MM ZC441: Human

Resource Management
BITS Pilani Lecture-1 Date :22/7/16 Total Slides : 43 Swati Alok
Hyderabad Campus
Discuss………….

“Every manager
is
an
HR manager…”

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Every manager is an HR
manager…

Line manager: A manager who is authorized to direct the

work of subordinates and is responsible for
accomplishing the organization’s tasks.
Staff manager :A manager who assists and advises line
managers.

Line employee: an employee involved directly in producing

the company’s goods or delivering services
Staff employees are those who support the line function

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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 firm’s 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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 BITS Pilani
Hyderabad Campus

Chapter 1 : Understanding the Nature and Scope of Human Resource Management

Chapter 2 : Context of Human Resource Management

Text Book: Human Resource Management: Text and Cases, Tata McGraw Hill, 7th Edition,

by K Aswathappa
Learning Objectives

Introduction
Meaning & Definition of HRM
Scope of HRM
Differences between PM , HRM, IR, HRD
HRM-Functions & Objectives
Evolution of HRM in India
Why Study HRM?
Harvard HRM Model
External and internal environment impacting HR functions

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What is ManagemenT

The process of deciding how best to use a

business’s resources to produce good or provide
services (achieve the goal)
– Men ,Machine, Materials, Methods ,Money
– Tactfully: efficiently and effectively
– Efficient – minimum resource
– Effective – reach the goal

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 Company president summed up:
• “For many years it has been said that capital is the
bottleneck for developing industry. I don’t think this
any longer holds true. I think it’s the workforce and
the company’s inability to recruit and maintain a
good work force that does constitute the bottleneck
for production. I don’t know of any project backed
by good ideas and stopped by a shortage of cash. I
do know of industries whose growth has been
partly stopped because they can’t maintain an
efficient and enthusiastic labor force and I think this
will hold true even more in future”
Introduction

• There is unlimited people potential that is untapped

• The universal challenge is getting results through people

• Acquiring ,developing and maintaining human talent

Building the human capital

• Its people that lend competitive advantage

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Definition

• HRM refers to acquisition,

development and retentions
of Human Resources in an
organization.

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Caselet-1 Jack Nelson’s
Problem
As a new member of the board of directors for a local bank,
Jack Nelson was being introduced to all employees in the
head office. When he was introduced to Ruth Johnson, he
was curious about her work and asked her what her machine
did. Johnson replied that she really did not know what the
machine was called or what it did. She explained that she
had only been working there for only two months. She did,
however, know precisely how to operate the machine.
According to her line manager, she was an excellent
employee.

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Caselet-1

At one of the branch offices the line manager in charge

spoke to Nelson confidentially, telling him that
“something was wrong” but she did not know what. For
one thing she explained that employee turnover was
high, and no sooner had an employee been put on the
job than another one resigned. With customers to see
and loans to be made, she explained, she had little time
to work with the new employees as they came and went.
All branch line managers hired their own employees
without communication with the head office or other
branches. When an opening developed, the line
manager tried to find a suitable employee to replace the
worker who had quit.

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Caselet-1 Jack Nelson’s
Problem

After touring the 22 branches and finding similar problems

in many of them, Nelson wondered what the head office
should or what action should be taken. The organisation
was generally regarded as being a well-run institution
that had grown form 275 to 791 employee during the last
ten years. The more he thought about the matter, the
more puzzled Nelson became. He couldn’t quite put his
finger on the problem, and he didn’t know whether to
report his findings to the company chairman.

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Caselet-1 Jack Nelson’s Problem (What)

What do you think is causing some

of the problems in the bank head
office and branches?

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Caselet-1 Jack Nelson’s Problem

• There is clearly a problem with communication,

• lack of consistency in the policies and procedures of
various locations.
• no cohesiveness to the staffing activities of this
organization
• Employee commitment low, attrition high

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Model of HRM

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Caselet-1 Jack Nelson’s
Problem (How?)

What specific functions

should an HRM department
carry out?

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Operative functions of HR

ACQUIRING: Job analysis, HRP, Recruitment, Selection,

Placement, Induction, Internal Mobility

DEVELOPMENT: Competency profiling, Training and

development, Performance & potential management, Career
management, 360 degree feedback

RETENTION: Job design, Work scheduling, Job evaluation,

Compensation administration, Incentives and benefits, Health,
Safety, Welfare & Industrial Relations

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HRM involves

Flow of people: hiring, promotions, transfers, training and

development ; Developing management system that
promote commitment
Flow of information: keeping organizations in touch with
key external realities, managing internal communication,
designing information technology infrastructure;
Integration : Policies and procedures need to be well
integrated and consistence
Flow of work: Developing practices that foster team work
and employees feel valued and rewarded

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 The Harvard Model

Stakeholders Interests
Shareholders
Management
Employee Groups
Government
Community
Unions
HRM Long – Term
HR outcomes
Employee Influence Consequences
Commitment
HR flow Individual well being
Competence
Reward systems Organizational well
Situational Factors Congruence
Work systems being
Workforce characteristics Cost- Effectiveness
Societal well being
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

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Objectives of HRM (WHY)

 Societal objectives
To be ethically & socially responsible to the needs of the
society while minimizing the negative impact of such
demands upon the organization.
 Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
 Personal objectives
To assist employees in achieving their personal goals in
a manner that their personal goals enhance the
individual’s contribution to the organization

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HRM Objectives Supporting Functions
1.Societal 1.Legal compliance
2.Benefits 3.Union-Mgmt
relation
2.Organisational 1.HR Planning
2.Employee relation
3.Selection
4.T &D
5.Appriasal
6.Placement & 7.Assessment
3.Personal 1.T&D
2.Placement
3.Compemsation
4.Assessment

22
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 Model of HRM

TheStakeholders
Harvard Interests
Model
Shareholders
Management
Employee Groups
Government
Community
Unions
HRM Long – Term
HR outcomes
Employee Influence Consequences
Commitment
HR flow Individual well being
Competence
Reward systems Organizational well
Situational Factors Congruence
Work systems being
Workforce characteristics Cost- Effectiveness
Societal well being
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

BITS Pilani, Hyderabad Campus

 Model of HRM

TheStakeholders
Harvard Interests
Model
Shareholders
Management
Employee Groups
Government
Community
Unions
HRM Long – Term
HR outcomes
Employee Influence Consequences
Commitment
HR flow Individual well being
Competence
Reward systems Organizational well
Situational Factors Congruence
Work systems being
Workforce characteristics Cost- Effectiveness
Societal well being
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

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Environment may be understood as all those forces which
have their bearing on the functioning of HR department

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 Forcesofare
Context HRM

General Specific

•Political- Legal •Customers

•Economic •Suppliers
•Technological •Competitors
•Socio-Cultural forces •Unions

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Political –Legal

Legislature (law making body) (parliament, assembly)

executive (law implementing body, government)
, judiciary , (watchdog)

Article 14: equality before law

Article 15: no discrimination
Article 23: no forced labour
Prohibition of child labour, equal wage act, factor act, maternity
leave , workmen compensation, provident fund, gratuity act
etc…
Influences recruitment, placement, training, Employee- relations

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Economics

Economic forces – income level, purchasing power,

savings, debts, literacy, health, male/female ratio,
population mix etc
All these influences quality of labor which in turn impacts
productivity

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Globalization & implications of
global economy

Tendency of firms to extend their sales , ownership

and manufacturing to newer markets abroad
Worldwide company culture
Worldwide recruiting
Global alliance needs highly trained and devoted staff
Deal with virtual workforce
Outsourcing

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Technology

Technology plays a vital role in HR functions, in order to

make people more intellectual and efficient.
Managing well knowledgeable people - incentives, WLB,
Flexi time, profit sharing
HRIS: managing a virtual workforce
managing employee alienation
training & retraining employees to manage obsolescence.
providing work life balance
Ex: bank installed special software that made CSR to handle customer’s
inquiries. Seeking to capitalize on new software, bank upgraded CSR jobs.;
gave training , how to sell other services and thereby improved, profitability.
Other bank didn’t ; just system helped service rep. Handle few more calls

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Socio- Cultural – influence
behaviour of employees

• Culture refers to the complex whole which includes

knowledge, belief, art Morales, laws, customs and other
capabilities and habits acquired by an Individual as a member
of society.
Eg: Tata and L& T Tata’s culture – “Hire the right people and let
them free” L & T’s culture – “ They are known for their
professional approach

• Culture indicates attitude of workers towards work

• Time dimensions which influence HRM (past, present, future)
• Achievement oriented, effort-reward
• Individualistic or collectivism

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Specific environment

Suppliers – For HR dept, suppliers are those who provide

human Resources to an organization. Ex: Consulting
firms, training institutes.
Competitors – Competition plays significant role in HR
function and Activities. Organization need to groom its
employees through well managed HR planning
programmes to withstand competition
Customers – Customers have their own influence on
companies personal Functions . So everybody in the
organization must endeavor to offer products which
gives satisfaction for the money customers pay.

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Specific environment

Unions
A firm’s personal activities will be influenced by it’s own
union’s as well as the union’s of other plants.
A trade union may be understood as association of workers
or management formed to protect their own individual
interest.
All HR activities like recruitment, selection, training,
compensation are carried out in consultation with union
leaders. Eg : The Bokaro steel plant has 68 trade unions.
Calcutta Corporation has about 100 trade unions.

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Models of HRM

TheStakeholders
Harvard Interests
Model
Shareholders
Management
Employee Groups
Government
Community
Unions
Long – Term
HRM HR outcomes
Consequences
Employee Influence Commitment
Individual well being
HR flow Competence
Organizational well
Situational Factors Reward systems Congruence
being
Workforce characteristics Work systems Cost- Effectiveness
Societal well being
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

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Course Handout

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Course Handout

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Semantics
Semantics – HRM vs. PM
Mutuality
Labour management
Legal compliance

HRD and IRM – What are they?

Segments of HRM

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 Difference between PM and HRM
Personnel Management
Separately negotiated
Collective bargaining contracts
Many
Division of labour
Reach temporary truce
Controlled access to courses
personnel procedures
Labour is treated as a tool which is
expendable and replaceable
Interests of the organisation are
uppermost
Precedes HRM
external
HRM
harmonisation
Individual contract
Few
Team work
Manage climate and culture
Learning companies
wide ranging culture, structural
and personnel strategies.
People are treated as assets to be
used for the benefit of an
organisation, its employees and
the society as a whole.
Mutuality of interests
Latest in the evaluation of the subject
internal
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Composition of a HR /
Personnel Department
Owner/Manager

Manager-Personnel Manager-Administration Manager-HRD Manager-IR

Appraisal Training & Development

PR Canteen Medical Welfare Transport Legal

HRP Hiring Grievances Handling Compensation

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IMPORTANCE OF HRM

What can go wrong!

– Hire the wrong person
– High turnover
– People not performing
– Waste time with useless interviews
– Have your company taken to court because of discriminatory
actions
– Have your company cited under occupational safety laws for
unsafe practices
– Unfair and inequitable salaries
– Lack of training
– Commit unfair labor practices

– Small mistakes = huge loses

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Summary of Chapter 1-2

• HRM includes a set of programmes, functions and

activities designed and implemented to maximise
organisational effectiveness along with employee
growth.
 HRM is inclusive of IR, PM and HRD
HRM Harvard Models provide analytical framework for
studying people management
Every manager is HR manager as there is always HR
responsibilities taken by line managers

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Summary of Chapter 1-2

• The HRM environment comprises of both external and

internal forces
• The external environment consists of political-legal,
economic, technological and cultural factors (PEST)
• The internal environment consists of unions, suppliers,
customers , competitors and professional bodies.
• The study of environment enables HR experts to
become proactive in their approach to personnel aspects

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Evaluation

No Name Type Durati Weight

on
EC-1 Quiz-I/ Assignment-I Online - 5%

Quiz-II 5%

Quiz-III/ Assignment-II 5%

EC-4 Lab test 10%

EC-2 Mid-Semester Test Closed Book 2 hours 30%

EC-3 Comprehensive Exam Open Book 3 hours 45%

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