MBMI 13 HRM-NITT

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MBMI13
AN INTRODUCTION
HRM
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What are the three components of an organisation?

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“Total knowledge, skills, creative abilities, talents and
aptitudes of an organisation’s workforce, as well as the
Meaning of values, attitudes and beliefs of the individuals involved”.

HRM HRM revolves around the core matter of managing relations

at workplace.

Maximise employees’ contributions

to attain optimal productivity and
Ultimate Goal – performance (Macro level)
Attaining individual objectives, goals
and aspirations (Micro level).
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Organisation Skills & Abilities of
HRM
Needs People

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“The policies and practices involved in carrying out the ‘people’ or human resource aspects
of a management position, including recruiting, screening, training, rewarding and
appraising comprises of HRM” (Dessler).
Procure
Maintain COMPETENT WORKFORCE
Develop
  Inherent part of Management
4
 Pervasive at all levels

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 Fundamental to all other functional areas
 People centred.
 Contains several functions related to management of
Nature of people at work
 Manpower planning
HRM  Recruitment and selection
 Placement and training/development
 Appraisal and compensation
 Continuous dynamic process based on human
relations
Scope of hrm 5
 Extends to:

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 All decisions/ strategies/principles/practices/functions/activities/methods related to people as
employees in the organisation
 All dimensions related to people in their employment relationships and the dynamics that flow from
such relationships.
 Broad Areas:
 Human resource planning (HRP)
 Job design
 Selection and staffing
 Training and development
 Organisational development
 Compensation and benefits
 Employee assistance
 Union/Labour relations and compliance
 Human research and information system
Objectives of HR Systems 6

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 Societal Objectives: Socially  Legal
responsible/ Contributing to the compliance/opportunities/union-
society management relations
 Organisational objectives: Assist the  HRP/Employee relations/ Strategic HR,
organisation in meeting its objectives T&D
 Functional objectives: Maintain the  Appraisal/ assessment/compensation
contribution at an appropriate level
adjusting to the needs of the
organisation
 Personnel objectives: Assist the  Training and development/Learning
employees to achieve their opportunities/well-being programs,
personal/professional goals and challenging tasks.
aspirations.
Functions of HRM 7
 A system of interlinked functions within the organisation which are

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constantly affected by external factors.

 STRATEGIC HRM
 HR Effectiveness
 HR Metrics
 HR Technology
 HR Planning
 HR Retention
 EQUAL EMPLOYMENT OPPORTUNITY
 Compliance
 Diversity
 Affirmative Action
 STAFFING 8
 Job Analysis (Job Description & Job Specification)

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 Recruitment
 Selection
 Talent Management & Development
 ORIENTATION
 Training and development
 Career planning
 Performance management
 TOTAL REWARDS
 Compensation and Benefits
 Relational Returns
 RISK MANAGEMENT AND EMPLOYEE PROTECTION 9
 Health and wellness programs
 Safety and security

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 Disaster management and recovery planning

 EMPLOYEE AND LABOUR RELATIONS

 Employee rights and privacy
 HR policies
 Union /management relations
KEY FACTORS INFLUENCING HRM 10

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 Globalisation
 Workforce Diversity
 Changing Technology
 Statutory Obligations/ Govt. Interventions/Trade Unions
 Empowerment of Employees
 Changing nature of Jobs
 Changes in the Organisational Structure
 Mobility of Labour
 Work-Life Balance
EVOLUTION OF HRM 11

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Record Keeping Strategic Partner

 Evolution of HR started with the Industrial revolution.

 First Phase: Focus on improving working and living conditions (Robert Owen, J.S Mill).
Increase in jobs led to new job descriptions, and specifications.
 Second Phase: The first concept of HRM was established as Scientific Management by Taylor
in 1903. Increasing efficiency and productivity through scientific methods.
 Third Phase: Emphasis on labour welfare and industrial psychology (Hugo Münsterberg and
Henry Ford).
 Fourth Phase: Growth of human relations concept (Hawthorne Experiments). Behavioural
sciences era with shift from scientific management to personnel management.
 Modern Phase: Emphasis on human capital/human resource development. Strategic HRM
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MBMI 13 HRM-NITT 12/04/2020

Source: Google Images
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Identify the primary
responsibilities of a
HR Manager.
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Reading Assignment:

https://hbr.org/2020/08/21-hr-jobs-
of-the-future

https://www.shrm.org/resourcesandt
ools/hr-topics/organizational-and-em
ployee-development/pages/viewpoin
t-the-changing-role-of-hr.aspx
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Examine the HR philosophy/policies of
a company you would like to work for
and note down the most thought-
provoking/interesting aspects of the
same.
HRM Approaches 16

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 Hard HRM focuses on the approach and techniques on maximising work
performance and being instrumental to fulfilment of organisational
objectives.
 Focus on the quantitative, calculative and business –strategic aspects of managing
HR in a rational and optimal way
 Rooted from the long-standing capitalist tradition in which worker is regarded as
a commodity.
 Ultimate interest lies in the attainment of organisational objectives.
 Soft HRM is the personal side of HRM which centres on the empowerment,
communication, motivation and other individual considerations.
 Rooted from human-relations school of thought.
 Employee as a valuable asset, a source of competitive advantage through their
commitment, adaptability and high quality
 HR policies cover the principles
and code of conduct governing
Polices are broad guidelines as to Serves as a reference point when
the dealing of various aspects of
how the organisation shall Guidelines on various matters human management practices
people management and set the
function and the objectives related to employment are developed, or decisions
tone for the effective
achieved. made.
administration of personnel
programs.

Provide frameworks for constant

decision making, brings stability Improve organisation Basis for equal and fair treatment
and improve people perception communication of employees.
about the organisation.

HR POLICIES

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HR POLICY GOALS 18
 12 Policy Goals by Caldwell (2004).

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 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 of HR policies, procedures and systems with one another.
 Creating a flatter and more flexible organization capable of responding more quickly to change.
 Encouraging team working and co-operation across internal organizational boundaries.
 Creating a strong customer-first philosophy throughout the organization.
 Empowering employees to manage their own self-development and learning.
 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.
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Is it Employee first
and Customer
second for modern
organisations?
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 Originated Policies: Set by the top management

Types of in alignment with the core objectives on various
aspects of organisation.
Policies  Appealed Policies: Formulated on a contingency
basis to fulfil the requirements of unusual
situations. Appeals are made to the top
management when the existing policies to not
guide in the decision making
 Imposed Policies: Formed due to the pressure
from external agencies like government,
legislations, trade associations and unions.
 General/Specific Policies
 Written and Implied Policies

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Role of HR Manager 21

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 Classification of Roles
Strategic
Administrative Aligning with the
Personnel practices org/business strategy
Legal Strategic planning and
compliance/paperwork retention
HR effectiveness

Operative
Managing employee
relations
Employee advocate

Source: R.L Mathis and J. H. Jackson (2010)

VINDICATING THE ROLE OF HRM 22

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 Establishing a clear link between HRM Practices and organisational performance
 “Do HR practices make a positive impact on the organisational performance?”
 “If yes, how is the impact achieved?”
 Findings:
 Firms with high commitment strategy had higher levels of productivity and quality
 Productivity greatly influenced by motivation; financial performance linked to employee skills and
motivation.
 Firms with high values on index had economically and statistically higher levels of performance.
 Number of HR practices and workforce coverage as a differentiating factor between more and less
successful firms.
 More the HR practices in the organisation higher levels of commitment and contribution from
employees.
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https://www.shrm.org/hr-tod
ay/news/hr-news/pages/top-
10-workplace-trends-for-201
9.aspx

https://www.greatplacetowor
k.com/resources/blog/why-
strategic-hr-matters-and-
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MBMI 13 HRM-NITT
REVIEW QUESTIONS 24
 Discuss the role of HRM in retrospect and prospect.

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 Critically examine the key factors influencing HRM today
 Cite reasons for considering HRM as a strategic activity.
 What is Hard and Soft HRM? Which approach is deemed to be the best?
 State the need for clear HR policies in an organisation.
 Analyse the different roles of a HR manager with examples.