Human Resource

Management
Unit I
 Defining HR and HRM
• HR: ‘The sum total of knowledge, skills, creative abilities,
talents and aptitudes of an organization's workforce, as well
as the value, attitudes and beliefs of the individuals involved”.
• HRM: A combination of people-oriented management
practices that views employees as assets, not costs; and its
main aim is to create and maintain a skillful and committed
workforce to gain competitive advantage.
 Is HRM Important to All Managers?
• It can help you in getting results: through people
• HR for Entrepreneur
• Line Versus Staff Authority
• Line-Staff HR Cooperation
 Why is HRM Important to All Managers?

• Hire the wrong person for the job

• Experience high turnover
• Find your people not doing their best
• Waste time with useless interviews
• Have your company taken to court because of discriminatory actions
• Have your company cited under occupational safety laws for unsafe
practices
• Have some employees think their salaries are unfair and inequitable
relative to others in the organization
• Allow a lack of training to undermine your department’s effectiveness
• Commit any unfair labor practices
 Why is HRM Important to All Managers?

1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
Organising the HR Department’s Responsibilities
• Recruiters
• Job Analyst
• Compensation Managers
• Training Specialists
• IR Officers

The New HR Organisation

• Transactional HR Group
• Corporate HR
• Embedded HR group
– Relationship Managers
– HR Business Partners
• Centre for Expertise Group
– HR Consulting
– Shared Services
The IBM Example
 Nature of HRM

1. A continuous process
2. Concerned with employees: Consists of people-related functions
1. Doables: highly routinised
2. Deliverables: Building of Human Capital
3. Covers all levels and Categories of employees
4. Concerned with the development of human resources
5. Competitive Advantage through people
6. Alignment of HR policies and practices with organization's strategies
7. Applies in all types of organizations: Not confined to business
establishment
8. Application of management principles and functions: Secure cooperation
9. Not the sole responsibility of HR specialist
10. Helps in achieving individual, group, organizational and societal goals
Scope of HRM
 Scope of HRM
The National Institute of Personnel Management has defined the scope as
follows:

• Personnel Aspect: concerned with functions ranging from manpower

planning to separation
– Manpower planning, recruitment, selection, placement, transfer, promotion, training
and development, layoff and retrenchment, remuneration, incentives, productivity
• Welfare Aspect: dealing with working conditions and amenities
– Canteens, crèches, rest and lunch rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities
• Industrial Relations Aspect: covers labor- management relations
– Union-management relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes
 Evolution of HRM
• Chanakya (400 BC)
• Royal Commission of Labor: 1929-31
• WW II
• Calcutta University: 1942
– Diploma in Social Welfare
• Industrial Dispute Act ’47
– IR Officers with Legal Background
• Factories Act ’48
– Welfare Officer (Section 49)
• Apprentices Act ‘61
• Employment Exchange (Compulsory Notification of Vacancies) Act ‘59
Personnel Management Versus HRM
Strategic HRM
 Strategic HRM
• Strategic Management
– Process of Formulating, Implementing and evaluating business strategies to achieve
organizational objectives.
• Strategic management Process
1. Define the Current Business
• Rolex and Casio
• IIMA and IGNOU
2. Perform Internal and External Audit
• Yahoo!
• HMT
• Jet
• SWOT
• Leveraging
3. Formulate a New Direction
• Vision: ‘What we want to become?’ – “Perform with Purpose”
• Mission: ‘What business are we in?’
4. Translate the Mission into Strategic Goals
• “Quality Is Job One” to 1 defect per 10,000 Cars
5. Formulate the Strategy
6. Implement the Strategies
7. Evaluate Performance: Ford-Jaguar-Tata
 Strategic HRM
• Requires abandoning the mindset and practices of “personnel
management” and focusing on strategic issues than operational issues.
• Programmes, Policies and Practices to be aligned with organisational
strategies; Integrated within a larger framework
– Should define an organisation’s architecture
– Conduct an organisational audit
– Identify methods for renovating; Apply best practices
– Take stock of its own work; join forces with line manager
 Strategic HRM
• The Coca-cola (200 Countries, 80% Foreign Rev., 25 Operating Div.)
– Common HR Philosophy
– Internationally minded Executives
• Two week HRM Orientation Sessions

• Colgate-Palmolive
– Developing an International Cadre of Executives
– ‘Euromanagers’
• LG
– Unorthodox Ways
 Strategic HRM: Its Different!
• Responsibility for HRM: Staff Specialists / Line Managers
• Role of HR: Transactional / Transformational
• Time Horizon
• Control: Bureaucratic / Organic
• Job Design: Tight division / Flexible
• Accountability: Cost Center / Investment Center
Strategic HRM: Possible Roles
Strategic HRM: Its Barriers
Strategic HRM: Its Outcomes
Strategic HRM: A Model
 Strategic HRM: For Organisational Excellence

• HR can help deliver organizational excellence by:

– Becoming a partner with senior and line managers in strategy
execution.
– Becoming expert in the way work is organized, delivering
administrative efficiency to ensure that costs are reduced while quality
is maintained.
– Becoming a champion for employees, representing their concerns to
senior management and working to increase employee contributions.
– Becoming an agent of continuous transformation by shaping processes
and organizational culture.
 Strategic HRM: Support Required
• How senior operating management can create an
environment in which HR becomes focused on outcomes
instead of activities:
– Communicate to the organization that the “soft stuff” matters.
– Explicitly define the deliverables from HR, and hold HR accountable for
results.
– Invest in innovative HR practices.
– Upgrade HR professionals.
 Strategic HRM: Changes Required
• To become effective human capital managers, HR mangers
must develop competencies in:
– Knowledge of the business.
– Human resource functional expertise.
– The management of change.
 Writing Job Descriptions
• Job identification
• Job summary
• Responsibilities and duties
• Authority of incumbent
• Standards of performance
• Working conditions
• Job specification
 HRM Challenges
• Environmental Challenges
• Organizational Challenges
• Individual Challenges
 HRM Challenges
Environmental Challenges
• Embrace Inevitable Change
• Workforce Diversity
• Globalization
• Legislation
• Technology
• Job and Family Roles
• Lack of Skills
 HRM Challenges
Organizational Challenges
• Engaging the Workforce
• Attracting Talent to the Enterprise
• Managing Relationships
• Talent Retention
• Employee Health and Well-Being
• Developing Distinctive Capabilities
• Restructuring
 HRM Challenges
Individual Challenges
• Productivity
• Empowerment
• Brain drain
• Ethics and social responsibility
• Job insecurity
• Matching people and organization