human resource management

1. MANAGING HUMAN
RESOURCES
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2. • UNIT I
• Evolution & Growth of HRM –Significance of HRM,
Definition, Scope, Functions & Objectives of HRM, Roles of
HR Managers in Modern day Organizations, HRM vs.
Personnel Management, HRM & Human Capital Management
– Contemporary HR Practices & Challenges, Introduction to
HR Analytics, HR Accounting, HR Audit, HRIS.
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3. INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
Human resources means the collection of people and their
characteristics at work. These are distinct and unique to an
organization in several ways.
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4. INTRODUCTION
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5. WHAT IS HR
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6. • Human resources management (HRM) is a management
function concerned with hiring, motivating and maintaining
people in an organization. It focuses on people in organizations
• It is designing a management systems to ensure that human
talent is used effectively and efficiently to accomplish
organizational goals.
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7. Definition of HRM
• Edwin Flippo defines HRM as “planning, organizing,
directing, controlling of procurement, development,
compensation, integration , maintenance and separation of
human resources to the end that individual, organizational
and social objectives are achieved.”
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8. • According to Stephen P.Robbins, "HRM is concerned with the
people’s dimension in management. It is a process consisting of four
functions acquisition, development, motivation and maintenance of
human resources".
• In the words of Gary Dessler, "Human resource management is the
process of acquiring, training, appraising and compensating
employees and attending to their labour relations, health, safety and
fairness concerns”
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9. SIGNIFICANCE/IMPORTANCE/NEED OF HRM
• HRM becomes significant for business organization due to the following reasons.
1. Objective :-
• HRM helps a company to achieve its objective from time to time by creating a positive attitude
among workers.
• Reducing wastage and making maximum use of resources etc.
2. Facilitates professional growth :-
• Due to proper HR policies employees are trained well and this takes them ready for future
promotions.
• Their talent can be utilized not only in the company in which they are currently working but also
in other companies which the employees may join in the future.
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10. 3. Better relations between union and management :-
• Maintain co-ordinal relationship with the unions. Union members start realizing that the
company is also interested in the workers and will not go against them therefore chances of
going on strike are greatly reduced.
4. Helps an individual to work in a team/group :-
• Effective HR practices teach individuals team work and adjustment..
5. Identifies person for the future :-
• Since employees are constantly trained, they are ready to meet the job requirements. The
company is also able to identify potential employees who can be promoted in the future for
the top level jobs. Thus one of the advantages of HRM is preparing people for the future.
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11. 6. Allocating the jobs to the right person :-
• If proper recruitment and selection methods are followed, the company will be able to
select the right people for the right job. When this happens the number of people
leaving the job will reduce as the will be satisfied with their job leading to decrease in
labour turnover.
7. Improves the economy:-
• Effective HR practices lead to higher profits and better performance by companies due
to this the company achieves a chance to enter into new business and start new
ventured thus industrial development increases and the economy improves
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12. SCOPE OF HRM
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13. a) Human Resource Planning:
• The objective of HR Planning is to ensure that the organization has the right
types of persons at the right time at the right place.
• It prepares human resources inventory with a view to assess present and
future needs, availability and possible shortages in human resource.
• HR Planning forecast demand and supplies and identify sources of
selection.
• HR Planning develops strategies both long-term and short-term, to meet the
man-power requirement.
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14. b) Design of Organization and Job:
• This is the task of laying down organization structure, authority,
relationship and responsibilities.
• Work contents for each position in the organization. This is done
by “job description”.
c) Selection and Staffing:
• This is the process of recruitment and selection of staff.
d) Training and Development:
This involves an organized attempt to find out training needs of the
individuals to meet the knowledge and skill which is needed not
only to perform current job but also to fulfil the future needs of the
organization.
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15. f) Compensation and Benefits
• area of wages and salaries administration where wages and
compensations are fixed scientifically to meet fairness and equity
criteria
g) Employee Assistance:
Each employee is unique in character, personality, expectation and
temperament. By and large each one of them faces problems everyday.
Some are personal some are official. In their case he or she remains
worried. Such worries must be removed to make him or her more
productive and happy.
h) Union-Labour Relations: Healthy Industrial and Labour relations are
very important for enhancing peace and productivity in an organization.
This is one of the areas of HRM.
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16. GOALS/OBJECTIVES OF HRM
• 1) Human capital : assisting the organization in obtaining the right
number and types of employees to fulfill its strategic and operational
goals
• 2) Developing organizational climate: helping to create a climate in
which employees are encouraged to develop and utilize their skills to
the fullest and to employ the skills and abilities of the workforce
efficiently
• 3) Helping to maintain performance standards and increase
productivity through effective job design; providing adequate
orientation, training and development; providing performance-related
feedback; and ensuring effective two-way communication.
• 4) Helping to establish and maintain a harmonious
employer/employee relationship
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17. • 5) Helping to create and maintain a safe and healthy work environment
• 6) Developing programs to meet the economic, psychological, and social
needs of the employees and helping the organization to retain the productive
employees
• 7) Ensuring that the organization is in compliance with provincial/territorial and
federal laws affecting the workplace (such as human rights, employment equity,
occupational health and safety, employment standards, and labour relations
legislation). To help the organization to reach its goals
• 8) To provide organization with well-trained and well-motivated employees
• 9) To increase the employees satisfaction and self-actualization
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18. • 10) To develop and maintain the quality of work life
• 11) To communicate HR policies to all employees.
• 12) To help maintain ethical polices and behavior
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19. FUNCTIONS OF HRM
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20. ROLES OF HR MANAGERS IN MODERN DAY ORGANIZATIONS
• In the early days, the role of the HR manager was restricted to
recruitment and selection of employees. The HR manager is
today a key person in the organisation. He performs the
following important roles:
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21. The Counsellor:
• The HR manager acts as a counsellor and provides counselling to
employees.
• Employees discuss problems relating to health,emotions, finance,
work, colleagues, family etc., with the HR manager.
• He guides them to find suitable solutions.
 The Advisor:
• The HR manager advises the management on human resource
planning, recruitment, selection, training, appraisal, compensation
and integration.
• He guides the management in preventing and solving industrial
disputes.
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22. The Problem Solver:
• Organisations face variety of problems which are complex in nature.
• The HR manager takes steps to anticipate and prevent problems in the HR
area. He also gives ideas to solve problems faced by the organisation.
The Welfare Role:
• Welfare facilities improve the physical, economic, intellectual and moral
well-being of workers.
• The HR manager focuses his attention in providing and improving welfare
facilities for employees.
• He takes steps to provide facilities more than what is mandatory.
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23.  The Mediator:
• The HR manager acts as the link between management and workers.
• He conveys the problems of workers to management and the management
thinking to workers.
He plays the role of a peace keeper and resolves conflicts.
 The Liaison Role:
• The HR manager acts as the representative and spokesperson of the
organisation.
• He interacts with various government authorities and represents the firm.
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24.  The Conscience Keeper:
• Every firm has legal, ethical, and social obligations. The HR manager
plays an important role in advising and ensuring that the firm fulfills its
obligations.
The Legal Role:
• The HR manager should ensure that government rules and regulations
relating to HR are followed.
• He plays an important role in collective bargaining, redressal of
grievances, enforcing discipline and settling disputes.
 Change Agent:
• The HR manager improves the firm's capacity to change.
• He communicates the need for change and overcomes resistance to change.
He implements changes to make the firm flexible and responsive.
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25. PERSONNEL MANAGEMENT VS HUMAN
RESOURCE MANAGEMENT
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CHALLENGES OF HRM:
As business environment becomes complex and aspirations of employees
rise, the HRM function faces the following challenges:
(i) Technological developments:
Technological changes and developments are happening in a rapid manner.
Most of the jobs have a technology component and therefore skilled
employees are required.
Existing employees have to be trained on latest skills
(ii) Challenges of modernisation:
As firms use latest technology and adopt mechanisation, jobs may become
redundant. Companies may have to plan for layoffs and retrenchment.
They have to take steps for retraining and outplacement of employees.
(iii) Political environment:
Changes in the political environment pose challenges for firms and the HR
function. Political parties may require implementation of reservation
policies. Change in government may have a positive or negative impact on
business and on HR.

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(iv) Legal environment:
There should be awareness of government legislation, rules and
regulations. The HR manager should comply with legal requirements
and file statutory reports. As organisations operate in multiple
countries, legal regulations in each country have to be understood and
followed.
(v) Socio-cultural factors:
The values, beliefs, norms, traditions, ethics and customs of the
people should be understood. HR policies and practices should be
prepared considering the socio-cultural factors. While core principles
remain same, changes in certain practices are required indifferent
cultures.
(vi) Globalisation:
As firm's operate in a globalised market, the role of HRhas become
more challenging. Employees in a firm are not from a single country.
HR managers need to be aware of employee needs, design suitable
salary structure and plan for training.

31. • Human Capital Management
• HCM refers to the tasks of measuring the cause and effect relationship of
various HR programmes and policies on the bottom line of the organization.
• Human Capital Management (HCM), often called talent management.
• HR professionals become HC developers.
• HR capital developers ,HR executives focus on future employees, developing
plans that offer each employee opportunities to develop future abilities ,
matching expectations with opportunities.
• The role of HR developers is helping employees to unlearn old skills and
acquire new ones. In HCM the professionals seeks to identify ,what is best for
this company
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32. • Human capital management (HCM) is the process of hiring the right
people, managing workforces effectively and optimizing productivity. It
has evolved from a mostly administrative function to a critical enabler of
business value.
• HCM recognizes that people are investors of their personal human
capital and this provides the main source of value for an organisation.
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33. • HCM demands action by an organisation on the following:
• 1. Focusing on knowledge and insight rather than on metrics
and standards.
• 2. Acknowledging complexity and not trying to understand
everything through cause and effect.
• 3. Using best-fit, not just basic or best practices.
• 4. Focusing on creating value through intangible capability
• .5. Integrating people and business strategy, driving and
accelerating the business plan.
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34. • 6. Managing a large proportion of the people management agenda
through strategic programmes.
• 7. Focusing on long-term stretch objectives, and learning from their
outcomes.
• 8. Reporting to employees, managers and the Board.
• 9. HR acting as a strategic partner.
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35. HUMAN SOURCE INFORMATION SYSTEM (HRIS)
• Acquisition , storage and retrieval of information is a significant
challenge to the management
• Human Resource Information System is a systematic way of
storing data and information for each individual employee to aid
planning , decision making and submitting of returns and reports to
the external agencies.
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36. • It merges HRM as a discipline and in particular its basic HR
activities and processes with the information technology field.
• It can be used to maintain details such as employee profiles,
absence reports, salary admin. and various kinds of reports.
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37. HRIS MODEL
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38. OBJECTIVES OF
HRIS
EFFECTIVE PLANNING AND POLICY FORMULATION –
HRIS PROVIDES SUPPORT FOR FUTURE PLANNING AND ALSO
FOR POLICY FORMULATIONS, BOTH AT MICRO AND MACRO
LEVELS.
MONITORING AND EVALUATION :
FACILITATES MONITORING OF HUMAN RESOURCES
DEMAND AND SUPPLY IMBALANCES AND EVALUATION OF THE
POLICY , DEVELOPMENT AND UTILIZATION OF HUMAN
RESOURCE.

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40. THE BASIC ADVANTAGE OF A HUMAN RESOURCE INFORMATION
SYSTEM (HRIS) IS NOT ONLY TO COMPUTERIZE EMPLOYEE
RECORDS AND DATABASES BUT TO MAINTAIN AN UP-TO-DATE
ACCOUNT OF THE DECISIONS THAT HAVE BEEN MADE OR THAT
NEED TO BE MADE AS PART OF A HUMAN RESOURCE
MANAGEMENT PLAN.
• The four principal areas of HR that are affected by the
Human Resource Information System (HRIS) include;
• PAYROLL
• TIME AND LABOUR MANAGEMENT
• EMPLOYES BENEFITS AND
• HR MANAGEMENT

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