Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an organization's employees. HRM is often referred to simply as human resources (HR). A company or organization's HR department is usually responsible for creating, putting into effect and overseeing policies governing workers and the relationship of the organization with its employees. The term human resources was first used in the early 1900s, and then more widely in the 1960s, to describe the people who work for the organization, in aggregate. HRM is employee management with an emphasis on employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI). The modern term human capital management (HCM) is often used by large and midsize companies when discussing HR technology.

1. HUMAN RESOURCE
MANAGEMENT
SEMESTER 2

2. • Course Objectives:
• The main objectives of this course are to:
• 1. Familiarize the students with concepts of HRM
• 2. Understand the significance of HRM in the organisation
• 3. Learn to apply the methods of HRM to achieve organisational objectives
• Expected Course Outcomes:
• On the successful completion of the course, student will be able to:
• 1 .Learn the basic functions, principles and concepts of HRM
• 2. Understand importance of HRM concepts in business
• 3 .Apply the HRM tools to achieve specific objectives

3. TOPICS
•Human Resource function-
• Human Resource philosophy –
•Changing environments of HRM –
• Strategic Human Resource Management –
• Using HRM to attain competitive advantage –
•Trends in HRM –
•Organisation of HR departments –
•Line and staff functions –
•Role of HR Managers.

4. Human Resource Management
4
HRM is the management of people working in an organization, it is a
subject related to human.
Human resource management (HRM, or simply HR) is a function in
organizations designed to maximize employee performance in service
of their employer's strategic objectives.
HR is primarily concerned with how people are managed within
organizations, focusing on policies and systems.

5. Nature of HRM
5
• Broader function
• People oriented
• Action oriented
• Development oriented
• Continuous function
• Future oriented

6. Objective of HRM
6
• Maintenance of better human relations
• Effective Utilization Of Resources
• Organizational Structure
• Development Of Human Resources
• Respect For Human Beings
• Goal Harmony
• Employee Satisfaction
• Employee Discipline And Moral
• Organizational Productivity

7. Importance of HRM
1.Quality of work-
life
2. Meeting demand
and supply gap for
human resources
3.Training and
overall
development
4. Employee
motivation and
retention
5. Building a
healthy work
culture
6. Employee wages
and salaries
7. Maximizing
profit and
productivity
8. Strategy
Management
9. Establishing
corporate image

8. Philosophy of HRM
8
philosophy is based on the
•The Human Resource Management
following beliefs:
• Human resource is the most important asset in the organization and can
be developed and increased to an unlimited extent.
• A healthy climate with values of openness, enthusiasm, trust, mutuality
and collaboration is essential for developing human resource.
• HRM can be planned and monitored in ways that are beneficial both to
•the individuals and the organization.

9. • Employees feel committed to their work and the organization, if the
organization perpetuates a feeling of belongingness.
• Employees feel highly motivated if the organization provides for
satisfaction of their basic and higher level needs.
• Employee commitment is increased with the opportunity to discover
and use one’s capabilities and potential in one’s work.
• It is every manager’s responsibility to ensure the development and
•utilization of the capabilities of subordinates.
9

10. Evolution of HRM
10
n
The evolution of HRM can be classified
into three stages:
a. Period before industrial revolutio
b. Period of industrial revolution
c. Post Industrial revolution

11. a. Period before industrial
revolution
11
• The society was primarily an agriculture economy with limited
production.
• Number of specialized crafts was limited and was usually carried out
within a village or community with apprentices assisting the master
craftsmen.
• Communication channel were limited.

12. b. Period of industrial
revolution
12
-
-
-
• Industrial revolution marked the conversion of economy from
agriculture based to industry based.
• Modernization and increased means if communication gave way to
industrial setup.
• A department was set up to look into workers wages, welfare andother
related issues.
• This led to emergence of personnel management with the major task as
•Worker’s wages and salaries
Worker’s record maintenance
•Worker’s housing facilities and health care

13. An important event in industrial revolution was growth of Labor Union
(1790)
The works working in the industries or factories were subjected to long
working hours and very less wages.
With growing unrest , workers across the world started protest and this
led to the establishment of Labor unions.
To deal with labor issues at one end and management at the other
Personnel Management department had to be capable of politics and
diplomacy , thus the industrial relation department emerged.
13

14. c. Post Industrial
revolution
14
• The term Human resource Management saw a major evolution after
1850.
• Various studies were released and many experiments were conducted
during this period which gave HRM altogether a new meaning and
importance.

15. -
-
-
A brief overview of major theories release during
this period is presented below
• Frederick W. Taylor gave principles of scientific management
(1857 o 1911) led to the evolution of scientific human resource
management approach which was involvedin
• Worker’s training
• Maintaining wage uniformity
• Focus on attaining better productivity.
15
.

16. Douglas McGregor Theory X and Theory Y (1960) and Abraham
Maslow’s Hierarchy of needs ( 1954) – These studies and observations
led to the transition from the administrative and passive Personnel
Management approach to a more dynamic Human Resource
a valuable
Management approach which considered workers as
resource.
16
Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927
to 1940). – Observations and findings of Hawthrone experiment shifted the
focus of Human resource from increasing worker’s productivity to increasing
worker’s efficiency through greater work satisfaction

17. As a result of these principles and studies , Human resource
management became increasingly line management function , linked to
core business operations.
Some of the major activities of HR department are listed as-
i. Recruitment and selection of skilled workforce.
ii. Motivation and employee benefits
iii. Training and development of workforce
iv. Performance related salaries and appraisals.
17

18. Introduction
Human Resource Management is the
organizational function that deals with issues
related to people such as compensation, hiring,
performance management, organization
development, safety, wellness, benefits,
employee motivation, communication,
administration, and training.

20. Functions of HRM
Managerial Operative

21. Managerial Functions
Planning
Organizing
Directing
Controlling

22. Planning
 Planning is necessary to give the organization
its goals and directions to establish best
procedure to reach the goals.

23. Organizing
 After objectives have been established and
plans been developed then personnel manager
must design and develop organisation structure
to carry out various operations. Such as-
• Grouping of personnel activity
• Assignment of different groups of activities to
different individuals
• Delegation according to task assigned
• Co-ordination of activities of different individuals.

24. Directing
 The directing function of the personnel
manager involves encouraging people to work
willingly and effectively for the goals of the
orgainsation.

25. Controlling
 Controlling helps to evaluate and control the
performance of the department in terms of
various operative functions.

26. Operative Functions
Recruitment
Training & Development
Remuneration
Reward system
Motivation
Records andstatistics
Industrial relations
Separation

27. Recruitment
 The process by which a job vacancy
is identified and potential employees are
notified.
 The nature of the recruitment process
is regulated and subject
to employment law.
 Main forms of recruitment through advertising
in newspapers, magazines, trade papers and
internal vacancy lists.

28. Training and Development
Provides new skills for the employee
Keeps the employee up to date
with changes in the field
Aims to improve efficiency

29. Remuneration
 Concern with determination and equitable
remuneration of employees in the organisation
to the goals.

30. Reward system
 The system of pay and benefits used by the
firm to reward workers
 Money not the only method
 Fringe benefits
 Flexibility at work
 Holidays, etc.

31. Motivation
 To retain good staff and to encourage them to
give of their best while at work requires
attention to the financial and psychological and
even physiological rewards offered by the
organization as a continuousexercise.

32. Records and statistics
 Keeps employee training records
 Achievement records
 Transfer and promotion records
 Absenteeism and labour turnover records

33. Industrial relations
 Good industrial relations, while a recognizable
and legitimate objective for an organization, are
difficult to define since a good system of industrial
relations involves complex relationships between:

34. Separation
 Ensure the release of retirement benefits
 Requirements of the employee

35. CHANGING
ENVIRONMENTS
OF HRM

36. WHYISITNEEDED?
 1.Today’s environment is
characterized by intense
competition and change where
proactive steps are vital to
survive.
 2. To become proactive and not
remain reactive to the
environment.
 3. Reactive strategy are useful in
stable and competition less
environment.

37. CHANGES
IN HRM
•INDIVIDUAL CHANGES
•ORGANIZATIONAL
CHANGES
•ENVIRONMENTAL
CHANGES

38. Individual
changes
education
Work time
Standard of living
Expectations & demand
Diversity and gender issues at workplace
Quality work life

39. INDIVIDUAL CHANGES
• Education: Now a day organizations are available
with the opportunity of having more knowledge and
skilled workers, increase in the education level of
society’s continuously providing the highly educated
work force in the organizations.
• Work time: Flextime—the practice of permitting
employees to choose, with certain limitations, their
own working hours. Compressed Workweek—any
arrangement of work hours that permits employees to
fulfill their work obligation in fewer days than the
typical five-daywork week.
• This approach adds many highly qualified individuals
to the labor market bypermitting both employment
and family needs to be addressed.

40. INDIVIDUAL CHANGES
• Standard of living: High employment rate, low
inflation and Steady economic growth provide
opportunity and rising living standards. Technological
advance has enabled the world’s population to grow
with improved living standards for most.
• Expectations & demand: People's expectations that
their employers will behave ethically are increasing, so
much that many firms and professional organizations
have created codes of ethics outlining principles and
standards of personal conduct for their members.

41. INDIVIDUAL CHANGES
• Diversity and gender issues at workplace:
• Managing diversity means planning and implementing
organizational systems and practices to manage
people so that the potential advantages of diversity
are maximized while its potential disadvantages are
minimized.
• Managers are striving for racial, ethnic, and sexual
workplace balance as a matter of economic self-
interest.
• QWL: High quality of work life is related to job
satisfaction, which in turn is a strong predictor of
absenteeism and turnover.
• A firm's investments in improving the quality of work
life also payoff in the form of better customer service.
We discuss issues covering job design and their effects
on employee attitudes and behavior.

42. Controlling costs
Improving quality
Creating distinctive capabilities
Restructuring
Organizational
changes

43. Organizational changes
• Controlling costs
• One way for a firm to gain a competitive advantage is
to maintain low costs and a strong cash flow. A
compensation system that uses innovative reward
strategies to control labor costs can help the
organization grow.
• Improving quality.
• The second way to gain a competitive advantage is to
engage in continuous quality improvement. Many
companies are implementing total quality
management (TQM) initiatives, which are programs
designed to improve the quality of all the processes
that lead to a final product or service.

44. Organizational changes
•Creating distinctive capabilities
• utilize people with distinctive capabilities to create
unsurpassed competence in a particular area
• Restructuring
• A few firms are changing the way the functions are
performed. For example, some companies are
restructuring HR for reasons such as time pressures,
financial considerations, and market pressures.
• The size of some HR departments is getting smaller
because certain functions are now being accomplished
by others. This shift permits the HR managers to focus
on more strategic and mission-oriented activities.

45. Rapid Change
Work Force & cultural Diversity.
Globalization.
Political & Legislation
Technology
Economic & Demographic shifts
Environmental
changes

46. 7
Environmental Changes
Environmental refer to forces external to the firm that
are largely beyond management’s control but
influence organizational performance.

47. 8
Environmental changes
Rapid Change:
• Many organizations face an unstable environment in which
change is nearly constant.
• If they are to survive and prosper, they need to adapt to
change quickly and effectively.
• Human resources are almost always at the heart of an
effective response system.
Work Force & cultural Diversity
• Lifestyle, ethics, values, education and culture are some of
the social factors that affect the business operations.
• Understanding the surrounding culture helps HRM put in
place a culture that blends with its environment.

48. Environmental changes
•Globalization :One of the most dramatic challenges
facing as they enter the twenty-first century is how to
compete against foreign firms, both domestically and
abroad.
• Human resources can play a critical role in a
business's ability to compete head-to-head with
foreign producers.
•Political & Legislation
• The legal environment comprises numerous
government-enacted legislation that the human
resources department must follow.
• If the human resources department fails to consider
the legal elements of its job, it may face issues with
the legal authorities, which might lead to the
organization's closure

49. Environmental changes
•Technology:
• The world has never seen such rapid technological
changes as are presently occurring in the computer
and telecommunications industries.
• One estimate is that technological change is occurring
so rapidly that individuals may have to change their
entire skills three or four times in their career.
• The advances being made, affect every area of a
business including human resource management.

50. Environmental changes
•Economic & Demographic shifts
• The organization is affected by various economic
factors, such as the general economic
situation, economic policies, GDP, and inflation, and
the changes that occur in the organization as a result
of various economic factors are reflected in the change
in human resources management.
• when it comes to human resources planning, it's
critical to consider not only the current economic
situation and how it's changing, but also to prepare for
economic downturns and crises at both the local and
global levels

51. Using HRM to attain competitive
advantage
1
HR can use data
to analyze
turnover rates and
determine where
problems may
lie, thus allowing
the company to
more quickly find
issues and get
them resolved. For
example, if the
data show that
most turnover is
from new hires, the
team can focus on
what problems
may be the cause
of that. Or if the
data show that one
group has a higher
turnover rate than
the rest of the
business, focus can
be turned there.
2
HR can help
managers source
the right talent to
get the skills the
company needs to
grow and be
competitive. HR
expertise can allow
the organization to
know where to
look for specialized
talent when
needed. (If your
organization
doesn’t already
assess which talent
streams are best
utilized for
different types of
candidates, you
can start now!)
3
HR can provide
insight into the
going market
rates for
talent and what it
might take to get
high-quality hires
on board. HR can
review the
competitive talent
landscape and
determine what
compensation
strategy will be
best aligned with
company goals.
4
HR can give
insights into how
other
organizations
within your
industry are
structured—there
may be
information that
can be useful in
determining which
positions the
company still
needs to create or
fill to become or
remain
competitive.
5
HR can use data
to show how the
skill sets of the
employees are
evolving over
time, and to show
business leaders
where skills gaps
may exist so those
gaps can be
addressed
proactively.

52. HRM
Using HRM to
attain
competitive
advantage
attain
competitive
advantage
• HR can also design employee development pathways that
take into account the strategic and long-term needs of the
organization, ensuring that key employees get the right
training before it must be utilized. This impacts retention and
improves the skill sets for the organization as a whole, all while
ensuring the organization is addressing big-picture competitive
issues proactively.
• HR can use data to find potential employee issues before
they become problematic. By tracking employee engagement
scores over time, for example, HR can discover when
engagement levels are waning—hopefully before they have a
significant impact on morale and turnover—so the organization
can act sooner rather than later.
• HR can put together succession plans that take into ccount
the organization’s strategic goals. This can allow the
organization to remain competitive even when there is turnover
in key roles. (This is a critical time when a less organized
company may falter.)
• HR can analyze which employees are high performers and
alert the management about who should be fast-tracked for
promotions and new projects.
• HR guidance on legal issues can keep the organization out of
costly legal problems. This not only saves the company money,
but it can also save the company from major setbacks.

53. HRM to
attain
competitive
advantage
• HR can use data to analyze turnover rates and determine where
problems may lie, thus allowing the company to more quickly find
issues and get them resolved. For example, if the data show that most
turnover is from new hires, the team can focus on what problems may
be the cause of that. Or if the data show that one group has a higher
turnover rate than the rest of the business, focus can be turned there.
• HR can help managers source the right talent to get the skills the
company needs to grow and be competitive. HR expertise can allow
the organization to know where to look for specialized talent when
needed. (If your organization doesn’t already assess which talent
streams are best utilized for different types of candidates, you can
start now!)
• HR can provide insight into the going market rates for talent and
what it might take to get high-quality hires on board. HR can review
the competitive talent landscape and determine what compensation
strategy will be best aligned with company goals.
• HR can give insights into how other organizations within your
industry are structured—there may be information that can be useful
in determining which positions the company still needs to create or fill
to become or remain competitive.
• HR can use data to show how the skill sets of the employees are
evolving over time, and to show business leaders where skills gaps
may exist so those gaps can be addressed proactively.

54. Strategic Human Resource
Management
Strategic human resource
management is the process of
linking the human resource
function with the strategic
objectives of the organization to
improve performance.
Attracting and keeping talented
and skilled employees is one of
the most important challenges
organizations face in today’s
dynamic business world.
No strategy, no matter how well
designed, will work unless the
organization has the right
people, with the right skills and
behaviors, in the right roles,
motivated in the right way and
supported by the right leaders.

55. Characteristics of SHRM
1.Recognition of the outside Environment
2.The impact of Competition
3. Long-Range Focus
4. Choice and Decision-making focus
5. Consideration of all Personnel
6. Integration with the Corporate Strategy

56. Objectives of SHRM:
1.To focus the HR policies,
programmes and practices
as the means through
which the people can be
deployed to gain better and
competitive advantages;
2.To manage and maintain
human capital resources,
skill, knowledge, efficiency
and intelligence of the
employees;
3.To find out the ways and
means for effective and
efficient utilization of
human resources;
4.To emphasize that
human resources treated as
the primary source of
competitive advantages of
the organization;
5.To integrate the HR
strategies with the Business
strategies for the
betterment of organization;
6.To make an appropriate
direction for people,
practices and performance
towards the achievements
of the goals of the
organization;

65. Line-staff organization
Line-staff organization, in management, approach in
which authorities (e.g., managers) establish goals and
directives that are then fulfilled by staff and other workers.
Line groups are engaged in tasks that constitute the
technical core of the firm or the subunit of a larger
enterprise.They are directly involved in accomplishing
the primary objective of the enterprise.
Staff groups are engaged in tasks that provide support
for line groups.They consist of advisory (legal), service
(human resources), or control (accounting) groups.

66. Advantages of Line and Staff Organizational
Structure
Encourages
independence in
the workplace
Provides expertise
to occupational
tasks
Allows greater
focus on core
responsibilities
Facilitates
Organizational
Growth
Better Decisions

67. Disadvantage
s of Line and
Staff
Organizationa
l Structure
Causes authority to overlap
Misuses the expertise of staff members
Costs money to fund two types of
employees
Over-Dependence on Staff
Creates Confusion

68. Role of HR
manager
• Advisory Role: One of the major roles of HR
manager is, to advise the top management in the
matter relating to management and development
of human resource, to achieve organizational
objects.
• Developmental Role: Development of workers
for attaining company goals is made by the HR
manager through improvement of knowledge,
skill, abilities, aptitude, attitude, value, beliefs etc
• Change Agent Role: In changing scenario,
workers are required to change their attitudes,
belief, perceptible state, values to meet
organization needs, requirement and
expectation. In the age of stiff competition
organization can survive and develop only if the
workers are adaptive to change requirement.
• Executive Role: HR manager plays an important
role to execute the policies, programmes,
decisions. Formulation and execution tasks are
interwoven and equally important for
achievement of organizational goals.

69. Role of HR
manager
• Decision Maker’s Role: HR manager is the
supreme person to make decisions in
respect of management and development
of human resource. Organizational policies,
programmes objectives concerning human
resource are formulated by him.
• Coordinator’s Role: HR executive
coordinates the task of developing,
interpreting of HR programmes, policies
which are put into operation by the line
people, and develops a team spirit amongst
them.
• Strategist Role: HR manager helps to
accomplish business strategy of the
organization through introducing and
implementing HR strategies.