Human Resource Management (HRM)

Module - 1
 What is HRM?
• Human Resource Management (HRM) is the strategic approach to
managing people in an organization to maximize performance and achieve
business goals.
• Human resource management (HRM) is the process of managing an
organization's employees to help the organization achieve its goals. HRM
involves recruiting, developing, and retaining employees.
Nature Of HRM
 Why is HRM Important to All Managers?

• HRM is crucial for all managers as they are responsible for

leading teams and ensuring employee effectiveness.

• Key Reasons:
• • Helps in hiring and retaining the right talent.
• • Enhances employee motivation and productivity.
• • Ensures compliance with labor laws.
• • Manages workplace conflicts effectively.

• Example: A sales manager needs to understand HR policies

to motivate the sales team and reduce turnover.
Objectives Of HRM
 Line and Staff Aspects of HRM
In Human Resource Management (HRM), line and staff aspects refer to the roles and
responsibilities of different managerial positions in an organization.

Line Managers:
• Directly responsible for achieving company goals, making decisions, and managing
employees.
• Have decision-making authority over subordinates.
• Example : In a retail company, a Sales Manager has line authority over the sales
team. This means: The Sales Manager sets sales targets for the team and ensures
they meet their goals.

Staff Managers:
• Provide advice, expertise, and support to line managers.
• They do not have direct authority over employees.
• Handle specialized HR functions like recruitment and training.
• Example : The HR Manager advises department heads on recruitment, training,
and employee relations but does not directly manage the employees in those
departments.
 Line Versus Staff Authority
Line Authority:
• Line managers have the authority to direct work, make decisions, and
issue orders to employees
• Line managers are responsible for achieving the organization's goals
• Line managers act as a liaison between the company and employees.
• Line managers may be department heads, such as finance or marketing
managers.

Staff Authority:
• Staff managers provide support and advice to line managers.
• Staff managers may support multiple departments.
• Staff managers may work in specialized areas like Human Resources,
Research & Development, and Legal.
• Staff managers may include roles like Human Resource Managers & Legal
advisors.
 Line Manager’s HRM Responsibility
• Placing the right person in the right job.
• Starting new employees in the organization. ( Induction or
Orientation)
• Training and developing team members.
• Improving job performance of each person.
• Gaining creative cooperation and developing smooth working
relationships.
• Interpreting the company’s policies and procedures.
• Controlling labour costs.
• Developing the abilities of each person.
• Creating and maintaining departmental morale.
• Protecting employees’ health and physical conditions.
 ASPECTS LINE FUNCTIONS STAFF FUNCTIONS

Direct authority over

Advisory role, no direct
Authority employees and their
authority over employees.
performance.

Day-to-day management, Supportive, strategic, policy

discipline, performance. development, training.
Responsibilities

Focus Guidance, consultation,

and specialized knowledge.
Operational activities and
employee management.

Example Line managers (e.g., sales HR staff, training managers,

manager, department employee relations
head). specialists.
 Organizing the HRD Responsibilities
• Organizing the Human Resource Development (HRD) responsibilities
involves defining and structuring the various roles and activities within the
HRD function to ensure the effective development and growth of employees.
HRD is essential in improving individual and organizational performance
through training, development, career planning, performance management,
and organizational development.

1. Training and Development (T&D)

• Training and development is the process of enhancing employees' skills,
knowledge, and competencies to improve their performance and prepare
them for future roles. This is one of the core responsibilities within HRD.

2. Career Development and Planning

• Career development focuses on helping employees plan and manage their
careers, while aligning individual goals with the organization’s objectives.
3. Performance Management
• Performance management involves setting clear performance expectations,
providing feedback, and developing employees to improve their overall
contribution to the organization.

4. Organizational Development (OD)

• Organizational development focuses on improving the overall effectiveness
and health of the organization through planned change initiatives.

5. Employee Engagement and Retention

• Employee engagement focuses on fostering a motivated, satisfied, and
committed workforce, while retention aims to minimize turnover by
addressing employee needs.

6. Learning and Knowledge Management

• Learning and knowledge management ensures that employees are
continuously improving their skills and sharing knowledge within the
organization.
 Evolution of HRM
• The evolution of HRM (Human Resource Management) shows the transition from
simple, clerical activities aimed at ensuring compliance and paperwork to a highly
developed and essential business process, enabling the effective management of
people within organizations.

• Initially, it was process-oriented, and its critical activities involved recruitment and
selection, and figuring out clerical job responsibilities. However, as organizations
realized the workforce as a strategic resource, it evolved into a strategic notion of
promoting employee commitment, satisfaction, and performance.

Stages of the Evolution of Human Resource Management

1. Early Personnel Management: Initially, HRM was in its infancy and was primarily
referred to as personnel management. During this era, HRM's role was predominantly
administrative in nature. The primary focus revolved around executing basic tasks like
payroll management, record-keeping, and addressing labor relations. The overarching
objective of personnel management was to ensure strict compliance with labor laws
and maintain workforce stability.
2. Transition to Human Resource Management: The 1980s marked a significant
turning point in the evolution of HRM. During this era, HRM underwent a
remarkable transformation and emerged as a distinct field of study and practice.
Organizations began to realize the strategic importance of effective human
resource management. This transition period included critical HR functions such as
recruitment, training, performance management, and employee development.

3. The Strategic HRM Era: As we moved into the late 20th century and the early
21st century, HRM entered what can be termed as the Strategic Human Resource
Management era. During this phase, HRM evolved into a strategic partner within
organizations. It shifted its focus from being an auxiliary department to becoming a
vital contributor to the overall business strategy.

4. Strategic HRM emphasized aligning HR practices with the broader organizational

objectives. HRM professionals began to actively engage in strategic decision-
making processes, such as talent management, succession planning, and workforce
analytics. Moreover, they played a crucial role in shaping the organizational culture
by fostering collaboration, innovation, and employee well-being.
( AI in HR, Gig Economy, Remote work culture )
 The changing role of HR and its ongoing importance

• Traditionally, the Human Resource Management function dealt with or

provided leadership and advice to deal with all employee-centric issues in
an organization.
• The HR role is evolving from administrative tasks to strategic partnerships,
focusing on employee experience, talent development, and organizational
culture, while maintaining importance in managing workforce needs and
ensuring compliance.
• Technology has changed the workplace in recent years, transforming the
typical HRM role in an organization. Today, the HR department must
navigate emerging technologies, evolving roles, and an ever-changing
workforce.
• In addition, the emphasis on strategic HR practices enables companies to
attract and retain top talent, enhance productivity, and build a strong
employer brand. By aligning HR initiatives with business goals and
objectives, organizations can create a competitive advantage in the
marketplace and achieve sustainable growth.
 Changing role of HR Manager
Employee Well-being Focus
• Prioritizing employee mental health and well-being is at the
forefront of HR strategies. Organizations are offering
counseling services, mental health days, and wellness
programs to support their staff.
Automation Transition
• HR has transitioned from manual tasks to automated
processes, streamlining operations and increasing efficiency.
This shift allows HR professionals to focus on more strategic
initiatives.
Alignment with Business Objectives
• By aligning HR goals with overall business objectives, HR
becomes a strategic partner in decision-making processes.
This alignment ensures that HR decisions contribute directly
to the organization's success.
Talent Management Strategies
• Developing talent management strategies is crucial for
meeting future workforce needs. HR managers must focus
on programs that attract, develop, and retain top talent to
drive organizational growth. In this regard, career
development has become a core function of HRM.
https://youtu.be/ukmC6F0JvQw?si=v4LUUIK3wj1i
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 Technology and the Changing Role of HRM

Cloud-Based Systems
• HR managers are increasingly adopting cloud-based
systems
This to efficiently
transition manage
allows for vast amountsprocesses,
streamlined of data.
remote access leading
management, to information,
to more and improved
informed data
decision-
making.
Self-Service Portals
• Implementing self-service portals provides employees
with directandaccess
benefits, to their
training personal
resources. This information,
empowers
employees and fosters a culture
accountability within the organization. of transparency and
Chatbots for Support
• Utilizing chatbots has revolutionized the HR function
by offering These
employees. quick AI-powered
and personalized
tools cansupport to
efficiently
handle routine inquiries, such as leave requests or
policy clarifications.
Embracing VR and AR for Training
• VR and AR technologies offer immersive simulations for
employee
scenarios intraining.
a Employees
risk-free virtual can practice
environment, real-life
enhancing
their skills effectively.
HRM Issues/ Challenges
 HRM proficiencies/ Skills
• Human resource management plays a pivotal role in shaping an
organization’s success. As HR professionals navigate challenges like remote
work, changing labor laws, and evolving workforce expectations,
mastering key competencies becomes essential.
• Below are the nine most important HR skills, explaining their impact and
offering practical strategies for development.

1. Communication Skills
2. Organization & Team Management
3. Tech Savviness
4. Adaptability
5. Emotional Intelligence
6. Negotiation & Conflict Resolution
7. Ethical Decision-Making and Compliance
8. Compassion
9. Continuous Learning and Growth
 Strategic Human Resource Management
(SHRM)
• Strategic Human Resource Management (SHRM) involves aligning HR practices with
an organization's overall business strategy to optimize the workforce and achieve
long-term goals, focusing on attracting, retaining, and developing talent.
• Strategic human resource management aims to achieve a competitive advantage by
creating value for customers, shareholders, employees, and other stakeholders. The
term “strategy” refers to the organization’s overall plan of action to create value.
 Ethics In HR
• Managing ethics in HR involves creating a culture of integrity and
fairness by establishing clear ethical guidelines, promoting open
communication, ensuring fair practices, and providing ethical training,
all while upholding confidentiality and respecting employee privacy.

• Ethics in HRM is whereby human resource professionals or business

managers help an organization embed and uphold its set values
regardless of levels. This is so that they can build, sustain, and
improve employee trust and relations.

• Ethical behavior in human resources means following rules and

methods that align with moral and ethical values. HR professionals
must act in the organization's and its employee's best interests,
follow laws and regulations, and follow professional standards of
conduct.
 Key Ethical Issues in HR
• Workplace Harassment & Bullying
• Discrimination in Hiring & Promotion
• Unfair Compensation & Benefits
• Employee Privacy Violation
• Unethical Termination
• Excessive Work Pressure & Exploitation
• Conflict of Interest
• Lack of Diversity & Inclusion
• Whistleblower Protection
• Manipulating Employee Performance Evaluations
 Significance of Ethics In HRM
• Maintains good image and good will.
• Good relationships with stakeholders
• Promotes fair competition
• Less Government interference
• Better working environment
• Increased Productivity & Profitability