INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

FAMOUS SAYING ….

"When people go to work, they shouldn't have to leave their hearts at home.”

Betty Bender

"The world is full of willing people, some willing to work, the rest willing to let them."

Robert Frost

“You are what you do, not what you say you'll do.”
C.G. Jung

SYNOPHSIS

 Important Terms
 Evolution of HRM
 Evolution of HRM In India
 Introduction to HRM
 Importance of HRM
 Definition
 Scope of HRM
 Objectives of HRM
 Function of HR
 Role of HR Manager
 Interdisciplinary Approaches
 Approaches to HRM

IMPORTANT TERMS:
Human Resource Management – It is a process of making the effective use of human resource so that
the set of objectives or set goals can be achieved.

Human Resource Development- It includes process related to development of person to their maximum
potential.

Personal Management – It helps to maintain the rules & regulation, principle & policies and also helps in
managing the people.

EVOLUTION OF HRM:

1.The Report of the Royal Commission on Labor in India:

Report of the Royal Commission on labor in India (1929-31) which recommended the appointment
of labor officers to deal with recruitment in order to check corrupt practices in industries in India,
particularly in areas of selection of workers.

2. Appointment of Labour Officers:

Labour officers were entrusted with the responsibility of promoting welfare activities. They
functioned as industrial relations officers to handle grievances. The Bombay Mill Owners Association in
Bengal appointed Iabour officers to settle grievances and disputes of their organization .

3. The Second World War:

During the Second World War, labour were taken to support for the war and they were handling
welfare and labour administration. They were to deal with working conditions, canteens, ration shops,
recreation facilities, medical facilities, workers’ housing etc. The Second World War resulted in welfare
officers being appointed by government as well as industry. The function of the welfare officers included
welfare activities, personnel activities and industrial relations.

4. Enactment of Industrial Disputes Act:

The enactment of the Industrial Disputes Act 1947 made education compulsory. This made the
welfare officer handle disputes and educate relating to conditions of service, wages, benefits etc.

The welfare officer thus became industrial relations officers. As a result employers employed welfare
officers with a legal background.
5. Enactment of Factories Act:

Section 49 of the Factories Act 1948 made it obligatory for factories employing 500 or more workers
to appoint welfare officers.

A welfare officer had a list of duties laid down for him. Thus, they had to perform activities concerned
with welfare, personnel administration and industrial relations.

6. 1960 And After:

Till 1960, recruitment was untouched by law but the rapid growth of industry and the consequent
demand for skilled and semi-skilled workers led to the government enacting the Employment Exchange
Act, 1959, to regulate recruitment of workers and the Apprentice Act, 1961, to regulate the training of
workers to some extent.

INTRODUCTION TO HRM:

In the rapidly ever changing management scenario of today human resource management has a crucial
role to play. It is the HR which provides an edge to the organization in such a complex environment.

Human Resource is concerned with the human beings in the organization. For an organization manpower
is a asset not a liability.

DEFINATION:

HRM is define as“planning, organizing, directing, controlling of procurement, development,

compensation, integration , maintenance and separation of human resources to the end that individual,
functional ,organizational and social objectives are achieved.

Edwin Flippo

Human resource management is the recruitment, selection, development, utilization of and

accommodation to human resources by the organizations.

French Wendell

Human resource management is the process of increasing knowledge, skills, capabilities and positive
work attitude and values of all people working at all levels in a business undertaking.
 M.N.Khan

IMPORTANCE OF HRM:

1. Effective Utilization of Resources

2. Organizational Structure

3. Development of Human Resources

4. Respect for Human Beings

5. Goal Harmony

6. Employee Satisfaction

7. Employee Discipline and Moral

8. Organizational Productivity

9. Facilitates professional growth

10. Better relations between union and management

11. Helps an individual to work in a team/group

12. Identifies person for the future

13. Allocating the jobs to the right person

SCOPE OF HRM:
 Human resources planning: - Human resource planning or Human Resource Planning refers to a
process by which the company to identify the number of jobs vacant, whether the company has
excess staff or shortage of staff and to deal with this excess or shortage.

 Job analysis design: - Another important area of Human Resource Management is job analysis.
Job analysis gives a detailed explanation about each and every job in the company.

 Recruitment and selection: - Based on information collected from job analysis the company
prepares advertisements and publishes them in the newspapers. This is recruitment. A number
of applications are received after the advertisement is published, interviews are conducted and
the right employee is selected thus recruitment and selection are yet another important area of
Human Resource Management.

 Orientation and induction: - Once the employees have been selected

an induction or orientation program is conducted. This another important area of Human
Resource Management. The employees are informed about the background of the company,
explain about the organizational culture and values and work ethics and introduce to the other
employees.

 Training and development: - Every employee goes under training program which helps him to
put up a better performance on the job. Training program is also conducted for existing staff that
have a lot of experience. This is called refresher training. Training and development is one area
where the company spends a huge amount.

 Performance appraisal: - Once the employee has put in around 1 year of service, performance
appraisal is conducted that is the Human Resource department checks the performance of the
employee. Based on these appraisal future promotions, incentives, increments in salary are
decided.

 Compensation planning and remuneration: - There are various rules

regarding compensation and other benefits. It is the job of the Human Resource department to
look into remuneration and compensation planning.
  Motivation, welfare, health and safety: - Motivation becomes important to sustain the number
of employees in the company. It is the job of the Human Resource department to look into the
different methods of motivation. Apart from this certain health and safety regulations have to be
followed for the benefits of the employees. This is also handled by the HR department.

 Industrial relations: - Another important area of Human Resource Management is maintaining

co-ordinal relations with the union members. This will help the organization to
prevent strikes lockouts and ensure smooth working in the company.

OBJECTIVE OF HUMAN RESOURCE MANAGEMENT:

 Management would be able to understand there people better.

 Management would be able to get a great sense of accomplishment through the work.

 Good worker & management relationship would be possible.

 A situation would be created in the organization for the employees to enjoy their work and gain
substantial job satisfaction.

 Organizational efficiency & workers productivity would be increased.

 Develops better organizational climate and culture.

 There would be good sense of fulfillment & accomplishment .among the employee

HRM OBJECTIVES:

HRM Objectives Supporting Functions

Societal Objectives Legal Compliance

Reservation in Hiring Benefits

Union Management Relations

Organizational Objectives HRP

TATA Employee Relations

Selection

Training and Development

Appraisal

Placement

Assessment

Functional Objectives Appraisal

Reliance – KRA based on PMS & career mapping exercise, Placement

Assessment

Personal Objectives Training and Development

Eg- Motorola– a development Appraisal, Placement, Compensation

Center created for employees, team bldg

FUNCTION OF HRM:

ROLE OF HR MANAGER:

1. Lead and direct the Human Resource team to deliver a comprehensive HR service to the business
2. Maintain Employee Relation, managing absence, disciplinary, grievances, sickness etc.

3. Measure employee satisfaction and identify areas that require improvement

4. Performance Management and coaching managers on performance

5. Providing guidance on development for managers and their teams

6. Implementing the training and development agenda

7. Identify areas that need attention and improvement

8. Taking overall responsibility for recruitment and retention activity and campaigns

9. Reward advice and support employees on company benefits

10. Implementation of new HR policies, procedures and processes

11. Ensure all company policies and procedures are up to date with current employment law.

12. Ensure line managers are up to date with changes in any policies.

13. Working with senior managers, coaching them and advising on all people issues

14. Deal with complex disciplinary/grievance and HR issues, using HR and company knowledge advising
appropriate decision making skills

15. Managing HR budgets

HUMAN RESOURCE MANAGER APPROACHES:

1. Commodity Approach
2. Productivity Approach

3. Mechanical Approach

4. Social System Approach

5. Human Relation Approach

6. Human Resource Management Approach

1. COMMODITY APPROACH: The attitude of the owners and managers was to treat the worker as
commodities to be purchased, used and replaced as per the need.

2. PRODUCTIVITY APPROACH: This approach is also known as Scientific Management Approach. In

this approach workers are regarded as the important factors for increasing productivity of any
industrial unit.

3. MECHANICAL APPROACH: The approaches of employers towards workers are similar to their
approach towards machines. They use the employee for extracting maximum work from them
and when a worker is unable to give the expected amount of output he was replaced with a new
employee or worker.

4. SOCIAL SYSTEM APPROACH: It was regarded that the workers work together by developing
social system for them .The attitude of the employers towards workers or employee was as a
child .Hence the employers were expected to take care of their employees as parents take care
of their child .

5. HUMAN RELATION APPROACH: It is based on the acceptance that people differ from each other
and hence cannot be treated as same.

6. HUMAN RESOURCE MANAGEMENT APPROACH: It is based on the assumption that employees

are not regarded as cost but they are regarded as resource which can be used for the success of
the organization.
CHALLENGES BEFORE THE HR MANAGER:

1. Retention of the employees

2. Multicultural work force

3. Women in the work force

4. Handicapped employees

5. Retrenchment for employees

6. Change in demand of government

7. Initiating the process of change

 MOTIVATION

SYNOPYSIS:

 Introduction

 Definition

 Basic Motivation

 Types of Motivation

 Importance of Motivation

 Steps of Motivation

 Theories of Motivation

 Motivational Strategies

 Incentive Schemes

 Employee engagement

INTRODUCTION:

Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives
within the individuals. It is the process of stimulating people to actions to accomplish the goals.
Motivation is a productivity factor in an industry. The most important task of the management is to
get the work done by the subordinates & achieve results. Getting the work done depends mainly on
 whether a person have been motivated to do it or not .Motivating a worker is to create a desire on
the part of the worker to do better in his present performance .

DEFINITATION:

Motivation means a Process of stimulating people to action to accomplish desired goals.

OR

Motivation can be defined as a willingness to expand energy to achieve a goal.

BASIC MOTIVATION:

Motivation comes from performing the work.

Intrinsic Motivation: behavior performed for its own sake. Eg – Sense of achievement, Curiosity,
Interest, Pride – Inside the body.

Extrinsic Motivation: behavior performed to acquire rewards. Eg – Money, Grades, Career, Praise,
Exams – Outside the body.

TYPES OF MOTIVATION:

1. Positive Motivation – Makes people willing to do work in a better way.

2. Negative Motivation – Where people work in fear they produce minimum out of maximum.

3. Primary Motive - Physiological - Hunger, Sleep, Avoidance of Pain.

- Biological – Sex.

4. General Motive - Curiosity Motive, Manipulation Motive, Activity Motive, Affection Motive.

5. Secondary Motive - Power Motive, Achievement Motive, Affiliation Motive, Security Motive, Status
Motive.
 IMPORTANCE OF MOTIVATION:

1. To take initiative

2. To show curiosity

3. To work willingly & efficiently

4. To work in disciplined manner

5. To take interest in their work

6. To take pride in their job

7. To be responsible and loyal

8. To have job satisfaction

9. To contribute their best

10. To achieve their personal & organizational objective

STEPS IN MOTIVATION:

1. Sizing Up – This step mainly involves in understanding of different needs of people. By assessing the
needs one can determine what motivate them.

2. Preparing a Set of Motivating Tools – This list of motivators should be prepared based on the
revealed needs of the people.

3. Selecting and Applying Motivators – Out of the list of the motivator few should be selected and
applied wherever and whenever they are needed.

4. Feedback – Having applied the motivators it is important to find out how effective had a particular
motivator been.
THEORIES OF MOTIVATION:

1. Scientific Management Theory

2. Human Relation Theory

3. Carrot and Stick Theory

4. Theory X and Theory Y

5. Maslow’s Need Hierarchy Theory

6. Expectancy Theory

1. SCIENTIFIC MANAGEMENT - Principles of scientific management emphasis that the employees

should be motivated through salary.

2. HUMAN RELATIONS - Human Relations emphasis that the employees should be motivated by
allowing them to work in groups.

3. CARROT & STICK THEORY- This theory advocates that people are motivated to work under two

conditions:-

a) When they are offered rewards

b) When they are penalized or punished

4. Theory X and Theory Y –

5. Maslow’s Need Hierarchy Theory –

 a) Physiological Needs - air, food, drink, shelter, sex, sleep, etc.

b) Safety Needs - protection, security, order, law, limits, stability, etc.

c) Social Needs – Belongingness, Love, family, affection, relationships, etc.

d) Esteem needs - self-esteem, achievement, status, prestige, etc.

e) Self-Actualization needs – realizing personal potential, self-fulfillment

6. Expectancy Theory –

a) Expectancy: is the perception that effort (input) will result in a level of performance.

b) Instrumentality: Performance leads to outcomes.

c) Valence : How desirable each outcome is to a person

Expectancy Theory:

High Expectancy (Worker knows that if they try, they can perform)

High Instrumentality (Worker perceives that high performance leads to outcomes)

High Valence (Worker desires the outcomes resulting from high performance)

MOTIVATIONAL STRATEGIES:

1. Set goals but be sure they are realistic and achievable

2. Establish rewards for progress toward your goals.

3. Expect set-backs and when they happen, re-direct but Don’t give up.

4. Use the power of positive thinking and believe in your employee.

5. Tell others what you are trying to accomplish and seek support from loved ones.

6. Learn to say no to options and distractions that deter you from your goal.

7. Establish routine and regular exercise; meditation, prayer or yoga, even if it is only 15 minutes a day to
start. This will help you to cultivate discipline.

8. Spend time reflecting or talking to others about what has stopped you from achieving your goals in
the past.

9. Post inspirational quotes in prominent places about what you want to achieve.

10. Get professional help and support

11. Practice extreme self care. Good health is essential to positive thinking and feeling, which will take
you a long way toward achieving your goals.

Pay-for-Performance: Incentive SCHEMES:

A monetary gift provided to an employee based on performance, which is thought of as one way to
entice the employee to continue delivering positive results.

TYPES OF INCENTIVE SCHEMES:

A ) INDIVIDUAL –

1 Piecework

2 Standard hour plan

3 Bonuses
4 Merit pay

5 Lump-sum merit pay

6 Incentive awards

7 Sales incentives

8 Incentives for professional employees

9 Executive compensation

B) GROUP -

1 Team compensation

2 Scanlon Plan

3 Rucker Plan

4 Improshare

5 Earnings-at-risk plans

C) ENTERPRISE -

1 Profit sharing

2 Stock options

3 Employee stock ownership plans (ESOPs)

EMPLOYEE MORALE

Keep Moral High