1. HUMAN RESOURCE MANAGEMENT

2. HRM: HISTORY
• In the late 19th Century Personnel administration as a department came into
picture, the department was responsible for welfare of employees as well as
organizations
• Post world war 2 globalization started picking up pace and as a result the
competition in different markets intensified
• In order to become successful and sustain and survive effectively organizations
understood the need to manage human resources in the more efficiently than
before
• HRM replaced the personnel department in the 1970’s as a comprehensive
model allowing organizations to manage employees much better than ever
before
• HRM is a vast field which not only encompasses Personnel & Admin
responsibilities, but also activities which start right from recruitments to T&D,
Appraisals, Grievance handling and more recently others like organizational
development & People management
• HR department is at the heart of any organization as it maintains a right balance
between organizations and their most important assets “Employees)

3. HUMAN RESOURCE MANAGEMENT:
INTRODUCTION
• Human resource management is the process of acquiring, training, appraising
and compensating employees and of attending to their labor relations, health &
safety and fairness concerns
• In a way HRM involves conducting job analysis, planning labor needs, orienting
and training new employees, managing wages, providing incentives, appraising
performance and so on, the department is responsible for maintaining cordial
and healthy relationship between organizations and employees
• HRM and its effectiveness is most critical for the success of organizations, this
is because humans are the most important assets which an organization
possesses and their effective management will lead to high levels of
productivity and profits
• “You might have lots of capital, you might have the best infrastructure, you
might have the best machinery and so on, however nothing is worth till the
time you have good employees” (Thomas J Watson Jnr.)

4. HUMAN RESOURCE MANAGEMENT:
INTRODUCTION
• Human Resource Management ("HRM") is a
way of management that links people-related
activities to the strategy of a business or
organization. HRM is often referred to as
"strategic HRM". It has several goals:
•- To meet the needs of the business and
management (rather than just serve the
interests of employees);
•- To link human resource strategies / policies to
the business goals and objectives;
•- To find ways for human resources to "add
value" to a business;
•- To help a business gain the commitment of
employees to its values, goals and objectives

5. Human resource management: introduction
Examples of Key Strategy Issues
• What markets should the business
Compete in
Possible Human Resource Implication
What expertise is required in these markets?
do existing managers and employees have the right
skills & experience
• Where should the business be located
To compete optimally?
Where do we need our people and how many do we
Need?
• How can we achieve improvements in
Our production costs to remain competitive
How productive is the workforce currently? how
does this compare with competitors? What
investment in the workforce (training, recruitment)
and their equipment is required to achieve the
desired improvement in productivity
•
•How can the business effect cultural change
•How can the business respond to rapid
Technological change in the market?
What are the current values of the workforce? how
can the current culture be influenced/ changed to
help implement a change program
What technological skills does the business currently
Possess. What additional skills are needed to respond to
technological change? Can these skills be acquired
through training or is there need for new recruits?

6. Human resource management: role,
responsibilities, duties
• HR Managers duties involve placing right person on the right job,
orientation programs, training and development, controlling labor
costs, retention, performance appraisals and so on
• Line function involves exerting line authority within the HR
department, coordinative function involves being right arm of top
executive to ensure HR managers are implementing HR policies
and procedures, staff functions involve innovators role, advising
top managers on HR policies and procedures, employee advocacy
role and handling all HR activities
• Another important role of the HR manager is that he/she acts as
a bridge between people and organizations whereby they are
responsible for maintaining cordial relationships between the two
entities

9. Human resource management: roles,
responsibilities and duties
• Human resource managers have strategic and functional
responsibilities for all of the HR disciplines. A human resource
manager has the expertise of an HR generalist combined with
general business and management skills.
• Although the employee relations specialist is responsible for
investigating and resolving workplace issues, the human resource
manager has ultimate responsibility for preserving the employeremployee relationship through designing an effective employee
relations strategy
• Human resource managers develop strategic solutions to meet
workforce demands and labor force trends. An employment
manager actually oversees the recruitment and selection
processes; however, an HR manager is primarily responsible for
decisions related to corporate branding as it relates to recruiting
and retaining talented employees.

10. Human resource management: roles
responsibilities and duties
• Frame a clear and easily implementable HR Policies
•Nurture and develop a motivated HR Team to meet business
requirement
•Develop the collective knowledge of the HR team to handle
complex and crisis situation arising due to dynamic and changing
business environment
• Create a complementing skills based team such that various HR
aspects can be addressed and there are varied competencies and
skills the team has to be handle the entire gamut of HR
responsibilities ranging from HR design t0o HR delivery. E,g.
recruitment specialist, L&D experts, Business HR
•Plan and implement an effective HR Plan that is aligned to
Business Plan and overall organization people agenda

11. Human resource management: roles,
responsibilities and duties
• Execute manpower planning and budgeting to have a road-map for
recruitment assignments
•Manpower hiring as per the recruitment plan agreed along with the
Business heads/department heads
•Keep ears to the ground and reach out to all employees through
communication with employees at regular intervals to gather insights @
workplace and feed them back appropriately to the leadership team of
the organization
•Plan and execute suitable interventions to keep the employees
motivated
•Act as a business partner and provide dashboards/analytics to business
heads/department heads to help them have a pulse of their team
•Provide employee development and counseling assistance to employees
/team members to enhance employee performance and productivity
•Take adequate measures to retain good employees, ring fence high
potential employees

12. Human resource management: roles,
responsibilities, duties
•Ensure Statutory Compliant status at all times
•In case of a widespread organization, HR visit calendar to all locations is
made and followed
•Executing “Employee Engagement” initiatives to keep people together
and make the workplace exciting, rewarding and engaging
•Drive an effective Learning and development agenda that impacts the
employees and the businesses
•Evaluate and Improvise the current HR Practices to keep with time and
external benchmarks
•Update HR policies in line with the business and organization
requirement
•Keeping and updated Employee Handbook with all relevant details and
information
•Design, update and share SOPs of all HR processes

13. Human resource management: roles responsibilities,
duties
• Conduct periodical employee surveys to collate insights @
workplace and in turn design employee interventions accordingly
to address concern areas
•Support and counsel business managers to effectively manage
teams to ensure higher employee productivity
•Have an updated repository of Job descriptions for all roles in the
organization along with measurable performance indicators for
each role
•Maintain employee records and files i order for ease of reference
(both On-line and physical copies of the records)
•Communicate with employees and business heads for better
alignment
•Be astute to handle dynamics at the workplace and help
employees to overcome crisis situation

15. Human resource management: functions
• Human Resource Planning: Research is an important part of this
function because planning requires the collection and analysis of
information in order to forecast human resources supplies and to predict
future human resources needs. The basic human resource planning
strategy is staffing and employee development.
• Job Analysis: Job analysis is the process of describing the nature of a job
and specifying the human requirements, such as skills, and experience
needed to perform it. The end product of the job analysis process is the
job description.
• Staffing: Staffing emphasizes the recruitment and selection of the
human resources for an organization. Human resources planning and
recruiting precede the actual selection of people for positions in an
organization.
• Orientation: Orientation is the first step toward helping a new employee
adjust himself to the new job and the employer. It is a method to acquaint
new employees with particular aspects of their new job, including pay and
benefit programs, working hours, and company rules and expectations.

16. Human resource management: functions
• Training and Development: The training and development function
gives employees the skills and knowledge to perform their jobs
effectively. In addition to providing training for new or inexperienced
employees, organizations often provide training programs for
experienced employees whose jobs are undergoing change.
• Performance Appraisal: Performance appraisal function monitors
employee performance to ensure that it is at acceptable levels. Human
resource professionals are usually responsible for developing and
administering performance appraisal systems, although the actual
appraisal of employee performance is the responsibility of supervisors
and managers.
• Career Planning: Career planning has developed partly as a result of
the desire of many employees to grow in their jobs and to advance in
their career. Career planning activities include assessing an individual
employee’s potential for growth and advancement in the organization.
• Compensation: Human resource personnel provide a rational method
for determining how much employees should be paid for performing
certain jobs. Pay is obviously related to the maintenance of human
resources.

17. Human resource management: functions
• Benefits: Benefits are another form of compensation to employees other than
direct pay for work performed. As such, the human resource function of
administering employee benefits shares many characteristics of the
compensation function. Benefits include both the legally required items and
those offered at employer’s discretion.
• Labor Relations: The term “labor relations” refers to interaction with
employees who are represented by a trade union. Unions are organization of
employees who join together to obtain more voice in decisions affecting wages,
benefits, working conditions, and other aspects of employment.
• Record-keeping: The oldest and most basic personnel function is employee
record-keeping. This function involves recording, maintaining, and retrieving
employee related information for a variety of purposes. Records which must be
maintained include application forms, health and medical records, employment
history (jobs held, promotions, transfers, lay-offs), seniority lists, earnings and
hours of work, absences, turnover, tardiness, and other employee data.
• Personnel Research: All personnel people engage in some form of
research activities. In a good research approach, the object is to get facts
and information about personnel specifics in order to develop and
maintain a program that works. It is impossible to run a personnel
program without some pre-planning and post-reviewing.

20. Human resource management: scope
• Human resources planning :- Human resource planning or Human
Resource Planning refers to a process by which the company to
identify the number of jobs vacant, whether the company has
excess staff or shortage of staff and to deal with this excess or
shortage.
• Job analysis design :- Another important area of Human Resource
Management is job analysis. Job analysis gives a detailed
explanation about each and every job in the company.
• Recruitment and selection :-Based on information collected from
job analysis the company prepares advertisements and publishes
them in the newspapers. This is recruitment.
• Orientation and induction :- Once the employees have been
selected an induction or orientation program is conducted.

21. Human resource management: scope
• Training and development :- Every employee goes under training program
which helps him to put up a better performance on the job. Training program is
also conducted for existing staff that have a lot of experience. This is called
refresher training. Training and development is one area where the company
spends a huge amount.
• Performance appraisal :- Once the employee has put in around 1 year of
service, performance appraisal is conducted that is the Human Resource
department checks the performance of the employee.
• Compensation planning and remuneration :- There are various rules regarding
compensation and other benefits. It is the job of the Human Resource
department to look into remuneration and compensation planning.
• Motivation, welfare, health and safety :- Motivation becomes important to
sustain the number of employees in the company. It is the job of the Human
Resource department to look into the different methods of motivation.
• Industrial relations :- Another important area of Human Resource
Management is maintaining co-ordinal relations with the union members. This
will help the organization to prevent strikes lockouts and ensure smooth
working in the company.

23. Human resource management: significance
• 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.
• Better relations between union and management :- Healthy
Human Resource Management practices can help the organization
to maintain co-ordinal relationship with the unions.
• Helps an individual to work in a team/group :- Effective Human
Resource practices teach individuals team work and adjustment.
The individuals are now very comfortable while working in team
thus team work improves.

24. Human resource management: significance
• 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.
• 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.
• Improves the economy :- Effective Human Resource practices lead to
higher profits and better performance by companies due to this the
company achieves a chance to enter into new business and start new
ventured thus industrial development increases and the economy
improves.
• Gives competitive edge:- Strong HR policies help in providing
organizations with a competitive edge via the means of having highly
motivated, skilled and trained workforce
• Significance at social level:- HRM plays important role in the society, it
helps labor to live with pride and dignity by providing employment which
in turn gives them social and psychological satisfaction.

28. HR MODELS: HARVARD MODEL
• The Harvard model
acknowledges the existence of multiple
stakeholders within the organization.
•These multiple stakeholders include shareholders various groups of
employees, government and the community at large.
•The recognition of the legitimacy of these multiple stakeholders
renders this model a neo - pluralist model.
•This model emphasizes more on the human/soft side of HRM.
•Basically this is because this model emphasizes more on the fact that
employees like any other shareholder are equally important in
influencing organizational outcomes.
•In fact the interest of the various groups must be fused and factored in
the creation of HRM strategies and ultimately the creation of business
strategies.

29. HR MODELS: HARVARD MODEL
• A critical analysis of the model shows that it is deeply rooted in the human
relations tradition.
•
•Employee influence is recogniZed through people motivation and the
development of an organization culture based on mutual trust and team work.
•
•The factors above must be factored into the HR strategy which is premised on
employee influences, HR flows, reward system etc.
•
•The outcomes from such a set up are soft in nature as they include high
congruence, commitment, competencies etc.
•
•The achievement of the crucial HR outcomes has got an impact on long term
consequences, increased productivity, organizational effectiveness which will in
turn influence shareholder interests and situational factors hence making it a
cycle.
•
•It is thus important to note that the Harvard model is premised on the belief
that it is the organization’s human resources that give competitive advantage
through treating them as assets and not costs.

30. HR MODELS: MICHIGAN/ MATCHING MODEL
• Precisely, the matching aspect of this model demonstrates that the
model is inclined towards the harder side of HRM.
•This is because the matching model emphasizes more on “tight fit”
between the HR strategy and the business strategy.
•NB
It demands that available human resources must be matched
with jobs in the organization.
•The HR strategy must be highly calculative in terms of the quantity of
the human resources required to achieve the objectives enshrined in
the business strategy.
•Business strategy takes the central stage in this model hence human
resources are taken like any other resource which must be fully utilized
together with the other resources to achieve organizational objectives.

31. Hr models: other alternatives
• The normative perspective of human resource management
bases itself on the concepts of “hard HRM” and “soft HRM,” on
which the foundations of human resource management rest
• Hard HRM stresses the linkage of functional areas such as
manpower planning, job analysis, recruitment, compensation and
benefits, performance evaluations, contract negotiations, and
labor legislations to corporate strategy.
• Soft HRM model considers human capital as “assets” rather than
“resources” and lays stress on organizational development,
conflict management, leadership development, organizational
culture, and relationship building as a means of increasing trust
and ensuring performance through collaboration.

32. Hr models: other alternatives
• The critical perspective of human resource management is a
reaction against the normative perception. This highlights some
inherent contradictions within the normative perspective.
• While most organizations claim employees to be their most
important assets and make many commitments for their welfare
and development, in reality employers enforce a hard HRM-based
strategic control, and the interests of the organization always take
priority over the individual employee.
• The behavioral perspective of human resource management has
its roots in the contingency theory that considers employee
behavior as the mediator between strategy and organizational
performance. This theory holds that the purpose of human
resource intervention is to control employee attitudes and
behaviors to suit the various strategies adopted to attain the
desired performance.

33. Hr models: other alternatives
• The systems perspective describes an organization in terms of input,
throughput, and output, with all these systems involved in transactions
with a surrounding environment. The organized activities of employees
constitute the input, the transformation of energies within the system
at throughput, and the resulting product or service the output. A
negative feedback loop provides communications on discrepancies.
The role of human resource management in the systems perspective is
•Competence management to ensure that the workforce has the
required competencies such as skills and ability to provide the input
needed by the organization.
•Behavior management through performance evaluation, pay systems,
and other methods to ensure job satisfaction, so that employees work
according to the organizational strategy, ultimately boosting
productivity.
•Setting up mechanisms to buffer the technological core from the
environment in closed systems.
•Facilitating interactions with the environment in open systems.

34. Hr models: other alternatives
• Among the different perspectives of human resource
management is the agency or transaction cost perspective, which
holds the view that the strong natural inclination of people
working in groups is to reduce their performance and rely on the
efforts of others in the group. When one person delegates
responsibility to another person, conflicts of interests invariably
arise.
•The major role of human resource management in such a context
is to promote alternative ways of controlling behavior to reduce
the effects of such conflicts and minimize the cost to the
organization. The two major approaches include
•Monitoring employee behavior and preventing shrink of work by
establishing effective control systems and improving productivity.
•Providing employees with incentives such as rewards, motivation,
and job satisfaction to increase their individual performance.

36. SOUND HR POLICIES: KEY ESSENTIALS
• The HR policy should present the principle that will guide the organization’s
actions and reflect a faith in the ethical values of employees. As Peter Drucker
has observed, “The policies of an enterprise have to be balanced with the kind
of reputation an enterprise wants to build up with special reference to the
social and human needs, objectives and values”.
• The policy should be definite, positive, clear and easily understood by
everyone in the organization so that what it proposes to achieve in the long
term is evident. Only a clear policy statement can serve as a guide to thinking
and decision-making.
• The HR policy must be reasonably stable but not rigid. It should be flexible to
cover a normal range of activities. Change in a policy should be made only
when it is essential and at fairly long intervals.
• The HR policy should be formulated with due regard for the interests of all the
concerned parties – the employers, the employees and the public community.
It should be stated in the broadest possible terms so as to serve as a guide in
practice now and in the future.

37. Sound hr policies: key essentials
• The HR policy must be developed with the active participation and support of
the management and the co-operation of employees at the shop floor level and
in the office. It should be formulated with active participation of the trade unions
as well.
•The HR policy should be definite so that it is easy to understand. It should be
stated in clear, definite and easily understood terms so that what it proposes to
achieve is evident.
•The HR policy must provide a two-way communication system between the
man-agement and the employees. It should be communicated in writing so as to
re-move any confusion. This is necessary to prevent misunderstanding and to
en-sure uniformity of application.
•The HR policy should be consistent with public policy. A good HR policy should
recognize individual differences and respect human dignity. It should be based on
consistency in treatment to all employees without any favoritism or
discrimination.