HRM501

Mohan Thapa
Module 1:
Introduction to HRM

Management Process
HRM Meaning
Why HRM is important to all Managers?
Line and Staff Aspects of HRM
HRM Policies and its importance
The changing environment of HR Management
The changing role of HR Management
The New HR Manager
Group Formation and Exercises
HRM Meaning

Management Process is the five basic functions of

planning, organizing, staffing, leading and controlling.

Planning-Establishing goals, standards, developing rules

Organizing-Giving each subordinate a specific tasks, establishing
departments
Staffing-Determining what type of people you should hire.
Leading-Getting others to get the job done
Controlling-Setting the standards such as Sales Target, Service
Quality Standard, Checking actual performance with standards and
taking corrective action if any deviation occurs
HRM Meaning

► The process of acquiring, training,

appraising, and compensating employees,
and of attending to their labor relations,
health an safety, and fairness concerns.

► The policies and practices involved in

carrying out the ‘people’ or human resource
aspects of a management position, including
recruiting, screening, training, rewarding,
and appraising.
HRM Meaning
Concepts and Techniques to perform personal aspects of management job.

Conducting Job Analysis

Planning Labor Needs and recruiting job candidates
Selecting job candidates
Orientation of new employees
Managing wages and salaries
Providing incentives and benefits
Appraising performance
Communicating
Training and developing managers
Building employee commitment

Managers Knowhow
Employment Law
Equal Opportunity and affirmative action
Employee Health and Safety
Handling grievances and labor relations
Why is HR Management Important to
All Managers?
Hiring the right person for the right job
Retention of the Performing Employees/Minimizing the Employee Turnover
Motivating, appraising and developing the employees to give their best and
perform better
Ensuring the fair and equitable compensation to the employees based on their
job roles
Ensuring of the Fair Labor Practices in an organization
Ensuring the proper trainings to the departmental employees to develop their
competencies
Protecting company from not to expose in court because of discriminatory
actions
Handling the employee grievances in effective manner
Video: Meet the 21st century HR Leader
 Line and Staff Aspects of HRM

Authority: It is the right to make decisions, to direct the work of others and to give orders.

Diff in Line Authority & Staff Authority:

Line Authority
►The Authority exerted by an HR Manager by directing the activities of the people in his or her own
department and in service areas.
►Itgives manager right (or authority) to gives order to other managers or employees. It creates
Superior-Subordinate Relationship

Staff Authority
►It gives the manager the right (authority) to advise other managers or employees
►It creates an advisory relationship
Line and Staff Aspects of HRM
Line Manager
A Manager who is authorized to direct the work of subordinates and is responsible for
accomplishing the organization’s tasks.
They are the directly incharge of organization company goals
Staff Manager
A staff who assists and advises line Managers.
They are authorized to assist and advise line managers in accomplishing basic goals
HR Managers are staff managers
Responsible for assisting and advising line managers in areas like recruiting, hiring, and
compensations
Line and Staff Aspects of HRM
Line Manager’s HR Responsibilities (In small Organization)

1.Direct handling of the people

2.Orientation

3.Training

4.Developing abilities of each person

5.Improving Job Performance
6.Developing work relationship
7.Interpreting the company’s policies and procedures
8.Controlling Labor costs
9.Protecting employee’s health and physical condition
Line and Staff Aspects of HRM
HR Manager’s Responsibilities (In Bigger Organization)

The HR provides specialized assistance(3 Functions)

1.ALine Function-Line Authority within HR Department, implied Authority outside HR
department

2.ACoordinative Function-HR ensures that Line Managers are implementing HR Objectives,

Policies, and procedures-Functional Control

3.AStaff (Assist and Advice) Function-Main part of HR’s job. i.e. helping design the strategy
and execution in terms of personnel to the CEO. Assists in hiring, training, evaluating,
rewarding, counseling, promoting and firing employees etc.-Employee Advocacy Roles- Helping
to define how management should be treating employees.
Cooperative Line and Staff HR Management: Ex.
Relations Line Manager
Recruiting and Hiring • Describes qualification of the employees
needed to fill specific positions
• Interviews and selects the ones he/she
wants
Training • Describes what he/she expects the
employee to be able to do
• Administers the training
Performance Appraisal • Measures the Performance of his/her
departmental employees, immediate
feedback
Job Descriptions • Gives the outline of the Tasks needs to be
done by his/her departmental employees
Disciplinary • Informs the misconduct details of his team
Procedures to HR
• Takes the disciplinary action as suggested by
HR
Staff Manager (HR)
• Develop sources of qualified
candidates,
• Conduct initial screening
interviews
• Administer the appropriate test
• Refer the best candidates to the
line managers
• Devises a training program as
required by Line Managers
• Compile the performance report
and discuss with Line Managers
jointly and take it forward
• Prepares the structured JD with
all the details
• Suggest the suitable disciplinary
action based on the gravity of
misconduct
What is HRM Policies?
HRM Policies are a written source of guidance on how a wide range of issues should
be handled within an employing organization, incorporating a description of
principles, rights and responsibilities for managers and employees.

►HRM Policies:
Recruitment and Selection
Performance Management
Employee Health and Safety
Compensation and Benefits
Disciplinary Action
Training & Development Policy
Equal Employment Opportunity
Employee Exit Management
Importance of HRM Policies

It serves as a guide to the managers to make the quick

decisions
It helps managers as well as subordinates to solve the
recurring problems without any confusion
It also helps the managers to transfer some level of decision
making to the subordinates
It facilitates in achieving better coordination among the
organizational employees and to make the accurate decision
 Role of HR
Administrative Operational Strategic
Focus Administrative processing & Operational support Organization wide-Global
Record keeping representing the employees

Duration Short Term (Less than a year) Intermediate term (1-2 years) Long term (2-5 years)

Typical Activities • Administering employees • Managing compensation • Assessing workforce

benefits programs trends and issues
• Conducting new employees • Recruitment and selecting • Assisting in
orientation – current openings organization
• Interpreting HR Policies • Conducting safety training restructuring and
and procedures downsizing
• Preparing employment • Advising on mergers
report and acquisitions
• Planning compensation
strategies
HR Relationship with other fields
► The HR department designs and develops people management processes, HR
Policies, HR System and Processes.
► Line and staff managers implement and use them.
Health and safety
Employee welfare
Social security measures
Grievance Handling
Industrial relations
THE CHANGING ENVIRONMENT OF HR
MANAGEMENT
HR’s Changing Role – Human Resource responsibilities have
become broader and more strategic over time as
organizations' human resource requirements have become
more complex.

The role of HR has evolved from primarily being responsible

for hiring, firing, payroll, and benefits administration to a
more strategic role in employee selection, training and
promotion, as well as playing an advisory role to the
organization in areas of labor relations and legal compliance

A Changing Environment – Globalization of the world

economy and other trends have triggered changes in how
companies organize, manage and use their HR departments.
THE CHANGING ENVIRONMENT OF HR
MANAGEMENT
► Globalization – refers to the tendency of firms to extend their sales, ownership, and/or
manufacturing to new markets abroad. For businesses everywhere, the rate of globalization
in the past decade has been enormous, and has several strategic implications for firms. More
globalization means more competition, and more competition means more pressure to lower
costs, make employees more productive, and do things better and less expensively.

► Technological Advances – have been forcing, and enabling, firms to become more
competitive. HR faces the challenge of quickly applying technology to the task of improving
its own operations.

► Exporting Jobs – has been prompted by competitive pressures and the search for greater
efficiencies.

► The Nature of Work – is changing due to new technological demands. In addition, the shift
from producing products to producing and delivering services is a contributor to the change
from “brawn to brains”.
THE CHANGING ROLE OF HR MANAGEMENT
► HR’s central task is always to provide a set of services that make sense in terms of the company
strategy. Trends of globalization, increased competition, a changing workforce and more reliance on
technology have two main implications for how companies now organize, manage, and rely on their
HR operations.
First, HR managers must be more involved in partnering with their top managers in designing and implementing their
companies’ strategies.
Second, the focus on operational improvements means that all managers must be more adept at expressing their
departmental plans and accomplishments in measurable terms.

A) An Emphasis on Performance –Measurable, benchmark-based evidence for its current efficiency and
effectiveness, and for the expected efficiency and effectiveness of new or proposed HR programs.
B) Metrics –A set of quantitative performance measures (metrics) to assess their operations.
► The HR Scorecard – Measures the HR function’s effectiveness and efficiency in producing employee
behaviors needed to achieve the company’s strategic goals.
► The High Performance Work System (HPWS) – The general aim of the HPWS is to maximize the
competencies and abilities of employees throughout the organization.
HR Metrics Sample
HR Score Card

The HR Scorecard has five key elements:

► Workforce Success- It asks: Has the workforce accomplished the key strategic
objectives for the business?
► Right HR Costs- It asks: Is our total investment in the workforce (not just the
HR function) appropriate (not just minimized)?
► Right Types of HR Alignment- It asks: Are our HR practices aligned with the
business strategy and differentiated across positions, where appropriate?
► Right HR Practices- It asks: Have we designed and implemented world class
HR management policies and practices throughout the business?
► Right HR Professionals- It asks: Do our HR professionals have the skills they
need to design and implement a world-class HR management System?
The New HR Manager

A) Four Proficiencies:
HR Proficiencies-Employee Selection, Training and Compensation
Business Proficiencies-Assisting top management in formulating strategies
Leadership Proficiencies-Ability to work with and lead management groups
Learning Proficiencies-
Ability to stay abreast of and apply all new technology
and practices affecting the profession
B) The Need to “Know Your Employment Law”
Labor Act 2074, Social Security Fund 2075 etc.

C) Ethics and HR
Refers to the standards someone uses to decide what his or her conduct should be

D) HR Certification
SHRM Certification, CIPD courses by ICS Learn, MBA HR by XLRI

E) HR and Technology
Improving Productivity Through HRIS – The HR Portal
Group Formation and Exercises