Today companies are competing in a challenging environment with Globalization, Increased competition, Technological innovation, Slower economic growth. HR managers require competencies to face these new challenges: HR managers –Internal consultants, identifying & institutionalizing changes Shift from transactional services to providing support in decision making. Measuring HR activities in financial terms, Use of technology to support HR are demanded.

1. Introduction to
HRM
Presented By
Dr. N.Renuka Devi
Associate Professor
Department of Bank
Management
Ethiraj College for Women
Chennai

2. Introduction to HRM
Unit I

3. � Human Resources refers to - Staffing function that deals
with people
� Performed by the HR managers for all the departments of
the firm.
� Managing the human resource
� The HR department establishes personnel policies, the
processes of hiring, training, compensating, appraising and
retaining employees, and attending to their labour relations,
health and safety, and equality concerns
� This means acquiring, developing and supporting staff as
well as ensuring they fulfill their role at work
What is HR?

4. � ‘The Policies and practices in carrying out
the “people” or human resource aspects of a
management position including, recruiting, screening,
training, rewarding and appraising.’ (Dessler G)
� The Charted Institute of Personnel Management
“ The design, implementation and maintenance
of strategies to manage people for optimum business
performance including the development of policies and
process to support these strategies.”
Define HRM

6. � Conducting job analysis
� Planning labour needs
� Selecting job candidates
� Orienting & training new employees
� Managing wages & salaries
� Providing incentives & benefits
� Appraising performance
� Communicating (counseling, disciplining)
� Training & developing managers
� Building employee commitment
HRM Functions

7. � Training and Developing managers
� Building employee commitment
And what a HRM Manger should know about
- Equal opportunity and affirmative action
- Employee health and safety
- Handling grievances and labour relations
Cont.

8. � Personnel Management is ‘workforce’ centred
� HR is resource centred
� Does not identify with Management interests
� Directed at management needs for deployment
� People have the right to proper ‘treatment’
� Focus is on individuals and needs and potential
� Intervene between manager - subordinate relationships
� Planning, monitoring and control rather than mediation
Personnel Management Vs Human
Resource Management

9. � The 1980’s and 90’s saw ‘Human Resource
Management’(HRM) replace ‘Personnel Management’
◦ fashionable term
◦ re-organisation of work of personnel department
◦ distinctively different with new management approach
� Long term rather than short term perspective
� Psychological contract of commitment
� Self-control rather than external controls
� Management integration
� Maximum utilisation of resource
Introduction to HR

10. Trends shaping HRM
Environment Organization
� Globalization
� Increased competition
� Deregulation & increased
indebtedness
� Technological innovation
� More high-tech jobs
� More service jobs
� More knowledge work
� Aging workforce
� Slower economic growth
� More competitive
� (Extended sales)
� Forming patnerships
� More cost-effective
� Human-capital oriented
� Quality conscious
� Downsized
� Organized flatter (fewer
layers)
� Empowered teams

11. � Staff are the largest revenue cost of any organisation.
� Staff are a volatile resource, they can leave you any time.
� Staff are a store of corporate knowledge and the means of
service delivery.
� Retaining and developing good staff allows you to use skills
and develop as a business.
� Individuals should contribute more than they cost.
� In the industry customer care critical and delivered by staff as
representatives.
Why is it Important?

12. � Hiring wrong person for job
� Experience high turnover
� Employees not doing their best
� Waste time with useless interviews
� Company sued for discriminatory charges
� Company cited under occupational safety laws for
unsafe practices & accidents
� Unfair salaries to some employees relative to others in
organization
� Unfair labor practices
Why is HRM important to all
managers??
- Some Personnel mistakes.. Eg

13. � Today companies are competing in a challenging environment with
Globalization,
Increased competition, Technological innovation
Slower economic growth.
� HR managers require competencies to face these new challenges:
❑ HR managers –Internal consultants, identifying & institutionalizing
changes
❑ Shift from transactional services to providing support in decision
making
❑ Measuring HR activities in financial terms
❑ Use of technology to support HR
– Web portals (manage their own benefits and update personal
information)
- Electronic signatures, - Electronic bill presentment & payment, -
Streaming desktop vedio.
Important Trends In HRM

14. Internal Inter-linked components:
Mission and
Strategy
Organisation Human Resource
Structure management
External forces:
Political forces Economic forces Cultural forces
Devanna et al., 1984
Emphases the ‘tight fit’ between HR strategy and business strategy
The Matching Model of HRM

15. � Traditional function – Welfare & managing labour relations.
After Independence labour laws were introduced.
� 1985 -1995 - HR function gained a strategic focus. With
industry , Globalization there was high demand for talented
people.
� 2008 – 2009 - Economic recession – Different HRM
approaches were adopted to cope with troubled times.
� (Recruitment freeze, Slashed budgets for training, Cutting
down on benefits, Compensation reduction and Downsizing
/ Job losses.)
HRM in India

16. � India’s rigid social hierarchies / social stratification are
intertwined with longstanding quasi-religious principles.
� Hierarchical norms define the types of occupations into which
a person might enter, as well as the conditions of employment
she may expect to encounter
� E Quotas to radicate employment discrimination - 49.5 % of
positions in higher education and government employment are
reserved for members of the scheduled and backward classes,
1/3of the seats in municipal (local) governments for female
candidates.
� In India, no EEO laws except " The Equal Remuneration
Act, 1973"(for woman) and " The Employment Exchanges
( Compulsory Notification of Vaccancies) Act, 1959.
Equal Employment opportunity

17. � In India, no EEO laws except " The Equal
Remuneration Act, 1973"(for woman) and " The
Employment Exchange ( Compulsory Notification
of Vaccancies) Act, 1959.
� Equal Remuneration Act of 1976
- guarantees women equal treatment relative to men in
the workplace.
- forbids discrimination in hiring, pay and conditions
of employment between male and female workers
engaged in the same or similar work
� The Employment Exchanges Act of 1959
- employer in every establishment in public sector in
that state or area shall, before filling up any vacancy in
any employment in that establishment, notify that
vacancy to such employment exchanges

18. � Job analysis – procedure to determine duties of
various positions and desired characteristic of
people to hire.
Job Analysis
Job description Job specifiation
� Job description – List of job entails
� Job specification – What kind of people to hire for
job?
Job Analysis
JOB ANALYSIS
JOB
DESCRIPTION
JOB SPECIFICATION

20. � Work activities – How ? When ? Why ? The worker
performs each activities.
� Human behaviors
� Machines, Tools, Equipment, Work aids used
� Performance standards
� Job context – Working conditions, work schedule,
number of people, incentives
� Human requirements – Job related knowledge or skill
(education, training, work experience)
- Required personal attributes (personality, interest,
physical characteristics)
Job Analysis - Information

21. � Recruitment & Selection
� Compensation
� Training
� Performance Appraisal
� Discovering unassigned duies
Use of Job analysis information

22. � Job title
� Location of job
� Materials, tools, machinery & equipment worked with
� Designation of immediate superior & subordinates
� Salary levels: Pay, D.A, other allowances, hours of
work, method of payment, shift & break
� Complete list of duties- daily, weekly, monthly &
casual
� Conditions of work- time, speed, accuracy, health &
accident hazards
� Training & development facilities
� Promotional chances & channels
Job Description - Contents

23. � Physical specifications- Height, weight, vision, age,
capacity to use machines
� Mental specifications- Interpret, calculate, scientific
judgments, read electric circuits, memory, ability to
plan , general intelligence
� Emotional & social specifications- Social
adaptability, emotional stability, flexibility
� Behavioral specifications- Self reliance, dominance,
creativity, research, teaching ability
Job Specification

24. � Interview
� Questionnaires
� Observation
� Participants diary / logs
� Position Analysis Questionnaire
❑ Having decision making/ Communication/ social
responsibilities
❑ Performing skilled activities
❑ Operating vehicles/ equipment's
❑ Being physically active
❑ Processing information
Techniques of data collection for Job
analysis

25. � Human Recourse planning means deciding the number
and type of human recourses required for each job, unit
and the total company for a future date.
� Factors affecting Human Resources plan
Manpower Planning
External factors Internal factors
Government policies Strategies of the
company
Level of economic
development
Human recourses policy
Business environment Job analysis
Information technology Time horizons
International factors Company’s production
policy
Trade unions

26. 26
Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning
Human Resource Planning
Forecasting
Human
Resource
Requirements
Comparing
Requirements
and Availability
Forecasting
Human Resource
Availability
Surplus of
Workers
Demand =
Supply
No Action Restricted Hiring,
Reduced Hours,
Early Retirement,
Layoff, Downsizing
Shortage of
Workers
Recruitment
Selection

27. � Analyze corporate and unit level Strategies
� Demand Forecasting – in accordance with
organizational plans
� Supply Forecasting – is present inventory of human
resource
� Estimating : Net Human Resource Requirement
� If future surplus – plan for redeployment , retrenchment
or layoff
� If future deficit – forecast supply of human resource
from all sources
� Plan recruitment, development & internal mobility – if
surplus or demand =supply
� Modify or adjust organization strategy if supply is
inadequate
Techniques of HRP

28. Demand Forecasting – Methods
▪ Managerial judgment
▪ Statistical techniques – Ratio – trend analysis,
econometric models
▪ Work study techniques
Supply Forecasting
▪ Existing inventory, Job family inventory, Age inventory
Existing inventory at future date
= Present inventory as on today + Potential additions –
Potential losses

29. Supply Forecasting

31. � An HRIS, which is also known as a human
resource information system or human
resource management system (HRMS).
� HRIS is an intersection of human resources
and information technology through a HR
software solution. This allows HR activities
and processes to occur electronically.
Human Recourse Information
System - (HRIS)

32. I - Transaction Processing System
II- Management Information System (MIS)
III- Executive Support System
IV- HRIS
Levels of Information System

33. � Improving Transaction Processing
� Online Self- Processing
� Improving Reporting Capability
� HR System Integration
Reasons for HRIS

34. ❖ HR is a product of the human relations movement of the early
20th century, when researchers began documenting ways of
creating business value through scientific management.
� The function was initially dominated by transactional work, such
as payroll and benefits administration, but due to globalization,
company consolidation, technological advancement, and further
research, HR now focuses on strategic initiatives like mergers
and acquisitions, talent management, succession planning,
industrial and labor relations, and diversity.
� In startup companies, HR's duties may be performed by trained
professionals.
� In larger companies, an entire functional group specializing in
various HR tasks and functional leadership, such as: - Recruiters,
Welfare officers, Job analyst, Compensation managers, Training
specialists
Evolution and Growth of HRM

35. � Mobile Working at IBM
Flexible work schedules and the option of working from home.
Some of IBM's workplace flexibility programmes include
- individualized daily work schedules,
- flexible (or compressed) work-weeks, regular part-time,
remote/mobile work options and mobility allowances.
- Employees are offered support services so that even if they
work from home, they stay connected. Be it downloading
files, checking and replying to mail, or linking to the
electronic library, IBM workers can dial into the IBM
network and get connected.
Examples

36. HR and the Well-Being of Employees
� One of the HR policies really appreciated by employees is that
pertaining to their families’ health and safety.
� Providing life insurance and accident coverage that will help
reassure their employees and give them a sense of security.
� Infosys is a good example. Starting from 2002, it has a tie-up
with the Life Insurance Corporation of India that provides
adequate coverage for all its employees.
� In 2008, the coverage amount was a record-breaking Rs.
240,000 million. As Mohandas Pai, the HR head of Infosys, said,
“Infosys believes in providing adequate life, accident and medical
insurance cover to its employees in a holistic measure.”