Human resource management (HRM) refers to the policies, practices, and systems that influence employee behavior, attitudes, and performance. The goal of HRM is to make workers more satisfied and productive by effectively managing people at work. Companies with effective HRM tend to be more innovative, have greater productivity, and develop a more favorable reputation. HRM aims to engage employees in activities that produce behaviors needed for the company to achieve its strategic goals.

1. INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT

2. HUMAN RESOURCE MANAGEMENT
(HRM)
 The policies, practices,
and systems that influence
employees:
 behavior
 attitudes
 performance

3. What is Human Resource Management?
 Human resource (HR) management
 refers to the practices and policies one needs to carry
out to deal with the personnel aspects of the
management job
 Human resource management (HRM) is the effective
management of people at work
 The goal: make workers more satisfied and
productive
 When an organization is concerned about people, its
total philosophy, culture, and orientation reflect it
 Every manager must be concerned with people,
whether or not there is a human resources department

4. AT COMPANIES WITH EFFECTIVE HRM:
 Employees and customers tend to be more satisfied.
 The companies tend to:
 be more innovative
 have greater productivity
 develop a more favorable reputation in the community

5. Basic HR Concepts
 The bottom line of managing:
Getting results
 HR creates value by engaging in
activities that produce the
employee behaviors that the
company needs to achieve
its strategic goals.

6. HRM concepts
People Management
The policies and practice which govern
how people are managed and
developed in organizations
Human Capital Management
An approach to obtaining, analyzing
and reporting on data which informs
the direction of value adding people
management strategic investment and
operational decisions at corporate
level and at the level of front line
management
Human Resources Management
The strategic and coherent approach
to the management the most of
organization’s most valued assets –
the people working there who
individually and collectively contribute
to the achievements of its objectives
Personnel Management
Personnel mmanagement is
concerned with obtaing, organizing
and motivating human resources
required by enterprise

7. HRM AND SUSTAINABLE COMPETITIVE
ADVANTAGE
 An organization can succeed if it has sustainable
competitive advantage.
 Human resources have the necessary qualities to help give
organizations this advantage:
 Human resources are valuable.
 Human resources with needed skills and and knowledge are
sometimes rare.
 Human resources cannot be imitated.
 Human resources have no good substitutes.

8. Scope of HRM

9. Importance of HRM
 attract and retain talent
 train people for challenging roles
 develop skills and competencies
 promote team spirit
 develop loyalty and commitment
 increase productivity and profits
 improve job satisfaction
 enhance standard of living
Good HR Practices help

10. The New Role of HR Managers
STRATEGIC PARTNER
 HR professionals play a strategic role when they have the ability to
translate business strategy into action. This facilitating role allows the
HR manager to become part of the business team.
ADMINISTRATIVE EXPERT
 To become administrative experts HR professionals must be able to re-
engineer HR activities through the use of technology, process
engineering and total quality management.
EMPLOYEE CHAMPION
 The HR professional must be able to relate to and meet the needs of
employees
CHANGE AGENT
 The HR manager needs to serve as a catalyst for change within the
organisation. This can be achieved by leading change in the HR function
and by developing problem-solving communication and influence skills.
In short, the HR manager must know how to manage change.

11. Personnel Aspects of a Manager’s Job
 Conducting job analyses
 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries
 Providing incentives and benefits
 Appraising performance
 Communicating
 Training and developing managers
 Building employee commitment

12. SKILLS OF HRM PROFESSIONALS

13. Personnel Mistakes
 Hire the wrong person for the job
 Experience high turnover
 Have your people not doing their best
 Waste time with useless interviews
 Have your company in court because of discriminatory actions
 Have some employees think their salaries are unfair and inequitable
relative to others in the organization
 Allow a lack of training to undermine your department’s effectiveness
 Commit any unfair labor practices

14. Image and Quality of
HR/Personnel Manager
 Fairness and firmness
 Tact and resourcefulness
 Sympathy and consideration
 Knowledge of labor and other terms
 Broad social outlook
 Others and Academic qualifications

15. Myths that keep HR from being a profession
Old Myths
 People go into HR because they
like people.
 Anyone can do HR.
New Realities
HR departments are not designed
to provide corporate therapy or to
act as social or health-and-
happiness retreats. HR
professionals must create the
practices that make employees
more competitive, not more
comfortable.
HR activities are based on theory
and research. HR professionals
must master both theory and
practice.

16. Old Myths
 HR deals with the soft side of
business and therefore is not
accountable.
 HR focuses on costs, which
must be controlled.
New Realities
The impact of HR practices on
business results can and must be
measured. HR professionals must
learn to translate their work into
financial performance.
HR practices must create value by
increasing the intellectual capital
within the firm. HR professionals
must add value, not only reduce
costs.

17. Old Myths
 HR’s job is to be the policy police
and the health-and-happiness
patrol.
 HR is full of fads.
New Realities
The HR function does not own
compliance.
HR practices have evolved over
time. HR professionals must
see their current work as part of
an evolutionary chain and
explain their work with less
jargon and more authority.

18.  Old Myths
 HR is staffed by nice
people.
 HR is HR’s job.
New Realities
At times, HR practices should force
vigorous debates. HR professionals
should be confrontative and
challenging as well as supportive.
HR work is as important to line
managers as are finance, strategy, and
other business domains. HR
professionals should join with
managers in championing HR issues.

19. Functions of HRM
– Planning
– Organizing
– Directing
– Controlling
Operative Functions
P/HRM
Managerial
functions:
Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal
mobility
Development:
Training
Executive
development
Career
planning
Succession
planning
Human
resources
development
strategies
Motivation and
Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services
Maintenance:
Health
Safety
Welfare
Social security
Integration:
Grievances
Discipline
Teams and
teamwork
Collective
bargaining
Participation
Empowerment
Trade unions
Employers’
associations
Industrial
relations
Emerging
Issues:
Personnel
records
Personnel
audit
Personnel
research
HR
accounting
HRIS
Job stress
Mentoring
International
HRM

20. HRM as a central subsystem in an
organization
Product
Subsystem
HR Subsystem
Procurement
Training
Compensation
Appraisal
Rewards
Marketing
Subsystem
Finance
Subsystem
Technical
Subsystem

21. A Brief History of HRM
 HRM can be traced to England, where craftspeople
organized guilds
 They used unity to improve working conditions
 The Industrial Revolution in the 18th century laid the
basis for a new, complex industrial society
 Changing work conditions, social patterns, and labor
created a gap between workers and owners
 During the world wars era, scientific management,
welfare work, and industrial psychology merged

22. A Brief History of HRM
 Frederick W. Taylor, the father of scientific
management, summarized scientific management as:
 Science
 Harmony
 Cooperation
 Maximum output
 Industrial psychology, initiated in 1913, focused on:
 The worker
 Individual differences
 The maximum well being of the worker

23. A Brief History of HRM
 Personnel departments were created to deal with:
 Drastic changes in technology
 Organizational growth
 The rise of unions
 Government intervention
concerning working people
 Around the 1920s, more organizations
noticed and acted on employee-management conflict

24. A Brief History of HRM
 The Hawthorne studies (1924 to 1933):
 Were to determine the effects of
illumination on workers and their output
 Rather, it pointed out the importance of
social interaction on output and satisfaction
 Until the 1960s, the personnel function was concerned
only with blue-collar employees
 File clerk, house-keeper, social worker, firefighter, and
union trouble defuser

25. Evolution of the Personnel Function
Concept What is it all about?
The Commodity
concept
Labour was regarded as a commodity to be bought and sold.
Wages were based on demand and supply. Government did
very little to protect workers.
The Factor of
Production concept
Labour is like any other factor of production, viz, money,
materials, land, etc. Workers are like machine tools.
The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room will
have a positive impact on workers’ productivity
The Paternalistic
concept/ Paternalism
Management must assume a fatherly and protective attitude
towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.
Cont…

26. The Humanitarian
concept
To improve productivity, physical, social and psychological
needs of workers must be met. As Mayo and others stated,
money is less a factor in determining output, than group
standards, group incentives and security. The organization is a
social system that has both economic and social dimensions.
The Human Resource
concept
Employees are the most valuable assets of an organization.
There should be a conscious effort to realize organizational goals
by satisfying needs and aspirations of employees.
The Emerging concept Employees should be accepted as partners in the progress of a
company. They should have a feeling that the organization is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.
Evolution of the Personnel Function

27. Personnel Function in India;
Changing Scenario
Period Emphasis Status Roles
1920 – 30 Welfare management Clerical Welfare
Paternalistic practices administrator
1990s – Incremental productivity Proactive, Developer
onwards gains through human growth-oriented Counsellor
assets Coach
Mentor
Problem solver
1940 – 60 Expanding the role to cover Administrative Appraiser
Labour, Welfare, Industrial Advisor
Relations and Personnel Mediator
Administration Legal advisor
Fire fighting
1970 – 80 Efficiency, effectiveness Developmental Change agent
dimensions added Integrator
Emphasis on human Trainer
values, aspirations, Educator

28. Objectives of HRM

29. Objectives of the HRM Function
 HRM contributions to organizational effectiveness:
 Helping the organization reach its goals
 Employing workforce skills and abilities efficiently
 Increasing job satisfaction, self-actualization, and
quality of work life
 Communicating HRM policies to all employees
 Maintaining ethical policies and socially responsible
behavior
 Managing change to the mutual advantage of
individuals, groups, the enterprise, and the public

30. Objectives of the HRM Function
 Increasing employees’ job satisfaction and self-
actualization
 Employees must feel that the job is right for their
abilities and that they are being treated equitably
 Satisfied employees are not automatically more
productive
 However, unsatisfied employees tend to be absent
and quit more often and produce lower-quality work
 Both satisfied and dissatisfied employees can perform
equally in quantitative terms

31. Objectives of the HRM Function
 Quality of work life (QWL) is a general concept that
refers to several aspects of the job, including:
 Management and supervisory style
 Freedom and autonomy to make decisions on the job
 Satisfactory physical surroundings
 Job safety
 Satisfactory working hours
 Meaningful tasks
 The job and work environment should be structured to
meet as many workers’ needs as possible

32. Objectives of the HRM Function
 Communicating HRM policies to
all employees:
 HRM policies, programs, and procedures must be
communicated fully and effectively
 They must be represented to outsiders
 Top-level managers must understand what HRM can
offer

33. Objectives of the HRM Function
 Maintaining ethical policies and socially responsible
behavior:
 HRM managers must show by example that HRM
activities are fair, truthful, and honorable
 People must not be discriminated against
 Their basic rights must be protected
 These principles should apply to all activities in the
HRM area

34. Objectives of the HRM Function
 Managing increased urgency and faster cycle times:
 Firms are placing a growing emphasis on:
 Increasing customer service
 Developing new products and services
 Training and educating technicians, managers,
and decision makers
 Shorter cycle times mean less time to:
 Train, educate, and assign managers
 Recruit and select talented people
 Improve the firm’s image
 Learning provides a framework for decreasing
cycle time

35. HRM’s Place in Management
 The HR department must be a proactive, integral part
of management and strategic planning
 Ascertain specific organizational needs for the
use of its competence
 Evaluate the use and satisfaction among other
departments
 Educate management and employees about the
availability and use of HRM services
 HRM strategic plans must build on the firm's strengths

36. Trends Shaping Human Resource Management