This document provides an introduction to foundations of human resource management (HRM). It defines key terms like human, resource, and management. It explains that people are the most important asset of an organization and that HRM aims to match organizational needs to employee skills and abilities. The document also outlines goals, importance, and examples of high-performance work practices of HRM. It describes common HRM functions like job analysis, human resource planning, recruiting, selection, training, compensation, performance management, and retention.

1. Foundations of HRM
Lesson 01

2. Introduction
• People, not the building make a company successful.
• People are the common element in every organization
• Let us see what is meant by three terms:
 Human: Homo-sapiens; Social Animal
 Resource: Financial, Physical, informational and Human
 Management: is the process of doing things efficiently and
effectively with through other people.
• Process consists of:
Planning: establishing goals, and strategies to achieve them
Organizing: determining what activities need to be completed
to achieve these goals
Leading: ensuring right people are right job with appropriate
skills (staffing) and motivating them to high levels of
productivity.
Controlling: monitoring activities to ensure that goals are met

3. Essence of HRM
• ‘EMPLOYEES ARE THE MOST IMPORTANT ASSET OF
THE ORGANIZATION’
• The quality and effectiveness of the organization is
determined by the quality of the people that are
employed.
• Success for most organizations depends on finding the
employees with the skills to successfully perform the
tasks required to attain the company’s strategic goals.

4. What is HRM?
• HRM is Human Resource management----it is the management
of the people/humans/individuals in an organization
• HRM is a managerial function that tries to match an
organization’s needs to the skills and abilities of its employees.
• In a layman language, the process of hiring and developing
employees so that they become more valuable to the
organization is human resource management

5. Definition of HRM
• Human Resource Management is activities, policies and practices
to:
– Obtain and develop employees, Utilize, evaluate and maintain
employees to accomplish organizational goals.
• HRM is the utilization of the individuals /humans/people:
– to achieve organizational goals.
• HRM is the design of formal systems in an organization to ensure :
– Efficient and effective use human talent to accomplish
organizational goals.
• HRM can be defined as a process of
– procuring, developing and maintaining competent human
resources in the organisation
– so that the goals of an organisation are achieved in an
effective and efficient manner.

6. • In short, HRM is an art of managing people at work in such a
manner that they give their best to the organisation for achieving
its set goals.
• Effective HRM practices Organization’s /Company’s
performance
Affects

7. Goals of HRM

8. Importance of HRM

9. Importance of HRM (additional)
• As a necessary part of the organizing function of management
– Selecting, training, and evaluating the work force
• As an important strategic tool
– HRM helps establish an organization’s sustainable competitive
advantage.
• Adds value to the firm
– High performance work practices lead to both high individual
and high organizational performance.

10. Examples of High-Performance Work Practices
• Self-managed teams
• Decentralized decision making
• Training programs to develop knowledge, skills, and abilities
• Flexible job assignments
• Open communication
• Performance-based compensation
• Staffing based on person–job and person–organization fit
Example of High performance Work Practices
 Self-managed teams
 Decentralized decision making
 Training programs to develop knowledge, skills, and abilities
 Flexible job assignments
 Open communication
 Performance-based compensation
 Staffing based on person–job and person–organization fit

11. HRM Practices
• Job Analysis: analysis and design of jobs/work; HRM practices
that support organization’s goals and strategies.
• Human Resource planning (HRP): determining how many
employees with specific skills, and knowledge are needed.
• Recruiting: Attracting potential employees
• Selection: choosing employees
• Training and development: teaching employees how to perform
their jobs and prepare them for future
• Compensation and Benefits: Rewarding employees
• Performance Management: Evaluating their performance
• Employee retention: Creating positive work environment
• Company’s Performance

13. HRM Functions

16. HR is a huge domain and there are a lot of different roles.
Either you start as a Generalist or a Specialist.
As a Generalist, you get to handle some or all HR systems and processes of an organization,
but as a specialist, you have extensive exposure in one of the HR system or processes.

18. Responsibilities of HR Department