human resource management

1. PREPARED BY:
DHRITY AHUJA
Human Resource Management

2. DEFINITION
Human Resource management is the process of
acquiring, training, appraising & compensating
employees and attending to their labour relations,
health safety and fairness concerns.
HRM is that part of management process which
develops & manages the human element of the
enterprise considering their resourcefulness in terms
of total knowledge , skills, creative abilities, talents,
aptitudes & potentialities for effectively contributing
to the organizational objectives.

3. NATURE OF HRM
Inherent part of management : It is inherent in the process of
management. This function is performed by all the managers
throughout the organization rather than by the personnel
department only.
Pervasive function : It is performed by all managers at various
levels in the organization .
Basic to all functional areas : Every manager from top to
bottom, working in any department has to perform the personnel
functions.
People centred : It is concerned with all categories of personnel
from top to the bottom

4. CONTD.
Personnel Functions : It involves several functions concerned
with the management of people at work. it includes manpower
planning, employment, placement, training, appraisal and
compensation of employees.
Continuous process : It is not a one shot function. It must be
performed continuously if the organizational objectives are to be
achieved smoothly.
Based on human relations: It is concerned with the motivation
of human resource in the organization .If the personnel function is
performed properly, the human relations in the organization will
be cordial.

5. SCOPE OF HRM
Human Resource or Manpower Planning i.e. determining the
numbers & kinds of personnel required to fill various positions in
the organization
Recruitment, selection & placement of personnel.
Training & Development of employees for their efficient
performance & growth.
Appraisal of performance of employees and taking corrective
steps such as transfer from one job to another.
Motivation of workforce by providing financial incentives &
avenues of promotion.

6. CONTD.
Remuneration of employees.
Social Security & welfare of employees.
Review & audit of personnel policies, procedures & practices of
the organization.

7. FUNCTIONS OF HRM

8. ROLE OF HR MANAGER IN AN
ORGANISATION

9. HRM POLICIES
Policies are broad guidelines as to how the objectives of the
business are to be achieved.
“A policy is an established guiding canon premised on objective,
devised to govern the activities of the business enterprise and from
which the basic percepts of conduct are derived.”
Examples of personnel Policies :
1. The employees will not accept any gift from any supplier except
for token gifts of purely nominal value.
2. Each employee will proceed on at least one week vacation each
year.
3. The employees will not accept any outside assignment.

10. FEATURES OF POLICY
Policy is an expression of intention of top management.
Policy is stated in broad terms.
Policy is long lasting.
Policy is developed with the active participation of all executives.
Policy is in writing
Policy is linked with objectives.

11. TYPES OF POLICIES
Functional Policies :It may be set up in the key areas of the enterprise
like production, purchase, finance, personnel and marketing.
Internal Policies: It include those initiated by managers at various
levels to guide the subordinates.
- Basic policy : It is applicable to the organization as a whole.
- General policy : It is specific and used mainly by middle level
managers.
- Departmental policy : It is highly specific in nature and is
applicable at the lowest level of management to provide a guide
in the day-to-day activities.

12. CONTD.
External Policy : It include those policies which arises to meet the
various pressures & requests of forces outside the enterprise such
as govt., trade unions etc.
Appealed Policy : Such policies are formulated on the basis of
suggestions & complaints received from employees.
Stated or Explicit Policy : Such policies are usually in writing &
form a part of enterprise manual .They are definite & generally
rigid.
Unstated or Implied Policy :These policies are not recorded in
writing even though they are followed at every level .They are
inferred from the behavior of the managers.

13. LIMITATIONS
Policies are repeatedly used plans which is very rigid in nature.
Policies may not cover all the problems.
Policies are no substitute for human judgment. Policies only
delimit the area within which decisions are to be made.
Policies may not be everlasting as they lose their utility with the
changes in environment of the business.

14. FORMULATION OF HR POLICIES
Preliminary Investigation
Environment Scanning
Identification of policy areas
Analysis of alternative policies
Participation of lower levels
Approval of top management
Implementation of policy
Policy Appraisal

15. HRM ENVIRONMENT

16. CONTD.
Internal Environment:
The internal environment also affects the job of a
personnel manager. The internal environmental factors
include Organization objectives, policies, organizational
structure, and the functional areas of the Organization with
which the personnel manager works continuously like
finance, marketing and production. Impact of internal
environment factors is profound as they frequently and
closely interact with HRM function in an Organization.

17. CONTD.
External Environment:
The influence of external environment on HRM is also equally
important, though the severity is comparatively less. People are
essentially self-managing. In other words, while people manage
other resources, themselves manage personnel. People themselves
decide about the nature, time, and place of their employment. And
people react to the changing conditions and to the techniques of
management unlike money, material and machine. The changes
includes in the external environment are:
-Technological obsolescence;
-Cultural and social changes;
-Changes in the policies of govt.;
-Politics and the like.

18. STRATEGIC HRM
Strategy : “A strategy is a unified comprehensive and integrated
plan designed to ensure that the basic objectives of the enterprise
are achieved.”
Strategic Management is the formulation & implementation of
plans & carrying out of activities relating to the matters which are
of vital, pervasive, or continuing importance to the total
organization.
Strategic management of HR can facilitate creation of
competitive advantage for the organization over its rivals by
building employee competence.

19. CONTD.
Strategic HRM may be defined as the linking of human resource
management with strategic goals & objectives in order to improve
business performance & develop organizational culture that fosters
innovation & flexibility.
In every organization HR Manager has to play various vital
strategic roles to gain the competitive advantage.

20. STRATEGIC ROLE OF HR MANAGER
Providing Purposeful direction
Building Core Competency : A core competence is a unique strength of
an organization which may not be shared by others. This may be in the
form of HR, marketing capability, or technological capability.
Creating Competitive Advantage
Facilitation of Change
Managing Workforce Diversity
Development Of Work Ethics & Culture
Empowerment Of Human Resources-It means authorizing every
member of a society or organization to take control of his/her destiny &
realizing his/her potential to the full.
Total Quality Management.

21. HRM IN GLOBALLY COMPETITIVE
ENVIRONMENT

22. CONTD.
To gain competitive advantage HRM practice proves
as an important source. Various HRM practices are:
Employment security
High wages
Employee ownership
Participation & empowerment
T&D
Promotions from within : filling job vacancies by
promoting employees only

23. CONTD.
Selectivity in recruiting
Incentive pay
Information sharing
teams & job re-design
Symbolic egalitarianism: equality of treatment
among employees like eliminating reserved
parking space, executive dining rooms etc. us vs.
them attitude is applicable.

24. CONTD.
Measurement of practices: whatever employees
are performing, their attitudes etc. must be
properly judged.
Cross utilization : train people to perform several
task.
Wage compression : reducing the size of wage
differentials among employees.
Long term perspective : satisfaction of workforce

25. TYPES OF HUMAN RESOURCE
OBJECTIVES
Organizational Objectives
HR Objectives
Social Objectives

26. OBJECTIVES IN CONTEXT OF ORGANIZATION,
HR,SOCIETY
Organizational
o Establishing strategy
o Profit earning
o International strategic
o Organizational development
Human resource
o Working condition
o Fair wages
o Empowerment
o Industrial relation
Social objectives
o Satisfy consumers
o Offer right product
o Increase employment
o Environment management

27. BASIC HRM OBJECTIVES
1. Matching the workforce to the needs of the
business......
2. Making full use of the workforce’s potential……
3. Minimising labour costs…….
4. Maintaining good employee/employer
relations……..

28. MIXED HRM OBJECTIVES
• To help the organization reach its goals.
• To ensure effective utilization and maximum development of human resources.
• To ensure respect for human beings. To identify and satisfy the needs of
individuals.
• To ensure reconciliation of individual goals with those of the organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-motivated employees.
• To increase to the fullest the employee's job satisfaction and self-actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To develop overall personality of each employee in its multidimensional aspect.
• To enhance employee's capabilities to perform the present job.
• To equip the employees with precision and clarity in transaction of business.
• To inculcate the sense of team spirit, team work and inter-team collaboration.

29. HR OUTSOURCING