Maharana Pratap Group of Institutions, Mandhana, Kanpur

(Approved By AICTE, New Delhi And Affiliated To AKTU, Luck now)

Digital PPT
[Department of MBA]

Course :MBA
Semester :2nd
Subject Name :Human Resource Management
Subject Code : KMB N 202
Lecture No. /Topic :Unit-1
Prepared by : Kamini Singh

1
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 Concept of HRM and Objectives
• Edwin Flippo defines- Human Resource Management as “planning,
organizing, directing, controlling of procurement, development,
compensation, integration , maintenance and separation of human
resources to the end that individual, organizational and social objectives
are achieved.”
• Thus, HRM can be defined as a process of procuring, developing and
maintaining competent human resources in the organisation so that the
goals of an organisation are achieved in an effective and efficient manner.
In short, HRM is an art of managing people at work in such a manner that
they give their best to the organisation for achieving its set goals.
Objectives:
The primary objective of HRM is to ensure the availability of right people for
right jobs so as the organisational goals are achieved effectively.
This primary objective can further be divided into the following sub-
objectives:
•To help the organisation to attain its goals effectively and efficiently by
providing competent and motivated employees.
•To utilize the available human resources effectively.
•To increase to the fullest the employee’s job satisfaction and self-
actualisation.
•To develop and maintain the quality of work life (QWL) which makes
employment in the organisation a desirable personal and social situation.
•To help maintain ethical policies and behaviour inside and outside the
organisation.
•To establish and maintain cordial relations between employees and
management.
•To reconcile individual/group goals with organisational goals.
 Human Resource Management Process
Human Resource Planning: Generally, we consider Human Resource
Planning as the process of people forecasting. Right but incomplete! It also
involves the processes of Evaluation, Promotion and Layoff.
• Recruitment: It aims at attracting applicants that match a certain Job
criteria.
• Selection: The next level of filtration. Aims at short listing candidates who
are the nearest match in terms qualifications, expertise and potential for a
certain job.
• Hiring: Deciding upon the final candidate who gets the job.
• Training and Development: Those processes that work on an employee
onboard for his skills and abilities upgradation.
 HRM vs. Personnel Management

Personnel Management
• Personnel Management is a part of management that deals with the
recruitment, hiring, staffing, development, and compensation of
the workforce and their relation with the organization to achieve
the organizational objectives. The primary functions of the
personnel management are divided  into two categories:
Operative Functions: The activities that are concerned with procurement,
development, compensation, job evaluation, employee welfare,
utilization, maintenance and collective bargaining.
Managerial Function: Planning, Organizing, Directing, Motivation,
Control, and Coordination are the basic managerial activities performed
by Personnel Management.
Human Resource Management

•Human Resource Management is that specialized and organized branch

of management which is concerned with the acquisition,
maintenance, development, utilization and coordination of people at
work, in such a manner that they will give their best to the enterprise.

• It refers to a systematic function of planning for the human resource

needs and demands, selection, training, compensation, and performance
appraisal, to meet those requirements.
. HRM covers a broad spectrum of activities which includes:
•Employment
•Recruitment and Selection
•Training and Development
•Employee Services
•Salary and Wages
•Industrial Relations
•Health and safety
•Education
 HRM vs. HRD

BASIS FOR
HRM HRD
COMPARISON

Human Resource Management refers to Human Resource Development means a

the application of principles of continuous development function that intends to
Meaning
management to manage the people improve the performance of people working in
working in the organization. the organization.

What is it? Management function. Subset of Human Resource Management.

Function Reactive Proactive

To improve the performance of the To develop the skills, knowledge and
Objective
employees. competency of employees.
Process Routine Ongoing
Dependency Independent It is a subsystem.

Concerned with People only Development of the entire organization.

 Objectives of HRD
HRD is associated with the following objectives:
•Work Opportunity: HRD provides an opportunity and a systematic framework
for the development resource in the organisation for full expression of their
talents.
•Development of Traits: HRD is associated with the development of total
personality so that these can show and use their talent for the benefit of the
organisation.
•Ability development: HRD makes capable employees. Thus they can develop
their capability by which they can do their present job easily.
•Creative Motivation: HRD manager motivates employees and improve their
level of performance.
•Good Relation: HRD manager stresses the need of coordination which
is used for the benefits of himself and for the benefits of those who
come in his/their touch.
•Develop team spirit: HRD manager develops the spirit of teamwork;
team work for it is used for the effective cooperation and coordination of
each employee which ultimately checks industrial unrest.
•Organisational Growth: HRM manager is responsible for developing
health, culture and effective work plan which always result in more
profitability.
•Human Resource Information: HRM manager in general keeps all
records to employees working in his organisation; these can be used at
any time when these are needed.
 Focus of HRD System

• Focus on enabling capabilities

• Balancing adaptation and change in the organisational culture
• Attention to contextual factors
• Building linkages with other functions
• Balancing specialisation and diffusion of the function
• Ensuring respectability for the function
• Balancing differentiation and integration

• Establishing linkage mechanisms

• Developing monitoring mechanisms
 Structure of HRD System

• The precise organizational plan for an HRD department depends on the

type and of the organization in which it is located. Here, we are giving
hypothetical examples of organizational structure of three different
organizations to appreciate the functioning of HRD departments in
different organizations
 Role of HRD Manpower
Training and Development of Manpower
• Among manpower development’s functions is to oversee the development
of human expertise in the organization to improve productivity and
efficiency. Through planning and monitoring of employee work results,
development programs are designed to ensure employees acquire pertinent
skills and qualities required for working at higher levels.
Performance Appraisal and Management
• Performance evaluations and reviews are a crucial opportunity for
employee improvement in your organization. Manpower development
should devise techniques for managers to use in conducting meaningful
and effective appraisals.
•Manpower Planning and Strategy Development
Planning consists of getting the right number and right kind of people in the
right place. This ensures employees are assigned tasks for which they are
well-suited to help the organization achieve its goals.
Human resource manpower development has to analyze the current
manpower inventory, make future manpower forecasts and determine
whether recruitment from outside or promotions from within are necessary
to boost performance.
 SHRM
• SHRM is the process of aligning the business
strategy with the company’s human resource
practices, so as to attain strategic goals of an
organization. In SHRM, the workforce of the
company is managed proactively. Take a glance
at the article presented here that explains the
difference between HRM and SHRM.
 BASIS FOR COMPARISON HRM SHRM
Meaning Human resource management SHRM is a managerial
(HRM) implies the governance function which implies
of manpower of the framing of HR strategies in
organization in a thorough and such a way to direct
structured manner. employees efforts towards
the goals of organization.

Nature Reactive Proactive

Responsibility lies with Staff specialist Line manager
Approach Fragmented Integrated
Scope Concerned with employee Concerned with internal and
relations external relations
Time horizon Short term Long term
 BASIS FOR COMPARISON HRM SHRM
Basic factor Capital and products People and knowledge
Change Follows change Initiates change
Accountability Cost center Investment center
Control Stringent control over It exhibits leniency.
employees
 BARRIERS TO STRATEGIC HRM

• Short-term mentality/focus on current performance.

• The inability of HR to think strategically.
• Lack of appreciation for what HR can contribute.
• Failure to understand line manager’s role as an HR
manager.
• Difficulty in quantifying many HR outcomes.
• Perception of human assets as higher-risk investments.
• “Incentives” for changes that might arise.
 What is HR strategy?

An HR strategy is your plan to build and maintain a team capable of delivering

business objectives. A typical HR strategy will cover elements such as: 
• Recruitment and on boarding
• Training and professional development
• Employee engagement
• Organizational culture and work environment
• Operational policies and compliance
• Compensation strategy and Total Rewards
• Employee retention
• Succession planning
 Why is HR strategy important for business strategy? 

• Employer reputation
• Cost management
• Team stability
• Depth of skills
• Compliance
• Strategy and planning
 Five steps to align HR with the business strategy

1. Understand the main strategic goals

2. Map out a skills matrix
3. Formalize your talent strategy
4. Measure HR outcomes
5. Stay in touch with the strategists
 The dynamic role of HR in Merger & Acquisitions

• The Human Resource department acts as a trusted adviser to

the employees of an organization along with the management
who intend to enter to an M&A deal.
 The dynamic role of HR in Merger & Acquisitions

• Analyzing Organizational Cultures

• Boosting the Morale of Anxious Employees
• Solving Employee Benefits Issues
• HR Plays a Substantial Role in Merger & Acquisitions
 TQM & HRM

• Total quality management (TQM) consists of an organization-wide

efforts to make a continuous improvement in its ability to deliver high-
quality products and services to customers.

• Origin: TQM, in the form of statistical quality control, was invented by

Walter A. Shewhart. It was initially implemented at Western Electric
Company, in the form developed by Joseph Juran who had worked
there with the method. TQM was demonstrated on a grand scale by
Japanese industry through the intervention of W. Edwards Deming.
 Guideline of total quality management should contain the
following items:
• TQM is a customer focused approach
• It is company-wide strategy and involves everyone in the organization
• Aims at satisfying the customer or delighting them
• Provides best quality product and satisfy them in a cost effective manner
• Fundamental changes in basic beliefs and practices
• Prevention of defects is the way and the target is zero defects
• Total quality management is methodical
• Provides meaningful measures of performance that guide the self-
improvement efforts of everyone involved
 Principles for the Total Quality Management:

• TQM: “Doing the Right Thing, Right the First Time, All the
Time; always striving for Improvement & always satisfying the
Customer.
• Deming’s 14 Points on Quality Management, a core concept
on implementing total quality management, is a set of
management practices to help companies increase their
quality and productivity.
 Deming’s 14 Points on Quality Management
1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total
cost by working with a single supplier.
5. Improve constantly and forever every process for planning, production and
service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
 Deming’s 14 Points on Quality Management
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for
management.
12. Remove barriers that rob people of pride of workmanship, and eliminate
the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for
everyone.
14. Put everybody in the company to work accomplishing the transformation.
 6 Basic Concepts of TQM:

• Top management should be aware of current situation and needs to

be committed towards TQM implementation.
• Focus customer requirements and product/service expectations.
• Involve employees in understanding the quality aspects and make
them accountable
• Continuous improvement in the process is required
• Treat suppliers as your partners
• Develop tracking mechanism for processes and improve it as per
business requirements
• Total quality management (TQM) has high impact on human resource
management. It emphasizes self-control, autonomy, and creativity among
employees and calls for greater active cooperation rather than just
compliance.
• Alignment of HR and Quality: A fruitful cooperation between HRM and TQM
can produce better organizational results. The alignment of HR and quality
policies, such as creating and communicating the TQM vision, preparing the
organization and employees for TQM implementation and generating quality
awareness among the employees across all levels, functions, and
departments, should contribute to an increase company performance.
 Impact of TQM on Human Resource Management
• TQM and HR Practice
• TQM and Job Analysis
• TQM and Talent Resourcing
• TQM and Training
• TQM and Employee Empowerment
• TQM and Team Work
• TQM and Leadership
• TQM and Strategic HRM
• Total Quality HR Policy
• For example the Nestle HR Policy includes the following which depicts the emphasis
of quality:
• “The prime responsibility of the HR managers and their staff is to contribute actively
to the quality of HR management throughout the organisation by proposing adequate
policies, ensuring their consistent application and coherent implementation with
fairness. They are supposed to provide professional support in handling people
matters but should not substitute themselves to the responsible manager.”
• “Each new member joining Nestlé is to become a participant in developing a
sustainable quality culture which implies a commitment to the organisation, a sense
for continuous improvement and leaves no place for complacency.”
• “The quality of communication in the organisation is an essential part of the dialogue
that each manager will have with her/his employee’s matters”
THANK YOU