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Introduction to Human Resource Management

Submitted By: Namrata Tripathi Lecturer (MBA) NIET

Lecture Plan

Lecture Objectives

The success story of Google is a proof that HRM can be a definite competitive advantage for a firm and can make a real difference not only to the fortune of the company but also to the individuals as well.

Definitions of Human Resource Management

Nature of HRM

HRM is pervasive in nature HRM focuses attention on action rather than on record keeping Helps employees develop their potential fully Tries to build and maintain cordial relations between people working at various levels of management Exist to assist and advise the line or operating managers to do their work more effectively

Scope of HRM

Personnel or Labor Aspect

Welfare Aspect

Industrial Relations Aspect

Objectives of HRM

To act as a liaison between the top management and the employees To arrange and maintain adequate manpower inventory To offer training as a way of developing skills, enhancing productivity To devise employee benefits scheme for improving employee motivation and group morale To ensure and enhance quality of work life To help keep us ethical values and

Objectives of HRM

Functions of HRM
Functions of HRM

Managerial Functions Planning Organizing Staffing Directing Controlling

Operative Functions Procurement Development Compensation Maintenance and Motivation Integration Industrial Relations

Operative Functions of HRM

Procuremen t Job Analysis and design HRP Recruitmen t Selection Placement Orientation Socializatio n


Maintenanc e Compensatio n Job Evaluation Performance Evaluation Wages Administration Incentives & Benefits Employee Well Being Social Security Workers Participation Motivation Job Rotation HR Records, Audit HRIS

Integratio n
Industrial Relations Disciplin e Grievanc e Redressal Dispute Settlemen t Collectiv e Bargainin g

Career Planning & Development Workers Training Executive Development Organization al Development



A Recap

Lecture Plan

Lecture Objective

HRM Vs Personnel Management

Human Resource Management Proactive in nature Resource centered activity Personnel Management Reactive in nature Employee centered activity

Emphasizes open ended contracts, Emphasizes the strict observance of depending upon the demands of rules and procedures the business
Better performance itself is a cause Job satisfaction and morale as a of job satisfaction and morale source of better performance Emphasizes autonomous work Emphasizes monetary rewards, and groups, challenging jobs and conventional job designs to creativity for motivating the people encourage people to motivate their performance

Environment of Human Resource Management

Legal Considerations


Vision and Mission


Organizational Culture



HR System

Human Resource 1 Management

Business Strategy

Safety and Health

Organizational Structure

2008 by Prentice Hall


Environment may be understood as all those forces which have Their Bearing on the functioning on the HR department.
Environmental Forces

1.External forces
Political and legal Economic Technological Social Environment

2. Internal forces
Unions Organisational cultural conflicts Professional bodies

External forces
Political and Legal:

There are three institutions which together constitute the total political environment. They are -i) the legislature, ii) the executive, and iii) the judiciary.
i) The legislature - The legislature also called Parliament at central level and Assembly at the sate level, is the law making body. ii) The executive The executive popularly known as the govt, is the law-implementing body. The legislature decide and the executive acts.

iii)The judiciary Above this two is the judiciary which has the role of watchdog. The main function of the judiciary to ensure that both the legislature and the executive work within the confines of the constitution and in the public interest.

All HR activities are affected in one way or the other by this political and legal system prevail in the society. .

Political Stability

To be specific, HR planning, recruitment and selection, placement , Training and development, remuneration, employee relations and Separation are conditioned by constitutional provisions.

Legal Factors
The Trade Union Act, 1926 The Payment of Wages Act, 1936 The Industrial Employment (Standing Orders) Act, 1946 The Industrial Disputes Act, 1947 The Minimum Wages Act, 1948 The Factories Act, 1948 The Maternity Benefit Act, 1961 The Payment of Gratuity Act, 1972 The Child Labor Act, 1986

Economic environment refers to all those economic forces which have bearing on the HR factor. Labor Market Demand for and Supply of Labor Categories of Labor: Self Employed, Salaried Employees, Casual Employees and Unemployed

Competitors Competition plays significant role in HR function and Activities. Organization need to groom its employees through well managed HR planning programmes to withstand competition.

Customers Customers have their own influence on companies personal Functions . So everybody in the orgn must endeavour to offer products which gives satisfaction for the money customers pay.

Globalization: Indian organizations have become global with their operations reaching out to newer markets and countries. Use of better technology Workforce diversity and international HR practices.

Technology :
Technology plays a vital role in HR functions, in order to make people more intellectual and efficient. With the advent of technology, jobs tend to become more intellectual or upgraded. A job hitherto handled by illiterate or unskilled worker now requires the service of an educated And skilled worker. With the technology up gradation in the orgn job holders will become Highly professionalized and knowledgeable.

Technology Challenges for HRM


Cultural forces :
Culture refers to the complex whole which includes knowledge, belief, art Morales, laws, customs and other capabilities and habits acquired by an Individual as a member of society. Eg: Tata and L& T

Tatas culture Hire the right people and let them free

L & Ts culture They are known for their professional approach

Internal forces
Unions :
A firms personal activities will be influenced by its own unions as well as the unions of other plants.
A trade union may be understood as association of workers or management formed to protect their own individual interest. All HR activities like recruitment, selection, training, compensation are carried out in consultation with union leaders. Eg : The Bokaro steel plant has 68 trade unions. Calcutta Corporation has about 100 trade unions.

Organizational culture and conflict :

Every orgn has its own culture. Organizational culture is a product of all the orgns Features. Organizational culture reflects the past and shapes the future Eg: Objectives can be achieved in several acceptable ways . Means there are usually Multiple paths to objectives. The key to success is picking the path best fits the Organizations culture. There is often conflict between organisational culture and employees attitudes. Conflict arises because of the following dualities. Eg : Personal goal v/s organisational goal Personal ethics v/s organisational ethics Rights v/s duties



A Recap

Lecture Plan

Lecture Objective


Resource Development (HRD) is A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands.

aims at helping people to acquire competencies required to perform all their functions effectively and make their organization do well.

HRD is a process by which the employees of an organization are helped in a continuous and planned way to: 1) To acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles. 2) To develop their general capabilities as individuals and discover and exploit their own potentials. 3) Develop an organizational culture in which superior subordinate relationships, team work and collaboration among sub units are strong.

Evolution of the HRD

Concept The Commodity concept What is it all about? Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production concept

The Goodwill concept

Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.
Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.

The Paternalistic concept/ Paternalism

Evolution of the HRD

The Humanitarian concept To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organization is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organization. There should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organization is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

Evolution of HRM
1920-30 1940-60

Welfare management Paternalistic practices Expanding the role to cover labor, welfare, industrial relations and personnel administration Efficiency, effectiveness dimensions added emphasis on human values, aspirations, dignity, usefulness

Clerical Administrative

Welfare administrator Policeman Appraiser Advisor Mediator Legal advisor Fire fighting Change agent Integrator Trainer Educator




Incremental productivity gains through human assets

Proactive, growth-oriented

Developer Counselor Coach Mentor Problem solver

Compete with the best and win

Post 2000

Aggressive cost cutting in order to compete in a global environment

Fight for survival to live for another day

Personnel Function Maintenance Oriented Reactive function, responding to events as and when they take place Exclusive responsibility of personnel department Emphasis is put on monetary rewards Improved performance is the result of improved satisfaction and morale Improve the efficiency of people and administration

Points of Distinction Orientation Philosophy

HRD Development Oriented Proactive function, trying to anticipate and get ready with appropriate responses Responsibility of all managers within the organization Emphasis is on higher order needs Better use of HR leads to improved satisfaction and morale Develop the organization as a whole and its culture


Motivators Outcomes


Role of PM/HR
HR Manager plays a vital role in the modern organization. These are i) The Conscience role ii) The Counselor iii) The Mediator iv) The Spokesman v) The Problem-solver vi) The Change Agent As a Specialist the other roles of HR Manager are: i) Personnel role ii) Welfare role iii) Clerical role iv) Fire-fighting / legal role

Qualities of HR Manager
The function of personnel management vary from orgn to orgn both in nature and degree. However, the qualities which will be applicable in general can be summarized as follows: HR Manager must have initiative, resourcefulness, depth of perception, maturity in judgment and analytical ability. He should be thorough with labor laws. He must be familiar with human needs, wants, hopes and desires, values, aspiration etc. without which adequate motivation in impossible.

He should also possess personal attributes like:

i) ii) iii) iv) v) vi) vii)

Intelligence Educational skills Discriminating skills Executing skills Experience and training Professional attitudes qualifications