Nature and scope of

HRM and HRD

Module 1
 Definition and Meaning
 HRM is the process of acquiring , training ,
appraising and compensating employees and
attending to their labour relations , health and
safety and fairness concerns .

 HRM is the planning , organizing , directing and

controlling of the procurement , development ,
compensation , integration, maintenance and
separation of human resources to the end that
individual , organizational and social objectives
are accomplished .
 Evolution of HRM
PERIOD EMPHASIS STATUS ROLES
1920-30 Welfare management and Clerical Welfare
paternalistic practices administrator

1940-60 Expanding the role to cover Administrative Appraiser

labour, welfare, IR and personnel Advisor
administration, Introduction of Mediator
techniques
1970-80 Efficiency, effectiveness, Developmental Change agent
Emphasis on human values, Trainer
aspirations, dignity Integrator
1990 Incremental productivity gains Executive, Developer
onwards through human assets proactive and Counsellor
growth oriented Mentor
Problem solver
 Nature of HRM
 Pervasive force
 Action oriented
 Individual oriented
 People oriented
 Future oriented
 Development oriented
 Integrating mechanism
 Auxiliary services
 Interdisciplinary functions
 Continuous function
Objectives of HRM
 To help the organization reach its goals
 To employ the skills and abilities of the
workforce efficiently
 To provide the organization with well trained &
well motivated employees .
 To increase to the fullest the employee’s job
satisfaction and self actualization.
 To develop and maintain QWL
 To communicate HR policies to all employees
 To be socially and ethically responsive to the
needs of society.
 Personal V/s HR

 Personnel management is more administrative

in nature, dealing with payroll, complying with
employment law, and handling related tasks.

 Human resources, on the other hand, is

responsible for managing a workforce as one of
the primary resources that contributes to the
success of an organization .
Beliefs and assumptions Careful delineation of Aim to be ‘ beyond
1. Contract written contracts. contract’ ‘can do’ outlook
2. Behaviour referent Norms/customs and practice Values/ Mission
3. Nature of relations Pluralist Unitarist
4. Managerial task Monitoring Nurturing
Strategic aspects
1. Key relations
Labour management Customer
2. Speed of decision
Slow Fast
Line Management
1. Mangement role
Transactional Transformational
2. Communication Indirect Direct
3. Standardization High Low
Key levers
1. Pay Job evaluation(fixed grades) Performance based
2. Job categories
Many Few
3. Job design
Division of labour Team work
4. Training
&Development Controlled access to courses Learning companies
PM HRM
Personal HR
 Focus – Employee  Partnerships with
relations internal and external
 Initiatives- Slow , customers
reactive  Fast , productive
 Time horizon – Short  Short, medium ,long
term term
 Key investments-  People , Knowledge
Capital , products  Line managers and
 Responsibility-Staff staff specialists
specialists
Human Resource management is based on the
efficient utilization of employees in achieving
two main goals within an organization.

 The first goal is to effectively make use of the

talents and abilities of employees to achieve the
operational objectives that are the ultimate aim
of the organization.
 Along with realizing the goals of the
organization, Human Resource management
also seeks to ensure that the individual
employee is satisfied with both the working
environment and the compensation and
benefits that he or she receives.
 Features of HRM

 HRM is concerned with employees both as

individuals and as groups in attaining goals.
 HRM is concerned with development of human
resources i.e. knowledge, skills, capabilities ,
attitudes.
 HRM covers all levels (low, middle,& top) and
categories( unskilled, skilled, technical,
professional, managerial) of employees .
 HRM applies to all types of organizations in the
world .
 Features of HRM

 HRM is a responsibility of all line managers

and a function of staff managers in an
organization.
 HRM is the central subsystem of an
organization .
 HRM aims at securing co-operation from all
employees in order to attain predetermined
goals .
 HRM is a continuous and never ending
process
Functions of HRM

Managerial functions Operative functions

 Planning  Employment
 Organizing  Human resources
 Directing development
 Controlling  Compensation
 Human relations
 Industrial relations
 Emerging issues in
HRM
 Managerial Functions
 Planning – This function deals with determination of the
future course of action to achieve. Planning of personnel
today prevents crisis tomorrow .
 Organizing –This function is concerned with proper
grouping and assigning of personnel activities and
delegation of authority.
 Directing –This function involves supervising and
guiding the personnel
 Controlling – this function is concerned with measuring
employee’s performance & correcting deviations
 Operative Functions

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1. Staffing or Procurement
 Job Analysis
 Human resource planning
 Recruitment
 Selection
 Placement
 Induction & Orientation
 Internal Mobility
2. Development

 Training
 Executive Development
 Career planning and Development
 Human Resource Development
3. Compensation

 Job evaluation
 Work scheduling
 Performance appraisal
 Compensation administration (Wage &
salary administration)
 Incentives & Benefits
 Bonus
 4.Maintenance

 Employee Health and Safety

 Employee Welfare

 Social security
5.Employee and Labor relations

 Grievance redressal
 Discipline
 Collective bargaining
 Employee participation & Empowerment
 Trade unions
 Industrial Relations
6. Emerging Issues

 HR Audit
 HR Accounting
 HRIS
 Stress and Counseling
 QWL
 Human Resource Research
 IHRM
Role of HR manager

 Administrative roles

 Operational roles

 Strategic roles
Administrative roles
 Policy maker – formation of policies
governing talent acquisition, retention,
wage and salary administration, welfare
activities, working conditions etc
 Administrative expert – information
processing and record keeping.
 Advisor- advising ,suggesting, and helping
the line managers in discharging the
responsibilities .
 House keeper – manages the show by
recruiting , pre-employment testing , reference
checking ,time keeping etc..
 Counselor – problems related to professional
and personal life will be addressed
 Welfare officer-provides and maintains
hospitals , canteens, crèches , educational
institutes, clubs, libraries etc…
 Legal consultant- plays a role of grievance
handling, settling of disputes, disciplinary cases
, collective bargaining etc..
Operational roles
 Recruiter – Talent acquisition
 Trainer – Helps in enhancing knowledge
and skills .
 Coordinator – linking pin between
various departments of an organization.
 Conflict handler
 Strategic roles

 Change agent – HR manager helps to replace

1. Resistance with resolve
2. Planning with results
3. Fear of change with excitement

 Strategic partner – Strategy formulation and

strategy implementation .
 Qualities And Qualification of
HR Manager
Qualities
1. Personal attributes – initiative, maturity in
judgment, analytical ability ,intellectual
integrity, knowledge of labour laws ,
understanding of human behaviour and
human needs .
 Intelligence – skills to communicate ,
articulate, moderate , command over
language , tact in dealing with people etc..
 Education skills
 Discriminating skills
 Executing skills

2. Experience and training

3. Professional attitudes – HR manager

must be able to combine social justice
with a warm personal interest in people
which must be secured by
commonsense, compassion and
integrity.
 Qualifications
 Degree from recognized university .
 PG Degree / Diploma in HRM ,HRD ,
Labour welfare, psychology, IR
 MBA with specialization in HR
 Knowledge of Local language
 HR mastery – knowledge and
understanding of areas such as staffing,
development, appraisal, rewards, team
building, communication etc…
 Personnel policies , procedures
and programs
Personnel policies
 guide action
 are general standards or parameters based on which decisions
are reached .
Features:
1. Personnel policies are derived from personnel objectives of an
organization.
2. It summarizes past experience in the form of useful guidelines
that help managers to speed up decision making process.
3. It serves as a standing plan that can be put to use repeatedly
while solving problems of recurring nature.
4. It helps in achieving coordination of organizational members.
Types of personnel policies
 Originated policies – established by top
management so as to guide executive
thinking at various levels.
 Appealed policies – formulated to meet the
requirements of certain peculiar situations
which have been not covered by the earlier
policies
 Imposed policies – formed under pressure
from external agencies such as government
, trade unions etc .
 General policies- They reflect the basic
philosophy and priorities of the top
management .

 Specific policies- They cover specific

issues such as hiring, rewarding and
negotiating .

 Written and Implied policies

Advantages-HRM Policies
 Delegation
 Uniformity
 Better control
 Standards of efficiency
 Speedy decisions
Procedures
 Procedures are detailed statements describing
specifically how the policy is to be implemented .
 Policies are implemented by procedures.
 Procedures are derived from policies.
 Chronological ,step-by-step sequence of required
action.
 Policies define a broad field .Procedures show a
sequence of activities within that area
 Multi purpose plan
Programmes
 Programmes are complex sets of goals ,
policies, procedures , rules , steps to be
taken, resources to be employed and
other elements necessary to carry out a
given course of action.

 Single purpose plan

 Line relationship

 Relationship existing between 2 or more managers

due to delegation of authority and responsibility and
giving or receiving instructions or orders .
 Generally exists between a superior and a
subordinate.
 Line managers are completely responsible and
accountable for the results achieved by the
employees of respective departments .
 Staff relationship
 Relationship existing between 2 or more
managers due to giving and taking advice,
guidance, information, assistance , counseling
etc… in the process of attaining organization
goals .
 Staff managers analyse problems, collect
information and develop alternative suggestions
and help line managers to make right decisions
quickly.
LINE and STAFF
Relationship in an
Organization
(illustration)
HR management is a
line responsibility
and
a staff function
 Organization of Human
Resource Department

 HR department in small organization.

 HR department in large organization.

 Factors influencing HRM

External Factors Internal Factors

 Political and legal factors  Organizational structure

 Economic factors  Strategy, task and
 Technological factors leadership
 Cultural factors  Unions
 Human resources in the  Organizational culture
country and conflict
Challenges and human
resource management
 Corporate reorganization
 Loss of job, pay and benefits
 Job changes
 Transfer to new geographic location
 Changes in career
 Changes in organizational power, status and prestige.
 Staff changes
 Change in corporate culture
 Global Competition
 International joint ventures
 Handling Expatriates
 Repatriation process
 Multinational companies

 Slower Growth
 Economic downturn
 Use of IT
 Automation
 Flatter organization
 Employee expectations

 Increasing diversity in the work force

 Primary dimensions-Age, gender, race,
physical abilities
 Secondary dimensions-Work background,
education, income, marital status, religious
beliefs, geographic location etc
 Dual-income couples