Introduction to Human

Resource Management
Objective

Explain What is Human Resource Management (HRM)

Define Human Resource Management
Explain the importance of HRM
Explain the Scope of Human Resource Management
Describe the Evolution of HRM of HRM
Explain the Skills of HR Professionals
Explain the difference between Personnel Management
and HRM
Explain the Duties and responsibilities of HR manager
List the Tips for Effective HRM
Best HR practices of Companies
Introduction
Look at the questions given below and try answering them.

• Whom do you send your resume to when you see a job opening that
interests you?

• Who gives you the job offer and discusses your pay package with you?

• Who inducts you into the organization when you are a new employee?

• Whom do you contact when you have any doubts regarding your pay
package, perks, benefits, conveyance, leave management etc.?
• Who helps you in the final exit formalities when you leave an
organization?

• Who takes care of your training and development needs?

 Introduction

You must have guessed correctly. It is the Human

Resource Managers and people from the HR
Department who take care of you right from the
time when you apply to a company, you get the
job, you join the company, are working with the
company till the time you leave the company.

Hence, in your entire lifecycle of involvement with

the company, the HR always stands by you and
supports you during your tenure with the company.
Hence, HR managers are also known as ‘People
Managers’, ‘People Enablers’ and they practice as
‘Human Resource or People Management’.
What is Human Resource Management (HRM)?

It is a science because of the

precision and rigorous
application of theory that is
required.

Human Resource Management

(HRM) is an ‘art and science’.

HRM is art of managing people by

using creative and innovative
approaches.
HRM - Definition

Edwin Flippo defines-

HRM as “planning, organizing,
directing, controlling of
procurement, development,
compensation, integration ,
maintenance and separation
of human resources to the
end that individual,
organizational and social
objectives are achieved.”
A rich man purchased a healthy cow and poor man
purchased sick cow from the same market.
The rich man displayed his cow at the entrance to
his house, while poor man invested a lot of money
and efforts on his sick cow. In course of time, the
rich man’s cow become weak, while poor’s man
cow gained health.
People are the most vital and valuable resource of
any organization. Material resources depreciate,
while Human Resources are appreciate

LOGO
The Mantra : Understand and Nurture People
 What is Human Resource Management (HRM)?

HRM is all about people in organizations. No wonder that some

MNC’s (Multinationals) call the HR managers as People Managers,
People Enablers and the practice as People Management. In the
21st century organizations, the HR manager or the people
manager is no longer seen as someone who takes care of the
activities described in the traditional way.

In fact, most organizations have different departments dealing

with Staffing, Payroll, and Retention etc. Instead, the HR manager
is responsible for managing employee expectations vis-à-vis the
management objectives and reconciling both to ensure employee
fulfillment and realization of management objectives.
Some employers with good HR
practices…

YOUR COMPANY NAME or YOUR SITE ADDRESS LOGO

 Infosys
 Treats its employees as its key asset
 High level of senior management commitment:
 Communicates & share information with employees on regular
basis
 Stand in lunch queue as everyone else

 Play active role in employees events

 No hierarchy & everyone is equal

 Take input from employee before taking decision

 Dynamic recruitment process

 Interviews with HR manager, Potential supervisor, Supervisor’s
manager, Potential peers & Skill assessment
 Employees referrals

 Social events are organized regularly where employee & their

family both participate
 “Petit infoscion” is held in which employee's children get an
opportunity to visit parent’s workplace
 Company’s stocks are given to its employees
LOGO
 Every employee receives avg. of 47 hrs of training per year
 P & G (India)
 “Has strong Concern for people”
 Accommodation is provided as per the number of family members of
the employee and marital status of employee and not based on the
seniority
 Health facility
 Unlimited medical coverage

 Education on health management

 First aid workshop

 Stress reduction workshop

 Newsletter on health

 Subsidized health club facility

 Relocation : Many of the P & G (India) are relocated in Singapore for

this :
 Education about new location is given

 For next 2 years company will take care of any education, training or job
of spouse of employee

 Flexi time working, telecommuting, job sharing, reduced hours of

work, etc are in place
 Dedicated data base which collects employees suggestions about LOGO
anything
 Hewlett-Packard Company (HP)
 No one “breathes down your neck”
 Flexi time, telecommuting & reduced hour employment in
place
 Personal need based leaves besides statuary leaves are
there
 10 days for getting married

 10 days for preparing for competitive exams

 8 weeks for legal adoption of a child

 5 days for a employee who has suffered demise in family

 5 days for a new father

 “Sound of success” is the HP tune which is played at

employee’s B’day or at other achievement occasions in the
entire building
 Annual family party
 On “Special day” employee can take his family out for
dinner at company’s cost once a year (eg B’Day)
 Employee’s importance - Any important decision is
communicated to employees couple of hour before media
release LOGO
 Cont.…
 All employees are eligible for stocks
 Employees are encouraged to develop themselves by
training & tuition
 Common lunch room for all
 Annual picnic is organised
 Clubs like president’s club & regional club are there and
top performers are given membership to them
 Communication is given due importance – every employee
gets update of company each morning along with CEO’s
message (if any)

1-Sep-19 13Lawrie & Co. Ltd.

Balmer LOGO
 ICICI Bank
 Internal portal is ICICI universe
 Recruitment through employee referrals is
preferred
 Welfare Activities such as:
 Company takes care of employee ward’s admission
into a school
 Holiday homes

 Flexi hours are used sometimes

 Camera linked crèche

 “Saturday Kid’s club” – employee’s kids are

brought to workplace and there is a special
instructor for “learn through fun”
 “Wise guy” is knowledge management portal
which is accessible to all the employees
 Recognition is integral part of culture LOGO
Hughes Communications India Ltd. (HCIL)
HCIL is the largest satellite service operator in India providing a comprehensive
range of broadband networking technologies, solutions, and services for businesses
and governments, including Managed Services to meet every communications
challenge.
 It has 8 week induction program named “oasis”
 Stocks are given to employees
 Pay revision in six months
 Loyalty awards –
 On completion of one year – watch
 On completion of five year – paid holiday
 Regular parties and celebration of festivals
 Inter industry competition b/w welfare
activities
 Popular awards like –
 Best trouble shooter
 Best mentor
 Best leader
 Regular health checkup camps LOGO
Misc. Examples
• Offers choice of working in over 170 offices across 40 countries.
TCS
• Provisions of Paternity leave for adoption of a girl child

ICICI
• Identifies potential talented staff and offer alternative stock
option and quicker promotion

• It has “Wings Within” program where existing employees get

WIPRO chance to quit their current job role and join a different department
within organization

Mahindra
• Carry Practice called “Reverse Mentoring” where young people
and
Mahindra Co. are given opportunity of mentoring their seniors

Mahindra • Offers excellent sporting and wellness facilities.

Microsoft
and India
• Employees are allowed to choose a flexible working schedule.
Mahindra Co. Human Resource Management LOGO
 Skills of HR Professionals
The various skills of HR professionals are as follows:

Let us look at each in detail.

Skills of HR Professionals

HR Skills:

HR managers are required to know how people play a role

in the organization, an advantage against the competition
as well as the policies, programs etc. Today’s HR
professional must be skilled at communicating,
negotiating and team development.
Skills of HR Professionals

Decision Making Skills:

HR managers should take a variety of decisions that affect

whether employees are qualified and motivated and
whether the organization is operating efficiently and
complying with the law. This requires knowledge of the
organization’s line of business and decisions must take
into account social and ethical implication of the
alternatives.
Skills of HR Professionals

Technical Skills:

These skills are specialized skills. In HRM, professionals

need knowledge of state-of-the-art practices in such areas
as staffing, development, rewards, organizational design
etc.
Skills of HR Professionals

Leadership Skills:

HR managers need to play a leadership role with regard to

the organization’s HR. In today’s environment, leadership
often requires helping the organization manage change.
HR professional must oversee the changes taking place to
make it a success.
 Objective of Human Resource Management
The objective of HRM covers but is not limited to the following functions:
Training and Development Industrial Relations

Improve Job
satisfaction
Hiring (Recruitment
Grievance Handling and Selection)

Promote team spirit Develop loyalty and

commitment
HR planning
Payroll Management
Talent Management and Development
Employee and Labor Relations
Rewards and Recognitions
Worker Protection
Therefore, HRM is about developing and managing harmonious relationships at
workplace and striking a balance between organizational goals and individual goals.
 Major Objectives of HRM
Create and utilize talented and motivated workforce

Maintain sound organizational structure

Desirable working relationships among all the members of the organization.

Co-ordination of the individual and group goals with those of the organization.

Create facilities and opportunities for individual or group development so as to match it with the growth of
the organization.
Strengthen and appreciate the human assets

Providing training and development programs.

Opportunity for expression and voice management.

Providing adequate and equitable Compensation

Contribute to the minimization of socio-economic evils

Scope of Human Resource Management
The scope of HRM is extensive and
far-reaching. Therefore, it is very
difficult to define it concisely. HRM in
However, we can classify the scope Personnel
of HRM under the following three Management
categories:
HRM in
Employee
Welfare

HRM in
Industrial
Relations

Let’s look at each in detail.

 Scope of Human Resource Management
Human resources are undoubtedly the key resources in an
organization, the easiest and the most difficult to manage. The
objectives of the HRM span right from the manpower needs
assessment to management and retention of the same. To fulfill
this purpose, Human Resource Management is responsible for
effective designing and implementation of various policies,
procedures and programs. It is all about developing and managing
knowledge, skills, creativity, aptitude and talent and using them
optimally.

Human Resource Management is not just limited to manage and

optimally exploit human intellect. It also focuses on managing
physical and emotional capital of employees. Thus, the scope of
HRM is widening with every passing day, considering the
complexity involved.
 •Manpower planning
•Recruitment
•Selection
•Placement
•Transfer
Personnel •Promotion
Aspect •Training and development
•Retrenchment
•Remuneration

•Working Condition
SCOPE •Basic amenities-:
 Canteens
of Welfare  Rest and lunch hours
 Housing
HRM Aspect  Transportation
 Health and safety
 Medical Assistance

•Union Management relation

Industrial •Collective bargaining
Relation •Grievances
•Disciplinary Approach
Aspect •Settlement of Disputes

Human Resource Management

 Scope of Human Resource Management
HRM in Personnel Management:
HRM in Personnel Management is typically direct
manpower management that involves

• Manpower planning
• Hiring (recruitment and selection)
• Training and development
• Induction and orientation
• Transfer, promotion
• Employee productivity
• Compensation
• Layoff and retrenchment

The overall objective here is to ascertain individual growth, development and effectiveness which
contribute to organizational development.
It also includes performance appraisal, developing new skills, disbursement of wages, incentives,
allowances, travelling policies and procedures and other related courses of actions.
 Scope of Human Resource Management
HRM in Employee Welfare
HRM in Employee Welfare is a particular aspect of HRM
which deals with working conditions and amenities at
workplace. This includes a wide array of responsibilities and
services such as
safety services,
health services,
welfare funds
social security
medical services.
It also covers appointment of safety officers, making the environment worth working,
eliminating workplace hazards, support by top management, job safety, safeguarding
machinery, cleanliness, proper ventilation and lighting, medical care, sickness benefits,
employee injury benefits, personal injury benefits, maternity benefits, unemployment
benefits and family benefits.
It also relates to supervision, employee counselling, establishing harmonious
relationships with employees, education and training. Employee welfare is about
determining employees’ real needs and fulfilling them with active participation of both
management and employees. In addition to this, it also takes care of canteen facilities,
crèches, rest and lunch rooms, housing, transport, medical assistance, education, health
and safety, recreation facilities, etc
 Scope of Human Resource Management
HRM in Industrial Relations
HRM in Industrial Relations is a highly sensitive area. It
needs careful interactions with labor or employee
unions, addressing their grievances and settling the
disputes effectively in order to maintain peace and
harmony in the organization.

It is the art and science of understanding the

employment (union-management) relations, joint
consultation, disciplinary procedures, solving problems
with mutual efforts, understanding human behavior
and maintaining work relations, collective bargaining
and settlement of disputes.
The main aim is to safeguard the interest of employees
by securing the highest level of understanding to the
extent that does not leave a negative impact on
organization. It is about establishing, growing and
promoting industrial democracy to safeguard the
interests of both employees and management.
 Functions of HR

MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
• Procurement
Planning
• Human Resource
Organizing OF
Development
HUMAN

Directing • Compensation
RESOURSE

Management
Controlling
• Employee relation
• Maintenance
• Emerging issue
 Operative Function OF HRM

PROCUREMENT HUMAN COMPENSATION EMPLOYEE MAINTAINACE EMERGING

RESOURSE and MOTIVATION RELATION ISSUES
MANAGEMENT
DEVELOPMENT

• Job analysis • Training and • Job design • Grievance • Health and • Personal
development redressal Safety records
• Job evaluation
• Human
• Career • Discipline • Security • HR Audit
Resource
planning • Work
Planning measures
scheduling • Collective • HR Research
• Organization bargaining
• Recruitment • Motivation • Welfare • HR
changes schemes
• Trade unions Accounting
• Selection • Performance
• Organization •
appraisal • Participative Human
development
• Induction management Resource
• Wages & Information
salary • Teams and System
• Placement administration teamwork
• Stress
• Internal • Fringe benefits • Industrial Counseling
Mobility Relation
• International
HRM
 Difference between Personnel Management & HRM
Personnel Management is essentially ‘workforce’ centered whereas Human
Resource Management is ‘resource’ centered.

Personnel Human Resource

Management Management

Let us understand the various differences between Personnel Management and

Human Resource Management.
 Difference between Personnel Management & HRM
Personnel Management:

Traditionally the term personnel management

was used to refer to the set of activities
concerning the workforce which included
staffing, payroll, contractual obligations and
other administrative tasks. In this respect,
personnel management encompasses the range
of activities that are to do with managing the
workforce rather than resources. Personnel
Management is more administrative in nature.
The Personnel Manager’s main job is to ensure
that the needs of the workforce as they pertain
to their immediate concerns are taken care of.
Further, personnel managers typically played the
role of mediators between the management and
the employees and hence there was always the
feeling that personnel management was not in
tune with the objectives of the management.
Difference between Personnel Management & HRM
Human Resource Management:

With the advent of resource centric organizations

in recent decades, it has become imperative to
put ‘people first’ as well as secure management
objectives of maximizing the ROI (Return on
Investment) on the resources. This has led to the
development of the modern HRM function which
is primarily concerned with ensuring the
fulfillment of management objectives and at the
same time ensuring that the needs of the
resources are taken care of. In this way, HRM
differs from personnel management not only in
its broader scope but also in the way in which its
mission is defined. HRM goes beyond the
administrative tasks of personnel management
and encompasses a broad vision of how
management would like the resources to
contribute to the success of the organization.
 Difference between HRM and Personnel Management
Personnel HRM
Meaning It means management of people It means management of employee
employed skills,abilities,knowledge,talent etc.

treatment Employees are treated as economic man Employees are treated as valuable assets
his services are exchanged for wages and
salary
Cost/ profit It is cost centered therefore management It is a profit centered therefore investment in
tries to control the cost human resources for future utility purpose

benefits Employees are used for organizational Employees are used for mutual benefits
benefits

Psychological contract Compliance occur in the behaviors of Employees are more committed
employees

Structure and systems Bureaucratic , centralized , Formal Organized , developed , flexible

Roles Specialist / Professional Largely integrated in management

Human Resource Management

 CHALLENGES FACED BY HRM

Lifestyle Environmental
Employee Changes in challenges
Size of Composition technology changes
of workforce expectation
workforce
MNC’s Glass Highly Automation Ready to Shift from
ceiling qualified take public
effect workers challenging sector to
Pay Computeri jobs private
structure zation sector
culture Financial
and non- Shift in
Living financial Training locations Preferred
standard level of demands location
education
Industry
Status More preference
exposure in
new areas

LOGO
Human Resource Management
 Evolution of
LOGO
Human
Resource Management
LOGO
Period before industrial revolution –
The society was primarily an
agriculture economy with limited
production. Number of specialized
crafts was limited and was usually
carried out within a village or
community with apprentices assisting
the master craftsmen. Communication
channel were limited.

LOGO
 Period of industrial revolution (1750 to 1850) – Industrial
revolution marked the conversion of economy from
agriculture based to industry based. Modernization and
increased means if communication gave way to industrial
setup. A department was set up to look into workers
wages, welfare and other related issues. This led to
emergence of personnel management with the major task
as
– Worker’s wages and salaries
– Worker’s record maintenance
– Worker’s housing facilities and health care
 An important event in industrial revolution was growth of
Labour Union (1790) – The works working in the
industries or factories were subjected to long working
hours and very less wages. With growing unrest , workers
across the world started protest and this led to the
establishment of Labour unions. To deal with labour issues
at one end and management at the other Personnel
Management department had to be capable of politics and
diplomacy , thus the industrial relation department
emerged.
LOGO
 Post Industrial revolution – The term Human
resource Management saw a major evolution
after 1850. Various studies were released and
many experiments were conducted during this
period which gave HRM altogether a new
meaning and importance.
 A brief overview of major theories release
during this period is presented below
 Frederick W. Taylor gave principles of scientific
management (1857 o 1911) led to the evolution
of scientific human resource management
approach which was involved in
– Worker’s training
– Maintaining wage uniformity
– Focus on attaining better productivity.

LOGO
Cont.

 Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger

(1927 to 1940). – Observations and findings of Hawthrone experiment
shifted the focus of Human resource from increasing worker’s
productivity to increasing worker’s efficiency through greater work
satisfaction.
 Douglas McGregor Theory X and Theory Y (1960) and Abraham
Maslow’s Hierarchy of needs ( 1954) – These studies and observations
led to the transition from the administrative and passive Personnel
Management approach to a more dynamic Human Resource
Management approach which considered workers as a valuable
resource.
 As a result of these principles and studies , Human resource
management became increasingly line management function , linked to
core business operations. Some of the major activities of HR
department are listed as-
Recruitment and selection of skilled workforce.
Motivation and employee benefits
Training and development of workforce
Performance related salaries and appraisals.

LOGO
Strategic Human Resource Management
Approach

 With increase in technology and knowledge

base industries and as a result of global
competition , Human Resource Management
is assuming more critical role today . Its
major accomplishment is aligning individual
goals and objectives with corporate goals
and objectives. Strategic HRM focuses on
actions that differentiate the organization
from its competitors and aims to make long
term impact on the success of organization.

LOGO
Indian HR Practices

LOGO
 Staffing Practices
 Resumes seek strong educational background.
 Employee referrals (predominantly used for middle and
senior management).
 Succession planning (predominantly used for middle and
senior management).
 Elaborate employment tests related to the job, especially at
entry level.
 Newspaper advertisements are used to brand the company
to potential applicants.
 Newspaper advertisements will specify age and gender
requirements.
 Personal questions will be asked in interviews/resumes
about:
 Age
 Marital status

 Family plans (women planning to start a family)

 Family background
 Caste background
 Photos to be included

 Verification of educational certificates

LOGO
 Training Practices
 Training (future orientation):

• Education is extremely valued, and training is an

extension of it.
• Entry point training programs (3 to12 months of
orientation).
• Ongoing training programs.

• Development programs (promotions involve

training).
• In-house training centers are a common feature
in Indian organizations.
• Deductive learning style in training: Known as
“top-down approach” where learning principles
start with general concepts and move toward
specific application.
LOGO
 Performance Appraisal
 Annual performance appraisals.
 Supervisors provide performance ratings that are
frequently inflated due to personal relationships.
 Employment at will does not exist in India.
 employment termination carries a social stigma.
 Employee promotions are frequently based on seniority.
 Supervisors and subordinates develop close
relationships.
 Organizational loyalty is as important as work
performance.

LOGO
Compensation and Benefits
 In addition to a base salary, compensation
includes:
 House rent allowance (HRA*).
 Medical allowance.
 Dearness allowance (DA*). It is an allowance provided to adjust the
cost of living and may vary depending on the job’s location (rural vs. urban
areas).
 Leave travel allowance (LTA*).
 Commuter allowance.
 * These allowances are frequently referred by their acronyms

 Several categories of leave (vacation) exist:

 Sick leave: 7 days (medical certificate required).
 Casual leave: 7 days (for personal and family emergencies,
requires prior permission of boss). Employees can take
maximum 2 days at a time
 Annual leave: 3 weeks (after one year of employment).
 National holidays: About 20 days.
LOGO
 Compensation and Benefits
 Retirement age:
 55-60 years (private sector);.
 60 years (public sector).
 Retirement Benefits: Employees receive two lump-sum payments
when they retire:
 Provident Fund
• Typical contributions: 10-12 percent of base salary (employer and
employee).
• Payable on retirement, voluntary separation, death.

 Gratuity
• Only employer contributes (15 days salary per year of service).
• Tax-exempt for employees.
• Payable on retirement, voluntary separation, death.
 Organizations are seen as an extension of the family.

 Provide both short-term and long-term personal loans.

 Personal loans for housing, car, home maintenance and family

emergencies.

 Loan amounts vary by position and level in organization.

 All employees after their probation (confirmation) period are eligible.

LOGO
 Compensation and Benefits
 Many medium and large organizations have
cafeterias with subsidized lunch facilities.

Executives receive special benefits to reflect status
such as:

• Club memberships.
• Overseas training.
• Company housing.
• Company cars.
 Provided with drivers.
 International cars.
 Operational and maintenance costs.
 Phone bill reimbursements.
 Organizations provide business and cell phones.

LOGO
Indian HR Associations
• In the 1940s and early 1950s, two professional HR associations
were established to acknowledge the importance of HR:

Indian Institute of Personnel Management (IIPM).

National Institute of Labor Management (NILM).

• In1980, the two associations merged to form the National Institute

of Personnel Management (NIPM).

• National Institute of Personnel Management is the premier

all-India Institute of professionals engaged in personnel
management, industrial relations, labour welfare and human
resources development. NIPM is a professional, non-profit-
making society registered under Societies Registration Act,
1960.

LOGO
 Importance of HRM for Organizational Success
There are various reasons for organizations to have a
HRM strategy as well as the business drivers that
make the strategy imperative for organizational
success.
It is a fact that to thrive in the chaotic and turbulent
business environment, firms need to constantly
innovate and be ‘ahead of the curve’ in terms of
business practices and strategies.

It is from this motivation to be at the top of

the pack that HRM becomes a valuable tool
for management to ensure success.
 Importance of HRM for Organizational Success
The following are the various reasons that organizations need to give
importance to HRM:

• The Evolving Business Paradigm

• Strategic Management and HRM

• Need for Adopting a Holistic Approach

Let us look at each in detail.

 Importance of HRM for Organizational Success
• The Evolving Business Paradigm

One of the factors behind organizations giving a lot of attention to their

people is the nature of the firms in the current business environment. There
has been a steady movement towards an economy based on services; hence,
it becomes important for firms engaged in the service sector to keep their
employees motivated and productive. Even in the manufacturing and the
traditional sectors, the need to remain competitive has meant that firms in
these sectors deploy strategies that make effective use of their resources. This
changed business landscape resulted due to a paradigm shift in the way
businesses and firms view their employees as more than just resources and
instead adopt a ‘people first’ approach.
 Importance of HRM for Organizational Success
• Strategic Management and HRM

Moreover, there is a need to align organizational goals with that of the HR

strategy to ensure that there is alignment of the people policies with that of
the management objectives. This means that the HR department can no
longer be viewed as an appendage of the firm but instead is a vital organ in
ensuring organizational success. The aims of strategic management are to
provide the organization with a sense of direction and a feeling of purpose.
The current HRM practices in many industries are taken as seriously as the
marketing and production functions.
 Importance of HRM for Organizational Success
• Need for Adopting a Holistic Approach

The practice of HRM must be applied to the overall strategic goals for the
organization instead of a standalone tint that takes a unit based or a micro
approach. The idea here is to adopt a holistic perspective towards HRM that
ensures that there are no piecemeal strategies and the HRM policy enmeshes
itself fully with those of the organizational goals. The practice of HRM needs
to be integrated with the overall strategy to ensure effective use of people
and provide better returns to the organizations in terms of ROI (Return on
Investment) for every rupee or dollar spent on them. Unless the HRM practice
is designed in this way, the firms stand to lose from not utilizing people fully
and this does not bode well for the success of the organization.
 Emerging HRM Functions
The following are some of the emerging HRM functions: HR managers
contribute to the
development of the
organization,
realization of business
Business plans and
achievement of
and objectives.
Change Strategic
Champion Partner

HR managers have to
HR managers have to
be change agents, thus
serve as advocates of
requiring them to
acquire knowledge
Employee the employees. It
Advocate means that they have to
about and the ability to
create a work
execute successful
environment in which
change strategies in
the employees are
the organization.
motivated, contributing
and happy.