PARTHA RAUT

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 Session Plan - HRM
Sr.No. Topic Details No. of hour Teaching Methodology (lecture / case/
sessions planned test /quiz/presentations/ any other)

1 HRM – Scope & Relationships 3 Lecture / Case study

2 Organization and structure of HR function
3 Lecture / Case study
3 HR Planning – Job & Role analysis, Competency
profiling 3 Lecture / Case study
4 Selection & Recruitment 3 Lecture / Case study
5 Motivation & Employee Engagement – Job
enrichment & enlargement 3 Lecture / Case study

6 Compensation & Benefit as a motivational

strategy 3 Lecture / Case study
7 Performance Management System
3 Lecture / Case study
8 PMS contd. / Quiz 3 Lecture / Case study / Quiz
9 Learning & Development 3 Lecture / Case study
10 OD & Org. Structure 3 Lecture / Case study
11 Change Management – The HR perspective
3 Lecture / Case study
12 Role of HR in Productivity 3 Lecture / Case study
13 Strategic HRM 3 Lecture / Case study
14 Case study presentation 3 Presentation by students
15 Case study presentation 3 Presentation by students
 Assessment Plan
Sr. No. Evaluation Components Weightage of Marks

I Internal Assessment (40%)  

1 Case Study Group presentation 20

2 Case assignment ( individual) 10

3 Class quiz ( Pre-scheduled) 10

II Final examination: University / 60% / **
College
 HUMAN RESOURCE MANAGEMENT DEFINED

Human resource management is defined as a strategic and coherent

approach to the management of an organization’s most valued assets-
the people working there who individually and collectively contribute to
the achievement of its objectives.

Meaningful version of HRM.

 A particular constellation of beliefs and assumptions.
 a strategic thrust informing decision about people management.
 The central involvement of line managers
 Reliance upon a set of ‘leavers’ to shape the employment
relationships.
HUMAN RESOURCE SYSTEM

Human resource management operates through human resource system

that bring together in coherent way.

 HR philosophies describing the over arching values and guiding principles

adopted in managing people.

 HR strategies defining the direction in which HRM intends to go.

 HR policies, which are the guidelines defining how these values, principles and
the strategies should be applied and implemented in specific areas of HRM.

 HR processes consisting of formal procedures and methods used to put HR

strategic plans and policies to effect.

 HR practices comprising the informal approaches used in managing people

 HR programmes, which enables HR strategies, policies and practices to be

implemented according to plan.
HRM ACTIVITIES

Becker and Gerhart have classified these components into three levels: The system
architecture, policy alternatives and practices
MODELS OF HRM

THE MATCHING MODEL

The matching model of HRM was one of the first explicit statement of HRM concept
was made by the Michigan school 1984. The HR systems and Org. Structures should be
managed in a way that is congruent with the Org. Strategy. Hence, the ‘ Matching
Model’ .

 selection – matching available human resources to jobs

 appraisal – performance management system

 rewards - the reward system is one of the most under-utilized and mishandled
managerial tools for driving organizational performance’. It must reward short as
well as long-term achievements, bearing in mind that ‘business must perform in
the present to succeed in the future’.

 development – developing high quality employees.

THE HARVARD FRAMEWORK

 The other founding fathers of HRM were the Harvard School of Beer who developed what is
called ‘ Harvard Framework’.

 This framework is based on the belief that the problems of historical personnel management
can only be solved , when general managers develop a viewpoint of how they wish to see
employees involved in and developed by the enterprise, and of what HRM policies and practices
may achieve these goals. HRM is likely to remain a set of independent activities, each guided by
its own practice tradition.

 Many pressures are demanding a broader, more comprehensive and more strategic
perspective with regard to the organization’s human resource.

 These pressures have created a need for a longer-term perspective management people and
consideration of people as potential assets rather than merely a variable cost.

 ‘Human Resource Management involves all management decision and action that affect the
nature of the relationship between the organization and its employees –
its human resources’
The advantages of Harvard Framework model are :

 incorporates recognition of a range of stakeholder interests.

 recognizes the importance of ‘trade-offs’, either explicitly or implicitly, between the

interests of owners and those of employees as well as between various other interest
groups.

 widens the context of HRM to include ‘employee influence’, the organization of

work and the associated question of supervisory style.

 acknowledges a broad range of contextual influences on management's choice of

strategy, suggesting a meshing of both product-market and socio-cultural logics.

 emphasize strategic choice - it is not driven by situational or environmental

determination.
AIMS OF HRM

 Organizational effectiveness – Distinctive human resources practices share the

core competencies that determine how firms compete.

 Human capital management - it represents the human factor in the organization;

the combined intelligence, skills and expertise that give the organization its distinctive
character. The human elements of the organization are those that are capable of
learning, changing, innovating, and providing the creative thrust which, if properly
motivated can ensure the long-term survival of the organization.

 Knowledge management – it is ‘any process or practice of creating, acquiring,

capturing, sharing and using knowledge, wherever it resides, to enhance learning and
performance in organizations’.
AIMS OF HRM

 Reward management - HRM aims to enhance motivation, job engagement and

commitment by introducing policies and process that ensure that people valued and
rewarded for what they do and achieve and for the levels of skill and competence they
reach.

 Meeting diverse needs - HRM aims to develop and implement policies that
balance and adapt to the needs of its stake holders and provide for the management
of all diverse workforce, taking into account individual and group difference in
employment, personal needs, work style and aspirations and the provision of equal
opportunities for all.

 Bridging the gap between rhetoric and reality – HRM aims to ensure that what is
preached, practiced too. This is done by fairness and transparency in policies and
practices.
POLICY GOALS OF HRM

The models of HRM, the aims set out above and other definitions of HRM have been
distilled by Raymond Caldwell (2004) into 12 policy goals:

 Managing people as assets that are fundamental to the competitive advantage of

the organization.

 Aligning HRM policies with business policies and corporate strategy.

 Developing a close fit for HR policies, procedures and systems with one another.

 Creating a flatter and more flexible organization capable of responding more

quickly to change.

 Encouraging tem working and co-operation access internal organizational

boundaries.
Contd..

 Developing reward strategies designed to support a performance-driven culture.

 Improving employee involvement through better internal communication.

 Building greater employee commitment to the organization.

 Increasing line management responsibility for HR policies.

 Developing the facilitating role of managers as enablers.

CHARACTERISTICS OF HRM

The characteristics of the HRM concept as they emerged from the writings of the
pioneers and later commentators are that, it is:

 Strategic with an emphasis on integration

 commitment – oriented

 Based on the belief that people should be treated as assets (human capital)

 unitary rather than pluralist, individualist rather than collective in its approach to
employee relations

 a management-driven activity – the delivery of HRM is a line management

responsibility

 focused on business values.

THE STRATEGIC NATURE OF HRM

 The most significant feature of HRM is the importance of strategic integration

which flow’s from the Org. Vision and leadership culture.

One of the common themes of the typical definitions of HRM is that the human
resource policies should be integrated with strategic business planning.

A feature increasingly associated with HRM is a stress on the integration of HR

policies both with one another and with business planning more generally.

The concept locates HRM policy formulation firmly at the strategic level and insist
that the characteristics of HRM is its internally coherent.
THE COMMITMENT-ORRIENTED NATURE OF HRM

The new HRM model is composed of policies that promote mutuality – mutual goals, mutual
influences, mutual respect, mutual rewards and mutual responsibility. The theory is that policies
of mutuality will elicit commitment, which in turn will yield both better economic performance
and greater human development.

 ‘behavioral commitment to pursue agreed goals and attitudinal commitment reflected in a

strong identification with the enterprise’.

 ‘may be tapped most effectively by mutually consistent policies that promote commitment
and which, as a consequence, foster a willingness in employees to act flexibly in the interest
of the “adaptive organization’s” pursuit of excellence’.

At the heart of the concept is the complete identification of employees with the aims and
values of the business - employee involvement but on the company’s terms. Power in the HRM
system remains very firmly in the hands of the employer. Is it really possible to claim full
mutuality when at the end of the day the employer can decide unilaterally to close the company
or sell it to someone else?
PEOPLE AS ‘HUMAN CAPITAL’

People and their collective skills, abilities and experience, coupled with their ability to deploy
these in the interest of the employing organization, are now recognized as making a significant
contribution to organizational success and as a constituting a significant source of competitive
advantage.

UNITARY PHILOSOPHY

The HRM approach to employee relations is basically unitary – it is believed that employees
share the same interests as employees. This contrasts with what could be regarded as the more
realistic pluralist view, which says that all organizations contain a number of interest groups and
that the interests of employees and employers do not necessarily coincide.

INDIVIDUALISTIC

HRM is individualistic in that it emphasizes the importance of maintaining links between the
organization and individual employees in preference to operating through group and
representative system.
HRM AS A MANAGEMENT-DRIVEN ACTIVITY

 ‘As a central, senior management-driven strategic activity that is developed, owned and
delivered by management as a whole to promote the interests of the organization that they
serve’.

 ‘the adoption of HRM is both a product of and a cause of a significant concentration of

power in the hands on management’.

 While the widespread use ‘of the language of HRM, if not its response to the turbulence of
product and financial markets’

 HRM is about the rediscovery of management prerogative.

 ‘The locus of responsibility for people management no longer resides with specialists
managers’
HOW HR MAKES AND IMPACT

Model of link between HRM and performance ( Will discuss the HR scorecard later …)
HOW HR MAKES AN IMPACT

 The development and successful implementation of high performance work practices,

particularly those concerned with job and work design, flexible working, Talent acquisition,
employee development (increasing skills and extending the skill base), reward, and giving
employees a voice.

 The formulation and embedding of a clear vision and the set of values (the big idea)

 The development of a positive psychological contract and means of increasing the

motivation and commitment of employees.

 The formulation and implementation of policies which meet the needs of individuals and
‘create a great place to work’

 The provision of support and advice to line managers on their role in implementing HR
policies and practices.

 The effective management of change.

HRM IN CONTEXT

 CONTIGENCY THEORY – contingency theory tells us that definitions of aims, policies

and strategies, list of activities, and analyses of the role of the HR department are valid
only if they are related to the circumstances of the organization.

 CONTEXTUAL FACTORS – there are three main factors that influence HR policies and
practices: -
 Technology – the technology of the business exerts a major influence on the
internal environment – how the work is organized, managed and carried out.

 Competitive pressures – global competition in mature production and service

sectors is increasing. This is assisted by easily transferable technology and
reductions in international trade barriers.

 Responses affecting people – the responses to the increased use of technology

and to economic and competitive pressures have changed the nature of people
management in number of ways.
THE CHALLENGES TO HRM

Ulrich (1998) suggested that environmental and contextual changes present a number of
competitive challenges to organizations that mean that HR has to be involved in helping to build
new capabilities which compromise:

 globalization, which requires organizations to move people, ideas, products, and

information around the world to meet local needs.

 profitability through growth – the drive for revenue growth means that companies must be
creative and innovative and this means encouraging the free flow of information and shared
learning among employees.

 Intellectual capital – this is the source of competitive advantage for organizations. The
challenge is to ensure that firms have the capability to find, assimilate, compensate and retain
human capital in the shape of the talented individuals they need who can drive a global
organization that is both responsive to its customers and ‘the burgeoning opportunities of
technology’.

 Change, change and more change – the greatest challenge companies face is adjusting to –
indeed, embracing – non-stop change.
Have a great weekend and a very
happy 2015