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1
Amity International Business School
BBA + MBA IB VII
HRM
Ms. Chitra Krishnan
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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.
Name of Institution 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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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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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.
Name of Institution 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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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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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.

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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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
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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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.
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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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)