Human Resource Management

Introduction
• “The human mind is our fundamental resource.” - John F.
Kennedy
• The success of any organization depends on the quality of its
human resources.
• Human resources are the most important and valuable assets,
every organization has in the form of its employees.
• Dynamic, competent and motivated human resources build
dynamic organization and enable organization to achieve its goals.
• An organization's performance and resulting productivity are
directly proportional to its human resources.
• Human resource management encompasses those activities
designed to provide, motivate and coordinate the human
resources of an organization.
 Cont………..
• Human resources are assuming increasing significance in modern
organization.
• Majority of problems in organizational setting are human and social
rather than physical, technical or economic.
• The failure to manage human resources causes immense loss to the
nation, enterprise and individual. Hence sound human resources
management is a principal functional area of management.
• According to Decenzo and Robbins, “HRM is concerned with the
people dimension” 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 is
essential to achieve organisational objectives.
 Cont……….
• HRM can be defined as the range of strategies, processes and
activities designed to support corporate objectives by integrating the
needs of the organization and individual.
• HRM refers to the practices and policies one needs to carry out the
people or human resource aspects of a management position
including recruiting , screening , training, rewarding and appraising.
• HRM refers to set of programs , functions and activities designed and
carried out in order to maximize both organizational and individual
effectiveness.
• HRM is a process consisting of the acquisition, development,
motivation and maintenance of human resource.
 Cont………..
• Acquisition Function:
• Job analysis
• Human resource planning
• Recruitment
• Selection
• Socialization
• Development Function:
• Training and Development
• Career
• Research
 Cont………..
• Utilization Function:
• Evaluation
• Compensation and benefits
• Motivation
• Maintenance Function:
• Labor relation
• Employee discipline
• Grievance handling
• Employee welfare.
 Modern HRM
• Strict and rigorous recruitment and selection.
• High level of training, especially induction and on the job training.
• Team working.
• Multi skilling.
• Better management- worker communication.
• Use of quality circles.
• Encouragement of employee suggestions and innovation.
• Single status symbols such as common canteens and corporate
uniform.
 Nature of HRM
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules and process.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good results.
• It helps an organization to meet its goals in the future by providing
competent and well motivated employees.
• It tries to build harmonious relations between people working at
various levels in the organization.
• It is multidisciplinary activity, utilizing knowledge and inputs drawn
from different area.
 Objectives of HRM
• To help the organization reach its goals.
• To ensure effective utilization and maximum development of HR.
• To ensure respect for human beings.
• To identify and satisfy the needs of individuals.
• To ensure reconciliation individuals goals with those of the organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well trained and motivated employees.
• To increase employee satisfaction and self actualization.
• To maintain and develop quality of work life.
• To be ethically and socially responsive to the needs of society.
• To enhance employee capabilities to perform the present job.
• To make the sense of team sprit, team work and team collaboration.
 Functions of HRM
• Human resource and manpower planning.
• Recruitment, selection and placement of employees.
• Training and development of employees.
• Appraisal of performance.
• Social security and welfare of employees.
• Making general and specific management policy for organizational
relationship.
• Collective bargaining, contract negotiation and grievance handling.
• Developing and maintaining motivation for workers by providing incentives.
• Reviewing and auditing manpower management in the organization.
• Strategic human resource management.
• Competency based human resource management.
• Feedback counselling.
 Job analysis, description and specification
• Job analysis is to understand more about a specific job in order to optimize it. Job
analysis is a systematic process of collecting complete information pertaining to a
job.
• Job analysis helps to understand what tasks are important and how they are
carried on.
• Job analysis forms basis for later HR activities such as developing effective
training program, selection of employees, setting up of performance standards
and assessment of employees ( performance appraisal)and employee
remuneration system or compensation plan.
• Job analysis is a detailed examination of
• Purpose of the job
• Conditions under which an employee performing his/her job.
• Major duties and activities required of job holder.
• What exactly a job requires in terms of behavior characteristics, knowledge, skills,
educational qualifications and the physical working condition of the employee.
 Cont….
• The intention behind job analysis is to answer questions such as:
• What is the need of the job to exist?
• What physical and mental activities does the worker undertake?
• When is the job to be performed?
• Where is the job to be performed?
• How does the job performed by an employee?
• What qualities and qualifications are required to perform the job.
• Basic outcomes of job analysis is job description and job specification.
• Job description: job description summarizes and organizes the
information for the organization's job-related actions. Job description
includes basic job-related data that is useful to advertise a specific job
and attract a pool of talent. It includes:
 Cont…..
• Job identification: it includes job title, departments, code no of job.
• Job summary: definition of job or further explanation of job title.
• Duties performed: it ensures what, how and why?
• Supervision given and received
• Relationship to other jobs
• Machine , tools and materials
• Working conditions
• Comments
• Job specification: Also known as employee specifications, a job specification
is a written statement of educational qualifications, specific qualities, level of
experience, physical, emotional, technical and communication skills required
to perform a job, responsibilities involved in a job. It also includes general
health, mental health, intelligence, aptitude, memory, judgment, leadership
skills, emotional ability, adaptability, flexibility, values and ethics, manners
and creativity, etc.
 Example of Job Description
• The following set of guidelines will help you create a job description for
positions within your company. Note that the examples given are random and
do not represent the requirements for any particular job.
Your Company Name and Logo
JOB DESCRIPTION :
• Job Title:
• Department:
• Reports to: (Provide the name and position of the person to whom the
employee will report.)
• Date:
 Rising Interest in HRM
• In this business age, all the organization has interest towards its human
resource to increase competitive power of employees.
• There is increasing interest on the respect of human resource
management. The main causes in increasing interest towards human
resource management are as follows:
• Size of Organization
• Diversity in workforce
• Competition
• Technological Development
• Globalization
 HR challenges
• Compliance with Laws and Regulation
• Change Management
• Employee Empowerment
• Knowledge Management
• Outsourcing
• Leadership Development
• Workforce Training and Development
• Adapting to Innovation
• Compensation Management.
• Recruiting & Retaining Talented Employees
• Workforce Diversity
• Globalization
 Strategic HRM
• Proactive management of the employees of a company or organization.
• Strategic human resource management includes typical human resource
components such as hiring, discipline, and payroll, and also involves
working with employees in a collaborative manner to boost retention,
improve the quality of the work experience, and maximize the mutual
benefit of employment for both the employee and the employer.
• 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 organization 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.
 Environment in Human Resource Management
• Internal Environment:
• Unions: Trade unions are formed to safeguard the interest of its
employees.
• Organizational Culture and Conflict.
• Professional Bodies.
• External Environment:
• Economic
• Political
• Demographic
• Political
 Globalization and HRM
• More and more large companies, as well as companies that account
for a significant amount of business in the world or in any single
country are globalizing.
• Hence the demand for employees, leaders and managers with global
skills is increasing.
• HR managers are on one side expected to find staff with global skills,
train them for global skills and do all other HR activities with focus
on globalization.
• Doing business in more than one country
• Operating and expanding the business throughout the world
• Establishing manufacturing and distribution facilities in any part of
the world
• Global organizational structures, organizational culture & strategies
 Approaches to HR
• Ethnocentric approach
• Polycentric philosophy
• Geocentric approach
• Exports
• Licensing
• Management contract
• Joint ventures
• Strategic alliance
• Sole ownership
 Impact of globalization on HRM
• Managing Cultural Diversity: Managing different employees from
different cultures in the same organization is a complex activity.
• Managing Expatriates: Preparing the home country employees to
work in a different country is a complex task.
• Difference in the Employment Laws: The employment laws or the
labor laws differ from one country to another.
• Managing virtual employees: Majority of the information technology
based organizations have employees working “on-site” at a client’s
location which is completely new to them.
• Corporate Social Responsibility: Corporate houses actively
participating in the practice of doing for the betterment of the society
has emerged from the western countries.
 Cont……….
• 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.
• Evolution of more part-time and temporary work (especially among
women, the elderly and students).
• Coping up with emerging technologies : Every employee in today’s
leading organization is being trained with the latest technologies .
• Changing perspective from subordinates to business partners: The
shift has been observed in today’s MNC that culture of subordinates
is getting outdated. Employees have been treated as business
partners’ i.e every employee is responsible towards the growth of the
organization and considered as a partner in the company. This impact
is the result of globalization.