CHAPTER-4: STRATEGIC HUMAN RESOURCE

MANAGEMENT

1. WHAT IS HUMAN RESOURCE MANAGEMENT?

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 CHAPTER-4: STRATEGIC HUMAN RESOURCE
MANAGEMENT

4.1 CONCEPT OF HUMAN RESOURCE MANAGEMENT

Human Resource Management is defined as:

"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" (Edwin
Flippo)

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 4.1 CONCEPT OF HUMAN RESOURCE MANAGEMENT

•Human resource management means management of people at work.

•HRM is the process which binds people with organizations and helps both people
and organization to achieve each other’s goals. Various policies, processes and
practices are designed to help both employees and organizations to achieve their
goals.
•Human resource constitutes of all the management decisions responsible for
relationship between organization and employees.
•HRM is the field of management which plans, organizes, controls the functions of
procurement, development, maintenance and utilization of the work force so that.
– Organization goals can be accomplished.
– Objectives of human resources can be accomplished
– Objectives of society can be accomplished.
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 4.1 CONCEPT OF HUMAN RESOURCE MANAGEMENT

• Human resource management can be concluded as a

business oriented philosophy concerned with the
management of people in order to obtain added
value from them and achieve competitive advantage.
• Human resource management is a branch of
management that deals with people at work; it is
concerned with the human dimensions of
management of the organization.
• As organizations consist of people, acquiring them,
developing their skills, providing them with
motivation in order to attain higher go
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 4.2 OBJECTIVES OF HUMAN RESOURCE
MANAGEMENT

Societal Objectives
To use its human resources for society’s benefit in socially and
ethically responsible manner, for example, non-discrimination,
safety, health, and high standard of living.

Organisational Objectives
To bring about organisational effectiveness. It is a means to assist the
organisation with its primary objectives.

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 4.2 OBJECTIVES OF HUMAN RESOURCE
MANAGEMENT

Functional Objectives
To maintain the HRD department’s contribution at a level
appropriate to organization’s needs. Human resources are to be
adjusted to suit the organization’s demands.

Personal Objectives
To assist employees in achieving their personal goals. Otherwise,
employee performance and satisfaction may decline giving rise to
employee turnover.

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 4.3 HUMAN RESOURCE FUNCTIONS

Human Resource Planning

The process of determining the number and types of employees
needed to accomplish organizational objectives.
Job Analysis
The process of describing the nature of a job and specifying the
human requirements, such as skills, and experience needed to
perform it.
Staffing
The process of recruitment and selection of human resources for an
organization.

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 4.3 HUMAN RESOURCE FUNCTIONS

Orientation
A function of acquainting/describing for new employees with
particular aspects of their new job, including pay and benefit
programmes, working hours, company rules and expectations.
Training and Development
A function of imparting employees the skills and knowledge to
perform their jobs effectively.
Performance Appraisal
This function monitors employee performance to ensure that it is at
acceptable levels.

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 4.3 HUMAN RESOURCE FUNCTIONS

Career Planning
Function of assessing individual employee’s potential for growth and
advancement in the organisation.
Compensation
A function of determining how much employees should be paid for
performing certain jobs.
Benefits
Benefits are another form of compensation to employees other than
direct pay for work performed.

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 4.3 HUMAN RESOURCE FUNCTIONS

Labour Relations
Function of interacting with employees and negotiating with the
unions regarding wages, service conditions, and resolving disputes
and grievances.
Record-keeping
This function involves recording, maintaining, and retrieving
employee-related information for promotions, increments, and other
actions.
Personnel Research
Through attitude surveys, employee opinions are gathered on wages,
promotions, welfare services, working conditions, job security,
leadership, industrial relations, etc., to develop appropriate personnel
programs.
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HUMAN RESOURCE PLANNINGN
RESOURCE PLANNING

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 4.4 WHAT IS HUMAN RESOURCE PLANNING?

• Human Resource planning can be defined as a process

by which an organization ensures that it has the right
number and kinds of people,
• at the right place,
• at the right time,
• capable of effectively and efficiently completing those tasks
that will help the organization achieve its overall objectives.
• In other words, HRP can be defined as planning for the
future personnel needs of an organization, taking into
account both internal activities and factors in the
external environment.
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 4.5 NEED/ADVANTAGES/ROLE/IMPORTANCE OF HRP

• Now-a-days organisations are fully dependent on human

resources. Thus, they are giving great importance to Human
Resource (Manpower) Planning.
• Following points bring out the need / advantages / role /
importance of HRP :-
1. To make optimum utilisation of human resources :
– HRP helps to make optimum utilisation of the human
resources in the organisation.
– It helps to avoid wastage of human resources.
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 4.5 NEED/ADVANTAGES/ROLE/IMPORTANCE OF HRP

2. To forecast manpower requirements :

• HRP helps to forecast the future manpower requirements
of all organisations.
• It helps to forecast the number and type of employees who
will be required by the organisation in a near future.
3. To provide manpower :
• Every organisation requires manpower to conduct its
business activities.
• HRP provides different types of manpower as per the
needs of the organisations.

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 4.5 NEED/ADVANTAGES/ROLE/IMPORTANCE OF HRP

4. To face manpower problems :

• HRP helps to face the manpower problems, which are caused
by labour turnover, introduction of new technologies, etc.
5. To integrate different plans :
• HRP helps to integrate the personnel plans with the other
important plans of the organisation.
6. To make employee dev`t programmes more effective :
• HRP selects the right man for the right post.
• The right man will get maximum benefits from the employee
development programmes.
• Therefore, HRP helps to make the employee development
programmes more effective.

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 7.

4.5 NEED/ADVANTAGES/ROLE/IMPORTANCE OF HRP

7. To reduce labour cost :

– HRP helps to avoid both shortage and surplus of labour.
– It helps to make optimum utilisation of labour.
– It also helps to reduce labour turnover. All this helps to reduce
labour cost.

8. To enable organisations to grow :

– When an organisation grows, the number of jobs also increases.
More employees are required to perform these jobs.
– HRP helps to supply these employees to the organisations.
– So HRP enables the organisation to grow. 16
 4.5 NEED/ADVANTAGES/ROLE/IMPORTANCE OF HRP
9. To identify potential replacements :
– Each year many employees either retire or leave or are taken
out of the organisation.
– HRP helps to find replacements for these employees.
– These replacements may be either from inside or from
outside the organisation.
10. To avoid disturbance in the production process :
– In HRP, the manpower requirements of the organisation are
determined well in advance.
– So the manpower is supplied continuously to the
organisation.
– This helps the production process to run smoothly.
– Thus, HRP helps to avoid disturbances in the production
process. 17
 4.5 NEED/ADVANTAGES/ROLE/IMPORTANCE OF HRP

11. Basis for effective recruitment and selection :

– HRP is the basis for effective recruitment and selection in
the organisation.
– It helps the organisation to select the right man for the
right post.

12.Basis for employee development programmes :

– HRP is the basis for employee development programmes.

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 4.6 STEPS IN HUMAN RESOURCE PLANNING PROCESS

• HRP is done by the HRD manager. He is supported by the

HRD department.
• He takes following Steps in the process of Human Resource
Planning HRP.
1. Review of Organisation's Objectives
– The HRD Manager first studies the objectives of the organisation.
– Then, he prepares a list of all the activities (jobs) that are required
to achieve the objectives.
– He also does Job's analysis. 19
 4.6 STEPS IN HUMAN RESOURCE PLANNING PROCESS

2. Estimation of Manpower Requirements

– The HRD manager then estimates the manpower
requirement of the organisation.
– That is, he finds out how many people (manager and
employers) will be required to do all the jobs in the
organisation.
– Estimation of manpower requirements must be made in
terms of quantity and quality.
3. Estimation of Manpower Supply
– The HRD manager then estimates the manpower supply.
– That is, he finds out how many managers, and employers
are available in the organisation.

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 4.6 STEPS IN HUMAN RESOURCE PLANNING PROCESS

4. Comparison of Manpower

• HRD manager compares manpower requirements with

manpower supply.

4.1. In case of no difference

• If there is no difference between manpower requirements and

manpower supply, then he does not take any action.

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 4.6 STEPS IN HUMAN RESOURCE PLANNING PROCESS

4.2. In case of difference

• If there is a difference between manpower requirements and the
manpower supply, he takes the following actions:
(i) Manpower Surplus
• If manpower requirements are less than manpower supply,
then there is a surplus.
• During manpower surplus, HRD manager takes the following
actions:
− Termination i.e. removal of staff
− Lay-off
− Voluntary retirement

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 4.6 STEPS IN HUMAN RESOURCE PLANNING
PROCESS
(ii) Manpower Shortage
• If manpower requirements are greater than manpower supply then
there is manpower shortage.

• During manpower shortage, HRD manager takes the following

actions:

− Promotions
− Overtime
− Training to improve quality
− Hire staff from outside

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 4.6 STEPS IN HUMAN RESOURCE PLANNING PROCESS

5. Motivation of Manpower
• HRP also motivates the managers and employees by providing
financial and non-financial incentives.

6. Monitoring Manpower Requirements

• The HRD manager must continuously monitor the manpower
requirements.
• This is because many employees and managers leave the
organisation by resignation, retirement, etc. and new work force
must take their place fill the manpower gap.
• This helps in uninterruptible functioning of the organisation.
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 4.7 WHAT IS JOB ANALYSIS?

Job analysis is the systematic study of jobs to identify the

observable work activities, tasks, and responsibilities
associated with a particular job or group of jobs to meet a
variety of organizational objectives.

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 4.7 WHAT IS JOB ANALYSIS?
• What job analysis is:
– It is a systematic method for gathering information.
– It focuses on work behaviours, tasks, and outcomes.
– It identifies the personal qualifications necessary to perform
the job and the conditions under which work is performed.
– It reports the job as it exists at the time of analysis; not as it
was in the past nor as it exists in another organization.
• What job analysis is not:
– It is not an analysis of thought processes, attitudes, traits, or
aptitudes
– It is not a time and motion study
– It is not an analysis of an individual position

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 4.8 COMMON APPLICATIONS OF JOB ANALYSIS

 Recruitment, selection, and placement of employees

 New employee orientation and training
 Performance management
 Promotions and transfers
 Job design
 Job evaluation
 Job enlargement
 Job classification
 Compensation (e.g., market-based pay)
 Training and development/career development of staff

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 4.8 COMMON APPLICATIONS OF JOB ANALYSIS

 Manpower planning
 Utilization of staff
 Plant safety
 Writing or amending manuals and publications
 Organizational design
 Establishment of lines of responsibility
 Establishment of organizational relationships
 Union relationships (e.g., contract negotiations, grievances, etc.)
 Compliance (e.g., meeting equal opportunity guideline)

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 4.9 JOB ANALYSIS METHODS

Observation
A trained observer observes a worker, recording what the worker
does, how the work is done, and how long it takes.
• Continuous observation: Involves observing a job over a given
period of time.
• Sampling observation: Involves observing several
incumbents/officers over short periods of time.
Interview
• Individual interview: A trained job analyst interviews workers
individually using a questionnaire and the results are aggregated.
• Group interview: Several incumbents/officers are interviewed at
the same time.
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 4.9 JOB ANALYSIS METHODS

Critical Incident/Event
Behaviorally-based critical incidents are used to describe work, and
a job analyst determines the degree of each behavior that is present
or absent in a job.
Diary
The job incumbent/Officer records all activities and tasks in a log as
they are performed.
Checklist
A worker or supervisor checks items on a standardized task
inventory that apply to the job.

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 4.9 JOB ANALYSIS METHODS

Questionnaire: 2 types
•Structured questionnaire: Uses a list of work activities, called a task
inventory, that job incumbents or supervisors may identify as related
to the job.
•Open-ended questionnaire: Asks the job incumbent to describe the
work in his own words.
Technical Conference
Several experts on the job collaborate to provide information about
the work performed. A job analyst facilitates the process and
prepares the job description based on the consensus of the technical
experts.
Note: In certain applications, two or more methods may be
combined. An example is the observation-interview.
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 4.10 CONCEPT OF LEADERSHIP
• Leadership is the art of influencing and inspiring subordinates to
perform their duties willingly, competently, and enthusiastically
for the achievement of group’s objectives.
• According to Terry, “Leadership is the ability of influencing
people to strive willingly for mutual objectives”
• According to Keith Davis, “Leadership is the process of
encouraging and helping others to work enthusiastically
/willingly/eagerly towards objectives”.
• Thus, leaders are people who are able to influence the
behaviour of others without recourse to threats or other
forms of force towards the individuals.
• Leaders are the people who are accepted by the other
individuals, as a superior person to them.

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 4.11 FEATURES OF LEADERSHIP

 Leadership is the process of influencing behavior of

individuals of an organization.
 Leadership uses non-coercive methods to direct and
coordinate the activities of individuals of an organization.
 Leadership directs individuals to attain the tasks
assigned to them by following the instructions of their
leaders.

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 4.11 FEATURES OF LEADERSHIP

 A leader possesses qualities to influence others.

 Leadership gives the individuals a vision for future.
 Leadership is a group activity. Leader influences his
followers and followers also exercise influence over his
leader.

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 4.12 DIFFERENCES BETWEEN LEADERSHIP AND MANAGEMENT

• Leadership is a virtue of leading people through encouraging

them while Management is a process of managing the activities of
the organisation.

• Leadership requires trust of followers on his leader whereas

Management needs control of manager over its subordinates.

• Leadership is a skill of influencing others while Management is

the quality of the ruling.

• Leadership demands foresightedness of leader, but Management

has a short range vision.
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4.12 DIFFERENCES BETWEEN LEADERSHIP AND MANAGEMENT

• In leadership, principles and guidelines are established,

whereas, in the case of management, policies and procedures
are implemented.
• Leadership is Proactive. Conversely, management is reactive
in nature.
• Leadership brings change. On the other hand, Management
brings stability.
• NB. A successful manager must possess both the managerial
and leadership qualities.
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 4.12 DIFFERENCES BETWEEN LEADERSHIP AND MANAGEMENT

 All leaders are not managers while all managers are leaders.

 Management is a process of planning, organizing, directing and

controlling the activities of others to attain the organizational
objectives, But leadership is a process of influencing the behavior of
people to attain their assigned tasks.

A successful manager must possess both the managerial and

leadership qualities.

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 4.13 TYPES OF LEADERSHIP

• Three major types of leadership

1. Autocratic Or Authoritarian Leadership

2. Democratic Or Participative Leadership
3. Laissez-faire Or Free Rein Leadership

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 4.13 TYPES OF LEADERSHIP
1. Autocratic or Authoritarian Leadership
• In this type of leadership, there is complete centralization of
authority in the leader, i.e., authority is centered in the leader
himself. He has all the powers to make decisions.
• He uses coercive measures and adopts, negative method of
motivation.
• He wants immediate obedience of his orders and instructions.
• Any negligence on the part of subordinates results in punishment.
• There is no participation from the subordinates in decision-
making.
• A leader thinks that he is the only competent person in the
organization.

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 4.13 TYPES OF LEADERSHIP

• According to Edwin B. Filippo, there are following

three types of leaders in Autocratic leadership:
• These are:

1.1. Hard Boiled or Strict Autocrat

1.2. Benevolent Autocrat
1.3. Manipulative Autocrat

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 4.13 TYPES OF LEADERSHIP

1. 1. Hard Boiled or Strict Autocrat:

– Leader, under such type uses negative influence and
expects that the employees should obey his orders
immediately.
– Non-compliance of his orders results in punishment.
– He makes all decisions and does not disclose anything to
anyone.
– He is quite rigid on performance.

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 4.13 TYPES OF LEADERSHIP
2. Benevolent Autocrat:
• Benevolent autocrat leader uses positive influences and develops
effective human relations.
• He is known as paternalistic leader.
• He praises his employees if they follow his orders and invites
them to get the solutions of the problems from him.
• He feels happy in controlling all the actions of his subordinates.

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 4.13 TYPES OF LEADERSHIP

3. Manipulative Autocrat:
• Leader, under such type is manipulative in nature.

• He creates a feeling in the minds of his subordinates and

workers that they are participating in decision-making
processes.
• But he makes all decisions by himself.

• Non-compliance of his orders also results in punishment.

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 4.13 TYPES OF LEADERSHIP

2. Democratic or Participative Leadership

• known as group cantered or consultative leadership.
• leaders consult their groups and consider their opinion in the decision-making
process.
• Leaders encourage discussion among the group members on the problem
under consideration and arrive at a decision depending on their consent.
• Participation or involvement of the employees in the decision-making process
is also rewarded.
• Exchange of ideas among subordinates and with the leader is given
encouragement.

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 4.13 TYPES OF LEADERSHIP

2. Democratic or Participative Leadership…………

• Leaders give more freedom to their group members, who
feel that, their opinions arc honoured and they are given
importance.
• It develops a sense of confidence among subordinates and
they derive job satisfaction.
• It improves quality of decision as it is taken after due
consideration of valued opinions of the talented group
members.
• The demerit of this type of leadership is that it takes more
time to arrive at a decision, as a lot of time is wasted while
taking the views from the employee.
– It is, therefore, very time consuming. 45
 4.13 TYPES OF LEADERSHIP
3. Laissez-faire or Free Rein Leadership
• In this type of leadership, there is virtual absence of direct
leadership. It is, known as "no leadership at all".
• There is complete delegation of authority to subordinates
so that they can make decisions by themselves.
• Absence of leadership may have both positive and
negative effects.
• Free rein leadership may be effective if members of the
group are highly committed to their work.
• The negative aspect shows that the leader is not
competent enough to lead his group effectively.
• Members may feel insecure and develop frustration for
lack of decision-making authority.
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END OF CHAPTER FOUR

THANK YOU!

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