Human Resource Managements

Chapter no 1: Introduction to HRM

What is HRM:
 HRM is a subset of management. It can be defined as policies, practices(attracting potential employees)
and systems that influence employee behavior, attitude and performance (employees/customer
satisfaction, innovation and productivity).
 The best explanation of hrm is “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.
FUNCTIONS OF HRM:
PRIMARY FUNCTIONS:
1. HUMAN RESOURCE PLANNING:
HR planners must continually chart the course of organization and its plans, programs and action.
2. EQUAL EMPLOYMENT OPPORTUNITY:
Activities are intended to satisfy both the legal and moral responsibilities of an organization to stop
discrimination.
3. STAFFING (RECRUITMENT AND SELECTION):
Activities are designed for timely identification of potential employees.
4. COMPENSATION AND BENEFITS:
Incentives tied to individual, team or organizational performance.
5. EMPLOYEE (LABOR) RELATIONS:
Develop communications system through which employees can address their problem.
6. HEALTH, SAFETY AND SECURITY:
Activities seek to promote a safe and healthy work environment.
7. HUMAN RESOURCE DEVELOPMENT:
Activities are intended to ensure that organizational members have the skill or competencies to meet
current and future job demands.
SECONDARY HRM FUNCTIONS:
1. ORGANIZATION JOB DESIGN:
Activities are concerned with interdepartmental relations.
2. PERFORMANCE MANAGEMENT AND PERFORMANCE APPRAISAL SYSTEM:
are used for establishing and maintaining accountability throughout organization.
3. RESEARCH AND INFORMATION SYSTEM:
includes HRIS necessary to make enlightened HR decisions.
GOALS OF HRM:
Attract Hire

Retain Train

Motivate
IMPORTANCE OF HRM:
 It is easier to answer by listing some of the personnel mistakes you don’t want to make while managing
 Hiring the wrong person for the job.
 Experience high turnover
 Having such people not doing their best.
 wastage of time with useless interviews.
 Having your Company cited under federal occupational safety laws for unsafe practices.
 Having employees think their salaries are unfair.
 Allow lack of training.
 Commit any unfair labor practices.
CONCLUSION: Intensified global competition, technological advances and the challenging nature of work
means a lot.
LINE & STAFF ASPECTS OF HRM:
All managers are involved in activities like recruiting, interviewing, selecting and training.
LINE AUTHORITY:
It gives manager the right or authority to issue orders to other managers or employees. “Superior-
Subordinate relationship” (Sales or Production).
 STAFF AUTHORITY:
It gives right to advise other managers or employees. “advisory relationship like purchasing, Quality
control and Supportive Department)
LINE MANAGER HR DUTIES:
Direct handling of people has always been an integral part of every line manager duties.
 Placing the right person on the right job.
 Starting new employees in the organization(Orientation)
 Training employees for jobs.
 Improving the job Performance.
 Gaining creative cooperation and developing smooth working relationship.
 Interpreting the company policies.
 Controlling and maintaining department morale.
 Protecting employees health and physical condition.
HIGH PERFORMANCE WORK SYSTEM PRACTICES:
A high performance work systems is an integrated set of hrm policies and practices that together produce
superior employee performance.
It include these practices
 Employment Security
 Selective hiring
 Extensive training
 Self managed Teams and decentralized decision Making.
 Reduced status distinctions between managers and workers.
 Information Sharing.
 Pay for Performance Rewards.
 Transformational leadership (Inspiration of Motivation)
 Measurement of Management Practices
 Emphasis on High Quality Work.
 BENEFITS OF HIGH PERFORMANCE WORK SYSTEMS:
  Generate more job applicants.
 Screen candidates more effectively.
 Provide more and better training .
 Link pay effectively with performance.
 Provide a safer work environment.
 Produce more qualified applicants.
 Hiring based on Selection test.
 Provide more hours of training for new employees.
 Conduct more performance appraisal.
HUMAN RESOURCE MANAGER PROFICIENCIES: (Abilities)
1. HR PROFICIENCIES (Knowledge and skills in areas like employee selection and training)
2. BUSINESS PROFICIENCIES ( To assist top management in formulating strategies, marketing and
production)
3. LEADERSHIP PROFICIENCIES (To work and lead with management groups and drive the required
changes)
4. LEARNING PROFICIENCIES (Must have ability to apply all practices)

CHAPTER NO 2: Strategic Human Resource Management

STRATEGIC MANAGEMENT:
The purpose of identifying and executing the organization mission by matching its capabilities with the demand
of environment.
STRATEGY:
A chosen course of action like closing plants, terminating employees.
STRATEGIC PLAN:
How an organization intends to balance its internal strengths and weaknesses with its external opportunities and
threats to maintain a competitive advantage over the long term (Where we are now as a business, where to we
want to be and how should we get their). Strategic planning comprises of five to seven strategic management
tasks.
 DEFINE THE CURRENT BUSINESS:
Mangers use a vision statement to summarize how they see the business down the road.
VISION:
A general statement of an organization intended direction that evokes emotional feelings in organization
members. For e.g One eye care Company vision is “Our vision is caring for your vision”.
MISSION:
(Broader) spells out who the company is. What it does and where it headed. For e.g “Where quality is job
done”.
 PERFORM EXTERNAL AND INTERNAL AUDITS:
SWOT ANALYSIS:
To identify the Company Strengths,(Strong research group) Weakness (aging machinery), Opportunities
(expanding China Market and Threats (Merger of two Companies to perform singly).
 FORMULATE NEW BUSINESS AND MISSION STATEMENT:
Based on analysis what should our new business be, in terms of what products it will be and what will be new
mission and vision?
 TRANSLATE MISSION INTO STRATEGIC GOALS:
Mission like “To make quality job one” operationalising the mission for your managers. Manager need strategic
goals. How you can boast quality.
 FORMULATE STRATEGIES TO ACHIEVE THE STRATEGIC GOALS:
It shows how the enterprise will move from the business it is to the business it wants to be . The best strategies
are concise enough for the managers to express in an easily communicated phase.
 IMPLEMENT THE STRATEGIES:
Translating the strategies into actions and results.
 EVALUATE PERFORMANCE:
Strategies don’t always succeed due to technological improvements.
TYPES OF STRATEGIES
1. CORPORATE LEVEL STRATEGIES
 DIVERSIFICATION STRATEGY (Firm will expand by adding new product lines).
 VERTICAL INTEGRATION STRATEGY ( Firm expands by producing its own raw material or selling
products directly)
 CONSOLIDATION (Reducing company size)
 GEOGRAPHIC EXPANSION (Taking the business abroad)
2. BUSINESS LEVEL/ COMPETITIVE STRATEGIES
 COST LEADERSHIP (Enterprise aim is to become low cost leader exp Dell
 DIFFERNTIATION (Firm seeks to be unique in its industry along dimensions that are valued by buyers
e.g. fresh ingredients)
 FOCUS/ NICHE (Product customer can get in no other way e.g. ferari)
STRATEGIC HUMAN RESOURCE MANAGEMENT:
The linking of HRM with strategic goals and objectives in order to improve business performance and develops
organizational cultures that foster innovation and flexibility e.g fedex strategic aim is to achieve superior levels
of customer service and also produce the employees competencies.
SHRM CHALLENGES:
HR Manager face three basic strategic challenges
1. Corporate Productivity & Performance (Need to support due to improvement efforts globalization to
increase the performance continually
2. Expanded Role of employees in producing the organizations Performance efforts ( team based
production)
3. Increased HR team involvement in designing of strategic plans (might decide to enter in new market
or drop product line)
COMPONENTS OF STRATEGIC HUMAN RESOURCE MANAGEMENT SYSTEM:
 HR PROFESSIONALS(Provision of High quality services)
 HR POLICIES AND PRACTICES (New training and Communication Program, Benefit
Programs..Promote personal growth)
 EMPLOYEE BEHAVIOR & COMPETENCIES (Able and willing to apply new knowledge, dedicated,
accountable,…innovative duties)

CHAPTER NO 3: Job Analysis

What is Job Analysis?
The procedure for determining the duties and skills requirement of a job and the kind of person who should be
hired for it, it produces information used for writing job description.
What is Job Description?
A list of what the job entails. A list of job duties, responsibilities, reporting relationships, working conditions
and supervisory responsibilities (One product of Job analysis)
What is JOB Specification?
What kind of people to hire for the job (Minimum qualification required for performing a job)
How you can Write a JOB DESCRIPTION?
What the worker actually does and how does it. It includes seven components:
JOB IDENTIFICATION
It contains several types of information. Job title, Date, Grade and level of Job.
JOB SUMMARY
It includes major functions and activities, nature of job e.g. Handles all outgoing mail including the accurate
postings.
RESPONSIBILITIES AND DUTIES
It shows the limits of job holders authority including decision making authority can approve purchase request
up to 5000 or leave up to 3 days.
AUTHORITY OF INCUMBENT:
All are listed on incumbency(morally binding) certificate
STANDARDS OF PERFORMANCE:
List the standards , the employee is expected to achieve. Setting standards is not an easy tasks. Just telling them
is not enough.
WORKING CONDITIONS
It includes things like noise level or heat hazards conditions.
JOB SPECIFICATION:
What human traits and experience are required to do the job well.
HOW TO WRITE JOB SPECIFICATIONS?
What traits and experience are required to do the job well (may be a part of job description or separately can be
consider.
SPECIFICATION FOR TRAINED VS UNTRAINED PERSONNELS:
Writing job specification for trained employees is straight forward. Suppose want to fill a position of
storekeeper the job will be like length of previous services, quality of relevant training and previous job
performances. Problem is when you are filling jobs with untrained employees have focused on physical traits,
personality, interest and sensory skills.
SPECIFICATION BASED ON JUDGEMENTS:
Most jobs specification gets from the educated guesses of people like supervisors and human resource .
Manager can create it through www.jobdescription.com
JOB SPECIFICATION BASED ON STATISTICAL ANALYSIS:
The aim is to determine statistically the relationship between intelligence and height and job effectiveness such
as performance rated by supervisor. This method is more secure than judgmental approach due to statistical
validation.
WHAT IS A JOB?
Job is defined as a set of closely related activities carried out for a pay.
JOB DESIGN:
Job designing means the ways to expand an employee’s jobs by redesigning certain aspects like what an
employee does and responsible for the organization.
JOB ENLARGEMENT:
Means assigning workers additional same level activities, thus increasing the number of activities they perform.
Taking charge of more duties which are not mentioned in the job description.
JOB ROTATION:
Means systematically moving workers from one job to another, to enhance work team performance or broaden
his or her experience and identify strong and weak points to prepare the person for an enhanced role with the
company.
JOB ENRICHMENT:
The best way to motivate workers is to build opportunities for challenge and achievement into their jobs
through job enrichment. It increase the opportunities for the worker to experience feelings of responsibilities,
growth and recognition by letting the worker plan and control his or her own work.
DEJOBBING THE ORGANIZATION:
WHAT IS DEJOBBING:
Broadening the responsibilities of the company jobs and encouraging employees not to limit themselves to
what’s on their job description.

 FLATTERING THE ORGANIZATION:

Flat Organizations with just three or four levels are more established. This put top managers in close touch with
customers can supervise the less and subordinates jobs end up bigger in term of responsibilities.
 SELF MANAGING WORK TEAMS:
Managers increasingly organize task around teams and processes rather than around specialized functions. It
can handle cost control and work orders. In such organization employees jobs daily, so mgmt. intentionally
avoids having employees view their job as specific, narrow set of responsibilities.
 REENGINEERING BUSINESS PROCESS:
From a bank to approve a loan application, the application might be handled from department to department,
such as form application, to credit analysis, to loan approval to the loan closing group. This can be very time
consuming. Reengineering means “ redesigning business process so that small self managing teams of
employees working together get the task done together all at once. Here workers becomes collectively
responsible for overall results than just for their own task performing whole process not just small piece.