HUMAN RESOURCES

MANAGEMENT

B D Singh
Sr. Prof.
IMT Ghaziabad
 Importance of HRM?
“The future has suddenly and dramatically become the present”
---- R. Babson

“The world economy is going through a seismic shift to intellectual

capital from capital investment” ---John Byrne

 HRM has never been more necessary than today .

 H R M necessary for all managers.
 Changes & more changes:-
 High levels of uncertainty about basic business conditions
 Rising costs
 Rapid technological change
 Changing demographics
 Limited supply of required talent
 Rapidly changing government legislations and regulations
 Increased globalization
 Increased diversity in work force
 changing business scenario- competitiveness only rule of the game.
 We require winners.
 Winning will spring from organizational capabilities-
such as,- speed, responsiveness, agility, learning &
adapting capability & employees competency.
 The ability to learn faster than your competitor may
be only sustainable competitive advantage. This can
be done only though people.
 It is now universally accepted that success comes
through people route.
 HR, therefore, is most strategic of all the resources.
 Organizations are focusing on building competence
 Focus on Building
 Skill Competence
performance= Skill to Work (can work) + Commitment- Will to work

 Infrastructures
 Machines
 Materials
 Money
 Men
 Will to Work / will not to work
 Hidden dynamism of the HR
 Thinking being
 Feeling being
 Full of emotions

 Fusion of these hardware & software unlashes infinite organization synergy

 This can grow only in symbiotic working and Synergetic Culture
 Human resource? Different than other sources
Behaviorism in management
 Excellence through People
 Organizations have realized that excellence comes through people route only –
 Peter & Waterman – “In search of excellence”
 Craze for creativity

 Concern for customer

 Care for people

 People are organization's –think-tanks, thought leaders

 People are change-masters
 People are key to Innovation & Creativity
 People create wealth
 People create excellence
 Excellence is journey and not destinations
 In “Master of Change” William Boast writes, “If the Corporation

fails the human elements, the very ground upon which it depends
for its stability- will collapse. Organizations exist for the people
they serve.”
 The real business of business is people; if you forget that basic

truth, you can close the door of your business right now.
 Building human capital/ intellectual capital – excellence
Understanding HRM
 Definition
 HRM represents the human dimension of Organization

 HRM is a process of bringing people and organization together so that

the goals of each other is met.
 Human resource management (HRM) involves all management
decisions and practices that directly affect or influence the people, or
human resource, who work for the organization.
 HRM is the planning, organizing, directing and controlling of
procurement, development, compensation, integration, maintenance and
separation of human resources to the end so that individual,
organizational and social objectives are accomplished.
 Planning

 Leading

 Controlling

 Organizing

 Staffing

 A set of programmes, functions and activities are designed to maximize

employees as well as organizational objectives.
 Hatch (Resourcing), match (Establishment, Maintenance, Development),
Despatch (Exit, separation, etc.) -Divine Trinity
 Acquiring – human resource planning,
recruitment, selection
 Allocating- placement, orientation,
socialization
 Developing- training, development, career
management
 Managing performance- performance
appraisal, compensation, discipline
 Maintaining – benefits, health/safety
 Why Is HR Management Important to All Managers?

 Hire the wrong person for the job

 Experience high turnover
 Find your people not doing their best
 Waste time with useless interviews
 Have your company cited under occupational safety laws
for unsafe practices
 Have your company taken to court because of your
discriminatory actions/non compliance of laws etc
 Have some of your employees think their salaries are unfair
and inequitable relative to others in the organisation
 Allow a lack of training to undermine your department’s
effectiveness
 Commit any unfair labour practices
 Line Managers’ Human Resource Management Responsibilities
 The direct handling of people is, and always has been, an
integral part of every line manager’s responsibility, from
president down to the lowest-level supervisor.
 Placing the right person on the right job

 Starting new employees for jobs that are new to them

 Training employees for jobs that are new to them

 Improving the job performance of each person

 Gaining creative cooperation and developing smooth working

relationships
 Interpreting the company’s policies and procedures

 Controlling labor costs

 Developing the abilities of each person

 Creating and maintaining development morale

 Protecting employees’ health and physical condition.

Evolution of the Personnel
Function
Concept What is it all about?

The Commodity Labour was regarded as a commodity to be bought and sold.

concept Wages were based on demand and supply. Government did
very little to protect workers.

The Factor of Labour is like any other factor of production, viz, money,
Production concept materials, land, etc. Workers are like machine tools.

The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room
will have a positive impact on workers’ productivity

The Paternalistic Management must assume a fatherly and protective attitude

concept/ Paternalism towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.
 To improve productivity, physical, social and psychological
needs of workers must be met. As Mayo and others stated,
The Humanitarian
money is less a factor in determining output, than group
concept
standards, group incentives and security. The organisation is a
social system that has both economic and social dimensions.

The Human Resource Employees are the most valuable assets of an organisation.
concept There should be a conscious effort to realise organisational goals
by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a

company. They should have a feeling that the organisation is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.
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Growth in India

 Commodity phase
 Welfare phase
 Legal phase
 Establishment phase
 Development phase (deliverables)
 Partners in the business

The Strategic Role Of Human Resources Management

1-18

Phases of personnel management;

Period Emphasis Status Roles

1920 – 30 Welfare management Clerical Welfare
Paternalistic practices administrator

1940 – 60 Expanding the role to cover Administrative Appraiser

Labour, Welfare, Industrial Advisor
Relations and Personnel Mediator
Administration- rule orientation Legal advisor
Fire fighting

1970 – 80 Efficiency, effectiveness Developmental Change agent

dimensions added Integrator
Emphasis on human Trainer
values, aspirations, Educator

1990s – Incremental productivity Proactive, Developer

onwards gains through human growth-oriented Counsellor
assets – strategic role Coach
Mentor
Problem solver

The Strategic Role Of Human Resources Management

1-19

Shifts in HR management in India

Traditional HR practice Emerging HR practice

 Administrative role  Strategic role

 Reactive  Proactive

 Separate, isolated from  Key part of organisational

company mission mission

 Production focus  Service focus

 Functional organisation  Process-based organisation

 Individuals encouraged,  Cross-functional eams,

singled out for praise, teamwork most important

rewards
 People as expenses  People as key
investments/assets

The Strategic Role Of Human Resources Management

Differences between key HR skills in
traditional HRM & SHRM
 Traditional HRM
 Specialist
 A good policy & procedure
writer current focus
–hierarchy focused
 Few financial or marketing
skills
 Stays “within the box”
 Focused on the internal
organisation
 Factual communicator
 A nationalist
 Strategic HRM
 A good communicator
 Current & future focus
 Speaks the language of business
 Customer-focused, good customer
relations skills
 Understanding of these aspects of
the business
 Thinks “outside the box”
 Focused on the internal
organisation and the broader
society
 Persuader
 crusader
 An internationalist
The Transition from Reactive HRP to Proactive HRP

Changes in business, economic, social, legal, and

technological environments

Traditional HRP Reactive

Strategic business decisions taken in isolation without

considering their HR implications

Contemporary HRP Proactive

Integration of business planning and HRP. All strategic decisions
consider HR issues
Six key elements required in developing SHRM within a firm.

3. Internally transforming HR staff and structure

4. Enhancing administrative efficiency
5. Integrating HR into the strategic planning process
6. Linking HR practices to business strategy and to one another
7. Developing a partnership with line management
8. Focusing on the bottom-line impact of HR and measurement of
that impact
 Three Roles in the New HR Organization

Expert Resource Teams Front-line Business Partners Central Service Center

 Develop top management’s Manage client expectations – Meet all current service
strategies for new policies and contracting and execution obligations
practices
Become thought leaders in the filed – Develop people strategies for their Manage all “transactional”
specialists/designers operating units – with line leaders support processes
 Manage development projects Become decentralized, business unit Drive consolidation and
aligned “generalists” productivity
 Benchmark functional excellence Stay close to the business Direct projects to eliminate
work
 Develop HR know-how Tailor and implement new practices/ Enable work force access to
programs to fit information tools
Assure alignment of total HR system Identify new applications Apply information systems to
with company strategy automate all necessary
services
 Support roll out of programs : teach Manage client projects Consult in systems design
other how and information requirements
 Support consultants with “best Provide linkage between business
practices” units and the focus on HR issues
 Exchange best practices
Dimensions Personnel Human Resource
Management Management

Time & planning short-term, reactive, Long-term, proactive,

perspective adhoc, marginal strategic integrated

Employee relations Pluralistic, collective low Singular, individual, high

perspective trust trust

Psychological contract Compliance Commitment

Referred structures/ Bureaucratic, Organic, developed,
systems mechanistic, centralized, flexible roles
formal defined roles

Evaluation criteria Cost minimization Maximum utilization

(human asset
accounting)

Control systems External control Self-controls

 HRM in the new millennium
 The seven most essential skills for HR executives in the future are:
 Global operating skills
 Business and financial savvy
 Strategic, visioning, critical thinking, and problem- solving skills
 Using information technology
 Deep HR technology savvy
 Change management skills
 Organizational effectiveness
 Six key roles for HR leaders
 Change agent
 HR strategist
 Business strategist
 HR functional aligner
 Partner to General Managers
 Problem solver and consultant
 Line managers needed HR to do the following:
 Share responsibility for performance & profitability
 Be customer driven and a business partner with a broad focus
 Focus on solutions, not activities
 Be creative & strategic
 Initiate, lead, and facilitate change
 Help develop global managers
 Act with urgency
 Opportunities, Challenges & Responsibilities of HR
by PROF. DAVE ULRICH
 HR should manage the process of making change
happen
The lessons of change include:
 Leading: establishing a leadership brand throughout the

organisation consistent with the change, creating a felf need:

knowing why vs. what,
 Envisioning: having a clear sense of where we are going and
seeing small first steps to getting there (tipping point)
 Engaging: getting buy in from everyone – personal ownership,
Decision making: translating visions into decisions.
 Institutionalizing: making change a natural act, a pattern not an
event, a part of the organization not an individual initiative &
monitoring & learning: tracking the right stuff & learning from it.
 HR should create learning disciplines
 Learning is the ability to generate and generalize ideas with
impact .Learning is not ideas, but ideas with impact.
 HR should partner with target customers by engaging
them
 One must remember that customer service is not market share,
but customer share.
 HR should govern transactions more efficiently &
transformation more effectively
 This is because HR is being divided into transaction and
transformation as we move into the future.
 HR professionals should make personal commitments to
upgrade actions, roles & competences
 For HR professionals to deliver value they need to take on the
following roles,

 of a coach,
 an architect,
 an employee advocate,
 human capital steward,
 a functional expert
 , a strategic partner & a leader.