© Dr Ashutosh N Misal 12/9/21 12:16 AM

Components of
Human Resource Management

Dr Ashutosh N Misal

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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

1. Human Resource Organization

 Achieving success by organization design and
development, motivation, the application of effective
leadership and the process of getting across the message
about what the enterprise is setting out to do and how it
proposes to do it
 Desired corporate culture is required to be developed
and reinforced
 Organization Development interventions are needed to
achieve integration, improve teamwork, motivate
human resource, develop proper leadership, facilitate
communication system, manage conflict and change and
obtain commitment
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

2. Human Resource Planning

 How many people organization wants; type

of people organization wants at present and
future in terms of their expertise and how
they “fit” the corporate culture
 Forecasting demand and supply for future
labour
 It provides base for recruitment
programmes and Human Resource
Planning
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

3. Human Resource Systems

Programmes such as
 Recruitment Management: Process of obtaining
required human resource
 Information Management: ensuring all policies and
practices well articulated and communicated to the workforce
 Training management: identification of training
needs, preparation of training strategy and appropriate
training system
 Performance Management: technique of appraising
performance systematically against defined criteria, reviewing
progress to date and assessing potential for advancement.
Three main appraisal systems: performance appraisal,
performance coaching and counseling 4
 © Dr Ashutosh N Misal 12/9/21 12:16 AM

3. Human Resource Systems

Programmes such as
 Reward Management: method to ensure that people are
rewarded in accordance with their contribution
 Career Management: charting special career paths for
individuals for advancement in the organization
 Health and Safety Management: maintaining
healthy and safe system of work in an organization
 Discipline Management: administrating discipline to foster
positive employee behaviour that will promote organizational objectives
 Culture Management: system of thinking and behaving
shaped by values, attitudes, rituals and sanctions in an organization
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

4. Human Resource Development

 The process by which the employees of an organization
are helped, in a continuous planned way to: (a) acquire or
sharpen capabilities required to perform various tasks
and functions associated with their present and expected
future roles, (b) develop their general enabling
capabilities as individuals so that they are able to
discover and exploit their own inner potentials for their
own and organizational development purposes; and (c)
develop an organizational culture where superior
subordinate relationship, team work, and collaboration
among different sub-units are strong and contribute to
organizational health, dynamism and pride of employees
(Rao)
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

4. Human Resource Development

Two main purposes

 To provide employees with greater

opportunity to grow and succeed

within the company
 To strengthen management and
professional teams at all
organizational levels
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

4. Human Resource Development

(Udai Pareek) Four subsystems necessary for introducing HRD
 Planning and Administration of H R – MPP,
recruitment, promotion and career planning
 Job and salary administration –
performance appraisal, job analysis and
potential analysis
 Training, performance feedback,
counseling and organizational development
 Industrial relations and welfare of workers
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

4. Human Resource Development

 Ensures that organization has people with skills and
knowledge it needs to achieve its strategic objectives
 Thrust of HRD is on training and development
 Ensure that all people practice support continuous
development, learning and high performance; work
to create participative cultures and to dissolve
autocratic and dependent mindsets; help prepare
people and institutions to succeed in rapidly
changing global village; and treat their employees
like customers for enduring success of the
organization
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

5. Human Resource Relationships

 Handling of employees individually and
collectively as members of trade unions
and staff associations
 To increase cooperation, trust and to
involve employees actively in company’s
affairs
 Deals with problem solving, disciplinary
cases and grievance handling

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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

6. Human Resource Utilization

 To achieve productivity through people
 Treat them as adult, treat them as partners, treat
them with dignity, and respect
 Following actions are required
 Conduct productivity drive
 Improve manpower budgeting and control techniques
 Introduce work measurement
 Use appropriate payment method…bonus, profit sharing etc
 Improve motivation
 Involve employees in improvement programs
 Introduce new technology
 Negotiate productivity agreement
 Device proper training programs
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

7. Human Resource Accounting

 Accounting for people as organizational resource
 Measurement of the cost and value of people to
organizations that involves….
 Costs incurred on recruiting, selecting, hiring,
training and developing employees and judging their
economic value to the organization
 HRA can provide data pertaining to turnover costs,
cost of employee’s absence, and its impact of
performance on others
 Traditional accounting treat people only as expenses
and now as business partners and assets
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

8. Human Resource Audit

 To assess the effectiveness of H R
function and to ensure regulatory
compliance
 Turnover, compensation practice,
exit interview summaries,
employee complaints, H R budget
and expenditures, and so on
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9. Human Resource Functions

 HR involves nothing less than managing change, technology, innovation
and diversity
 Primary responsibilities of H R Manager are…
 Develop a thorough knowledge of corporate culture, plans and policies
 Act as an internal change agent and consultant, expert and facilitator
 Actively involve himself in company’s strategy formulation
 Keep communication open between HR function and individuals and
groups within organization
 Develop various organization teams and their working relationship with
other teams and individuals
 Relate people and work to achieve organizational objectives effectively and
effectively
 To diagnose problems and determine appropriate solution in H R areas
 Provide coordination and support services for the delivery of HRD
programs and services
 Evaluate impact of an HR intervention and improve individual, group and
organizational performance
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

10. Strategic H R M
 Integrating HR into strategic planning process
 Linking HR practices to business strategy and
to one another
 Developing partnership with line management
so that HR programs meet real business needs
 Internally transforming of HR structure and
staff
 Enhancing HR administrative efficiency
 Measuring the bottom-line impact of HR
activities
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

11. H R Balance Score Card

 Provides managers with the instrumentation
they need to navigate to future competitive
success
 BSC measures organizational performance
across four balanced perspectives…
 financial, customers, internal business process,
and learning & growth
 Scorecard emphasizes that the financial and
non-financial measures must be part of the
information system for employees at all levels of
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 © Dr Ashutosh N Misal 12/9/21 12:16 AM

11. H R Balance Score Card

 Financial perspective…Does the business strategy,
implementation, and execution adds value for
shareholders?
 Customer perspective…How well has the business
articulated and executed its customer and market
strategies to deliver superior future financial returns?
 Internal Business Process perspective…deliver value
proposition to attract and retain customers and
satisfy shareholders expectations of financial returns
 Learning & Growth perspective…What are people
capabilities, learning and innovation that add value to
organization?
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