HRM

1. Functions of HRM

2. Function of Human Resource Management
•Human resource management is concerned with
hiring, motivating, and maintaining workforce
within businesses.
•As per Armstrong (1997) HRM is defined as “ a
strategic approach to acquiring, developing,
managing, motivating and gaining the
commitment of the organization’s key resources-
the people who work in and for it.”

3. FUNCTIONS OF HRM
MANEGERIAL
OPERATIVE
ADVISORY

4. Managerial Functions
• Planning
• Organizing
• Staffing
• Directing
• Controlling

5. 1. Planning
• Future course of action.
• For a human resource manager, planning means
the determination of personnel programs that will
contribute to the goals of the enterprise.
• Demand and supply forecasting for each job.
• Identifying net shortage and excess of manpower.
• Developing HR policies and programmes.

6. 2. Organizing
• Designning and developing organisation structure to
carry out the various operations.
• The organization structure basically includes the
following:
– Grouping of personnel activity logically into
functions or positions;
– Assignment of different functions to different
individuals;
– Delegation of authority according to the tasks
assigned and responsibilities involved;
– Co-ordination of activities of different individuals.

7. 3. Staffing
• It is the process of obtaining and
maintainingcapable and competent
personnel in various positions at all
levels, i.e. manpower planning,
recruitment, selection, placement and
induction.

8. 4. Directing
• The direction function of the personnel
manager involves encouraging people to
work willingly and effectively for the goals
of the enterprise.
– Motivation
– Leadership
– Communication
– Morale

9. 5. Controlling
• Controlling is concerned with the
regulation of activities in accordance with
the plans, which in turn have been
formulated on the basis of the objectives
of the organisation.
• It involves performance appraisal, critical
examination of personnel records and
statistics and personnel audit.

10. FUNCTIONS OF HRM
MANEGERIAL
OPERATIVE
ADVISORY

11. Operative Functions
1. Employment/Procurement
2. Development
3. Compensation
4. Maintenance
5. Motivation
6. Personnel Records
7. Employee Relations
8. Separation

12. 1. Employment
• Employment is the first operative function of HRM. This
involves procuring and employing individuals with
suitable knowledge, skills, experience and aptitude
necessary to perform various jobs.
• The various functions of employment are:
 Job analysis and design
 HR planning
 Recruitment
 Selection
 Placement
 Induction

13. • Job Analysis and Design: Describing the
responsibilities and minimum qualities required to
perform the job.
• Human Resource Plan: Determination of right
people at right time at right position.
• Recruitment: Recruitment refers to the process of
searching for prospective employees and stimulating
them to apply for jobs in an organization.
• Selection: The process of choosing the most suitable
people out of acceptable candidates who have
applied for a job in the organization from both within
as well as outside the organization.
• Placement and Induction: Process to introduce new
employees to organization.

14. 2. HR development
•Process of improving, moulding and changing the skills,
knowledge and ability of an employee
HR development involves functions such as:
•Training – Training is the systematic development of knowledge,
skills and attitudes required to perform a given task or job
successfully, in an individual.
•Management development – It is the concept of developing the
employees of an organization to meet future changes and
challenges.
•Career planning and development – Career planning and
development refers to identifying one’s career goals and
formulating plans for achieving them through various means such
as education and work experience.
•Performance appraisal – This is the process of evaluating the
performance of an employee on the job and developing a plan for
the employee’s improvement.

15. 3. Compensation
• It includes all the rewards that an employee receives during the
course of his or her job–for his or her contributions to the
organisation. It includes:
Job evaluation – It is a systematic determination of the value
of each job in relation to other jobs in the organisation, in the
industry and in the market.
Wage and salary administration – It is the process of
formulating and operating a suitable wage and salary
programme.
Incentives – These are the rewards that an employee earns in
addition to regular wages or salary based on the performance
of the individual, the team or the organisation.
Fringe benefits – These are monetary and non-monetary
benefits given to employees during their employment and
sometimes, also in the post-employment period.

16. 4. Maintenance (Working Conditions and Welfare)
• Process of providing employees the working
conditions so that they may like their work and
workplace and maintain their efficiency.
• These include measures taken for health, safety, and
comfort of the workforce.
• The personnel department also provides for various
welfare services which relate to the physical and
social well- being of the employees.
• These may include provision of cafeteria, rest
rooms, counseling, group insurance, education for
children of employees, recreational facilities, etc.

17. 5. Motivation
Process of integrating people into a work situation in
a way that it encourages them to perform / deliver to
the best of their ability.
◦ Understanding needs
◦ Designing motivation techniques
◦ Financial
◦ Non-financial
◦ Monitoring

18. 6. Personnel Records
• The human resource or personnel department
maintains the records of the employees
working in the enterprise.
• It keeps full records of their training,
achievements, transfer, promotion, etc.
• It also preserves many other records relating
to the behaviour of personnel like
absenteeism and labour turnover and the
personnel programs and policies of the
organisation.

19. 7. Employee Relations
• These days, the responsibility of maintaining good
industrial relations is mainly discharged by the
human resource manager.
• The human resource manager can help in collective
bargaining, joint consultation and settlement of
disputes, if the need arises.
• The human resource manager can do a great deal in
maintaining industrial peace in the organisation as he
is deeply associated with various committees on
discipline, labour welfare, safety, grievance, etc.

20. 8. Separation
• Since the first function of human resource
management is to procure the employees, it is logical
that the last should be the separation and return of
that person to society.
• The personnel manager has to ensure the release of
retirement benefits to the retiring personnel in time.
• Types of Separation:
– Retirement
– Resignation
– Layoff
– Retrenchment
– Dismissal

21. III. Advisory Functions
• Human resource manager has specialized education
and training in managing human resources.
1. Advised to Top Management: Personnel manager
advises the top management in formulation and
evaluation of personnel programs, policies and
procedures. He also gives advice for achieving and
maintaining good human relations and high employee
morale.
2. Advised to Departmental Heads: Personnel manager
offers advice to the heads of various departments on
matters such as manpower planning, job analysis and
design, recruitment and selection, placement, training,
performance appraisal, etc.

22. Human Capital
• Intellectual: Special knowledge, skills and
learning capacity
• Social: Network, relationship, sociability
and trustworthiness
• Emotional: Self confidence, ambition,
courage, risk bearing ability

23. Difference between
Personnel Management
and Human Resource
Management

24. Personnel Management
• According to Edwin Flippo, “
Personnel Management is the
planning, organizing, compensation,
integration, and maintenance of
people for the purpose of contributing
to organizational, individual and
societal goals.”

25. Human Resource Management
Art of procuring, developing and
maintaining, competent
workforce to achieve the goals
of an organization in an effective
and efficient manner.

26. Base PM HRM
Nature of relation
Focus
Plurist
Profit maximization
Unitarist
Development of
Human resources.
Perception of conflicts Institutionalized Pathologised
Contract Emphasis on
compliance
Beyond contract
commitment
Planning perspective
Role of procedures
Reactive
Dominated
Proactive
Culture and values

27. Source: D.E. Guest- Human Resource Management and Industrial Relations,
Journal of Management Studies,1987, Vol,24, pp 503-522
Base PM HRM
Level of Trust Low High
Key relation Labour and
Management
Customer
Basis of Job
design
Division of labour Teams
Skill acquisition Training and
Development
Learning
organisation
Reward
management
Standardized Job
evaluation
Performance
related

28. Human resource Policies

29. Content
• Basic concept
• Objectives
• Types
• Coverage
• Characteristics of sound HR policy

30. Introduction
 “ A policy is a man-made rule of pre-
determined courses of action that is
established to guide the performance of work
towards the organisation objectives.”- Edwin
Flippo
 “ Policies are statements of the organisation’s
over-all purposes and its objectives in the
various areas with which its operations are
concerned- personnel, finance, production,
marketing and so on.”

31. HR Policies & Procedures
HR policies – set of guidelines that
determine the way in which e/e are to
be treated in the organization.
HR procedures – help the mgt in
implementing the HR policies i.e.
specific applications or actions.

33. HR Policies
• Definition:-
• A policy is a plan of action.
• Brewster and Richbell defined “HR
policies as a set of proposals and
actions that act as a reference point for
managers in their dealings with
employees.”
-They constitute guides to action.
-They furnish the general standards or bases
on which decisions are based.
-Their genesis lies in an organization’s values,
philosophy, concepts and principles

36. Objectives HR Policies:
1) Fulfillment of the organisational objectives.
2) Development of sincere sense of unity within the
enterprise.
3) Maximize use of Human resourcers
4) Providing adequate and trained personnel at all levels.
5) Protection of the common interest of all parties.
6) To provide consultative participation.
7) To avoid confusion or misunderstanding between the
management and workers.
8) To provide for the payment of fair and adequate
compensation.
9) To create a sense of responsibility.

37. Peter Drucker says:
“The management must gear its
policies and objectives in such a
fashion that the employees
perform their work. It implies a
consideration of human being as a
resource having psychological
properties, abilities and limitations
requiring same amount of
engineering attention as any other
resource. And it is the
management alone that can
satisfy the requirements of
motivation, participation,
satisfaction, leadership,

38. Types of HR policy
• Originated policy
• Appealed policy
• General policy
• Specific policy
• Written policy

39. Forms of delivery of HR policies:
• Written standard practice, procedures issued to
cover company policies, with supplements to
cover changes.
• Booklets, bulletins, issued to new employees
setting forth rights, privileges and
responsibilities.
• Verbal instructions from immediate superiors.
• Group meetings of new employees convened
regularly.
• Union contract
• Conference conducted as a part of executive
training programme.

40. Various Types of Policies
• Employment Policies
– These are the policies that guide hiring practices, orientation
of new employees, compliance with employment laws, and
confidentiality.
• Employment Status & Records
– These are the policies that define such issues as
employment classifications, access to personnel files and
guidance on how background checks and performance
reviews are to be performed.
• Employee Benefits
– These are policies that explain employee benefits such as
insurance, vacations, holidays, leave, and employee
reimbursements.
• Payroll
– These are policies that are related to salary and wage
administration including deductions, pay advances, and time
keeping.

41. • Workplace Guidelines
– These policies are quite varied and their purpose range from
defining certain work arrangements such as flex time and
telecommuting to offering guidelines on the use of company
assets and record retention.
• Employee Conduct
– These policies are guidelines that control employer behavior
and conduct on the job. The mainstay of this section is a
code of conduct but also important are policies regarding
substance abuse, smoking, harassment, and workplace
violence.
• E-Policies
– These policies guide staff in the use of the organization’s
information technology. Policies defining acceptable and
prohibited activities and use of e-mail and the Internet make
up a majority of these policies

42. • Training and Development Policy
• Condition of Employment
• Lay-off, termination of service
• Disciplinary action
• Grievance redressal
• Transfer, promotion and Demotion

43. Coverage of HR Policies:-
a) Social responsibility
Equity
Quality of Work Life
b) Employment Practices
c) Promotion Policies
d) Development Policies
e) Relations Policies
f) Termination Policies

44. Characteristics of sound HR Policy.
• Relation of policies with objectives
• Definite, positive, clear and easily understood by
everyone.
• It should be in written and uniform
• Reasonably stable but not rigid i.e. periodically
revised.
• Compliance with all appropriate law and
regulation.
• Recognise the desire of employees.
• It should be progressive and enlightened, and
must be consistent with professional practice
and philosophy.

45. • It should be formulated with due regards
for the interest of all the concerned
parties- employer, employee and public
community.
• Based on careful analysis of all the
available facts.
• Must provide a two-way communication
between employer and employees.
• It must ensure justice to the employees.

46. Tata steel’s Personnel Policy
The statement Objectives of the Tata Iron &
steel Co. Ltd. Gives a clear cut policy
towards its employees:
1) By a realistic and generous
understanding and acceptance of their
needs and rights.
2) By proving adequate wages, good
working conditions, job security, an
effective machinery for redressal of
grievances and suitable opportunities of
promotion.
3) By treating them as individuals, giving
them a sense of self-respect.
4) By creating a sense of belongingness
through human and purposeful
activities as an integral part of human

47. Advantages of HR Policies
Policies are useful instructional devices, that
offer various advantages to HR working at
various levels.
• Delegation
• Uniformity
• Better Control
• Standards of efficiency
• Confidence
• Speedy Decisions
• Coordinating Devices

48. Obstacles in Administrating HR
Policies:-
1. Managers are reluctant to follow
guidelines as it curtails their
freedom.
2. Conflict between implied and
expressed policy.
3. Not easy to Communicate.
4. Makes managers rigid.

49. QUALITIES
OF
HR MANAGER

50. • “A human resource manager is a vital
member of an organizations HR
department.
• The department function like the key
engine room of an organization so an HR
manager roles and responsibility assume
great significance”.
• An HR manager must possess certain
qualities and skills to channelize the talent,
potential and capabilities of employees.

51. Qualities of Manager as per Henry Fayol
1. Physical- Health, vigor and address
2. Mental- Ability to understand and learn,
judgement, mental vigor and adaptability
3. Moral- Energy, Firmness, willingness to accept
responsibility, Initiative, loyalty, tact and dignity.
4. Educational- Knowledge about general
functioning of the organisation
5. Technical- Knowledge of the job being
performed.
6. Experience- Arising from the work.

52. Qualities of HR Manager
Personal Qualities
Social Qualities
Professional

53. Personal Qualities
• Humanitarian values
• Honest and sincere
• Discipline
• Dedication
• Enthusiastic
• Self-confidence
• Positive attitude
• Self-awareness
• Free from bias
• Social outlook

54. Social Qualities
•Leadership
•Effective communication
•Active Listening
•Adaptability/flexibility (Openness to change)
•Etiquette & Mannerism
•Building up rapport

55. Professional Qualities
• Intelligence skill
• Experience and training
• Grievance handling /counseling
• Negotiation skills / (create win- win situation)
• Interdisciplinary approach
• Transparency / Confidentiality
• Decision skill: Analytical, judgment and foresight.
• Executing skill: Ability to implement process.
• Knowledge of labour law and other laws.

56. Role of HR Manager

57. • HR manager plays a pivotal role to achieve
organizational objectives.
• It is human resource/work people who perform task
and achieve company goals.
• HR manager is a guide, philosopher, friend, path-
finder, path identifier, problem solver, competence
maker of the human resource.
• Ulrich (1997) has developed a model of multiple
roles for HR professionals who focus ranges from
long-term strategic to short-term operational, and
activities range from managing processes (HR tools
and systems) to managing people.

58. Role of HR Manager
• Administrative Role
• Operational Role
• Strategic Role

59. Role of HR Practitioner
• Advisory Role
• Pro-acting Role
• Welfare Role
• Developmental Role
• Mediator’s Role
• Counsellors Role
• Maintenance Role
• Spokesperson Role
• Motivator’s Role
• Procurer’s Role
• Disputes Prevention
Role
• Decision Maker’s role
• Change agent role
• Coordinator’s Role
• Strategic Partner Role
• Monitoring Role
• Executive Role

60. • Advisory Role: One of the major roles of HR
manager is, to advise the top management in
the matter relating to management and
development of human resource, in order to
achieve organizational objects.
• Pro-Acting Role: HR manager ascertains the
probable areas of conflict and differences
between workers and management
• Welfare Role: HR executive looks to the welfare
aspect of the employee’s viz., canteen, creche,
rest-room, hospital, transportation, housing
accommodation, school, etc.

61. • Developmental Role: Development of workers
for attaining company goals is made by the HR
manager through improvement of knowledge,
skill, abilities, aptitude, attitude, value, beliefs
etc.
• Mediator’s Role: HR manager works as a link
personality between trade unions and top
management in order to eliminate the
differences of opinions cropped up in process of
settlement of disputes.
• Counsellor’s Role: Guiding and advising
employees to take decisions with respect to
work, career and family.

62. • Spokesperson Role: HR executive works as a
spokesperson of the company especially, in the
matter of depicting organization health, condition,
strength etc. to the employees while negotiating
for settlement of industrial disputes.
• Motivator’s Role: One of the functions of HR
manager is to motivate the employees to achieve
their own goals, as well as organizational goals
HR manager performs such role by way of
introducing reward schemes.
• Procurer’s Role: HR manager helps to procure
the right number and right kind of people at the
right time, to enable the company to run smoothly,
effectively and efficiently and to achieve its goals.

63. • Change Agent Role: In changing scenario,
workers are required to change their attitudes,
belief, perceptible state, values to meet
organization needs, requirement and expectation.
• Maintenance Role: HR manager plays a pivotal
role to retain the dynamic, excellent, highly skilled
workers by providing attractive compensation
package, introducing reward management, career
planning and development, welfare, fringe benefits
and social security schemes.
• Disputes Prevention/ Legal Role: HR executive
creates congenial and conducive climate in the
company by eliminating differences between
management and workers and developing
understanding on the basis of mutuality.

64. • Executive Role: HR manager acts as an
executor of the policy decisions in the company,
for smooth functioning and effectiveness of the
organization.
• Decision Maker’s Role: HR manager is the
supreme person to make decisions in respect of
management and development of human
resource.
• Coordinator’s Role: HR executive coordinates
the task of developing, interpreting of HR
programmes, policies which are put into
operation by the line people, and develops a
team spirit amongst them.

65. • Strategic Partner Role: HR manager helps
to accomplish business strategy of the
organization through introducing and
implementing HR strategies.
• Monitoring Role: HR manager acts as
regulator/monitor to ensure, that HR policies,
procedures, programmes, so formulated are
monitored effectively to meet the objectives.

66. Types of HRM Jobs
• Generalist
– Human Resource Assistant or Specialist
• Employment, Recruiting and Placement
– Interviewer, EEO Specialist or College Recruiter
• Training and Development
– Trainer, Orientation Specialist
• Compensation and Benefits
– Salary Administrator, Compensation Analyst, and
Benefits Administrator
Career in HRM

67. Types of HRM Jobs
• Employee and Labor Relations
– Labor Relations Specialist, Plant
Personnel Assistant, Employee Relations
Specialist
• Health, Safety and Security
– Safety specialist, Security Specialist,
Employee Assistance Program Counselor,
Medical Program Administrator
• Human Resource Information Managers

68. Education
• Undergraduate Degrees
– Behavioral Sciences, General Business, Business & Labor
Law
• Masters Degrees
– Human Resource Management, Labor Relations, Organizational
Behavior/Development
– A Master’s degree is preferred in today’s competitive market
• Human Resource Certification Institute (HRCI)
• PHR (Professional in Human Resources)
• SPHR (Senior Professional in Human Resources)
based on experience, exam, and course requirements

69. Challenges of Modern HR Managers

70. Introduction
• HRM is one of the functions of
management that endured tremendous
change in the new millennium.
• There is a shift in HRM manager’s
responsibility from simply handling
personnel issues to designing strategic
implementation of complicated strategies
for the organization.

71. Challenges to HR Professionals
• Environmental Challenge
• Organisational Challenge
• Individual challenge

72. Environmental Challenge
• Globalization
• Change Management
• Workforce Diversity: Gender, age
distribution, cultural diversity, educational
level.
• Regulatory Framework
• Economic change
• Technological trends: Artificial intelligence,
Robots

73. Globalization
Impact on HRM
Partnerships with foreign firms
“Anything, anywhere, anytime” markets
Different geographies, cultures, laws, and
business practices
Issues:
Identifying capable expatriate managers.
Developing foreign culture and work practice
training programs.
Adjusting compensation plans for overseas work.

74. Organisational Challenge
• Slower growth
• Human Resource Information system
• Attracting and retaining talent to the enterprise
• Developing Distinctive capabilities
• Corporate Reorganization
• Managing relationship
• Changing nature of work
• Flatter organization
• Ethical management
• Team work

75. Major Uses For HRIS

76. Individual challenge
• Quality of work life
• Individual productivity
• Attrition rate/ Turnover
• Employee empowerment
• Job insecurity
• Leadership development
• Managing work-life balance
• Conflict, Groupism and internal politics

77. • Quality of Work-life: Richard E Walton
provides eight criteria for assessing the
QWL.
– Sufficient and fair compensation,
– Healthy and safe work environment,
– Opportunity to use and develop human
capacities,
– Opportunity of continued growth and security,
– Social integration in the work organization,
– Constitutionalism,
– Balance role of work and
– Socially beneficial and responsible work

78. Productivity Enhancements
MOTIVATION
• Job enrichment
• Promotions
• Coaching
• Feedback
• Rewards
ENVIRONMENT
• Empowerment
• Teams
• Leader support
• Culture
ABILITY
• Recruitment
• Selection
• Training
• Development
Perf = f (A,M,E)

79. Developing Human Capital
• Human Capital
The knowledge, skills, and capabilities of
individuals that have economic value to an
organization.