Human Resource

Management
Module- 1

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 Scheme of Internal
Evaluation
Assessment Criteria Marks

Tests (Avg of two 25

test)

Quiz 10
Attendance 5
Presentation 5
Class participation 5
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 Indicative Content
Human Resource Management-
• Introduction
• Nature
• scope
• Evolution
• PM v/s HRM
• Features
• Functions
• Objectives
• Factors Influencing HRM
• Strategic HRM
• Policies, Practices, Programs, Procedures
• HR manger- Role, Quality, Strategic Partner
• Line & Staff Responsibility
• Opportunities & Challenges in HRM

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 Main Learning Outcomes
• On successful completion of the module, you will be able to:
• To understand and explain the implications of managing people at work.
• To understand and explain the nature of human resource management as a
distinctive approach to people management.
• To understand the challenges of human resource management.
• To understand the HRM contribution to Strategic Management.
• To understand and explain the changing context of people management.
• To understand how can HR influence firm
performance?
• To understand how can HR cope with
workplace changes and trends?
• To understand what are the HR strategies that
help a firm achieve competitive
advantage?

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 Introduction to HRM
• Human resource (HR) management
refers to the practices and policies
you need to carry out the personnel
aspects of your management job,
specifically, acquiring, training,
appraising, rewarding, and providing
a safe and fair environment for your
company’s employees

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Changing Environment of HRM
• Globalization refers to the tendency of firms
to extend their sales, ownership, and/or
manufacturing to new markets abroad
• Technological Advances
• Nature of Work
• Growing emphasis on “knowledge workers”
and human capital.

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 Meaning Of HRM
• Human resource management
means employing people, developing
their resources, utilizing, maintaining
and compensating their services in
tune with the job & organizational
requirements.

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 Definition Of HRM
• According to Flippo, human resource
is “the planning, organizing, directing
and controlling of the procurement,
developing, compensation,
integration, maintenance and
reproduction of human resources to
the end that individual,
organizational and societal objectives
are accomplished.
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 Nature Of HRM
• People who manage organization
• Application of management functions
& principles
• Does not confined to business
establishments only

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 Scope Of HRM
Nature of HRM

Prospects
Employee hiring
of HRM

Human
Resource
management Employee &
Industrial
executive
Relations
remuneration

Employee Employee
Maintenance motivation

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 Evolution Of HRM

Industrial Scientific Industrial

Paternalisti
Revolution Manageme Psychology
c Era
Era nt Era Era

Personnel Human
Behavioral
Specialist Relations
Science Era
Era Era

Stages In The Evolution Of Human Resource Management

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 Difference B/W Personnel Management & HRM
Personnel Management Human Resource Management
Management of people employed Management of employees skills,
knowledge, aptitude etc

Treated as economic man Social and psychological man

Used for organizational benefit Used for multiple mutual benefit

Treated as cost centre Treated as profit centre

Function is treated as only auxiliary Strategic management function

Viewed as commodity Viewed as resource

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 Features Of HRM
• People oriented
• Comprehensive function
• Individual oriented
• Continuous function
• A staff function
• Pervasive function
• Challenging function
• Development oriented

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 Functions Of HRM
1. Managerial functions
• Planning
• Organizing
• Directing
• controlling
2. Operative functions
• Employment- Job Analysis, HRP, Recruitment, selection,
placement
• HRD- PA, training, Management development, career
planning
• Compensation- job evaluation, wage & salary
administration, incentives, bonus, fringe benefits, social
security measures,
• Human relations
• Effectiveness of HRM- organizational health, HR
Accounting, HR Audit, HR Research.

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 Objectives Of HRM
• Organizational objectives
• Functional objectives
• Personal objectives
• Other objectives

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 Policies, Procedures &
Programs
• A set of proposals and actions that act as a reference point for managers in
their dealings with employees.
• A well thought out course of action. It prescribes the specific manner in
which a piece of work is to be done.
• Personnel programs are complex set of goals, policies, procedures, rules,
steps to be taken, resources to be employed, and other elements necessary
to carry out a given course of action. Programs are aids to policy.

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 Need for HRM Policies

• Favoritism and discrimination

• Standards of performance

• Employee enthusiasm and loyalty

 Advantages of HRM Policies
• Delegation
• Uniformity
• Better control
• Standards of Efficiency
• Confidence
• Speedy Decision
• Co- ordinating Devices
Characteristics of a sound HRM Policy
• Related to Objectives
• Easy to understand
• Precise
• Stable as well as flexible
• Based on facts
• Appropriate number
• Reasonable
• Review
 Line Responsibility & Staff
Function
• Line manager’s responsibility – to attain
effectives goals of their respective
departments by the proper management of
4M’s.
• Staff function - Personnel managers performs
various functions of personnel management,
viz, employment, training, development,
wage & salary administration, motivation,
grievance redressal, workers participation in
management, collective bargaining etc..

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 Role Of HR Manager
• The conscience role
• The counselor
• The mediator
• The spokesman
• The problem solver
• The change agent
• Personnel role
• Welfare role
• Clerical role
• Fire fighting legal role
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 Qualities Of HR Manager
• Personal attributes
- Intelligence
- Education skills
- Discriminating skills
- Executive skills
- Experience and training
- Professional attitudes
- Qualification
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 Strategic HRM

• The linking of HRM with strategic

goals and objectives in order to
improve business performance and
develop organizational cultures that
foster innovation and flexibility

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 HR Manager as a Strategic
Partner
 HR is a legitimate business unit
 Highly strategic in nature
 Critical to achieving corporate objectives
 Determine workforce capabilities
 HR managers must forge strategic partnerships
 HR executives must understand the total
organization

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 Factors Influencing HRM
• Technological innovation
• Economic factors
• Employee’s organizations
• Labor markets
• Changing demand of employers
• Legal factors
• Human resource in the country

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 Opportunities & Challenges In
HRM
Key HR Challenges for Today’s Managers:
Environmental -
• Rapid change
• Workforce diversity
• Globalization
• Internet revolution
• Legislation
• Evolving work and family roles
• Skill Shortages
• Rise of the service sector

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 Conti…….
Organizational –
• Quality, distinctive capabilities
• Decentralization
• Downsizing
• Organizational restructuring
• Self-managed work teams
• Technology
• Outsourcing

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 Conti…..
Cultural –
• Basic assumptions and beliefs shared
by members of an organization…
» rules, norms
» behaviors
» philosophy
» dominant values
» feeling or climate

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 Indicative Content
Human Resource Management-
• Introduction
• Nature
• scope
• Evolution
• PM v/s HRM
• Features
• Functions
• Objectives
• Factors Influencing HRM
• Strategic HRM
• Policies, Practices, Programs, Procedures
• HR manger- Role, Quality, Strategic Partner
• Line & Staff Responsibility
• Opportunities & Challenges in HRM

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