Introduction to HRM

Objectives
To introduce the concept of human resource
management in the context of business organizations
To familiarize with the major HR functions

Business Organization
Objective:
Survival and growth consistent with
the expectations of its stakeholders

What are the Stakeholders

Expectations?
Shareholders:
Return on Investment &
Value Appreciation

Consumers:
Timely availability of qualitative products at
competitive price

State:
Responsible Corporate Citizenship

What are the Stakeholders

Expectations?
Employees:

Career growth
Remuneration informed by fairness & equity
Fair share in the prosperity
Safe, healthy & congenial working environment
Welfare

Human Resource Management

Refers to the policies, procedures, practices,
and systems that influence employees
behavior, attitudes and performance
The process of managing people to achieve
organizational objectives
HRM Content
HRM Philosophy
HRM Process

HRM Content (Functions)

The individual practices that make up HRM
constitute the HRM content

Procurement
Development
Compensation
Integration
Maintenance
Separation

HR Philosophy

HR Philosophy

HR Policies

HR Procedures

HR Practices

HRM Process
HRM process refers to the way HR policies &
practices are communicated to employees
Features
Distinctiveness (visibility, understandability, legitimacy & relevance )
Consistency (continuity and stability of HR practices over time and of
agreement between words and deeds)
Consensus (agreement , procedural justice & distributive justice

The Management Process

Planning

Controlling

Leading

Organizing

Staffing

Operative Functions: Procurement

Obtaining the right kind & number of personnel
Sub-functions:
Job analysis
Human Resources Planning
Recruitment
Selection
Placement

Operative Functions: Development

Increasing Knowledge, Skills & Attitudes that are
necessary for job performance
Sub-functions:
Training
Performance Appraisal
Mentoring & coaching
Career Development

Operative Functions: Compensation

Adequate and equitable remuneration of personnel
for their contributions
Sub-functions:
Base Compensation
Variable Compensation
Supplementary Compensation

Operative Functions: Integration

An attempt to effect a reasonable reconciliation of
individual, organizational & societal interests
Sub-function:
Discipline Management
Grievance Handling
Dispute Settlement
Collective Bargaining

Operative Functions: Maintenance

Perpetuation of the integrated state
Sub-functions:
Communication
Counseling
Health & safety

Operative Functions: Separation

Exiting the Company
Retirement
Resignation
Retrenchment
Discharge
Dismissal

HRM Model (Beer, Lawrence,

Mills & Walton, 1985)
Stakeholder
Interests

-Mgt
-Employees
- Govt.,
-Community

Situational factors

-Workforce
-Labor market
-Business conditions
-Technology
-Mgt. Philosophy
-Unions
-Laws

HRM Policy
Choices
-Employee
Influence
-HR flow
-Reward system
-Work system

HR Outcomes
-Commitment
-Competence
-Congruence
-Cost
effectiveness

Long term
Consequences
-Individual
Well being
-Ognl.
Well being
-Societal
well being

HRM Policy Areas Relevant to

Functional Managers
Employee Influence
The degree of employee influence

Human Resource Flow

Flow of people into, through and out the organization

Reward System
Financial and non financial

Work system
Arranging people, information, activities and technology