Two contract workers who had been laid off from their jobs in 1996, doused themselves with kerosene and set themselves ablaze in protest in front of their former company's offices. While one died at the scene, the other passed away a few days later. They had worked for 17 and 19 years respectively but were not considered permanent employees. Their union had promised to renegotiate for them but ultimately could not improve their situation, which led them to take their own lives in desperation. This tragic event highlights issues around human resource management practices regarding temporary or contract workers.

1. Ms. Anubha Rastogi

2. Opening Case
On October 3, 2003, Anant Dalvi and Akhtar Khan, who worked as contract
workers in Tata Electric Company until they were laid off in 1996, doused
themselves with kerosene and set themselves ablaze even as their co-workers
protested before the company’s offices. While Dalvi died on the spot, Khan died a
few days later. The Tata Electric Company said they were no longer on their payroll
and were not permanent workers. Employees union had taken up their case and
filled petition in the Labour Court before their contracts were terminated. The court
directed the company not to terminate their services without following the due
process of law. Despite this their services were terminated on June 30, 1996. The
company union promised the workers that they would renegotiate. Yet on the night
before they killed themselves when Khan and Dalvi spoke to the union leader
Shinde, they were told that nothing more could be done for them. It is this that led
them to take their lives. Dalvi has been in service as a peon for17 years and Khan
had been employed for 19 years. But their services were not regularized. Such
workers draw salary much less than the permanent employees. This is an example
of the problem that comes under the purview of Human Resource Management-
the main concept elaborated in this chapter.

3. • During early ages it was about industrial revolution and machines
• Ever since the genesis of civilization on earth, man has been playing a
dominant role in almost every change, development and growth, either
individually or by forming groups.
• All major accomplishments in the form of great victories, planning,
administering, ruling, inventing, discovering, setting and building great
structures and organizations and entering the space even, are the
results and human endeavours. HUMAN RESOURCES ASSUME THE
TOP PRIORITY
• Organizations from the very beginning needed some natural resources
besides capital, goods, technology and systems as material and
financial resources along with human resources for carrying their
functions and achieving goals. Out of all these resources, human
resources are considered the most important who have to make use of
other resources."

4. • While all of these are important to organizational
effectiveness, the only factor that represents a potential
competitive advantage is human resources and how these
resources are managed.
• The value of an organization's human resources frequently
becomes evident when the organization is sold. Often, the
purchase price in greater than the total value of the physical
and financial assets. The difference, sometimes called
goodwill, partially reflects the value of an organization's
human resources."

5. What is HRM?
•HRM is concerned with the people’s dimension in the organization
•Facilitating the competencies and retention of skilled force
• Developing management systems that promote commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.

6. HUMAN RESOURCE
MANAGEMENT (HRM)
HRM defined as
“HRM is management function concerned with hiring , motivating and
maintaining people in an organization. It focuses on people in
organization” (Aswathappa, 2008, p.5)
HRM refers to acquisition, retention, motivation and maintenance of
Human Resources in an organization.
HRM is the planning, organising, directing & controlling of the
procurement, development, compensation integration, maintenance and
separation of human resources to the end that individual, organizational
and social objectives are accomplished.

7. HRM: Peoples Dimensions In
Organizations
• HRM: the application of management functions and principles related to
employees
• HRM functions applicable every where (not for profit and profit driven
organizations)
• Employees decisions are integrated
• Employee decision brings effectiveness/efficiency in organization
• HRM includes all major activities in professional life of a worker
• All activities from employee entry to managing performance and training
until he or she leaves

8. HRM Activities
•HR Planning
•Job Analysis and Design
•Recruitment and Selection
•Training and Development
•Remuneration
•Welfare
•Safe and Healthy Work Environment
•Industrial relations

9. Nature of Human Resource Management
1. HRM is based on certain principles and policies contribute to the
achievement of organisational objectives.
2. HRM is a pervasive function – Human resource management is not specific
to an individual department, rather it is a broader function and spread
throughout the organisation, it manages all type of people from lower level to top
level departments of the organisation.
3. HRM is people oriented – People or human resource is the core of all the
activities of human resource management. Human resource management works
with and for people. It brings people and organisation together to
achieve individual and organisational goals.
4. HRM is continuous activity – All factors of production are required to be
continuously updated and improved to cope up with the changes and increased
competition. Similarly, human resource also continuously trained, developed, or
replaced to face the next level of competition. Hence, it is a continuous activity.

10. 5. HRM is a part of management function.
6. HRM aims at securing maximum contribution.
7. HRM aims at optimum use of personnel power.
8. HRM Involves the Application of Management Functions and
Principles.
9.Decision Relating to Employees must be Integrated
10.Decisions Made Influence the Effectiveness of an Organization.
11.HRM Functions are not Confined to Business Establishments Only

11. Scope of Human Resource
Management
1. Personnel Aspect
Human Resource Planning – It is the process by which the organisation
identifies the number of jobs vacant (Quantity+Quality).
Job Analysis and Job Design – Job analysis is the systematic process
for gathering, documenting, and analysing data about the work required
for a job. Job analysis is the procedure for identifying those duties or
behaviour that define a job.
Recruitment and Selection – Recruitment is the process of preparing
advertisements on the basis of information collected from job analysis
and publishing it in newspaper or anywhere else. Selection is the process
of choosing the best candidate among the candidates applied for the job.

12. Orientation and Induction – Making the selected candidate informed
about the organization’s background, culture, values, and work ethics.
Training and Development – Training is provided to both new and
existing employees to improve their performance.
Performance Appraisal – Performance check is done of every
employee by Human Resource Management. Promotions, transfers,
incentives, and salary increments are decided on the basis of employee
performance appraisal.
Compensation Planning and Remuneration – It is the job of Human
Resource Management to plan compensation and remunerate.
Motivation – Human Resource Management tries to keep employees
motivated so that employees put their maximum efforts in work.

13. 2. Welfare Aspect – Human
Resource Management have to
follow certain health and safety
regulations for the benefit of
employees. It deals with working
conditions, and amenities like -
canteens, crèches, rest and lunch
rooms, housing, transport,
medical assistance, education,
health and safety, recreation
facilities, etc.
3. Industrial Relation Aspect –
HRM works to maintain co-
ordinal relation with the union
members to avoid strikes or
lockouts to ensure smooth
functioning of the organisation. It
also covers - joint consultation,
collective bargaining, grievance
and disciplinary procedures,
and dispute settlement.

14. 1. It helps management in the preparation adoption and continuing
evolution of personnel programmes and policies.
2. It supplies skilled workers through scientific selection process
3. It ensures maximum benefit out of the expenditure on training
and development and appreciates the human assets.
4. It prepares workers according to the changing needs of industry
and environment.
5. It motivates workers and upgrades them so as to enable them to
accomplish the organisation goals.
6. Through innovation and experimentation in the fields of
personnel, it helps in reducing casts and helps in increasing
productivity.
7. It contributes a lot in restoring the industrial harmony and healthy
employer-employee relations.
8. It establishes mechanism for the administration of personnel
services that are delegated to the personnel department.
So HRM …

15. Importance of HRM
• Human Resource Management is important to all managers despite their various
functions because of the following reasons-
• Hire the right person for the job
• Low attrition rate
• Ensure people do their best
• Time saved in not conducting useless interviews
• Avoid legal action for any discrimination
• Safety laws are not ignored
• Equity towards employee in relation to salary etc.
• Effective training
• Avoid unfair labor practices

16. Skills Needed for HRM
• The first skill needed is Organization
• Multitask
• A strategic mind-set as an HR professional is a
key skill as well
• Ethics and a sense of fairness are also
necessary in human resources (EMPATHY)
• Guts

17. Why Study HRM?
• Taking a look at people is a rewarding experience
• People possess skills, abilities and aptitudes that offer
competitive advantage to any firm
• No computer can substitute human brain, no machines can run
without human intervention & no organization can exist if it
cannot serve people’s needs.
• HRM is a study about the people in the organization-how they
are hired, trained, compensated, motivated & maintained.

18. HRM & Personnel Management
The Semantics: There are two terms
1. PM (Personnel Management )
2. HRM (Human Resource Management )
• PM and HRM are different in scope and orientation
• HRM is broad concept
• PM and HRD (Human Resource Development) are part of HRM

19. Difference Between HRM and PM
S.No Dimension PM HRM
1 Employment contract Careful dimension of
written contract
Aim to go beyond
contract
2 Rules Importance of devising
clear rules
Impatience with rules
3 Guide to management
action
Procedures Business need
4 Behaviour referent Norms/ customs &
practices
Values/mission
5 Managerial task
vis-à-vis labour
Monitoring Nurturing
6 Key relations Labour Customer
7 Initiatives Piecemeal Integrated
8 Speed of decision Slow Fast

20. S.No Dimension PM HRM
9 Management role Transactional Transformational
10 Communication Indirect Direct
11 Management skill Negotiation Facilitation
12 Selection Separate Integrated
13 Pay Job evaluation Performance related
14 Conditions Separately
negotiated
Harmonisation
15 Labour management Collective
bargaining
contracts
Individual contracts
16 Job categories and
grades
Many Few
17 Job design Division of labour Team work
Difference Between HRM and PM

21. S.No Dimension PM HRM
18 Conflict handling Temporary Climate & culture
19 Training &
Development
Controlled courses Learning
Organization
20 Focus for attention for
interventions
Personnel
procedures
Cultural & structural
strategies
21 Respect for employees Labour – a tool –
expendable &
replaceable
People are assets &
to be used for benefit
of organization
22 Shared interests Organization
interest is
uppermost
Mutuality of interests
23 Evolution Precedes HRM Latest
Difference Between HRM and PM

22. Functions
Functions of HRM include:
• Facilitating the retention of skilled and competent employees
• Building the competencies by facilitating continuous learning and
development
• Developing practices that foster team work and flexibility
• Making the employees feel that they are valued and rewarded for their
contribution
• Developing management practices that endanger high commitment
• Facilitating management of work force diversity and availability of equal
opportunities to all.

23. Functions of HR
MANAGERIAL FUNCTIONS
Planning
Organising
Directing
Controlling
OPERATIVE FUNCTIONS
Staffing
Development
Compensation
Motivation
Maintenance
Integration
Emerging Issues

24. Operative Functions Of HR
STAFFING Job analysis, HRP, Recruitment, Selection,
Placement, Induction, Internal Mobility
DEVELOPMENT Competency profiling, Training and development,
Performance & potential management, Career
management, 360 degree feedback
COMPENSATION &
MOTIVATION
Job design, Work scheduling, Job evaluation,
Compensation administration, Incentives and
benefits
MAINTENANCE Health, Safety, Welfare, Social security
INTEGRATION Employment relations, Grievance, Discipline,
Trade unions, Participation, Collective
bargaining
EMERGING ISSUES HRIS, HR audit, HR scorecard, International
HRM, Workforce Diversity

25. Objectives of HRM
1. Human capital : assisting the organization in obtaining the right number
and types of employees to fulfil 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
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

26. 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
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.

27.  Societal objectives
To be ethically & socially responsible to the needs of the society while
minimizing the negative impact of such demands upon the organization
 Organizational objectives
To recognize the role of HRM in bringing about organizational effectiveness
 Functional objectives
To maintain the department’s contribution at a level appropriate to the organization’s needs
 Personal objectives
To assist employees in achieving their personal goals in a manner that their personal goals
enhance the individual’s contribution to the organization

28. HRM and 3 P’s
• People – core strength of an organization
Any resource can be replaced but not HR
• Processes – evolve over a period of time
IT enabled environment facilitates engineering effortlessly
• Performance – the pillars of performance are people and IT
Organizational performance in terms of value creation and return on investment

29. HRM in the New Millennium
1. HR Can Help in Dispensing Organizational Excellence
2. Human Resource Should be a Strategy Partner
3. HR Accountability Should be Fixed to Ensure Employee Commitment
4. The New HR Must Become a Change Agent
5. Improving the Quality of HR
6. Change in Employment Practices
7. Benchmarking Tool Must be Mastered by HR Professionals
8. Aligning Human Resources to Better Meet Strategic Objectives
9. Promote From Within and Invest in Employees
10. Review the Recruitment and Selection Process
11. Communicate Mission and Vision
12. Use Teams to Achieve Synergy

30. Questions