INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Management
 Management involves setting goals and
allocating scarce resources to achieve the
desired goal.
 Management is the process of efficiently(in a way
that works well and produces good results by using the available time, money, supplies etc in the
most effective way) achieving the objectives of the
organization with and through people.
 It refers to " the process of efficiently completing
activities with and through other people"
(DeCenzo and Robins,2008).
 So people is key resource for a success of
particular organization
1-2

Human Resource
According to Leon C. Megginson
 The knowledge, skills, creative abilities, talents and aptitudes
obtained in the population----from the national point of view
 The inherent abilities, acquired knowledge and skills as
exemplified in the talents and aptitudes of its employees----from
the viewpoint of the individual enterprise
According to Harbison
 The energies, skills, talent, and knowledge of people, which
potentially can and should be applied to the production of goods
and services
 Several terms have been used by various management thinkers to
represent human resources
 These include ‘personnel’, people at work’, ‘manpower’, ‘staff
and employees’ 1-3

HR CONT…..
 The success of any organization depends very much on the quality
of its human resources.
 People should be treated as human beings as resources and assets
 Human resources are multi-dimensional in nature
1-4

HRM
 The process of hiring and developing employees
so that they become more valuable to the
organization.
 It includes conducting job analyses, planning
personnel needs, recruiting the right people for the
job, orienting and training, managing wages and
salaries, providing benefits and incentives,
evaluating performance, resolving disputes, and
communicating with all employees at all levels.
 It is the recruitment, selection, development, utilization,
compensation, and motivation of the human resources by the
organization.”
1-5

HRM (Contd..)
 HRM refers to the practices and policies
somebody need to carry out the personnel
aspects of his/her management job, specifically
acquiring, training, appraising, rewarding, and
providing a safe, ethical, and fair environment for
his/her company's employees (Dessler, 2009).
1-6

HRM CON….
 It is the planning organizing, directing, and controlling of the
procurement, development, compensation, integration and
maintenance and separation of human resources to the end of those
individual and social objectives are accomplished”.
Importance of Human resource management
 It helps management in the preparation, adoption and continuing
evolution of personnel programmes and policies.
 It supplies skilled workers through scientific selection process.
 It ensures maximum benefit out of the expenditure on training and
development and appreciates the human assets.
 It prepares workers according to the changing needs of industry and
environment. 1-7

Importance Cont…..
 It motivates workers and upgrades them so as to enable them to
accomplish the organization goals.
 Through innovation and experimentation in the fields of
personnel, it helps in reducing costs and helps in increasing
productivity.
 It contributes a lot in restoring the industrial harmony and
healthy employer-employee relations.
 It establishes mechanism for the administration of personnel
services that are delegated to the personnel department.
1-8

Human Resource Management Objectives
 To ensure effective utilization of human resources
 To establish and maintain an adequate organizational structure of
relationships among all the members of an organization
 To generate maximum development of human resources within the
organization
 To ensure respect for human beings by providing various services and welfare
facilities to the personnel.
 To ensure reconciliation of individual/group goals with those of the
organization
 To identify and satisfy the needs of individuals by offering various monetary
and non-monetary rewards.
 To achieve and maintain high morale among employees in the organization by
securing better human relations. 1-9

Basic concept of HRM
• Human- people, us, employees– the most
valuable organizational resource
• Resources- assets to an organization
• Human resource- is the total of
knowledge, skills, creative abilities, talents
& aptitudes of an organization’s workforce
as well as the values, attitudes & beliefs of
the individual involved
• HRM = People dimension in management
• HRM: the application of management
functions and principles related to
employees 10

11
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
Aspects to be Studied Under HRM
• Conducting job analyses (determining the nature of each
employee's job)
• Planning labor/human resources needs and recruiting job
candidates
• Selecting job candidates
• Orienting and training new employees
• Appraising performance
• Managing wages and salaries (how to compensate
employees) •
• Providing incentives and benefits
• Communicating (interviewing, counseling, disciplining)
• Training and developing current employees •
• Building employees commitment

Components of a HRM System
1-12
Recruitment and selecetion
Training and Development
Performance appraisal and feedback
Pay and rewards
Labor relations

Functions of HRM
HRM has four basic functions:
Staffing (HRP, Recruiting ,Selection)
Training and Development (orientation, Training
and development
Motivation (Performance appraisal ,reward and
compensation, Employee benefit)
Maintenance (safety and Health, communication,
employee relation
Hiring people, preparing them, stimulating them, and
keeping them to ensure organization keep going
with efficiency and in a productive way.
1-13

ENVIRONMEN
T
ENVIRONMEN
T
INPUTS
Knowledge
Skills
Attitudes
Talents
Human Resource
Management Activities
OUTPUTS
Satisfaction of
Employee ‘s
Objectives
Stakeholders
Satisfaction
Satisfaction of
Organizational
Objectives
Society’s
satisfaction
Politica
l
Economi
c
Social
Technologic
al
Human Resource Management Model

Personnel Management VS Human Resource Management
Basis of
Difference
Personnel Management Human Resource Management
Meaning It is traditional approach of
managing people at workplace
and is concern of personnel
department.
It is modern approach of
managing people at workplace
and is concern of managers of all
level (from top to bottom).
Nature It is a routine function. It is a strategic function.
Focus Efficient management is given
priority.
Human values and individual
needs are given priority.
Function Personnel administration, labor
relation and employee welfare
are major functions of
personnel management.
Acquisition, development,
utilization and maintenance of
human resource are major
functions of human resource
management.
Objective It manages people in
accordance with organization’s
goal.
It determines human resource
needs and formulate policies by
matching individual’s needs with
organization’s needs.

Personnel Management VS Human Resource Management
Basis of
Difference
Personnel Management Human Resource Management
Treatment of
manpower
Machines or Tools Asset
Job design Jobs are designed on the
basis of division of labor.
Jobs are designed on the basis of
teamwork.
Interest Organization’s interest is
valued the most.
Interest of organization and interest of
employee is harmonized.
Orientation It is discipline, direction
and control oriented.
It is development oriented. It provides
space for employee involvement,
performance and growth.
Communication Communication is limited,
or even restricted.
Communication is open.
Remuneration Based on job evaluation Based on performance evaluation
Result Organizational goal is
achieved and employers
are satisfied.
Organizational goal is achieved and
both employers and employees are
satisfied.

Strategic Human Resource Management
 Strategy is a multi-dimensional concept going well
beyond traditional competitive strategy concepts.
Strategies are broad statements that set a direction.
Strategies are a specific, measurable, obtainable set of
plans carefully developed with involvement by an
institution's stakeholders. These action statements are
linked to an individual or individuals who are
accountable and empowered to achieve the stated result
in a specific desired timeframe. They are patterns of
action, decisions, and policies that guide a group
toward a vision or goals.
1-17

SHRM…..
• It is the practice of attracting, developing, rewarding, and
retaining employees for the benefit of both the employees as
individuals and the organization as a whole.
• HR departments that practice strategic human resource
management do not work independently within a silo; they
interact with other departments within an organization in order to
understand their goals and then create strategies that align with
those objectives, as well as those of the organization.
• Strategic HRM is seen as a partner in organizational success, as
opposed to a necessity for legal compliance or compensation.
• Strategic HRM utilizes the talent and opportunity within the
human resources department to make other departments stronger
and more effective
1-18

SHRM…
 It is Proactive management of the employees of a
company or organization.
 It includes typical human resource components such
as hiring, discipline, and payroll, and also involves
working with employees in a collaborative manner
to boost retention, improve the quality of the work
experience, and maximize the mutual benefit of
employment for both the employee and the
employer.
1-19

SHRM
• It is a branch of Human resource management or HRM.
• It is a fairly new field, which has emerged out of the parent
discipline of human resource management.
• Much of the early or so called traditional HRM literature
treated the notion of strategy superficially, rather as a purely
operational matter, the results of which cascade down
throughout the organization.
• There was a kind of unsaid division of territory between
people-centred values of HR and harder business values where
corporate strategies really belonged.
• HR practitioners felt uncomfortable in the war cabinet like
atmosphere where corporate strategies were formulated.
1-20

SHRM…
 It can be defined as the linking of human resources with
strategic goals and objectives in order to improve
business performance and develop organizational
culture that foster innovation, flexibility and
competitive advantage.
 It means accepting and involving the HR function as a
strategic partner in the formulation and implementation
of the company's strategies through HR activities such
as recruiting, selecting, training and rewarding
personnel.
1-21

How SHRM differs from HRM
 Strategic human resource management focuses on human
resource programs with long-term objectives.
 Therefore the primary goal of strategic human resources is to
increase employee productivity by focusing on business obstacles
that occur outside of human resources.
 The primary actions of a strategic human resource manager are to
identify key HR areas where strategies can be implemented in the
long run to improve the overall employee motivation and
productivity.
 Communication between HR and top management of the company
is vital as without active participation no cooperation is possible.
 HRM focus on properly implementation of HRM process/
components
1-22

Approaches of the SHRM,

Attempts to link Human Resource activities
with competency based performance measures

Attempts to link Human Resource activities
with business surpluses or profit
1-23

Implementing HR strategies
 All too often, 80 per cent of the time spent on strategic
management is devoted to designing strategies and only
20 per cent is spent on planning their implementation.
 It should be the other way round. It is necessary to plan
with implementation in mind.
 Because strategies tend to be expressed as abstractions,
they must be translated into programmes with clearly
stated objectives and deliverables.
 It is necessary to avoid saying, in effect: ‘We need to get
from here to there but we don’t care how.’ Getting
strategies into action is not easy.
 Too often, strategists act like Mr Pecksmith who was
compared by Dickens (1843) to ‘a direction-post which is
always telling the way to a place and never goes there’.
1-24

Implementing…
 The term ‘strategic HRM’ has been devalued in some
quarters; sometimes to mean no more than a few
generalized ideas about HR policies, at other times to
describe a short- term plan, for example, to increase the
retention rate of graduates.
 It must be emphasized that HR strategies are not just
programmes, policies, or plans concerning HR issues that
the HR department happens to feel are important.
Piecemeal initiatives do not constitute strategy.
 The problem with strategic HRM as noted by Gratton et al
(1999) is that too often there is a gap between what the
strategy states will be achieved and what actually happens
to it.
1-25

Benefits of SHRM
1. Identifying and analyzing external opportunities and threats that may be
crucial to the company's success.
2. Provides a clear business strategy and vision for the future.
3. To supply competitive intelligence that may be useful in the strategic
planning process.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent people.
6. To ensure that people development issues are addressed systematically.
7. To supply information regarding the company's internal strengths and
weaknesses.
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10.To ensure business surplus thorough competency 1-26

Barriers of SHRM
The main reason is a lack of growth strategy or failure to
implement one. Other major barriers are summarized as follows:
1.Inducing the vision and mission of the change effort.
2.High resistance due to lack of cooperation from the bottom line.
3.Interdepartmental conflict.
4.The commitment of the entire senior management team.
5.Plans that integrate internal resource with external requirements.
6.Limited time, money and the resources.
7.The statuesque approach of employees.
8.Fear of incompetency of senior level managers to take up strategic
steps.
1-27

Barriers of SHRM
1. Diverse work-force with competitive skill sets.
2. Fear towards victimization in the wake of failures.
3. Improper strategic assignments and leadership conflict over authority.
4. Ramifications for power relations.
5. Vulnerability to legislative changes.
6. Resistance that comes through the legitimate labour institutions.
7. Presence of an active labour union.
8. Rapid structural changes.
9. Economic and market pressures influenced the adoption of strategic
HRM.
10.More diverse, outward looking approach.
1-28

1-29
Organizational culture refers to the basic
assumptions and beliefs shared by members of an
organization
•It can be recognized by observed behaviors such as
the language used and the rituals demonstrated.
Sayings and slogans
•.
Organizational Culture

Key Elements of Organizational
Culture
 Observed behavioral regularities
 Norms (an accepted standard of Behavior
shared by group member)
 Dominant values
 Philosophy
 Rules of the game
 Feeling of climate
1-30

Cont…
• Norms: These are the unwritten agreed-upon values an organization
shares. For example, the norm for a fair day’s work or fair day’s pay is
viewed in a certain way for a particular organization. Some firms may
expect a salaried employee to work as necessary to get a project done,
even if it takes work on weekends to do so.
Usually, the organizational culture can be seen in the dominant values an
organization espouses, such as product quality or low prices.
• Philosophy: A firm’s philosophy can be seen in its slogans, frequent
sayings, and even the mission statement.
The philosophy guides the organization’s policy toward its customers and
employees.
• Rules of the game: Usually refers to “the ropes,” or the norms a
newcomer must learn to be an accepted member.
• Feeling of climate: Is the feeling conveyed to others in an organization
by the physical layout and the way in which members of the
organization interact with one another, customers, and outsiders
1-31

Strategic HR Policies: Benefits
 Encouraging Proactive Behavior
 Communicating Company Goals
 Stimulating Critical Thinking and Examination of
Assumptions
 Identification of Gaps Between Current Situation
and Future Vision
 Encouragement of Line Managers’ Participation
 Identification of HR Constraints and Opportunities
 Creating Common Bonds
1-32

Strategic HR Policies: Challenges
 Maintaining a Competitive Advantage
 Reinforcing Overall Business Strategy
 Avoiding Excessive Concentration on Daily
Problems
 Develop HR Strategies Suited to Unique
Organizational Features
 Coping with Environment
 Securing Management Commitment
 Translating the Strategic Plan into Action
 Combining Intended and Emergent Strategies
 Accommodating Change
1-33

Selecting HR Strategies
To increase firm performance
HR strategies should fit with other
organizational aspects
1-34

Criteria for an effective HR strategy
 An effective HR strategy is one that works in the sense that it
achieves what it sets out to achieve. Its particular
requirements are set out below.
 It is founded on detailed analysis and study, not just wishful
thinking. •
 It can be turned into actionable programmes that anticipate
implementation
 It is coherent and integrated, being composed of components
that ﬁt with and support each other.
 It takes account of the needs of line managers and employees
generally as well • as those of the organization and its other
stakeholders. As Boxall and Purcell (2003) emphasize: ‘HR
planning should aim to meet the needs of the key
stakeholder groups involved in people management in
the ﬁ rm.’
1-35

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

More Related Content

Similar to INTRODUCTION TO HUMAN RESOURCE MANAGEMENT (20)

Recently uploaded (20)

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Editor's Notes