Module 1

2023
NIST Institute of Science and Technology (Auto)
HUMAN
RESOURCE
MANAGEMENT
(22 MBA 103)
Instructor
Dr. Amarnath Padhi
amarnath.padhi@nist.edu
Module(s)
2023
Module -1: Introductions to HRM
 Definition, nature and scope of HRM

 Evolution of HRM
 Challenges of HRM
 Functions of HRM
 Strategic HRM and HRD
 HR profession and HR department
 Recent developments in HRM (National and Global)
10/22/2023 10:41 PM Class- 2023 | HRM (22 MBA 103) | Module 1 | Dr. Amarnath Padhi 2
2023
Module -2: HRM Planning (HRP)

 HRP-meaning, importance and process
 Demand and supply forecasting
 Factors affecting HRP
 Selection Process- screening
 Job analysis- process and methods.
2023
Module -3: HRM Process
 Recruitment and Selection:

• Recruitment: process, sources and methods
• Steps in selection.
 Performance Appraisal:
• Need and importance
• Performance appraisal process
• Methods of performance appraisal
 Wages and Salary Management:
• Wage determination, types of wages
• Salary structure, fringe benefits, executive compensation.
 Training and Development:

• Types, purpose and benefits
2023
Module -4: Follow Up Actions

 Promotion, transfer and separation
 Organization citizenship behaviour
 HRIS (Human Resource Information System)
 Competency mapping
 Talent management
 Employee engagement.
BOOK(s)
2023
2023
2023
2023
Module 1
2023
Introductions to HRM
 Definition, nature and scope of HRM
 Evolution of HRM
 Challenges of HRM
 Functions of HRM
 Strategic HRM and HRD
 HR profession and HR department
 Recent developments in HRM (National and Global)
2023
Definitions, nature and scope of HRM
 The term HRM is used in a confusing variety of ways.

 In its broadest sense, HRM can be used as a generic term to describe any
approach to managing people.
 It refers to a collection of policies used to organize work in the employment

relationship. Therefore, HRM is concerned with recruitment, selection,
learning & development, reward, communication & employee involvement,
teamwork & performance management.
 A distinctive approach to employment management through the strategic

deployment of a highly committed and capable workforce, using an array of
cultural, structural and personnel techniques.
2023
 Some commentators have argued that HRM is essentially about creating a

climate of employee commitment and cooperation, while others have relate it
to policies for managing people that are designed to further the strategic
goals of the organisation.
 The concept of “HRM” implies that employees are possibility(s) of an

employer.
‘soft’ and ‘hard’ variants of HRM:

 ‘soft HRM’ used to describe approaches aimed at enhancing the commitment,
quality and flexibility of employees.
 ‘hard HRM’ was used to describe the emphasis on strategy where human
resources are deployed to achieve business goals.
2023
 Human resources have these necessary qualities:

 Human resources are valuable ( possibilities).
 Human resources are rare (Skills and knowledge)
 Human resources cannot be imitated ( High performer employee)

 Human resources have no good substitutes (Abilities).
These qualities imply that human resources have enormous

potential. An organization realizes this potential through the
ways it practices human resource management
“Management of human resource is essential”
2023
Political
Hard HRM Practices Forces Matching Model of
(or) HRM
Strategic HRM
Economic Cultural
Forces Forces
Mission
and
Strategy
Organiz
- ational HRM
Culture
2023
Nature of HRM
 HRM involves management functions like planning, organizing, directing and
controlling.
 It involves development, maintenance and management of human resource.
 It helps to achieve individual, organizational and social objectives.
 HRM as a multidisciplinary subject it includes the study of management

psychology communication, economics, political science and sociology.
 It involves team spirit and team work.
HRM refers to a set of programmes, functions and activities designed and carried
out in order to maximize both employee as well as organizational effectiveness.
Scope of HRM
2023
Analysis and design of work
HR Planning
Recruitment and Selection
Training and Development
Performance Management
Employee Relations
Personal Policies
Employee data and Information
Compliance with law
Support for Strategy
2023
Scope of HRM
 Job Analysis: The process of getting detailed information about jobs.
 Job Design: The process of defining how work will be performed and
what tasks/skills will be required in a given job.
2023
Scope of HRM
 The objective is to ensure that the organization has the right types of
persons at the right time at the right place and at the right cost
HR Planning
(strategic planning).
 It develops strategies (long-term and short-term) to meet the man-

power requirement.
2023
Scope of HRM
 Recruitment: The process through which the organization seeks

(sources) applicants for potential employment.
 Selection: The process by which the organization attempts to identify

applicants with the necessary knowledge, skills, abilities, and other
characteristics that will help the organization achieve its goals.
2023
Scope of HRM
 Training: An organization’s planned efforts to help employees acquire

job-related knowledge, skills, abilities, and behaviours, with the goal of

applying these on the job.
 Development: The acquisition of knowledge, skills, and behaviours that

improve an employee’s ability to meet changes in job requirements.
2023
Scope of HRM
 Performance Management: The process through which managers

ensure that employees’ activities and outputs contribute to the
organization’s goals. (Performance appraisal system)
2023
Scope of HRM
 Organizations often depend on human resource professionals to help

them maintain positive relations with employees. (Psychological

contract)
Employee Relations
 The human resource department can also expect to handle certain

kinds of communications from individual employees.
 The HR department maintains communication with union

representatives to ensure that problems are resolved as they arise.
2023
Scope of HRM
 All the human resource activities require fair and consistent decisions
Personal Policies
(making), and most require substantial record keeping, ability to

think ethically and a broad understanding of business activities.
 Organizations depend on their HR department to help establish

policies related to hiring, discipline, promotions, and benefits.
2023
Scope of HRM
 All aspects of HRM require careful and discreet record keeping from
processing job applications, to performance appraisals, benefits
enrollment, and government-mandated reports.
 Workforce (HR) Analytics: The use of quantitative tools and scientific

methods to analyze data from human resource databases and other
sources to make evidence-based decisions that support business
goals.
2023
Scope of HRM
 Ensuring compliance with laws (HR) requires that human resource

Compliance with law
personnel keep watch over a rapidly changing legal landscape.
 Lawsuits that will continue to influence HRM practices concern job

security. Because economic or competitive conditions can force
companies to close facilities.
2023
Scope of HRM
 Today’s HR professionals need to understand the organization’s

business operations, culture, develop talent for present and future
needs, and to craft effective HR strategies ( called as a Strategist).
2023
Scope of HRM

Employee Relations
Compliance with law

Personal Policies
HR Planning
Organizational
Performance
Fig: Human Resource Management Practices
Managers and economists traditionally have seen human resource management

as a necessary expenses, rather than as a source of value to their organizations.
(Strategic HRM)
2023
FUNCTION RESPONSIBILITIES
Analysis and design of work Work analysis; job design; job descriptions
Recruitment and selection Recruiting; job postings; interviewing; testing

Training and development Orientation; skills training; career development programs
Performance management Performance measures; preparation and administration of

performance appraisals; discipline.
Compensation and benefits Wage and salary administration; incentive pay; insurance;
vacation leave administration; retirement plans.
Employee relations Attitude surveys; labor relations; employee handbooks,

labor law compliance.
Personnel policies Policy creation; policy communication
Employee data and information systems Record keeping; HR information systems; workforce
analytics
Compliance with laws Policies to ensure lawful behavior; reporting; posting

information
Support for strategy (HRP) Human resource planning and forecasting; talent
management; change
Management
2023
Evolution of HRM
Employee Welfare (1900)

Personnel Administration (1920-1930)
Personnel Management ( 1940-1960)
Personnel/Human resource management (1970-1980)
Human resource management (1990)
Strategic HRM (2000)
HR Analytics (2020)
2023
Data Driven
Decisions-
HR Analysts
(2020)
High Human Capital

/HR Business
S cope
Partner /People
HR Manager
Manager
Strategic HRM:
Or gan i za t i ona l
Personnel Aligning
Manager individual goals
and objectives
wit corporate
Labour goals and
Manager objectives ( fit)
Welfare
Office
Low
1890 -1913 1914 -1939 1945 -1979 1980 -1900 2000
T i me l i n e / P e r i o d
2023
 Industrial Revolution: (1750-1900)

1. Replacement of human effort and skill by the work of machines.
2. Development of factory system

3. Management responsibility delegated to foremen or supervisors
4. Economy, from agriculture based to industry based.
5. A department was set up to look into workers wages, welfare and other
related issues.
6. Adam Smith: Specialization and division of labor
7. Robert Owens: fair treatment of employees; social and economic environment

influence the physical, mental and psychological development of workers.
(reduced working hours, housing facilities, education for workers and their
children's, gave human treatment to workers)
8. This led to emergence of Personnel Management: Managing politics and

diplomacy – Industrial relation department emerged.
2023
 Post Industrial Revolution: (1910)

1. Various studies were released –gave HRM altogether a new meaning.
2. One of the earliest attempts to apply science to the engineering of

process to the management (Science or an Art) .
3. Frederick W. Taylor –Principles of Scientific Management (1857-1911):

Workers training; Maintaining wage uniformity; Focus on attaining
better productivity.
4. Following concepts gained popularity during this era: Time study;

motion study; efficiency movement; logistics, operations management
2023
 Trade Unions : (1926)

1. Workers started to form associations.
2. Trade union Act, 1926 was passed in India

3. The basic philosophy was to safeguard workers interest and to sort out
their problems like: Child labor, long hours of work, poor working
conditions, etc.
4. These following activities of trade unions gave rise to personnel practices

such as: Collective bargaining, Grievances redressal, employee benefit
programs, installation of rational wage structure.
2023
 Human Relations Era: (1930)

1. This particular period focused on the feelings, attitude and needs of the workers as
human beings.
2. Between 1925 and 1935 Hugo Munsterberg , a psychologist suggested that the use
of psychology in selection, placement, testing and training the employees in

organization.
3. During this period , Elton Mayo and Roethlisberger conducted a series of
experiments at Hawthorne plant- Increasing workers productivity to increase
workers efficiency through greater work satisfaction.
4. Findings (Hawthorne study):
- Physical condition should be good;
- favorable attitudes of workers;
- work team towards their work;
- fulfillment of social and psychological needs;
- motivated through job security;
- right to express their opinion;
- monetary benefits, etc.
2023
 Behavioral Science Era: (1936)

1. Human behaviour as a means to achieve efficiency in performance.
2. Human relations Era: Happy worker = Productive worker

3. It was concerned with social and psychological aspects of human

behaviour. Elements:
 Individual behaviour linked with group behaviour
 Informal leadership rather than formal leadership
 Motivation by self control and self development
 Improving efficiency through self operating.
2023
 Further Studies
1. Douglas McGregor- Theory “X” and Theory “Y” and Maslow’s Hierarchy of
Needs (1954)
Due to these studies
 Transition from the administrative personnel management approach to a

more dynamic HRM approach which considered workers as a valuable
resource.
 HRM become increasingly line management function ( strategic functions)
 Linked to core business operations.
 Data based decision making process ( analytical functions).
2023
Challenges of HRM
Changes in socio-economic and political conditions are bound to bring about changes in the
environment within the organizations. The personnel (HR) managers of today may find
themselves obsolete because of the rapidly changing business environment, and therefore they should
constantly update their knowledge and skills by looking at the organization‘s needs and objectives.
Some of the important challenges are:
 Vision Penetration: Vision not only provides the fuel and direction to business strategy,
but also helps managers evaluate management practices and make decisions. (Top
management  line management  lower level employees).
 Internal Environment: Creating an environment, which is responsive to external

changes, providing satisfaction to the members of the organization, and
 sustaining it through culture, traditions, practices, and systems.
 Change in Industrial Relations: The practice of IR has undergone sea change. Both the
workers and managers must be managed and developed by the same set of assumptions
and HRM philosophy of the company.
pattern
2023
 Building organizational capabilities: The paradigm of managing managers would

include not only assisting them to acquire new skills and knowledge and to evaluate
environmental changes to evolve business strategies, but also to live in a psychological
state of readiness to change.
 Job Design and Organizational Structure: Organizational structure and design will
primarily be based on (i) task approach, i.e. understanding of the intricacies of
technology, jobs and functions to be performed and (ii) people approach, which takes
cognizance of their strengths,, aspirations and relationships at work. (to achieve
organizational objectives).
 Increasing size of workforce: The management of an increased workforce poses serious

problems and challenges especially since the workers are becoming more conscious of
their rights.
 Changing psycho-social system: in future, human participation will be required not only
in technical functions but also in establishing the democratic humanistic system.
2023
 Satisfaction of higher level needs: The workers are becoming much aware of their higher
level needs. Therefore managers would be required to evolve appropriate techniques of
motivating the workers and getting work from them.
 Computerized information system: It will play a revolutionary role in managerial

decision making. It will also have an increasing impact in coordination and at strategic
levels.
 Change in Legal Environment: To meet with the increasing changes in the legal
environment, necessary adjustments will have to be made so that greater utilization of
human resources can be achieved.
 Management of Human Relations: The new generation workforce comprising educated

and conscious workers will ask for higher degree of participation and avenues for self-
fulfillment. It is rather difficult to motivate many of the new generation workers .
2023
Functions of HRM
Managerial Function of HRM Operative Functions of HRM

Planning, Organizing, Directing, Coordinating, Controlling
Employment Human Resource Compensation Human

Development Management Relations
• HRP • Org. Design • Performance Appraisal • Job Evaluation • Motivation

• Recruitment • Job Design • Training • Wages and Salary • Morale
• Selection • Job Analysis • Development • Fringe Benefits • Job Satisfaction
• Induction • Career Planning • Bonus and incentives • Communication
• Placement • Org. Change • Grievance Handling
• Transfer, etc • Org. Development • Quality of Work life
2023
 In the modern era, the HR Manager typically performs a variety of roles, such as
the role of conscience, counselor, mediator, company spokesman, problem-solver
and a change agent. He performs many miscellaneous roles in accordance with the
needs of a situation
 The Conscience Role: Under this role, the HR Manager (S/he) reminds the management of their
moral and ethical obligations towards employees.
 The Counselor Role: S/he encourages the employees to meet him/her frequently for consultation
and discussion of their psychological, physiological and career related problems and their family
problems (if any).
 The Mediator Role: S/he tries to settle disputes between labour and management as also those
between an individual and a group.
 The Spokesman Role: S/he works as a spokesman for or as a representative of his organization.
 The Problem-Solver Role: S/he is a problem-solver in respect of issues involving human resource
management and overall long-range organizational planning.
 The Change-Agent Role: S/he serves as a change agent in respect of introduction and
implementation of major organisational changes.
2023
Strategic HRM and Strategic HRD
 The basic management planning process consists of five steps: setting objectives,
making basic planning forecasts, reviewing alternative courses of action,
evaluating which options are best, and then choosing and implementing the plan.
 Today’s human resource managers are focusing more on longer term, strategies-
“big picture”.
 A strategy is the long-term planning that is developed and implemented by top
management.
 HR strategy is a roadmap for solving an organization's biggest challenges with
people-centric solutions.
 Strategic human resource management (SHRM) means formulating and executing
human resource policies and practices that produce the employee competencies
and behaviors the company needs to achieve its strategic aims. (OR) Linking of
human resources with strategic goals and objectives in order to improve business
performance and develop organizational culture that foster innovation.
2023
 SHRM fundamentals are those components of HRM, which have to be strong

enough to ensure a congenial atmosphere in an organization for implementation
of SHRD initiatives.
Changing environment of organisations
Strategic responses of organisations
Strategic HRM practices
Strategic HRM Facilitators ( Line manager)
2023
Accountabilities of HR as business partner ( Dave Ulrich)
Four roles and sixteen accountabilities

Strategic Partner Change Agent

1.Strategic HR planning 1. Staffing and talent management
2.HR as a business partner 2. Organisational design
3.Culture and image 3. Survey action planning
4. Performance management
Process
5. Training and development

Administrative Expert Employee relations expert
1. Compensation 1. Employee relations
2. Benefits 2. Labour relations
3. HR Information system 3. Safety and workers compensation
4. Compliance 4. Diversity
Operational /day –to – day focus
2023
Step-4
Step-1 Step-3 Translate Step-5 Step-6 Step-5
Step-2
Define the Formulate a the mission Formulate Implement Evaluate
Environmental
current new into the the the
Analysis
business direction strategic Strategy Strategy Strategy
goals
Strategic Planning Strategic Strategic

Execution Evaluation
Corporate level strategy: What business are we in?

Business level strategy: How will we compete?
Functional level strategy: How do we support the business’s competitive strategy
2023
 Strategic human resource development (SHRD) means- as a coherent, vertically

aligned and horizontally integrated set of learning and development activities
which constitute to the achievement of strategic goals. (OR) focuses on integrating
HRD activities with organizational goals and values to develop core capabilities
that enhance firm competitive advantage.
Shaping organisational mission and goals
Top management Support
Environmental scanning by senior management
HRD plan and policies

SHRD
Line management involvement
Trainers as a change consultant
Ability to influence corporate culture
Emphasis on cost effectiveness evaluation
2023
HR Professions and HR Department
 HRM is the function facilitating the most effective use of people to achieve both organisational and
individual goals. (Byers & Rue)
 HR is a (not just) :
- Brand Ambassadors
- Business Partners
- Strategists
- Employee Champion
- Advisor, Counselor
- Welfare Officer
- Coach
- Custodians of organisational culture
- Change agent, etc.
 HR’s key competencies
- Communication, Interpersonal skills
- Analytical , Critical and strategic thinking
- Relationship Building
- People management and leadership
- Professional and ethical behaviour
2023
 HR can help:
- Communicate Mission and vision (penetration)
- Delivering organisational excellence
- Attracting talent (through effective HRP)

- Retaining talent (through the right policies , systems and strategies )
- Developing necessary skills and attitude (with training)
- Securing cooperation through motivation ( need identification)
- Improving quality of work life
- Proper allocation of work (placement)
- Healthy relationship (individuals and groups).
- Good employment opportunities
- Development of human resources ( in all aspects)
- Maintenance of human resources (behaviour)
- Deliver economic growth (HR Audits)
2023
HR Department
 HR is a term which many organisations describe the combination of traditionally
administrative personnel functions with performance management, employee relation
and resource planning.
 HR Department deals with hiring to firing.

 The objective of HR department is to maximize the return on investment (ROI) from the
organisations human capital and minimize financial risk.
 HR department serve these functions:
- Recruitment strategy planning
- Hiring process
- Performance evaluation and management
- Promotions
- Industrial and employee relations
- Record keeping
- Compensation, benefits, bonuses
- Advice to internal workforce (in relation to problems at workplace)
-Preparing job description, career paths, position capability
2023
- Grade and salary structure

- Employee probation
- Leave and holidays
-Time office management
- Termination of employment
- HRIS
- Employee Handbook
- HR Reports, etc.
HR Department normally comprises of 05 sections as follows:
Recruitment Government and Employee General Training and

and Selection public relations Relations Service Development
Class- 2023 | HRM (22 MBA 103) | Module
10/22/2023 10:41 PM 51
1 | Dr. Amarnath Padhi
2023
A typical HR Department Organisational chart
HR Director
Assistant/Dy. Manager/Manager/Sr. Manager/GM/Sr.GM/AVP/VP

Compensation Employee Training and Workforce

Recruitment
and Benefits Relations Development Safety
Job Strategy Training Security

Job Posting Evaluation Program Education
Planning
Applicant Attendance Dispute Leadership Emergency

Sourcing Checking Resolution Training Preparedness
Interview Salary Contract Promotion Facility

Arranging Policy Negotiation Policy Inspection
Applicant Advisory
Insurance
Choosing Service
Bonus
Managing
2023
Recent Developments in HRM ( NATIONAL & GLOBAL)
As we move on to the 21st century, there can be no doubt HRM faces some of the greatest
challenges since its definition as a separate function almost a century ago. Since HRM is the prime
mover of management of people at work, therefore, it has to encounter these challenges effectively
in order to enable organizations to achieve their objectives. Some of the important new trends that
are emerging at the global as well as national (India) level are as follows:
 Setting the Hybrid Work Model for Collaboration: It’s an employee-centric flexible work
model that includes a mix of in-office and remote work.
 “Human” Leadership: The current scenario demands empathetic, adaptive and authentic
leaders for their employees.
– Improve company communications
– Prioritize teamwork and collaboration
– Invest in people
– Encourage feedback
– Give recognition, rewards and compliments
2023
 Working in the Metaverse: The metaverse workplace offers virtual reality environments
that let you work in a customized immersive space from anywhere in the world.
 Change Management: Change management systematically deals with changes in an

organization’s goals, processes or technologies. It aims to implement efficient strategies to

execute changes, controlling them and helping people to adapt to them with minimal
hindrances.
 People Analytics: A data collection concerning human capital and workers’ performance
within an organization. But this practice also turns information into actionable and
meaningful insights that HR and PA specialists use to enhance business performance and
employee experience.
• Employee Well-being & Healthy Organization: This goes beyond the physical health and
safety of the employees and aims at providing more flexibility and opportunities for their
training and empowerment. (Physical Health, Mental Well-being, Financial Fitness, Social
Health and Community Service, Safe Workplace, Healthy Culture)
2023
 Emphasis on TQM: In today’s competitive market, quality of products or services has

become the buzzword for companies to survive. This high emphasis on quality has
generated a new concept known as Total Quality Management (TQM).
 Emphasis on Kaizen Model: Kaizen is the Japanese concept of continuous improvement. It

emphasizes that there is always scope for improvement and that improvement is a never-
ending process. Kaizen stimulates changes in organizations in the following areas:
customer orientation, total quality control, zero defect, just-in-time, new product
development, worker discipline, and labor-management relations.
 Increasing Diversity in Workforce: Age, Race, Ethnicity, Gender, Physical abilities/

qualities, and Sexual or affection orientation.
 Increasing role of women employees: The influx of women into the workforce is a major
social change that affects HR planning. The increasing trend of women employees has
necessitated several companies to launch special recruitment programs for women
employees
2023

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2023

NIST Institute of Science and Technology (Auto)

Module -1: Introductions to HRM

 Definition, nature and scope of HRM

 Strategic HRM and HRD

 HR profession and HR department

 Recent developments in HRM (National and Global)

Module -2: HRM Planning (HRP)

 HRP-meaning, importance and process

 Demand and supply forecasting

 Factors affecting HRP

 Selection Process- screening

 Job analysis- process and methods.

Module -3: HRM Process

 Recruitment and Selection:

 Training and Development:

Module -4: Follow Up Actions

 Promotion, transfer and separation

 Organization citizenship behaviour

 HRIS (Human Resource Information System)

 Strategic HRM and HRD

 HR profession and HR department

 Recent developments in HRM (National and Global)

 The term HRM is used in a confusing variety of ways.

 It refers to a collection of policies used to organize work in the employment

 A distinctive approach to employment management through the strategic

 Some commentators have argued that HRM is essentially about creating a

 The concept of “HRM” implies that employees are possibility(s) of an

‘soft’ and ‘hard’ variants of HRM:

 Human resources have these necessary qualities:

 Human resources cannot be imitated ( High performer employee)

These qualities imply that human resources have enormous

“Management of human resource is essential”

 It involves development, maintenance and management of human resource.

 It helps to achieve individual, organizational and social objectives.

 HRM as a multidisciplinary subject it includes the study of management

 It involves team spirit and team work.

Analysis and design of work

Recruitment and Selection

Training and Development

Employee data and Information

Compliance with law

Support for Strategy

Analysis and design of work

 Job Analysis: The process of getting detailed information about jobs.

 It develops strategies (long-term and short-term) to meet the man-

Recruitment and Selection

 Recruitment: The process through which the organization seeks

 Selection: The process by which the organization attempts to identify

 Training: An organization’s planned efforts to help employees acquire

job-related knowledge, skills, abilities, and behaviours, with the goal of

 Development: The acquisition of knowledge, skills, and behaviours that

 Performance Management: The process through which managers

 Organizations often depend on human resource professionals to help

them maintain positive relations with employees. (Psychological

 The human resource department can also expect to handle certain

 The HR department maintains communication with union

(making), and most require substantial record keeping, ability to

 Organizations depend on their HR department to help establish

Employee data and Information

 Workforce (HR) Analytics: The use of quantitative tools and scientific

 Ensuring compliance with laws (HR) requires that human resource

personnel keep watch over a rapidly changing legal landscape.