Human Resource Management

Part - 1

Madeti Victor Prasad Kumar

HR CONSULTANT

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Meaning & Definition

Human Resource Management (HRM)

is a management function that helps
managers recruit, select, train and
develop employees of an organization.

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Meaning & Definition

Human Resource Management (HRM)

The policies and practices involved in
carrying out the “people” or human
resource aspects of a management
position, including recruiting,
screening, training, rewarding, and
appraising.
Introduction, Objectives &Functions of HRM
by Victor Prasad
 Meaning & Definition

1. It is people who manage organizations

2. HRM function is not confined to business
establishment only but also to educational,
health, NGO’s,

HRM is the planning, organizing, directing and

controlling of the procurement, development,
compensation, integration, maintenance and
separation of Human Resource to the end that
individual, organizational and social objectives
are accomplished.
Introduction, Objectives &Functions of HRM
by Victor Prasad
 PM vs HRM

Personnel Management viewed labour

as a tool, routine activity – hire
employee and maintained personal files,
not considered a part of strategic
management of business, PM preceded
HRM

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Relationship Between HRM and HRD

Human Resource Development (HRD)

is just one of the functions within HRM

Human Resource Management (HRM)

encompasses many functions

Introduction, Objectives &Functions of HRM

by Victor Prasad
 HRD

HRD is more concerned with

Training and Development
Career Planning and Development
Performance & Potential Appraisals
Counseling
Succession Planning
Welfare
Introduction, Objectives &Functions of HRM
by Victor Prasad
Primary Functions of HRM
Human Resource Planning

Equal Employment Opportunity

Staffing (Recruitment and Selection)

Compensation and Benefits

Employee and Labor Relations

Health, Safety, and Security

Human Resource Development

Introduction, Objectives &Functions of HRM
by Victor Prasad
Secondary Functions of HRM

Organization and Job Design

Performance Management/
Performance Appraisal Systems

Research and Information Systems

Introduction, Objectives &Functions of HRM

by Victor Prasad
 SCOPE OF HRM

NATURE

EMPLOYEE
PROSPECTS
HIRING

HRM
INDUSTRIAL
RELATIONS REMUNERATION

EMPLOYEE EMPLOYEE
MAINTENANACE MOTIVATION

Introduction, Objectives &Functions of HRM

by Victor Prasad
 SCOPE of HRM
Introduction to HRM

Employee Hiring

Employee and Executive Remuneration

Employee Motivation

Employee Maintenance

Industrial Relations
Introduction, Objectives &Functions of HRM
by Victor Prasad
 OBJECTIVES of HRM

Primary objective of
HRM is to ensure the
availability of a
competent and willing
workforce to an
organisation
Introduction, Objectives &Functions of HRM
by Victor Prasad
 4 fold objectives of HRM

Societal

Organisational

Functional

Personal

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Societal Objectives

To be ethically and socially responsible to

the needs and challenges of the society
while minimising the negative impact of
such demands upon the organisation

Ex – The society may limit HR decisions

though laws that enforce reservation in
hiring, discrimination, safety etc., which
are societal concern
Introduction, Objectives &Functions of HRM
by Victor Prasad
 Societal Objectives – Supporting Functions

1. Legal Compliance
2. Benefits
3. Union-Management Relations

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Organisational Objectives

To recognise the role of HRM in bringing

about organisational effectiveness.

We all accept that HRM Department

exists to serve the rest of the
organisation

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Organisational Objectives – Supporting Functions

1. Human Resource Planning

2. Employee Relations
3. Selection
4. Training & Development
5. Appraisal
6. Placement
7. Assessment

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Functional Objectives

To maintain the department’s

contribution at a level appropriate to the
organisation’s needs.

The HRM Department’s level of service

must be tailored to fit the organisation it
servers

Introduction, Objectives &Functions of HRM

by Victor Prasad
Functional Objectives – Supporting Functions

1. Appraisal
2. Placement
3. Assessment

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Personal Objectives
To assist employees in achieving their
personal goals, which shall in turn
enhance the individual employee’s
contribution to the organisation.

Personal objectives are to be met to

enable employees to maintain, retain and
motivate, otherwise, the performance
and satisfaction may decline resulting
separation from the organisation by
resignation.
Introduction, Objectives &Functions of HRM
by Victor Prasad
 Personal Objectives – Supporting Function

1. Training & Development

2. Appraisal
3. Placement
4. Compensation
5. Assessment

Introduction, Objectives &Functions of HRM

by Victor Prasad
 O-Chart

CHRO

MANAGER – HR MANAGER - ADMIN MANAGER - HRD MANAGER - IR

HR PLANNING PR APPRAISAL

TRAINING &
HIRING CANTEEN
DEVELOPMENT

COMPENSATION WELFARE

GRIEVENCE
TRANSPORT
HANDLING

MEDICAL

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Evolution of HRM
Period Development Outlook Emphasis Status

1920s- Beginning Pragmatism of Statutory, Welfare, Clerical

1930s Capitalists paternalism

1940s- Struggling for Technical & Introduction of Administrative

1960s recognition legalistic techniques

1970s- Achieving Professional, Regulatory, Managerial

1980s sophisticati legalistic, conforming,
on impersonal imposition of
standards on other
functions
1990s Promising Philosophical Human Values, Executive
onwards productivity
through people
Introduction, Objectives &Functions of HRM
by Victor Prasad
 Line and Staff Aspects of HRM

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.

Introduction, Objectives &Functions of HRM

by Victor Prasad
 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 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

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Functions of the HR Manager

A line function
 The HR manager directs the activities of the
people in his or her own department and in
related service areas (like the plant, cafeteria).
A coordinative function
 HR managers also coordinate personnel activities,
a duty often referred to as functional control.
Staff (assist and advise) functions
 Assisting and advising line managers is the heart
of the HR manager’s job.

Introduction, Objectives &Functions of HRM

by Victor Prasad
 HR and Authority

Authority
 The right to make decisions, direct others’ work,
and give orders.
Implied authority
 The authority exerted by an HR manager by virtue
of others’ knowledge that he or she has access to
top management.
Line authority
 The authority exerted by an HR manager by
directing the activities of the people in his or her
own department and in service areas.

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Employee Advocacy

HR must take responsibility for:

 Clearly defining how management should
be treating employees.
 Making sure employees have the
mechanisms required to contest unfair
practices.
 Represent the interests of employees
within the framework of its primary
obligation to senior management.

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Examples of HR Job Duties

Recruiters
 Search for qualified job applicants.
Equal employment opportunity (EEO)
coordinators
 Investigate and resolve EEO grievances,
examine organizational practices for
potential violations, and compile and submit
EEO reports.
Job analysts
 Collect and examine information about jobs
to prepare job descriptions.

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Examples of HR Job Duties (cont’d)

Compensation Managers
 Develop compensation plans and handle
the employee benefits program.
Training Specialists
 Plan, organize, and direct training
activities.
Labor Relations Specialists
 Advise management on all aspects of
union–management relations.

Introduction, Objectives &Functions of HRM

by Victor Prasad
 HR Department Organizational Chart (Large Company)

Figure 1–1
Source: Adapted from BNA Bulletin to Management, June 29, 2000.
Introduction, Objectives &Functions of HRM
by Victor Prasad
 Cooperative Line and Staff HR Management

1. The line manager’s responsibility is to specify

the qualifications employees need to fill
specific positions.
2. HR staff then develops sources of qualified
applicants and conduct initial screening
interviews
3. HR administers the appropriate tests and
refers the best applicants to the supervisor
(line manager), who interviews and selects
the ones he or she wants.

Introduction, Objectives &Functions of HRM

by Victor Prasad
HR Organizational Chart (Small
Company)

Figure 1–2
Introduction, Objectives &Functions of HRM
by Victor Prasad
 Handles It? (percentage of all
employers)

Note: length of bars represents prevalence of activity among all surveyed employers.
Figure 1–3
Source: HR Department Benchmarks and Analysis,” BNA/Society for Human Resource Management, 2002.
Introduction, Objectives &Functions of HRM
by Victor Prasad
HR Management

HR’s changing role:

“ Personnel departments”
 Took over hiring and firing from supervisors, payroll,
and benefit plans administration.
 In the 1930s added “protecting the firm in its
interaction with unions” responsibilities (labor relations).
 Assumed organizational responsibilities for equal
employment and affirmative action.

Introduction, Objectives &Functions of HRM

by Victor Prasad
A Changing HR Environment
Globalization
Technological Advances
Exporting Jobs
The Nature of Work
Workforce Demographics

Introduction, Objectives &Functions of HRM

by Victor Prasad
 Employment Exodus:
Projected Loss of Jobs and Wages

Figure 1–4
Source: Michael Shroeder, “States Fight Exodus of Jobs,” Wall Street Journal, June 3, 2003, p.
Introduction, Objectives &Functions of HRM
84. by Victor Prasad
Questions ?

Introduction, Objectives &Functions of HRM

by Victor Prasad