Human Resource Management (BEBA55A) UNIT-1

REF NO: BEBA55A-U1-03

HUMAN RESOURCE MANAGEMENT (BEBA55A)

UNIT – I continued...

HUMAN RESOURCE MANAGER DUTIES

In providing this specialized assistance, the human resource manager carries out three distinct
functions:

1. A line function. The human resource manager directs the activities of the people in his or
her own department, and perhaps in related areas (like the plant cafeteria).

2. A coordinative function. The human resource manager also coordinates personnel activities,
a duty often referred to as functional authority (or functional control). Here he or she ensures
that line managers are implementing the firms’ human resource policies and practices (for
example, adhering to its sexual harassment policies).

3. Staff (assist and advice) functions. Assisting and advising line managers is the heart of the
human resource manager s job. He or she advises the CEO so the CEO can better understand
the personnel aspects of the company s strategic options. HR assists in hiring, training,
evaluating, rewarding, counselling, promoting, and firing employees. It administers the various
benefit programs (health and accident insurance, retirement, vacation, and so on). It helps line
managers comply with equal employment and occupational safety laws, and plays an important
role in handling grievances and labour relations. It carries out an innovator role, by providing
up-to-date information on current trends and new methods for better utilizing the company s
employees (or human resources). It plays an employee advocacy role, by representing the
interests of employees within the framework of its primary obligation to senior management.
Although human resource managers generally can’t wield line authority (outside their
departments), they are likely to exert implied authority. This is because line Managers know
the human resource manager has top management s ear in areas like testing and affirmative
action.

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 Human Resource Management (BEBA55A) UNIT-1

ENVIRONMENT OF HRM
Internal environment:

Trade union:

They are formed protect workless interest. There is trade union influenced compensation.
Social security, incentives, industrial relation, grievances and separation.

Organizational culture:

Culture represents the personality or identity of the organization. It comprises of its values.
Believe and ethics. HR practices should be in tune with the culture of the organization.

Organizational conflict:

Conflicts happen because of difference between individual and organizational goals. HR has
to ensure the right fit between individual and organizational goals.

Vision and mission:

The vision and mission of the organization has an important influences HR policies system and
practices. Organizations which focus an innovation would recruit people who are creative.

2. External environment:

Technology environment:

Technology development is happening in a capital manner. They influence the way HR

function are performed and HR policies are implemented. Development in information
technology, internet and social media have a great impact on HR.

Economic environment:

It is the economic environment is good companies would create demand for human resources.
The HR department has to take step for requirement, selection and training of employees.

3. Legal environment:

Every organization has to be aware and comply with labour legislation such as the factory Act,
industrial dispute Act, minimum wages Act, payment of bonus Act, etc.,

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 Human Resource Management (BEBA55A) UNIT-1

4. Labour markets:

Labour markets comprise of the demand for labour and supply of labour. If the demand for
labour exceeds supply. Wages rates would increase. It the demand for labour wages is loss than
supply wages rate would decrease.

5. Human resource condition:

The education, skill level and availability of human resources influence HR policy. Today work
force more literate, skilled and knowledgeable they expect rewards based on performance, roll
in decision making and fair- treatment.

STRATEGIC HUMAN RESOURCE MANAGEMENT

If a firm’s competitiveness depends on its employees, then the business function responsible
for acquiring, training, appraising, and compensating those employees has to play a bigger
role in the firm’s success. The notion of employees as competitive advantage has therefore
led to a new field of study known as strategic human resource management, “the linking
of HRM with strategic goals and objectives in order to improve business performance
and develop organizational cultures that foster innovation and flexibility.”

Strategic HRM is concerned with the following:

1. Analyse the opportunities and threats existing in the external environment.

2. Formulate strategies that will match the organisation’s (internal) strengths and
weaknesses with environmental (external) threats and opportunities. In other words,
make a SWOT analysis of organisation.
3. Implement the strategies so formulated.
4. Evaluate and control activities to ensure that organisation’s objectives are duly
achieved.

Basically any strategic process can be broken down into two phases:
1. Strategy Formulation
2. Strategy Implementation
Let us examine the role of HR in these two phases separately.

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 Human Resource Management (BEBA55A) UNIT-1

Role in Strategy Formulation:

The environmental scanning is followed by strategy formulation.

 Environmental scanning helps an organisation identify its opportunities and threats

prevalent in the external environment.
 Here, HRM proves of great help in scanning the existing (external) environment, and
thus, identifies the specific opportunities and threats of it for the organisation.
 Besides, HRM is also of great help to make the organisation competitive and make
the best use of intelligence available. This may include the incentive plans being used
by the competitors, customer- I complaints, labour laws, etc.
 HR also participates in strategy formulation process by supplying information
regarding the company’s internal strengths and weaknesses.
 IBM’s decision to buy Lotus was probably prompted in part by IBM’s conclusion that
its own resources were inadequate to enable the firm to reposition itself as an industry
leader in networking systems, or at least to do so quickly enough.

Role in strategy implementation:

 HRM plays a crucial role in the successful execution or implementation of company’s

strategic business plan.
 Example: Maruti Udyog and Hindustan Motors are manufacturing cars, essentially
using identical technology. The secret behind the meteoric rise of Maruti is its human
resource/workforce.
 HRM supports strategy implementation in some other ways as well. For example, HR
is today heavily involved in the execution of strategy in the form of downsizing and
restructuring strategies, through outplacing employees instituting performance linked
pay plans, reducing health-care costs and retraining employees.
 Instituting HR practices that build employee commitment can help improve an
organisation’s responsiveness.

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