Managing Human Resources

[KMBN- 202]
 Syllabus
Unit Description
Essentials of HRM: Functions of HRM, HRM vs.HRD, Strategic
HRM: Meaning and Roles in Strategy formulation and
implementation, Barriers to strategic HRM, Linking HR strategy
UNIT-1 with business strategy, Roles of HR Manager, roles of HR in
merger and acquisitions, Technology & HR and changing
roles of HR due to technology, HRM linkage with TQM &
productivity. Case Studies
Human Resource Planning and Employee Hiring : Meaning of
job Analysis, job design, Human Resource Planning, methods
demand forecasting for manpower planning, factors
influencing HRP, Employee hiring- methods of Recruitment,
UNIT-2 Employee selection, process of employee selection, recent
trends in recruitment. Case Studies

Contd..
 Syllabus
(Contd)

Unit Description
Employee Training & Development: Meaning importance of
Training, types and methods and types of training, career
planning, promotion, transfer, demotion and separation,
UNIT-3 Performance Appraisal: Meaning and types of appraisal, Job
Evaluation: Meaning and methods of job evaluation. Case
Studies .

Compensation Management and Employee Relations:

Introduction to compensation management, Components and
structure of employee compensation, Factors affecting
employee compensation, Employee incentive schemes, and
UNIT-4 recent trends in compensations management, Meaning of
employee relation and industrial relations. Case Studies

Contd..
 Syllabus
(Contd)

Unit Description

Employee Safety/ Health and International Human Resource

Management: Needs and legal provision of employee health,
measures to promote employee health , purpose of employee
safety, accidents: causes & prevention, effective safety
UNIT-5 management ,& legal provisos. basic principles governing
International Human Resource Case Studies .
 Course Outcomes
 Synthesize the role of human resources management
as it supports the success of the organization including
the effective development of human capital as an
agent for organizational change.
 Demonstrate knowledge of laws that impact behaviour
in relationships between employers and employees
that ultimately impact the goals and strategies of the
organization.
 Understand the role of employee benefits and
compensation as a critical component of employee
performance, productivity and organizational
effectiveness.
Contd..
 Course Outcomes
(Cont)

 Show evidence of the ability to analyze, manage

and problem solve to deal with the challenges
and complexities of the practice of collective
bargaining.
 Demonstrate knowledge of practical application
of training and employee development as it
impacts organizational strategy and competitive
advantage.
 Books Recommended

Reference Books:-
 V.S.P.Rao, Human Resource Management (Text and Cases)
Himalaya Publications, 13th Edition.
 Durai Praveen, Human Resource Management Pearson
Publication, 2nd Edition.
 Gary Dessler and BijuVarkkeyH uman Resource
Management, Person Publication, 2013, 14th Edition.
 Seema Sanghi, Human Resource Management, Vikas
Publlications, 2014, 5th Edition.
 K. Aswathappa, Human Resource Management, McGraw Hill
Education, 2013, 7th Edition.
UNIT - 1
 Human Resource
 Human resource is a resource like any other
natural resource. It means that management
can get and use the skill knowledge ,ability etc
through the development of skills, tapping and
utilizing them again and again.
 HRM is the process of management which
develops and manages the human elements of
an enterprise.
 Meaning of HRM

According to Dessler (2008) 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
 According to Flippo
According to Flippo

Human resource management is the planning,

organizing, directing and controlling of the
procurement, development, compensation,
integration, maintenance and reproduction of
human resources to the end that individual,
organizational and societal objectives are
accomplished.
 Nature of HRM
 HRM Involves the Application of Management Functions
and Principles Universal existence .
 Decision Relating to Employees must be Integrated.

 People oriented.
 Decisions Made Influence the Effectiveness of an
Organization.
 HRM Functions are not Confined to Business Establishments Only
Scope of HRM
 Principles of HRM

 Individual development.
 Scientific Selection.
 Free Flow of Communication.
 Employee Representatives.

 Fair Remuneration.

Contd..
 Principles of HRM
(Contd)

 Incentive to recognize and reward.

 Dignity of Labour.
 Labour Management Co-operation.
 Team Spirit.

 Contribution to National Prosperity.

 Managerial.

 Operative.

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 Importance of HRM

Organization
 Good human resource practices help in attracting
and retaining the best people in the organization.
 In order to make use of latest technology the
appointment of right type of persons is essential.
 Globalization has increased the size of the
organizations who employ thousands of
employees in different countries.
 Human resource development is essential for
meeting the challenges of future.
Contd..
 Importance of HRM
(Contd)

Employees
 Providing them various financial and non-
financial incentives.
 Promotes team work and team spirit among
employees.
 Excellent growth opportunities to people
who have the potential to rise.

Contd..
 Importance of HRM
(Contd)

Society
 Society as a whole is the main beneficiary of
good human resource practices.
 HR leads to productivity gains to the society,
it enables the managers to reduce costs, save
scarce resources, enhance profits and offer
better pay.
Why is HRM important to managers?
HRM helps you avoid potential messes!
Examples:
 Finding employees not
performing at peak capacity.
 Hiring the wrong person for
the job or experiencing high
turnover.
 Human Resource Development

Concept :-
In simple words HRD is organized learning
experience aimed at matching the organizational
need for human resource with the individual
need for career growth and development.

Contd..
 Human Resource Development
(Contd)
Definition :-
HRD is process in which the employees of an
organization are continually helped in planned way to:-
 Acquire or sharpen capabilities required to
perform various functions associated with their
present or expected future roles.
 To develop an organizational culture where
superiors subordinate relationships teamwork and
collaboration among different subunits are strong
and contribute to organizational wealth.
HRM Vs HRD

Contd..
HRM Vs HRD
(Contd)
 What is strategic HRM?

Strategic human resource management can be defined

as the linking of human resources with strategic goals
and objectives in order to improve business
performance and develop organizational culture that
foster innovation, flexibility and competitive
advantage.
In an organisation SHRM means accepting and
involving the HR function as a strategic partner in the
formulation and implementation of the company's
strategies through HR activities such as recruiting,
selecting, training and rewarding personnel.
Characteristics of Strategic HRM

 Recognition of the outside environment.

 The impact of competition.
 Long-range consideration.
 Focus on decision-making.
 Consideration of all personnel.
 Integration with corporate strategy.
Scope of Strategic HRM

 The overall organization structure.

 Merger & acquisition.
 Recruitment policies.
Process of SHRM
 Roles in Strategy formulation and
implementation
• Strategy implementation is the translation of chosen
strategy into organizational action so as to achieve
strategic goals and objectives.

• Strategy formulation refers to the process of choosing

the most appropriate course of action for the
realization of organizational goals and objectives and
thereby achieving the organizational vision.

29
 The process of strategy formulation

• Setting Organizations’ objectives.

• Evaluating the Organizational Environment .
• Setting Quantitative Targets.
• Aiming in context with the divisional plans.
• Performance Analysis.
• Choice of Strategy.

30
 Steps in implementing a strategy
• Developing an organization having potential of
carrying out strategy successfully.
• Disbursement of abundant resources to strategy-
essential activities.
• Creating strategy-encouraging policies.
• Employing best policies and programs for constant
improvement.
• Linking reward structure to accomplishment of
results.
• Making use of strategic leadership.

31
 Barriers

• Short term mentality.

• Strategic inability.
• Lack of appreciation.
• Failure understands the role.
• Difficulty in quantifying outcomes.
• Wong perception of human assets.
• Resistance.

32
Linking HR Strategy with Business Strategy

 Understanding strategies.

 Mapping a strategy.

 Practices that drive results.

 Let's talk business.

Role of HR Manager
Roles of HR in merger and acquisitions
 Technology & HR (Cont..)
• Information Technology may have a greater
impact on organizations that exist in a
dynamic environment. This will lead to greater
efficiency and effectiveness of the Human
Resources.  Hence, utilizing IT application for
database management and advances
recruitment system will increase the efficiency
of the business.
 Technology & HR (Cont..)
However, innovation in Human Resource
Management can manifest itself in a number
of ways:
• To identify solutions quickly and flexibly during
a negotiation
• To identify new ideas for products and
services
• To identify new markets
Changing roles of HR due to technology
• Better services to line managers.
• Enhancing management
• Effective recruiting (E- Recruitment).
• Data management and critical analysis
• Inventory management tools and human resource management
• Cost-reduction and efficiency
• Customer service and human resource management
• Career development and human capital management
• Automation of HR processes
• Analytics grants access to more data
 Total Quality Management
 TQM is a systems approach to management that
aims to continuously increase value to customers by
designing and continuously improving the
organizational process and systems.
 It involves all the employees and extends backward
and forwards to include the supply chain and the
customers.
 As the world total implies, total quality
management is concerned with managing the
entire system, and not only subsystems or
functional departments.
Features of TQM

 Totality.

 Documentation.

 Foundation.

 Improvements.
Principles of TQM
 General.
 Design and organisation.
 Operations.
 Human resource development.
 Quality and process improvement.
 Accounting and control.
 Capacity.
 Marketing and sales.
 Objectives of TQM
 Define & specify quality policies and
objectives.
 Strong customer focus.
 Organization of quality activities in
performance with stated quality policies
and objectives.
 Wide integration of people, machine and
information.

Contd..
 Objectives of TQM
(Contd)

 Specific vendor control activities.

 Complete quality equipment identification.
 Strong quality mindedness and organization
wide quality motivation and training.
 Continuous control of the system using both
feed - forward and back.
 Periodic audit of system activities.
 Activities of TQM
 Pre-production quality evaluation.
 Quality planning :-
• Product and process.
• Purchase activities.
 Quality evaluation - product and process.
 Quality information - systems and equipment.
 Post-production quality service.
 HRM Linkage with TQM

TQM and HRM are in pursuit of the

same goals-profitability, productivity, a
customer-oriented company and a
motivated workforce.

Contd..
HRM Linkage with TQM
(Contd)

To be fully successful and self-

sustaining TQM requires an extensive
refashioning of HRM practices.

Contd..
 HRM Linkage with TQM
(Contd)

Successful implementation of various

TQM practices are positively related to
HRM functions.
HRM Linkage with Productivity
 Case Study
Siemens Builds a Strategy-Oriented HR System

Siemens is a 150-year-old German company, but it’s

not the company it was even a few years ago. Until
recently, Siemens focused on producing electrical
products. Today the firm has diversified into software,
engineering, and services. It is also global, with more
than 400,000 employees working in 190 countries. In
other words, Siemens became a world leader by
pursuing a corporate strategy that emphasized
diversifying into high-tech products and services, and
doing so on a global basis.
Contd..
 Case Study
(Contd)

With a corporate strategy like that, human resource

management plays a big role at Siemens. Sophisticated
engineering and services require more focus on
employee selection, training, and compensation than
in the average firm, and globalization requires
delivering these services globally. Siemens sums up the
basic themes of its HR strategy in several points. These
include:
1 - A living Company is a learning Company. The high-
tech nature of Siemens’ business means that
employees must be able to learn on a continuing basis.
Contd..
 Case Study
(Contd)
Siemens uses its system of combined classroom and
hands-on apprenticeship training around the world to
help facilitate this. It also offers employees extensive
continuing education and management development.
2 - Global teamwork is the key to developing and
using all the potential of the firm’s human resources.
Because it is so important for employees throughout
Siemens to feel free to work together and interact,
employees have to understand the whole process, not
just bits and pieces. To support this, Siemens provides
extensive training and development.

Contd..
 Case Study
(Contd)
It also ensures that all employees feel they’re part of a
strong, unifying corporate identity. For example, HR uses
cross-border, cross-cultural experiences as prerequisites
for career advances.
3 - A climate of mutual respect is the basis of all
relationships-within the Company and with society.
Siemens contends that the wealth of nationalities,
cultures, languages, and outlooks represented by its
employees is one of its most valuable assets. It
therefore engages in numerous HR activities aimed at
building openness, transparency, and fairness, and
supporting diversity.
Contd..
 Case Study
(Contd)
Questions :-
1. Based on the information in this case, provide
examples, for Siemens, of at least four strategically
required organizational outcomes, and four required
workforce competencies and behaviors.
2. Identify at least four strategically relevant HR system
policies and activities that Siemens has instituted in
order to help human resource management
contribute to achieving Siemens’ strategic goals.
3. Provide a brief illustrative outline of a strategy map
for Siemens.