Human Resource

Management
By: Sushil Regmi
MBA(2009-11, FMS, BHU)
Lecturer
 Topics covered
• The concept of HRM
• Functions of HRM
• Changing dimensions of HRM
• Changing role and challenges of HRM managers
• Essential skills for HR managers
• Purpose and structure of HR department
• HRM as a shared function;
• External and internal context of HRM;
• HRM in the Nepalese context.
Introduction to HRM
 Human Resource Management
• Is there any evaluation system of such HR?
• Is there frequent turnover of HR?
• Is there any motivation technique?
• Is there performance appraisal and reward
management system?
• Is there any guidelines in administering disciplines
and grievance handling?

The answer of all these questions is human resource

management.
Concept of Human Resource Management
- Employees working in an organization are
viewed as a valuable resources.
- They should be managed effectively in order
to increase productivity.
- The HR contribute to the ability of the
organization to compete in domestic and
global market.
- If managed (HR) properly, the organization
can take many benefits from such valuable
resources.
 Definition of Human Resource
Management

HRM refers to the policies & practices involved in carrying out the people or
human resources aspects of a management position, including recruiting,
screening, training, rewarding & appraising.
- Gray Dessler.
HRM 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 high levels of performance, and ensuring that they
continue to maintain their commitment to the organization are essential to
achieving organizational objectives. - DeCenzo and Robbins.
Key points from definition of HRM are,

- “people” dimension / or regards people as strategic resources

- is closely linked with corporate or business strategy.
- is concern with the commitment of employees and advocate
employee as a resources to be developed rather than as costs.
- recognizes the common interest and needs of employees and
organizations.
- includes both line and staff managers.
- recognizes employees as important assets.
- it coordinates all the activities related to human resources.
 Conclusion
• Human Resource Management (HRM) is a process
concerned with the management of personnel along with
their energies and competencies for the achievement of
organization objectives by the process of acquiring,
developing and utilizing such personnel.
Issues Driving the evolution of Human Resource Management
Decade Major business issues Common titles for “HR”
Pre-1900s Small business and workers guilds No “HR” people

1900s Growth of larger- scale enterprise due to Labor relation,

effects of earlier industrial revolution, World personnel
War I
1920s World-wide economic depression, Hawthorne Industrial relation,
“human relations” studies, first labor legislation personnel

1940s World War II, growth of large diversified Personnel

enterprise administration
1960s Civil rights and compliance Personnel

1980s Growing impact of globalization and Personnel/ Human

technology, and emergence of the Resource
knowledge/service economy, human capital
2000s Modern organizations, organization Strategic Human
effectiveness, strategic HR planning Resource Management
 Objectives
• To ensure availability of competent and dedicated workforce in
organization.
• To select and appoint right person to right job
• To introduce training, seminars, workshops and other efficiency
development programs of employees.
• To motivate employees
• To provide equal opportunities to all employees
• To develop an environment of mutual cooperation and sense of
belonging among the staff
 Functions
• Acquisition: It includes activities of manpower planning, recruitment,
selection, placement and socialization of workforce.
• Development: It insures the required competencies of the workforce to
perform assigned task efficiently. It includes training, seminars and
workshops.
• Utilization: It ensures optimum utilization of human resources. it develops
sense of belonginess among work force. It involves motivation,
performance appraisal, reward management.
• Maintenance: It ensures retaining productive employees in the
organization for a long time. It is possible only by maintaining good
relationship with employees.
Why is human resource
management is important for
all managers?(Need of HRM)
• Avoid personal mistakes
• Improve profits and performance
• For Entrepreneurship
• To gain experience in human resource management
 Human Resource Planning
Concept:
Human resource planning, also known as Manpower planning, is a process of
analyzing an organization's human resources needs under changing conditions and
developing the activities necessary to satisfy these needs.
• Human resource need to be carefully planned.
• HRP is the starting point of HRM.
• It is essential for acquisition function of HRM.
• It sets HRM goals and ways of achieving them.
• HRP is the process of predetermining future HR needs and choosing courses of action
needed to satisfy those needs.
 Definition:
• Workforce (or employment or personnel)
planning is the process of deciding what
positions the firm will have to fill, and how to
fill them. It embraces all future positions, from
maintenance clerk to CEO.
Garry Desler
 Human Resource Planning
To sum-up, HRP
- is related with the planning of HR based on strategic planning of the
organizations.
- estimate or forecast the demand and supply of manpower for the future to
achieve organization’s objectives.
- assures that sufficient number of skilled and motivated manpower is available
in the organization.
- tries to utilize human resources in a cost-effective and efficient manner and,
- develop a mechanism to monitor & evaluate the implementation of HRP.
 Conclusion
HRP is process of analyzing, anticipating the HR requirements
and fulfilling them in accordance with business strategy. HRP
ensures right people at right place in right time with right
capabilities.
24
 Characteristics of HRP
• Balance Staffing: HRP provides a proper balance in the organizational job positions. If there is
any vacant position in the organization, it will search for the best available person to fill the
place from within or outside the organization.
• Optimum utilization of Resources: The best resource which an organization have is its
manpower. Human Resource Planning develop this manpower at its best in terms of efficiency
which later utilizes the other resources available in the organization to achieve the goals.
Hence, HRP results in optimum utilization of resource.
• Having manpower inventory: There are several departments in an organization which heads
several employees under it which have several skills and abilities. These employees coordinate
with each other for the achievement of the objectives of the organization. Human Resource
Planning helps in creating this large inventory of manpower.
 Cont.………

• Adjusting Demand/Supply: HRP estimates the number of manpower

required in the organization to continue its operations and then searches for
the prospective employee who with his/her service can provide the best
value to the organization.
• Creating Healthy environment: Organizational objectives are accomplished
by the integrated efforts and value of time which employees provide to the
organization. Here, HRP helps in creating the best possible environment for
the employees by providing them with the best tools and equipment,
guidance, emotional support and hand-holding in the tough time.
 Cont…..
• Continuous process: Human Resource Planning is a
continuous process. There is a cycle of hiring and firing of
employees which keep continuously moving just like the cycle
of life and death. An employee once hired in the organization
cannot work for their whole life.
• Future oriented: HRP is a future-oriented process and is always
ready to face any new change in the future within or outside the
organization and continuously and develops the organizational
men power as per those future needs and requirements.
 Objectives/Purpose of HRP
1. To ensure effective use of human resources in the enterprise.
2. To forecast future need of human resource and supply optimum level of
manpower in the organization.
3. To balance the demand and supply of human resource by avoiding
surplus or shortfalls of manpower in the enterprise.
4. To cope with internal and external environmental changes.
5. To help the management in formulating promotion and transfer policies.
6. To help in developing human resource inventory.
7. To ensure effective control system
 Importance(Need) of Human Resource Planning
1. Supply future personnel needs: planning is vital for determining personnel
needs for the future. Without HRP, the organization can’t get right person at
right time and right cost.
2. Cope with change: HRP enables the organization to cope with changes in
markets, technology, products and government regulations. Such changes often
generate changes in job content, skills, number and types of personnel.
3. Retain high talent personnel: There is often a scarcity of high talent people
in organization. The lead time required hire and develop such personnel is
long. Much effort has to be devoted to long range career development,
counselling, planned work assignment and appropriate rewards.
 Importance of Human Resource Planning

4. Supports strategic planning: Human resource planning is an

essential component of strategic planning. It is an unavoidable part of
strategic planning. HRP is directed towards managing HR at all levels
of business for implementing the strategy.
5. Helps to implement equal employment opportunity: It help to
monitored government’s affirmative action program must be
implemented in regard to hiring, placement, training, compensation
and advancement.
 Importance of Human Resource Planning
6. Win or satisfy government contracts: To bid for government
contracts, a firm must supply detailed information on its manpower
resources. To be competitive, it must plan for and develop appropriate
human resources.
7. Foundation for HR functions: HRP is the starting point of HRM
such as recruitment, selection, personnel movement ( transfer and
promoting) and training and employee development. HRP is needed
because it is the foundation for HR activities throughout the
organization.
 Process of HRP
1. Objectives of Human Resource planning: Human resource planning must be
matched with overall organizational plans. It should be concerned with
filling future vacancies rather than matching existing personnel with
existing jobs. The objectives can vary across the several departments in
the organization such as the personnel demand may differ in marketing,
finance, production, HR department, based on their roles or functions.
2. Current Manpower Inventory: Current manpower stock must be continuously
maintained by every department. Manpower inventory must have the
detailed bio-data of each individual . This record not only help in
employee development but also in the finding out the surplus/ shortage of
manpower.
 Cont…….
3. Demand and Supply Forecasting: The human resources required at different
positions according to their job profile are to be estimated. The available internal and
external sources to fulfill those requirements are also measured. There should be
proper matching of job description and job specification of one particular work, and
the pro­file of the person should be suitable to it.
4. Estimating Manpower Gaps: Comparison of human resource demand and human
resource supply will provide with the surplus or deficit of human resource. Deficit
represents the number of people to be employed, whereas surplus represents
termination. Extensive use of proper training and development programme can be
done to upgrade the skills of employees.
 Cont.…..
5. Employment plan/Action Plan: The human resource plan depends on whether there
is deficit or surplus in the organization. Accord­ingly, the plan may be finalized either
for new recruitment, training, interdepartmental transfer in case of deficit. Termination,
or voluntary retirement schemes and redeployment in case of surplus.
6. Training and Development: it is very necessary for the employees to keep them
updated in the job they are doing. The training programmes are conducted to equip the
new employees as well as the old ones with the requisite skills to be performed on a
particular job.
7. Appraisal of Manpower planning: Finally, the effectiveness of the manpower
planning process is to be evaluated. Here the human resource plan is compared with its
actual implementation to ensure the availability of a number of employees for several
jobs.
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HRM system External Environment Factor ( PESTEL, labour market, trade union, Global business)

Input Process Output

Objectives/Strategies of Productivity
the organization Acquisition Quality of work life
Plans, Policies and Development Readiness for change
Procedures Motivation Goal achievement
Organization structure Maintenance Job satisfaction
Communication and
decision making
Environmental and Social
obligations

feedback

Internal Environment (Organizational Strategy, Culture, Structure, Labour union,

organizational Activities etc.
Human Resource outcomes

• Quality of work life

• Productivity
• Readiness to change
 Quality of Work Life (QWL):

• A higher quality of work life leads to increased job

satisfaction, motivation, and overall well-being, which, in
turn, can contribute to higher employee retention rates,
improved morale, and better organizational
performance.
Productivity

• Improved productivity not only benefits the

organization by achieving its goals and objectives
more efficiently but also enhances employees’ job
satisfaction and motivation.
Readiness to change

• When employees are ready and willing to embrace

change, organizations can navigate transitions more
smoothly, implement innovations effectively, and
remain competitive in a dynamic business
environment.
Conclusion

• Overall, these human resource outcomes are

interconnected and mutually reinforcing. A positive quality
of work life and increased productivity can contribute to a
greater readiness to change, and a culture of change
readiness can, in turn, enhance both employee well-being
and organizational performance. Effective human resource
management is key to achieving these outcomes and
creating a thriving and adaptable organization.
Challenges for HR manager

• Globalization
• Empowerment of Employees
• Ethical HR activities
• Outsourcing
• Managing workforce diversity
• Work life Balance
Chapter end Assignment-2

• What do you mean by HRM? Explain its major

objectives.
• Explain the major functions of HR manager.
• Describe HRP process in detail.
• Draw the diagram of HRM system. Explain its
components.