Introduction to HRM

2016
 What is HRM?

Human Resource Management is that specialized and

organized branch of management which is concerned with
the acquisition, maintenance,development, utilization
and coordination of people at work, in such a manner
that they will give their best to the enterprise.
It refers to a systematicfunction of planning for the
human resource needs and demands, selection, training,
compensation and performance appraisal, to meet those
requirements.
Human Resource Management is a continuous process of
ensuring the availability of eligible and willing workforce i.e.
putting the right man at theright job.
In a nutshell, it is an art of utilizing the human resources
of an organization, in the most efficient and effective way.
 What is PM?
Personnel Management is a part of management that deals
with the recruitment, hiring, staffing, development
and compensation of the workforce andtheir
relation with the organization in order to achieve the
organizational objectives.
The main functions of the personnel management are
divided into two categories:
Operative Functions: The activities that are concerned
with procurement, development, compensation, job
evaluation, employee welfare, utilization,maintenance and
collective bargaining.
Managerial Function: Planning, Organizing, Directing,
Motivation, Control and Coordination are the basic
managerial activities performed byPersonnel Management.
Key Differences Between Personnel Management
(PM) and Human Resource Management (HRM)

The part of management that deals with the work

force within the enterprise is known as Personnel
Management. The branch of management,
whichfocuses on the best possible use of the
enterprises man power is known as Human
Resource Management.
Personnel Management treats workers as tools or
machines whereas Human Resource Management
treats it as an important asset of the organization.
Human Resource Management is the advanced
version of Personnel Management.
Key Differences Between Personnel Management
(PM) and Human Resource Management (HRM)

Decision Making is generally slow in Personnel

Management but the same is comparatively fast in
Human Resource Management.
In Personnel Management there is a piecemeal
distribution of initiatives. However, integrated
distribution of initiatives is there in Human
ResourceManagement.
In Personnel Management, the basis of job design
is the division of work while, in the case of Human
Resource Management, employees are divided
intogroups or teams for performing any task.
Key Differences Between Personnel Management
(PM) and Human Resource Management (HRM)

In PM, the negotiations are based on

collective bargaining with the union
leader. Conversely, in HRM, there is no
need for collective bargaining
asindividual contracts exist with each
employee.
In PM, the pay is based on job
evaluation. Unlike HRM, where the
basis of pay is performance evaluation.
What is HRM?
HRM is concerned with the peoples
dimension in the organization
Facilitating the competencies and
retention of skilled force
Developing management systems that
promote commitment
Developing practices that foster team
work
Making employees feel valued and
rewarded.

Prof.Sujeesha Rao
 HRM concepts
People Management
The policies and practice which
govern how people are
managed and developed in
organizations
Human Resources Human Capital
Management Management
The strategic and coherent An approach to obtaining,
approach to the management analyzing and reporting on
the most of organizations data which informs the
most valued assets the direction of value adding
people working there who people management strategic
individually and collectively investment and operational
contribute to the achievements
Personnel Managementdecisions at corporate level
of its objectives Personnel mmanagement is and at the level of front line
concerned with obtaing, management
organizing and motivating
human resources required by
enterprise
 HRM covers a broad spectrum of
activities which includes:
Employment
Recruitment and Selection
Training and Development
Employee Services
Salary and Wages
Industrial Relations
Health and safety
Education
Working conditions
Appraisal and Assessment
Human resource system
1. HR philosophies (values and guiding
principles adopted in managing people)
2. HR strategies (defining the direction)
3. HR policies (how values, principles should
be applied)
4. HR processes ( formal procedures and
methods put HR plans into effect)
5. HR practices ( informal approaches used)
6. HR programmes (which enable strategies,
policies, practices to be implemented)
Hard and Soft HRM

Hard (instrumental) HRM approach:

employees are viewed as a passive factor of
production, an expense
employees can be easily replaced and seen as
disposable.
Strategic, quantitative aspects of managing HRM as
an economic factor

Soft (humanistic) HRM approach:

stresses active employee participation
gains employee commitment, adaptability and
contribution of their competences to achievement of
organizational goals
employees are valued as assets
emphasizing communication, motivation and
leadership
The link between HRM and firm
performance
HRM and 3 Ps
People core strength of an organization
Any resource can be replaced but not HR
Processes evolve over a period of time
IT enabled environment facilitates
engineering effortlessly
Performance the pillars of performance
are people and IT
Organizational performance in terms of
value creation and return on investment

Prof.Sujeesha Rao
Aims of HRM
1. Organizational effectiveness (HRM makes a
significant impact on firm performance)
2. Human capital management (HC is the prime
asset the aim is to develop the inherent capacities
of people)
3. Knowledge management (support the
development of firm-specific knowledge)
4. Reward management (enhance motivation, job
engagement)
5. Employee relations (harmonious relationship
between partners)
6. Meeting diverse needs (stakeholders, workforce)
7. Bridging the gap between rhetoric and reality
(HRM is to bridge the gap and to ensure that
aspirations are translated to effective action
Why Study HRM?
Taking a look at people is a rewarding
experience
People possess skills, abilities and
aptitudes that offer competitive advantage
to any firm
No computer can substitute human brain,
no machines can run without human
intervention & no organization can exist if
it cannot serve peoples needs.
HRM is a study about the people in the
organization-how they are hired, trained,
compensated, motivated & maintained.
Prof.Sujeesha Rao
 DO YOU KNOW THESE
TERMS?
BABAY BOOMERS
GENERATION X
GENERATION Y
GENERATION Z
 Baby Boomers
TheBaby Boomersare a generation of people born
during the post WWII Baby Boom, roughly during
the years 1946 to 1964.In the years following
WWII many western nations experienced a spike in
births as they slowly recovered from the economic
hardships experienced during wartime. This new
generation of Baby Boomers experienced an
unprecedented level of economic growth and
prosperity throughout their lifetime.
e.g.
Steve Jobs,Bill Gates,Bill Clinton,Donald
Trump,George W Bush.

 Generation X
Generation Xcame after the Baby Boomers, and typically
covers people born between the mid 1960s and the early
1980s. Gen X was shaped by global political events that
occurred during this generations youth. Events such as
The Vietnam War, the fall of the Berlin Wall, the end of the
Cold War, and the Thatcher-era government in the UK
were events that helped to shape the culture and
upbringing of Generation X. Relative to previous
generations, Gen X is more open to diversity and has
learnt to embrace differences such as religion, sexual
orientation, class, race and ethnicity.
e.g
Charlie Sheen, Sarah Jessica Parker, Jennifer Lopez,
Miranda Hart, Liam Gallagher, Robbie Williams, Victoria
Beckham.
 Generation Y
Generation Ycame after Generation X. Generation Y
covers people born between the 1980s and the year
2000, and these individuals are sometimes referred to
as Gen Y, the Millennial Generation, or simply
Millennials. Generation Y has been shaped by the
technological revolution that occurred throughout their
youth. Gen Y grew up with technology, so being
connected and tech savvy is in their DNA. Equipped
with latest technology and gadgets, such as iPhones,
laptops and lately tablets, Generation Y is online and
connected 24/7, 365 days a year. Many Millennials
grew up seeing their Baby Boomer parents working
day and night doing stressful corporate jobs, which
has shaped their own views on the workforce and the
need for work-life balance.
e.G
Britney Spears, Kate Middleton,Rihanna, Emma
 Generation Z
Generation Zis the generation of children born
after the Year 2000. They are the children of
Generation X and Generation Y. Generation Z
are predicted to be highly connected, living in
an age of high-tech communication, technology
driven lifestyles and prolific use of social media.
A lot of what we think we know about
Generation Z is inferred, and only time will tell
whether we have been correct.
e.g.
Shiloh Jolie-Pitt, Suri Cruise, Blue Ivy Carter,
Brooklyn Beckham, Apple Martin.
The acceptance of boomerang employees and the challenges
for job seekers.
A boomerang employees is one that leaves a company only to
return later, a decision that is typically based on compensation,
opportunity or family affairs.
In arecent study, we found that 48% of companies had a policy
against hiring boomerang employees in the past, but now 76% say
they are more accepting of hiring them. This trend is happening
because professionals are switching jobs more often, and the
access to talent through technology is greater than ever before.
Companies have recognized this and have created LinkedIn groups,
Facebook groups and email groups so their former employees can
stay connected.
The benefits of rehiring former employees are that they are familiar
with the company culture, dont require as much training and have
a new perspective.
Boomerang employees areanothernail in the coffinfor active job
seekers who always have to compete against employee referred
candidates,internal candidates, passive job seekers and customers.
2. The leadership gap will start being filled as boomers retire in
numbers.
In 2016, more than3.6 million baby boomersare set to retire and
more than one-fourth of millennial workers will become managers.
Succession planning and next generation leadership development
will start to be prioritized in 2016.
In order to cope with the loss of boomers, companies will be hiring
some back as consultants and advisors to current executives as well
as new or upcoming leaders.
Based onour global study, we found that companies need to offer
regular feedback, instead of annual performance reviews, and virtual
learning instead of printed manuals.
In afollow up study, we examined the strengths and leadership
styles of millennial and found that they are transformation leaders,
which is different than boomers who are autocratic leaders.
Ninety-one percentof millennial aspire to leadership positions, and
their biggest weaknesses are technical expertise and influence.
This new generation will fill the leadership gap by flattening
corporate hierarchies, empowering others to succeed and forcing
companies to make an impact on society, rather than just focusing
onmoney.
3. Workplace flexibility becomes the biggest topic of
conversation.
First, we work47 hours per weeknow, and there is no longer
such a thing as a 47 hour workweek.
Second, another study we did found that64% of
managersexpect their employees to be reachable outside of
the office on their personal time. As a result,another
studywe did found that more than half of workers feel
burned out.
Third, more employees are willing to either switch employers
or stay at their current employer, based on their flexibility
programs.
With the rise of telecommuting, co-working spaces,
globalization and new technology tools, workers are
demanding flexibility.
In the next few years, nearly every company will have a
policy, especially because we are getting ready for the next
baby boom when 80million millennial have children.
The table below gives an overview
of the eight trend areas.
 Evolution of Human
Resource Management
in India!
 Evolution of HRM in India
Welfare (1920s-1930s)

Administration (1930s-
1940s)

Employee relations
(1940-1960s)

Functional expertise
(1970s-1980s)

Business partner /
player
(1990s)
Prof.Sujeesha Rao
Period Development Outlook Emphasis Status
Status
1920s Beginning Pragmatism of Statutory Clerical
to1930s capitalists welfare
paternalism
1940s Struggling for Technical Introduction Administrative
to1960s recognition legalistic Of Techniques

1970s Achieving Professional Regulatory Managerial

conforming
imposition of

1980s Sophistication Legalistic Standards on Managerial

promising impersonal other function

1990s Philosophical Human values, Executive

productivity
through people
 Objectives of HRM

1)To help the organization reach its goals.

2)To ensure effective utilization and
maximum development of human resource.
3)To ensure respect for human beings. To
identify and satisfy the needs of individuals.
4)To ensure reconciliation of individual goals
with those of the organization.
5)To achieve and maintain high moral among
employees.
6) To provide the organization with well-
trained and well-motivated employees.
 Objectives of HRM

7) To increase to the fullest the employees

job satisfaction and self- actualization.
8) To develop and maintain a quality of work
life.
9) To be ethically and socially responsive to
the needs of society.
10) To develop overall personality of each
employee in its multidimensional aspect.
11) To enhance employees capabilities to
perform the present job.
12) To equip the employees with precision
and clarity in trans-action of business.
 Influences on HRM Objectives
Internal influences on HRM objectives
Corporate objectives
E.g. an objective of cost reduction is likely to require HR
to implement redundancies, job reallocations etc.
Operational strategies
E.g. introduction of new IT or other systems and
processes may require new staff training, fewer staff
Marketing strategies
E.g. new product development and entry into a new
market may require changes to organisational structure
and recruitment of a new sales team
Financial strategies
E.g. a decision to reduce costs by outsourcing training
would result in changes to training programmes
 Influences on HRM Objectives
External influences on HRM objectives
Market changes
E.g. a loss of market share to a competitor may require a change in
divisional management or job losses to improve competitiveness
Economic changes
E.g. the recession of 2009/10 has placed great pressure on HR
departments to reduce staff costs and improve productivity
Technological changes
E.g. the rapid growth of social networking may require changes to
the way the business communicates with employees and customers
Social changes
E.g. the growing number of single-person households is increasing
demand from employees for flexible working options
Political & legal changes
E.g. EU legislation on areas such as maximum working time and
other employment rights impacts directly on workforce planning
and remuneration
 Functions of HRM

There are three types of

function.

Managerial function
Operative function
Procurement Function
(1) Managerial Function
Planning
Organizing
Directing
Controlling
(2) Operative Function
Specific activities of procuring, developing,
compensating and maintaining an efficient work
force.
(3) Procurement Function
It is concerned with securing and employing the
right kind and proper number of people required
to accomplish the organizational objectives.
It consists of the following activities:
(a) Job analysis:-
It is the process of studying in a job so as
to identify the nature and level of human
resources required to perform the job
effectively.
(b) Human Resource Planning:-
It is the process of estimating the present
and future manpower requirements of the
organization, preparing inventory of
present manpower and formulating action
programmes to bridge the gaps in
manpower.
(c) Recruitment:-
It is the process of searching for required
(d) Selection:-
It implies judging the suitability of
different candidates for jobs in the
organization and choosing the most
appropriate people.
(e) Placement:-
It means assigning suitable jobs to the
selected candidates so as to match
employee qualifications with job
requirements.
(f) Induction or orientation :-
It involves familiarizing the new
employees with the company, the work
environment and the existing employees
2. Development Function
Human resource development is the process of improving the
knowledge, skills, aptitudes and values of employees so that
they can perform the present and future jobs more effectively.
This function compromise the following activities:
a. Performance and Potential Appraisal :-
. It implies systematic evaluation of employees with respect to
their performance on the job and their potential for
development.
b. Training :-
. It is the process by which employees learn knowledge, skills
and attitudes to further organizational and personal goals.
c. Executive Development :-
. It is the process of developing managerial talent through
appropriate programmes.
d. Career Planning and Development :-
. It involves planning the career of employees and
implementing career plans so as to fulfill the career aspirations
of people.
Compensation Functions
It refers to providing equitable and fair remuneration to
employees for their contribution to the attainment of
organizational objectives. It consists of the following
activities:
a. Job Evaluation :-
. It is the process of determining the relative worth of a
job.
b. Wage and Salary Administration :-
. It implies developing and operating a suitable wage
and salary programme.
c. Bonus :-
. It involves payment of bonus under the Payment of
Bonus Act,1965 as well as non-statutory bonus and
other incentives.
 Integration Function
It is the process of reconciling the goals of the
organization with those of its members.
Integration involves motivating employees through
various financial and non-financial incentives, providing
job satisfaction, handling employee grievances through
formal grievance procedures, collective bargaining,
workers participation in management, conflict
resolution, developing sound human relation, employee
counseling, improving quality of work life, etc.
 Maintenance Function
It is concerned with protecting and promoting
and promoting the physical and mental health
of employees for this purpose several types of
fringe benefit such as housing, medical aid,
educational facilities, conveyance facilities, etc.
are provided to employees.
Social security measures like provident fund,
pension, gratuity, maternity benefits,
injury/disablement allowance, group insurance,
etc. are also arranged.
 Career in HR

Recruitment and Selection: Involves preparing job

descriptions, attracting people with right
qualifications and skills, with right mind set and
attitude.
Manpower Planning: Assessing the present and
future manpower requirements in the organization,
succession planning and career planning. This area
is very important in which the future strength of the
an organization lies.
Human Resource Administration: Defining
organizations HR policies and procedures and
implementation thereof
Compensation and Benefits: Determining salary
structures, employee perquisites etc, covers health,
security, safety, terminal benefits, and employee
welfare facilities. This area is very important for
 Career in HR

Industrial Relations: Promoting healthy relationship

between management and employees associations,
addressing employees concerns, taking care of legal
issues in the labour courts / labour commissioners.
Training and Development: Arranging employee
orientation programmes and providing technical
skills and behavioral training to employees for
effective performance. This area is very important
for career progression of an individual in the
organization.
Performance Appraisal: Reviewing performance
appraisal system of the employees from time to
time using the assessment information for the
purpose of trainings, promotions, and incentives etc.
Using right tools & techniques to measure the
performance of the employees in order to develop
Best HR Companies
What makes these 10 companies
the best to work for in India
RMSI
Rank: 1
Employees: 842

People are respected and performance is nurtured

Google India
Rank: 2
Employees: 1678

Fitness and fun are woven into Google's history

Marriott Hotels India
Rank: 3
Employees: 6,500

Taking care of our associates is at the heart of

American Express India
Rank: 4
Employees: 9,036 employees
Creating an inspiring workplace is a top priority
SAP Labs India
Rank: 5
Employees: 4,844

SAP shows it cares for its employees

Godrej Consumer Products
Rank: 6
Employees: 2,228
Diversity & Inclusion programme
Intuit Technology Services
Rank: 7
Employees: 806 keep employees financially fit
Accor Hotels India
Rank: 8
Employees: 3,690

Creating a caring and inspiring workplace

Forbes Marshall
Rank: 9
Employees: 1,417

Communications are transparent and

accessible
Lifestyle International
Rank: 10
Employees: 10,820
A culture of openness,
transparency, camaraderie, trust
Organizational Structure and
HRM :
http://www.slideshare.net/tutor2u/hrm
-organisational-structure