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Mr. Bhat, HR Manager of IVS group of companies approached the CEO on 30th march 0!

3 and appraised him the a"sence of Mr. #i$$ai, %ssistant %ccountant in the &inance 'ept. for the $ast one month and re(uested him to appro)e the Sho*+cause ,otice to "e ser)ed to Mr. #i$$ai as per the -a"our -a*s in force. .he CEO to$d Mr. Bhat / when Mr. Pillai has been absent for the last one month, your duty is to go to Mr. Pillais House, Find out the reason and solve the problem of Mr. Pillai, and not just to report the absence to me. Go immediately to Mr.Pillais house, find out the reason and report it to me before .!! P.M today"

Mr. Bhat immediate$0 $eft for Mr.#i$$ai1s house and $earnt from Mr. #i$$ai1s *ife that Mr. #i$$ai has "een distress as he has "een tr0ing to mo"i$ise Rs. !,00,000 for the surger0 of his sic2 *ife in a reputed hospita$ in Chennai. Mr. Bhat cou$d meet Mr.#i$$ai around 3.00 O c$oc2 and "oth of them met the CEO. Both of them appraised the CEO the Reason for the distress of Mr. #i$$ai. .he CEO immediate$0 contacted Hospita$ informed them that the compan0 *i$$ Rs.!,00,000 tomorro* i.e., 3!st March 0!3 re(uested doctor to conduct the surger0 for surger0 of Mr. #i$$ai1s *ife tomorro* itse$f. and pa0 and the

.he CEO ordered Mr.Bhat to arrange to issue a Che(ue of Rs.!,00,000 in fa)our of hospita$ and a$so to pa0 Rs.!0,000 in cash to Mr. #i$$ai to meet the incidenta$ e3penses as a grant. .he CEO to$d Mr. Bhat 4 / Problems of our #mployees are the companys problems. $e treat the employees as human beings and members of the our Family." .he piece of ne*s spread in the entire compan0 *ithin no time and the emp$o0ees fe$t high$0 secured. .he producti)it0 $e)e$ increased "0 !005 in the ne3t 6uarter itse$f and sustained o)er 0ears to come

!. 7h0 did Mr. Bhat prefer to fo$$o* a $ega$ approach to the pro"$em8 . 7h0 did the CEO pro)ide Rs. !,!0,000 as 9ust a grant to Mr. #i$$ai8 3. 7hat *ou$d "e the mora$e of emp$o0ee1s fami$0 mem"ers after $istening to this incident8

Managers must find ways to get the highest level of contribution from their workers. And they will not be able to do that unless they are aware of the many ways that their under-standing of diversity relates to how well, or how poorly, people contribute

Human Resource Management

The process of attracting, developing and maintaining a talented and energetic workforce to support organisational mission, objectives and strategies

Human Resource Management

It is an art of procuring, de)e$oping and maintaining human resource: competent *or2 force to achie)e organisationa$ goa$s in an effecti)e and efficient manner It is a *a0 of managing the peop$e at *or2

Human Capita$
Human Capital ; an organi<ation1s emp$o0ees descri"ed in terms of their4
training e3perience 9udgment inte$$igence re$ationships insight

.he concept of /human resource management= imp$ies that emp$o0ees are resources of the emp$o0er.


&eatures of HRM
!. Considered as per)asi)e force . It1s action oriented 3. It1s indi)idua$$0 oriented >. It1s peop$e oriented ?. It1s action oriented @. Integrating mechanism A. It is considered as interdiscip$inar0 function B. It1s continuous function C. It pro)ides anci$$ar0 ser)ices DSupports E

Scope of HRM !.#ERSO,%- %S#EC.S .7E-&%RE %S#EC. 3.I,'FS.RI%- RE-%.IO, %S#EC.

#ERSO,%- %S#EC.S

!. #$anning . Recruitment 3. Se$ection >. #romotion ?. .ransfer @. 'emotion A. Incenti)es

7e$fare %spects
Canteen &aci$it0 Housing &aci$it0 Hea$th and Safet0 -unch Room Education

Industria$ Re$ations %spect

Fnion and management re$ationship Co$$ecti)e Bargaining Sett$ement of disputes

Human Resource Management

Evolution of Meaning of Human Resource Management:

1. The commodity concept 2. The factor of production concept 3. ood!ill concept" la#our !elfare concept $. The paternalistic concept"paternalism %. The humanitarian concept &. The human resource concept '. The emerging concept

The commodity concept: -a"our *as regarded as a commodit0 to "e "ought and so$d. 7ages *ere "ased on demand and supp$0. Go)ernment did )er0 $itt$e to protect the *or2ers. .he *or2ing conditions *ere *orst, *or2ers *or2ed from da*n to dus2 under unh0gienic, unsafe *or2ing conditions, meagre*ages. The factor of production concept: -a"our is $i2e an0 other factor of production, )i<, mone0, materia$, $and etc. *or2ers are $i2e machine too$s. -a"our is treated "eing more mechanica$ and $ess human as *e$$ as focusing on$0 on economic needs of *or2force.

ood!ill concept" la#our !elfare concept:

7e$fare measures $i2e safet0, first aid, $unch room *i$$ ha)e a positi)e impact on *or2ers1 producti)it0. The paternalistic concept"paternalism: Management must assume father$0 and protecti)e attitude to*ards emp$o0ees. #aterna$ism doesn1t mean mere$0 pro)iding "enefits "ut it means satisf0ing )arious needs of the emp$o0ees as parents meet re(uirements of the chi$dren.

The humanitarian concept: .o impro)e producti)it0, ph0sica$, socia$ and ps0cho$ogica$ needs of the *or2ers must "e met. %s Ma0o and others stated, mone0 is $ess a factor in determining output, than group standards, group incenti)es and securit0. .he organisation is a socia$ s0stem that has "oth economic and socia$ dimensions. The human resource concept: Emp$o0ees are the most )a$ua"$e assets of an organisation. .here shou$d "e a conscious effort to rea$ise organisationa$ goa$s "0 satisf0ing needs and aspirations of emp$o0ees.

The emerging concept

The modern concept considers human resources as an asset which can provide a sustainable competitive advantage to the firm. Today's workforce considers themselves as partners in industry. Management' have also responded with employee empowerment practices like stock option plans, profit sharing plans and more autonomy and challenging responsibilities for workforce. uman !esource Management has evolved from the function of record keeping, maintaining harmonious industrial relations to empowering workforce to become more involved and contribute their creativity and intelligence in pursuit of organi"ational goals and ob#ectives of higher productivity, customer satisfaction and higher profitability.

O"9ecti)es of HRM
Societal Object
-ega$ comp$iance Benefits Fnion and Management Re$ations

Organisational Objectives
!. #$anning . Recruitment 3. Se$ection >. #$acement ?. #romotion @. .raining %nd 'e)e$opment

!. .o he$p the organisation to reach the goa$s . .o emp$o0 the s2i$$s and a"i$ities of *or2force efficient$0 3. .o pro)ide the organisation *ith *e$$ trained and moti)ated emp$o0ees >. .o increase the emp$o0ees 9o" satisfaction and se$f actua$isation ?. .o de)e$op and maintain a (ua$it0 of *or2force @. .o communicate the HR po$icies to Emp$o0ees A. .o he$p to maintain ethica$ po$icies and Beha)iour

&unctions of HRM
!. Manageria$ functions .#ersonne$ p$anning .Organising .'irecting .Contro$$ing

Planning Esta"$ishing goa$s and o"9ecti)es to "e achie)ed 'e)e$oping ru$es and procedures 'etermining p$ans and forecasting techni(ues Organizing Gi)ing each mem"er a specific tas2s Esta"$ishing departments and di)isions 'e$egating authorit0 to the mem"ers Esta"$ishing channe$s communication of authorit0 and

Creating a s0stem to coordinate the *or2s of the mem"ers

(taffing 'etermining the t0pe of peop$e to "e hired Recruiting prospecti)e emp$o0ees and se$ecting the "est ones from them Compensating the emp$o0ees .raining and de)e$oping the emp$o0ees Setting performance standards and e)a$uating the emp$o0ees1 performance Counse$$ing the emp$o0ees

Getting *or2 done through su"ordinates Ensuring effecti)e t*o+*a0 communication for the e3change of information *ith the su"ordinates Moti)ating su"ordinates to stri)e for "etter performance Maintaining the group mora$e

Esta"$ishment of standard performance Measurement of actua$ performance Comparison of actua$ performance *ith the standard one to find the de)iation Initiation of correcti)e actions, if there are an0 de)iations

Operating functions
1. Employment . HR #$anning . Recruitment . Se$ection . #$acement and induction . Human Resource Development . #erformance appraisa$ . .raining . Management 'e)e$opment . Career p$anning and 'e)e$opment

3.Compensation Ho" E)a$uation 7age and sa$ar0 administration Incenti)es Bonus &ringe "enefits Socia$ Securit0 Measures >. uil!ing Human Relations ". E##ectiveness o# HR$ Human Resource %ccounting, %uditing and Research

Contro)ersies in HRM
!. Magic *ord . HR manager ;Change %gent : transforming $eader 3. His &unctions+ Remed0: so$ution for a$$ organisation1s i$$s :e)i$s >. Man0 organisations dri)en "0 other o"9ecti)es more than HRM ?. .he ro$e of manager+ Caring or contro$$ing8 @. .he Ro$e of HR Manager strategic ro$e or traditiona$ ro$e &o$$o*ing ru$es ,regu$ations8

.he Ro$e of HR Manager

!. 'efine organisationa$ architecture . %ccounta"$e for organisationa$ %udit >. Set the priorities conducting

3. #artner+ Reno)ating organisation

Strategic HRM
#roacti)e management of the emp$o0ees of a compan0 or organi<ation. Strategic human resource management inc$udes typical %uman resource components suc% as %iring& !iscipline& an! payroll& an! also involves 'or(ing 'it% employees in a collaborative manner to boost retention& improve t%e )uality o# t%e 'or( e*perience& an! ma*imize t%e mutual bene#it o# employment #or bot% t%e employee an! t%e employer.


Strategic HRM refers to t e o!era"" #irection t e organi$ation %is es to &ursue in ac ie!ing its o'(ecti!es t roug &eo&"e. It is argue# t at 'ecause inte""ectua" ca&ita" is a ma(or source of com&etiti!e a#!antage an# in t e "ast ana")sis* it is &eo&"e % o im&"ement t e strategic &"an* to& management must ta+e t ese +e) consi#erations fu"") into account in #e!e"o&ing its cor&orate strategies, -Mic ae" Armstrong* .//01

2effre) Me""o Define#

Strategic Human Resource Management as t e #e!e"o&ment of a consistent* a"igne# co""ection of &ractices 3rograms an# 3o"ices to faci"itate t e ac ie!ement of organi$ation4s Strategic 5'(ecti!es.

2effre) Me""o Define#

Strategic Human Resource Management as t e #e!e"o&ment of a consistent* a"igne# co""ection of &ractices 3rograms an# 3o"ices to faci"itate t e ac ie!ement of organi$ation4s Strategic 5'(ecti!es.

T e &rocess of Strategic Management

Resources Financia" 3 )sica" Human Tec no"og) Ca&ita" Management Systems Cu"ture Structure %or+ s)stems




Com&etition ana")sis Regu"ations Tec no"og) Mar+ets Tren#s Economic tren#s

Formu"ating Strateg)
T ere are fi!e im&ortant !aria'"es t at #etermine t e success of strateg).
5rgani$ationa" structure Tas+ #esign Em&"o)ee training Re%ar# s)stem Information s)stem

Formu"ating Strateg)
Strateg) formu"ation usua"") ta+es &"ace %it t e in!o"!ement of t e to& management Hr an# strategic management &rocess can 'e "in+e# in four %a)s
A#ministrati!e "in+age 5ne %a) "in+age T%o %a) "in+age Integrati!e "in+age.

6arriers to Strategic HRM

S ort term menta"it) an# focus on current &erformance Ina'i"it) of HR to t in+ strategica"") 7ac+ of a&&ro&riation of % at HR can contri'ute Fai"ure to un#erstan# t e ro"e of HR Manager Difficu"t to 8uantif)ing t e HR outcomes 3erce&tion of Human Assets as ig ") Ris+) In!estment Incenti!es for c ange % at mig t arises

Difference 6et%een tra#itiona" an# Strategic HRM

Tra!"t"ona# $RM 0 . Res&onsi'i"it) Ro"e of HR Manager Staff s&ecia"ist Transactiona" 9 c ange fo""o%ers an# Res&on#ents Em&"o)ee Re"ations i& Strateg"c $RM 7ine Manager Transformationa" agent9 c ange "ea#er an# initiator


3artners i& ;it interna" an# e<terna" customers Fast* &ro#ucti!e an# integrate#


S"o%* re"ati!e an# fragmente# S ort Term 6ureaucratic ru"es an# &roce#ures

> ?

Time Hori$on Contro"

S ort* me#ium an# "ong term F"e<i'"e- % ate!er is necessar) to succee#1

Tra!"t"ona# $RM

Strateg"c $RM

2o' Design

Tig t #i!ision of "a'our* In#e&en#ent s&ecia"isation

6roa#* f"e<i'"e 9cross training Teams 3eo&"e an# +no%"e#ge

Be) in!estment Ca&ita" an# &ro#ucti!e


Cost centre

In!estment centre

Im&ortance of HRM
Recru"tment an! Tra"n"ng %er&ormance A''ra"sa#s Ma"nta"n"ng (or) Atmos'*ere Manag"ng D"s'utes De+e#o'"ng %u,#"c Re#at"ons e"&s a com&an) to ac ie!e its o'(ecti!e ac"#"tates 'ro&ess"ona# gro-t*

Cor'orate Image Better re#at"ons ,et-een un"on an! management $e#'s an "n!"+"!ua# to -or) "n a team.grou' I!ent"&"es 'erson &or t*e &uture A##ocat"ng t*e /o,s to t*e r"g*t 'erson Em&"o)ee Satisfaction Cost Sa!ings 3erformance Im&ro!ement