Human Resource Management

By Shweta Bambuwala
• Anagram Finances

• Started as a small organization with only 50 workers 10

yrs ago
• Mr Patil a 12 passed man employed people who he
knew and who had reasonable capabilities to perform.
• No formal recruitment process followed
• His Son an MBA wants to expand.
• An HR professional hired advises to discontinue old 50
workers.
• The 50 workers rise in protest.
• Decision was reconsidered and son decides to give some
less important jobs which does not involve much skill and
decision making.
• Workers refused to accept.
• DECIDE
 Organization

Physical Human
Resources Resources
 Why and how human resources (HR) are
superior to physical resources
• HR alone appreciates over a period.
• HR achieves in higher performance output than
its actual input.
• HR brings value to all other assets.
• Operational flexibility is possible with HR.
Human Resource Management: meaning
Human resource management is concerned
with policies and practices that ensure the
best use of the human resources for fulfilling
the organizational and individual goals.
 Objectives of HRM
• To Take care of the work life of the employees
• To act as liaison between the top
management and the employees
• To offer training
• To devise employee benefit schemes for
developing skills, improving employee
motivation and group morale
• To ensure and enhance the quality of work life
• To help keep up ethical values and behavior
amongst employees
The Evolution of Human Resource
Management
 Scope of human resource management
• Personnel or labour aspect deals with HR
planning, recruitment, selection, placement,
training and development, remuneration, etc.
• Welfare aspect deals with working conditions
and amenities such as canteen, rest-rooms, etc.
• Industrial relations aspect deals with union–
management relations like collective bargaining,
grievance and disciplinary actions, etc.
Functions of human resource
management
Operative functions of HRM
 HRM and PM
• Similarities
Business Strategy
Matching People
Prominence of line Authority
Identical Core Elements
Emphasis on Communication and participation
 Difference between HRM and PM
• HRM is proactive in nature while PM is
reactive.
• HRM is a resource-centred activity whereas
PM is a employee-centred activity.
• HRM emphasizes on flexible, open-ended
contracts but PM emphasizes the strict
observance of defined rules, procedures and
contracts.
• HRM views better performance as a cause of job
satisfaction whereas PM considers job
satisfaction as a source of better performance.
• HRM seeks to develop the competencies of the
employees on a sustained basis while PM is a
regular, status quo–based administrative
function.
 Qualities of an HR manager

• Knowledge
• Intelligence
• Communication skills
• Objectivity and fairness
• Leadership and motivational qualities
• Emotional maturity and
• Empathy
Human Resource Managers’ Duties
Line Function
Coordinative Function
Line Authority
Functional Authority
Implied Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

1–15
 HR Manager’s Proficiencies
1. HR proficiencies

2. Business proficiencies

3. Leadership Proficiencies

4. Learning proficiencies
 Line Versus Staff Authority of HRM
• Line manager: Empowered to direct the work of
the people assigned to them
• Staff Advisor: play important role in advising
and assisting the line managers.
General
Manager

Pro. Manager HR manager Sales

Manager
 Line manager’s Responsibility
• Placing Right person on the right job
• Starting new employees on the organization
• Training the employees for the jobs that are new
• Improving the job performance of each person
• Gaining creative cooperation and developing smooth working
relationship
• Interpreting the policies and procedures of the company
• Controlling the labour cost
• Developing the abilities of each person
• Creating and maintaining the department morale
• Protecting the employees health and physical condition
The Changing Environment of
Human Resource Management
Globalization Trends

Technological Trends
Changes and Trends in
Human Resource
Management
Trends in the Nature of Work

Workforce Demographic Trends

Economic challenges and trends
 The Changing Role of
Human Resource Management
Strategic Human
Resource Management

Creating High-
Managing with the HR New Responsibilities
Performance Work
Scorecard Process for HR Managers Systems

Measuring the HRM

Team’s Performance

1–20
 HRM in India

• Strategic Human Resource Management

• High performance Work systems
• Evidence based Human Resource
Management
• Managing Ethics
• HR qualification
The Strategic Management process
• Strategy:- Long term plan to balance internal strengths and
weakness with its external opportunities and threats to
maintain a competitive advantage.

• Strategic Management:- The process of identifying

and executing the organization’s mission by matching it’s
capabilities with the demands of its environment.
 Business Vision and Mission
• Vision
– A general statement of an organization’s intended
direction that evokes emotional feelings in
organization members.

• Mission
– Spells out who the company is, what it does, and
where it’s headed.
• Our Mission
• Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh
our actions and decisions.
• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference.

• Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
• Productivity: Be a highly effective, lean and fast-moving organization.
The Strategic Management Process
 A SWOT Chart

Strengths Weaknesses

Example: Market leadership Example: Large inventories

Opportunities Threats

Example: New overseas markets Example: Market saturation

3–26
 Types of Strategies
• Corporate strategy
1. Diversification
2. Vertical integration
3. Consolidation
4. Geographic Expansion

• Competitive Strategy
1. Cost Leadership
2. Differentiation
3. Focusers

• Functional Strategy
Achieving Strategic fit
Relationships Among Strategies in Multiple-
Business Firms
 Strategic Human Resource
Management
• 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.
• Involves formulating and executing HR systems—HR
policies and activities—that produce the employee
competencies and behaviors that the company needs
to achieve its strategic aims.

3–29
Creating the Strategic Human Resource
Management System

Components of a Strategic
HRM System

Human Resource
Human Resource Employee Behaviors
Policies and
Professionals and Competencies
Practices

3–30
Three Important Strategic HR Tools

Source: Adapted from Brian Becker et al., The HR Scorecard: Linking People, Strategy, and P
The HR Scorecard
Shows the quantitative standards, or “metrics” the
firm uses to measure HR activities.
Measures the employee behaviors resulting from
these activities.
Measures the strategically relevant organizational
outcomes of those employee behaviors.
 Creating an HR Scorecard
The 10-Step HR Scorecard Process

Identify required HR policies

1 Define the business strategy 6
and activities
Choose HR Scorecard
2 Outline value chain activities 7
measures
Summarize Scorecard
3 Outline a strategy map 8
measures on digital dashboard
Identify strategically required and monitor, predict, and
4 evaluate
outcomes
Identify required workforce
5
competencies and behaviors
 Five Sample HR Metrics

HR Metric* How to Calculate It

Absence rate # of days absent in month

× 100
Average # of employees during month × # of workdays

Cost per hire Advertising + agency fees + employee referrals + travel cost of
applicants and staff + relocation costs + recruiter pay and benefits

Number of hires

HR expense HR expense
factor
Total operating expense

Time to fill Total days elapsed to fill job requisitions

Number hired

Turnover rate Number of separations during month

3–34 × 100
Average number of employees during month