introduction to human resources management. its concept and context.

1. Concept And Context
of HRM

2. Concept of Human Resource
Management (HRM)
• HRM is concerned with people’s dimension in organizations
• Human Resource Management is the process of accomplishing
organizational objective by acquiring, retaining, terminating,
developing and properly using human resources in the
organizations.
- Ivancevich, Donnelly & Gibson
• Human Resource Management is a process of the acquisition,
development, motivation, and maintenance of human
resources.
-DeCenzo/ Robbins

3. Key concept of HRM
• Human focus: Treats human as an important asset.
• Management Function: performed by all levels of managers
• Continuous commitment: ensure not only present but also
future.
• Dynamic: Affected by change in the environment.
• Mutuality oriented: Promotes mutuality between employers and
employees

4. Objectives/ Importance of
HRM
I. Achieve objective-positive attitude among employees,
reducing wastage and maximum utilization of resources
II. Facilitates professional growth- Training and development
III. Better relations between union and management-Healthy
HRM practices
IV. Helps an individual to work in team/ group
V. Identifies person for future-constantly trained
VI. Allocating the jobs to right individual
VII. Improves the economy

5. HRM System

6. HRM System
Inputs of HRM system
1. Objectives/ strategies of the organization
2. Plans, policies and procedures
3. Organizational structure
• Indicated the way in which the organization ‘s activities are
divided, organized and co-ordinated
• Number and types of employees required are determined
4. Communication and decision making
5. Environmental and social obligations

7. Processing of HRM System
1. Acquisition
• Composed of human resource planning, recruiting and
employee socialization
i. HR planning- process by which organization ensures it has the
right number of people, at the right post, at the right time which
is cost effective
• Balancing demand and supply of employee according to
present needs
ii. Recruitment- searching potential candidate
• Process to discover the possible sources of manpower to meet
requirements of staffing plan
iii. Employee socialization- process of adaptation that takes
place as individual attempts to learn values and norms of work
roles

8. 2. Development
• Composed of employee training, management development
and career development
i. Employee training- process of learning
• Relatively permanent change in an individual that will improve
his/ her ability to perform on the job
ii. Management development
• systematic process of learning and growth by which
managerial levels employees gain and apply knowledge, skills
and attitudes to manage work organization effectively
iii. Career development
• Provides supply of talents and abilities demanded by the
organization

9. 3. Motivation
• Composed of job design, performance evaluation, rewards,
job evaluation, compensation/ benefits and discipline
• Starts from identification of unfulfilled needs
• Makes employees devoted towards their work and
organizational objectives
i. Job Design means outlining the task, duties,
responsibilities, qualifications, methods and relationships
required to perform the given set of a job
ii. Performance evaluation
• Tries to establish relationship / equity between employee
effort and rewards employees get from doing the job

10. iii. Job evaluation
• Process of determining relative worth/ value of various jobs
within the organization
iv. Compensation
• Refers to all forms of pay/ rewards going to employees arising
from individual’s employment in organization
v. Discipline
• Tries to prepare a work condition in the organization where
employees conduct themselves in accordance with firm’s rules
and standards of acceptable behaviour.

11. 4. Maintenance
• Retaining qualified manpower/ employees
• Commitment of employees
• Composed of employee safety and occupational health, and
employee/ labour relations
• Employee safety refers to the protection of employees/
workers from danger of accidents
• Occupational health tries to prepare the workplace which is
free from unnecessary risks

12. Outputs of HRM System
• Major outputs are productivity, quality of work life and
readiness for change
• Reasonable/ optimum level of profit generation, goal
achievement
• Relatively higher level of employee job satisfaction

13. Environments of HRM System
1. Internal Environment/ Context
i. Strategy of the organization
• Company plan for how it will match its internal strengths and
weaknesses with external opportunities and threats in order to
maintain a competitive advantage
• provides guidelines for HRM activities and decision making
ii. Organizational structure
• Provides framework for HR’s roles, hierarchy, relationship and
authority
iii. Organizational culture
• Companies with positive cultures have better performance,
productivity and profits than those without
• HR leaders should determine whether their current workplace
culture is strong, or whether new programs should be incorporated
• Employee engagement

14. iv. Labour unions
• HRM activities influenced by its union
v. Organizational activities
• Determine the jobs/ tasks that need to be done by employees
in the organization
• Implications on employee motivation, satisfaction and
compensation
• Affect all the acquisition, development, motivation and
maintenance component of HR activities

15. External Environment
i. Physical/ geographic environment
• Represents an organizations location, topography and climate
ii. Economic environment
• economic conditions might have an important effect on labor force,
by changing the type and number of personnel demanded.
• when an economy stabilizes, competition for qualified human
resources increases
iii. Socio cultural environment
• Create the type of people who become member of an organization
• Affect attitude of employees toward work
• Affect time dimension of employees (present vs future focus)
• Affect work ethics, need for achievement and effort reward
expectations
• Make employee confine themselves to certain occupations and
regions

16. iv. Political-legal environment
• Recruitment to retirement functions and policies of HRM are
influenced by legal provisions- not only by the decisions of top
management
v. Technological environment
• the need for qualified workers for using technology can increase
• Employees require trainings to run those technologies
• Technologies may dislocate employees, it may throw them from
their jobs
• Technology can reduce the need of employees
• May reduce face to face interactions and may harm social needs of
employees

17. vi. Labour market
• A lot of changes have taken place in labour market due to
migration, globalization and unionization
• Oversupply of general workers
• Shortage of skillful professional
• Increasing unemployment rate
• Increasing number of old employees, work force diversity
vii. Trade union environment
• HRM activities( recruitment to retirement) must be carried out
in consultation with union leaders
• Security of union at national level, improved wages, hours of
working, working conditions and benefits for their members

18. viii. Global environment
• Globalization of business has attracted greater need and
involvement of HR manager’s consideration in conducting
HRM activities
• Helps attract foreign investment and capture the global
market

19. Feedback of HRM system
• Feedback system measures outputs of HR process
• feed into the system to correct deviations and to achieve the
desired HR result

20. Functions/ Components of
HRM
1. Acquisition (getting people)
• Human Resource Planning
• Recruitment
• Selection
• Employee socialization
2. Development (preparing people) After selecting and recruiting
individuals in the right position of the organization the next function is
to train and develop them, so that they can become efficient
employees and work toward the achievement of the organization goal.
• Employee Training
• Management Training
• Career Training

21. 3. Motivation(stimulating people)
• Starts from identification of unfulfilled needs
• Makes employee devoted towards their work and
organizational objectives
• Important elements like job design, performance, evaluation,
compensation and benefits, discipline
4. Maintenance (keeping them)
• Retaining qualified manpower
• Commitment of employees
• Concerned with providing proper working conditions, safety
and health, employee or labor relations

22. Changing Dimensions (Growth
stages) of HRM
• Changing dimensions in terms of growth stages
i. Welfare management (1900- 1920s)
• Pre-stage or dimension of evolution of personal management
• Focus was only towards avoiding child labor, emphasizing
human needs, setting work hours, cleanliness and providing
basic facilities
ii. Personnel management(1920s-1940s)
• Focused with simple planning in the organization
• Directed mainly at the employees of organization-selecting
and training them, arranging their pay and contracts of
employments, explaining what are expected of them,
justifying what the manager is doing

23. iii. Human resource management(1940-1980)
• Long term in nature
• HRM is proactive rather than reactive
• Treats employees as human capital rather than as a variable
cost
iv. Strategic HRM Dimension(1980s till date)
• Strategic HRM emphasizes the importance of HR – and the
people in the business – to the success of an organization.
• Businesses with an emphasis on strategic HRM may have an
HR representative in the boardroom or advising/feeding back
to senior executives, and may also make use of HR business
partners.

24. Changing Dimensions in terms
of Functional Focus
1. HR practices and performance dimension
• Concerned with higher performance
• Changing focus is that HR measurement has to be designed in such
a way that the top management gets exact information
2. Re-engineering of organizations dimension
• introduce improvements by making processes, short, simple and
lean
• Helps reduce double work and clear roles and responsibilities
3. Leadership dimension
• Leadership development
• Focus should be on- current leadership practices- leadership
development for the future of the organization
• Duty of HRM is to co-operate with top level management to identify
successor and high potentials in the organization

25. 4. Workplace learning dimension
• Main objective is to provoke managers and employees to do
their job better everyday
• Design program to support innovations
5. The relationship with employees dimension
• HR manager has to deal and understand interest of the
employees
• Decisions made by HRM should consider opinions from the
employees

26. Changing Role of HR managers
• Technological development, globalization, competition,
workforce diversity, information revolution and new trends in
the areas of key sector have changed the rule of game
significantly
• Trend In HRM
i. The role of HR is shifting from protector and screener to
strategic planner and change management
ii. Human resources are now viewed as an ultimate source of
competitive advantage
iii. Competitive advantage can be achieved with a high quality
work force

27. Changing Roles
1. HR and improving productivity
• Productivity includes capital investment, innovation, learning
and employee motivation
• Vital role in reducing costs and improving quality of products/
services
• Implementing employee participation program
• Fostering better communication system
• Developing better labour- management relations
• Increasing training and development programs
• Selection and retention of highly talented and skillful
employee communities

28. 2. HR and corporate strategy
• HR manager must initiate and participate in serious discussion
• Strategy should be comprehensive and the components
should be defined clearly
• Success of a company’s strategy is highly dependent on
i. Strengthening organizational responsiveness
ii. Building committed work teams
iii. Involve HR manager in the earliest stages of developing and
implementing the firm’s strategic plan, rather than letting
HR just react to it.

29. 3. HR and employee commitment
• A psychological state that characterizes the employee’s
relationship with the organization
• Establish career oriented performance appraisal procedures
• Open job posting and job transfer practices
• Create the feeling that organization cares them
• Offer training programs
4. HR and transferring knowledge
• Vital role to accumulate and disseminate knowledge quickly and
efficiently throughout the organization
• Training and development eg: Job rotation

30. 5. HR and service organization
• Employee behavior is highly important in service organizations
• Success of organization dependent upon employees
motivation, skills and attitudes and- on HR management
• Progressive practices such as facilitating employees’ career
progress, orientation program for new task performance
6. HR and responsiveness
• Responsive employees can adopt change, create new ideas
and deliver high quality services
• High responsiveness in employees can be developed by
building autonomous teams, equitable compensation, flexible
work hours

31. Challenges of HR Managers
1. Recruiting new staff
• HRM faces major challenges i.e. selecting the best candidate and making the hired
candidate familiar with the environment and culture.
• HRM has to select such candidates which are not only technically expert but socially too
because the company cannot receive expected output from employees who are unable to
socialize. This affects the productivity of the company.
2. Retention
• Contingent work force
• The contingent workforce includes part-time, temporary contract and work-at-home
employees.
• Maintaining such employees in the company is a challenge because they are less attached
to the company. So it becomes a major duty of HRM to make such employees feel that they
are a part of the company in order to retain them for a long term.
• Demand of expert employees
• Personnel with greater professional and technical knowledge are highly demanded in the
job market as such employees have the ability to keep their company ahead in the race.
Such employees are an invaluable asset for any company and HRM should focus on
maintaining them.

32. 3. Training
• HRM should manage on-site (within the workplace) as well as off-
site (outside the workplace) job training for employees.
• What kind of training programs are currently required?
• What is the objective of the training?
• How to make them effective?
• Who are the target groups?
• How much do the programs cost the company?
4.Productivity
• Higher the productivity, more successful will be company
• If an inefficient employee is the case, HRM should look forward to
train employee, or even recruiting new staffs while it should find
alternative resources for sufficient input if inadequate resources are
the case.

33. 5. Health and safety
• Keeping health information about employees help the company in
knowing what kind of tasks or activities are safe for their employees to
participate in.
• Several companies at present provide health insurance to its employees
as a fringe benefit. In lack of proper health information about
employees, various legal issues may arise when such insurance is
claimed
6. Workforce Diversity
• The composition of the workforce is getting diverse at present situation.
Here diversity is not only created by age, gender, educational
background and religion but also by the nature, personality and
background of workers.
• With more diversification of workforce, issues related to bullying,
harassment, discrimination, etc may arise, to control which HRM should
formulate and implement strict rules and regulations.

34. 7. Globalization
• It is a challenge at the same time because globalization invites issues
related to unknown language, laws, work ethics, attitudes, management
approach, culture and tradition.
• A human resource manager will need to deal with more heterogeneous
functions such as scheduling meetings, holiday management, human
resource outsourcing, etc to overcome the challenge.
8. Discipline
• Lack of discipline causes various problems which ultimately affect the
productivity of the company.
• When discipline is not maintained, employees neglect their
responsibilities and duties. They may procrastinate their tasks and may
misbehave with co-workers, leading to a conflict that consumes time as
well as energy to resolve. The ultimate result of these activities is
decreased productivity of the company.

35. 9. Advancement in Technology
• With rapid advancement in technology, companies nowadays
require such human force that has the ability to learn and cope with
the changes at an opportune moment.
• Technological changes influence overall nature of work and the
company will need to find out employees that are capable to adjust
with the change. During this process, unemployment, as well as
employment opportunities, arise, creating new challenges for HRM.
10. Management of Information
• Up-to-date information is essential for the operation of any
company. Information may be collected internally as well as
externally.
• Once collected, all the information should be safely maintained so
that they would be readily available when needed in future.

36. Essential Skills for HR
managers
1. Organization skill
• Organized records, strong time management skills and the
personal efficiency are key to HR effectiveness
• Have to organize departmental functions according to need of
organization efficiently and effectively
2. Multitasking skill
• HR manager have to solve personal issue of an employee,
recruitment program finalization, attending collective
bargaining meeting, salary review, promotion interview

37. 3. Negotiation skill
• Agreement or contract between two or more parties
• Conflict of interest in organization
• Deal with parties to end up conflict and keep them satisfied
4. Communication skill
• HR managers communicate with top managers, managers, present
and potential employees and outsiders
• Human resource field requires a lot of talking as the team is in
charge of recruitment that entails a series of interviews
• Must be able to express oneself in both oral and written form
• Must be convincing, caring and believable
• designs and produces the policy handbooks and releases memos for
the benefit of all the employees which call for the need of good
writing skills.

38. 5. Decision making skills
• During the recruitment process where they have to decide
whether an applicant is the right fit for the role or not.
• Another instance is when facing the dilemma of downsizing
• HR managers must be sound decision makers to support
critical organizational functions
6. Training and Development skills
• HR managers are responsible for giving employees
development opportunities in order to maximize performance
and increase value

39. 7. Dual focus (or balancing) skills
• Referees between top management and employees
• Employees expect HR managers to advocate their concerns
• HR managers must also enforce top management policies
8. Budgeting skills
• Compensations and benefits all go through HR.
• The same goes with training and development, social activities, performance
appraisals, etc
• activities have to be incorporated into their organization's strategic planning and
budgeting, taking into account each department's projects and their individual
functions
• primary role of the HR manager is to limit expenditures and not overspend on
unnecessary activities.
9. Conflict management and problem solving skills
• Conflict in interest due to diverse work force

40. Purpose and Structure of HR
Department
• In small companies, HR functions are discharged by line
executives
• In large company, separate HR department is organized for the
purpose
• The main function of HR department is to oversee
department functions and manage employees by planning,
implementing, and evaluating human resources policies,
principles, and programs.
• Basically, it involves functional activities including hiring
qualified employees, establishing compensation structure,
training staffs, addressing employee relations matters, and
maintaining workplace safety.

41. HR structure
HR Director
Recruitment Compensation &
Benefits
Employee Relations T & D Workforce
safety

42. Functions
1. Recruitment
• Job Posting, applicant sourcing, Interview arranging, applicant
choosing
2. Compensation and Benefits
• Job evaluation, attendance checking, salary policy administration,
insurance, bonus managing
3. Employee Relations
• Strategy planning, dispute resolution, contract negotiation, advisory
service
4. Training and Development
• Training program, leadership training, promotion policy
5. Work force safety
• Security education, emergency preparedness, facility inspection

43. Structural Pattern of HR
department
1. Functional basis and structure
• Basic function such as employment, training, wage and salary,
industrial relations, safety and separations
2. Service Basis and Structure
• Tries to prevent dissatisfaction through hygienic maintenance
and promotion of satisfaction through motivators
• Idea offered by Prof. Hertzberg in his two factor theory of
motivation
• Hygiene Needs Programs and Motivator Needs programs
3. Clientele based HR structure(cli-an-tale)
• Focus on specialization under HR department
• Special service to the specific type or group of people

44. HRM as a shared function
Changing context in HRM
• Line manager are encouraged to take part in HRM functions
and deliver the responsibilities
• HR managers are strongly encouraged to participate in
formulation of business strategies in the organization
Line Manager
• The person who is directly responsible for managing the work
of someone else in a company or business
• Line Managers’ Human Resource Responsibilities
i. Placing the right person on the job
ii. Starting new employees in the organization
iii. Training employees for jobs that are new to them

45. iv. Improving the job performance of each person
v. Gaining cooperation and developing smooth work
relationships
vi. Interpreting the company’s policies and procedures
vii. Controlling labour costs
viii. Developing the abilities of each person
ix. Creating and maintaining department morale
x. Protecting employees’ health and physical condition

46. Human Resource Manager’s
Duties
i. Line Function
• Directs the activities of the people in his/ her own department
ii. Coordinative Function
• Ensures that line managers are implementing the firm’s human
resource policies and practices
iii. Staff functions
• Advises top level management
• Assists in hiring, training, evaluating, rewarding, counseling,
promoting and firing employees
• Administers the various benefit programs
• Plays important role in handling grievances and labor relationship

47. HRM in Nepalese Context
While businesses and institutions in developed and emerging
economies have significantly progressed by developing and deploying
best practices and strategies in human resource management, the HR
ecosystem in Nepal is still in its infancy.
1. Diversity has flourished in Nepalese organizations: Nepalese
organization is characterized by people having varied culture, social,
and religious backgrounds, multiple and conflicting goals, and
attitudes.
2.Faster changing conditions and increase in external pressure:
Government regulations, competitive pressure, unionization of
employee have exerted a strong influence on the functioning of HRM
by many Nepalese organizations.
3. Increased focus towards social obligation: HR manager in Nepalese
organizations are bound to evaluate social impacts of their business
and HR decisions, e.g., lay off, pressure to hire local people ethnic
groups, women and minorities.

48. 4. Significant Development, improvement and enforcement of
Acts : Government of Nepal (GON) has come out with a set of
rules and regulation of the employment policy of organization
through act like Labor act, Union act, minimum wage directives,
bonus act, etc.
5. Growth of unions and industrial relations: Freedom to form
and collectively raise voice to the upper management and
government by unions has considerably increased and
improved.
6. Changing employee standard and professionalism: Entry of
educated young managers, more career orientation, entry of
women and protected groups, more participation in decision
making and job involvement.

49. 7. Changing in employees’ roles ,values and work expectation:
Emphasis on quality of work life, equity and justice in work and
rewards, participative decision making, team works instead of
individual and group work, etc
8. Perception and attitudes of managers/ employees- culture of
nepotism, favoritism and political legacy is deep rooted in Nepalese
managers, supply of HR is many times more than demand od HR,
mutual interest and goal setting is rarely practiced, most of private
organization lack systematic performance appraisal and reward system
9. Perception and attitude of workers
• Employees take the job as training first
• Competent manpower is hard to retain for more than 3-5 years