Human Resource Management

Module- 1

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 Scheme of Internal Evaluation

Assessment Criteria Marks

Tests (Avg of two test) 25

Quiz 10
Attendance 5

Presentation 5
Class participation 5
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 Indicative Content
Human Resource Management-
• Introduction
• Nature
• scope
• Evolution
• PM v/s HRM
• Features
• Functions
• Objectives
• Factors Influencing HRM
• Strategic HRM
• Policies, Practices, Programs, Procedures
• HR manger- Role, Quality, Strategic Partner
• Line & Staff Responsibility
• Opportunities & Challenges in HRM
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 Main Learning Outcomes
• On successful completion of the module, you will be able to:
• To understand and explain the implications of managing people
at work.
• To understand and explain the nature of human resource
management as a distinctive approach to people management.
• To understand the challenges of human resource management.
• To understand the HRM contribution to Strategic Management.
• To understand and explain the changing context of people
management.
• To understand how can HR influence firm
performance?
• To understand how can HR cope with
workplace changes and trends?
• To understand what are the HR strategies that
help a firm achieve competitive
advantage?
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 Introduction to HRM
• Human resource (HR) management refers to
the practices and policies you need to carry
out the personnel aspects of your
management job, specifically, acquiring,
training, appraising, rewarding, and providing
a safe and fair environment for your
company’s employees

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 Changing Environment of HRM
• Globalization refers to the tendency of firms
to extend their sales, ownership, and/or
manufacturing to new markets abroad
• Technological Advances
• Nature of Work
• Growing emphasis on “knowledge workers”
and human capital.

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 Meaning Of HRM
• Human resource management means
employing people, developing their resources,
utilizing, maintaining and compensating their
services in tune with the job & organizational
requirements.

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 Definition Of HRM
• According to Flippo, human resource is “the
planning, organizing, directing and controlling
of the procurement, developing,
compensation, integration, maintenance and
reproduction of human resources to the end
that individual, organizational and societal
objectives are accomplished.

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 Nature Of HRM
• People who manage organization
• Application of management functions &
principles
• Does not confined to business establishments
only

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 Scope Of HRM
Nature of HRM

Prospects
Employee hiring
of HRM

Human
Resource
management Employee &
Industrial
executive
Relations
remuneration

Employee Employee
Maintenance motivation

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 Evolution Of HRM

Scientific
Industrial Industrial
Management Paternalistic Era
Revolution Era Psychology Era
Era

Personnel Behavioral Human

Specialist Era Science Era Relations Era

Stages In The Evolution Of Human Resource Management

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 Difference B/W Personnel Management & HRM
Personnel Management Human Resource Management
Management of people employed Management of employees skills,
knowledge, aptitude etc

Treated as economic man Social and psychological man

Used for organizational benefit Used for multiple mutual benefit

Treated as cost centre Treated as profit centre

Function is treated as only Strategic management function
auxiliary
Viewed as commodity Viewed as resource
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 Features Of HRM
• People oriented
• Comprehensive function
• Individual oriented
• Continuous function
• A staff function
• Pervasive function
• Challenging function
• Development oriented
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 Functions Of HRM
1. Managerial functions
• Planning
• Organizing
• Directing
• controlling
2. Operative functions
• Employment- Job Analysis, HRP, Recruitment, selection,
placement
• HRD- PA, training, Management development, career
planning
• Compensation- job evaluation, wage & salary administration,
incentives, bonus, fringe benefits, social security measures,
• Human relations
• Effectiveness of HRM- organizational health, HR Accounting,
HR Audit, HR Research.

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 Objectives Of HRM
• Organizational objectives
• Functional objectives
• Personal objectives
• Other objectives

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 Policies, Procedures & Programs
• A set of proposals and actions that act as a reference
point for managers in their dealings with employees
– Brewster and Richbell
• A well thought out course of action. It prescribes the
specific manner in which a piece of work is to be done.
• Personnel programs are complex set 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. Programs are aids to policy.

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 Need for HRM Policies

• Favoritism and discrimination

• Standards of performance

• Employee enthusiasm and loyalty

 Advantages of HRM Policies
• Delegation
• Uniformity
• Better control
• Standards of Efficiency
• Confidence
• Speedy Decision
• Co- ordinating Devices
 Characteristics of a sound HRM Policy
• Related to Objectives
• Easy to understand
• Precise
• Stable as well as flexible
• Based on facts
• Appropriate number
• Reasonable
• Review
 Line Responsibility & Staff Function
• Line manager’s responsibility – to attain
effectives goals of their respective
departments by the proper management of
4M’s.
• Staff function - Personnel managers performs
various functions of personnel management,
viz, employment, training, development, wage
& salary administration, motivation, grievance
redressal, workers participation in
management, collective bargaining etc..

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 Role Of HR Manager
• The conscience role
• The counselor
• The mediator
• The spokesman
• The problem solver
• The change agent
• Personnel role
• Welfare role
• Clerical role
• Fire fighting legal role
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 Qualities Of HR Manager
• Personal attributes
- Intelligence
- Education skills
- Discriminating skills
- Executive skills
- Experience and training
- Professional attitudes
- Qualification
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 Strategic HRM

• The linking of HRM with strategic goals and

objectives in order to improve business
performance and develop organizational
cultures that foster innovation and flexibility

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 HR Manager as a Strategic Partner
 HR is a legitimate business unit
 Highly strategic in nature
 Critical to achieving corporate objectives
 Determine workforce capabilities
 HR managers must forge strategic partnerships
 HR executives must understand the total
organization

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 Factors Influencing HRM
• Technological innovation
• Economic factors
• Employee’s organizations
• Labor markets
• Changing demand of employers
• Legal factors
• Human resource in the country

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 Opportunities & Challenges In HRM
Key HR Challenges for Today’s Managers:
Environmental -
• Rapid change
• Workforce diversity
• Globalization
• Internet revolution
• Legislation
• Evolving work and family roles
• Skill Shortages
• Rise of the service sector
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 Conti…….
Organizational –
• Quality, distinctive capabilities
• Decentralization
• Downsizing
• Organizational restructuring
• Self-managed work teams
• Technology
• Outsourcing

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 Conti…..
Cultural –
• Basic assumptions and beliefs shared by
members of an organization…
» rules, norms
» behaviors
» philosophy
» dominant values
» feeling or climate

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 Indicative Content
Human Resource Management-
• Introduction
• Nature
• scope
• Evolution
• PM v/s HRM
• Features
• Functions
• Objectives
• Factors Influencing HRM
• Strategic HRM
• Policies, Practices, Programs, Procedures
• HR manger- Role, Quality, Strategic Partner
• Line & Staff Responsibility
• Opportunities & Challenges in HRM
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