Human Resource

Management
Unit 1
Dr. Nivedita
Singh
 COURSE
OUTCOME
S. No. Course Outcome Bloom’s Taxonomy
CO1. Synthesize the role of human resources
1 management as it supports the success of the
K6 Synthesizing
organization including the effective development of
human capital as an agent for
organizational change.
CO2. Demonstrate knowledge of laws that impact
2 behaviour in relationships between employers and K2 Knowledge
employees that ultimately impact the goals and strategies
of the organization.

CO3. Understand the role of employee benefits and

3 compensation as a critical component of employee K3 Comprehending
performance, productivity and organizational
effectiveness.
CO4.Show evidence of the ability to analyze, manage
and problem solve to deal with the challenges and
4 complexities of the practice of collective bargaining. K5Analysing

CO5. Demonstrate knowledge of practical application of

training and employee development as it K2 Knowledge K4
5
impacts organizational Applying
strategy and competitive advantage.
 What is
HRM
⚫ Human Resource Management Definition 1 – Integration

HRM is a series of integrated decisions that form the

employment relationships; their quality contributes to the
ability of the organizations and the employees to achieve their
objectives
 ⚫Human Resource Management
Definition 2- Influencing

HRM is concerned with the people dimensions management. Since

every organization is made up of people , acquiring their
services , developing their skills , motivating them to higher
levels of performance and ensuring that they continue to
maintain their commitment to the organization are essential to
achieving organizational objectives.

This is true regardless of the type of the organization- govt,

business education , health, recreational or social action.
⚫ Definition 3 Applicability

⚫ HRM is planning, organizing directing and controlling of the

procurement , development, compensation , integration,
maintenance, and separation of human resources to the end
that individual, organizational and social objectives are
accomplished.

Core Elements of HRM

:
Organizations ------
People ------
Management
⚫ HRM It is concerned with

management of people from Recruitment to Retirement

To select right person, at the right place for the right

job.

HRM is the process of acquiring, training, appraising, and

compensating employees, and of attending to their labour relations,
health and safety, and fairness concerns.
 Features of HRM
⚫ HRM involves management functions like planning, organizing,
directing and controlling. It involves procurement, development,
maintenance of human resource.
⚫ It helps to achieve individual, organizational and social
objectives
⚫ HRM is a mighty disciplinary subject. It includes the study of
management psychology communication, economics and
sociology.
⚫ It involves team spirit and team work.
⚫ It encourages employees to give their best to the organization.

⚫ Further Reading : https://blog.darwinbox.com/characteristics-

of-hrm
 Strategic HRM

⚫ Human Resource Management is a strategic and

comprehensive approach to managing people, the workplace
culture & environment. Effective HRM enables employees to
contribute effectively and productively to the overall
company direction and the accomplishment of the
organization's goals. Human Resource Management ("HRM")
is a way of management that links people-related activities to
the strategy of a business or organization. HRM is often
referred to as "strategic HRM.
Characteristics of Strategic Human Resource Management

⚫ 1. Recognition of the outside Environment:

Outside environment presents some opportunities and
threats to the organization in the form of-
⚫ Laws
⚫ Economic conditions
⚫ Social and demographic change
⚫ Domestic and international political forces
⚫ Technology and so on.
A strategic human resource strategy explicitly recognizes the
threats and opportunities in each area and attempts to capitalize
on the opportunities while minimizing or deflecting the effect
of threats.
2. The impact of Competition: The forces of competition in
attracting, rewarding, and using employees have a major effect on
corporate human resource strategy. Forces play out in local, regional,
and national labor markets.
⚫ Labor market dynamics of wage rates, unemployment rates, working
conditions, benefits levels minimum wage legislation, and competition
reputation all have an impact on and are affected by strategic human
resource decisions.
3. Long-range Focus: A strategic human resource management should
be long-range focus cause this is not easy to change the strategic
human resource policy.
⚫ 4. Choice and decision-making focus: In other words, the
strategy has a problem solving or problem preventing focus.The
strategy
concentrates on the question, “what should the organization do and
why?” this action orientation requires that decisions be made and
carried
out.
⚫ Consideration of all personnel: A strategic approach to
human resources is concerned with all of the firm’s
employees, not just its hourly or operational
personnel.Traditionally, human resource management
focuses on hourly employees, with most clerical exempt
employees also included.
⚫ 6. Integration with the corporate strategy: Human
resource strategy adopted by a firm should be integrated with
the firm’s corporate strategy.
⚫ The key idea behind overall strategic mgt is to coordinate all of
the company’s resources, including human resources; in such a
way that everything a company does contributes to carrying
out its strategy. Synergy means the extra benefit or value
realized
when resources have been combined and coordinated
 HOW TO OVERCOME THE BARRIERS OF SHRM

⚫ Conduct a preliminary analysis of needs and requirements.

⚫ Proper communication which builds positive relations
between labor and management.
⚫ Provide leadership who direct, guide and motivate
the employees.
⚫ Effective human resource planning so that organization
achieves standard goals.
⚫ Follow up and evaluate progress so that remedial action can
be taken as and when necessary.
⚫ Formulation of strategies and implementing them
properly.
⚫ Reward supportive behaviors.
How to Create the Best HR Function: Link HR to the
Business Strategy
⚫ What is HR strategy?
⚫ An HR strategy is your plan to build and maintain a team capable of
delivering
business objectives. A typical HR strategy will cover elements such as:
⚫ Recruitment
⚫ Training and professional development
⚫ Employee engagement
⚫ Organizational culture and work environment
⚫ Operational policies and compliance
⚫ Compensation strategy and Total Rewards
⚫ Employee retention
⚫ Succession planning
You will also need to examine your strategy on an organizational level. To do
this, you'll need to consider factors such as business resilience, demand
planning and succession. Here, you'll see why HR strategy is so crucial for
the overall organizational strategy.
Why is HR strategy important for business strategy?

⚫ In a new company, HR often has one urgent job: to help recruit great
people and help integrate them into the team. After that, the team may
switch its focus to day-to-day HR practices like payroll, compliance
and benefit administration.
⚫ But HR leaders know that the business needs them to think beyond the
day-to-day. Business strategy depends on human capital factors, such
as:

⚫ Employer reputation: Business success often relies on your ability to

attract the people you need, and it's easier to attract those people if
you have a strong employer brand. An excellent HR strategy can help
you build a reputation as an employer of choice.
⚫ Cost management: Labor is the biggest expense for most
companies. A good compensation strategy can help keep these
costs down. Training and development can also reduce costs by
empowering workers to be more productive.
⚫ Team stability: Staff turnover can be a massive disruptor for
your business strategy, especially when you're trying to grow. The
right HR strategy can help engage and retain your most
important team members, ensuring you've got the correct
people in place to deliver your goals.
⚫ Depth of skills: Your organization's skills requirements will
change over time. For example, you might need people who can
work with a new technology or connect with clients in new
markets. Your HR strategy can support these changes through
recruitment and professional development initiatives.
⚫ Compliance: Regulatory compliance is non-negotiable for
every business. From payroll laws to anti-discrimination rules,
employee legal protections can be a minefield. The right HR
strategy will help you stay compliant and avoid costly fines that
might threaten business growth.
⚫ Strategy and planning: Strategic HR leaders can help develop
and implement the company's long-term strategy. They
understand the current team's strengths and weaknesses, so they
know if the company is prepared for the next stage in its
development.
⚫ A good HR strategy can be a competitive advantage. But it's not
enough to just have a plan for HR. You must also ensure that HR
works in alignment with the overarching business strategy.
 Five steps to align HR with the
business strategy

⚫ How do HR leaders know that they're helping to deliver long-

term business success?
⚫ The same way as every other leader.Through planning,
communication, and analysis. Here's how to align your HR
strategy with the larger corporate strategy.
⚫ 1. Understand the main strategic goals
⚫ All strategies should be aligned towards the same outcomes. If
the main business goal is growth, the HR strategy should aim
to reduce time-to-hire, improve onboarding, and scale up
training and development. If the goal is business resilience, HR
needs to look at operational efficiency and compensation
planning.
⚫ You will also need to understand the current state of the
organization. Are there budgetary pressures? Regulatory issues?
Market movement, such as a new competitor arriving on the
scene (or an existing competitor departing)? If you understand
where the company is and where you're going, you'll be in a
better position to support the main corporate strategy.
⚫ Map out a skills matrix
⚫ How does your current team contribute to the company
strategy? Each individual brings something different, so you'll
speak with team members one by one and discuss their
strengths and weaknesses.This approach will help you
prioritize training resources where they're needed most.
⚫ You can also work with strategic leaders to map out a skills
requirements matrix. For instance, if your company plans a
major digital initiative, you might need a team with strong IT
skills.You can compare these requirements to your current
skills matrix, which will help you decide if you need to invest
in training or recruitment.
⚫ Formalize your talent strategy
⚫ Once you know where the organization is headed and what it
requires of its people to get there, you must determine the
gaps between its current workforce and what is necessary to
accomplish the main business goals.
⚫ Define strategies needed to acquire, train, develop, performance
manage, and reward the very high-performing talent that will
carry your organization into the future. It's a good idea to
document and formalize this strategy to get everyone on the
same page.
Measure HR outcomes
⚫ Whether you use an HR scorecard or other metrics, these
measures indicate if your HR talent strategy is successful or
when a course correction is necessary. Pay close attention to
things like:
⚫ Time-to-hire
⚫ Engagement survey results
⚫ Professional development progress
⚫ Stay interview and exit interview results
⚫ Stats such as these will help you ensure that you're headed in
the right direction. If the HR strategy is failing to support the
main business strategy, then it's time to review the HR
strategy.
⚫ Stay in touch with the strategists
⚫ But what happens if the business strategy changes? That's why it's
essential to have a connection between HR leadership and
primary decision-makers. You can't support the business strategy
unless you know what that strategy is.
⚫ Aligning with the core strategy can be tricky, especially if HR
doesn't have a voice in the board room. Some companies benefit
from having a CHRO that can help shape the human capital
aspect of strategy. If you don't have an executive in charge of
human capital, then the HR leader needs to have a good
relationship with the CEO or COO.
⚫ Further read : https://hbr.org/2015/07/people-before-
strategy-a-new-role-for-the-chro
ROLE OF HR IN MERGER & ACQUISITIONS
 TECHNOLOGY &
HR
⚫ Technology changes the way HR departments contact
employees, store files and analyze employee performance.
Used well, technology makes HR practices more efficient. When used
poorly, it can get in the way of managing the company's human
resources. Good HR practices maximize the benefits and minimize the
problems.

Top 6 Technology Skills Every HR Professional Needs Today

⚫ Social Media Platforms. ...
⚫ Human Resources Information Software. ...
⚫ Talent Acquisition Software. ...
⚫ Cloud Technology. ...
⚫ Gamification Techniques. ...
⚫ Talent Management Software.
 How Does Technology Impact HR Practices?
⚫ Recruiting Transformed by the Internet
⚫ Before the internet and email, connecting with job seekers meant
phone, face time or a letter. In the 21st century, it's routine for
companies to post openings online, and require job seekers to apply
through an online applicant tracking system. That frees up a great
deal of time that HR would have spent dealing with paper resumes
or personal calls.
⚫ However, HR practices don't always take into account how well the
system works for the candidates. Online forms have a standardized
format that often makes it hard to tell a star performer from a
slacker. A badly designed system with confusing instructions and
slow response times can actually turn job seekers off to applying
with a firm.

⚫ https://theintactone.com/2021/03/09/technology-hr-and-

changing-roles-of-hr-due-to-technology/
⚫ Ease of Communication
⚫ With email, text and messaging apps it's easier than ever for HR staff to stay
in touch with the rest of the company. If a manager wants to share a new
schedule with a project team, one email with an attachment or a conversation
on Slack can share the word with a dozen people at once. There's a risk of
relying too much on tech as a time-saver though. Information in a two-page
email may be better off delivered to the group face to face. That way
everyone can ask questions and hear the answers.
⚫ Data Analysis of Employee Performance
⚫ Analyzing employee performance used to depend on personal assessments
and obvious standards: Did the employee finish the task on time? Does their
boss trust them?
⚫ Technology makes it easier to gather and break down data on employees to
get an overall picture. Which tasks do they perform best? Do they meet all
the goals from last year's performance appraisal? If they fell short, was it by
12 percent, 50 percent or 75 percent? Software programs can even take
over much of the work in evaluating employees.
⚫ Too Much Data

⚫ As HR makes more use of data collection and analysis, employees might

feel their privacy shrinking. If, say, a company has security cameras that
monitor employees every second, it can be easier to find the facts
behind a harassment charge or someone drinking on the job. However,
being constantly monitored can alienate employees as well. Good HR
practices involve not only knowing how much data can be gathered but
also how much should be gathered.
⚫ Another risk is that the HR department can end up getting more data
than it can manage. After a certain point, wading through data to pick
out the relevant material becomes an impossible task. It's also possible
that HR will misread data or make assumptions that a face-to-face
conversation could clear up.
⚫ Security Practices
⚫ Securing employee records used to mean locking a file
cabinet. In the 21st century, best HR practices have to
include security for the digital data. Some security is
more an IT matter, such as a good firewall. HR needs to
have good policies in place, though, governing who can
access confidential data, both hard copy and in electronic
form.
⚫
 How HRM is linked with TQM and productivity?

⚫ Link is very much clear when Human resources of the

company are satisfy they work with their full extent through
this the productivity of the company rises and reaches to a
higher point and if Human resources are dissatisfy, the
productivity decreases.

⚫ TQM advocates customer orientation, process management

and leadership development.This is the domain of HRM. And
HRM in return prepares employees to be better TQM
practitioners. The two are intertwined and both contribute
to the overall competitiveness and morale building of
organizational talent.
⚫ Further reading :
https://theintactone.com/2019/03/02/hrm-
⚫ HRM can underpin human relationships and group
consciousness, raise employee competence, and
achieve culture change. Therefore, it acts as the catalyst for
the implementation of TQM (Heras et al., 2009).
⚫ Literature indicates that human resource is considered the
potential source of growth and success of an organization or new
ventures (Bal et al., 2014; Hormiga et al., 2011; Gabcanova,
2011). They believe that employees’ preferences such as
competencies, attitudes and intellectual agility are required to
tolerate reasoned judgements within the changing and
ambiguous situation. This notion was showcase voluminously
in the literature of human resource management. For instance,
a total of 300 employees found that their knowledge, attitude
and qualification have significant impact on performance
(Amin et al., 2014).
⚫ With this, human resource management works beyond their
limit to provide highly qualified applicants during
recruitment and selection process and commonly assess how
well they keep abreast with the company’s objectives.
⚫ Refining the quality of management heightens the physical
strength of competitive advantage (Wang, 2014), reduce
production cost (Zare et al., 2015) and escalate market share
of the organizations (Ogbari and Borishade, 2015)