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Human resource management

Introduction to HRM
1)Nature of human resource management
2)HR activities
3)HR Management Challenges
4)HR Management Roles
5)Ethics and HR
6)HR Management Competencies and
Definition of human resource
HR Management
The design of formal systems in an
organisation to ensure effective and
efficient use of human talent to accomplish
organisational goals.
It may be defined as the art of procuring,
developing and maintaining competent
workforce to achieve the goals of an
organisation in an organisation in an
effective and efficient manner.

Evolution of human resource

Evolved in the beginnings about 1900
Began as a primarily clerical operation
concerned with payroll, employee records, and
arranging community visits
Dramatic changes started after the social
legislation of 1960s and 1970s
They were called as personnel departments
They were became the legal ramification of
policies and procedures affecting the employees

Functions of HR Management
The design of formal systems in an
organization to ensure effective and
efficient use of human talent to accomplish
organization goals.
Appropriate and legal compensation
system is needed
Employees must be recruited, selected,
trained and managed
Research on these and knowledge from
successful approaches form the basis for
HR management
Nature of HRM

Human resource management is a
process of bringing people together so that
the goals of each are met. It tries to secure
the best from people by winning their
wholehearted cooperation.

The features supporting this are

Features supporting HRM
Pervasive forces (spread)
Action oriented
Individually oriented
People oriented
Future oriented
Development oriented
Integrating mechanism
Comprehensive function (understand)
Auxiliary service (assist and support)
Inter disciplinary function
Continuous function

Scope of HRM
Personnel aspects concerned with manpower
planning, recruitment, selection, placement,
transfer, promotion, training and development,
layoff and retrenchment, remuneration,
incentives, productivity etc.
Welfare aspect working conditions and
amenities such as canteens, creches, rest and
lunch rooms, housing, transport, medical
assistance, education, health and safety,
recreation facilities
Industrial relations aspect union management
relations, joint consultation, collective
bargaining, grievance and disciplinary
procedures, settlement of disputes etc.
Objectives of HRM
To help the organisation reach its goals
To employ the skills and abilities of the
workforce efficiently
To provide the organisation with well-trained and
well-motivated employees
To increase to the fullest the employees job
satisfaction and self-actualisation
To develop and maintain a quality of work life
To communicate HR policies to all employees
To be ethically and socially responsive to the
needs of the society.
HRM functions
This can be classified into two different
dimensions. They are

Managerial Functions
HRM functions
Operative functions

Industrial Relations
Integration functions

Procurement functions
It is concerned with employing and procuring
people who possess the necessary skills,
knowledge and aptitude.

Job analysis
Human resource planning
Induction and orientation
Internal mobility
Development functions
It is the process of improving, molding,
changing, and developing the skills and
knowledge, creative ability, aptitude, attitude,
values and commitment.

Executive development
Career planning and development
Human resource development

Compensation functions
A process which inspires people to give their
best to the organization.

Job design
Work scheduling
Job evaluation
Performance appraisal
Compensation administration
Incentives and benefits
Industrial relations functions
It aims at protecting and preserving the
psychological and physiological health of

Health and safety
Employee welfare
Social security measures

Integration functions
It tries to integrate the goals of an
organization with employee aspiration through
various employee-oriented programmes.
Grievance redressal
Teams and teamwork
Collective bargaining
Employee participation and empowerment
Trade unions and employees association
Industrial relations

HRM Models
Need for HR Models
- relates to a strategic and coherent
- involves a set of interrelated policies
with ideological and philosophical
- forms a business focused approach to
manage people for competitive advantage
- the people are considered as the
most valuable asset of the organisation
Types of models
Matching model specifies organisation
structure and HR system must match with
the organisational strategy.

Harvard framework HRM model is
composed of policies which promote
mutuality, ie. Mutual goals. Mututal
influence, mutual respect, mutual rewards
and mutual responsibility
Types of models

The 5P model of strategic HRM
- HR philosophy (how the people should be
- HR policies (guidelines for action relating to
- HR programs (initiate and sustain efforts)
- HR practices (nurture leadership,
managerial or operational roles)
- HR processes (this is needed for the
formulation and implementation of other HR
Models in UK
David Guests perspective
- strategic integration
- high commitment
- high quality
- flexibility
Karen legges perspective
- HR policies should be integrated with
strategic business planning
- human resources are valuable and a
source of competitive advantage
- human resources can be tapped most
effectively by mutually consistent policies which
promote commitment and foster a willingness in
employees to act flexibly.
Models in UK
John Storeys Perspective
- A set of beliefs and assumptions
- A strategic thrust embodying
decisions about people management
- The central involvement of line
- Dependence upon a set of leves to
determine the employment relationships
Strategic dimensions model in Indian organisations
Strategic HRM dimensions
Organisational level
Organisational size
Organisational life
Cycle stage
Number of ownership
Type of industry
Strategic HR roles

Firms Per-
Turnover and
Individual level
Hierarchical level
Type of manager
Performance linkage model

Team work





Speed of



Net Profits

Return on

HR Activities
HR management is composed of
several groups of interlinked activities
taking place within the context of the

HR managers must consider certain
external environment forces also to plan
the activities
HR Activities
HR activities can be overviewed into seven
broad classifications. They are

HR planning and Analysis
Equal Employment Opportunity
HR Development
Compensation and Benefits
Health, Safety and Security
Employee and Labour/Management relations

HR Activities
HR planning and Analysis

a)Attempt to anticipate forces that will
influence the future supply and demand for
b) Adequate human resource information
system to provide timely information for
HR planning.
c) Analysis and assessment of HR
HR Activities
Equal employment opportunity
Individuals should have equal
treatment in all employment-related
Compliance with laws and regulations
Sufficient availability of diversity of
individuals to meet affirmative action
Provision for court laws and legislation
HR Activities
Staffing :
Adequate supply of qualified individuals
to fill the jobs in an organisation.

i) Job Analysis
ii) Job Description
iii) Recruitment
iv) Selection
HR Activities
HR Development:
i) Orientation
ii) Job skill training
iii) Retraining
iv) Employee development
v) Career planning
vi) Performance Management

HR Activities
Compensation and Benefits

i) Wage and Salary administration
ii) Incentives (gainsharing, productivity
iii) Benefits (health-care benefits,
educational benefits to children etc.,)
HR Activities
Health, Safety and Security
Ensuring the physical and mental
health and safety of the employees.
i) Occupational safety and health act
ii) Employee Assistance programs (EAP)
iii) Health promotion programs
iv) Work place security
HR Activities
Employee and labor/Management
maintaining relationship between the
managers and the employees to prosper
together. For this they should keep
concentrate on
i) HR Policies
ii) Employee Rights and Privacy
iii) Union/Management Relations
HR Management Challenges
The rapid pace at which organizations have
gone global has greatly expanded HR issues
with different cultures. Some of the most
significant changes facing HR management

Economic and technological chages
Workforce availability and quality
Growth in contingent workforce
Demographics issues
Organisational restructuring and

HR Management Challenges
Economic and technological changes
- major shift of jobs from manufacturing to
agriculture and service industries
- due to technological changes some
organisations reduced employees and some
organisations retained them
- growth of information technology linked to
Internet has led many changes throughout the
organisations of all types.
- technology-caused occupational shifts
- global competition
HR Management Challenges
Workforce Availability and Quality
- inadequate supply of workers with the skills
- If the availability is there also, the HR
professionals have faced greater pressures to
retain them.
- conventional educational system doesn't
match the work related expectations.
- Knowledge jobs require more skill and
HR Management Challenges
Growth in Contingent (temporary) Workforce

- Nowadays contingent people contribute
20% of the workforce.
- Clear determination of staffing needs and
deciding in advance which employees or
positions should form the core and which
should be more fluid.
- based on this making HR policies and other
related works becomes a major issue
HR Management Challenges
Demographics and Delivery

- Minority racial and ethnic persons account
for a percentage of overall labour force
- Raacial problems
- Gender issues
- Average age of population and workforce
- individuals with disabilities represent a pool
of highly motivated and capable individuals
HR Management Challenges
Balancing Work and Family
- Dual Career families
- Decline of traditional family set up
- Seventy percent of all women with
children under age six and 60% of women
are with children under age 3 are working
- Both men and women are marrying at
later ages.
HR Management Challenges
Organisational restructuring,
- eliminating layers of managers
- closing facilities
- merging with other organisations
- out placing the workers
eg. Cisco systems successfully used its
acquisition deal
HR Management Roles
Administrative Role
focuses extensively on clerical
administration like
i) Administering employee benefits
ii) Conducting new employee orientations
iii) Interpreting HR policies and procedures
iv) Preparing equal employment reports

HR Management Roles
Employee Advocate & Operational Role for HR
i) Traditionally viewed as a voice of employee
ii) Managing Compensation programs
iii) Recruiting and Selecting for current openings
iv) Conducting safety training
v) Resolving employee complaints
vi) Support for the organisation in handling
disputes and problems
HR Management Roles
Strategic Role of HR
focus on the longer-term implications of HR
issues like
enhancing organizational performance
involvement in strategic planning
decision making on mergers, acquisitions
and downsizing
redesigning organizations and work
ensuring financial accountability for HR