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CHAPTER
ONE:
INTRODUCTION
TO
HUMAN
RESOURCE
MANAGEMENT
(HRM)
Learning Outcomes
• Define Management & its Primary Functions
• Explain what HRM is
• Describe importance of HRM
• Explain functional areas of HRM
• Challenges of HRM
• Who’s HR Manager?
• Qualities of HR Manager
• Career in HRM
What is Management?
• process of efficiently completing activities with and
through other people to achieve organizational
objectives.
• involves coordinating and overseeing the work
activities of others so that their activities are
completed efficiently (doing things right, output by
input ratio) and effectively (doing the right things).
• process of planning and organizing activities by
leading and controlling employee to achieve its
organizational goals.
Management Functions
• Planning
• defining/setting goals
• establishing strategies to achieve those goals
• developing plans to integrate and coordinate goals
• Organizing
• what tasks/goals to do
• who will do the tasks/goals
• how to do achieve tasks/goals
• who reports to whom
• who makes the decisions
Management Functions cont.…
• Leading
• working with and through people
• motivating subordinates
• resolving group conflicts
• using effective means of communication
• dealing with employees’ behavioral issues
• Controlling
• ensuring no deviation in actual vs. standard
• monitoring, comparing and correcting employees
performance
• ensuring goals are achieved
Management Functions cont.…
• Staffing
• planning manpower need of the organization
• recruiting and selecting
• setting performance standards and evaluating
employees performance
• identifying training and development needs
• providing training and counseling
• managing salaries and wages
• Staffing function of management in real sense human
resource management

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What is HRM?
• a strategic, integrated and coherent approach to the
employment, development and well-being of the
people working in organizations (Michael Armstrong,
2007).
• process of acquiring, training, appraising, and
compensating employees, and of attending to their
labor relations, health and safety, and fairness
concerns (Gary Dessler, 2008).
• process concerned with management of human
energies and competencies for achieving
organizational, objectives through acquisition,
development, utilization, and maintenance functions
(Govind Ram Agrawal, 2011).
• The department or support systems responsible for
personnel sourcing and hiring, applicant tracking, skills
development and tracking, benefits administration and
compliance with associated government regulations -
http://www.entrepreneur.com/encyclopedia/human -resources
• The division of a company that is focused on activities
relating to employees. These activities normally
include recruiting and hiring of new employees,
orientation and training of current employees,
employee benefits, and retention -
http://www.businessdictionary.com/definition/human-resources.html
• process to plan, recruit, select, appraise, train and
manage the manpower of the organization to achieve
the competitive advantage for the organization
Importance of HRM
• to hire right kind of people in an organization
• to ensure training and development of employees
• to appraise employee to assess their performance
• to assess current staffing and project future workforce
needs based on business demands
• to prepare and implement compensation plan for the
employees
• to prepare succession plan and figure who suits best
for any vacant positions
• to ensure compliance with health and safety practice
of the organization
Importance of HRM cont....
• to ensure compliance of organization with labor laws
of the nation
• to motivate employees in an organization
• to maintain good work culture and atmosphere in an
organization
• to resolve the disputes that arises between employees
and employers
• to maintain good public relationship via business
meetings, seminars & workshops, official gatherings
• to provide counseling poor performers in an
organization
Functional Areas of HRM
Functional
Areas of
HRM
Workforce
Planning &
Employment
Business
Management
& Strategy
Employee &
Labor Relation
Compensation &
Benefit
Human Resource
Development
Risk
Management
• understand the mission, vision, values and objectives of
the organization
• interpret internal & external information regarding to
HR that is relevant to organization
• understand the industry and market of the organization
• gain the proper understanding to business strategies of
the organizations
• develop the HR strategies with MVVO in mind
• align HR strategies & organization’s business strategies
• develop action plan and HR strategies to achieve
organizational needs
• educate employees about MVVO
Business Management & Strategy

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• develop a plan, execute and evaluate the plan related to:
• human resource planning
• recruitment & selection (including – screenings,
determining types and phases of interviews)
• hiring and on-boarding employees (along with
orientation programs from different departments)
• performance evaluations and feedbacks
• training and development
• retention strategies
• exit processes
Workforce Planning & Employment
• guiding workplace performance through coaching,
performance evaluations and feedbacks
• identifying areas of improvements
• training and development
• providing career development opportunities
• conducting and implementing succession planning
Human Resource Development
Compensation & Benefits
• compensation and benefit strategies (including – non-
financial benefits and promotions)
• must be adept at designing, implementing and
evaluating financial reward systems and benefit
packages
• create and maintain a cohesive working environment
through initiatives, compliance and collective
bargaining
• ensures corporate needs, rights and objectives
complement workplace conditions/policies and meets
employee right and expectations.
• ensures compliance between organizational
employment policies and labor laws of the nation
• ensures that organization strictly abide by the
prevailing labor laws
• ensure updated know about prevailing labor laws of
nation
Employee & Labor Relations Risk Management
• develops health and safety plans in compliance with the
standards such as OHSAS
• uses disaster and emergency plans, safety guidelines
and training, ergonomically-minded office and
equipment selections and security procedures to
promote employee well-being
• creates employee awareness regarding policies and
expectations through ethical standards, codes of
conduct, programs, education and communication to
protect corporate assets
Challenges of HRM
• 3 basics challenges
• Environmental challenges
• globalization and sustainability of employees
(brain drain)
• shortages of skilled workers
• government laws and rules/regulation
• workforce diversity
• changing business environment
• innovative technology
• competitors’ attracting productive employees
Challenges of HRM cont....
• Organizational challenges
• competitive position of organization
• decentralization of decision making
• organizational restructuring
• need for downsizing
• constant battle with organizational higher-ups
(Top Level Management)
• ego problem/clash
• handling labor unions
• unsupportive colleagues and staff members

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Challenges of HRM cont....
• Individual challenges
• work-life balance
• appropriate matching of people to the organization
• clashing views about ethics and responsibility
• productivity & performance issues
• retention issues
• job insecurity of employees
• compensation and benefit issues
Who is HR Manager
• a person who plans, directs, and coordinates and
oversees the recruitment & selection of new
employees; training and development needs; issues
related to performance of employees; consult with top
executives on strategic planning; and serve as a link
between an organization's management and its
employees. (Google)
• a person who is involved with recruitment, training,
career development, compensation and benefits,
employee relations, industrial relations, employment
law, compliance, disciplinary and grievance issues,
redundancies etc. (http://gradireland.com/careers-
advice/job-descriptions/human-resources-manager)
Qualities of HR Manager
• knowledge about business and industry
• expert of HR fields
• empathy – ability to put oneself in others shoe
• planning and implementing ability
• love for number/data/figures/calculations/analysis/
projections
• self discipline and time management ability
• enthusiasm to learn and share knowledge
• counseling, coaching and mentoring abilities
• good communication and leadership skills
Qualities of HR Manager cont....
• quick decision-making ability
• good negotiation skills
• sound interpersonal skills
• approachable and compassionate
• active listener
• strong research ability
• good coordination and facilitation skills
• habitual learner and practitioner
• jack of all, master for nOne
Career in HRM
S. No. HR Generalist HR Specialist HR Business Partners
1 HR Officer Recruitment & Selection
Works closely with Top
Level Management to
develop strategies that
effects the functioning
and health of
organization in long-
term
2 HR Manager
Performance
Management
3 Chief of HR Training & Development
4 Vice President of HR
Compensation & Benefit
Administrator
END OF CHAPTER ONE