Managing Human Resources

[KMBN- 202]
 Syllabus
Unit Description
Essentials of HRM : Nature of HRM, Scope, functions and
importance of HRM, HRM vs.HRD, SHRM: Introduction,
characteristics and scope of SHRM, SHRM vs. Conventional
UNIT-1 HRM, Barriers to strategic HRM, Linking HR strategy with
business strategy, HRM linkage with TQM & productivity.
 Course Outcomes (Cos)
1.Integrated perspective of HRM in modern business. Ability
to plan human resources and implement techniques of job
design
2. Competency to recruit, trains, and appraise the performance
of employees.
3. Rational design of compensation and salary administration.
4. Ability to handle employee issues and evaluate the new
trends in HRM.
5. Provide basis knowledge related to safety and health of
employee.
 Books Recommended

Reference Books:-
 V.S.P.Rao, Human Resource Management (Text and
Cases) Himalaya Publications, 13th Edition.
 Durai Praveen, Human Resource Management Pearson
Publication, 2nd Edition.
 Gary Dessler and BijuVarkkeyH uman Resource
Management, Person Publication, 2013, 14th Edition.
 Seema Sanghi, Human Resource Management, Vikas
Publlications, 2014, 5th Edition.
 K. Aswathappa, Human Resource Management, McGraw
Hill Education, 2013, 7th Edition.
UNIT - 1
 Meaning of HRM

Human resource management means

employing people, developing their resources,
utilizing, maintaining and compensating their
services in tune with the job and
organizational requirements.
 Put them together
According to Flippo

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 societal objectives are
accomplished.
 Nature of HRM

 Integral part of the process of

Management.
 Comprehensive function.
 Pervasive function.
 People oriented.
 Based on human relations.
Contd..
Scope of HRM
 Principles of HRM

 Individual development.
 Scientific Selection.
 Free Flow of Communication.
 Employee Representatives.

 Fair Remuneration.

Contd..
Functions of HRM

 Managerial.

 Operative.

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Operative functions

 Procurement
• Job Analysis .
• Human Resource Planning.
• Recruitment and Selection.
• Placement.
• Induction.
• Transfer.
• Promotion.
• Separation.
Contd..
 Operative Functions
(Contd)

 Development

• Performance Appraisal.
• Training.
• Planning and Development.

Contd..
Operative Functions
(Contd)

 Compensation
• Job Evaluation.
• Wage and Salary.
• Bonus and Incentives.
• Payroll.

Contd..
Operative Functions
(Contd)

 Integration
• Motivation.
• Job Satisfaction.
• Grievance Redressal.
• Collective Bargaining.
• Discipline.
 Human Resource Development
(Contd)
Definition :-
HRD is process in which the employees of an
organization are continually helped in planned way
to:-
 Acquire or sharpen capabilities required to
perform various functions associated with their
present or expected future roles.
 To develop an organizational culture where
superiors subordinate relationships teamwork
and collaboration among different subunits are
strong and contribute to organizational wealth.
HRM Vs HRD

Contd..
HRM Vs HRD
(Contd)
 What is strategic HRM?

Strategic human resource management is the practice

of attracting, developing, rewarding, and retaining
employees for the benefit of both the employees as
individuals and the organization as a whole.

In an organisation SHRM means accepting and

involving the HR function as a strategic partner in the
formulation and implementation of the company's
strategies through HR activities such as recruiting,
selecting, training and rewarding personnel.
Characteristics of Strategic HRM

 Recognition of the outside environment.

 The impact of competition.
 Long-range consideration.
 Focus on decision-making.
 Consideration of all personnel.
 Integration with corporate strategy.
Process of SHRM
 HR’s role in strategy formulation and
interpretation

Strategy Formulation:-
• Corporate-level Strategy
• Business-level Strategy
• Functional-level Strategy

22
 Strategy Implementation
(cont..)
• Strategies formulated need to be implemented. The
implementation of strategies is often more difficult than its
formulation.
• Implementing strategies require such actions as altering sales
territories, adding new departments, closing facilities, hiring
new employees, changing an organization’s pricing strategies,
developing financial budgets, formulating new employee
benefits, establishing cost-control procedures, changing
advertising strategies, building new facilities, transferring
managers among divisions and building a better computer
information system.

23
 Strategy Implementation
(cont..)
(A)Encouragement of Pro-active Rather than Reactive
Behavior.
(B) Explicit Communication of Goals.
(C) Stimulation of Critical Thinking.
(D)Productivity as an HR Based Strategy.
(E) Quality and Service are HR-based Strategies.
(F) Proficient Strategic Management.

24
 Benefits of SHRM
 Identifying and analyzing external
opportunities and threats that may be crucial
to the company’s success.
 Provides a clear business strategy and vision
for the future.
 To supply competitive intelligence that may be
useful in the strategic planning process.
 To recruit, retain and motivate people.
 To develop and retain of highly competent
people.
Contd..
Traditional HRM Vs Strategic HRM
 Barriers To Strategic HRM

 Short term mentality.

 Unable to think strategically.
 Can’t understand the entire organization,
issues and challenges.
 Lack of appreciation.
 Lack of support from line managers.
 Difficulty in quantifying many of the
outcomes and benefits of HR programs.

Contd..
 Barriers To Strategic HRM
(Contd)

 Human assets are not owned by the

organization.
 Technology & information.
 Change resistance.

 Improper implementation.

Contd..
 Barriers To Strategic HRM
(Contd)

 Resisting the vision and mission of the change

effort.
 Interdepartmental conflict.
 The lack of commitment of the entire senior
management team.
 Lack of plans to integrate internal resource with
external requirements.
 Limited time, money and the resources.

Contd..
 Barriers To Strategic HRM
(Contd)

 The status quo approach of employees.

 Fear of incompetence by senior level managers
to take up strategic steps.
 Fear towards victimization in the wake of
failures.
 Improper strategic assignments and leadership
conflict over authority.
 Ramifications for power relations.

Contd..
 Barriers To Strategic HRM
(Contd)

 Resistance that comes through the legitimate

labor institutions.
 Rapid structural changes.
 Economic and market pressures influence the
adoption of strategic HRM.
 More diverse, outward looking approach.
Linking HR Strategy with Business Strategy
 Understanding strategies.

 Mapping a strategy.

 Practices that drive results.

 Let's talk business.

HR Strategy Fit
 Total Quality Management
 TQM is a systems approach to management that
aims to continuously increase value to customers by
designing and continuously improving the
organizational process and systems.
 It involves all the employees and extends backward
and forwards to include the supply chain and the
customers.
 As the world total implies, total quality
management is concerned with managing the
entire system, and not only subsystems or
functional departments.
Principles of TQM
 General.
 Design and organisation.
 Operations.
 Human resource development.
 Quality and process improvement.
 Accounting and control.
 Capacity.
 Marketing and sales.
36
 HRM Linkage with TQM

TQM and HRM are in pursuit of the

same goals-profitability, productivity, a
customer-oriented company and a
motivated workforce.

Contd..
HRM Linkage with TQM
(Contd)

To be fully successful and self-

sustaining TQM requires an extensive
refashioning of HRM practices.

Contd..
 HRM Linkage with TQM
(Contd)

Successful implementation of various

TQM practices are positively related to
HRM functions.
 Role of HR Manager
1. Advisory
2. Pro-Acting
3. Welfare
4. Developmental
5. Mediator’s
6. Social Upliftment
7. Counsellor’s
8. Motivator’s
40
Roles of HR in Merger and Acquisition

41
 HR Technology
• In the midst of an ongoing pandemic, HR technology
continues to serve as a key asset for HR leaders. The ability to
disseminate information to a remote workforce is made easier
when the proper digital communication channels are in place.
• Small businesses may also realize that now is the time to
capitalize on trends in HR tech and upgrade their systems to
help remain in compliance, effectively track time, process
payroll, and maintain employee information. For larger
corporate structures, advances in human resource technology
are helping HR leaders become even more engaged in their
company's overall strategy objectives.

42
 Changing roles of HR due to technology

•Better services to line managers.

•Enhancing management
•Effective recruiting (E-Recruitment).
•Data management and critical analysis
•Inventory management tools and human resource
management
•Cost-reduction and efficiency
•Customer service and human resource management
•Career development and human capital management
•Automation of HR processes
•Analytics grants access to more data
43
HRM Linkage with Productivity
 Case Study
Siemens Builds a Strategy-Oriented HR System

Siemens is a 150-year-old German company, but it’s

not the company it was even a few years ago. Until
recently, Siemens focused on producing electrical
products. Today the firm has diversified into software,
engineering, and services. It is also global, with more
than 400,000 employees working in 190 countries. In
other words, Siemens became a world leader by
pursuing a corporate strategy that emphasized
diversifying into high-tech products and services, and
doing so on a global basis.
Contd..
 Case Study
(Contd)

With a corporate strategy like that, human resource

management plays a big role at Siemens. Sophisticated
engineering and services require more focus on
employee selection, training, and compensation than
in the average firm, and globalization requires
delivering these services globally. Siemens sums up the
basic themes of its HR strategy in several points. These
include:
1 - A living Company is a learning Company. The high-
tech nature of Siemens’ business means that
employees must be able to learn on a continuing basis.
Contd..
 Case Study
(Contd)
Siemens uses its system of combined classroom and
hands-on apprenticeship training around the world to
help facilitate this. It also offers employees extensive
continuing education and management development.
2 - Global teamwork is the key to developing and
using all the potential of the firm’s human resources.
Because it is so important for employees throughout
Siemens to feel free to work together and interact,
employees have to understand the whole process, not
just bits and pieces. To support this, Siemens provides
extensive training and development.

Contd..
 Case Study
(Contd)
It also ensures that all employees feel they’re part of a
strong, unifying corporate identity. For example, HR
uses cross-border, cross-cultural experiences as
prerequisites for career advances.
3 - A climate of mutual respect is the basis of all
relationships-within the Company and with society.
Siemens contends that the wealth of nationalities,
cultures, languages, and outlooks represented by its
employees is one of its most valuable assets. It
therefore engages in numerous HR activities aimed at
building openness, transparency, and fairness, and
supporting diversity.
Contd..
 Case Study
(Contd)
Questions :-
1. Based on the information in this case, provide
examples, for Siemens, of at least four strategically
required organizational outcomes, and four
required workforce competencies and behaviors.
2. Identify at least four strategically relevant HR
system policies and activities that Siemens has
instituted in order to help human resource
management contribute to achieving Siemens’
strategic goals.
3. Provide a brief illustrative outline of a strategy map
for Siemens.
 Case Study
(Contd)
Solution (Q-1)

 Problems identification :-
• Strategically required organizational outcomes?
• Required workforce competencies and
behaviors?
 Assumptions :-
• A living company is a learning company.
• Since it’s a big MNC, therefore, to establish world
class performance, it has to set benchmarks
which can come through learning experience.

Contd..
 Case Study
(Contd)

 Analysis :-
• System of combined classroom and hands on
apprenticeship training.
• Global program of continuing education and
management development.
• Cross cultural training programs for sharing of
experience.
• It is a global organization with more than
400,000 employees working in 190 countries.

Contd..
 Case Study
(Contd)

 Analysis (cont) :-
• Global leader by diversifying into high-tech
products and services.
• Focus on employee selection, training, and
compensation better than in the average firm.
• Uses its system of combined classroom and
hands-on apprenticeship training.
• Believes that the wealth of nationalities is most
valuable asset.
• HR activities-openness, transparency, and
fairness, and supporting diversity.
Contd..
 Case Study
(Contd)
 Alternate Solutions :-
• Option 1 - An employee selection and compensation
system that attracts and retains the human talent
necessary to support global diversification into high-
tech products and services.
• Option 2 - Focus on developing the HRIS in the
present global scenario.
• Option 3 - Introducing the concept of balance score
card.
• Option 4 - A climate of mutual respect in a global
organization.
• Option 5 – Mix of all above.
Contd..
 Case Study
(Contd)
 Proposed Solution :-
Mix of all, to include the following :-
• To be able to perform in a team which can deliver
sophisticated engineering and services globally.
• To project itself a learning organization by
implementing an ongoing program of continuing
education and management development.
• To have a holistic approach towards employee
enhancement so that employees can have a strong
and unified corporate identity.
• The hr strategy should incorporate cross border and
cross cultural experiences as pre requisites for career
advancement.
Contd..
 Case Study
(Contd)

 Managerial applications :-
• Innovative training and development
methodology.
• Strategy oriented management.
• In Siemens, people are the most valuable asset,
hence, talent management is one of the
postulates of their strategic orientation.
• Selection and compensation should retain
best talent.

Contd..
 Case Study
(Contd)
 Conclusion :-
• Strategically required organizational outcomes
would be the following:
 An employee selection and compensation
system that attracts and retains the human
talent necessary to support global diversification
into high-tech products and services.
 Focus on developing the HRIS in the present
global scenario.
 Introducing the concept of balance score card.
 A climate of mutual respect in a global
organization.
Contd..
 Case Study
(Contd)

 Conclusion (cont) :-
• Workforce competencies and behaviors could
include: -
 Openness to learning.
 Teamwork skills.
 Cross-cultural experience.
 Openness, respect, and appreciation for
workforce diversity.

Contd..
 Case Study
(Contd)

 Recommendations :-
• Siemens has to maintain, sustain & further
develop it self to be a very dynamic and
innovative organization.
• It should be interesting work place, framing
such policies, to have global net/teamwork.
• The company should be committed to working
with its human resource to ensure that they
have the best skills to meet work place
demands of the future.
 Case Study
(Contd)
Solution (Q-2)
 Problem identification:
• HR Strategy formulation in Globalization.
• Culture Development for team work to take
advantage of all the potential of the employees.
• Creating a climate of transparency, fairness and
diversity.
• Strategy for supporting diversity.

Contd..
 Case Study
(Contd)

 Assumption:
• Siemens employees are part of corporate identity.
• Siemens wants social skills among its employees.
• Siemens is a world leader.
• Unified strategy approach in diversified
employee.

Contd..
 Case Study
(Contd)

 Analysis:
• Human resource management plays a big role in
Siemens.
• Corporate strategy emphasized into high tech
products and services.

Contd..
 Case Study
(Contd)

 Alternate Solution :
• Streamlining effect with organization structure.
• Translating the company’s strategy into Human
Resource Policy and Practice.
• Attentive approach in training and compensation
comparatively to other average firm.
• Strategy is formed to create a climate of mutual
respect along with extensive continuing education
and management development.

Contd..
 Case Study
(Contd)

 Proposed Solution :
• Employee’s association towards Siemens is quite
helpful strategy in Siemens strategic goal.
• Continuing education and management
development.
• Enhanced internal selection process.
• Organizational development activities aimed at
building openness, transparency, fairness, and
diversity supported training.

Contd..
 Case Study
(Contd)

 Managerial application :
• Strategic management.
• Overarching Human resource management.

Contd..
 Case Study
(Contd)

Conclusion

At Siemens live and foster an ownership culture – a

culture that encourages every individual in
company to give his or her best in his or her
position in order to help build Siemens’ long-term
success.

Contd..
 Case Study
(Contd)

Recommendation

To leverage the diverse opportunities of complex

world a company needs a clear direction, a strong
internal setup, and people who follow the set
course and turn plans and ideas into reality.
 Case Study
(Contd)

Solution (Q-3)
 Financial :
Expanding quality products globally.
 Customer :
Attract and keep customers.
 Execution :
Team work, learning, organization managing,
diversified workforce.
 Employees :
Developing culture, training & development.
 Case Study
(Contd)

Solution (Q-3)
• Developing the strong PRO base who can gather
Social suggestion for the betterment of the organistion

Customer • Attract and keep customers

Strategy • Expanding quality products globally

• Team work, learning organisation, managing

HR Policy diversified workforce

Employees Consideration • Developing culture, training & development