Org.

Behaviour & HRM

Unit 4
Intro. to HRM

HRM – Concepts, definition,

importance functions, objectives, HR
cycle Role of Mgr, Hard & Soft HR
 Human Resources Management

• Human resource management is the theory, techniques, methods, and tools for
studying the adjustment of people and their relations in the organization, connection
between work and its relations, matching the people and work in order to fully develop
human resource management, tap people’s potentials, motivating people, promoting the
work efficiencies and meeting the organizational objectives.

• It is the sum total or aggregate of inherent abilities, acquired knowledge and skills
represented by the talents and aptitudes of the persons employed in the organization.
Human resources are multi dimensional in nature.

 From the national point of view, human resources maybe defined as the knowledge,
skills, creative abilities, talents and aptitudes obtained in the population; whereas

 From the view point of the individual enterprise, they represent the total of the inherent
abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of it’s
employees
Definition of HRM

• Edwin Flippo defines- Human Resource Management as “planning, organizing,

directing, controlling of procurement, development, compensation, integration ,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved”.

• According to Decenzo and Robbins, “Human Resource Management is concerned

with the people dimension” in management.

“Since every organization is made up of people, acquiring their services, developing

their skills, motivating them to higher levels of performance and ensuring that they
continue to maintain their commitment to the organization is essential to achieve
organsational objectives.

This is true, regardless of the type of organization – government, business,

education, health or social action”.
Nature / Responsibilities of HRM

Human Resource Management is a process of bringing people and organizations

together so that the goals of each are met The various features of HRM include:

• It is pervasive (omni-present) in nature as it is present in all enterprises

• It’s focus is on results rather than on rules

• It tries to help employees develop their potential fully

• It encourages employees to give their best to the organization

• It is all about people at work both as individuals and groups (Team Work)

• It tries to put people on assigned jobs in order to produce good results

• It helps an organization meet it’s goals in the future by providing for competent
and well-motivated employees.
• It tries to build and maintain cordial relations between people working at various
levels in the organization.

• It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from

psychology, economics, sociology, etc…

Scope (Growing Importance) of HRM

The scope of HRM is very wide:

1. Personnel aspect

• This is concerned with man power-planning, recruitment, selection, placement,

transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity, etc…
2. Welfare aspect

• It deals with working conditions and amenities such as canteens, crèches, rest
and lunchrooms, housing, transport, medical assistance, education, health and
safety, recreation facilities, etc…

3. Industrial relations aspect

• This covers union-management relations, joint consultation, collective bargaining,

grievance and disciplinary procedures, settlement of disputes, etc…

Objectives of HRM

1. Societal

2. Organizational

3. Functional

4. Personal
1. Societal

• HRM may contribute ethically and socially regarding the needs and challenges
emerging in the society If an organization fails to use its resources for society
benefits in ethical ways it may lead to restriction by society

• For example, society may limit the HR decisions through laws in hiring, it may
limit laws that address discrimination, laws regarding safety or other areas of
concern.

2. Organizational

• The main objective of HRM is to achieve organizational goals by bringing

organizations effectiveness HRM is not an end but it is a means to assist the
organization in order to attain it’s objectives.
3. Functional

• Functional objective of HRM deals with contributions of each department regarding their
need and effectiveness in order to attain organization goal.

• All the resource or skill set get wasted if HRM is notable to fulfill up with the
organizational demand.

4. Personal

• HRM also deals with personal objectives of the individual so that personal and
organizational objectives can be met in order to achieve maximum production and attain
competitive advantage.

• These personal objectives are important in order to maintain, retain and to motivate
employees If this not done employees dissatisfaction and poor performance will result in
attrition or low productivity.
Functions / Responsibilities / Role of Human Resources Management
Role of HRM (HR Manager) in Organizations

1. Staffing

• Staffing involves the entire hiring process from posting a job to negotiating a
salary package. Within the staffing function, there are four main steps:

• Development of a staffing plan This plan allows HRM to see how many people
they should hire based on revenue expectations.

• Development of policies to encourage multiculturalism at work Multiculturalism in

the workplace is becoming more and more important, as we have many more
people from a variety of backgrounds in the workforce.

• Recruitment This involves finding people to fill the open positions.

• Selection In this stage, people will be interviewed and selected, and a proper
compensation package will be negotiated. This step is followed by training,
retention, and motivation.
2. Development of Workplace Policies

Some examples of workplace policies might be the following:

• Discipline process policy
• Vacation time policy
• Dress code
• Ethics policy
• Internet usage policy

3. Compensation and Benefits Administration

Examples of employee compensation include the following:
• Salary (Pay)
• Health benefits
• Retirement plans
• Stock purchase plans
• Vacation time
• Sick leave
• Bonuses
• Tuition reimbursement
4. Retention & Succession Planning

Ninety percent of employees leave a company for the following reasons:

• Issues around the job they are performing # Succession planning with
• Challenges with their manager / Management help of mentors in Org’s.
• Poor fit with organizational culture
• Poor workplace environment
• Poor pay / benefits provided, etc….

5. Training & Development

Examples of training programs might include the following:

• Job skills training, such as how to run a particular computer program

• Training on communication
• Team-building activities
• Policy and legal training, such as sexual harassment training and ethics training
6. Dealing with Laws affecting Employment

Human resource people must be aware of all the laws that affect the workplace.
An HRM professional might work with some of these laws:

• Discrimination laws
• Health-care requirements
• Compensation requirements such as the minimum wage
• Worker safety laws
• Labor laws

7. Workers’ Safety / Protection

Worker protection issues might include the following:

• Chemical hazards
• Heating and ventilation requirements
• Use of “no fragrance” zones
• Protection of private employee information
8. Awareness of External Factors

External factors might include the following:

• Globalization and off-shoring
• Changes to employment law
• Health-care costs
• Employee expectations
• Diversity of the workforce
• Changing demographics of the workforce
• A more highly educated workforce
• Layoffs and downsizing
• Technology used, such as HR databases
• Increased use of social networking to distribute information to employees

9. Performance Appraisal

• HRM encourages the people working in an organisation, to work according to their

potential and gives them suggestions that can help them to bring about
improvement in it.
• The team communicates with timely feedback so that the employees’ anticipate
their actions’ towards organizational goals.

• Performance Appraisal when done regularly motivates the employees.

10. Developing Public Relations

• The responsibility of establishing good public relations lies with the HRM to a
great extent. They organize business meetings, seminars and various official
gatherings on behalf of the company in order to build up relationships with other
business sectors.

• Sometimes, the HR department plays an active role in preparing the business and
marketing plans for the organisation too.

• Any organisation, without a proper setup for HRM is bound to suffer from serious
problems while managing its regular activities. For this reason, today, companies
must put a lot of effort and energy into setting up a strong and effective HRM.
HR Cycle or Employee Life Cycle

• Refers to the stages of an employees’ time in a particular organization and the

shifting roles of the Human Resources function play in each of those stages.

Normally 4 (Main) Stages (some textbooks have up-to 8 Stages):

Stage 1

Recruiting and On-boarding

• Recruiting is the process of hiring a new employee.

• This might include placing the job ads (newspaper, mag’s, Media, online, job
portals etc…), Calling for walk-in’s, campus interviews, internal references,
display boards (internal / external), word-of-mouth, etc….

• selecting candidates whose résumés look promising, conducting employment

interviews and administering assessments such as personality profiles to choose
the best applicant for the position.
• In some organizations, the recruiting stage is referred to as "hiring support."

• Onboarding is the process of getting the successful applicant set up in the system
as a new employee.

Stage 2

Orientation and Career Planning

• Orientation is the process by which the employee becomes a member of the

company's work force through learning her new job duties, establishing
relationships with co-workers and supervisors and developing a niche.

• Career planning is the stage at which the employee and her supervisors work out
her long-term career goals with the company.

• The human resources department may make additional use of personality profile
testing at this stage to help the employee determine her best career options with
the company.
Stage 3

Career Development / Training & Development

• Career development opportunities are essential to keep an employee engaged

with the company over time.

• After an employee has established himself at the company and determined his
long-term career objectives, the human resources department must try to help him
meet his goals, if they're realistic.

• This can include professional growth and training to prepare the employee for
more responsible positions with the company.

• The company also assesses the employee's work history and performance at this
stage to determine whether or not he has been a successful hire.
Stage 4

• Termination or Transition

• Some employees will leave a company through retirement after a long and
successful career.

• Others will choose to move on to other opportunities or be laid off. Whatever the
reason, all employees will eventually leave the company.

• The role of HR in this process is to manage the transition by ensuring that all
policies and procedures are followed, carrying out an exit interview if that is
company policy and removing the employee from the system.

• All of these stages can be handled internally or with the help of companies that
provide services to manage the employee life cycle.
HR In Startups

Watch the below video (later) -- 9.10 Min

https://www.youtube.com/watch?v=nzs_z9OR5VI

------------------------XXXXXXXXXXX------------------------------------XXXXXXXX---------------
 END OF UNIT 4!!!

-----------------------XXXXXXXX-----------------------------------------------XXXXXXXX-----------