOLOGY:

Growth in knowledge needs

Shift in human competencies
Global market and competition
Quicker innovation

DEMOGRAPHIC

Age
Diversity
Gender
Education

Challenges facing HRM in knowledge

economy
Attracting & retaining knowledge workers
Obtaining commitment from workers in changed employeeemployer contract
Ensure availability,dev. and utilization of human capital to
enhance its value
Motivating knowledge workers
Ensuring max. utilization of temporary employees
Encouraging employees to commit to continuous learning &
sharing of knowledge

Challenges facing HRM in knowledge

economy..contd
Facilitating worklife balance
Rewarding knowledge acquisition & sharing
Enhancing cross functional team work
Creating a flexible human resource
management team that sets & supports the
agenda for change

HRM MISSION
To continually evolve
new bench marks in
Human Resource
Practices for
ensuring effective
contribution of
people towards
achieving business
excellence.

GUIDING PRINCIPLE
Emphasis on speed,

simplicity and
service orientation
as the main focus.
Need for review of
personnel policies,
systems and
procedures.

18

The Death of HR ?

Traditional personnel function

Recordkeeping
Perceived as a dumping ground

The death of HR?

HRs rebirth
DIFFERENCE BETWEEN PM & HRM

What is SHRM
It is concerned with relationship between HRM and
strategic management
It is an approach which relates to decisions about nature
of various HR processes
A pattern of planned HR deployment and activities
intended to enable companies to achieve its goals
Recognition of potential of Human resources in providing
competitive advantage
A proactive and strategic HR function

Evolution of SHRM
Personnel Mgt

HRM
1970s

SHRM
1980s

Part of Mechanistic

Part of Organic org.

Convergence b/w

Orgn.

Cross hierarchical

HRM& business

Bureaucratic

& cross functional

strategy

High Centralization

teams

Proactive HRM

High Formalization

Decentralized

Concerned with Org.

Low Flexibility

Low Formalization

effectiveness &

Flexible

performance

Difference b/w SHRM & Traditional HRM

S.N.
1
Responsibility
for HR
Program

Traditional HRM
Staff Personnel in
HR Deptt.

SHRM
All Line Managers
for people

Focus of
Activities

Employee Relations
ensuring
employee
motivation &
productivity,
compliance with
laws

Partnership with
internal
(Employees) &
External
(Customers,
Stakeholders)
groups

Role of HR

Reactive &
Transactional

Proactive &
Transformational
change leaders

Difference b/w SHRM & Traditional HRM

S.N.
4
Initiative for
Change

Traditional HRM
Slow, piecemeal,
fragmented not
integrated with
larger issues

SHRM
Fast, flexible,
systematic, change
implemented in
concert with other HR
systems

Time Horizon Short Term

Consider various
time frames as
necessary (short,
medium. Long range)

Control

Organic control
through flexibility,
least restrictions on
employee behaviours

Bureaucratic
control through
rules, procedures

Difference b/w SHRM & Traditional HRM

S.N.
7
Job Design

Traditional HRM
Focus on scientific
Mgt principles
division of labour
specialization

SHRM
Broad job design,
flexibility, teams &
groups

Important
Investments

Capital, Product,
Technology

People & their

knowledge skills &
abilities

Accountability

Cost Centre

Investment Centre

Line Managers HRM

Responsibilities
1.

Placing the right person on the right job

2.

Starting new employees in the organization (orientation)

3.

Training employees for jobs that are new to them

4.

Improving the job performance of each person

5.

Gaining creative cooperation and developing smooth working relationships

6.

Interpreting the firms policies and procedures

7.

Controlling labor costs

8.

Developing the abilities of each person

9.

Creating and maintaining department morale

10. Protecting employees health and physical condition

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Strategic role of HRM

Step 1Step2Step3Step4Step5Step6-

Corporate strategy
Business plan
HRM strategy
Objectives
Processes & Policies
Procedures/Rules

Traditional vs. Strategic HR

Strategic Focus
Strategic Partner
Align HR and
business strategy
Processes
Admin. Expert
Build efficient
infrastructure

Change Agent
Ensure change capacity
and lead change
People

Employee
Champion
Listen & respond,
increase
commitment
Operational
Focus

HR as an Administrative Expert
The traditional (and Still important) role of HR.
Many duties, like payroll & benefits, are increasingly being:
Outsourced (ADP, People Soft, etc.)
Replaced by IT applications using a self-service approach.
A wide range of other traditional HR activities, such as
training, screening applicants, interviewing, performance
evaluation also being outsourced or replaced with technology.
Rather than being enveloped by tight controls and
excessive regulations ,operations are controlled by
whatever is necessary to succeed ,and control systems are
modified as needed to meet changing conditions.

HR as an Employee Champion
HR can act to help balance the demands made on employees and
the resources available to them by:
Generating employee feedback (surveys, informal discussions,
etc.)
Being the employees voice in management decisions.
Propose, support, and administer people-friendly work
practices:
- Teams, flexibility, job design, challenging work, fair pay,
incentive pay, good training programs, work-family, etc.
SHR shifts attention , as against the traditional HRs
focus on employee relations, to partnerships with
internal and external groups.

HR as a Change Agent
Companies are constantly changing- New structures, culture, technology, initiatives, etc.
HR must help org have capacity for successful change. Can
do this through:
- Being Proactive
-Advising and assisting managers in planning,
communicating and implementing change (act as an
internal consultant)
- Voicing employee concerns
- Provide training to employees and managers
- Suggest and work for needed changes
- Role-model by successfully changing and running the HR
department

HR as a Strategic Partner
Create and manage processes to meet strategic goals and business
requirements:
- Workforce planning, competency-building, efficient & flexible
HR systems.
HR follows from Strategy, but should also shape it. The ideal is
when Mgt and HR work together to develop plans to highlight HR
activities that help the business achieve goals
To do this, HR must earn respect of Top Mgt by:
- Being a businessperson, not just HR
- Evaluating and demonstrating how HR is financially helping the
company

Human Resource Management

Goals
Company Strategy

Attract an Effective Workforce

HRM Environment
Legislation
Trends in society
International events
Changing technology

HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Develop an Effective Workforce

Training
Development
Appraisal
32

Who Is Responsible for

Managing Human Resources?
A partnership of:
top management
human resource professionals
managers
employees
consultants
HR specialty firms

Human Resource Specialties

Recruiters
Employment/
Industrial
Relations
Specialist

Training
Specialists

Human
Resource
Specialties

Job Analysts

Compensation
Managers

134

Human Resource
Development
Specialists

Employee Welfare
Officers

High-Performance Work System

Practices
Employment security
Selective hiring
Extensive training
Self-managed teams/decentralized decision making
Reduced status distinctions
Information sharing
Contingent (pay-for-performance) rewards
Transformational leadership
Measurement of management practices
Emphasis on high-quality work
135

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
Conduct more performance appraisals
136

FIGURE 36

337

Linking Company-Wide and HR Strategies

Flow of activities in the HRM

Function

To Achieve Competitive Advantage in the

marketplace, HR must Adopt a Leadership
Position
Leadership

Partner to the Business

Service Provider
Compliance
Personnel Administration
39

 If your vision is 1 year,

cultivate flowers.
If your vision is 10 years,
cultivate trees.
If your vision is eternity,
cultivate People.
- Oriental Phrase

HRM
in
India
In the 1970s and 1980s typical HRM functions in organization included:

Personnel and administration

Industrial relations
Labor welfare

Up to the mid-80s human resource management in Indian organizations

grew through various phases under the influence of the following
factors:

141

A philanthropic viewpoint about doing good for workers

A legislative framework
Government policies
Trade unions
Emerging trends/concepts in management
Changes in the economy

Management Challenges for

Indian CEOs
A study among Indian CEOs identified the following
challenges:

142

Creating a high-performance culture

Retaining talent
Recruiting
Moving from a patriarchic and hierarchical management
style to a more team-based, informal organizational culture
Linking training with performance
Compensating knowledge workers
Building interpersonal relationships/managing conflict
Going global
Source: Aneeta Madhok, Similar Challenges cited by Robert
J. Grossman in HRs Rising Star in India, available at
http://www.shrm.org/india.

Shift to Human Resource

Development Orientation
The 1980s saw the large-scale introduction of the
developmental concept in Indian organizations
Udai Pareek and T. V. Rao, faculty of IIM
Ahmedabad, introduced the human resource
development (HRD) concept in India

143

Total Human Resource Management

Opening up of the Indian economy created a demand
for talent and the traditional organizations (both in
public and private sectors) became talent sources.
Development of the Information Technology sector
mobilized a vast pool of technically trained people.
Massive staffing requirements saw recruitment
evolving as very specialized function, separate from
but closely interlinked with the other HRM functions.
Arrival of the knowledge workerwell-skilled,
individualistic, and ambitious about career caused
attrition to become common.
144

Total Human Resource Management (continued)

Introduction of IT-supported solution, particularly
ERP-based human resource information systems
Introduction of innovative HR practices.
Rise of IT-enabled services (ITES), gave
employment opportunities to the young English
speaking, educated population.
HRM function assumed a strategic role in Indian
organizations, responding to business
requirements in an appropriate way.

145