Module I

Topic: Introduction to HRM

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HR Meaning & Definition

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 HR Meaning & Definition

• HR plays a key role in helping companies deal with a

fast-changing business environment and a greater
demand for quality employees in the 21st century.

• Human resources (HR) is the division of a business

that is charged with finding, screening, recruiting,
and training job applicants, as well as administering
employee-benefit programs.

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 Role of HR Department
• HR department takes care of the organization’s most
valuable asset; its employees.
• HR professionals make sure that employees have
everything they need to perform their day-to-day
tasks and they’re also responsible for creating a
healthy work environment that attracts and retains
qualified people.
• An HR department is tasked with maximizing
employee productivity and protecting the company
from any issues that may arise within the workforce. 
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 What is Human Resources (HR)?

• In an organization, Human Resources is the

department in charge of all employees and
employee-related operations.

• Takes care of End to End activities in Employee Life

Cycle.

• As a term, we also use it to describe the entire

workforce of an organization.

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 Edwin Flippo
• Human Resource Management 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.”

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HR Types & Recent Trends

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 Types and Recent Trends
• In most cases, especially in large companies, different
functions are managed by different HR professionals,
who report to the HR Director or the HR Manager.

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 List of common HR job titles
• Senior HR Manager
• HR Executive
• Payroll Manager
• HR Analyst 
• HR Assistant
• Recruitment Manager
• Talent Acquisition Manager
• HR Advisor
• HR Recruiter
• HR Generalist
• HR Specialist
• HR Administrator
• HR Administrative Assistant 9
 Who is responsible for Human
Resource Management?
• Human resource officer or Manager is responsible for human
resource management in the organization.

• The HR Director is a top-level manager responsible for the

administration of all human resource activities and policies.
The director oversees compensation, benefits, staffing,
affirmative action, employee relations, health and safety, and
training/development functions. They also supervise
professional human resources staff.

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 New HR Specializations
• Diversity and Inclusion Manager
• HR Onboarding Specialist
• Compensation and Benefits Specialist 

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 Types and Recent Trends
• As a result of a shift from the administrative
role that HR departments used to have to a
more holistic, strategic approach, the name
“HR” has even been removed from the job
title and replaced with “talent management”,
“talent acquisition” and “people operations”.

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13
 Key Takeaways
• Nearly 60% of employees want to work remote full-time
after the pandemic, according to one survey.

• Technology adoption and deployment is a priority as

companies seek to unify dispersed, digital-first
workforces.

• Two-thirds of employees value when their feedback is

heard and acted on.

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 Key Takeaways
• In the face of mental health adversity, companies respond
by providing resources, cutting costs and taking other
measures to support well-being.

• Data will be the new currency and a core part of how HR

operates in the coming years.

• Ensuring employees have the skills they need is a top

priority among business leaders.

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HRM: Objectives, Scope, Functions,
Trends & Practices

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 Human Resource Management

• As a result of a shift from the administrative role that

HR departments used to have to a more holistic,
strategic approach, the name “HR” has even been
removed from the job title and replaced with “talent
management”, “talent acquisition” and “people
operations”.

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 Decenzo and Robbins
• “Human Resource Management is concerned with
the people dimension” in 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 is essential to achieve organizational
objectives. This is true, regardless of the type of
organization – government, business, education,
health or social action”.

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Functions of HRM

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Objectives of HRM

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 Primary objective of HRM
• To ensure the availability of competent and willing
workforce to the organization as well as to meet the
needs, aspirations, values and dignity of individuals/
employees and having due concern for the socio-
economic problems of the community and the
country.

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 Objectives of HRM
• Societal Objectives
• Organizational Objectives
• Functional Objectives
• Personal Objectives
• General Objectives

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 Objectives of HRM
(1) To achieve the organizational goals by proper utilization of human
resources.
(2) To develop and maintain healthy working relationships among all the
employees and to adopt sound, desirable organization structure.
(3) To integrate individual and group goals within an organization.
(4) To create opportunities and facilities for individual or group developments
according to the growth and development of the organization.
(5) To identify and satisfy individual and group needs, such as fair wages and
salaries, incentives, welfare facilities, social security, prestige, recognition,
security, status etc.
(6) To motivate the employees and keep their morale high.

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(7) To develop and maintain healthy relations between management and
employees.
(8) To develop the human assets continuously through the training and
development programmes.
(9) To contribute in minimization of socio-economic evils such as
unemployment problems, in equal distribution of income and wealth. More
employment opportunities for women etc.
(10) To provide an opportunity to employees to participate in management.
(11) To provide desirable leadership and lead the working groups.
(12) To provide healthy hygienic working conditions to the employees.
(13) To retain the workforce by maintaining stability of employment.

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 Scope of HRM
• The scope of Human Resource Management
refers to all the activities that come under the
banner of Human Resource Management. 

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Scope of HRM

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 Scope of HRM Explained
• Human resource planning :- HRP refers to a process by which the company
to identify the number of jobs vacant, whether the company has excess
staff or shortage of staff and to deal with this excess or shortage.
• Job analysis design :- Job analysis gives a detailed explanation about each
and every job in the company.

• Recruitment and selection :- Based on information collected from job

analysis the company prepares advertisements and publishes them in the
newspapers. This is recruitment. A number of applications are received
after the advertisement is published, interviews are conducted and the
right employee is selected.

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• Orientation and induction :- Once the employees have been selected
an induction or orientation program is conducted. The employees are
informed about the background of the company, explain about the
organizational culture and values and work ethics and introduce to the
other employees.

• Training and development :- Every employee goes under training

program which helps him to put up a better performance on the job.
Training program is also conducted for existing staff that have a lot of
experience. This is called refresher training. Training and development is
one area where the company spends a huge amount.

• Performance appraisal :- Once the employee has put in around 1 year of

service, performance appraisal is conducted that is the Human Resource
department checks the performance of the employee. Based on these
appraisal future promotions, incentives, increments in salary are decided.

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• Compensation planning and remuneration :- There are various rules
regarding compensation and other benefits. It is the job of the Human
Resource department to look into remuneration and compensation
planning.

• Motivation, welfare, health and safety :- Motivation becomes important to

sustain the number of employees in the company. It is the job of the
Human Resource department to look into the different methods of
motivation. Apart from this certain health and safety regulations have to
be followed for the benefits of the employees. This is also handled by the
HR department.

• Industrial relations :- Another important area of Human Resource

Management is maintaining co-ordinal relations with the union members.
This will help the organization to prevent strikes lockouts and ensure
smooth working in the company.

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 Functions of HRM
Human Resource Management 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
• Human Resource Management is a multidisciplinary subject.
It includes the study of management, psychology,
communication, economics and sociology.
• It involves team spirit and team-work.
• It is a continuous process.

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Operative Functions of HRM

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HRM Process

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 Role & Responsibilities of
HR Manager
Human Resource Management 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
• Human Resource Management is a multidisciplinary subject.
It includes the study of management, psychology,
communication, economics and sociology.
• It involves team spirit and team-work.
• It is a continuous process.

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 Strategic Human Resource
Management: Meaning, Concept &
Scope of SHRM

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 Strategic HRM
• SHRM is defined as alignment of strategic business
goals of the organization with human resources, so
as to foster innovation and improve motivation,
satisfaction, productivity, and eventually overall
performance.
• Strategic HRM is a relatively new term, which
differentiates itself from traditional HRM which was
just merely an organizational function.

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 Prof. Gary Dessler
“Strategic Human Resource Management means
formulating and executing HR systems i.e. HR
policies and activities that produce the
employee competencies and behaviors the
organization needs so as to achieve its strategic
aims”.

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 Importance of SHRM
• There was an increasing need felt across sectors of HR playing
a vital role in improving productivity in organizations to
achieve a competitive edge. So, strategic HRM came into
existence.

• The primary goal of strategic human resource management is

to solve business objectives or obstacles that may not occur
within the direct purview of HRM. This has to be done
through effective HRM itself. So it is basically tuning of human
resource management (HRM) to suit business objectives. The
other types of HRM are Hard HRM and Soft HRM.

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 Scope of SHRM
• The scope of SHRM is much beyond HRM that
primarily deals with every aspect of a business that
affects employees, such as – manpower planning
recruitment and selection, induction, training and
development, performance management and
appraisal, promotion or removal, employee
retention, compensation management, safety
management, grievance redressal, management of
unions, negotiation and personnel administration.

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 Elements of SHRM

The pillars for SHRM are:

a) Humans are not just Resources, but they are an asset to an
organization, which should provide a competitive edge to the
organization.
b) It’s the people within the organization who implement such
change.
c) Every change is achievable only through a proper planning
followed by execution with respect too the organizational needs
and objectives.
d) The main aim of strategic HRM is to concentrate on the ways
through which the firm can take an edge over its competitors.

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e) According to Hendry and Pettigrew, SHRM has four different
meanings, mainly:
- Making use of planning.
- Designing and managing people via a coherent approach.
- Developing systems which are based on employment policy and
workforce strategy.
- Bringing out coordination between HR activities and other
policies into developing business strategy.
- Considering people as resources and achieving competitive
edge by making the best of them.

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Roles of SHRM

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 Objectives of SHRM
The main aim of strategic HRM is to address issues related to organizational
culture, structure, effectiveness, resource matching, and performance. It
involves developing the process capabilities as well as managing the human
capital effectively. The approaches used in strategic HRM can be categorized
into 5 categories mainly:
1. Resource based Strategy: Addresses issues wherein the strategic
capabilities of the firm can be increased.
2. High Commitment Management: By enhancing the mutual commitment
between the managers and their employees.
3. High Involvement Management: Treating employees as their partners in
the business.
4. High Performance Management: Improves the performance of the firm by
focusing on improving the productivity, growth and profitability rate of its
people.
5. Achieving Strategic Fit: Integration of human capital and resources is
necessary for smooth and profitable operation of business.
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 HR Policies and Procedures
• An organization works within a framework or within
certain guidelines. These guidelines are set by the
top management and different departments of the
company including the HR team completely
depending on the type of HR policies and procedures
that need to be implemented. This framework and
these guidelines are known as the HR policies and
procedures of the company.

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• The HR policies and procedure of any company
describes the business of the organization and how
do you need to execute the business under what
guidelines do you need to perform.

• HR policies, procedures and practices establish a

framework to help to manage people. They cover
everything from how the business recruits its staff
through to ensuring employees are clear about
procedures, expectations and rules, are how
managers can go about resolving issues if they arise.
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 Why are HR policies, procedures
and practices important?
• They help develop your company culture.
• They help employees to understand what is expected of them.
• They reflect your business standards.
• They provide guidance and tools for managers to assist with
the management of employees.
• They provide rules surrounding fairness, consistency and
clarity.
• They ensure you’re meeting your legal obligations inregards to
employees.
• They help to integrate new staff members and bring them up
to speed in the shortest amount of time.

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 Types of HR Policies in India
Majorly, there are two types of HR policies in India. General policies and specific
policies.

1. General policies
General policies are the kind of policies that every organization requires and has.
They are usually formulated by the leaders of the company.

2. Specific Policies
Specific policies are the kind of HR policies which relate to certain issues or
concerns of a specific organisation. They are crafted specifically to suit the
organisation by the HR department. These policies relate to issues concerning
the compensation, recruitment, benefits, etc. of the employees.

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 HRD Strategies in Organizations
HRD Strategies are a plan that defines how the
human resources would be utilized through the
use of an integrated array of training,
organizational development and career
development efforts to achieve individual,
organizational objectives.”

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• Mankin (2009: 6) views HRD as: encompassing a
range of organizational practices that focus on
learning; training, learning and development;
workplace learning; career development and lifelong
learning; organizational development; organizational
knowledge and learning.

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 Hamlin and Stewart (2011)
• A number of important considerations about HRD are:

• HRD is conceptualized as a process that occurs in workplace

settings and is designed to facilitate individual and group
learning in the context of jobs, work and careers.

• HRD focuses on organizational learning, change and

development.

• HRD focuses exclusively on work-related issues within

organizations. It is less concerned with societal and global
issues.

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 Business Strategy, HRD and
Performance
• Alignment is Essential to Effective
Performance, Profitability
• Aligning Workforce Strategies with Business
Objectives
• Integrate HR with Operating Strategy

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 Job Analysis

Job Description- job requirements, job duties, job

responsibilities, tasks.

Job Specification-Qualification, Experience, Skills,

Abilities.
The process of Job Analysis is essentially that of
data collection and then analyzing the data.

The data may be classified as :

-Job Identification
-Nature of the Job
-Operations involved in the job
-Materials and Equipment's to be used in the job
-Personal attributes
-Relationship with other jobs
 Steps in Job Analysis
• Organize and Plan for the Program
• Obtain current job design information
• Conduct needs research
• Establish Priorities in the jobs to be analyzed
• Collect job data
• Prepare job description and classifications
• Develop Job Specifications
• Positional Analysis Questionniare was developed with the
hope that it could be used with a minimum of training on the
part of the individual analyzing a job.

• Compared to many other methods in job analysis, PAQ has

been found to be effective, inexpensive, and easy to use for
human resource and trainees. Its purpose is to define the
duties and responsibilities of a position in order to determine
the appropriateness of the position classification, essential
functions and/or whether or not the position is exempt from
overtime.

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• PAQ contains 195 items called "job elements" and consists of
six different divisions:

• Information input
• Mental processes
• Work Output
• Relationship with other people
• Job context
• Job related variables

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Functional Job Analysis

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