INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT
Human Resource
Management
Human Resource
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Human Resource
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Human Resource
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Human Resource
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Human Resource
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Importance of HRM

1.Attract and retain talent

2.Train people for challenging roles
3.Develop skills and competencies
4.Promote team spirit
5.Develop loyalty and commitment
Importance of HRM

5. Develop loyalty and commitment

6.Increase productivity and profits
7.Improve job satisfaction
8.Enhance standard of living
9.Generate employment
opportunity
10.Greater trust and respect
Objectives of HRM
1. To help the organization reach its goal
2. To employ the skills and abilities of the
workforce efficiently
3. To provide the organization with well
trained and well motivated employees
4. To increase employees job satisfaction
and self actualization (stimulate
employees to realize their potential)
5. To develop and maintain a quality of
work life.
Objectives of HRM 6. To communicate HR policies to all
employees.
7. To be ethically and socially responsive to the
needs of the society(ensuring compliance
with legal and ethical standards)
8. To provide an opportunity for expression
and voice in management
9. To provide fair, acceptable and efficient
leadership
10.To establish sound organizational structure
and desirable working relationships.
Scope of HRM 1. Human resource planning-fill various
position
2. Recruitment and Selection- develop a
pool(team) of candidates
3. Job Design: define task, assign authority
and responsibility
4. Training and Development- helps in
developing key competencies
5. Appraisal of performance-systematic
assessment and evaluation of workforce
Scope of HRM 6. Motivation of workforce- develop
enthusiastic workforce
7. Remuneration of employees-focuses on
fair, consistent and equitable compensation
8. Social security and Welfare of
employees-working conditions, transport,
medical assistance etc.,
9. Review and audit of personnel policies-
ensures reliable HR policies
10. Labor relation- ensures healthy union
mgt. relationship e.g.: settlement of dispute
Nature of HRM
1. Inherent part of management- selecting
people, training, motivating, appraising their
performance for improving their quality.
2. Pervasive function - present in all levels of
management in an organization
3. Action oriented - solve problem through
rational(balanced) policies rather than
record keeping
4. People oriented- Assign jobs, produce
results, reward, motivate them towards
improvements in productivity
5. Future oriented- Effective HRM helps
organization meet its goals
Nature of HRM 6. Development oriented: develops full potential of
employees through reward, training, job rotation.
7. Integrating mechanism: maintains cordial relationship
between people working at various levels in
organization.
8. Comprehensive function: Workforce signifies people
working at all levels, HRM differs with form & shape but
the basic objective of effective utilization of human
resource remains the same.
9. Continuous function: it requires constant awareness
and alertness of human relations in every day operation.
10.Based on human relation: Every person has
different need, perception and expectations. The
manager should give due attention to these factors.
 Principles of Human
Resource Management  Building a powerful human
resource strategy requires solid
facts, measures, and processes for
discerning where the firm will get
the most leverage from its people.
 Recent technological advances
have been the catalysts for the
emergence of new approaches to
human resource management.
 Taking advantage of the
observations and records of actual
events maintained in your
company’s HR information
systems helps you discern how
your organization and human
capital strategies have been
working for or against each other.
Principles of Human
Resource
Management  View your human capital as a value-
producing asset.

 New management tools now exists to

help you analyze how key outcomes such
as productivity are affected over time by
human resource attributes and practices.
These tools help you predict the return
on your human capital investments.
 Identifying and focusing on what’s
important will drive value.
Functions of HRM - 1

Managerial

Planning Organizing Staffing Directing Controlling

Functions of HRM - 2
Operational

Employment HR Development Compensation Mgt Employee Relations

Performance
HR Planning Job Evaluation
Appraisal

Recruitment Training Wage and Salary Admn

Management
Selection Incentives
Development

Career Planning and

Placement Bonus
Development

Induction Fringe Benefits

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 HUMAN RESOURCE PLANNING

Organizational objectives

Human resource
planning
Forecasting human Forecasting supply of
needs human resource

Identification of
human resource gap
Surplus human Shortage of human
resource resource

Action plans for

bridging gap
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A. Objective of HRP- fitting employee abilities to enterprise
requirements
B. Estimating future organizational structure & manpower
requirement- The mg must estimate the number & types of
employees (age, experience, qualification, salary range)required
in future by analyzing growth, expansion, structural changes .
C. Manpower Audit- Skill inventory
EXPERIENCE & ADD INF
EDUCATION &
PERSONAL SKILLS Salary grade
TRAINING
FACTORS Job areas Disciplinary
School
Name Job titles record
Degree
Age Special skills Career plans
Academic excellence
Marital Lang Appraisal data
Training
status known Test results
achieved
Reason for
D. Job Analysis: job description-job summary, Duties performed, Machine ,
leaving
Training, Job tools ,materials , working conditions
evaluation,
Job specification- what kind of person to recruit & for what
Performance App,
qualities that person should be tested. Physical character,
Career Dev, Induction,
Psychological character, personal character, responsibility,
Counseling, labor relat
demographic nature
E.Developing human resource plan-Implementation of findings
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 SELECTION STEPS- series of
hurdles
• Reception-(a co. create favorable impression from stage of
STEP 1
reception)
• Screening Interview-(Preliminary interview cuts the cost, allow
STEP 2
only eligible candidates to go through further stages)

STEP 3
• Application Blank- (brief history sheet of employees background)

• Selection Tests-1.Intelligent test 2. Aptitude, 3.Personality

STEP 4
4.Achievement Tests 5. Simulation test 6.Assessment centre 7.
Graphology test 8. Polygraph (lie detector) 9.Integrity test

STEP 5
• Selection Interview- oral examination
STEP 6
• Medical Examination- reveals Physical fitness

STEP 7
• Reference checks-personnel department check applicants
previous job performance through references given.
STEP 8
• Hiring Decision- final decision whether to select or reject a candidate.
Human Resource
Management
 SELECTION
TEST ability
1. Intelligent test [mental ability]- numerical
2.Aptitude tests[potential to learn skills]- mathematical
3.Personality tests-
(a) Projective tests[interpret problem],
(b) Interest tests[idea to know peoples area of
interest],
( c)Preference test[people differ in preference for
achievement]
4. Achievement Tests[ proficiency know-how test]-short
hand
5. Simulation test[assess potential of employees by
making them solve problem]
6. Assessment centre[in a separate room employees are
assessed through multiple
assessors]
(a)The in-basket [candidates are asked to act in limited periods with the files & notes
given]
(b)Leaderless group discussion[to examine interaction as a group]
(c )Business game[how to advertise, market, penetrate market]
(d) Individual presentation[ plan, organize on assigned topic]
(e) Structured Interview[series of questions aimed at participant]
Human Resource Kinds of Interview
Management 1. Preliminary interview- screening of applicants this
afford him freedom to decide whether the job will suit
him.

2. The non directive interview- recruiter asks questions

that comes to mind. This allows applicant to talk freely.

3. The directive or structured interview- recruiters use

predetermined set of questions and comparison are
made among applicants.

4. The situational interview- Applicant is given a

hypothetical (imaginary) incident and asked to respond
to it
Human Resource Kinds of Interview
Management
5. The behavioral interview - focuses on actual
work incidents. The applicant must reveal what
he/she do in given situation.
6. Stress interview- Interviewer attempts to find
out how applicant respond to aggressive,
embarrassing, rude and insulting questions.
7. Panel interview- the applicant meets 3-5
interviewers who takes turns in asking questions.
The panel members can ask new and incisive
(penetrating) question based on their expertise
and experience and elicit (draw out) deeper &
meaningful responses from candidates.
Human Resource Errors in Interviewing
Management
• The Halo effect- The interview should assess the
whole of candidate’s personality and should not be
led away by any one trait or achievement.
• Leniency (mercy)- When a candidate is rated by 2
raters, their rating may be different. One with high score
& other with low score which results in error.
• Projection- interviewer expects his own qualities , skills,
opinions, values as he resembles his age , voice &
background.
• Stereotyping- This error arises when interviewer have
already forms mental association between particular
community, culture, origin. This is an undesirable quality
of an interviewer.
 PLACEMENT
• Placement is an important human resource
activity
• Placement is the actual posting of an employee
to a specific job
• It involves assigning a specific task and
responsibility to an employee.
• Placement decision are taken after matching
requirement of job with qualification of
candidates.
• Organization put new recruits on probation
period & closely monitored.
Employment Legislation
Employment Legislation
• Increasingly
important aspect
of the HRM role
• Wide range
of areas
for
attention
Adds
• of theto the
business
cost
 Discrimination
• Crucial aspects
of
employment
legislation:
– Race
– Gender
– Disability

Disability is no longer an issue for employers

to ignore, they must take reasonable steps
to accommodate and recruit disabled
workers.
 http://www.bized.co.uk

Discipline • Firms cannot just ‘sack’

workers
• Wide range of procedures and
steps in dealing with
workplace conflict
– Informal meetings
– Formal meetings
– Verbal warnings
– Written warnings
– Grievance procedures
– Working with external agencies
Development • Developing the
employee can be
regarded as investing in
a valuable asset
– A source of motivation
– A source of helping the
employee fulfil potential
Training  Similar to development:
– Provides new skills for the
employee
– Keeps the employee up
to date with changes in
the field
– Aims to improve
efficiency
– Can be external or ‘in-
house’
Rewards Systems  The system of pay and
benefits used by the firm
to reward workers
 Money not the only
method
 Fringe benefits
 Flexibility at work
 Holidays, etc.
Labor Unions  Importance of building
relationships with employee
representatives

 Role of unions has changed

 Importance of consultation
and negotiation and working
with labor unions

 Contributes to smooth
change management and
leadership
Productivity • Measuring performance:
• How to value the workers
contribution
• Difficulty in measuring some types
of output – especially in the service
industry
• Appraisal
– Meant to be non-judgmental
– Involves the worker and a nominated
appraiser
– Agreeing strengths, weaknesses and
ways forward to help both employee
and organization
ROLE OF HR
EXECUTIVES

 Service provider

 Executive

 Facilitator

 Consultant

 Auditor
Role and
Responsibility of HR
professionals in
changing Environment
 Focus on strategic HR issues
 Proactive action
 Developing integrated HR
system
 Working as Change agent
 Marketing HR potential
 Outsourcing HR functions
Role and
Responsibility of HR • Focus on strategic HR issues: Issues have to be
professionals in identified and dealt with adequately. It will act as an in-build
advantage
changing Environment • Proactive action: not on reactive basis. Putting action in
practice before an issue arises.
• Developing integrated HR system: Well balanced
system without lack of coherence (unity) in function
• Working as Change agent: must perceive need
for change and initiate it. HR professionals must play an
active role.
• Marketing HR potential: must have ability to
prove
• their contribution to enterprise
• Outsourcing HR functions: business instructs
an
• external supplier to take responsibility (and risk)
• for HR functions.
Qualities of HR
Manager 1. Physical- health, vigor (energy, strength), address
2. Mental- ability to understand, learn, judge &
adaptable
3. Moral – firmness, responsible, initiative, loyal, dignity
(self respect)
4. Educational- subject knowledge about function
performed
5. Technical- peculiar knowledge on function
6. Experience – arising from work proper (Henry Fayol)
OTHERS:
•Alert mentally, competent to take quick
decision, honesty & integrity, patience, good
leader, socially responsible, good
communicator, courteous (well mannered)
Challenges of HRM

• Individuals differ from

one another
• Customization of
stimulation and
motivation
• Demanding
personnel
Challenges to HR Professionals

• Worker productivity
• Quality improvement
• The changing attitudes of workforce
• The impact of the government
• Quality of work-life
• Technology and Training
Emerging role of • Value of Human Resource
HRM • Competitive advantage
• Human Resource
Accounting – It is
measurement of the cost and
value of people for an
organization