Human Resource Management

Why study H.R??

Is it only relevant for people who specialize in H.R?

Is the subject dynamic or static?

Are there career growth prospects in the field of H.R?

Is H.R a career option only for women?

 Nature and scope of H.R

Human Resource – Leon.C.Megginson

“The total knowledge, skills, creative abilities, talents
and aptitudes of an organization’s workforce, as
well as the value, attitudes and beliefs of the
individuals involved.”

► Positive attitude always makes an organization.

Difference between personnel management and
HRM

1. Beliefs and assumptions

► Contract
PM – careful delineation of written contracts.
HRM – Aim to be beyond contract.

► Rules
PM – Importance of devising
HRM – Impatient with rules.

► Guides to management action

PM – Clear rules / mutuality
HRM – Business need
Difference between personnel management and
HRM Contd.

► Behavior referent
PM – Norms / customs and practice
HRM – Values / Mission

► Managerial task with respect to labor

PM – Monitoring
HRM – Nurturing

► Nature of relation
PM – Pluralist
HRM – Unitarist

► Conflict
PM – Institutionalized
HRM – De-emphasized
Difference between personnel management and
HRM contd.

2. Strategic aspects
► Key relations
PM – Labor management
HRM – Customer

► Initiatives
PM – Piecemeal
HRM – Integrated

► Speed of decision
PM – Slow
HRM - Fast
Difference between personnel management and
HRM contd.
3. Line Management

► Management role
PM – Transactional
HRM – Transformational

► Key managers
PM – Personnel / IR specialists
HRM – General / line managers

► Communication
PM – Indirect
HRM – Direct

► Standardization
PM – High
HRM – Low

► Prized skill
PM – Negotiation
HRM - Facilitation
Difference between personnel management and
HRM contd.

4. Key levers

► Selection
PM – Separate, marginal test
HRM – Integrated, key task

► Pay
PM – Fixed grades
HRM – Performance related

► Labor management
PM – Collective bargaining contracts
HRM – Towards individual contracts

► Job design
PM – Division of labor
HRM - Teamwork
Difference between personnel management and
HRM contd.

► Conflict handling
PM – Reach temporary truces
HRM – Manage climate and culture

► Job categories and grades

PM – Many
HRM – Many

► Training and development

PM – Controlled access to courses
HRM – Learning companies

► Communication
PM – Restricted flow
HRM – Increased flow
 Meaning and Features of HRM

Meaning -
HRM means employing people, developing their resources, utilizing,
maintaining and compensating their services in tune with the job and
organizational requirements with a view to contribute to the goals of the
organization, individual and the society.

Features:
► Concerned with employees both as individuals and a group. It is also
concerned with behavior, emotional and social aspects of personnel.

► Concerned with development of human resource, i.e knowledge,

capability, skills, potentialities and achieving employee goals.
 Features of HRM

► It is the central sub system of an organization and it permeates all types

of functional management, i.e marketing, finance, production,…

► HRM covers all levels and categories (skilled, unskilled, technical,

professional, clerical etc)

► It is a continuous and never ending process.

► Aims at attaining the goals of the organization, individual and society in

an integrated approach.

► HRM is a responsibility of all line managers and a function of staff

managers in an organization.
 Functions of HRM

Functions

Managerial functions Operative functions

Employment
Planning Human resource development
Organizing Compensation
Directing Human relations
Controlling Industrial relations
Recent trends in HRM
 Functions of HRM

Managerial functions:
1. Planning
Pertains to formulating strategies of personnel programs and
changes in advances that will contribute to the organizational goals.
It involves planning of human resource requirements, recruitment,
selection training etc.

2. Organizing

3. Directing

4. Controlling
 Operative Functions
1. Employment
Concerned with securing and employing the people possessing the
required kind and level of human resources necessary to achieve
organizational objectives.

a. Job analysis
The process of study and collection of information relating to the
operations and responsibilities of a specific job.

It consists of –
► Collection of data, information, facts and ideas relating to various
aspects of jobs including men, machines and materials.
► Preparation of job description, job specifications, job requirements
and employee specifications which will help in identifying the
nature, levels and quantum of human resources.
► Providing the guides, plans and basis for job design and for all
operative functions of HRM.
 Operative Functions

b. Human resource planning

Involves providing adequate number to meet the organizational
requirements. It involves –

► Estimation of present and future requirements and supply of H.R

► Calculation of net human resource requirements based on present

inventory of human resource.

► Taking care to mould, change and develop the strength of existing

employees.

► Preparation of action programs to get the rest of human resource

from outside.
 Operative Functions

c. Recruitment
process of searching prospective employees and stimulating
them to apply for the job.

► Identifying existing sources of applicants and developing

them.

► Creation / identification of new sources of applicants.

► Stimulating candidates to apply.

► Striking a balance between internal and external sources.

 Operative Functions

d. Selection
Process of ascertaining the qualification, experience, skills knowledge of
an applicant to appraise her suitability for a job.
It includes
► Framing and developing application blanks.
► Creating and developing valid and reliable testing techniques.
► Formulating interviewing techniques.
► Checking of references.
► Setting up medical examination procedures.
► Line mangers decision
► Sending letters of appointment and rejection.
► Employing selected candidates who report for duty.
 Operative Functions

e. Placement
Process of assigning the selected candidate with the most
suitable job in terms of job requirements.
It includes
► Counseling functional managers regarding placement.
► Conducting follow up and appraisal regarding the employee
adjustment with the job.
► Correcting misplacements, if any.

f. Induction and orientation

Techniques by which a new employee is rehabilitated to the
organizational policies, practices, people etc.
 Operative Functions

2. Human Resource Development

Process of improving, moulding, and changing employee attitude,
knowledge, ability etc based on current and future job and organizational
requirements.

a. Performance appraisal
Systematic evaluations of individuals with respect to their performance and
their potential for development.

It includes
► Developing policies, procedures and techniques.
► Helping functional managers.
► Reviewing and consolidation of reports.
► Evaluating the effectiveness of programs.
 Operative Functions

b. Training
Process of imparting technical and operating skills to the employees.

It includes
► Identification of training needs of employees and the organization.
► Developing suitable training programs.
► Helping and advising line management in conducting training programs.
► Evaluating effectiveness of training programs.

c. Management development
Process of designing and conducting executive development programs.
Includes
► Identifying
► Conducting
► Motivating the executives
► Developing special development programs for promotions.
► Evaluating effectiveness of EDP’s
 Operative Functions
c. Career planning and development.

d. Internal mobility

e. Transfer
Process of placing the employees in the same level jobs where they
can be utilized more effectively.
It includes
► Developing transfer policies and procedures.
► Guiding employees and line management on transfers.
► Evaluating the execution of transfer policies and procedures.

f. Promotion
Includes
► Formulating equitable fair and consistent promotion policies and
procedures.
► Advising line managers and employees.
► Evaluating the execution of promotion policies and procedures.
 Operative Functions

g. Demotion

Includes
► Developing equitable fair and consistent demotion policies and
procedures.

► Advising line managers and employees.

► Overseeing the implementation.

h. Change and organizational Development.

 Operative Functions

3. Compensation
Process of providing adequate, equitable and fair remuneration to the
employees.
It includes

a. Job evaluation - Process of determining relative worth of

jobs.
► Select suitable job evaluation techniques.
► Classify jobs into various categories.
► Determining relative value of jobs in various categories.

b. Wage and salary administration

► Conducting wage and salary survey
► Determining wage and salary rates based on various factors
► Administering
► Evaluating
 Operative Functions
c. Incentives
► Formulating incentive payment schemes.
► Helping functional mangers on the operation.
► Review them periodically to evaluate effectiveness.

d. Bonus – It includes payment of statutory bonus according to the payment of bonus act 1965 and its
latest amendments.

e. Fringe benefits – These are given for employee motivation

► Disablement benefit
► Housing, canteen, recreational conveyance, credit facilities
► Education and medical facilities.

f. Social security measures

► Workmen accident compensation
► Maternity benefits
► Sickness and medical benefits
► Dependent benefits
► Retirement benefits
 Operative Functions

4. Human Relations
Consists of practicing various human resource policies and
programs.

It includes
► Understanding and applying models of perception, personality,
learning, intra and inter personal and group relations.
► Motivating employees.
► Developing communication and leadership skills.
► Redressing grievances.
► Counseling employees.
► Providing comfortable work environment.
► Improving quality of work life of employees.
 Operative Functions

5. Industrial relations
Refers to the study of relations among employees, employer,
government and trade unions.

It includes
► Indian labor market
► Trade unionism
► Collective bargaining
► Industrial relations
► Workers participation
► Quality circles.

6. Recent Trends in HRM

► QWL
► Total quality of human resource
► HR accounting, audit and research
► Recent techniques of HRM.
 Objectives of Human Resource Management

1. To create and utilize the motivated workforce to accomplish basic

organizational goals.

2. To establish and maintain sound organizational structure and desirable

working relationships among all the members.

3. To co-ordinate group and individual goals with the organization.

4. To create opportunities and facilities for individual or group

development, to match with the organization growth.

5. To satisfy individual and group needs by providing adequate and

equitable wages, incentives, employee benefits and social security.
 HRM Policy and Procedures

HRM Policy – “A set of proposals and actions that act as a reference point for
managers in their dealings wit employees.”

HRM Procedure – “A well thought out course of action.”

Policies are general instructions. But policies are specific applications.

Sources for formulating HR Policies:

Policies are formulated on the basis of material collected from sources like
► Past experience of the organization.

► Existing practices and experiences in the organization.

► Attitudes and philosophies of management and employees.

► Knowledge and experience gained by managers in handling personnel issues.

 Line and Staff relationship and HRM

1. Human resource management is a line responsibility.

► Managing the four M’s in their respective departments, which
includes men is the responsibility of the line managers.

2. Line managers need assistance in managing men.

► The line managers have to concentrate on discharging their
operative responsibility , they may not get time to manage
human resource.

3. Human resource management is a staff function.

► Top management provides specialized assistance to line
managers through HR managers.
 Role of HR manager
1. Personnel role
► Advising management on effective use of human resource.
► Manpower planning – Recruitment , selection
► Training and development.
► Measurement and assessment of individual and group behavior.

2. Welfare role
► Research in personnel and organizational problems
► Managing services like canteens, transport etc.
► Group counseling, motivation, leadership, communication.

3. Clerical role
► Time keeping
► Salary, wage and incentive administration.
► Maintenance of records.
► Man – machine relationship.

4. Fire fighting legal role

► Grievance handling
► Settlement of disputes
► Disciplinary actions
 Qualities of a HR Manager

1. Intelligence
Must possess skills to communicate, articulate, command over
language, ability to deal tactfully with people.

2. Education skills
Should possess teaching and learning skills.

3. Discriminating skills
Must be able to discriminate between right and wrong, just and
unjust.

4. Executing skills
Expected to execute management decision regarding personnel
issues with speed, accuracy and objectivity.
 Qualities of a HR Manager

5. Experience and training

Training in psychological aspects, labor legislations and more
specifically in personnel management and general
management is an advantage.

6. Professional attributes
Should have patience and understanding, ability to listen before
advising. Must also have knowledge of other disciplines like
technology, engineering management, sociology, psychology,
philosophy, economics, commerce and law.

7. Qualifications
MBA with Human resource management specialization,
M.H.R.M, M.A (IR&PM) M.P.M and P.G.D.P.M
 SUMMARY
► Nature and scope of HR

► Difference between HR and Personnel management

► Meaning and features of HRM

► Functions of HR manager – managerial, operative.

► Objectives of HRM

► HRM policy and procedures

► Line and staff relationship and HRM

► Role of HR manager

► Qualities of HR manager.