Unit 1 : Introduction to HRM

Traditional Definition
Human Resource Management (HRM) is the process of managing people within an
organization, focusing on recruitment, selection, training, and development, as well as
managing employee relations, compensation, and benefits.

Modern Strategic Definition:

Human Resource Management (HRM) involves the strategic alignment of human capital
with organizational goals and objectives. It emphasizes the integration of HR practices with
overall business strategy to enhance organizational performance and competitiveness.

HRM is organising, coordinating, and managing employees within an organisation to

accomplish its mission, vision, and goals. This includes recruiting, hiring, training,
compensating, retaining, and motivating employees.

Human resource management is an operation in companies designed to maximize employee

performance in order to meet the employer's strategic goals and objectives. More precisely,
HRM focuses on management of people within companies, emphasizing on policies and
systems.
The Scope of HRM
The scope of HRM is very wide. It consists of all the functions that come under the banner of
human resource management. The different functions are as follows −

Human Resources Planning

It is the process by which a company identifies how many positions are vacant and whether the
company has excess staff or shortage of staff and subsequently deals with this need of excess
or shortage.

Job Analysis Design

Job analysis can be defined as the process of noticing and regulating in detail the particular job
duties and requirements and the relative importance of these duties for a given job.
Job analysis design is a process of designing jobs where evaluations are made regarding the
data collected on a job. It gives an elaborate description about each and every job in the
company.
Recruitment and Selection
With respect to the information collected from job analysis, the company prepares
advertisements and publishes them on various social media platforms. This is known as
recruitment.
A number of applications are received after the advertisement is presented, interviews are
conducted and the deserving employees are selected. Thus, recruitment and selection is yet
another essential area of HRM.

Orientation and Induction

After the employees are selected, an induction or orientation program is organized. The
employees are updated about the background of the company as well as culture, values, and
work ethics of the company and they are also introduced to the other employees.

Training and Development

Employees have to undergo a training program, which assists them to put up a better
performance on the job. Sometimes, training is also conducted for currently working
experienced staff so as to help them improve their skills further. This is known as refresher
training.
Performance Appraisal
After the employees have put in around one year of service, performance appraisal is organized
in order to check their performance. On the basis of these appraisals, future promotions,
incentives, and increments in salary are decided.

Compensation Planning and Remuneration

Under compensation planning and remuneration, various rules and regulations regarding
compensation and related aspects are taken care of. It is the duty of the HR department to look
into remuneration and compensation planning.
Nature of Human Resource Management

1. HRM is based on certain principles and policies.

2. HRM is a pervasive function.

3. HRM is people oriented.

4. HRM is continuous activity.

5. HRM is a part of management function.

6. HRM aims at securing maximum contribution.

7. HRM aims at optimum use of personnel power.

Features of HRM

Strategic Focus: HRM has evolved to become a strategic partner in organizational decision-
making, aligning human capital strategies with overall business goals.

Continuous Improvement: Involves ongoing assessment and improvement of HR policies and

practices to adapt to changing organizational needs and external factors.

Employee-Centric Approach: Recognizes employees as valuable assets and emphasizes creating a

positive employee experience, which contributes to higher levels of engagement and satisfaction.

Legal Compliance: Ensures compliance with labor laws, regulations, and ethical standards,
protecting both the organization and its employees.

Technology Integration: Utilizes technology, including Human Resource Information Systems

(HRIS), for efficient management of HR processes, data analysis, and reporting.
Global Perspective: Addresses the challenges of managing a diverse and global workforce,
including cultural differences and international employment laws.

Adaptability: HRM is adaptable to changes in the business environment, organizational

structure, and workforce demographics.

Leadership Development: Focuses on identifying and developing leadership talent within the
organization to ensure a pipeline of capable leaders for the future.

Ethical Practices: Upholds ethical standards in HR decision-making, treating employees fairly

and with respect.

Data-Driven Decision-Making: Utilizes data and analytics to inform HR strategies, measure the
impact of HR programs, and make evidence-based decisions.
Hypothetical case study / Presentation/ Assignment / Collage

"Imagine you are HR consultants for a newly established logistics company, 'LogiConnect
Solutions.' The company is gearing up for significant growth in the dynamic logistics industry
and needs a comprehensive HR framework. Your task is to analyze and discuss specific
operative functions of HRM that are crucial for the success of LogiConnect Solutions. Each
group will focus on one of the following operative functions: procurement, development,
compensation, integration, and maintenance.

Kindly refer to the hardcopy for further reference

The three main roles of HR managers:

Role # 1. As Business Partner

In today’s times, HR managers in organizations function as strategic partners working closely

with others to be able to contribute to the development and the accomplishment of the
organization’s business plan and objectives. The HR business objectives need to be aligned with
the overall strategic business plan and objectives.

The tactical HR representative needs to be deeply knowledgeable about the design and redesign
of work systems to make the organization a better and a more efficient place to work. This
strategic partnership impacts all the HR services including hiring, rewarding, recognizing,
developing appraisal systems, and many more.

To be an effective business manager, the HR personnel should be business-minded,

knowledgeable about finance and accounting, and accountable and responsible for cost
reductions and the measurement of all other HR programs and processes.
Role # 2. As Employee Advocate

As an employee advocate, the HR manager utilizes his knowledge and skills to promote
people’s interests for organizational success. This advocacy includes expertise in creating a
work environment in which people choose to be motivated and happy.

It conforms to the maxim—live happily and work happily. An HR professional fosters effective
methods of goal setting, communication, and empowerment through responsibility, and builds
employee ownership of the organization.

Apart from these functions, he also helps in establishing a suitable organizational culture and
environment in which people have the competency, concern, and commitment to serve
customers well.
Role # 3. As Counsellor

Though every manager in an organization performs the role of a counsellor in relation to the
employees, the role is generally limited to solving minor problems. Human resource manager
and other HR personnel are uniquely placed to perform the role of counsellors organization-
wide.

An HR manager can perform the role in employee counselling in two forms — working as
counsellor and providing training for counselling to line managers for effective counselling.
As a counsellor, an HR manager, having behavioural science background, can perform all
functions of counselling. Because of his in-depth knowledge, he can identify and diagnose the
emotional problems of employees and suggest suitable solution with a provision of
continuous feedback. He can organize his department in such a way that he has required
number of employee counsellors in his department.

In fact, most of the large organizations emphasize the appointment of professional counsellors
in HR department.
Labor codes in India

A labor code, also known as a labor law or employment law, is a set of laws and regulations that
govern the relationship between employers and employees within a particular jurisdiction. Labor
codes are designed to establish the rights and obligations of workers and employers, ensuring
fair and equitable treatment in the workplace. These codes typically cover various aspects of
employment, including working conditions, wages, benefits, health and safety, and dispute
resolution.

The four codes consolidated a complex web of 29 central labor laws. These are
The Code on Wages, 2019; The Industrial Relations Code, 2020; The Occupational Safety,
Health and Working Conditions Code, 2020; and The Code on Social Security, 2020.

New 4 Codes
To ensure workers’ right to minimum wages, the Central Government has amalgamated 4 laws in
the Wage Code, 9 laws in the Social Security Code, 13 laws in the Occupational Safety, Health
and Working Conditions Code, 2020, and 3 laws in the Industrial Relations Codelabor
Human Resource Planning

Human resource planning (HRP) is the continuous process of systematic planning to achieve
optimum use of an organization's most valuable asset—quality employees. Human resources
planning ensures the best fit between employees and jobs while avoiding manpower shortages
or surpluses.

There are four key steps to the HRP process. They include:
1. Analyzing present labor supply
2. Forecasting labor demand
3. Balancing projected labor demand with supply
4. Supporting organizational goals

HRP is an important investment for any business as it allows companies to remain both
productive and profitable.
Job Analysis
Job analysis is the process of gathering and documenting information about a job, including its
duties, responsibilities, qualifications, and work environment. It involves collecting data on tasks
performed, skills required, and other aspects related to a specific job.
Relation to Human Resource Planning: Job analysis provides essential input for various HR
activities, including recruitment, selection, training, and performance management. It helps in
understanding the requirements of a job, which is crucial for aligning workforce skills with
organizational needs.

Job Evaluation
Job evaluation is the systematic process of determining the relative value of different jobs within
an organization. It aims to establish a job hierarchy based on factors such as skill requirements,
responsibilities, and complexity.
Relation to Human Resource Planning: Job evaluation assists in setting up a fair and equitable
compensation system by determining the relative worth of different jobs. This, in turn, supports
human resource planning by ensuring that compensation aligns with the organization's talent
acquisition and retention goals.
Job Enrichment
Job enrichment involves redesigning jobs to increase employees' intrinsic motivation and job
satisfaction. It often includes giving employees more responsibilities, autonomy, and
opportunities for skill development.
Job enrichment is a strategy employed to enhance employee engagement, satisfaction, and
performance. While it may not be a direct component of human resource planning, it contributes
to workforce development and retention efforts, which are integral to effective planning.

Job Enlargement
Job enlargement involves expanding the scope of a job by adding more tasks of a similar level of
complexity. The goal is to provide variety and reduce monotony in the work.
Similar to job enrichment, job enlargement contributes to employee satisfaction and can impact
workforce planning indirectly by influencing factors such as turnover and productivity.
Demand Forecasting
• Understand Business Goals: Begin by understanding the organization's overall business goals,
objectives, and growth plans. Identify the key drivers that will impact the demand for human
resources.
• Conduct Workforce Analysis: Analyze the current workforce to identify trends and patterns.
Consider factors such as turnover rates, retirements, promotions, and expansions.
• Consult with Departments: Collaborate with different departments and business units to
understand their specific workforce needs. Gather information on upcoming projects, new
initiatives, and changes in business processes.
• Use Quantitative Models: Utilize quantitative models and statistical methods to predict future
workforce needs. Time series analysis, regression analysis, and other forecasting tools can help
in predicting demand based on historical data.
• Scenario Planning: Consider various scenarios and potential changes in the business
environment. This helps in developing flexible plans that can accommodate different levels of
demand.
• Account for Skill Gaps: Identify the skills and competencies required for future roles. Assess
the current skill set of the workforce and identify potential skill gaps
Supply Forecasting
• Internal Talent Pool Analysis: Assess the skills and capabilities of the existing workforce.
Identify potential internal candidates for key positions and consider talent development
programs to address skill gaps.
• Succession Planning: Develop succession plans for critical roles within the organization.
Identify high-potential employees and create development paths to prepare them for future
leadership roles.
• External Talent Market Analysis: Analyze the external labor market to understand the
availability of talent with the required skills. Consider factors such as industry trends,
demographic shifts, and competition for talent.
• Collaboration with Education and Training Providers: Establish partnerships with
educational institutions and training providers to enhance the pipeline of skilled workers. This
may include internships, apprenticeships, or customized training programs.
• Talent Acquisition Strategies: Develop strategies for attracting external talent, including
recruitment campaigns, employer branding, and leveraging social networks and professional
associations.
• Use of Technology: Leverage HR technology, including applicant tracking systems (ATS) and
workforce planning software, to streamline data analysis and decision-making.