HUMAN RESOURCE

MANAGEMENT
PALLAVI TYAGI
 DEFINITION

• Human resource management is the art of

procuring, developing and maintaining
competent workforce to achieve the goals
of the organization in an effective and
efficient manner.
• A process of bringing people and
organizations together so that the goals of
each other are met, efficiently and
effectively.
 SCOPE OF HRM

Scope of Personnel
Aspect
HRM
Welfare Aspect

Industrial
Relations Aspect
 SCOPE (CONTD.)

• The Indian Institute of Personnel Management has

specified the scope of HRM as:

• Personnel aspect: Manpower planning, recruitment,

selection, placement, transfer, promotion, training and
development, lay off and retrenchment, remuneration,
incentives, productivity, etc.

• Welfare aspect: It deals with working conditions and

amenities such as canteens, creches, rest and lunch
rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities, etc.
• Industrial relations aspect: This covers union-
management relations, joint consultation, collective
bargaining, grievance and disciplinary procedures,
settlement of disputes, etc.
 IMPORTANCE OF HRM

• At enterprise level:
• Good human resources practices can help in
attracting and retaining the best people in the
organization.
• It helps in training people for challenging roles,
developing the right attitude towards the job
and the company, promoting team spirit among
employees and developing loyalty and
commitment through appropriate reward
schemes.
 IMPORTANCE OF HRM

• At Individual level:
• It promotes team work and team spirit
among employees,
• It offers growth opportunities to people
who have the potential to rise.
• It allows the people to work with diligence
and commitment.
 IMPORTANCE OF HRM

• At the Society Level:

• Employment opportunities' multiply.
• Scare talents are put to best use.

• At the National level:

• Help in use of resources in a better way.
 FUNCTIONS OF HRM

• Procurement:
• Human Resource Planning
• Job Analysis
• Recruitment
• Selection
• Placement
• Induction
• Internal Mobility/Transfers
 FUNCTIONS OF HRM

• Development:
• Training
• Executive Development
• Career Planning
• Succession Planning
• HRD Strategies.
 FUNCTIONS OF HRM

• Motivation and Compensation:

• Job design
• Work scheduling
• Motivation
• Job Evaluation
• Performance Appraisal
• Compensation Administration
• Incentives, Benefits and Services.
 FUNCTIONS OF HRM

• Maintenance:
• Health
• Safety
• Social Security
• Welfare
 FUNCTIONS OF HRM

• Integration:
• Grievances
• Discipline
• Collective Bargaining
• Participation
• Trade Unions
• Empowerment
• Industrial Relations
 FUNCTIONS OF HRM

• Emerging Issues:
• Personnel Records
• HR Research
• HR Accounting
• HR Audit
• Counseling
• Mentoring
• International HRM
 STRATEGIC HRM

• SHRM involves the development of

a consistent, aligned collections of
practices, programs and policies
to facilitate the achievement of
the organization’s strategic goals.
 HR AS A STRATEGIC PARTNER

• Helps in making the workforce strategies integral to

business.
• Makes sure that human resources support the firm’s
vision.
• Leverage the HR’s role in major organizational
initiatives.
• Help Line managers achieve the goals by playing
the staff function.
• Help in gaining a competitive advantage.
 TRADITIONAL HR VS. STRATEGIC HR

Point of Discussion Trad. HR Strat. HR

Focus Employee Relations Partnerships

Role of HR Transactional Transformational

change follower change leader and
and respondent initiator.
Initiatives Slow, reactive and Fast, proactive and
fragmented integrated.
Time Horizon Short Term Short, medium Long
Term
Control Bureaucratic roles, Organic - Flexible
policies, procedures.
TRADITIONAL HR VS. STRATEGIC HR
 SYSTEMS APPROACH

• A system is a set of interrelated but separate

elements or parts working towards a
common goal.
• It merges HRM as a discipline and in
particular its basic HR activities and
processes with the information technology
field.
PURPOSE OF SYSTEMS APPROACH

• To reduce the manual workload in

administrative activities.
• Organizations began to electronically
automate many of these processes by
introducing specialized Human Resource
Management Systems.
• Brings uniformity in the HR function
throughout the organizations.
HUMAN RESOURCE MANAGERS’
DUTIES

Line Function
Coordinative Function
Line Authority
Functional Authority
Implied Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy
 LINE MANAGERS’ HRM
RESPONSIBILITIES
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition

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HUMAN RESOURCE SPECIALTIES

Recruiters

Employment/
Human
Industrial
Resource
Relations
Development
Specialist Human Specialists
Resource
Specialties
Training
Job Analysts
Specialists

Compensation Employee
Managers Welfare Officers

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 MINIMUM WAGES ACT, 1948

• Objective: To determine the minimum wages in

industry and trade where labor organizations are
non-existent or ineffective.
• Scope and coverage: Applicable to all employees
engaged to do any work, skilled, unskilled manual
or clerical, in a scheduled employment, including
out-workers..
• Main provisions
• Fixation of minimum wage of employees
• Procedure for fixing and revising minimum wages
• Rights of workers
EMPLOYEES PF AND MISC. PROVISIONS
ACT, 1952
• Objective: To make provisions for the future of the
industrial worker after he retires or for his
dependents in the case of his early death
• It includes
• Compulsory PF
• Family Pension
• Deposit linked insurance
• Scope and coverage: Application to factories and
establishments employing 20 or more persons
• Applicable to all persons who are employed
directly or indirectly through contractors in any kind
of work
THE INDUSTRIAL DISPUTES ACT - 1947

• Gives the methods for the solution of the

various industrial disputes like strikes and
lock-outs.
• Defines terms and conditions for a strike,
lockout and layoff and retrenchment to
take place.
• Describes the method for:
• Negotiation
• Adjudication
• Arbitration
• Conciliation
 THE GRATUITY ACT, 1972

• The word ‘Gratuity’ has been derived from the word

“Gratuitous” which means ‘Gift’ or ‘Present’. It is a
lump sum payment made by an employer as the
retrial reward for his past service when his
employment is terminated.
• Applicable to all of India including the state of
Jammu and Kashmir except port and plantation
workers.
• Becomes applicable only if the employee has
worked for 5 continuous years.
• Calculates as: Last drawn salary X years of service X
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