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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