Human resource management

Module 1

Ramya t.j
PEOPLE CAN MOVE MOUNTAINS
• If the skill and will is properly
applied wonderful things can
happen
 Human resources help in transforming the
lifeless factors of production into useful
products
 They are capable of enlargement i.e
capable of producing an output that is
greater than the sum of inputs .once they
get inspired even ordinary people can
deliver extraordinary results.
 They can help an organization achieve
results quickly ,efficiently and effectively
WHAT IS HRM
 What is human resource
management
• Human resource management is a process of
bringing people and organization together so that
the goals of each are met .it tries to secure the
best from people by winning their wholehearted
cooperation .
• In short ,it may be defined as the art of procuring
,developing, and maintaining competent workforce
to achieve the goals of an organization in an
effective manner
 Definition of hrm
• According to “filippo” human
resource management is the
planning , organizing ,
directing and controlling of the
procurement ,development ,
compensation ,integration ,
maintenance , and
reproduction of human
resources to the end that
individual , organizational and
social objectives are
accomplish.”
Nature of HRM
• Pervasive force:
• Action oriented:
• Individually oriented.
• People oriented.
• Future oriented.
• Development oriented.
• Integrating mechanism.
• Comprehensive function.
• Auxiliary service.
• Inter disciplinary function.
• Continuous function
 Scope of HRM
• Personnel aspect.
• Welfare aspect.
• Industrial aspect.
 Scope of hrm

Nature of
hrm Employing
Prospects hiring
of HRM

Employee
HRM remunerati
Industrial on
relations

Employees employee
maintenanc motivation
e
 Importance of HRM

• Attract ant retain talent

• Train people for challenging roles
• Develop skill and competencies
• Promote team spirit
Good hr practices help • Develop loyalty and commitment
• Increase productivity and profits
• Improve job satisfaction
• Enhance standard of living
• Generate employment opportunity
 Evolution of HRM
• The commodity concept
• The factor of production concept
• The goodwill concept
• The paternalistic concept
• The humanitarian concept
• The human resource concept
• The emerging concept
objectives of HRM

Personal oobjective

Functional objective

Organizational objectives

Societal objectives
 objectives of HRM
 To help the organization to reach its goals
 To employ the skills and abilities of the workforce
efficiently
 To provide the organization with well trained and
well motivated employees
 To increase to the fullest the employees job
satisfaction and self actualization
 To develop and maintain a quality of work life
 To communicate hr policies to all employees
 To be ethically and socially responsive to the
needs of the society
HRM VS PM( personnel management)

HRM views people as an important source or

asset to be used for the benefit of organization,
employees and the society. It is emerging as a
distinct philosophy of management aiming at
policies that promote mutuality mutual
goals ,mutual respect , mutual reward , and
mutual responsibilities .
• PM has a limited scope. It viewed labor as a tool
,the behavior of which could be manipulated
for the benefit of the organization and replaced
when it was worned out. The personnel
department itself was not treated with respect .it
was not filled with productive employees
 Difference between HRM and PM
DIMENSIONS PM HRM

Employee contract Careful delineation of Aim to go beyond

written contract contract
rules Importance of devising Can do outlook,
clear rules impatience with rules

Guide to management procedures Business need

action
Behavior referent Norms customs and Values and missions
practices
Managerial task monitoring nurturing

Key relation Labor management customer

initiatives Piecemeal integrated

Speed of decision Slow fast

Management role Transactional Transformational

leadership

communication indirect direct

Conflict handling Reach temporary peace Manage climate and

culture

pay Job evaluation( fixed Performance related

rates)
Functions of HRM/ PM
• MANAGERIAL FUNCTIONS
Planning
Organizing
Directing
Controlling
• OPEARATIVE FUNCTIONS
1.Procurement functions
Job analysis
Human resource planning
Recruitment
Selection
Placement
Induction and orientation
Internal mobility
2. development
Training
Executive development
Career planning and development
Human resource development
3. Motivation and compensation
Job design
Work scheduling
Motivation
Job evaluation
Performance appraisal
Compensation and administration
Incentives and benefits
4. Maintenance
Health and safety
Employee welfare
social security measures
5. Integration function
Grievance redressal
Discipline
Teams and teamwork
Collective bargaining
Employee participation and
empowerment
Trade unions and employees
association
Industrial relation
6.Emerging issues
Personnel records
Human resource audit
Human resource research
Human resource accounting
Human resource information system
Stress and counseling
International HRM
Personnel policies ,procedures, and
programmes
• Personnel policies: personnel policies guide
actions .they offer the general standards or
parameters based on which decisions are
reached .they serve as a road map for
managers on a number of issues such as
recruitment ,selection , promotion and
compensation .
• Personnel procedures : a procedure is a well
thought out course of action .it prescribes
the specific manner in which a piece of work
is to be done .it is also called as ‘action
guidelines “
Personnel programmes: are complex
sets of goals ,policies, procedures ,
rules , steps to be taken resources to
be employed and other elements
necessary to carry out a given course
of action. As a single purpose
‘metaplan’ ,they show the major steps
needed to achieve an objective ,which
will be responsible for each and the
appropriate time for carrying it out . A
programme ,thus is a comprehensive
plan covering a large territory
 Types of personnel policies
• Originated policies: these are established
by top mgt deliberately so as to guide
executive thinking at various levels
• Appealed policies: these are formulated to
meet the requirement of certain peculiar
situations which have not been covered by
the earlier policies .such request usually
came from subordinates who fail to handle
the cases based on guidance offered by the
existing policies .
• Imposed policies : these are formed under
pressure from external agencies such as
government trade associations and unions
• General policies: they reflect the basic
philosophy and priorities of the top
management in formulating the broad plan for
mapping out the organization growth chart.
• Specific policies: these policies cover specific
issues such as hiring ,rewarding and bargaining
• Written policies: implied policies are inferred
from the behavior of members ( dress code
,gentle tone while talking to customers ,not
getting angry while at work )
Characteristics of sound policy
• Related to objective
• Easy to understand.
• Precise
• Stable as well as flexible
• Based on facts
• Appropriate number
• Just fair and equitable
• Reasonable
• review
Advantages of personnel
policy
• Delegation
• Uniformity
• Better control
• Standards of efficiency
• confidence
• Speedy decision
• Coordinating devices
Obstacles in personnel policies
• Many times managers are reluctant to
follow policy guidelines
• Often conflicts erupt between implied
and expressed policy statements
especially on employment matters.
• Personnel policies demand constant
revision ,modification and restructuring
• Personnel policies are not easy to
communicate .
• Since policies grant freedom to
managers as to what is to be done in a
particular situation there is always the
danger of some managers strictly stick
on to the policy.
 Organizing the HRM
• When people gather together and
formally agree to combine their efforts
for a common purpose ,on
organization begins to take shape.
• the process of creating an
organization structure is known as
organizing.
 Line relationship

• The relationship existing between two

managers due to delegation of authority and
responsibility and giving or receiving
instructions or orders is called line
relationship.
• Thus line relationship generally exists
between a superior and subordinate.
• The line managers are completely
responsible and accountable for the results
achieved by the employees of the respective
departments and sections.
• This means that though authority is
delegated ,responsibilities for action taken
by subordinates still rests with the superior
Staff relationship
• The staff concept is probably as old as
the organization itself .it is virtually
impossible for line executives to
perform all their functions and
concentrate on their organizational
activities.
• This naturally compels them to secure
advice and help from specialists .staff
relationship make this possible.
• The relationship between a line
manager and the staff authority is
advisory which means that the staff ,a
supporting unit ,recommends actions
or alternative actions to the line
manager
• Catch phrases like “staffs have the
authority of ideas. lines have the
authority of command “
“ staff thinks ,lines do”
“staff advise ,lines work”
According to MCFARNALD ,a staff
manager helps serve ,investigate
,plan ,solve special problems ,support
line effort ,provide ideas and have
special expertise.
organization of personnel department
• Personnel department in line
organization
• Personnel department in functional
organization
• Personnel department in line and staff
organization
• Personnel department in divisionalised
organizational structure.
• Personnel department in a matrix
organizational structure.
 Personnel department in line
organization
Chief executive

Personnel manager

Recruiting officer Training manager Compensation manger Welfare offic

Assistants assistants assistants assistants

 Personnel department in functional
organization
Chief executive

Personnel manager

Recruiting officer Training manager Compensation manger Welfare offic

Assistants assistants assistants assistants

 Personnel department in line and staff
organization
Chief executive

Personnel manager

Recruiting officer Training manager Compensation manger Welfare offic

Assistants assistants assistants assistants

Line relationship
Staff relationship
Role of personnel manager/HR
manager
Administrative roles:
 Policy maker
 Administrative expert
 Advisor
 Housekeeper
 Counselor
 Welfare officer
 Legal consultant
Operational roles:
 Recruiter
 Trainer and developer ,
motivator
 Coordinator linking pin
 Employee champion
Strategic roles
 Change agent
 Strategic partner
Qualities and qualification of
PM /HR manager
• Personnel attribute
 Intelligence
 Education skills
 Discriminating skill
 Executing skill
• Experience and training
• Professional attributes
• Qualification
• Business mastery
• Change mastery
 Strategic human resource
management
• SHRM is the pattern of planned hrd and activities
intended to enable an organization to achieve its goals
.this means accepting the hr function as a strategic
partner both in in the formulation of the company's
strategic as well as the implementation of those
activities through hr activities .
• While formulating the strategic plan hr management
can play a vital role especially in identifying and
analyzing external opportunities and threats
Traditional HR versus strategic HR
Strategic focus

Strategic partner Change agent

system people

Employee champion
Administrative expert

Operational focus
Point of difference Traditional hr Strategic hr

Focus Employee relations Partnership with

external and internal
customers

Role of hr Transactional change Transformational

follower and change leader and
respondent initiator

initiatives Slow fast

Time horizon Short term Short ,medium.long

Control Bureaucratic Organic flexible
policies and
procedures

Job design Tight division of Broad,flexible,cro

labour ss training teams
independence

Key investment Capital ,products People knowledge

accountability Cost centre Investment centre

Responsibility for Staff specialist Line managers

hr
Factors influencing HRM/
future of HRM
1 .size of workforce
2.Composition of workforce
3.Employee expectation
4.Changes in technology
5. life style changes
6.Environmental challenges
7.Personnel function in future
Job redesign
Carrier opportunities
Productivity
Recruitment and selection
Training and development
Rewards
Safety and welfare
8.Changes in 21st century impacting HRM
Hr as a spacing board Of success
Talent hunting
Lean and mean organizations
Labour relations
Health care benefits