HRM UNIT 1

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https://www2.deloitte.com/in/en/pages/human-capital/solutions/hcm-deploying-hr-
technology.html

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• KPMG in India is one of the leading providers of risk, financial services and business advisory, internal
audit, corporate governance, and tax and regulatory services.

• http://www.kpmg.com/IN/en/Pages/default.aspx

• http://www.kpmg.com/in/en/issuesandinsights/articlespublications/pages/default.aspx?k=+&u=http%3a
%2f%2fwww.kpmg.com%
• 2fIN%2fen%2fIssuesAndInsights%2fArticlesPublications&redirect=false

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McKinsey was the first global consulting firm to
open its doors in India, over 20 years ago. Today
we work with most of the country’s largest
companies—and have helped several of them
become global champions.
• http://www.mckinsey.com/global_locations/asia
/india
• http://www.mckinsey.com/global_locations/
asia/india/en/latest_thinking
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http://www.shrm.org/pages/
default.aspx

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http://www.nationalhrd.org/

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Indian Society for Training & Deve
lopment

 
•  
http://www.istd.co.in/
 
 

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http://www.peoplematters.in/

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 CASES
• https://hbr.org/store/case-studies

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 UNIT 1
1. Introduction
2. Concept
3. Nature
4. Scope
5. Functions
6. Models

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 UNIT 1
7.Roles & Responsibilities of HR managers
8.Business & Organizational Restructuring and
its implications for HR;The HRM &
approaches to HRM

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 UNIT 1
10.Competitive Challenges & HRM
1) Workforce Diversity
2) Protean Careers
3) Moonlighting Phenomenon
4) Psychological Contract
5) Developmental Leadership
6) Employee Engagement

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1. CONCEPT OF HRM

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 Why Study HRM?

• To work with people effectively, to build

skilled & motivated workforce.

• Employees KSA’s are among the most

distinctive & renewable resources on which a
company can draw.

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 J. Watson-Founder of IBM
“You can get capital & erect buildings, but it
takes people to build a business.”

Competing through people

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Welcome to the exciting field of HR
• World of human being rewarding experience
• Most happening function as of now
• It is people who make the difference
• Capable of generating value & adding to the
competitive advantage to organization.
• People capability drive to performance.
• Process of managing human talent to achieve
an organizational objectives.
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People contribute Competitive advantage by:
• Knowledge, Skill
• Talents, Creative Abilities
• Aptitude/Interest
• Attitude
• Values, Beliefs
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 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.“
The first definition of HRM is that it is the process of managing people in
organizations in a structured and thorough manner.

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 Bratton & Gold (2003)
state that to be able to analyze and understand HRM-theory and
practice a definition is needed.

In their own opinion HRM is a strategic approach to managing employment

relations which emphasizes that leveraging people’s capabilities is critical
to achieving sustainable competitive advantage. Here the concern is for
integration and the behavior of people in the workplace based on ability,
motivation, role perception and situational contingencies.

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INTRODUCTION & CONCEPT OF
HRM

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Armstrong (1992) gives a different angle claiming that
HRM is

about adopting a longer-term perspective to

the management of people in order to obtain
added value from them and thus achieve
competitive advantage. To achieve this,
managers have to invest in human resources
as well as new technology

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 There are many definitions of Human Resource Management (Bratton & Gold, 2003;
Armstrong, 1992; Landmark & Önnevik, 2006; Pettigrew & Whipp, 1991) that all stress the
importance of the people at work and their contribution to a company’s overall performance.

After analyzing the different meanings of HRM I decided to stay to the definition of
Pettigrew & Whipp (1991) that we believe gives one of the best and most comprehensive
definitions:

“Human resource management relates to the total set of

knowledge, skills and attitudes that firms need to
compete. It involves concern for and action in the
management of people, including: selection, training
and development, employee relations and
compensation. Such actions may be bound together
by the action of an HRM philosophy”
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Workforce Management, People Management ,
Employee Management
FROM
Entry to Exit, Recruitment to Retirement ,
Placement to Resignation

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 DEFINITIONS
• Definition 1 – Integration
• “HRM is a series of integrated decisions that form the employment relationships; their quality
contributes to the ability of the organizations and the employees to achieve their objectives.”
•  
• Definition 2 – Influencing
• “HRM is concerned with the people dimensions in management. Since every organization is made
up of people, acquiring their services, developing their skills, motivating them to higher levels of
performance and ensuring that they continue to maintain their commitment to the organization
are essential to achieving organizational objectives. This is true, regardless of the type of the
organization – government, business, education, health, recreational, or social action.”
•  
• Definition 3 – Applicability
• “HRM planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end that
individual, organizational and social objectives are accomplished.”

•  
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 2.NATURE
People oriented-Administrative & supportive
• Pervasive Force
• Action Oriented
• Individually oriented
• Development oriented
• Integrating mechanism
• Comprehensive Function
• Auxiliary Service
• Inter-disciplinary function
• Continuous function
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 3. SCOPE
• Personnel aspect

• Welfare aspect

• Industrial relations aspect

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 3.SCOPE
• Very vast & wide-National Institute of Personnel Management. Calcutta
specified following scopes:
• ACQUISITION
– Manpower Planning
– Recruitment,Selection,Placement
MAINTENANCE
Remuneration
Motivation
Health & Safety
Social Security
Industrial Relations
Performance Appraisal

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 3.SCOPE
• DEVELOPMENT
– Training
– Career Development
– Organization Development
– Internal Mobility
CONTROL
Human Resource Audit
Human Resource Accounting
Human Resource Information system
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 SCOPE
 
Scope of HRM can be described based on the following activities of HRM. Based on these activities we can summarize the
scope of HRM into 7 different categories as mentioned below after the activities. Lets check out both of them.
 
HRM Activities –
HR Planning
Job Analysis
Job Design
Recruitment & Selection
Orientation & Placement
Training & Development
Performance Appraisals
Job Evaluation
Employee and Executive Remuneration
Motivation
Communication
Welfare
Safety & Health
Industrial Relations

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4. FUNCTIONS-Managerial &
Operational

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HRM FUNCTIONS

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 4. 1MANAGERIAL FUNCTIONS
 
• Planning: Plan and research about wage trends, labor market conditions,
union demands and other personnel benefits. Forecasting manpower
needs etc.
• Organizing: Organizing manpower and material resources by creating
authorities and responsibilities for the achievement of organizational
goals and objectives.
• Staffing: Recruitment & Selection
• Directing: Issuance of orders and instructions, providing guidance and
motivation of employees to follow the path laid-down.
• Controlling: Regulating personnel activities and policies according to
plans. Observations and comparisons of deviations

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 4.2 OPERATIONAL FUNCTIONS
• Procurement: Planning, Recruitment and Selection, Induction
and Placement
• Development: Training, Development, Career planning and
counseling.
• Compensation: Wage and Salary determination and
administration
• Integration: Integration of human resources with organization.
• Maintenance: Sustaining and improving working conditions,
retentions, employee communication
• Separations: Managing separations caused by resignations,
terminations, lay offs, death, medical sickness etc.

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