HUMAN RESOURCE

MANAGEMENT
SESSION 1: INTRODUCTION TO HRM
Content
♪ Who, What and Why HR?
♪ Business Model
♪ Introduction, Scope, Importance, HR-Functions
♪ SHRM – Challenges
♪ HR Policy and Practices
♪ HR Functions
♪ HRM Models – Harvard Model and Matching Model
 What is Human Resource Management?
‘HRM is concerned with the most effective use of people to achieve organizational and
individual goals”.

Management
Employee well-being
development and
Managing human training
Responsible
resource in organization
• Hiring
Keeping management
• Payroll
Maintain employees focused on their job
• Benefits
database
• Performance
Hire strategically, hire
• Firing employees
right
 Business Model
Key Activities Customer Customer
Relationship Segment
What key activities Value
Key Partners your value proposition Proposition
need? Customer growth? For who are we
solving the
Who are your Customer Channels
Key Resources problem?
key partners? Needs, Wants,
Problem? Through which
What are the resources Who are the
channels you are going
need foe your business customers?
to target customer?
Revenue Streams
Cost Structure
What is your revenue model?
What are the important cost in your business? Pricing tactics?
Value for your customer money?
 Key Partners
Key Activity
Daimler Chrysler Chrysler – Supply chain partners
Assembling
Daimlers own suppliers
Chrysler engineers Manufacturing

Key Resources Value Proposition

• Mercedes – Benz Revenue
• Spare Parts • M Class SUV
• • SLK
System
Tyers
• Steel • Jeep
• Trucks
• AV System Sales of
Mercedes –
Customer Relationship Channels Benz
And
Showroom Own channels in Europe, North Chrysler
Helpline and South America Cars
Cost Structure
Customer Segment
• Employee Salary
Europe, Asia, America, Latin • Cost of Parts
America • Tyers
• Facility Management
 Introduction to HRM
Human Resource Management is concerned with the most effective use of
people to achieve organizational and individual goals.

HR department is designed to increase employee performance and job

satisfaction in work environment

HR primarily concern with functions of organization – Recruitment,

Selection, Performance Appraisal, Training, Development, Compensation
and Benefits

HR department should focuses on organizational and employee policy and

systems
 Importance of HRM

Importance and Objectives of HRM

• Effective Utilization of Resources

• Employee Wellbeing
• Employee Satisfaction
• Employee Discipline and Moral
• Organizational Productivity
 Nature of HRM
 HRM is universal in nature.
 Focus of HRM is on Action rather than on keeping records, written procedures and
rules.
 HRM focusing on developing people at work both individual and group,
organizational level.
 HRM dept. helps employee to develop the capabilities of the employees.
 HR dept. play supportive role to all functional/operational departments.
 HR dept. brings discipline and compliance among employee to accomplish the
tasks.
 Scope of HRM
Personnel aspect-This is concerned with manpower planning, recruitment,
selection, placement, transfer, promotion, training and development, layoff
and retrenchment, 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 covers union-management relations, joint

consultation, collective bargaining, grievance and disciplinary procedures,
settlement of disputes, etc.
 HR FUNCTIONS
Managerial Functions Operational Functions

Planning Recruitment Training and

and Selection Development
Organizing
Performance
Compensation
Directing Management
and Benefits
System
Coordinating
Employee
Controlling Engagement
 Role of HR Manager
• Policy maker
Administrative/ • Primary Legal Advisor
• Counsellor
Technical Role • Welfare Officer

• Recruiter
• Trainer and Motivator
Operational Role • Liaison officer/ Mediator
• Employee-Employer representative

• Strategic decision maker

• Change Facilitator
Strategic Role • Rule maker
• Discipline and Compliance manager
 HR Policy and Procedure
◦ HR Policies are FORMAL RULES AND PROCEDURES that dictate how certain
matters should be addressed in the workplace including employee rights and duties.
◦ HR Policies are tied to employment law/Labour Law of India.

Need of HR Policy
◦ Make work process more transparent
◦ Prevent misunderstanding which can arise between the employer and employee
◦ Conveys various guidelines which are to be followed within the company
◦ Create benchmark to treat all employees equally and fairly
◦ Proper communication between Employer and Employee
 List of HR Policy
Organizational Policy

◦ Employee Referral Policy HR Department Policy

◦ Leave Policy
◦ ◦ Gadgets Policy – Mobile,
Code of Conduct Policy
Internet etc. ◦ Recruitment and Selection Policy
◦ Whistle Blowing Policy
◦ Job Rotation Policy ◦ Training and Development Policy
◦ Transfer Policy
◦ Performance Appraisal Policy
◦ Late Coming Policy
◦ Compensation Policy
◦ Attendance Policy
◦ Employee Benefit Policy
◦ Dress Code Policy
◦ Employee Engagement Policy
◦ Promotion Policy
◦ Probation and
Confirmation Policy
◦ Travel Policy
 SHRM
◦ Strategic human resource management is the strategic practice of attracting, developing,
rewarding, and retaining employees for the benefit of both the employees as individuals and
the organization as a whole

◦ Importance of SHRM
◦ Manpower Planning Strategy
◦ SWOT Analysis
◦ Gap Analysis
◦ Developing the HR Strategies
◦ Implementing the Strategies in the organization
◦ Evaluating and Controlling the activity
 Models of HRM
◦ Harvard Model - 1984
◦ Fombrun, Tichy and Devanna Model - 1984
◦ Guest Model
◦ Warwick model
◦ Storey Model
Stake Holder Interest
Harvard Model
Stakeholders
Management
Employees group
Government
Community Long-term
HRM Policies consequences
HRM Outcomes
Employee influence Individual well-
Commitment
Situational Factors HR Flow being
Competences
Rewards System Organizational
Cost effectiveness
Employees Work system effectiveness
Business strategy Societal well-being
Management
philosophy
Labour market
Unions
Technology
Laws and regulations
Fombrun, Tichy and Devanna Model - 1984
HR Development

Selection Performance appraisal

Rewards
SHRM Matching Model

Rewards

Performance
Selection Performance
Management

Development
 Positive

Guest Model Commitment

Quality
Performance
Innovation
Quality
Flexibility

HRM HR Behavioral Performance

Strategy HR Practices Outcomes Outcomes Outcomes

Recruitment and selection

Training and development
Motivation
Performance management
Cooperation Financial
system
Organizational Outcomes
Compensation and benefits
citizenship
Profit
ROI
Warwick Model
Storey Model
Belief and
◦ Belief and Assumption Assumption
◦ Strategic Aspects
◦ Line Manager
◦ KeyLevers
Strategic Aspects

Keylevers Line Manager

 Factors Affecting HRM

 Government regulations
 Economic Conditions
 Technological Advancement
 Workforce Diversity
 Socio-cultural environment
 Legal environment