CONCEPT OF

HUMAN RESOURCE MANAGEMENT (HRM)

Human Resource Management is

• the process of
• attracting,
• developing and
• maintaining
• a talented and energetic workforce
• to support organisational mission, objectives and strategies.

1
 FUNCTIONS OF HRM

LINE / MANAGERIAL
STAFF / OPERATIVE FUNCTIONS (6)
FUNCTIONS (4)

Job Analysis, HR Planning, Recruitment,

• Planning Human Resource
Selection, Placement, Induction & Employees
• Organizing Procurement Mobility

• Directing
Human Resource
• Controlling Training, Executive Development, Career
Planning & HRD Strategies
Development

Job Design, Scheduling, Motivation, Job Evaluation,

Motivation & Performance & Potential Appraisal, Compensation,
Compensation Incentive and Benefits Administration

Human Resource Health, Safety, Welfare & Social Security,

Maintenance Succession Planning & Retention Strategies

Grievance Handling, Disciplinary Enforcements,

Human Resource Collective Bargaining, Empowerment, Trade Unions,
Integration Industrial Relations & Team Management

Human Resource HR Accounting & Audit, HR Research, HRIS,

Control & Job Stress, Mentoring & International HRM
2
Emerging Issues
OBJECTIVES OF HRM

3
4
 EVOLUTION STAGES OF HRM
I. Scientific Management Phase (1900-1920)

II. Welfare / Industrial / Organizational Psychological Phase (1921-1929)

III. Administration Phase (1930-1940)

IV. Human Relations Phase (1941-1960)

V. Functional Expertise / Governmental Regulations Phase (1961-1980)

VI. Professionalization Phase (1981 onwards)

5
 EVOLUTION STAGES OF HRM (Contd.)

I. Scientific Management Stage of HRM

(1900-1920):
1. Management theories got evolved
2. Management tools and techniques
got implemented
3. 8 hours shift got introduced
4. Leave with pay strategy emerged
5. Incentive-based compensation
strategy emerged

6
 EVOLUTION STAGES OF HRM (Contd.)
II. Welfare / Industrial / Organizational Psychological
Stage of HRM (1921-1929):
6. Significance for psychological / behavioral issues
raised
7. Psychological testing and selection methods emerged
8. Ergonomics got importance
9. Occupational hazards were focused
10. Occupational relations and stress coping got
importance
11. Multidivisional organizational Structure was
introduced and
Advent of the laws such as…
12. Trade Unions Act, 1921
13. Workmen's Compensation Act, 1923

7
 EVOLUTION STAGES OF HRM (Contd.)
III. Administration Stage of HRM (1930-
1940):
14. Benefits and compensation matters
got significance
15. Collective bargaining concept
emerged
16. Advent of the Payment of Wages Act,
1936

8
 EVOLUTION STAGES OF HRM (Contd.)
IV. Human Relations Stage of HRM (1941-1960):
17. Significance of Hawthorne experiments
18. Human relations approach emerged
19. Significance of Motivation (Need) Theory was explored
20. First School of IR & Labor Relations, Cornel was started
21. XLRI Jamshedpur was founded
22. Leadership consulting started
Advent of labor laws such as……….
23. Industrial Employment (Standing Orders) Act, 1946
24. Industrial Disputes Act, 1947
25. Factories Act, 1948
26. Payment of Minimum Wages Act, 1948
27. Employee State Insurance (ESI) Act, 1948
28. Employee Provident Fund (PF) & Misc. Provisions Act,
1952

9
 EVOLUTION STAGES OF HRM (Contd.)
V. Functional Expertise / Governmental
Regulations Stage of HRM (1961-1980):
29. Concept of Performance Management was
invented
30. Competency management was introduced
31. L&T was 1st to set HRD Dept.
32. “Men & Women of the Corporate” book was
published by Prof Rosabeth MK, Harvard
University
Advent of labor laws such as….
33. Maternity Benefit Act, 1961
34. Payment of Bonus Act, 1965
35. Payment of Gratuity Act, 1972
36. Payment of Equal Remuneration to Equal
37. Work Act, 1976

10
 EVOLUTION STAGES OF HRM (Contd.)
VI. Professionalization Stage of HRM (1981 onwards):
38. UG & PG Programs started in HR domain
39. National HR Development Network (NHRDN) was
conceived
38. Strategic Pay concept was introduced
39. Balance Scorecard was introduced
40. Concept of Strategic Partner was devised
41. Employee-defined target and pay
42. Results-Only Work Environment got significance
43. HR Accounting got importance
44. “People Matters” 3600 Media Platform got published
45. Professional Associations started forming

11
 CONCEPT OF STRATEGIC HRM
Strategic HRM is ….
• the process of defining
• how the organization’s goals will be
• achieved through people
• by means of HR strategies and
• integrated HR policies and practices

12
 STRATEGIC HRM MODEL

Business
Strategy

Internal External
Environment Environment

Overall
Strategy

Resourcing Developing Rewarding Employee

Strategy Strategy Strategy Relations
Strategy
13
 STRATEGIC
HR TOOLS

STRATEGY HR HR DIGITAL
MAP SCORECARD DASHBOARD
• Technology bound tool that
provides managers with
desktop graphs and charts
• Graphical tool summarizing
• Tool that measures the • Using which they get a picture
the chain of activities
relationship between of the company’s past and
contributing to the future in terms of the
company’s success  HR Activities company’s each activity in the
strategy map
• Showing ‘big picture’ of  Employees behavior
how employees • Digital representation of the
performance contributes to  Strategic outcomes of company’s day-to-day
achieve the company’s position on all metrics as per
the firm the HR Scorecard Process
overall strategic goals
• Generally it can either be
strategic or tactical in nature

14
 STRATEGY MAP (KAPLAN NORTON)
(Graphical tool summarizing the chain of activities contributing to the company’s success)
Features of Strategic Map
1. All in single page helps
manager to keep an eye on
all goals and achieve them.

2. The four types of goals

includes:
• financial,
• customer related,
• internal business
processes and
• learning and growth.

3. The connecting arrows in

the map shows cause and
effect relationship of the
goals.

4. The objectives on the

strategy map are arrayed
across two or more
horizontal bands, and each
band is known as a
'perspective'. 15
 HR SCORECARD
(Tool that measures the relationship between HR Activities, Employees behavior and
Strategic outcomes)

Tool that measures the

relationship between
 HR Activities
 Employees behavior
 Strategic outcomes of
the firm

16
OUTCOMES OF HR SCORECARD

17
 HR DIGITAL DASHBOARD – OVERVIEW
(Technology bound tool that provides managers with desktop graphs and charts)

• Using which they get a

picture of the
company’s past and
future in terms of the
company’s each
activity in the strategy
map

• Digital
representation of the
company’s day-to-
day position on all
metrics as per the HR
Scorecard Process

• Generally it can
either be strategic or
tactical in nature

18
STRATEGIC HRM APPROACHES
HIGH PERFORMANCE MANAGEMENT APPROACH HIGH INVOLVEMENT MANAGEMENT APPROACH

 Rigorous recruitment and selection  On-line work teams

 Extensive and relevant training &  Off-line employee involvement activities
management development activities and problem solving groups
 Incentive pay systems  Job rotation
 Performance management processes  Suggestion programs
 Decentralization of quality efforts

HIGH COMMITMENT MANAGEMENT APPROACH

 Development career ladders

 Emphasis on trainability and commitment
 High level of functional flexibility abandoning rigid JD
 Reduction of hierarchies
 Heavy reliance of team structure
 Regular changes in job design
 Policy of no compulsory lay-offs
 Policy of permanent employment guarantee
 Merit pay and profit sharing systems

19