UNIT I

 A strategic approach to the effective management of people in

an organization to business gain competitive advantage and
maximize performance.

 A strategic and comprehensive approach to manage people and

a positive workplace culture and environment.

 The term human resources was coined in the 1960s when the
value of labor was gradually realised and concepts of
motivation and organizational behavior started to take shape.

 HRM is the process of employing people, training , compensating

and formulating policies strategies to retain them

 HRM is concerned with developing and administering programs to

increase business effectiveness.

 It also focuses on fostering a strong employer-employee

relationship.
 Defining and aligning organizational purpose: Making employees
understand the goals of the company and enable employees identify how
their efforts connect with the organization’s purpose.

 Recruitment of best talent by creating, marketing, and selling an

Employee Value Proposition (EVP) To create a clear and accurate image
and purpose about the organization to be created. Therefore, companies
must create, market, and sell an EVP that is true and not mislead potential
employees.

 Focus on employee strengths: Effort by an organisation to understand

employees KSA (knowledge, skill, ability) and assign them roles suited to
the best of their ability and strengths.

 Create organizational alignment: Alignmnt of organization’s objectivesto

employees goals to build a successful and sustainable organizations.
 Staffing is related to hiring process –right from posting a
job to settling the salary package. It involves-

-Developing a staffing plan. To decide the number of

people needed keeping in mind the profits generated
expectations.

-Formulating policies to encourage multiculturalism at

work- people from different backgrounds and a diverse
workforce.

-Recruitment- posting jobs as in websites, newspapers

etc.

-Selection- conducting interviews and tests and

negotiating the compensation package. To be followed by
training, retention, and motivation in the organisation.
 Development of Workplace Policies
-Policies to ensure evenhandedness and stability
within the organization. It includes-

 Discipline process policy

 Vacation time policy
 Dress code

 Ethics policy
 Internet usage policy
 Compensation and Benefits Administration
-To establish a fair and just remuneration system that is up to the
industry standards and motivates people to work for the organization.

-At the same time, organisation must ensure that pay is comparable to
people performing similar jobs.

-Establish a pay system that takes into account factors like number of
years spent with the organization, experience, education, and other
qualifications.

Examples of employee compensation include the following:

-Salary, Health benefits
-retirement plans, Stock purchase plans
-Holidays,Sick leave
-Bonuses
 Retention
-Retention implies motivating employees to
stay with the organization. Compensation is a
major factor in employee retention.

-Other important factors for employee

retention are-
Issues on the job
Challenges with their manager
Poor fit with organizational culture
Poor workplace environment
 Training and Development
- Emphasis on growth, learning and develop new
skills. This results in higher productivity for the
organization.

-Training is also a key element in employee

motivation resulting in increased employee
retention.

-Examples of training programs-

 Job skills training- how to run a specific computer
program
 Training on communication
 Team-building activities
 Policy and legal training-ethics
Dealing with Laws Affecting Employment
Awareness regarding laws that affect the workplace

-Discrimination laws
-Health-care requirements
-Compensation requirements such as the
minimum wage
-Worker safety laws
-Labor laws

 Vigilance on the changes taking place and adapt

accordingly.
 Worker Protection

A major concern in organizations. Standards of law

set to ensure worker safety.

Organisation must comply to the laws framed by the

Government. Worker protection issues include –

 Risk of use of chemical hazards.

 Requirements of heating and ventilation.

 Protection related to right of privacy of employee

information.
 Awareness regarding the External Factors
HR manager also needs to focus the external forces
at work affecting the organization over which
organisations company have no control but they
positively or negatively affect human resources.

Example of external factors affecting HR-

 Globalization
 Employment laws
 Diversity of the workforce
 Technology
 Demand and Supply of labour
 Economic conditions