Introduction to Human Resource

Management
Robert Owen
Father of Personal Management
 In year 1810 it was demanded to work for
10 works instituted it in his New Lanark
cotton mills.
 1817 it was constituted the goal of the 8-
hour day and coined slogan 8 hours labour,
8 hours recreation, 8 hours full rest.
 first human resources department was
established by The National Cash Register
Company in 1901
 George Elton Mayo:The Father of
Human Resource Management
 The first personnel management
department began at the National Cash
Register Co. in the early 1900s, according
to an HR Magazine article. After several
strikes and employee lockouts, NCR
leader John H. Patterson organized a
personnel department to handle
grievances, discharges, and safety, as well
as training for supervisors on new laws
and practices
 Human: refers to the skilled workforce in
an organization.
 Resource: refers to limited availability or
scarce.
 Management: refers how to
optimize limited or scarce resource so as to
meet the organization goals and objectives.
 It is meant for proper utilisation of available
skilled workforce and also to make efficient use
of existing human resource into organisation
 HRM
(Human resource management)
Lecture No 04

Introduction to HRM
 Nature
 Inherent Part of Management-This function is
performed by all the managers throughout the
organisation rather that by the personnel department
only.
 People Centered :
It is concerned with all categories of personnel from top to
the bottom of the organisation.
(i) Blue-collar and white-collar workers
(ii) Managerial and non-managerial personnel,
(iii) Professionals and non-professional personnel
 Continuous Process :
It must be performed continuously if the organisational objectives
are to be achieved smoothly.
 Based on Human Relations :
It dealt with the motivation of human resources in the organisation.
Every manager give due attention that person has different needs,
perceptions and expectations. Human relations skills are also
required in training performance appraisal, transfer and promotion
of subordinates
 Personnel Activities :
Personnel activities includes planning, employment,
placement, training, appraisal and compensation of employees.
For the performance of these activities efficiently, a separate
department known as Personnel Department is created inmost
of the organization
pervasive in nature-applicable to all level of the employees
 HRM
(Human resource management)
Lecture No 05
Importance and Objectives of
HRM
 Objectives
i) To provide, create, utilise and motivate employees to
accomplish organisational goals.
(ii) To secure integration of individual and groups in securing
organisational effectiveness.
(iii) To create opportunities, to provide facilities, necessary
motivation to individual and group for their growth with the
growth of the organisation by training and development,
compensation etc.
(iv) To employ the skills and ability of the workforce
efficiently, i.e., to utilise human resources effectively.
(v) To increase to the fullest the employee’s job satisfaction and
self-actualisation; it tries to prompt and stimulate every employee
to realise his potential.
(vi) To create a sense and feeling of belongingness
team-spirit and encourage suggestions from
employees.
(vii) To maintain ethical policies and behaviour
inside and outside the organisation.
(viii) To maintain high moral and good human
relation within the organisation.
(ix) To manage change to the mutual advantage of
individuals, groups, the organisation and the
society.
(x) To ensure that, there is no threat of
unemployment, inequalities, adopting a policy
recognising merit and employee contribution, and
condition for stability of employment.
 Importance

Organisation Social Professional

 Organisational Significance-
 Effective utilisation of available human resources.
 HRM help in attracting and retaining the best people in
the organisation.
 Developing the necessary skills and right attitudes
among the employees through training, development,
performance appraisal, etc.
 Securing willing cooperation of employees through
motivation, participation, grievance handling, etc.
 Reduce labour Turnover
 Ensuring Future with competent and dedicated
employees
 HRM
(Human resource management)
Lecture No 06
Importance and Objectives of
HRM
 Social Significance
 Employment opportunity to the people and
adopt best skill from the society
 Scare talents are put to best use.
 Ensuring the sources of the income to the
society
 Bridge the gap between orgnisation and society
 Eliminating waste of human resources through
conservation of physical and mental health
 Professional Significance
 Developing people on continuous basis to meet
challenge of their job.
 Promoting team-work and team-spirit among
employees.
 Offering excellent growth opportunities to
people who have the potential to rise.
 Providing environment and incentives for
developing and utilising creativity.
 Managing disputes with effective measures.
 Motivation for the development of skill and
capability
 HRM
(Human resource management)
Lecture No 07
Importance and Objectives of
HRM
Scope
 Personnel aspect-This is concerned with
manpower planning, recruitment, selection,
placement, transfer, promotion, training and
development, layoff and retrenchment,
remuneration, incentives, productivity etc.
 Welfare aspect-It deals with working conditions
and amenities such as canteens,, rest and lunch
rooms, housing, transport, medical assistance, educ
ation, health and safety, recreation facilities, etc.
 Industrial relations aspect-This covers union-
management relations, joint consultation, collective
bargaining, grievance and disciplinary procedures,
settlement of disputes, etc.
Challenges of HRM
 Environmental Challenges
 Organizational Challenges
 Individual Challenges
Organizational Challenges
 Internal forces can be controlled and proactive action
taken by manger before converted into serious one.
 Controlling Costs
 Improving Quality
 Developing Distinctive Capabilities
 Restructuring
 Environmental Challenges
 Related to external forces and control by management these can
be regarded as threats to management & should be handled in a
proactive manner.
 Rapid Change- Adoptability and Proactive
 Work Force Diversity- Stereotype
 Globalization
 Legislation
 Technology
 Job & Family Roles
 Lack of Skills
 Legislation
There are certain labor laws that are declared by the government for the
benefits of the working employees. Some of these laws are
disadvantageous to the interests of the organizations If any of such law
is violated, serious actions are taken by the relevant government
authority that may result into serious penalty for the management of the
organization.

 Lack of Skills
Due to many reasons like change in the tastes & preference of customers,
technological change, legal change sectors are expanding. The skills required
in the employment of service sector is also advancing but the graduates of the
technical colleges & universities are groomed according to the latest
requirements. Therefore most of the employees lack the standard required
skills to perform their duties and it becomes a big challenge for HRM to
properly train these new & old employees to become an efficient & effective
workers.
 Developing Distinctive Capabilities
 Another method of gaining competitive advantage is to employ
the people that have distinct capabilities to develop extra ordinary
competence in specific area.
 Restructuring
HR department are now transferred to the other parties in the
shape of outsourcing, shared service center etc. The sizes of HR
department in those organizations are shrinking because most of
functions are performed by outsiders. But in most of the
organizations the HR manager performs all the relevant functions of
HRM.
 Individual Challenges
 The decisions related to the specific individual employees are included
in the individual challenges for the HRM
 Productivity
 Empowerment
 Brain drain
 Ethics & social responsibility
 Job insecurity
 Matching people & organization
 Counter productive behavior
 Conflict ,Groupism and Politics
 Managing Work life balance
 Turnover
 Brain Drain
 One of the challenges for HRM is the detachment of the key potential
employees from the organization which link with the competitors for
higher remunerations etc. In such cases the organization loses its
intellectual property & in many situations the leaving employees at the
higher levels also take with them the potential lower level employees.
This brain drainage is becoming serious issue in the high-Tec
companies.
 Ethics & Social Responsibility
 Under this challenge, the organizations make an effort to benefit some
portion of the society. This is now considered to the social
responsibility of the organization to show favorable behavior towards
the society. The ethics serves as the basic principle for the socially
behavior of the organizations. Within organizations, the HR
departments develop a code of conduct & principles of code of ethics
that serve as the guidance for the personal behavior of the employees
of the organizations. The employees also expect from the management
to show favorable decisions.
 Job Insecurity
 In the recent years, restructuring & downsizing
develops the sense of insecurity of job within the
employees of the organizations. Now many
employees only desire to get a steady job rather
than a job with promotional future. Even most
successful organizations lay off its employees in the
period of cut throat competition. The stock market
also shows favorable results when layoffs has been
made. All these things create a fear among
employees about the insecurity of their jobs which
would hinder their effective performance.
 HRM
(Human resource management)
Lecture No 08
PM & HRM
 Quality of HR Manager
 Creativity-
 Managing conflicts
 Problem-solving skills
 No discrimination or partiality
 Must be approachable
 Strong and appropriate communication skills
 Commitment
 Versatility
 Discipline/Focus
 Clarity in PM and HRM
Meaning The aspect of management that is
concerned with the work force
and their relationship with the
entity is known as Personnel
Management.
The branch of management that
focuses on the most effective use
of the manpower of an entity, to
achieve the organizational goals is
known as Human Resource
Management.

Approach Traditional Modern

Treatment of manpower Machines or Tools Asset

Type of function Routine function Strategic function

Basis of Pay Job Evaluation Performance Evaluation

Management Role Transactional Transformational

Communication Indirect Direct

Labor Management Collective Bargaining Individual Contracts

Contracts

Initiatives Piecemeal Integrated

Management Actions Procedure Business needs

Decision Making Slow Fast

Job Design Division of Labor Groups/Teams

Intuition

Knowledge

Ethically strong
 HRM
(Human resource management)
Lecture No 09
Dr.Manisha Shinde

Structure of HR Department
AND
Duties and responsibilities of HR Manager
 Role of HR Manager

 Handling recruitment process

 Organization structure and planning
 Build HR policies and maintain them
 Rewards and Recognition
 Employee development programs
Human Resources Managers Duties
 Correlating and planning to make the best use of the
employee talents and skills
 Administer the work of support staff and specialists
of their team
 Building a relationship between employee and
organization management
 Guide in helping their team in recruiting and hiring
employee workforce
 Moderate and act on employee benefit programs
 Avoiding and solving different types of conflicts
arising in an organization
 Consulting with department managers over
important organizational issues
Structure of HR Department
 HRM
(Human resource management)
Lecture No 10
Dr.Manisha Shinde

Strategic Human Resource

Management
 SHRM
Strategic Human Resource
Management
Strategy should be
Proactive not reactive
 Strategic Human Resource
Management (SHRM)
 A company can develop a competitive advantage through the
skills and competencies of its people.

 An organization gains competitive advantage by using its

people effectively, drawing on their expertise and ingenuity to
meet clearly defined objectives.

 HR strategies combine all people management activities into

an organized and integrated program to meet the strategic
objectives of an enterprise.

 Strategic Human Resource Management (SHRM) has evolved

as a bridge between business strategy and the management of
human resources.
VISION
 We aspire to be the global steel industry benchmark
for Value Creation and Corporate Citizenship.
MISSION
 Tata Steel recognizes that while honesty and integrity
are essential ingredients of a strong and stable
enterprise, profitability provides the main spark for
economic activity.
Strategy in Business
 It is an action to attain one or more goal of
organisation
 It results from the detailed strategic planning
 It is well defined roadmap of an organisation
 It defines the overall mission, vision and direction
of an organisation
 The objectives of a strategy is to maximize
organisation goal and minimise the
strength of competitor.
 It bridge the gap between “Where we are”
and “Where we want to be”
 Definition of SHRM
 “Strategic human resource management means formulating
and executing human resource policies and practices that
produce the employee competencies and behaviors that the
company needs to achieve its strategic aims.”- Gary Dessler

 Strategic human resource management can be defined as the

linking of human resources with strategic goals and objectives
in order to improve business performance and develop
organizational culture that foster innovation, flexibility and
competitive advantage.
Strategic Planning

 Identify the mission and purpose

 Identify goals
 Identify Objectives
 Objectives must be specific ,measurable,
achivable, realistic and timely mannered
 Implement objectives to meet goal
 Evaluate process
 HRM
(Human resource management)
Lecture No 11
Dr.Manisha Shinde

Strategic Human Resource

Management
 Benefits of SHRM
 Identifying and analyzing external opportunities and
threats that may be crucial to the company's success.
 Provides a clear business strategy and vision for the
future.
 supply competitive intelligence that may be useful in th
strategic planning process.
 recruit, retain and motivate people.
 develop and retain of highly competent people.
 ensure that people development issues are addressed
systematically.
 supply information regarding the company's internal
strengths and weaknesses.
 meet the expectations of the customers effectively.
 ensure high productivity.
 HR strategy examples – What
makes a successful HR strategy
 Competitive salaries.
 Enviable(Desirable) benefits packages.
 Promotion opportunities.
 Continuous staff training and development.
 Transparent and regular communications.
 Focus on employee wellbeing.
 Investment in corporate social responsibility.
 Employee autonomy.