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Human Resource

Management

ROHIT KUMAR
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Unit I: Introduction to Human
Resource Management
After studying the unit, you will be able to
understand:
•Why the ‘people’ dimension in an organization
is important
•What Human Resource Management (HRM) is.
•Identify the major influences on HRM
•Component of HRM
•Line and staff responsibilities of HRM
•What a strategy orientated HR system is and
why it is important?

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How can we ensure that HR
is at the table - and not
on the table?

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How CEOs and senior executives often view HR

Business partners Change agents

Administrativespecialists
Administrative specialists Employeeadvocates
advocates
Employee

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How HR wants to be viewed

Businesspartners
Business partners Changeagents
Change agents

==Missed
Missed
opportunity!
opportunity!

Administrative specialists Employee advocates

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results,
1996

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Discrepancies Between
Academic Research Findings
and HRM Practice
Academic Research Findings HRM Practice

RECRUITMENT
Quantitative analysis of recruitment sources using yield Less than 10% calculate yield ratios.
ratios can facilitate efficiencies in recruitment Less than 25% know how.

STAFFING
Realistic job previews can reduce turnover. Less than 20% of companies us RJPs in high-turnover jobs.
Weighted application blanks reduce turnover. Less than 30% know what WAB is; less than 1% use WABs.
Structured, behavioral, or situational interviews are more valid.45% of companies use structured interviews
Graphology is invalid and should not be used. Use is on the increase in the United States.

PERFORMANCE APPRAISAL
Do not use traits on rating forms. More than 70% still use traits.
Train raters (for accuracy, observation bias). Less than 30% train raters.
Make appraisal process important element of manager’s job. Less than 35% of managers are evaluated on performance
appraisal.

COMPENSATION
- Less than 5 % of companies use it where they could.
Gainsharing is an effective PFP system

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Why Study HRM?
 People (human resources) are the
essential resource of all
organizations
 These human resources create
organizational innovations and
accomplishments
 Organizational success depends
upon careful attention to human
resources

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Human Resource
Management
The successful 21 -century company is one that
st

realizes that it is the people that make up the


business…
Human Resource Management (HRM) is concerned with the
‘people’ dimension in management. Since every organization
is made up of people, acquiring their services, developing
their skills, motivating them to high level of performance, and
ensuring that they continue to maintain their commitment to
the organization are essential to achieving organizational
objectives. So, it is the process of acquisition, development,
motivation and maintenance of human resources.

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Human Resource
Management

Acquisition Development Motivation Maintenance

of Human Resource

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Stages in Human Resources functional development

COMPETITIVE
ADVANTAGE  Total line manager accountability
 Internal consultants
(Consolidation)  Add value
 Integral to company success
BUSINESS  Long term vision and strategy
PARTNERS  Integral contribution to business plan
(Integrated)  Strong influence on other departments
 Member of top team
 Quality systems and processes
PROACTIVE  Service management
 Intellectual
(Rapid growth)  Customer/needs capital/knowledge management
focused
 Workforce
 Pro-active/improvement empowerment and teams

 Management Return on investment
development

 Leadership training analysis
Cost/benefit
INTERNAL
 Policies  Comprehensive
and manuals
 Succession planning database
POLICE
(Emerging)  Controls — headcount,
 Workforce hiring,
planning
restructuring, travel, relocation
 Performance management
 Reporting systems & budgets
 Workforce productivity
 Basic measures — turnover,
KIND HEARTS
(Lending Support)  absenteeism
Cafeteria
 Technical and skills training
 Car 
park
IR disputes, grievances
BASIC  Security
 OH&S procedures
 Recruitment Gymnasium
NEEDS 
Induction  Social club
 Payroll  Christmas party
 Admin/Records
 Leave

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Objectives of HRM

Organizational
Objectives

Human
Resource
Management

Societal Employee
Objectives Objectives

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Current Challanges

Economic

Technological

Demographic
Organizations

Cultural

Legal

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Human Resource
Management
Products and services of HRM for personnel
 job designing
 personnel planning
 recruiting
 hiring
 evaluating
 training
 developing
 promoting
 compensating
 terminating

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HRM Activities

Attract and
orient new
employees

Effective
Compliance &
compensation
procedures Human Resource
systems
Management

Effective
Effective
work
relationships
environment

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Major Activities of HR
Management
 Organizational Design
 human resource planning
 job analysis
 job design
 information systems
 Staffing
 recruiting/interviewing/hiring
 affirmative action
 promotion/transfer/separation
 induction/orientation
 employee selection methods

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Major Activities of HR
Management
 Employee Training and Organizational Development
 management/supervisory development
 career planning/development
 employee assistance/counseling programs
 attitude surveys
 training delivery options
 diversity programs
 Performance Management and Appraisal
 management appraisal/management by objectives
 productivity/enhancement programs
 customer-focused performance appraisal
 multi-rater systems

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Major Activities of HR
Management
Reward Systems, Benefits, and Compliance
 safety programs/OSHA compliance
 health/medical services
 complaint/disciplinary procedures
 compensation administration
 wage/salary administration
 insurance benefits administration
 unemployment compensation administration
 pension/profit-sharing plans
 labor relations/collective bargaining

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HR- Responsibilities of Line
Managers
 Staffing

 Retention

 Development

 Adjustment

 Managing Change

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HRM Role Change
 The HR function has historically been reactive and
subservient to the other business functions.
 Role has changed recently due to environmental change
and uncertainty
 Need to maintain an effective alignment with the
environment while managing internal interdependencies.

 The systematic integration of separate HRM functions


 The inclusion of HR considerations in decisions affecting
corporate strategies and structures.

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HRM-The Traditional View

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HRM -- The Strategic View

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The Dave Ulrich HR Model
Future/strategic focus

Strategic partner Change Agent

(Management of Strategic (Management of


Human Resources) Transformation
Processes

and change)

People
Administrative expert Employee champion

(Management of (Management of
Organisation infrastructure) Employee contribution)

Day-to-day operational focus

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