INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT
“ HIRE THE BEST. PAY THEM FAIRLY
COMMUNICATE FREELY. PROVIDE
CHALLENGES AND REWARDS.
GET OUT OF THEIR WAY.
THEY’LL KNOCK YOUR SOCKS”.
- MARY ANN ALLISON
HUMAN RESOURCE MANAGEMENT
▪ Human resource management is the process of bringing
people and organizations together so that the goals of each
one are met.
▪ HRM is the art of procuring, developing and maintaining
competent work force to achieve the goals of an organization
in an effective and efficient manner.
NATURE OF HRM
❖ Pervasive force: HRM is present in all enterprises. It permeates all levels of
management in an organization. All managers are human resource managers.
For example: At Infosys, every manager is expected to pay attention to the
development and satisfaction of subordinates.
❖ Action oriented: HRM focuses on actions, rather than on record keeping and
written procedures. It aims to move closer to the hearts of people and
resolving any conflicts or securing cooperation by solving their problems
through employee friendly policies .
❖ Individually oriented: HRM focuses to help the employees to develop their
potential completely and to encourage them to give the best towards the
organization. Every attempt is made to make them feel important.
❖ People oriented: HRM is all about people at work, both as individuals and
groups. It tries to put people on assigned jobs in-order to produce excellent
results and in-turn rewarding them for the excellent work done.
❖ Future oriented: An effective HRM prepares people for current as well as future
situations in-order to cope up with the dramatic changes that happens in an
organization.
❖ Development oriented: HRM intends to develop the full potential of employees
by providing them with training programs to sharpen and improve their skills.
❖ Integrating mechansism: HRM tries to maintain proper integration and cordial
relations between people working at various levels in the organization.
❖ Comprehensive function: HRM is basically a method of developing potentialities
of employees so that they get maximum satisfaction out of their work and give
their best efforts to the organization.
❖ Auxiliary service: HR departments exists to assist and advice the line or
operating managers to do their personnel work more effectively. HR manager
acts as a specialist advisor.
❖ Interdisciplinary function: HRM is a multidisciplinary activity , it utilizes
knowledge and inputs drawn from psychology, sociology, anthropology,
economics etc..
❖ Continuous function: HRM is not a one shot deal. It cannot be practiced only
one hour or each day or one day in a week or so. HRM is a continuous
function , it requires constant alertness and awareness of human relations.
SCOPE OF HRM
The scope of HRM is very wide. The Institute of Personnel Management has
specified the scope of HRM as:
▪ Personnel aspect: This is concerned with manpower planning, recruitment,
selection, placement, transfer, promotion, training and development, layoff ,
remuneration, incentives, productivity etc..
▪ Welfare aspect: It deals with working conditions and amenities such as
canteens, crèches, rest and lunch rooms, housing, transport, medical
assistance, education, health and safety, recreation facilities etc..
▪ Industrial relations aspect: This includes union management relations, joint
consultation, collective bargaining, grievance and disciplinary procedures ,
settlement of disputes etc…
OBJECTIVES OF HRM
◦ To help the organization reach its goals: HR department in an
organization exists to achieve the goals of the organization and if it does
not meet its purpose, the HR department will wither and die.
◦ To employ the skills and abilities of the workforce efficiently: The primary
purpose of HRM is to make people’s strength productive and to benefit
the customers, stakeholders and employees. It includes keeping the
employees happy and to encourage them to do anything that makes the
customers happy.
◦ To provide the organization with well trained and well motivated
employees: HRM requires that employees be motivated to exert their
maximum efforts , that their performance be evaluated properly for
results and that they be remunerated on the basis of their contributions
towards the organization.
◦ To increase to the fullest the employees job satisfaction and self
actualization: HRM tries to prompt and stimulate every employee to
realize his potential. Suitable programs are designed aiming at
improving the Quality of Work Life (QWL).
◦ To develop and maintain a Quality of Work Life: HRM aims at
developing and maintaining Quality of Work Life , without the
improvement of QWL , it is difficult to improve the organizational
performance.
◦ To communicate HR policies to all the employees: It is the
responsibility of HRM to communicate the options and feelings of
customers, non customers, regulators and other external public as well
as understanding the views of internal human resources.
◦ To be ethically and socially responsive to the needs of the society:
HRM must ensure that organizations manage, human resources in an
ethical and responsible manner through ensuring compliance with legal
and ethical standards .
IMPORTANCE OF HRM
❑ At the enterprise level:
o Good human resource practices can help in attracting and retaining the best
people in the organization.
o It helps in training people for challenging roles , developing right attitude towards
the job and the company , promoting team spirit among employees and
developing loyalty and commitment through appropriate reward schemes.
❑ At the individual level:
o It promotes team work and team spirit among the employees.
o It offers excellent growth opportunities to people who have the potential to rise .
o It allows people to work with diligence and commitment.
❑ At the society level :
o Employment opportunities multiply.
o Scarce talents are put to best use.
❑ At the national level:
o People with right skills , proper attitudes and appropriate values help
the nation to get ahead and to compete with the best in the world
leading to better standard of living and better employment.
STRATEGIC HUMAN RESOURCE
MANAGEMENT
SHRM is built around three important propositions:
◦ The human resources of a firm are a major source of competitive
advantage, people can make or break an organization.
◦ Successful organizational performance depends on a close fit between
business and human resource strategy.
◦ Individual HR strategy should cohere by being linked to each other to
offer mutual support.
SHRM involves the development of consistent, aligned collection of
practices, programs and policies to facilitate the achievement of the
organizations strategic goals.
TRADITIONAL HR VERSUS STRATEGIC
HR
POINT OF DISCUSSION TRADITIONAL HR STRATEGIC HR
FOCUS EMPLOYEE RELATIONS PARTNERSHIP WITH INTERNAL AND
EXTERNAL CUSTOMERS
ROLE OF HR TRANSACTIONAL CHANGE FOLLOWER TRANSFORMATIONAL CHANGE
AND RESPONDENT LEADER AND INITIATOR
INITIATIVES SLOW, REACTIVE, FRAGMENTED FAST, PROACTIVE AND INTEGRATED
TIME HORIZON SHORT TERM SHORT, MEDIUM AND LONG(as
required)
CONTROL BUREAUCRATIC-ROLES, POLICIES, ORGANIC-FLEXIBLE, WHATEVER IS
PROCEDURES NECESSARY TO SUCCEED
JOB DESIGN TIGHT DIVISION OF LABOUR; BROAD, FLEXIBLE, CROSS TRAINING
INDEPENDENCE , SPECIALIZATION TEAMS
POINT OF DISCUSSION TRADITIONAL HR STRATEGIC HR
KEY INVESTMENTS CAPITAL, PRODUCTS PEOPLE, KNOWLEDGE
ACCOUNTABILITY COST CENTRE INVESTMENT CENTRE
RESPONSIBILITY FOR HR STAFF SPECIALISTS LINE MANAGERS
MODEL OF STRATEGIC HUMAN
RESOURCE MANAGEMENT
Laws regulating environment
External environment
1. Competition
2. Government policy
3. Technology
4. Market trends HR strategy
5. Economic factors 1. Procurement OUTCOMES
1. HR planning
1. Increased
2. Designing of jobs performance
1. Development
and work systems
1. Customer
Corporate Business strategy 3. What workers do? satisfaction
strategy 4. What workers need?
1. Performance
5. How jobs interface management 1. Employee
with others satisfaction
Internal environment
1. Compensation
1. Culture 1. Enhanced
2. Structure shareholder value
3. Policies
4. Skills HR information 1. Labour relations
5. Past strategy systems
EVOLUTION OF CONCEPT OF HRM
CONCEPT WHAT IS IT ALL ABOUT
The commodity concept Labour was regarded as a commodity to be
bought and sold. Wages were based on
demand and supply and government did
very little to protect workers.
The factor of production concept Labour is like any other factor of production i.
e. money, material, land etc. Workers are like
machine tools.
The goodwill concept Welfare measures like safety, first aid, lunch
room, rest room will have positive impact on
workers productivity.
The paternalistic concept Management must assume a fatherly and
protective attitude towards employees.
Paternalism does not mean merely providing
benefits but it means satisfying various needs
of the employees.
CONCEPT WHAT IS IT ALL ABOUT ?
The humanitarian concept To improve productivity, physical, social and
psychological need of the worker must be
met. Money is less a factor in determining
output than group standards, group
incentives and security. The organization is a
social system that has both economic and
social dimensions.
The human resource concept Employees are the most valuable asset of an
organization. There should be a conscious
effort to realize organizational goals by
satisfying need and aspiration of the
employees.
The emerging concept Employees should be accepted as partners in
the progress of a company. They should have
a feeling that the organization is their own.
The focus should be on human resource
development. Managers must offer better
quality of working life and other opportunities
to people to exploit their potential fully.
PERSONNEL FUNCTION : CHANGING SCENARIO
PERIOD EMPHASIS STATUS ROLES
1920-1930 WELFARE CLERICAL 1.WELFARE
MANAGEMENT ADMINISTRATOR
PATERNALISTIC 2.POLICEMAN
PRACTICES
1940- 1960 EXPANDING THE ADMINISTRATOR 1.APPRAISER
ROLE OF COVER 2.ADVISOR
LABOUR, WELFARE, 3.MEDIATOR
INDUSTRIAL 4.LEGAL ADVISOR
RELATIONS AND 5.FIRE FIGHTING
PERSONNEL
ADMINISTRATION
1970- 1980 EFFICIENCY, DEVELOPMENTAL 1.CHANGE AGENT
EFFECTIVENSS 2. INTEGRATOR
DIMENSIONS 3. TRAINER
ADDED EMOHASIS 4.EDUCATOR
ON HUMAN VALUES,
ASPIRATIONS,
DIGNITY,
USEFULNESS
PERIOD EMHASIS STATUS ROLES
1990- 2000 INCREMENTAL PROACTIVE, GROWTH 1.DEVELOPER
PRODUCTIVITY GAINS ORIENTED 2.COUNSELOR
THROUGH HUMAN 3.COACH
ASSETS 4.MENTOR
5.PROBLEM SOLVER
POST 2000 AGGRESSIVE COST FIGHT FOR SURVIVAL • COMPETE WITH
CUTTING INORDER TO TO LIVE FOR THE BEST AND WIN
COMPETE IN GLOBAL ANOTHER DAY
ENVIRONMENT
SHIFTS IN HR MANAGEMENT IN INDIA
TRADITIONAL HR PRACTICE EMERGING HR PRACTICE
• Administrative role • Strategic role
• Reactive • Proactive
• Separate, isolated from company mission • Key part of organizational mission
• Production focus • Service focus
• Functional organization • Process - based organization
• Individuals encouraged, singled out for • Cross- functional teams, teamwork most
praise, rewards important
• People as expenses • People as key investments/ assets
