HUMAN RESOURCE

MANAGEMENT
Sahera Fatima
 HUMAN RESOURCE MANAGEMENT

UNIT 1: INTRODUCTION TO HRM AND ENVIRONMENT

UNIT 2: ACQUIRING HUMAN RESOURCES

UNIT 3: DEVELOPING HUMAN RESOURCES

UNIT 4: LABOUR MANAGEMENT

UNIT 5: REWARDING HUMAN RESOURCES

 UNIT 1
INTRODUCTION TO HRM AND ENVIRONMENT
 Introduction, meaning, definition, objectives and
importance

 FUNCTIONS OF HRM

 PERSONNEL MANAGEMENT VS HRM

 STRATEGIC MANAGEMENT APPROACH

 ROLE OF GLOBALIZATION IN HR POLICY AND PRACTICE

HUMAN RESOURCE MANAGEMENT

HUMAN: refers to the skilled workforce in organization.

RESOURCE: refers to limited availability or scarce.

MANAGEMENT: refers  how to optimize  and make best use of such

limited and a scarce resource so as to meet the organization goals and
objectives.
 Great Quotations on human resource

“You must treat your employees with respect and dignity because in the
most automated factory in the world, you need the power of human
mind. That is what brings in innovation. If you want high quality minds to
work for you, then you must protect the respect and dignity. “

Mr. N.R. Narayana Murthy, Chairman Emeritus, Infosys Ltd.

“Our progress as a nation can be no swifter than our progress in

education. The human mind is our fundamental resource.”
- John F. Kennedy (35th President of
the United States).
INTRODUCTION

Behind production of every product or service there is a human mind,

effort and man hours (working hours). No product or service can be

produced without the help of human being. Human being is

fundamental resource for making or construction of anything

Among the five M’s of management, i.e., men, money, machines,

materials, and methods, HRM deals about the first M, which is men.

It is believed that in the five M’s, "men" are not so easy to manage. This

may be so because among the five, "every man is different from other"

and they are totally different from the other M’s in the sense that men

possess the power to manipulate the other Ms. Whereas, the other M’s

are either lifeless or abstract and as such, do not have the power to

think and decide what is good for them. 

 DEFINITION

Edwin Flippo defines-
HRM as “planning, organizing, directing, controlling of procurement,

development, compensation, integration , maintenance and separation of

human resources to the end that individual, organizational and social

objectives are achieved.’’

According to Invancevich and Glueck,

“HRM is concerned with the most effective use of people to achieve

organizational and individual goals.”

Meaning:
Human Resource Management is the process of recruitment and selecting

employee, providing orientation and induction, training and development ,

assessment of employee (performance appraisal), providing compensation

and benefits, motivating, maintaining proper relations with employees and

with trade unions, maintaining employees safety, welfare and healthy

measures in compliance with labour laws of the land.

 ORGANIZATIONAL
OBJECTIVES

OBJECTIVES
SOCIETAL
OBJECTIVES OF FUNCTIONAL
OBJECTIVES

HRM

PERSONAL
OBJECTIVES
https://www.youtube.com/watch?
v=FRsJbpppvEU
Societal Objectives: To be ethically and socially responsible to the needs
and challenges of the society while minimizing the negative impact of
such demands upon the organization. The failure of organizations to use
their resources for the society’s benefit in ethical ways may lead to
restrictions. For example, the society may limit HR decisions through
laws that enforce reservation in hiring and laws that address
discrimination, safety or other such areas of societal concern.

Organizational objectives: To recognize the role of HRM in bringing

about organizational effectiveness. HRM is not an end in itself. It is only a
means to assist the organization with its primary objectives. Simply
stated, the department exists to serve the rest the organization.
Functional Objectives: To maintain the department’s contribution at a
level appropriate to the organization’s needs. Resources are wasted when
HRM is either more or less sophisticated to suit the organization’s demand.
The department’s level of service must be tailored to fit the organization it
serves.             
    
Personal objectives: To assist employee in achieving their personal goals,
at least insofar as these goals enhance the individual’s contribution to the
organization. Personal objectives of employees must be met if workers are
to be maintained, retained and motivated. Otherwise, employee
performance and satisfaction may decline and employees may leave the
organization.
IMPORTANCE OR SIGNIFICANCE OF HRM
• Objective
• Facilitates professional growth
• Better relations between union and
management

• Helps an individual to work in a

team/group
• Identifies person for the future

• Allocating the jobs to the right

person at the right time.
 IMPORTANCE OR SIGNIFICANCE OF HRM
Human Resource Management becomes significant for business organization
due to the following reasons.

 Objective :- Human Resource Management helps a company to achieve its

objective from time to time by creating a positive attitude among
workers. Reducing wastage and making maximum use of resources etc.

 Facilitates professional growth :- Due to proper Human Resource

policies employees are trained well and this makes them ready for future
promotions. Their talent can be utilized not only in the company in which
they are currently working but also in other companies which the
employees may join in future.
 Better relations between union and management :

Healthy Human Resource Management practices can help the

organization maintain cordial relationship with the unions. Union

members start realizing that the company is also interested in the

workers and will not go against them, therefore chances of going on

strike are greatly reduced.

 Helps an individual to work in a team/group

Effective Human Resource practices teach individuals team work and

adjustment. Once learnt, the individuals get very comfortable while

working in team thus team work improves.

Identifies person for the future :
Since employees are constantly trained, they are ready to meet the job
requirements. The company is also able to identify potential employees
who can be promoted in the future for the top level jobs. Thus one of the
advantages of HRM is preparing people for the future.

Allocating the jobs to the right person :

If proper recruitment and selection methods are followed, the company
will be able to select the right people for the right job. When this happens
the number of people leaving the job will reduce as they will be satisfied
with their job leading to decrease in labour turnover.
 FUNCTIONS OF HR
MANAGEMENT

MANAGERIAL OPERATIVE
PROCUREMENT
PLANNING
DEVELOPMENT

ORGANIZING COMPENSATION

MAINTAINING

DIRECTING RECORD KEEPING

PERSONNEL PLANNING AND

EVALUATION
CONTROLLING
MANAGERIAL FUNCTIONS
1.PLANNING
The planning function of human resource department pertains to the steps
taken in determining in advance personnel requirements, personnel
programmes, policies etc. After determining how many and what type of
people are required, a personnel manager has to devise ways and means
to motivate them.
2. Organizing :
Under organization, the human resource manager has to organize the
operative functions by designing structure of relationship among jobs,
personnel and physical factors in such a way so as to have maximum
contribution towards organizational objectives.
In this way a personnel manager performs following functions :

(a) preparation of task force;

(b) allocation of work to individuals;
(c) integration of the efforts of the task force;
(d) coordination of work of individual with that of the department.
3. Directing :
Directing is concerned with initiation of organized action and stimulating

the people to work. The personnel manager directs the activities of people

of the organization to get its function performed properly. A personnel

manager guides and motivates the staff of the organization to follow the

path laid down in advance.

4. Controlling :
It provides basic data for establishing standards, makes job analysis and

performance appraisal, etc. All these techniques assist in effective control

of the qualities, time and efforts of workers.

OPERATIVE FUNCTIONS

1.Procurement of Personnel :
It is concerned with the obtaining of the proper kind and number of
personnel necessary to accomplish organization goals. It deals specifically
with such subjects as the determination of manpower requirements, their
recruitment, selecting, placement and orientation, etc.

2. Development of Personnel :
Development has to do with the enhancement of skills through training,
that is necessary for proper job performance. In this process various
techniques of training are used to develop the employees. Framing a sound
promotion policy, determination of the basis of promotion and making
performance appraisal are the elements of personnel development
function.
3. Compensation to Personnel :

Compensation means determination of adequate and equitable

remuneration of personnel for their contribution to organization

objectives. To determine the monetary compensation for various jobs is

one of the most difficult and important function of the personnel

management. A number of decisions are taken into the function, viz.,

job-evaluation, remuneration, policy, inventive and premium plans,

bonus policy and co-partnership, etc. It also assists the organization for

adopting the suitable wages and salaries, policy and payment of wages

and salaries in right time.

4. Maintaining Good Industrial Relation :

Human Resource Management covers a wide field. It is intended to reduce

strife's, promote industrial peace, provide fair deal to workers and

establish industrial democracy. If the personnel manager is unable to

make harmonious relations between management and labour industrial

unrest will take place and millions of man-days will be lost. If labour

management relations are not good the moral and physical condition of

the employee will suffer, and it will be a loss to an organization vis-a-visa

nation. Hence, the personnel manager must create harmonious relations

with the help of sufficient communication system and co-partnership.

5. Record Keeping
In record-keeping the personnel manager collects and maintains
information concerned with the staff of the organization. It is essential for
every organization because it assists the management in decision making
such as in promotions.

6. Personnel Planning and Evaluation

Under this system different types of activities are evaluated such as

evaluation of performance, personnel policy of an organization and its
practices, personnel audit, morale, survey and performance appraisal, etc
 Personnel management vs HRM

Personnel Management - Personnel Management is

basically an administrative record-keeping function, at the operational

level. Personnel Management attempts to maintain fair terms and

conditions of employment, while at the same time, efficiently

managing personnel activities for individual departments etc. It is

assumed that the outcomes from providing justice and achieving

efficiency in the management of personnel activities will result

ultimately in achieving organizational success.

Human resource management is concerned with the development and
implementation of people strategies, which are integrated with corporate
strategies, and ensures that the culture, values and structure of the
organization, and the quality, motivation and commitment of its members
contribute fully to the achievement of its goals.

HRM is concerned with carrying out the same functional activities

traditionally performed by the personnel function, such as HR planning,
job analysis, recruitment and selection, employee relations, performance
management, employee appraisals, compensation management, training
and development etc. But, the HRM approach performs these functions in
a qualitatively distinct way, when compared with personnel management.
 
 Personnel Management Human Resource
Management
•Personnel means persons employed. •HRM is the management of employee’s
Personnel management is the management skills, knowledge, abilities, talents,
of people employed. aptitudes, creative abilities etc.

•Employee in personnel management is •Employee in HRM is treated not only as

mostly treated as an economic man as his economic man but also as social and
services are exchanged for wage/salary psychological man. Thus the complete man
is viewed under this approach.
•Employee is viewed as a commodity or tool
or equipment which can be purchased and •Employee is treated as a resource.
used.
•Employees are treated as a profit centre
•Employees are treated as cost centre and and therefore , invests capital for human
therefore management controls the cost of resource development and future utility.
labor.
•Employees are used for the multiple mutual
•Employees are used mostly for benefit of the organization, employees and
organizational benefit. their family members.

•Personnel function is treated as only an •HRM is a strategic management function.

auxiliary.
•Viewed as a modern concept.
•Viewed as a traditional concept.
 STRATEGIC MANAGEMENT APPROACH
Strategic Human Resource Management is made up of two terms i.e.
Strategy and Human Resource Management. Strategy is a
multidimensional concept which is meant to utilize the resources in the
best manner. Human Resource Management deals with all the aspects
of human resource and utilizing it to the utmost level. Thus, SHRM
means strategically utilizing the human resource management. Thus,
SHRM is the modern concept of Human Resource Management.

MEANING:
SHRM can be defined as linking the human resources with strategic
goals and objectives of the organization in order to improve the overall
business of the organization.
Strategic HR is a long term direction of the HR function in an
organization. It describes the best options suitable to an organization
for managing its human resources in line with the available systems and
processes, resources and the environment.
 DEFINITION

“Strategic HRM is the pattern of planned human resource development

and activities intended to enable the organization to achieve its goals”.

-Wright and Mcmohan

Features of Strategic Human Resource Management

The key features of SHRM are as follows:-

A. There is a relation between HR policies and practices and the overall

goals of the organization.

B. It gives importance to HR interventions so that the problems and

disputes arising within the organization can be easily sorted out.

C. Many of the responsibilities of the top management are devolved down

the line.
STRATEGIC HRM PROCESS
2.Identify sources
of competitive
advantage

1.Scanning the 3.Identify HRM

environment strategies

4.Implementing
5.Monitor and HR strategies
evaluation
1.Scanning the Environment: The process begins with the
scanning of the environment, i.e. both the external and internal factors
of the organization. The external environment encompasses the political,
legal, technological, economic, social and cultural forces that have a
great impact on the functioning of the business. The internal factors
include the organizational culture, hierarchy, business processes, SWOT
analysis, industrial relations, etc. that play a crucial role in performing
the business operations.
The role of the HR department is to collect all the information about the
immediate competitors – their strategies, vision, mission, strengths, and
weaknesses. This can be done through the resumes being sent by the
candidates working with the other rivalry firm. Through these, HR
professionals can identify the workforce, work culture, skills of the staff,
compensation levels, reasons for exit and other relevant information
about the competing firm.
2.Identify Sources of Competitive Advantage: The

next step in the strategic human resource management process is to

identify the parameters of competitive advantage that could stem from

diverse sources as product quality, price, customer service, brand

positioning, delivery, etc.

The HR department can help in gaining the competitive advantage by

conducting the efficient training programmes designed to enrich the

skills of the staff.

3.Identify HRM Strategies: There are four strategies
undertaken by an organization to enrich the employees capabilities:

a) Learning as Socialization: This strategy includes the techniques as

training courses, coaching sessions, education programmes to ensure
that the employees abide by the rules, values and beliefs of an organization
and are able to meet the performance targets.

b) Devolved (cascaded) Informal Learning: This strategy helps in making

the employees aware of the learning opportunities and the career
development.

c) Engineering: This strategy focuses on creating and developing

communities of practice and social networks within and outside the
organization.

d) Empowered Informal Learning: Through this strategy, the HR

department focuses on developing the learning environment such as
knowledge about the new processes, designing of new work areas and the
provision of shared spaces.
4.Implementing HR Strategies:
Once the strategy has been decided, the next step is to put it into the
action. The HR strategy can be implemented by considering the HR
policies, plans, actions and practices.

5.Monitor and Evaluation:

The final step in the strategic human resource management process is
to compare the performance of the HR strategy against the pre-
established standards.

At this stage, certain activities are performed to evaluate the outcomes

of the strategic decision: establishing the performance targets and
tolerance levels, analyzing the deviations, executing the modifications.
Benefits of SHRM

i. It helps in finding the threats and opportunities of the organization

which can bring success to the organization.

ii. It helps in building a clear business strategy.

iii. It emphasizes on employee recruitment, retention and motivating

them.

iv. To have a close eye on the performance of the employees and provide

training and development to them

v. To attain high productivity

vi. To meet the expectations of customers effectively

Role of globalization in HR policy
and practice
Globalization symbolizes free flow of technology and human resources
across national boundaries presenting an ever-changing and competitive
business environment. Globalization is a process that is drawing people
together from all nations of the world into a single community linked by the
vast network of communication technologies. This aspect of globalization
has also affected the HRM in the business world of today. HR managers
today don’t need to rely in a small limited market to find the right
employees needed to meet the global challenge, but today they can recruit
the employees from around the world. The future success of any
organizations relies on the ability to manage a diverse body of talent that
can bring innovative ideas, perspectives and views to their work. Thus, an
HR manager needs to be mindful and may employ a ‘Think Global, Act
Local’ approach in most circumstances.
The impact of globalization on HRM is as follows:

MANAGING
CULTURAL
DIVERSITY

COPING WITH FLEXIBLE

WORKING HOURS CHALLENGES MANAGING EXPATRIATES

DIFFERENCE
IN
EMPLOYMENT
LAWS
MANAGING CULTURAL DIVERSITY
Managing different employees from different cultures in the same
organization is a complex activity. Employees from each country think
differently, perceptions are different towards work culture, the languages
change, vocabulary differs and even non verbal communications are quite
different from each region. This makes the task of the human resource
department challenging due to globalization.

MANAGING EXPATRIATES
Preparing the home country employees to work in a different country is
a herculean task. The beliefs, value system, culture, attitude are
diverse in nature. Recruiting, retaining and motivating expatriates have
a major impact on the business. Understanding expatriate’s need is a
prime concern for the human resource team.

DIFFERENCE IN EMPLOYMENT LAWS

The employment laws or the labour laws differ from one country to
another. The understanding of not only the monetary benefits becomes
essential but also the non monetary benefits such as leaves, flexi timings
are important to be included in the human resource policy.
 COPING WITH FLEXIBLE WORKING HOURS

The practice of flexible working hours has emerged as one of the retention

initiative of workforce specially women employees who can maintain the

work life balance. This practice of flexible working hours is result of

working beyond normal time zones. Organizations which have a global

presence need the attention of employees at various time zones which is

not possible for all employees doing a continuous shift. Hence this practice

emerged from globalization and has a positive impact on the HRM

practice.
STAFFING APPROACHES IN GLOBALIZATION

 ETHNOCENTRIC APPROACH

 POLYCENTRIC APPROACH

 REGIOCENTRIC APPROACH

 GEOCENTRIC APPROACH
 ETHNOCENTRIC APPROACH

In Ethnocentric Approach, the key positions in the organization are

filled with the employees of the parent country. All the
managerial decisions viz. Mission, vision, objectives are
formulated by the MNC’s at their headquarters, and the same is to
be followed by the host company
POLYCENTRIC APPROACH

In Polycentric Approach, the nationals of the host country are

recruited for the managerial positions to carry out the operations
of the subsidiary company. The rationale behind this approach is
that the locals of the host country know their culture better and
can run the business more efficiently as compared to their
foreign counterparts.
REGIOCENTRIC APPROACH

The Regiocentric Approach is an international recruitment

method wherein the managers are selected from different
countries lying within the geographic region of business.

In other words, the managers are selected from within the

region of the world that closely resembles the host country.
GEOCENTRIC APPROACH

The Geocentric Approach is a method of international recruitment where

the MNC’s hire the most suitable person for the job irrespective of their
Nationality.
The rationale behind the Geocentric Approach is that the world is a pool
of talented staff and the most eligible candidate, who is efficient in his
field, should be appointed for the job irrespective of his nationality. This
approach is followed by the firms that are truly global because they
follow the integrated global business strategy.
Questions?
 UNIT TEST 1

1.DEFINE HRM AND EXPLAIN ITS

FUNCTIONS AND OBJECTIVES?

2.WHAT IS PERSONNEL MANAGEMENT AND

EXPLAIN HOW IT IS DIFFERENT FROM HRM?

3. Explain the influence of globalization

on HRM.