What is HRM?

• The policies and Practices involved in carrying out the people or Human
Resource aspect of a management position, including Screening , training ,
Rewarding and Appraising.
• • Human resource may be defined as the art of procuring, developing and
maintaining competent workforce to achieve the goals of an organization in an
effective and efficient manner.
• Human resource management (HRM) is the process of employing
people, training them, compensating them, developing policies
relating to them, and developing strategies to retain them.
• Management is the process of planning and organizing the resources
and activities of a business to achieve specific goals in the most
effective and efficient manner possible.
 Features & Nature
Pervasive Force
• Action Oriented
• Individually oriented
• People oriented
• Development oriented
• Integrating mechanism
• Comprehensive Function
• Auxiliary Service ( Assist other departments)
• Inter-disciplinary function
• Continuous function
Scope of HRM
Personnel aspect • Welfare aspect • Industrial relations aspect
Objectives of HRM
1. To contribute to organizational effectiveness
2. To be efficient and cost effective
3. To be responsive to lager societal concerns
4. To meet personal needs of its employees
5. To increase to the fullest the employee’s job satisfaction and
self-actualization
6. To develop and maintain a quality of work life
7. To communicate HR policies to all employees
8. To help maintain ethical policies and behavior
9. To help the organization reach its goals
10. To employ the skills and abilities of the workforce efficiently
11. To provide the organization with well trained and well motivated
Importance of HRM
1. Enterprise Level
a) Retain best people in the organization
2. Individual Level
a) Promotes team work and spirit
b) Excellent growth opportunities
c) Work with diligence and commitment
3. Society Level
a) Employment opportunities
b) Scarce talents are put to best use
HRM Functions
HRM Functions
History of HRM
1. Industrial Revolution Fragmented and Dull jobs, workers did portion of the job, workers
were glorified machine tools, interests of workers not protected
2. Scientific Management Taylor advocated, work is broken down into smallest
mechanical elements and rearranging them into efficient combination. Individuals
should be matched physically and mentally to the requirements of the task. Piece rate
system
3. Trade Unionism Collective bargaining, unfair labor practices, grievance handling,
disciplinary procedures, pay and benefits
4. Human Relations Movement Hawthorne experiments by Elton Mayo demonstrated that
employee productivity was affected not only by the way the job was designed and
employee economically rewarded but also by certain social and psychological
factors. Includes supervisory training programs, strengthen bonds between labor and
management and counseling programs
5. Human Resources Approach Pet Milk theory that happy workers are productive
workers or happy cows give more milk was rejected. Workers are unique with their
own needs and motivation levels. This Approach assumes that job is the primary
source of satisfaction and motivation to the employees. Emphasis on individual
involvement in the decisions made in the organization.
Human Resources Approach
People do not dislike work if they have helped establish
objectives
• Theory Y- Most people can exercise a great deal more self
direction, self-control and creativity than are required in
their current jobs
• Manager’s job is to use untapped human potential
• Manager should create a healthy, safe and convenient
environment
• Manager should provide self-direction to the subordinates
• Expanding subordinates influence
• Work satisfaction
Evolution of HRM
PERSONNEL MANAGEMENT
PM is viewed as a tool .The behavior of which
could be manipulated for the benefit of the
organization &replacement when it is worn out .It
was a routine activity meant to hire new
employees and to maintain personal records. It
was never considered. As a strategic
management function of business is HRM
PERSONNEL MANAGEMENT
Economic and Societal Challenges
1. Economic Challenges
• Global Trade Challenge
• Challenge of Productivity Improvement
2. Technological Challenges
• Computerization
• Automation
3. Demographic Challenges
• Increasing number of women in the workforce
• Shift from Primary to Service jobs
• Educational attainment of workers
• Employment of older workers
• More part time workers
• Unemployment
4. Cultural Challenges
5. Professional Challenges
What is human resource development?
Leonard Nadler introduced the term HRD in 1969. A process
by which the employees of an organization are
helped/motivated to acquire and develop technical,
managerial and behavioural knowledge, skills and attitudes
and mould the values, beliefs and attitudes necessary to
perform present and future roles by realizing the highest
human potential with a view to contribute positively to the
organization, group, individual and social goals.
• Human resource development refers to an assortment of
training programs that help people adjust to their new roles
and learn more about the organization and its culture.
• Human Resource Management is said to be a process of
bringing organizations and people altogether in order to
meet the goals of both.
How does human resource development
work?
• Coaching
• Mentoring
• Feedback
• Succession planning

• Benefits of human resource development

• Enhancing the quality of work:
• Improving employee retention rates:
• Building productive workplace relationships:
Encouraging workplace collaboration:
• Making it easier to implement change
Purpose
• Equity: Recognizing human beings as strategic assets
• Employability: Ability, skills and competencies to seek
meaningful employment
• Adaptability/Competitiveness: To face challenges vis-à-vis
organizational changes
Key Responsibilities of the HR department:
• HRD deals with employee benefits, compensation, performance and
reward management, wellness, safety, organizational development,
employee relations, motivation, etc.
• HRD plays a significant and strategic role in managing people as well
as workplace culture.
• It can hugely contribute to a company’s growth and stability if
implemented effectively
Principles of Human Resource Management- Key Principles

• Key Principles of HRM: Human Resource Principles are a fundamental truth established by
research, investigation, and analysis. The following can also be considered as the key
principles of Human Resource Management:
• Principle of Individual Development: To offer an equal opportunity to every employee so
as to realize his/her potential and capability.
• Principle of the Scientific Selection: To place the right individual in the right job.
• Principle of the Free Flow of Communication: To open & encourage upward, downward,
formal, and informal communication.
• Principle of Participation: To associate with employees at each and every level of
decision-making.
• Principle of a Fair Remuneration: To pay fair and equitable wages & salaries to talented
employees.
• Principle of an Incentive: To review the performances of the employees and to reward
them accordingly.
• Principle of the Dignity of Labor: To treat each and every employee with respect and
dignity.
• Principle of Labor-Management co-operation: To promote industrial relations and labor
laws.
• Principle of Team Spirit: To ensure co-operation & teamwork amongst the employees.
• Principle of Contribution to National Prosperity:
Principles of HRD
• Principle of Development of Organizational
Capability
• Principle of Potential Maximization
• Principle of Autonomy Maximization
• Principle of Maximum Delegation
• Principle of Participative Decision Making
• Principle of Change Management
• Principle of Periodic Review
Objectives of HRD
• To improve the productivity and
performance of employees
• To enhance the skills, knowledge, and
abilities of employees to meet the changing
demands of the organization
• To provide opportunities for career
development and growth for employees
• To create a positive work environment that
fosters continuous learning and
development
• To align the goals of employees with the
Types of HRD
Training and Development: classroom
training, e-learning, on-the-job training, etc.
Career Development: providing
opportunities for employees to advance in
their careers through promotions, job
rotations, and other career development
programs.
Performance Management: It involves setting
goals and objectives for employees and
providing regular feedback to help them
improve their performance.
 STRATEGIC HRM
42
Human Resource Management
Introduction

 A STRATEGY:
 Indicates what an organization's key executives hope
to accomplish in the long run
 Is concerned with competition and aligning the
resources of the firm
 Good HR strategy results in a fit between
organizational strategy and HRM policies and
programs
 Recruitment, selection, outsourcing, telecommuting,
performance evaluation, compensation
43
Human Resource Management
 Strategic human
resource management
 An approach to managing human resources,
strategic human resource management supports
long-term business goals and outcomes with a
strategic overall framework. It focuses on longer-
term resourcing issues within the context of an
organisation's goals and the evolving nature of
work, and informs other HR strategies, such as
reward or performance, determining how they are
integrated into the overall business strategy.
44
Human Resource Management
  Strategic human resource management
 Focus on formulating and executing HR systems that
produce the employee competencies and behaviors the
company needs to achieve its strategic aims

 Taking a strategic HRM approach means:

 Making human resources management a top priority
 Integrating HRM with the company’s strategy, mission,
and goals

 HRM can make significant contributions if included

in the strategic planning process from the outset
 The strategic management process helps determine:
 What must be done to achieve priority objectives

 How they will be achieved 45

Human Resource Management
 Strategic HRM: A Key to Success
 The HRM activities are:
 Employee selection/placement
 Rewards
 Appraisal
 Development
 Three levels of strategy apply to HRM
activities:
 Strategic / Corporate (long term)
 Managerial/ Business (medium term)
 Operational /Functional (short term)
46
Human Resource Management
Strategic HRM: A Key to Success
 Strategic HRM planning leads to:
 Growth
 Profits
 Survival

 Planning also:
 Expands awareness of possibilities
 Identifies strengths and weaknesses
 Reveals opportunities
 Points to the need to evaluate the impact of internal
and external forces
48
Human Resource Management
Key features / Characteristics
of SHRM
1. There is an explicit linkage between HR policy
and practices and overall organizational
strategic aims and the organizational
environment
2. There is some organizing schema linking
individual HR interventions so that they are
mutually supportive
3. Much of the responsibility for the management
of human resources is devolved down the line

49
Human Resource Management
 Scope of SHRM

50
Human Resource Management
51 Traditional HR vs. Strategic HR

Point of distinction Traditional HR Strategic HR

Focus Employee Relations Partnerships with internal and
external customers
Role of HR Transactional change follower Transformational change leader and
and respondent initiator
Initiatives Slow, reactive, fragmented Fast, proactive and integrated
Time horizon Short-term Short, medium and long (as
required)
Control Bureaucratic-roles, policies, Organic-flexible, whatever is
procedures necessary to succeed
Job design Tight division of labor; Broad, flexible, cross-training
independence, specialization teams
Capital, products
Key investments Cost centre People, knowledge
Accountability Staff specialists Investment centre
Responsibility for HR Line managers

Human Resource Management

 52
Human Resource Management
Role of HR in Strategy formulation
/Benefits of SHRM
Identifying and analyzing external opportunities and
threats that may be crucial to the company's success.
 Provides a clear business strategy and vision for the future.
 To supply competitive intelligence that may be useful in the
strategic planning process.
 To recruit, retain and motivate people.
 To develop and retain of highly competent people.
 To ensure that people development issues are addressed
systematically.
 To supply information regarding the company's internal
strengths and weaknesses.
 To meet the expectations of the customers effectively.
 To ensure high productivity.
 To ensure business surplus thorough competency 53

Human Resource Management

 Barriers of SHRM
 Inducing the vision and mission of the change effort.
 High resistance due to lack of cooperation from the
bottom line.
 Interdepartmental conflict.
 The commitment of the entire senior management
team.
 Plans that integrate internal resource with external
requirements.
 Limited time, money and the resources.
 The statusquo approach of employees.
 Fear of incompetency of senior level managers to
take up strategic steps.
 Diverse work-force with competitive skill sets.
54
 Fear towards victimisation in the wake of failures.
Human Resource Management
 Barriers of SHRM
( Cont.)
 Improper strategic assignments and leadership
conflict over authority.
 Vulnerability to legislative changes.
 Resistance that comes through the legitimate
labour institutions.
 Presence of an active labour union.
 Economic and market pressures influenced the
adoption of strategic HRM.

55
Human Resource Management
 56
Human Resource Management
Role HR in Merger And
Acquisition
 MERGERS AND ACQUISITION
Defined in General
• When we use the term "merger", we are
referring to the merging of two companies where
one new company will continue to exist.

• The term "acquisition" refers to the acquisition

of assets by one company from another company.
 OBJECTIVE

• Objective of merger is to achieve economy of

scale and to carry on business more economically
and efficiently.

• Objective of an acquisition is self-evidently

growth and expansion of the acquirer's assets,
sales and market share
 MERGERS & ACQUISITION -
TYPES

1. Acquisition & 1. Mergers of Equals

Integration: :Two companies to
Staffing Integrated share in the staffing
implications.
2. Acquisition &
Separation : 2. Mergers of unequal :
Staffing kept where the staffing
separate implications being
shared unequally
• The belief that they are too soft therefore, hard to manage
• Lack of awareness or consensus that people issues are critical
• No spokesperson to articulate these issues
• No model or framework that can systematically understand
• Attentive focus in M & A activity is on finance, accounting,
and manufacturing
• People issues occur at several phases or stages
• Retention of key talent ,Communications;

THE HUMAN SIDE OF M&A

• Not being involved early enough
• Not understanding employees’ need and concerns
• Not involving and empowering the incoming leadership
team
• Not working with the receiving business unit
• Underestimating the time, work that acquisitions &
integration require

Mistakes of M& A
• Mergers for market dominance; economies of scale.
• Mergers for risk spreading, cost cutting Growth for
world class leadership and global reach.
• Survival; sales maximization.
• Bigger asset base to leverage borrowing.
• Financial gain and personal power.
• Gaining a core competence to do more combinations.
• Acquiring talent, knowledge, and technology

Reasons
Strategic management of HR during
Organizational Restructing

• According to studies “One of the

major reasons M & A fail is improper
handling of HR issues”
• Uncertainty of job after acquisition
• Transfer fear
• Loss of identity
• New leadership styles
• New rules and regulations
• Change of hierarchy
• Work culture
• Prestige power and status
• New appraisal methods
• Restructuring of key positions

Areas of Employee
concern Post Merger
• New board composition
• Human resource audit
• Effective communication
• Retention strategy
• Integration of HR functions
• Cultural integrations

For Effective HR Management in

M & A following Issues are to
addressed
 Pre -Combination

Pre -Combination
Combination- Integration of Companies

• Combination- Integration of Companies

Combination- Integration
of Companies
Solidification & Assessment of New Entries

Solidification &
Assessment of New
Entries
• In the 21st century, impact of technology is exponentially..
This impact is seen in nearly all areas of business,
including human resources, Whether it is recruitment,
communication with different stakeholders, performance
measurement, or data security, technology is
transforming each and every area of HR function as
we knew it. As companies continue to adopt cloud
computing and automation, time is being used more
effectively than before. The increase in the use of
automation tools and cloud solutions is freeing up human
resources from doing mundane tasks and shifting their
role to strategy building and execution

Technology and HR
 Changing role of HR with Technology
1. AI Is Making Recruitment Smarter
2. Compliance Is More Efficient and Sophisticated
3. Analytics Drive Better Performance Management
4. Better Analytics Boosts Diversity and Inclusion
5. A More Strategic Role for HR
6. HR has become more strategic due to HR Technology
7. Better Communication and Collaboration is an impact of
technology in HR
• Recruitment : Vedio Conferencing , Online test,
Application Management Software Application Tracking
Software
• Emergence of Human Resource Information System .
• Talent Management Acquisition Solution
• Compliance Software are developed
• Sper
 Total Quality
Management TQM
 Total Quality Management TQM, also known as total
productive maintenance, describes a management approach
to long-term success through customer satisfaction. In a
TQM effort, all members of an organization participate in
improving processes, products, services, and the culture in
which they work.

 TQM Element emphasize:

 Articulation of strategic vision

 Objective and accurate measurements 75
Human Resource Management
TQM principles emphasize:

76
Human Resource Management
 PDCA CYCLE
• PDCA (plan-do-check-act, sometimes seen as plan-do-check-
adjust) is a repetitive four-stage model for continuous
improvement (CI) in business process management.
• The PDCA model is also known as the Deming
circle/cycle/wheel, Shewhart cycle, control circle/cycle, or
plan–do–study–act (PDSA).
• The model is implemented to improve the quality and
effectiveness of processes within product lifecycle
management, project management, human resource
management (HRM), supply chain management (SCM) and
many other areas of business.
• PDCA was popularized by Dr. W. Edwards Deming
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Human Resource Management
 • Plan: Define the problem to be
addressed, collect relevant data, and
ascertain the problem's root cause.
• Do: Develop and implement a
solution; decide upon a
measurement to gauge its
effectiveness.
• Check: Confirm the results through
before-and-after data comparison.
• Act: Document the results, inform
others about process changes, and
make recommendations for the
problem to be addressed in the next
PDCA cycle.

78
Human Resource Management
 HRM and TQM
 Total quality management (TQM) has far-reaching
implications for the management of human resources. It
emphasizes self-control, autonomy, and creativity among
employees and calls for greater active cooperation rather
than just compliance.
 Indeed, it is becoming a maxim of good management that
human factors are the most important dimension in quality
and productivity improvement.
 TQM is the concept of intrinsic motivation-involvement in
decision making by the employees. Employee involvement
is a process for empowering members of an organization to
make decisions and to solve problems appropriate to their
levels in the organization. 79

Human Resource Management

 Key Areas:
1. The type of training depends on the need of the particular
company.
2. Every effort should be made to avoid errors in
performance evaluations. An unfair evaluation could cost
an organization a valuable employee.
3. TQM Philosophy emphasizes flexibility, lateral-
communication, group effectiveness, and responsibility
for an entire process that has the ultimate outcome of
customer satisfaction.
4. A team based compensation approach is Gain Sharing or
Performance Bonus to all employees.
5. Involvement of employees on increasing commitment and
engagement.
 81
Human Resource Management
 HRM and Productivity
1. Human energy TRANSFORMATION Organizational

PRODUCTIVITY
HRM
PHASES
and competencies dimensions
2. Organizational
1. Acquisition od 1.Goal
planning resources Achievement
3. HR Manpower 2. Development 2. Enhance quality
planning of resources work life
4. HR Recruitment 3. Maintenance 3. Enhance
and selection plans effectiveness of
4. Utilization of organizational
5. Retention resources
planning working
6. Performance & 4. Readiness for
potential Appraisal change is witnessed
7. Compensation Personal
Management Dimensions
8. Maintenance of 1. Commitment
Industrial relation 2. Skill up
9. Job Analysis & gradation 82
Evaluation 3. Satisfaction
Human Resource Management
4. Congruency in
 Suggested Readings:
1. Dessler, Gary, Human Resource Management, Pearson Education Asia,
New Delhi.
2. Rao, V.S.P., Human Resource Management-Text & Cases, Excel Books,
New Delhi.
3. Ramaswamy, E; Managing Human Resources, Oxford University Press,
New Delhi
4. Irancevich, John, Human Resource Management, Irwin/McGraw Hill.
5. Casio, Wayne F; Managing Human Resources, McGraw Hill Inc.
6. Subba Rao, P; Essentials of Human Resource Management & Industrial
Relations, Text, Cases & Games, Mimbai, Himalaya Publishing House.
7. Mondy R.W; Noe, R.M., Premeaux, S.r. and Mondy J.B; Human Resource
Management, Prentice Hall Inc.
8. Saiyodain, Human Resource Management, TMH, N.Delhi.
9. Aswthappa, Human Resource Management, TMH, N.Delhi.