Unit 1_HRM.pdf

Unit 1
MBA/BBA/B.com /B.Tech /UGC Net
By
Dr. Anand Vyas

HRM
Human resource management (HRM or HR)
is the strategic approach to the effective and
efficient management of people in a company
or organization such that they help their
business gain a competitive advantage. It is
designed to maximize employee performance in
service of an employer's strategic objectives.

Essentials of HRM
Recruitment & selection, performance
management, learning & development,
succession planning, compensation and
benefits, Human Resources Information
Systems, and HR data and analytics are
considered cornerstones of effective HRM.

Functions of HRM
1.Job design and job analysis:
Job analysis investigates and identifies the duties, tasks,
responsibilities, skills and knowledge, essential
qualifications for a certain job profile. Job Design
focuses on integrating the requirements and needs of an
employee with the objectives of the organization.
2. Employee hiring and selection : Selection is a long
process, commencing from the preliminary interview of
the applicants and ending with the contract
of employment.

3. Employee training & development : Employee training
and development is a program that helps to learn a
particular skill as well as knowledge to improve
employee productivity & performance in their current
organization or job role. It developed future performance
& helps focused on more employee growth
4 .Compensation and Benefits : Compensation and
benefits (C&B) is a sub-discipline of human resources,
focused on employee compensation and benefits policy-
making. While compensation and benefits are tangible,
there are intangible rewards such as recognition, work-
life and development. Combined, these are referred to as
total rewards.

5.Employee performance management :Performance
management is a corporate management tool that helps
managers monitor and evaluate employees' work.
Performance management's goal is to create an
environment where people can perform to the best of
their abilities and produce the highest-quality work most
efficiently and effectively.
6.Managerial relations :Employee Relationship
Management or ERM is the process of managing
relationships in an organization. These relationships can
be between the organization and employees as well as
coworkers working at the same level. For employees to
be productive, they need to have a working environment
that allows them to be creative.

7) Labour relations : Labor relations are the
term used to define the process between
employers and employees, management
and unions in order to make decisions in
organizations. The decisions taken refer to
wages, working conditions, hours of work,
and safety at work, security and grievance.

8) Other HRM Functions:
 Employee engagement & communication
 Health and safety regulations
 Personal support for employees
 Succession Planning
 Industrial Relations

HRM vs.HRD
Human Resource Management refers to the
application of principles of management to
manage the people working in the organization.
Human Resource Development means a
continuous development function that intends
to improve the performance of people working
in the organization

• HRM is an essential branch of management
that deals with making the optimum usage of
organizational human resources by nurturing
better work conditions for all concerned. On
the other hand, HRD is a branch of HRM that
focuses on the growth and development of
the workforce in any organization.

Strategic HRM: Meaning
•Strategic human resource management
(strategic HRM) provides a framework linking
people management and development
practices to long-term business goals and
outcomes. It focuses on longer-term resourcing
issues within the context of an organisation's
goals and the evolving nature of work

HRM Roles in Strategy Formulation
and Implementation

Barriers to Strategic HRM
1. Short-term mentality/focus on current performance.
2. The inability of HR to think strategically.
3. Lack of appreciation for what HR can contribute.
4. Failure to understand line manager’s role as an HR
manager.
5. Difficulty in quantifying many HR outcomes.
6. Perception of human assets as higher-risk
investments.

Linking HR strategy with business
strategy
 Five steps to align HR with the business strategy
1. Understand the main strategic goals. All strategies
should be aligned towards the same outcomes.
2. Map out a skills matrix. How does your current team
contribute to the company strategy?
3. Formalize your talent strategy.
4. Measure HR outcomes.
5. Stay in touch with the strategists.

Roles of HR Manager
• The Human Resource Manager will lead and
direct the routine functions of the Human
Resources (HR) department including hiring
and interviewing staff, administering pay,
benefits, and leave, and enforcing company
policies and practices

Roles of HR in Merger and Acquisitions
Ensuring both company cultures come together
and do not clash is one of HR's biggest roles in
the entire process. If the cultures do not fit, the
merger or acquisition very often fails. M&A
deals are made to create growth and open up a
multitude of opportunities for the buying
company.

Technology & HR and changing roles of
HR due to technology
•HR technology (human resources technology) is an umbrella term for
software and associated hardware for automating the human
resources function in organizations. It includes employee payroll and
compensation, talent acquisition and management, workforce
analytics, performance management, and benefits administration.
•Technology changes the way HR departments contact employees,
store files and analyze employee performance. Used well, technology
makes HR practices more efficient. When used poorly, it can get in the
way of managing the company's human resources. Good HR practices
maximize the benefits and minimize the problems.

HRM linkage with TQM & Productivity
• Link is very much clear when Human
resources of the company are satisfy they
work with their full extent through this the
productivity of the company rises and reaches
to a higher point and if Human resources are
dissatisfy, the productivity decreases.

Unit 1_HRM.pdf

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