Human Resource

Management

By Shweta Bambuwala
• Anagram Finances

• Started as a small organization with only 50 workers 10 yrs ago

• Mr Patil a 12 passed man employed people who he knew and who had
reasonable capabilities to perform.
• No formal recruitment process followed
• His Son an MBA wants to expand.
• An HR professional hired advises to discontinue old 50 workers.
• The 50 workers rise in protest.
• Decision was reconsidered and son decides to give some less important
jobs which does not involve much skill and decision making.
• Workers refused to accept.
• DECIDE
Human Resource Management at Work
• What Is Human Resource Management (HRM)?
• The policies and practices involved in carrying out the “people” or human
resource aspects of a management position, including recruiting, screening,
training, rewarding, and appraising.

• Human resource management is concerned with policies and practices that

ensure the best use of the human resources for fulfilling the organizational
and individual goals.

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Human Resource Management at Work
Acquisition

Fairness Training

Human
Resource
Management
Health and Safety (HRM) Appraisal

Labor Relations Compensating

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 Objectives of HRM
• To Take care of the work life of the employees
• To act as liaison between the top management and the employees
• To offer training
• To devise employee benefit schemes for developing skills, improving
employee motivation and group morale
• To ensure and enhance the quality of work life
• To help keep up ethical values and behavior amongst employees
 Scope of human resource management
• Personnel or labour aspect deals with HR planning,
recruitment, selection, placement, training and
development, remuneration, etc.
• Welfare aspect deals with working conditions and
amenities such as canteen, rest-rooms, etc.
• Industrial relations aspect deals with union–management
relations like collective bargaining, grievance and
disciplinary actions, etc.
 Qualities of an HR manager

• Knowledge
• Intelligence
• Communication skills
• Objectivity and fairness
• Leadership and motivational qualities
• Emotional maturity and
• Empathy
Human Resource Managers’ Duties
Line Function
Coordinative Function
Line Authority
Functional Authority
Implied Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

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HR Manager’s Proficiencies
1. HR proficiencies

2. Business proficiencies

3. Leadership Proficiencies

4. Learning proficiencies
 Line Versus Staff Authority of HRM
• Line manager: Empowered to direct the work of the
people assigned to them
• Staff Advisor: play important role in advising and
assisting the line managers.

General
Manager

Pro. Manager HR manager Sales

Manager
 Line manager’s Responsibility
• Placing Right person on the right job
• Starting new employees on the organization
• Training the employees for the jobs that are new
• Improving the job performance of each person
• Gaining creative cooperation and developing smooth working
relationship
• Interpreting the policies and procedures of the company
• Controlling the labour cost
• Developing the abilities of each person
• Creating and maintaining the department morale
• Protecting the employees health and physical condition
The Changing Environment of Human
Resource Management
Globalization Trends

Technological Trends

Changes and Trends in Human

Resource Management

Trends in the Nature of Work

Workforce Demographic Trends

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 The Changing Role of
Human Resource Management
Strategic Human Resource
Management

Managing with the HR Scorecard New Responsibilities for HR Creating High- Performance
Process Managers Work Systems

Measuring the HRM Team’s

Performance

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The Strategic Management process
• Strategy:- Long term plan to balance internal strengths and weakness with its
external opportunities and threats to maintain a competitive advantage.

• Strategic Management:- The process of identifying and executing the

organization’s mission by matching it’s capabilities with the demands of its
environment.
The Strategic Management Process
Types of Strategies
• Corporate strategy
1. Diversification
2. Vertical integration
3. Consolidation
4. Geographic Expansion

• Competitive Strategy
1. Cost Leadership
2. Differentiation
3. Focusers

• Functional Strategy
Achieving Strategic fit
 Strategic Human Resource
Management
• Strategic Human Resource Management
– The linking of HRM with strategic goals and
objectives in order to improve business
performance and develop organizational cultures
that foster innovation and flexibility.
• Involves formulating and executing HR systems—HR
policies and activities—that produce the employee
competencies and behaviors that the company needs
to achieve its strategic aims.

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Creating the Strategic Human Resource
Management System

Components of a Strategic
HRM System

Human Resource Human Resource Employee Behaviors

Professionals Policies and Practices and Competencies

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Three Important Strategic HR Tools

Source: Adapted from Brian Becker et al., The HR Scorecard: Linking People, Strategy, and P
The HR Scorecard
Shows the quantitative standards, or “metrics” the
firm uses to measure HR activities.
Measures the employee behaviors resulting from
these activities.
Measures the strategically relevant organizational
outcomes of those employee behaviors.
 Five Sample HR Metrics

HR Metric* How to Calculate It

Absence rate # of days absent in month

× 100
Average # of employees during month × # of workdays

Cost per hire Advertising + agency fees + employee referrals + travel cost of
applicants and staff + relocation costs + recruiter pay and benefits

Number of hires

HR expense HR expense
factor
Total operating expense

Time to fill Total days elapsed to fill job requisitions

Number hired

Turnover rate Number of separations during month

× 100 3–21
Average number of employees during month
Management Challenges for Indian CEOs
A study among Indian CEOs identified the following challenges:
• Creating a high-performance culture
• Retaining talent
• Recruiting
• Moving from a patriarchic and hierarchical management style to a more
team-based, informal organizational culture
• Linking training with performance
• Compensating knowledge workers
• Building interpersonal relationships/managing conflict
• Going global

Source: Aneeta Madhok, “Similar Challenges” cited by Robert J. Grossman in “HR’s Rising Star in India,” available at
http://www.shrm.org/india.
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