Unit 1-IHRM

Introduction to HRM & Framework
 Definitionand Concept of HRM.

 Evolution of HRM.
 Nature and Scope of HRM.
 HRM: Functions and Objectives.
 HRM: Policies and Practices.
 Nature of SHRM.
 Global Competitiveness and Nature of HRM.
 Linkage of Organisational and HR strategies.
 SHRM Models.
Dr.Anuradha Phadnis 2
 “The HRM is the process of attracting, holding and
motivating all manager line and staff.” By Dunn and
Stephens.
 HRM is “that part of management which is concerned with

people at work and with their relationship within an
enterprise. Its aim is to bring together and develop into an
effective organization of the men and women who make up
an enterprise and having regard for the well-being of the
individuals and of working groups, to enable them to make
their best contribution to its success.” by NIPM.
 HRM is concerned with the human beings in an
organization.
 “The management of man” is a very important and
challenging job because of the dynamic nature of the
people.
 No two people are similar in mental abilities, tacticians,
sentiments, and behaviors; they differ widely also as a
group and are subject to many varied influences.
 People are responsive, they feel, think and act therefore

they can not be operated like a machine or shifted and
altered like template in a room layout.
 They therefore need a tactful handing by management
personnel.”
Evolution of HRM in INDIA
Period Development Outlook Emphasis Status

Status
1920 – Beginning Pragmatism Statutory, welfare, Clerical
1930’s paternalism
1940 – Struggling for Technical, Introduction of Administrative

1960’s recognition legalistic techniques
1970 – Achieving Professional, Regularity, Managerial
1980’s sophistication legalistic, conforming,
impersonal imposing of
standards on other
functions.
1990’s Promising Philosophical Human values, Executive

productivity thru
people
Functions of
HRM
Managerial Operational
Planning Procurement
Organising Development
Staffing Compensation
Directing Maintenance
Controlling Integration
Societal
Objectives
Organisational
Objectives
Functional
Objectives
Personal
Objectives
PERSONAL
 It is concerned with the optimum utilization of the human

resources within and organization.
 It is concerned with the creation of conditions in which each
employee is encouraged to make his best possible
contribution to the effective working of the undertaking.
 It is also concerned with the development of the sense of
mutual respect and trust between management and workers
through sound relations.
 It endeavors to increase the productive efficiency to the
workers through training, guidance and counseling and
 It tries to raise the morale of the employee.
FUNCTIONAL
• To maintain the contribution of department at

an appropriate level organization should fulfill
the needs.
• Resources are wasted when HRM is either more

or less sophisticated to suit the organizations
demands.
ORGANIZATIONAL
• To recognize the role of HRM in bringing about

organizational effectiveness.
• HRM is not an end itself. It is only a means to assist
the organization with its primary objectives.
• Simply stated, the department exist to serve the
rest of the organization.
SOCIETAL
• To be ethically and socially responsible to the needs and

challenges of the society while minimizing the negative
impact of such demands upon the organization.
• The failure of organizations to use their resources for
the society’s benefit in ethical way may lead to
restrictions.
• For example, the society may limit HR decisions through
laws that enforce reservation in hiring and laws that
address discrimination, safety or other such areas of
social concern.
 HR policies and procedures
are required to ensure that
human resource
management issues are
dealt with consistently in
line with the values of the
organization on how
people should be treated,
and that legal
requirements are met.
 A policy provides continuing guidelines and
generalized guidance on how HR issues should be
dealt with to ensure that an appropriate approach
is adopted throughout the organization.
 A procedure spells out precisely what steps should
be taken to deal with major employment issues
such as grievances, discipline, capability and
redundancy.
 Equity.
 Consideration.
 Respect.
 Organizational learning.
 Performance through
people.
 Quality of working life.
 Working conditions.
Specific HR policies cover:
 age and employment;  grievances;
 AIDS;  health and safety;
 bullying;  managing diversity;
 discipline;  promotion;
 e-mails and the internet;  redundancy;
 employee development;  reward;
 employee relations;  sexual harassment;
 employee voice;  substance abuse;
 employment;  work–life balance.
 equal opportunity;
 HR procedures set out the ways in which certain
actions concerning people should be carried out by
the management or individual managers.
 In effect they constitute a formalized approach to

dealing with specific matters of policy and practice.
 The main procedures are: discipline, capability and

redundancy.
DIMENSION P.M. H.R.M.
1)Employment Careful delineation of Aim to go beyond
contract written contracts contract
2)Rules Importance of devising Can do outlook,
clear rules impatience with rules
3)Guide to Mgmt. Procedures Business need
4)Behaviour Norms/customs & Values/ mission

referent. practices
5)Managerial task- Monitoring Nurturing

-labor
6)Key relations Labor Mgmt. Customer
7)Initiatives Piecemeal Integrated
8)Speed of decision Slow Fast
9)Mgmt. Role Transactional Transformational
leadership
10)Communication Indirect Direct
11)Prized Mgmt. skills Negotiation Facilitation
12)Selection Separate, Integrated, Key task
marginal task
13)Pay Job evaluation Performance related
(fixed grades)
14)Conditions Separately negotiated Harmonization
15)Labour Mgmt. Collective-bargaining Individual contracts
contracts
16)Job categories & Many Few
grades
17)Job design Division of labor Team work
18)Conflict handling Reach temporary Manage climate &
truce culture
19)Training & Controlled access to Learning Companies.
Development courses
20)Focus of attention Personnel Wide-ranging
for interventions procedures cultural & personnel
strategies
21)Respect for Labor is treated as People are treated as
employees a tool which is assets to be used for
expendable & the benefit of an org.,
replaceable its employees & the
society as a whole
22)Shared interests Interests of the Org. Mutuality of interests.
are uppermost
23)Evolution Precedes HRM Latest in the evolution
of the subject
1) Fairness & Firmness,
2) Tact & resourcefulness,
3) Sympathy & consideration,
4) Knowledge of labour
& other terms,
5) Broad social outlook,
6) Academic Qualifications,
7) Competency, confidence,
8) long-term perspective.
 SHRM is the explicit link HRM has with the strategic
mgmt. process of the organization.
 In simple terms, strategic HRM is all about

systematically linking people with the firm.
 As a body of ideas, this field asserts a critical

relationship between environment, overall business
strategy and human resource strategies.
 It also emphasizes coordination or congruence

among the various HR practices like HR planning,
recruitment, selection, training, development,
compensation, retention, evaluation and promotion
of personnel within an organization.
The matching model of HRM as developed by Fombrun, Titchy, and
Devanna (1984) is illustrated below.
Rewards
Performance Performance
Selection
management
Development
 Define HRM. As a HR Manager of a MNC, how would
you face the challenges of the modern business
practices?
 What is SHRM. Explain the process of SHRM
implemented in organizations for overall
development.
 Discuss the Devanna et.al SHRM matching model.
 Explain various functions of HRM and differentiate
between HRM & PM.

Unit 1-IHRM

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Unit 1-IHRM

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Introduction to HRM & Framework

 Definitionand Concept of HRM.

 HRM is “that part of management which is concerned with

 People are responsive, they feel, think and act therefore

Period Development Outlook Emphasis Status

1940 – Struggling for Technical, Introduction of Administrative

1990’s Promising Philosophical Human values, Executive

 It is concerned with the optimum utilization of the human

• To maintain the contribution of department at

• Resources are wasted when HRM is either more

• To recognize the role of HRM in bringing about

• To be ethically and socially responsible to the needs and

 In effect they constitute a formalized approach to

 The main procedures are: discipline, capability and

4)Behaviour Norms/customs & Values/ mission

5)Managerial task- Monitoring Nurturing

 In simple terms, strategic HRM is all about

 As a body of ideas, this field asserts a critical

 It also emphasizes coordination or congruence

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