Unit - 1 - Human Resource Management and Industrial Relations

Welcome to the course – BM107
Human Resource Management and
Industrial Relations
Topic-1: What is Human Resource Management?
• Human resources is used to describe both the people who work for a
company or organization and the department responsible for managing
resources related to employees.
• Human resource management is a term used to describe the management and

development of employees in an organization.
• Human resource management is therefore focused on a number of major areas,

including:
 Recruiting and staffing
 Compensation and benefits
 Training and learning
 Labor and employee relations
 Organization development
5/7/2018 Topic 9 : Strategic HRM 2

What is Human Resource Management?
Human resource management (HRM, or simply HR) is the management of an

organization's workforce, or human resources.
It is responsible for the attraction, selection, training, assessment, and rewarding

of employees, while also overseeing organizational leadership and culture, and
ensuring compliance with employment and labor laws

• Human resource management involves developing and administering
programs that are designed to increase the effectiveness of an
organization or business.
• For most organizations, agencies, and businesses, the human resources

department is responsible for:
 Managing job recruitment, selection, and promotion
 Developing and overseeing employee benefits and wellness programs
 Developing, promoting, and enforcing personnel policies
 Promoting employee career development and job training
 Providing orientation programs for new hires
 Providing guidance regarding disciplinary actions
 Serving as a primary contact for work-site injuries or accidents

• Human resource management is about:
 Addressing current employee concerns: Unlike company managers who
oversee the day-to-day work of employees, HR departments deal with
employee concerns such as benefits, pay, employee investments, pension
plans, and training. Their work may also include settling conflicts between
employees or between employees and their managers.
 Acquiring new employees: The human resource management team recruits
potential employees, oversees the hiring process (background checks, drug
testing, etc.), and provides new employee orientation.
 Managing the employee separation process: The HR management team must
complete a specific set of tasks if an employee quits, is fired, or is laid off.
Paperwork must be completed to ensure that the process was completed
legally. Severance pay may be offered or negotiated, benefits must be settled,
and access to company resources must be severed via the collection of keys,
badges, computers, or sensitive materials from the employee.
 Improving morale: Effective HR teams encourage company employees to do
their best, which contributes to the overall success of the company. Their work
often involves rewarding employees for good performance and creating a
positive work environment.
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Approaches to Human Resource Management
• hard HRM:- *a very practical approach *people seen as a

passive resources to be used, deployed and if necessary
disposed of
• soft HRM:- *sometimes known as development humanism
*stresses human side *entails trust, collaboration, skill
development *

Topic-2: Evolution of HRM
HR is a product of the human relations movement of the early 20th century,
How the situation was earlier

The workers in the early factories faced long hours of works under extremely unhygienic
conditions, and mostly lived in slums. This soon resulted in several labor riots, the most
famous being Ludds riots of 1811 in Nottingham, England, precipitated by reduced
wages.
The history of personnel management begins around the end of the 19th century,
when welfare officers (sometimes called ‘welfare secretaries’) came into being.
They were women and concerned only with the protection of women and girls.
Their creation was a reaction to the harshness of industrial conditions, coupled

with pressures arising from the extension of the franchise, the influence of trade
unions
1st World War: FIRST WORLD WAR •

The First World War accelerated change in the development of personnel
management,
1920’s: 1920’S
During the 1920s, jobs with the titles of ‘labor manager’ or ‘employment
manager’ came into being in the engineering industry and other industries where
there were large factories, to handle absence, recruitment, dismissal and
queries over bonuses and so on.
1930’S
During the 1930s, with the economy beginning to pick up, big corporations in
these newer sectors saw value in improving employee benefits as a way of
recruiting, retaining and motivating employees.
2nd World War:

The Second World War brought about welfare and personnel work on a full-time
basis. The government saw specialist personnel management as part of the drive
for greater efficiency and the number of people in the personnel function grew
substantially
By 1945:
employment management and welfare work had become integrated under the
broad term ‘personnel management’.
Experience of the war had shown that output and productivity could be
influenced by employment policies.
In the 1960s and 70s

employment started to develop significantly. •
At the same time personnel techniques developed using theories from the social
sciences about motivation and organisational behaviour;
Mid-1980s
Around the mid-80s, the term ‘human resource management’ arrived from the
USA.
• Scientific management Frederic Taylor:

Father of scientific management
a. Definition: Breakdown of work into the smallest mechanical components
and rearranging them into the most efficient combination.
b. Steps: Job analysis—selection—training—rewards.
• Human behavior and relations

a. The Hawthorne Studies by Westing House The happy workers are the most
productive workers.
• The Personnel Management Approach
• for much of the 20th Century

• employee record keeping
• adherence to the stated policies while implementing functions such as
recruitment, training and wage administration
• taking welfare oriented measures such as providing medical care, vaccinations,
housing facilities and the like
• attempting to increase productivity through wage increases and training, and
enforcement of standards derived from work studies influenced by the scientific
management approach promulgated by Frederick Taylor and the like
• dealing with trade unions
• conducting performance appraisals or report card of past performance to
determine pay and promotions
•The Personnel Management Approach
• Frederick W. Taylor (1856-1915. He believed that the most efficient

methods for completing a task and for the selection, development and motivation
of employees could be scientifically determined.
•he scientific selection, training and development of workers instead of allowing

them to choose their own tasks and train themselves as best they could.
• The Traditional Human Resource Approach
• The latter decades of 20TH century - saw the winds of change starting to affect
the personnel management profession.
• Elton Mayo’s Hawthorne Studies had debunked Taylor’s Scientific
Management approach toward productivity increase, and established that the
major drivers of productivity and motivation were non-monetary factors.
•Some of the popular theories that struck ground Abraham Maslow’s hierarchy
of needs.
Three Ways HR Is Changing

Today
1 human capital
Focus on building
2
Development of
global HR strategies
3 IHRM
The using of
information technology
15
New HR Challenges in the

• Teams and Projects
• Temporary Employees
• Technology
• Work-Life Balance
• Downsizing
16
Human Capital - IHRM

• Human Capital = economic value of the
knowledge, experience, skills, and capabilities
of employees
• IHRM = addresses the complexity that results

from recruiting, selecting, developing, and
maintaining a diverse workforce on a global
scale
17
Information Technology
• Human resource information technology
= an integrated computer system
designed to provide data and information
used in HR planning and decision making
• Traditional HR to e-HR significantly affected
every area of human resource management
• Some organizations are close to a paperless HRM
system – saves time, money, frees staff
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Govt. Legislation
• Discrimination = hiring or promoting of
applicants based on criteria that are not job
relevant
• Affirmative action = policy requiring
employers to take positive steps to guarantee
equal employment opportunities for people
within protected groups
19
Strategic Human resource management
• Strategic human resource management is

designed to help companies best meet the
needs of their employees while promoting
company goals.
• Human resource management deals with any

aspects of a business that affects employees,
such as hiring and firing, pay, benefits,
training, and administration.
What is Strategic Human resource

management
• Human resources may also provide work incentives,
safety procedure information, and sick or vacation
days
• Strategic human resource management is the

proactive management of people. It requires thinking
ahead, and planning ways for a company to better
meet the needs of its employees, and for the
employees to better meet the needs of the company.
What is Strategic Human resource management
• This can affect the way things are done at a

business site, improving everything from hiring
practices and employee training programs to
assessment techniques and discipline
• Strategic HRM- focuses on the linking of all HR

activities with the organization's strategic
objectives
 Companies who work hard to meet the needs of their

employees can cultivate a work atmosphere conducive
to productivity.
 Human resource management is the best way to achieve

this. Being able to plan for the needs of employees by
thinking ahead can help to improve the rate of skilled
employees who chose to remain working for a company.
 Improving the employee retention rate can reduce the

money companies spend on finding and training new
employees.
• When creating a human resources plan, it is important to

consider employees may want or need and what the company
can reasonably supply. A larger company can usually afford
training and benefit programs that smaller companies cannot
afford to offer.
• This does not mean that a smaller company should not

engage in strategic human resource management. Providing
specialized on-site training, even if provided by senior
members of the company, and offering one-on-one
assessment and coaching sessions, can help employees reach
peak performance rates
Human Resources Manager’s Role

• A human resources manager is responsible for managing and
overseeing the personnel department within a company,
organization or agency. This includes posting advertisements
or approving advertisements for new employees, screening
resumes and applications, setting interview appointments and
being involved in the hiring process
• In most agencies the human resources manager is also key in

providing employee supervision and evaluations, retraining
employees, offering mediation services for struggling
employees as well as firing employees that are not meeting
standards.
Topic-3: Importance of Human Factor
The Importance of Human Factors
•The results of Professor Elton Mayo's Hawthorne studies proved that the factor
most influencing productivity are relationships.
•The Human Relations Movement viewed people as driven by both economic

and social needs.
•The theory was based upon increased productivity and employee satisfaction as
a result of increased management concern for employee welfare and individual
attention.
•Elton Mayo's work on human behaviour at The Hawthorne Works of The

Western Electric Company in Chicago (1924-1927) produced many conclusions
in respect of human relations and motivation theory.
•Thus economic incentives are not the only method to motivate people. other
than the economical and environmental condition of workplace.
•The employer can be motivated by psychological and social wants because
his behaviour is also influenced by feelings, emotions and attitudes.
•Management must learn to develop co-operative attitudes and not rely merely
on command.
•The secret of their success is ―The way they treat their employees‖- Sony
•
•• Nestle CEO ―Every single person in the organization should ask himself
or herself –is there anything I can do to add a little more value to our
organization‖
•The results of Professor Elton Mayo's Hawthorne studies proved that the factor
most influencing productivity are relationships.
• The human relations theory of management began development in the early
1920's during the industrial revolution. At that time, productivity was the focus
of business. Professor Elton Mayo began his experiments (the Hawthorne
Studies), to prove the importance of people for productivity - not machines.
•The human relations management theory is a researched belief that people

desire to be part of a supportive team that facilitates development and growth.
Therefore, if employees receive special attention and are encouraged to
participate, they perceive their work has significance, and they are motivated to
be more productive, resulting in high quality work.
•Capable of enlargement
•
•– produce extraordinary things when inspired
•
•– Can help organisation achieve results quickly, efficiently & effectively.
•a) Social Significance:

•Proper management of personnel, enhances their dignify by satisfying their
social needs.
•b) Professional Significance:

•
•By providing a healthy working environment it promotes teamwork in the
employees. This it does by i) maintaining the dignity of the employee as a
‗human-being‘;ii) providing maximum opportunities for personal
development; iii) providing healthy relationship between different work
groups so that work is effectively performed
•c) Significance for Individual Enterprise:

•It can help the organisation in accomplishing its goals by:
i) creating right attitude among the employees through effective motivation
; ii) to develop team spirit
•Each individual who works has his own set of needs, drives, goals and
experiences. People come to work with certain specific motives to earn money,
to get employment, to have better prospect in future, to be treated as a human
being while at the place of work.
End of topic “Importance of human factors”
Now we go to next topic “Objectives of HRM”
Topic-4: Objectives of HRM
Next topic “Objectives of HRM”

HRM is useful not only to organization, but the employees working

therein, and also the society at large also find it useful.
We talk about following types of objectives of HRM:

1) Organizational Objectives:
2) Functional Objectives
3) Personal Objectives:
1. Organizational Objectives:
HRM is a means to achieve efficiency and effectiveness.
Acquiring right man for the right job at right time in right
quantity, developing through right kind of training, utilizing the
selected workforce, and maintaining the workforce are the
organizational objectives of HRM.
2. Functional Objectives:
HRM performs so many functions for other departments.
3. Personal Objectives:
In today’s world there is shortage of requisite talent. Employees are encouraged
by competitive firms to change the jobs. HRM has the responsibility to acquire,
develop, utilize, and maintain employees.
This would be possible only when the HRM helps employees to achieve their
personal goals to get their commitment. Creating work-life balance for the
employees is a personal objective.
4. Societal Objectives:
HRM must see that the legal, ethical, and social environmental
issues are properly attended to.
Equal opportunity and equal pay for equal work are the legal
issues not to be violated.
• To help organizations achieve their goals.

• To ensure maximum development of human resource
• To ensure effective utilization of human resource
• To ensure respect for human beings at workplace
•To identify and satisfy the needs of individuals
•To achieve reconciliation/balance between individual goals and
organizational goals
• To achieve high morale among workers
• To provide the organization with well-trained and well-
motivated employees
• To increase job-satisfaction levels of employees

• To develop and maintain quality of work life
• To develop personality of employee in all aspects
• To enhance employee’s capability to perform present job
• To ensure respect for human beings at workplace

•To identify and satisfy the needs of individuals
•To achieve reconciliation/balance between individual goals and
organizational goals
• To achieve high morale among workers
• To provide the organization with well-trained and well-
motivated employees
• Next topic: Inclusive Growth and Affirmative Action
Topic-5: Inclusive Growth and Affirmative Action
• Inclusive Growth
•Inclusive growth refers to the way people can contribute to the
economic growth of a company and benefit from this growth.
•Affirmative action
is a method that Human Resources uses to prevent
discrimination by race, religion, and gender.
AFFIRMATIVE ACTION
AFFIRMATIVE ACTION
• Next topic: Goal of human resource manager
Topic-6: Goal of HR Manager
HRM Environment
Company Strategy Legislation
Trends in society
International events
Changing technology
Attract an Effective Workforce
HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Maintain an Effective Workforce
Develop an Effective Workforce
Wage and salary
Benefits Training
Labor relations Development
Terminations Appraisal
46
Topic-7: Human Resource Policies
Determine a company’s need for skills and employees

Next Topic – Human Resource Policies
47
Meaning: Human resource policies are formal rules and

procedures that dictate how certain matters should be
addressed in the workplace, including employee rights and
duties.
To avoid non-compliance and penalties from the government,

employers must adhere to HR policies.
48
Why HR Policies are important?

• Why policies are important
• Policies serve several important functions:
• Communicate values and expectations for how things are done at
your organization
• Keep the organization in compliance with legislation and provide
protection against employment claims
• Document and implement best practices appropriate to the
organization
• Support consistent treatment of staff, fairness and transparency
• Help management to make decisions that are consistent, uniform
and predictable
• Protect individuals and the organization from the pressures of
expediency
Experiential Exercise: Do You Want to be an HR Manager?
49
• HR policies are designed to promote communication and

understanding between managers and their subordinates,
and to give employees an overview of the company’s
programs.
• They give employees access to valuable resources that help
foster their professional growth.
• Without HR policies, a chaotic work environment could result
because there are no set rules to follow.
50
TYPES of HR POLICIES
1) An HR policy addresses recruitment and selection processes. This
includes interviewing, hiring, performance evaluations,
employing family members, reference and background checks,
immigration, physical and medical examinations, rehires and
new-hire orientation.
2) Additional policies are about terminations, discrimination, work
schedules, compensation, employee conduct and disciplinary
measures.
3) Matters relating to health and safety, business expense
reimbursement, employee benefits such as health and retirement
plans, and paid and unpaid time off all fall under HR
responsibilities..
51
TYPES OF HUMAN RESOURCE POLICIES

 Absenteeism policy
 Application for Internal Job Opportunities
 Benefits Options
 Benefits Package: Comprehensive Components
 Bereavement Leave Policy
 Blogging and Social Media Policy Sample
 Breaks and Lunch Requirements
52

 Breaks and Lunch Requirements
 Candidate Job Offer Letter Samples
 Candidate Rejection Letter Samples
 Career Development Plan Steps
 Casual Dress Code: Manufacturing and Office
 Cell Phone Policy
 Code of Conduct Outline
 Confidentiality Agreement
53

 Code of Conduct
 Confidentiality
 Conflict of Interest
 Working conditions
 Attendance
 Hours of Operations
 Termination (Voluntary and Involuntary)
 Recruitment
 Compensation
 Performance Management
 Learning and development
 Benefits and Eligibility
 Overtime
54

• Employee Information
• Bereavement Leave
• Compassionate Leave
• Vacation
• Sick Leave, Short Term Disability, Long Term Disability
• Maternity, Parental, and Adoption Leave
• Unpaid Leave
• Jury Duty
• Family Leave
• Grievance/Conflict Resolution
• Formal complaint process
55

 Compassionate Leave
 Vacation
 Sick Leave, Short Term Disability, Long Term Disability
 Maternity, Parental, and Adoption Leave
 Unpaid Leave
 Jury Duty
 Family Leave
 Grievance/Conflict Resolution
 Formal complaint process
 Disciplinary
56

 Discrimination and Harassment/Respectful Workplace
 Health and Safety
 Accident Reporting
 Workplace Violence
 Alcohol and Drug Use Policy
 Use of Company Equipment
 General policy on the review and update of organization
policies
57
• Next topic: Computer Applications in
HRM
58
Topic-8: Computer Applications in HRM
1) Decision support systems –

Help managers in making decisions - utilizes data and models
to solve unstructured problems.
A decision support system can be created in which senior
and experienced manager’s procedures and methods of
decision making can be replicated. It will help the managers
immensely to arrive quickly at a decision on any problem
related to human resources of the organisation.
59
2) Data base Management System

It is a collection of software for processing interrelated data.
The data base management systems are special computer
programmes enabling user to create, manipulate, retrieve
and maintain file data. The database management system
facilitates creation, addition, deletion and modification and
sorting of records.
60
61
3) Management Information System
EXAMPLE
“MIS helps in integrating organisational information. In respect of human
resources management it helps in having the integrated information in
respect of human resources of the organisation. The information can be
utilized by anyone needing it for which the knowledge of computer is not
essential.
62
4) Human Resource Planning:

EXAMPLE
The vast data is required for human resource planning.
Top management wants to prepare a long-term strategic
planning for human resources. Human resource information
system provides necessary information required for making
essential projections regarding human resources
requirements.
The information can also be utilized for acquiring human
resources, their promotion, transfer and career planning. Job
analysis information helps in human resource planning.
63
5) Acquisition of Human Resources

EXAMPLE
The complete information regarding skill, competence, knowledge,
experience, training, educational qualification, age, sex etc. available to
the human resource executive through HRIS enabling him to fill up the
vacant position by way of promotion or transfer
64
6) Training and Development:

EXAMPLE
Trainees’ competence is assessed by the computer before start of the
training.
Computer -based training (CBT) provides immediate feedback
HRIS modules can be used to record the training received and cost of training
can be monitored.
65
7) Career and Succession Planning:
EXAMPLE
Career planning requires thorough check up of one’s own preferences,
abilities, skills, competence, knowledge and expertise and values and
their matching with the job requirements.
The organisation can keep track of such ambitious employees and
executives.
66
8) Compensation
EXAMPLE
Compensation is yet another area where computer applications can be made.
The compensation includes.
Several software packages are available in this respect to maintain and
monitor the compensation administration.
67
9) Performance Appraisal
EXAMPLE
If merit or performance is rated by an individual may be superior in rank and
hierarchy, there is a scope for biased attitude. Computer can provide
unbiased solution to the problem.
68
10) Safety and Health

EXAMPLE
But organisation can take utmost care of its employees keeping the records
of occupational diseases, injuries and make the employees aware of
them from time to time and also draw attention of the employees towards
hazardous chemicals
69
11) Human Relations

EXAMPLE
Computer network helps in reminding the executives of the agreements and
agreed terms between the management and unions. Executive’s personal
computer can be connected to an on line information search and
retrieval system human relations information network.
70
Topic-9: HR Accounting & Audit
• PURPOSE OF AUDIT
 To understand overall status of organization
 To identify any problems
71
• HR Accounting
• Developing skill inventory
• Performance Appraisal
• Assessing the individual capacity for development
• Attitude survey
• Subjective Appraisal
72
• It involves measuring the costs incurred by business firms and

other organizations to recruit, select, hire, train and develop
human assets.
73
Basic Information of HR
• Number of Employees
• Categories
• • Grades
• Total Value of human resources
• Value per employee
74
HR Acquisition
• Number of employees acquired during the year
• Cost of Acquisition
• Levels for which they were acquired
• HR Development
• All information pertaining to HRD activities of the organization
• HR maintenance
• Cost related to HR maintenance.
• HR Separation
• Cost related to HR Separation, attribution rate.
• Details of benefits provided to the employees 75

Various Methods:
• Non- Monetary Measurement

• Monetary Measurement
76
• 3 Phases of Audit
 Pre-audit Information
 Pre-Audit Self-assessment
 On-site Review
77
APPROACHES to HR Audit
The following approaches are adopted for purpose of evaluation:
Comparative approach
• Outside authority approach
• Statistical approach
• Compliance approach
• Management by objectives (MBO) approach
•
Comparative approach
In this, the auditors identify Competitor Company as the model. The results of their organization
are compared with that Company/ industry.
Outside authority approach
In this, the auditors use standards set by an outside consultant as benchmark for comparison of
own results.
Management by objectives (MBO) approach

This approach creates specific goals, against which performance can be measured, to arrive at
final decision about organization’s actual performance with the set objectives.
78
End of Unit-1 !!
79

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Welcome to the course – BM107

Human Resource Management and

• Human resource management is a term used to describe the management and

• Human resource management is therefore focused on a number of major areas,

5/7/2018 Topic 9 : Strategic HRM 2

Human resource management (HRM, or simply HR) is the management of an

It is responsible for the attraction, selection, training, assessment, and rewarding

5/7/2018 Topic 9 : Strategic HRM 3

• For most organizations, agencies, and businesses, the human resources

5/7/2018 Topic 9 : Strategic HRM 4

• hard HRM:- *a very practical approach *people seen as a

5/7/2018 Topic 9 : Strategic HRM 6

HR is a product of the human relations movement of the early 20th century,

How the situation was earlier

Their creation was a reaction to the harshness of industrial conditions, coupled

1st World War: FIRST WORLD WAR •

2nd World War:

In the 1960s and 70s

• Scientific management Frederic Taylor:

• Human behavior and relations

• The Personnel Management Approach

• for much of the 20th Century

•The Personnel Management Approach

• Frederick W. Taylor (1856-1915. He believed that the most efficient

•he scientific selection, training and development of workers instead of allowing

• The Traditional Human Resource Approach

Three Ways HR Is Changing

New HR Challenges in the

Human Capital - IHRM

• IHRM = addresses the complexity that results

Strategic Human resource management

• Strategic human resource management is

• Human resource management deals with any

What is Strategic Human resource

• Strategic human resource management is the

What is Strategic Human resource management

• This can affect the way things are done at a

• Strategic HRM- focuses on the linking of all HR

Strategic Human resource management

 Companies who work hard to meet the needs of their

 Human resource management is the best way to achieve

 Improving the employee retention rate can reduce the

Strategic Human resource management

• When creating a human resources plan, it is important to

• This does not mean that a smaller company should not

Human Resources Manager’s Role

• In most agencies the human resources manager is also key in

The Importance of Human Factors

•The Human Relations Movement viewed people as driven by both economic

•Elton Mayo's work on human behaviour at The Hawthorne Works of The

The Importance of Human Factors

The Importance of Human Factors

•The human relations management theory is a researched belief that people

The Importance of Human Factors

The Importance of Human Factors

•a) Social Significance:

•b) Professional Significance:

The Importance of Human Factors

• hard HRM:- a very practical approach people seen as a