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Human Resource Management: Text and Cases Sharon Pande and Swapnalekha Basak
Introduction to Human Resource
Management
Chapter 1
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Learning Objectives
Explain what human resource management is, and how it
relates to other aspects of Management.
Understand and appreciate the modern avatar of human
resource management in light of the changing scenario in the
world.
Differentiate between the line managers and the HR
managers contribution to people management.
Understand the roles that HR practitioners are expected to
play in the modern organization.
Understand fully the competencies that an HR specialist
needs to build to be a valued member of an organization.
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Always recognize that human individuals are
ends, and do not use them as means to your
end.
-Immanuel Kant (1724-1804),
German Philosopher

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Defining Human Resource Management
Human resource management is a strategic and coherent
approach to the management of an organizations most
valued assetsthe people, that work there, who individually
and collectively contribute to the achievement of its
objectives.
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Difference Between PM and HRM
Personnel Management Human Resource
Management
Reactive , servicing role Proactive, innovative role
Emphasis on implementation of
procedures
Emphasis on strategy
Specialist department General management activity
Focus on employees need in their
own right
Focus on employee requirements
in the light of business needs
Employees seen as a cost to be
controlled
Employees seen as investment to
be nurtured as well as cost to be
controlled
Presumption of union manager
conflicts
Conflicts dealt with by team
members within their teams
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Difference Between PM and HRM
Personnel Management Human Resource
Management
Preference for collective bargaining
of pay and working conditions
Management-led planning of
people resources and employment
conditions
Emphasis on settling pay more in
terms of the organizations internal
market
Emphasis on competitive pay and
conditions to stay ahead of
competitors
Serving other department / units Contributing added value to
business
Supporting change Stimulating change
Challenging business goals in light
of effect on employees
Total commitment to business
goals
Less flexible approach to staff
deployments
Completely flexible approach to
staff deployment
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Changing Environment in the
Marketplace
Shift towards services

The new business cult

Globalization

Technology trends

Demographic trends
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Shift Towards Services
Over the years, the services sector as a percentage of the
GDP has grown from a mere 30 per cent in the fifties to close
to 60 per cent in 2010. The cornerstone of any organizations
success in the services sector is primarily its workforce.

Post liberalization, because of opportunities in the market,
and also because of talent crunch in the market, potential
employees and employees have the bargaining advantage.
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The New Business Cult
Innovation is the keel of successful business management.

Innovations are powered by people, and hence people have
become the strategic advantage for businesses.
Consequently, human resource management has become a
strategic function in the organization.
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Globalization
Nationalities can no longer be attached to organizations as
companies go global
Lenovo, a new kind of PC company, defies geographic and
organizational boundaries on a global scale:
We develop, produce, and deliver our products across six
continents.
Our global company has no single corporate headquarters.
Our American CEO is based in Singapore.
Our Chinese Chairman works from North Carolina.
Globalization (think global and act local) has become the order of
the day. (e.g. TCS )
Organization structures and consequently reporting structures
have become more complex.
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Technology Trends
Many jobs have become redundant.
New industries have come up because of technology.
Redefined work ethics
Telecommuting, flexi time.
Digitally mediated conversation will replace face-to-face
interaction.

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Demographic Trends
While we have professionally qualified and trained people in
India, the quality of training and competency of
professionals leaves a lot to be desired.
Young employable population base in India.
Increasing women in the workforce.
Sunrise industries pulling people away from brick and
mortar industries.
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Sneak Peak into the FutureHR @ 2020
PricewaterhouseCoopers, LLP with the help of the James
Martin Institute for Science and Civilization at the Said
Business School in Oxford used Scenarios to think about what
the future of people management could be.

They called these identified three plausible futures Blue,
Green and Orange worlds.
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Blue World
Corporates would take the centre stage
Technology shall become all pervasive, and for employees it
would become increasingly difficult to separate work life from
the rest of life.
The huge people cost will drive robust metrics and analytics.
Talent will be at a premium.
As companies spread over geographies they would try to
reinforce corporate values, which may be at odds with the
local cultural values and lead to conflict situations.

Contd
Source : Adapted from Managing tomorrows people The Future of
work to 2020
http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-
work/pdf/mtp-future-of-work.pdf accessed on July 22, 2011
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Blue World
Employees will start getting associated with corporates at an
early age (may be 16) and corporates may work with
universities to design learning programmes to suit their
organizational requirements.

Summing up, for the HR function in this scenario the
management of people and performance shall become a hard
business discipline, at least equal in standing to finance in the
corporate hierarchy.
Source : Adapted from Managing tomorrows people The Future of work to 2020
http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-
work/pdf/mtp-future-of-work.pdf accessed on July 22, 2011
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Green World
Consumers and employees will force change towards the
world becoming a more responsible place where companies
develop a powerful social conscience.
Consumers would demand ethics and environmental
credentials as a top priority. Society and business would see
their agenda align. Human resources shall drive the CSR
agenda of the organization and employees would be selected
based on their social credentials.
Technology would look for greener ways to work, and
therefore telecommuting may become a way of life.
Successful companies will engage with society across a
broader footprint. Communities, customers and contractors
all will become equal stakeholders along with employees and
shareholders.

http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-
future-of-work.pdf accessed on July 22, 2011
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Orange World
Global businesses shall fragment, and localism shall prevail.
Business models of companies shall be replaced by technology
empowered high-tech networks.

The dream of a single global village would be replaced by a global
network of linked, but separate and much smaller communities.
Business will constitute of complex supply chains form of
associations of specialist providers, varying greatly from region to
region and market to market.

Contd
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Orange World
Individuals would belong to specialist associations and develop
their own career working on a short-term, contractual basis. They
will join craft guilds which manage career opportunities, provide
training and development opportunities.

Summing up in the orange world, the flexible workforce shall have
to be continuously sourced as per the requirement of the
organization and all transactional HR processes may just become
an outsourced function.
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Harvard Framework for HRM
Adapted from Beer et. al., 1984
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HR Managers Role
Line Manager
Line authority which gives
individuals in management
positions the formal power to
direct and control immediate
subordinates.
Staff Manager
Staff authority which grants staff
specialists the right to advise,
recommend and counsel in the
staff specialists' area of expertise.

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Role of the HR FunctionClassical View
Traditionally, human resource managers carry out three distinct
functions within an organization:
Line function
An HR manager has clear control of activities of the people
in his department. They have limited (implied authority)
control outside their function. The implied authority also
stems from the fact that the line managers think that HR is
a close confidante of the senior management and leadership
team in many areas.

Contd
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Role of the HR FunctionClassical View
Coordinative function
They exercise functional authority (or control) over other
departments to ensure the adherence to all human resource
policies and procedures in the organization.

Staff (assist and advise) function
They assist and advise line managers to better understand
and appreciate the human resource aspects of the companys
strategic options. In carrying out this function, an HR
manager becomes an innovator, employee champion
depending on the situation.
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Role of the HR FunctionModern View
Employee advocate
Responsible for making sure the employeeemployer
relationship is one of reciprocal value.
Human capital developer
Responsible for building the future workforce.
Functional expert
Responsible for designing and delivering HR practices that
ensure individual ability and create organization capability.
Strategic partner
Responsible for helping line managers reach their goals.
An HR leader
Responsible for exhibiting genuine leadership meaning
credibility within the HR organization and to those outside.
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Competencies of the HR Professional
.a Traditional View
For many years now, the human resource managers
proficiencies are categorized under four areas:
HR proficiencies
Knowledge in the areas of employee selection, training and
compensation.
Business proficiencies
HR professionals strategic role in partnering business.
Leadership proficiencies
Lead management groups and drive the changes required.
Learning proficiencies
Staying abreast of, and applying new technologies and
practices affecting the profession.

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Competencies of the HR Professional
.a Traditional View
Strategic contribution
Personal credibility
HR delivery
Business knowledge
HR technology
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Strategic Contribution
Culture management
Define appropriate culture, design practices and processes
to cultivate and sustain it.
Ability to manage change
Plan and implement large-scale interventions that make
change happen quickly.
Strategic decision-making
Contribute to business decision by critiquing the existing
strategy, by having a personal vision for the future of the
business.
Market driven connectivity
Facilitate the dissemination of market information
throughout the firm to create organizational readiness.
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Personal Credibility
Achieving results
Meet commitment in performing accurate work and
achieving results with integrity.
Effective relationships
Have good relationship with internal and external clients
based on respect and confidence.
Communication skills
Effectively communicate using formal and informal channels
of communication.
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HR Delivery
Acquisition of human resources
Design and deliver staffing cycles that include hiring,
promoting, transferring, redeploying, retaining and
separating.

Training and development
Design and deliver development agendas which integrate
personal aspirations and organizational requirements.

Organizational design
Design organizational structure and work processes.

Contd
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HR Delivery
HR measurement
Measure results at each step of the HR value proposition.

Statutory and legal compliance
Understand the legal and other statutory requirement that
are relevant to the organization as well as employees.

Performance management
Design and deliver performance measurement systems as
well as reward systems for superior performance.
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Business Knowledge
Knowledge of the value chain
Have knowledge of each component of the business value
chain and its integration.

Knowledge of the organizations value proposition
Have knowledge of how the organization creates value for
the customer, and in the world at large.

Labour knowledge
Have knowledge of talent in the market, labour law driver
for maintaining effective employee relationships.
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HR Technology
Ability to apply technology to HR processes.
Apply information systems technology to HR processes.

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The HR Organization
Functional HR structure

Shared service
Service centres
Outsourcing
Technology and employee self-help

Embedded HR
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Ethics in HRM
Code of Conduct for HR Practitioners (As prescribed by the National HRD
Network)
I will always strive to meet the highest evolving standards of COMPETENCE
in the profession and ADD VALUE to organizational success.
I will deal with all stakeholders with utmost INTEGRITY and create an
environment of TRUST leading to ETHICAL success of my organization.
I will ensure that I am always RELIABLE and consistent in all my actions by
accepting responsibility for my decisions and actions thereby creating
CREDIBILITY for my profession and myself.
I will be OBJECTIVE in all my actions and decisions and foster FAIRNESS with
firmness.
I will conduct myself in a way that FACILITATES GROWTH and
DEVELOPMENT of all those I am responsible for.
I will strive to be a ROLE MODEL for all others and CHAMPION exemplary
practice of the HR profession.
I will respect the rights of privacy, will not use my position for personal gains
and ensure that there is no CONFLICT OF INTEREST in what I do with any of
my stakeholders.

Source: http://www.nationalhrd.org/The-Network-4/code-of-
conduct.html (Access Date 10th Jan 2011)

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