HUMAN RESOURCE MANAGEMENT (HRM)

2 Cr. Hr.

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 CHAPTER ONE
HRM: AN OVERVIEW

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Human Resources (HR)?

Human resources are the people an

organization employs to carry out various jobs,
tasks, & functions in exchange deserved
payments.
 HRM?
• It is the practice of managing people to
achieve better performance.
• It is the practice of recruiting, hiring,
deploying & managing an organization's
employees.

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 Objectives of HRM

1. Societal objectives:
• Measures put into place that responds to the ethical
and social needs of the company and its employees.
• This includes legal issues such as equal opportunity
and equal pay for equal work.
2. Organizational objectives:
• Actions taken that help to ensure the efficiency of
the organization.
• This includes providing training, hiring the right
number of employees for a given task or
maintaining high retention rates.
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 Cont’d…
3. Functional objectives:
• Guidelines used to keep HR functioning properly
within the organization as a whole.
• This includes making sure that all of HR's resources
are being allocated to their full potential
4. Personal objectives:
• Resources used to support the personal goals of
each employee.
• This includes offering the opportunity career
development as well as maintaining employee
satisfaction. 6
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 Nature of HRM
• Continuous Process
• Inherent Part of Management
• People Centered
• Pervasive Function
• Based on Human Relations
• Personnel Activities or Functions
• Basic to all Functional Areas

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 Scope of Human Resource Management
• It is extensive & far-
reaching. HRM in
Personnel
• Therefore, it is very Management
difficult to define it
HRM in
concisely. Employee
• However, we can Welfare

classify the scope of HRM in

Industrial
HRM into three Relations
categories

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 1. HRM in Personnel Management:

It is typically direct manpower management that involves:

• manpower planning,
• hiring (recruitment and selection),
• induction and orientation
• training and development,
• transfer,
• promotion,
• employee productivity,
• compensation,
• layoff,
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 2. HRM in Employee Welfare

• It 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 and
– medical services.

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Cont’d…
• It also relates to supervision, employee
counselling, establishing harmonious relationships
with employees, education & training.
• Employee welfare is about determining
employees’ real needs & fulfilling them with
active participation.

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 3. HRM in Industrial Relations

• It is a highly sensitive area.

• It needs careful interactions with labour or
employee unions, addressing their grievances
& settling the disputes effectively in order to
maintain peace & harmony in the
organization.

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 Process of HRM
1. Human Resource Planning (Recruitment, Selection,
Hiring, Training, Induction, Orientation, Evaluation,
Promotion and Layoff)
2. Employee Remuneration & Benefits Administration
3. Performance Management
4. Employee Relations
• All processes are integral to the survival & success of
HR strategies & no single process can work in
isolation; there has to be a high level of conformity
and cohesiveness between the same.

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 1. Human Resource Planning
• HR planning: determining the number and type of
personnel needed now and in the future
• Recruitment: It aims at attracting applicants that match
a certain Job Criteria.
• Selection: The next level of filtration. This aims at short
listing candidates who are the closest match in terms
qualifications, expertise and potential for a certain job.
• Hiring: This involves deciding upon the final candidate
who gets the job.
• Training and Development: These processes work on
an on board employee for up gradation of his skills &
abilities. 15
2. Employee Remuneration and Benefits
Administration
• It is the process that involves deciding upon
salaries and wages, Incentives, Fringe Benefits
and Perquisites etc.
• This process is an important motivator in any
job.
• Performing employees seek raises, better
salaries and bonuses.

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 3. Performance Management
• It helps the organization to train, motivate & reward
workers.
• It is also meant to ensure that the organizational goals are
met with efficiency.
• The process can be conducted for not only the employees
but can also be conducted for a department, product,
service or customer process; all towards enhancing or
adding value to them.
• Nowadays, there is an automated Performance
Management System (PMS) that gathers & provides all the
information to help managers evaluate the performance of
the employees & assess them accordingly on their training
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& development needs.
 4. Employee relations
• It includes Labor Law and Relations, working
environment, employee health and safety, employee
conflict management, quality of work life, workers
compensation, employee wellness and assistance
programs, counselling for occupational stress.
• All these are critical to employee retention apart
from the money or remuneration which is only a
hygiene factor.
• Employee retention is a nuisance in organizations,
especially in industries that are hugely competitive
in nature.
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EVOLUTION OF HRM: it can be seen by dividing in to the following periods
Before 1900  Before that time, most hiring, firing, training, and pay-adjustment decisions
were made by individual supervisors
 Also the scientific management studies conducted by Fredreic W. Taylor and
others began in 1885, helped management identify ways to make work more
efficient and less fatiguing thus increase worker productivity.
As organizations grew larger, many functions such as purchasing and personnel
began to be performed by specialists. In1910,the first personnel departments
was established .
Task design and efficiency by Frank and Lillian Gilbert (Time and motion
study)
Mayo (1920s), discovered the impact of work groups on individual workers
 These led to development & use of employee counseling & testing in industry.

1930s -1950s In the 1930s, the passage of labor laws, and the National Labor Relations Act
of 1935 which led to the growth of unions; importance of collective
bargaining, and union/management relations
 Labor unions’ rise to power in the 1940s
 1950s, the responsibilities of the personnel area expanded in many
organizations, especially in manufacturing, utilities, and transportation
During this time, personnel departments deals on keeping payroll and
retirement records, arranging and organizing picnic.

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EVOLUTION OF HRM: it can be seen by dividing in to the following periods

1960s - Increased legal requirements and constraints arising from the social legislation
1980s of the 1960s and 1970s forced dramatic changes in the HRM departments of most
organizations.
HR departments had to become much more professional and more concerned
about the legal ramifications of policies and practices.
 It origin in the United States in the 1950s. It did not gain wide recognition
until the beginning of 1980s, and in the UK until the mid to late 1980s
1990s  During the 1990s, Organizational restructuring continued.
 A study of HR executives involved in reengineering the HR management in
their companies found that the traditional HR function began shifting its
emphasis. The HR managers of the future will lead to be more strategic and
proactive.

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 Major challenges of HRM
1. Economic and technological change: Shift in human
competencies, Growth in knowledge needs, Rapid response,
Quality improvement, Tele-work or telecommuting)
2. Globalization: It refers to the tendency of companies to
extend their sales, ownership, and/or manufacturing to new
markets abroad
 Diminish/ fadeout of business boarder
3. Workforce availability and quality concerns:
 Inadequate supply of workers with the skills needed to
perform the new jobs being added; (There is greater gap
between job growth and worker supply exists.)
 Quality deficit (there is a gap between the KSA required by
many jobs and those possessed by employees and
applicants. 21
– Growth in contingent workforce: In the past, contingent work
force/ or temporary workers were used for employees were not
on job due to vacation, maternity leave, or workload peaks,
but today "contingent workers” (temporary workers,
independent contractors, leased employees, and part-timers)
represent over 20% of the workforce.
– The introduction of the concept of outsourcing.
4. Demographics and diversity issues (women are in the labor
force in much greater numbers than ever before, Racial/Ethnic
diversity, Aging of the workforce, Balancing work and family.
5. Increase in Education Level: The governments of various countries
are taking steps to eradicate illiteracy and increase the education level
of their citizens. Educated consumers and workers will create very
tough task for the future managers.

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6. Organizational restructuring
A common transformation has been to flatten organizations by
removing several layers of management and to improve
productivity, quality, and service level while also reducing costs
as a result of Business Process Reengineering/BPR.
Due to BPR, the nature of work has changed from individual
work to team work in most companies
Managing new trend is not as easy as the former one and as
the result of this, HRM specialists have to design different new
mechanism to cope the changing environment of work.
7. Increasing Size of Workforce: The size of organizations is
increasing. A large number of multinational organizations have
grown over the years. The number of people working in the
organization has also increased, and the management of
increased workforce might create new problems and challenges
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as the workers are becoming more conscious of their rights.
8. Increasing aspiration of Employees: Considerable
changes have been noted in the worker of today in
comparison to his/her counterpart of 1950s. Workers are
becoming more aware of their higher level needs and this
awareness would intensify further in the future workers.
9. Changes in Legal Environment: Many changes are taking place in
the legal framework within which the industrial relations systems is
operating. It is the duty of the HRM to be aware of these changes and
to bring about necessary adjustments within the organizations so that
greater utilization of human resources can be achieved. This,
definitely, would remain a major challenge for the HRM.

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• 10.Changes in Political Environment: There
may be greater Government‘s interference in business
to safeguard the interests of workers, consumers
and the public at large. Government‘s participation
in trade, commerce and industry will also pose many
challenges before management. The Government may
restrict the scope of private sector in certain areas in
public interest
• 11. Managing Change: As the organizations are
going Global, this is one problem faced by many
organizations of managing the change in the
organization and how to make people acquainted with
the changes
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12.Managing low attrition rate: More competition will be a
cause for high attrition. Now there is the opportunity for the
Human Resource Management to introduce and practice
good retention mechanism/strategies.
13.Balancing work and personal life: Gigantic responsibility
is on the shoulder of an HRM to create a balance between
the work life and personal life by flexi work hours,
paternity leaves, and vacations are some of the options in
hand.
14.Stress and Conflict: Extended working hours, target pressures,
high competition etc adds stress and conflicts in the Organization. It
is the responsibility of the HRM to have proper responses to the
stress and conflict before it causes damage to someone' personality.

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T h a n k
You
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