Human Resource Management, or HRM, is the practice of managing people to achieve better performance. For example, if you hire people into a business, you are looking for people who fit the company culture as they will be happier, stay longer, and be more productive than people who won't fit into the company culture.
2. UNIT - 1
• Definition; Nature, Scope & Objectives; Need; Significance
of Human resource management. Functions of Human
resource management .
• New trends in HRM due to globalization ,deregulation and
technological advancements .
• Manpower Planning: Definition, Objectives,
Process, Factors affecting Manpower
Planning.
3. Define of HRM
• According to Flippo,“Human resource management is the planning ,organizing
,directing and controlling of the procurement, development, compensation, Maintenance
and reproduction of human resources to the end that individual, organizational and
societal objectives are accomplished”.
• According to brech, “personal management is that part of the management process
which is primarily concerned with the human constituents of an organization”.
• HRM is process of bringing people and organization together so that goals of each are
met.
4. Nature of HRM
• It is pervasive in nature as it is present in all enterprises
• It is action oriented as it focus on action rather than on record keeping,
written procedure or rules.
• It tries to help employees develop their potential fully.
• HRM is all about people at work, both as individual and groups.
• Continuous function
• Interdisciplinary
• It tries to build and maintain cordial relations between people working at
various level
• It is a staff function
5. Scope of HRM
• Personnel Aspect: this concern with manpower planning , recruitment, placement
, transfer etc
• Welfare Aspect: it deal with working conditions, amenities such as crèches ,
restroom , transport etc.
• Industrial relation Aspect: this covers union – management relations , collective
bargaining , grievance etc.
6. Importance of HRM
• It help in attracting and retaining the best people in the organization.
• It promote team work and team spirit among employees
• It offers excellent growth opportunities to people who have the potential to rise
Employment opportunities multiply
• Scarce talent are put at best use.
• It facilitates the rapid economic development of a country.
7. Objective of HRM
• To help the organization reach its goals.
• To employ the skills and abilities of workforce efficiently
• To provide the organization with well trained and well motivated employees.
• To develop and maintain a quality of work life
• To communicate HR policies to all employees
• To help maintain ethical policies and behavior.
8. Functions of Human Resource
Management
• Human resource management involves blending the traditional administrative
functions along with the changing concepts of employee welfare in the
organisation.
• • The retention of employees is dependent on how they are perceived and
treated in the organisation based on their performance, abilities and skills.
• • The extent of activities carried out by the HR is dependent on the size and
scope of the organisation, the nature of operations and the attitude of
management towards the employees.
• • HRM functions can be broadly classified into the following two categories:
• • Managerial functions
• • Operative functions
• • Advisory functions
11. RECENT TRENDS IN HUMAN RESOURCE
MANAGEMENT
• 1 Globalization and its implications
• 2 Work-force Diversity
• 3 Employee expectations
• 4 Changing skill requirements
• 5 Corporate downsizing
• 6 Continuous improvement programs
• 7 Re-engineering work processes for improved productivity
• 8 Contingent workforce
• 9 Mass Customization
• 10Decentralized work sites
• 11Employee involvement
• 12Technology
• 13Health
• 14Family work life balance
• 15Confidentiality
12. Globalization and its implications
• Business today doesn’t have national boundaries – it reaches around the world. The rise
of multinational corporations places new requirements on human resource managers. The
growth of liberal cross-border trade, the use of communications technology and the
expansion of transnational companies are not likely to let up. Attracting global talent
requires staying abreast of new strategies for finding and attracting talent. The HR
department needs to ensure that the appropriate mix of employees in terms of
knowledge, skills and cultural adaptability is available to handle global assignments. In
order to meet this goal, the organizations must train individuals to meet the challenges of
globalization. HRM would be required to train management to be more flexible in its
practices. Business technology consultancy Infosys decided to hire Chinese graduates and
started by inviting and teaching a select group of Chinese students English at its office in
Mysore, India, allowing the company to source workers from a neighbouring country cost-
effectively
13. Work-force Diversity
• Workforce diversity means similarities and differences among employees in terms of age,
cultural background, physical abilities and disabilities, race, religion, gender, and sexual
orientation. No two humans are alike. Diversity is critically linked to the organization’s
strategic direction. The workforce composition is also changing over the years. Demands for
equal pay for equal work, putting an end to gender inequality and bias in certain occupations,
the breaking down of grass ceiling have already been met. A family friendly organization is
one that has flexible work schedules and provides such employee benefits such as child care.
In addition to the diversity brought by gender and nationality, HRM must be aware of the age
differences that exist in today’s work force. HRM must train people of different age groups to
effectively manage and to deal with each other and to respect the diversity of views that each
offers. In situations like these a participative approach seems to work better. In current
scenario, employing diversified workforce is a necessity for every organization but to manage
such diversified workforce is also a big challenge for management.
14. Employee expectations
• Nowadays workers are better educated, more demanding and are ready to voice strong, violent and joint
protests in case their expectations are not met. The list of financial and non-financial demands is ever-
growing and expanding. In fast-changing industries such as software, telecom, entertainment and
pharmaceuticals the turnover rations are rising fast and if HR managers do not respond positively to
employee expectations, the acquisition and development costs of recruits is going to mount up steadily.
An efficient organisation is, therefore required to anticipate and manage turnover through human
resource planning, training schemes followed by appropriate compensation packages.
15. Changing skill requirements
• Recruiting and developing skilled labour is important for any company concerned about
competitiveness, productivity, quality and managing a diverse work force effectively. Skill
deficiencies translate into significant losses for the organization in terms of poor-quality work
and lower productivity, increase in employee accidents and customer complaints. Since a
growing number of jobs will require more education and higher levels of language than
current ones, HRM practitioners and specialists will have to communicate this to educators
and community leaders etc. Strategic human resource planning will have to carefully weigh
the skill deficiencies and shortages. HRM department will have to devise suitable training and
short term programs to bridge the skill gaps & deficiencies
16. Corporate downsizing
• Whenever an organization attempts to delayer, it is attempting to create greater efficiency.
The pressure to remain cost effective has also compelled many a firm to go lean, cutting
down extra fat at each managerial level. The premise of downsizing is to reduce the number
of workers employed by the organization. HRM people must ensure that proper
communication must take place during this time. They must minimize the negative effects of
rumours and ensure that individuals are kept informed with factual data.
17. Continuous improvement programs
• It is a process whereby an organization focuses on quality and builds a better foundation to serve
its customers. This often involves a companywide initiative to improve quality and productivity.
The company changes its operations to focus on the customer and to involve workers in matters
affecting them. Companies strive to improve everything that they do, from hiring quality people,
to administrative paper processing, to meeting customer needs. HRM plays an important role in
the implementation of continuous improvement programs. HRM must prepare individuals for the
change. This requires clear and extensive communications of why the change will occur, what is to
be expected and what effect it will have on employees.
18. Re-engineering work processes for
improved productivity
• Although continuous improvement initiatives are positive starts in many of our
organizations, they typically focus on ongoing incremental change. Such action is
intuitively appealing – the constant and permanent search to make things better.
Yet many companies function in an environment that is dynamic- facing rapid and
constant change. Re-engineering occurs when more than 70% of the work
processes in an organization are evaluated and altered. It requires organizational
members to rethink what work should be done, how it is to be done and how to
best implement these decisions. Re-engineering changes how organizations do
their business and directly affects the employees. Re-engineering may leave
certain employees frustrated and angry and unsure of what to expect. Accordingly
HRM must have mechanisms in place for employees to get appropriate direction of
what to do and what to expect as well as assistance in dealing with the conflict
that may permeate the organization. For re-engineering to generate its benefits
HRM needs to offer skill training to its employees.
19. Contingent workforce
• A very substantial part of the modern day workforce are the contingent
workers. Contingent workers are individuals who are typically hired for shorter
periods of time. No organization can make the transition to a contingent
workforce without sufficient planning. As such, when these strategic decisions
are being made, HRM must be an active partner in these discussions. After its
entire HRM department’s responsibility to locate and bring into the
organization these temporary workers. As temporary workers are brought in,
HRM will also have the responsibility of quickly adapting them to the
organization. HRM will also have to give some thought to how it will attract
quality temporaries.
20. Mass Customization
• There is a lot going on already within HR concerning mass customization, the
optimal combination of mass production with customization. HR will need to take
the tools of marketing around customization for consumers and clients and
applying them to the task of talent segmentation. HR should develop principles for
understanding the optimal level of customization in the employment relationship.
Moreover, because customization will often mean that different groups of
employees receive different employment arrangements based on their needs or
the way they contribute, HR must develop principles that equip leaders to explain
these differences to employees.
21. Decentralized work sites
• Work sites are getting more and more decentralized. Telecommuting capabilities that exist
today have made it possible for the employees to be located anywhere on the globe. For
HRM, decentralized work sites present a challenge. Much of that challenge revolves around
training managers in how to establish and ensure appropriate work quality and on-time
completion. Work at home may also require HRM to rethink its compensation policy. Will it
pay by the hour, on a salary basis, or by the job performed? Also, because employees in
decentralized work sites are full time employees of the organization as opposed to
contingent workers, it will be organization’s responsibility to ensure health and safety of the
decentralized work force.
22. Employee involvement
• For today’s organization’s to be successful there are a number of employee involvement
concepts that appear to be accepted. These are delegation, participative management, work
teams, goal setting, employee training and empowering of employees. HRM has a significant
role to play in employee involvement. What is needed is demonstrated leadership as well as
supportive management. Employees need to be trained and that’s where human resource
management has a significant role to play.
23. Family work life balance
• Over a long time now in HRM history it has been a big debate about family life
work balance. Employees have been on toes of the employers to see if there could
be justice done and on the other hand employers have been keen to minimize the
effect of the same. The fact is a happy family is equal to a happy workforce. With
the current trend HRM have to work it out that every employee’s family to some
extent is a happy one. Therefore investing in what may seem out hand for the
organization is inevitable. It is time HRM to convince management to organize
family day out for the staff and their families, sacrifice sometimes for days off to
enable employees to attend to their family issues.
24. Technology
• With the current technological advancement and its projection in the future, it has brought in
new eyes in the face of HRM. A number of computerized systems have been invented to help
in the HRM of which they are seen as simplifier of HR functions in companies. For instance
the paper work files are being replaced by HRMIS which may be tailor made or Off the Shelf.
These systems help in handling a lot of data on a chip other than having a room full of file
shelves. What HRM is concerned with here is the safety (confidentiality) of the
data/information of staff, and therefore it is at the forefront of having to train personnel in
operating such systems and developing the integrity of such personnel to handle the
sensitivity of the matter.
25. Health and Safety
• The area of safety and accident prevention is of great concern to managers, at
least partly because of the increasing number of deaths and accidents at work.
Failure to provide a safe place to work can result in major fines and even criminal
conviction for managers. Supervisors play a key role in monitoring workers for
safety. With the emergence of the wellness clubs and fitness centres together with
the need for having healthy workforce, it has emerged that HRM has to move to
another step like having to subscribe for its employees to such clubs, paying health
insurance services for the staff. This is not only a productivity strategy but also a
strategy used to attract and retain valuable employees. HRM to continue showing
relevance it has shifted to providing health services to staff through health
insurance, sensitization, and free medical treatment bills. This has seen high
results in not only in performance but also in attraction and retention of highly
qualified personnel.
26. Confidentiality
• The current trends have been seen as new challenges in the terms of costs
especially in the short run but for organization to strive well in this competitive
market to together with the labour mobility it is imperative important to rethink
the HRM in terms of the current trends at all levels. It goes without say that as
longer as there is no clear defined human resource management strategies in the
given organization there is definitely a problem boiling in the same organization or
an explosion is bound to happen. With the current trend in managing the most
valued organization resource, organizations have to dig deeper to maintain
28. HRM PLANNING
• How many number of staff does the
Organization have?
• What type of employees as far as skills and
abilities does the organization have?
• How should the Organization best utilize the
available human resources?
• How can the organization keep its
employees?
29. Human Resource planning
• Human resource planning means different things
to different people .
• Human resource planning is a process that
identifies current and future human
resources needs for an organization to achieve its
goals. Human resource planning should serve as a
link between human resource management and
the overall strategic plan of an organization.
30. • HRP is a process by which the management of an organization determines its
future human resource requirement and how the existing human resource can
be effectively utilized to fullfill the requirements.
• Human resource planning consists of a series of activities viz.:
• Forecasting future manpower requirement either in term of mathematical
projection of trends in the economic environment and development in industry
or in term of judgmental estimates based upon the specific future plans of a
company.
• Making an inventory of present manpower resources and assessing the extent
to which these resources are employed optimally.
• Anticipating manpower problems by projecting present resources into the
future and comparing them with the forecast of requirements to determine
their adequacy, both quantitatively and qualitatively; and
• Planning the necessary programs of recruitment, selection, training,
development, transfer, promotion, motivation and compensation to ensure
that future manpower requirements are properly met.
31. Definitions
• In simple words, HRP is understood as the process of forecasting an
organization's future demand for, and supply of, the right type of people in
the right number.
• According to Dale S. Beach “ Human resource planning is a process of
determining and assuring that the organization will have an adequate
number of qualified persons available at the proper times, performing jobs
which meet the needs of the enterprise and which provide satisfaction for
the individual involved”
• It is forward looking function.
• According to E. Geister ” Manpower planning is the process including
forecasting, developing and controlling by which firm ensures that it has
right number of people and right kind of people at the right place at right
time doing work for which they are economically most useful.”
32. WHY IS HUMAN RESOURCE
PLANNING IS NEEDED ?• • Employment-Unemployment Situation
• • Technological Change
• • Demographic Change
• • Skill Shortage
• • Governmental Influences
• • Legislative Control
• • Impact of the Pressure Group(unions, politician
etc.)
• • Lead Time
33. Objective of HRP
• Assessing manpower needs for future.
• Assessing skill requirement in future.
• Determining training and development needs
• Anticipating surplus or shortage of staff.
• Ensuring optimum use of human resources.
• Helping organization to cope with the technological
development and modernization.
• ensuring high labour productivity.
• Controlling wage and salary cost.
34. Importance
• Organizational Objectives & Policies (expansion,
downsizing, acquisition, merger )
• Forecast HR requirement (Prevent shortage / excess of
staff )
• Determine future staff-mix
• Cope-up with the change — in market conditions,
technologies, products, government regulations and
policies, etc.
• Helps in succession planning
• Use existing HR productivity.
• Promote employees in a systematic manner.
• Cut cost
35. The factors affecting human resource
planning
1. Employment
2. Technical changes in the society
3. Organizational changes
4. Demographic changes
5. Shortage of skill due to labour turnover
6. Multicultural workforce
7. Pressure groups
8. Industry Growth
9. Industry attractiveness
10. Technology
11. Competition Climate
36. Employment
• HRP is affected by the employment situation
in the country i.e. in countries where there is
greater unemployment; there may be more
pressure on the company, from government to
appoint more people. Similarly some company
may force shortage of skilled labour and they
may have to appoint people from other
countries.
37. Technical changes in the society
• Technology changes at a very fast speed and new
people having the required knowledge are
required for the company. In some cases,
company may retain existing employees and
teach them the new technology and in some
cases, the company have to remove existing
people and appoint new.
38. Organizational changes
• Changes take place within the organization
from time to time i.e. the company diversify
into new products or close down business in
some areas etc. in such cases the HRP process
i.e. appointing or removing people will change
according to situation.
39. Demographic changes
• Demographic changes refer to the things
referring to age ,population ,composition of
workforce etc. A number of people retire
every year . A new batch of graduates with
specialization turned out every year. This can
change the appointment and removal in the
company .
40. Shortage of skill due to labour
turnover
• Industries having high labour turnover Rate
the HRP changes constantly :many new
appointments take place. This also affects the
way HR planning is implementing .
41. Multicultural workforce
• Workers from different countries travel to
other countries in search of job. When a
company plans it’s HRP it needs to take into
account this factor also.
42. Pressure groups
• Company has to keep in mind certain
pleasure. Groups like human rights activist,
woman activist, media etc. as they are very
capable for creating problems for the
company, when issues concerning these
groups arise, appointment or retrenchment
becomes difficult.
43. Industry Growth:
• In the Indian context, most of the industries
have shown a very healthy growth over the
past decade or so, driven largely by the strong
consumer demand in the domestic market.
This has in turn fuelled the demand for human
capital in majority of the sectors.
44. Industry Attractiveness:
• Some industries like IT, Retail have been able
to attract more talent because they have
become relatively more attractive because of
their growth prospective, their practices, and
their offerings, etc. There have been others
who are strong string to attract manpower.
45. Technology:
• Technology has today pervaded virtually into every industry.
We live in a knowledge economy and almost everything is
driven by technology. This has in turn necessitated
development and replenishment of new skill-sets in people.
• Employability has become a factor, only because today almost
every industry looks at the readiness of the people entering
their companies in terms of technology. This has impacted the
demand of human resource making it more ‘type’ dependent
rather than being number-driven, as in the past.
46. Competition Climate:
• The phenomenal growth that most of the industries have seen
in India has meant a cut-throat competition in most of the
industries of market-share and market-leadership. Today most
of the companies are trying to see that as much as their
bottom-line grows, their top-line grows as well.
• Such competition has translated in to a similar competiveness
for attracting and acquiring human resources. Talent is the
barometer of any company’s success today and ability to
attract them in large numbers and to do that continuously
determines the edge.
47. • The company-specific factors affecting the
Human Resource Planning of a Company
include:
• a. Strategy
• b. Human Resource Inventory
• C. Human Resource Mobility
48. a. Strategy:
• The strategy of any firm plays an important role in designing its
human resource planning programs. Way back in 2005, when
Bharti-Airtel decided to outsource activities like IT, software etc.
and focus on marketing as its core, it changed the HRP of the
company forever. The focus then was to build an excellent
marketing team and garner the maximum market-share.
• And, the company was pretty much successful in such efforts.
Companies like Titan that are growing and expanding have also
been forced to enlarge their HRP programs. A company which has
grown from profits of 10 crores to about 1000 crores in less than 10
years, with total revenues touching the 9000 crore mark, the
company has required large number of people of various skill-sets,
at a rapid pace.
49. b. Human Resource Inventory:
• The current human resource inventory of a company has an
impact on the HRP programs. Every company tries to ensure
diversity in terms of skill-sets, gender-mix etc. The current set
of employees is used as the reference set for a company’s new
demand for human resource.
50. c. Human Resource Mobility:
• The human resource mobility both within and outside the firm
has an impact on its HRP programs. The internal mobility is
primarily due to growth whereas the external mobility is due to
attrition. High mobility rates shall mean the need to replenish
the human resource loss rapid-pace. This mobility or rather the
cause of mobility differs from industry to industry.
51. Human Resource Planning Process
• Human resource planning is a process through
which the right candidate for the right job is
ensured. For conducting any process, the
foremost essential task is to develop the
organizational objective to be achieved
through conducting the said process.
• Six steps in human resource planning are
Next slide
53. • 1. Analysing Organizational Objectives:
• The objective to be achieved in future in various fields such as
production, marketing, finance, expansion and sales gives the
idea about the work to be done in the organization.
• 2. Inventory of Present Human Resources:
• From the updated human resource information storage
system, the current number of employees, their capacity,
performance and potential can be analysed. To fill the various
job requirements, the internal sources (i.e., employees from
within the organization) and external sources (i.e., candidates
from various placement agencies) can be estimated.
54. • 3. Forecasting Demand and Supply of Human Resource:
• The human resources required at different positions according to
their job profile are to be estimated. The available internal and
external sources to fulfill those requirements are also measured.
There should be proper matching of job description and job
specification of one particular work, and the profile of the person
should be suitable to it.
• 4. Estimating Manpower Gaps:
• Comparison of human resource demand and human resource
supply will provide with the surplus or deficit of human resource.
Deficit represents the number of people to be employed, whereas
surplus represents termination. Extensive use of proper training
and development programme can be done to upgrade the skills of
employees.
55. • 5. Formulating the Human Resource Action Plan:
• The human resource plan depends on whether there is deficit or
surplus in the organization. Accordingly, the plan may be finalized
either for new recruitment, training, interdepartmental transfer in
case of deficit of termination, or voluntary retirement schemes and
redeployment in case of surplus.
• 6. Monitoring, Control and Feedback:
• It mainly involves implementation of the human resource action
plan. Human resources are allocated according to the requirements,
and inventories are updated over a period. The plan is monitored
strictly to identify the deficiencies and remove it. Comparison
between the human resource plan and its actual implementation is
done to ensure the appropriate action and the availability of the
required number of employees for various jobs.
56. Human Resource Planning at Different
Levels
• Human resource planning is done at various levels for
their own purposes by various institutions. There are
various levels of human resource planning in an
industrial enterprise:
• National Level
• Sectoral Level
• Industry Level
• Unit Level
• Departmental Level
• Job Level
57. • 1. National Level: Generally, central government plans for human
resources for the entire nation. It anticipates the demand for and supply
of human requirements at the national level.
2. Sectoral Level: Central and state governments also plan human resource
requirements at sectoral level. It tries to satisfy needs of some particular
sectors like Agriculture Sector, Industrial Sector and Service Sector.
•
• 3. Industry Level: This level of planning is done to suit manpower needs of
a particular industry such as Engineering, Heavy Industries, Paper Industry,
Consumer Goods Industries. Public Utility Industries, Textile,
Cement/Chemical Industries etc.
•
58. • 4. Departmental Level: This level of planning is done to
suit the manpower needs of a particular department in
a company e.g. Marketing Department, Production
Department. Finance Department, etc.
• 5. Job Level: This level of planning fulfills the human
resource needs of a particular job family within
department. For example, the requirement of number
of sales executes in the marketing department.