HRM

2. )

3. Introduction to Human
Resource Management

4. Human resources: Meaning
Human resources means the collection of people and their
characteristics at work. These are distinct and unique to an
organization in several ways.

5.  A basic concept of management states that manager
works in organizations.
 Organization has three basic components, People,
Purpose, and Structure. HRM is the study of
activates regarding people working in an
organization. It is a managerial function that tries to
match an organization’s needs to the skills and
abilities of its employees.

6. Human resources: Definition
 Human Resource are ”A whole consisting of inter-related,
inter-dependent & interacting psychological, sociological
& ethical components”.
-Michael J. Jucius

7. “Having good talent people in the organisation
was important yesterday, but today it is critical
!!”

8. What is HRM?
 Human Resource Management is “the planning, organizing, directing
and controlling of the procurement, development, compensation,
integration, maintenance and separation of human resources to the end
that individual, organizational, and social objectives are accomplished.”

9. Human resource management: Definition
Human resource management is concerned with
policies and practices that ensure the best use of
the human resources for fulfilling the organizational and
individual goals.
-Edwin B. Flippo

10. • People oriented
• Action- oriented
• Continuous Function
• Future- oriented
• Challenging function
• Science as well as an art
• Staff function
• Pervasive Function
• Nervous system
• Development – oriented

11. OBJECTIVES OF HRM
 To act as a liaison between the top management and the
employees.
 To arrange and maintain adequate manpower inventory
 To devise employee benefit schemes
 To ensure and enhance the quality of work life
 To offer training
 To help keep up ethical values and behavior amongst
employees both within and outside the organization.
 To maintain high morale and good human relations within
the organization.

12. HR Objectives of TATA Group
 Tata company shall provide equal opportunities to all its
employees.
 HR policies shall promote diversity and equality in the
workplace.
 Employees shall be treated with dignity.
 Maintain a work Environment free of all forms of
harassment.
 Respect for the right to privacy and the right to be heard.
 Equal opportunity to all eligible.
 Decisions are based on merit.

13. 1. Personnel or Labour Aspect
Planning, recruiting, selection, placement, transfer,
promotion, training and development, Lay-offs,
retrenchment, remuneration, incentives and productivity
2. Welfare Aspect
Housing, transport, medical assistance, canteen, rest
rooms, health and safety, education, etc.
3. Industrial Relation Aspect
Union-management relations, collective bargaining,
grievance and disciplinary actions, settlement of
disputes.

14.  HRM is proactive in nature while PM is reactive.
 HRM is a resource-centred activity whereas PM is a
employee-centred activity.
 HRM emphasizes on flexible, open-ended contracts
(agrement)but PM emphasizes the strict observance of
defined rules, procedures and contracts.
 HRM views better performance as a cause of job
satisfaction whereas PM considers job satisfaction as a
source of better performance….

15. Difference between HRM and
PM (contd.)
 HRM seeks to develop the competencies of the
employees on a sustained basis while PM is a
regular, status quo–based administrative function.

16. 0.

18. Benefits by Corporate
 Mobile Working at IBM
 HR and well-being of Employees at Infosys

19.  Significance for an enterprise
 Professional significance
 Social significance
 National significance

20. Significance of HRM
Significance for an enterprise
Attracting & retaining the required human
resource, recruitment & selection , placement ,
orientation, compensation & promotion
policies.
Developing the skills & necessary attitude
among the employees by T&D & performance
evaluation
Providing them social & job security by
grievance handling, motivating & participation
in mgt
Utilizing effectively the available human
resources
Ensuring that the enterprise will have in
future a team of competent & dedicated
employees.

21. Professional significance
 Providing maximum
opportunities for personal
development of each employee.
Maintaining healthy relationships
among individual & different work
groups.
Allocating work properly.

22. Social Significance
Sound human resources management has a great
significant for the society. It help to enhance the
dignity of labour in the following ways.
Providing suitable employment that provides
social & psychological satisfaction to people.
Maintaining a balance between the job available
& the jobseekers in terms of numbers,
Qualification, needs & aptitudes.
Eliminating waste of human resource through
conservation of physical & metal health

23. Significance of HRM
National Significance
Human resource & their management plays a vital role in the
development of a nation. The effective exploitation & utilization of a
nation’s natural, physical & financial resources require an efficient &
committed manpower.
There are wide differences in development between countries are with
similar resources due to differences in the quality of their people.
Countries are underdeveloped because their people are backward. The
level of development in a country depends primarily on the skills ,
attitudes & values of its human resources. effective management of
human resources helps to speed up the process of economic growth
which in turn leads to higher standards of living & fuller employment
Human resource Management is the central subsystem of an
organisation.

24. National Significance
HRM
SUBSYSTEM
Finance
subsystem
Technical
subsystem
Marketing
Subsystem
Material
Subsystem

25. a. Increase in the size & complexity of organisation
eg.MNC employees ,Rapid technological development
like automation, computerisation
b. Rise of professional & knowledgeable workers, Increasing
proportion of women in the workforce Growth of
powerful nationwide trade unions.
c. Widening scope of legislation designed to protect the
interests of the working class.
d. Revolution in the information technology that might
affect the work force.
e. Rapidly changing jobs & skills requiring long-term
manpower planning.
f. Growing Expectations of society from employers.

26. 1. The Industrial Revolution(beyond 1820 to 1840)
2. Trade unionism(1841 to 1909)
3. Scientific Management (1910 evolve & 1920
implementation to 1940)
4. Industrial Psychology (1945 to 1970)
5. Human Relation Movement Era( 1971 to 1980)
6. Behavioural Science (1980 to 1990)
7. The Contemporary HRM Era (1990 onwards)

27. The Industrial Revolution(beyond 1820 to 1840)
• Usages of the machinery
• Mass level of production
• To satisfied the human need
• Profit maximization form the factor
of production like land , labour,
capital, entrepreneur

28. Trade unionism(1841 to 1909)
World have been separated in two type of
economy one is capitalization which has a
motive of profit maximization other other
side labour intensive economy
Labour class reflected their prologue by
strike, slowdown, pen down,
boycott(withdrawal from commercial or
social relation ship)& sabotage of the work
for resolution of the problem where new
redressed procedure had been developed
to subside the chaos like collective
bargaining, grievance handling system,
arbitration, disciplinary practices

29. Construction of titanic & child
labour pathetic condition

30. Scientific Management (1910 evolve & 1920
implementation to 1940)
• Development of true
science
• Scientific selection &
training
• Friendly co-operation
between management
• Development of every
worker to his fullest
aspects.
• Draw back
• Man become machine
human factors were
completely avoided.

31. Industrial psychology era (1945 to 1970)
 Mainly focused on the part on IQ of the employees
through MMPIT(Minnesotta multiple personality
test )or MBTI( Myer Brigg Jung topology) & assigned
them skill & aptitude based job.

32. Human relation movement ( 1971 to 1980)
 Hawthorne experiment
 Interaction with the employee increase the
productivity
 Basic facilities are required for the production
 Empathized view towards works have increased
productivity of worker

33.  Multiple branch discipline like sociology ,
anthropology, psychology, economics & politics
 Contributors:- Abraham Maslow, Douglas mc
gregeor, Fredrik Herzberg, Rensis Likert, Robert
black, Robert Owen, kurt lewin, burke letwin, fidler
contingent theory, victor vroom theory, grid
theory, Aldofer ERG theory, Mclland N-ach theory

34.  More focused on gaining competitive advantage in
market through HR.
 Focuses on developing HR strategies, aligning them
with corporate strategy and achieving organizational
goals effectively.

35. Qualities of an HR manager
 Knowledge
 Intelligence
 Communication skills
 Objectivity and fairness
 Leadership and motivational qualities
 Emotional maturity and
 Empathy

36. CH.2 Environment of Human Resource Management

37. Political- Legal Considerations
 Political variables are the factors that may
influence an organizations activities as a
result of the political process or climate.
 The political-legal environment is also made
up of the laws and regulations within which
an organization conducts its affairs.
 A significant external force affecting HRM
relates to federal, state, and local legislation
and the court decisions interpreting this
legislation.
 The legal considerations affect virtually
the entire spectrum of human resource
policies.

38. Labor Market
 Potential employees located within the
geographic area from which employees are
recruited comprise the labor market.
 The labor market is always changing
these shifts inevitably cause changes in the
workforce which can affect the way
management must deal with the workforce.

39. Society
 Ethics is the discipline dealing with what is good and
bad, or right and wrong, and with moral duty and
obligation.
 Corporate social responsibility is the implied,
enforced, or felt obligation of managers, acting in
their official capacities, to serve or protect the
interests of stakeholders inside and outside the
organization.
 To remain acceptable to the general public, a firm must
accomplish its purpose while acting ethically and responsibly.

40. Unions
 A union is comprised of employees who have
joined together for the purpose of dealing
collectively with their employer.
 In a unionized organization, the union—rather
than the individual employee—acts as a third
party to negotiate work agreements with
management
 Wage levels, benefits, and working conditions
for many of employees reflect decisions made
jointly by unions and management.

41. HR Technology
 While the development of technology has created
new roles for HR professionals, it also places
additional pressures on them to keep abreast of
new HR technology.
 Technological advancements have tended to reduce
the number of jobs that require little skill and to
increase the number of jobs that require
considerable skill.
 Technological advances also have training
implication.

42. Economy
 When economy is booming, it is often more difficult
to recruit qualified workers.
 In economic downturn, more applicants are
typically available.
 One segment of the country may be experiencing a
downturn and another a
 This variation in supply and demand is also true for
obtaining qualified workers in different industry
and professional areas.

43. Customers
 People who actually use firm’s goods and
services.
 Employment practices should not antagonize
members of the market the firm serves.
 Workforce should be capable of providing top-
quality goods and services.
 This capacity is directly related to the skills,
qualifications, and motivation of the
organization’s employees.

44. Competition
 Firms may face intense competition in both
their product or service and labor markets.
 To compete effectively, a firm must also compete
for and retain competent employees.
 Bidding war often results

45. Shareholders
 Because shareholders have invested money in
the firm, they may at times challenge decisions
made by management.
 Management may be forced to justify the merits of
a particular program in terms of how it will affect
future projects, costs, revenues, profits, and even
how it will benefit society as a whole.

46. Unanticipated Events
 Unanticipated events are
occurrences in the external
environment that cannot be
foreseen.
 These events (eg., natural or
man-made disasters) cause
major modifications in the
performance of many human
resource functions in the affected
firms.
 Require a tremendous amount of
adjustment with regard to HRM

47. The Environment of HRM-summary
 The External Environment
 The external environment is composed of two layers:
 The general environment and the task environment.
 The General Environment
 They are general forces or processes that interact with
each other and also affect the organizations as a whole
including:
 The Economic Environment
 The Technological Environment
 The Socio-Cultural Environment
 The Political-Legal Environment
 The Physical Environment

48. Models of
Human
Resource
Management
 The Michigan School Model:
 Congruency with organizational
strategy (matching model)
 The Harvard School Model
(Harvard framework)
 Integrated parts towards a
strategic vision and with a central
philosophy

49. The Michigan School Model
The human resource cycle

50. Elements of
human
resource cycle
1.Selection: matching available
human resources to jobs
2.Appraisal: performance
management
3.Rewards: focus on
organizational performance (most
under-utilized and mishandled
tool)
 short-term and long-term
4.Development – developing high
quality employees

51. The Harvard Framework

52. Characteristics
of HRM in
Harvard
framework
1) line managers accept more
responsibility for ensuring the
alignment of competitive strategy
and personnel policy
2) personnel has the mission of
setting policies that govern how
personnel activities are developed
and implemented in ways that
make them more mutually
reinforcing