Human Resource

Management
 Topics

• Introduction,
• Importance,
• Scope and Objectives,
• Evolution,
• Line and Staff aspects of HRM

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 The Management Process

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 HUMAN RESOURCE MANAGEMENT

• HUMAN
• RESOURCE
• MANAGEMENT

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 Nature of HRM

• Pervasive force
• Action oriented
• Individually oriented
• People oriented
• Future oriented

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 Nature of HRM

• Development oriented
• Integrating mechanism
• Comprehensive function
• Auxiliary service
• Inter-disciplinary function
• Continuous function

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 Hard and Soft HRM

• ‘Hard’ HRM focuses on the resource side of human resources. It

emphasizes costs in the form of ‘headcounts’ and places control firmly in
the hands of management.
• ‘Soft’ HRM focuses on , the ‘human’ aspect of HRM. Its concerns are with
communication and motivation.

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 Human Resource Management (HRM) and
Human Resource Development (HRD)
• HRD is a sub section of HRM, i.e. HRD is a section with the department
of HRM.
• HRM deals with all aspects of the human resources function while HRD
only deals with the development part.
• HRM is concerned with recruitment, rewards among others while HRD is
concerned with employee skills development.
• HRM functions are mostly formal while HRD functions can be informal
like mentorships

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 HRM and Personnel Management

• Personnel management is a traditional approach of managing people in the

organization. Human resource management is a modern approach of
managing people and their strengths in the organization.
• Personnel management focuses on personnel administration, employee
welfare and labor relation. Human resource management focuses on
acquisition, development, motivation and maintenance of human resources
in the organization.
• Personnel management assumes people as a input for achieving desired
output. Human resource management assumes people as an important and
valuable resource for achieving desired output.

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 HRM and Personnel Management

• Under personnel management, personnel function is undertaken for

employee's satisfaction. Under human resource management,
administrative function is undertaken for goal achievement.
• Under personnel management, job design is done on the basis of division
of labor. Under human resource management, job design function is done
on the basis of group work/team work.
• Under personnel management, employees are provided with less training
and development opportunities. Under human resource management,
employees are provided with more training and development opportunities.

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 HRM and Personnel Management
• In personnel management, decisions are made by the top management as
per the rules and regulation of the organization. In human resource
management, decisions are made collectively after considering employee's
participation, authority, decentralization, competitive environment etc.
• Personnel management focuses on increased production and satisfied
employees. Human resource management focuses on effectiveness, culture,
productivity and employee's participation.
• Personnel management is concerned with personnel manager. Human
resource management is concerned with all level of managers from top to
bottom.
• Personnel management is a routine function. Human resource management
is a strategic function.

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 Human Resource Management

• Human Resource Management is the process of recruitment and selecting

employee, providing orientation and induction, training and development ,
assessment of employee (performance of appraisal), providing compensation
and benefits, motivating, maintaining proper relations with employees and with
trade unions, maintaining employees safety, welfare and healthy measures in
compliance with labour laws of the land.

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 Employment / Labour Laws in India

• Workmen's Compensation Act, 1923

• Factories Act, 1948
• Payment of Gratuity Act, 1972
• Gratuity withdrawal form I
• Payment of Wages Act, 1936
• Trade Union Act, 1926
• Industrial Disputes Act, 1947
• Lockout (Industry)
• Layoff / Laid off and Retrenchment
• Labour Courts for disputes in India
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 Employment / Labour Laws in India

• Employee State Insurance Act, [ESI] 1948

• Payment of Bonus Act, 1965
• Employees' Provident Fund Scheme, 1952.
• Child Labour (Prohibition & Regulation) Act, 1986
• Contract Labour (Regulation and Abolition) Act, 1970
• Industrial employment (standing orders) Act, 1946)
• Maternity Benefit Act,1961 (with latest amendments)
• Maternity leave laws
• Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013
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 Definitions

• Edwin Flippo defines- HRM as “planning, organizing, directing,

controlling of procurement, development, compensation, integration ,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.”

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 Definitions

• The National Institute of Personal Management (NIPM) of India has

defined human resources – personal management as “that part of
management which is concerned with people at work and with their
relationship within an enterprise.
• Its aim is to bring together and develop into an effective organization of the
men and women who make up enterprise and having regard for the well –
being of the individuals and of working groups, to enable them to make
their best contribution to its success”.

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 Definitions

• According to Decenzo and Robbins, “HRM is concerned with the people

dimension” in management.
• Since every organization is made up of people, acquiring their services,
developing their skills, motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment to the
organization is essential to achieve organsational objectives.
• This is true, regardless of the type of organization – government, business,
education, health or social action”.

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 Human Resource management includes
• Conducting Job Analyses,
• Planning Personnel Needs, And Recruitment,
• Selecting The Right People For The Job,
• Orienting And Training,
• Determining And Managing Wages And Salaries,
• Providing Benefits And Incentives,
• Appraising Performance,
• Resolving Disputes,
• Communicating With All Employees At All Levels.
• Maintaining Awareness Of And Compliance With Local, State And Federal Labor
Laws.
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 Importance of HRM

• Good HR Practices help

• 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
• generate employment opportunities
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 HRM as a central subsystem

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 Strategic role of Human Resource Management

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 Strategic Human Resource Management

• Realising the growing importance of HR, a new line of thinking emerged

elevating the status of HR to that of a strategic partner both in the
formulation of a firm’s strategic as well as in the implementation of
business activities.
• SHRM, simply stated, is the linkage of HRM with strategic goals and
objectives with a view to improve business performance and develop
organisational cultures that foster innovation and flexibility.
• Strategic HR differs radically from traditional HR in a number of ways:

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 Key responsibilities of Human Resource Manager

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 Scope of HRM

• HRM mainly covers three broad areas

• Personnel aspect
• Welfare aspect
• Industrial relations aspect

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 HRM in Personnel Management

• This is typically direct manpower management that involves manpower

planning, hiring (recruitment and selection), training and development,
induction and orientation, transfer, promotion, compensation, layoff and
retrenchment, employee productivity.
• The overall objective here is to ascertain individual growth, development
and effectiveness which indirectly contribute to organizational development.
• It also includes performance appraisal, developing new skills, disbursement
of wages, incentives, allowances, traveling policies and procedures and
other related courses of actions.

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 HRM in Employee Welfare

• This particular aspect of HRM deals with working conditions and

amenities at workplace.
• This includes a wide array of responsibilities and services such as safety
services, health services, welfare funds, social security and medical services.
• It also covers appointment of safety officers, making the environment worth
working, eliminating workplace hazards, support by top management, job
safety, safeguarding machinery, cleanliness, proper ventilation and lighting,
sanitation, medical care, sickness benefits, employment injury benefits,
personal injury benefits, maternity benefits, unemployment benefits and
family benefits.

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 HRM in Industrial Relations

• Since it is a highly sensitive area, it needs careful interactions with labor or

employee unions, addressing their grievances and settling the disputes
effectively in order to maintain peace and harmony in the organization.
• It is the art and science of understanding the employment (union-
management) relations, joint consultation, disciplinary procedures, solving
problems with mutual efforts, understanding human behavior and
maintaining work relations, collective bargaining and settlement of
disputes.

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 Objectives of HRM

• To help the organisation reach its goals

• To employ the skills and abilities of the workforce efficiently
• To provide the organisation with well trained and well motivated employees
• To increase to the fullest the employees job satisfaction and self-
actualisation
• To develop and maintain a quality of work life
• To communicate HR policies to all employees
• To be ethically and socially responsive to the needs of society

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 Societal objective

• To be socially responsible to the needs and challenges of society while

minimizing the negative impact of such demands upon the organization.
• The failure of organizations to use their resources for society's benefit may
result in restrictions.
• For example, societies may pass laws that limit human resource decisions.

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 Organizational objective

• To recognize that HRM exists to contribute to organizational effectiveness.

• HRM is not an end in itself; it is only a means to assist the organization with
its primary objectives.
• Simply stated, the department exists to serve the rest of the organization.

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 Functional objective

• To maintain the department's contribution at a level appropriate to the

organisation's needs.
• Resources are wasted when HRM is more or less sophisticated than the
organisation demands.
• A department's level of service must be appropriate for the organisation it
serves.

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 Personal objective

• To assist employees in achieving their personal goals, at least insofar as

these goals enhance the individual's contribution to the organisation.
• Personal objectives of employees must be met if workers are to be
maintained, retained and motivated.
• Otherwise, employee performance and satisfaction may decline, and
employees may leave the organisation.

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 HRM in the new millennium

• Size of work force

• Composition of workforce
• Employee expectations
• Changes in technology
• Life style changes
• Environmental challenges

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 HRM in the new millennium

• Personnel function in future

• Job redesign
• Career opportunities
• Productivity
• Recruitment and selection
• Training and development
• Rewards
• Safety and welfare
• Changes in 21st century affecting HRM

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 The Changing Environment of Human Resource
Management

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 The Changing Role of Human Resource Management

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 High-Performance Work System Practices
• Employment security
• Selective hiring
• Extensive training
• Self-managed teams/decentralized decision making
• Reduced status distinctions
• Information sharing
• Contingent (pay-for-performance) rewards
• Transformational leadership
• Measurement of management practices
• Emphasis on high-quality work
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 Benefits of a High-Performance Work System

• Generate more job applicants

• Screen candidates more effectively
• Provide more and better training
• Link pay more explicitly to performance
• Provide a safer work environment
• Produce more qualified applicants per position
• Hiring based on validated selection tests
• Provide more hours of training for new employees
• Conduct more performance appraisals

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 Authority

• Authority is the right to make decisions, to direct the work of others, and to
give orders.
• Authority refers to the rights inherent in a managerial position to give orders
and expect the orders to be obeyed.

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 Types of Authority

• Line Authority
• Staff Authority
• Functional Authority

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 Line and Staff

• A "line function" is one that directly advances an organization in its core

work. This always includes production and sales, and sometimes also
marketing.
• A "staff function" supports the organization with specialized advisory and
support functions. For example, human resources, accounting, public
relations and the legal department are generally considered to be staff
functions

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 Line position
• A line position is directly involved in the day-to-day operations of the
organization, such as producing or selling a product or service. Line positions are
occupied by line personnel and line managers. Line personnel carry out the
primary activities of a business and are considered essential to the basic
functioning of the organization.
• Line managers make the majority of the decisions and direct line personnel to
achieve company goals. An example of a line manager is a marketing executive.
• Although a marketing executive does not actually produce the product or service,
he or she directly contributes to the firm's overall objectives through market
forecasting and generating product or service demand. Therefore, line positions,
whether they are personnel or managers, engage in activities that are functionally
and directly related to the principal workflow of an organization.

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 Staff positions

• Staff positions serve the organization by indirectly supporting line

functions. Staff positions consist of staff personnel and staff managers.
Staff personnel use their technical expertise to assist line personnel and aid
top management in various business activities. Staff managers provide
support, advice, and knowledge to other individuals in the chain of
command.
• Although staff managers are not part of the chain of command related to
direct production of products or services, they do have authority over
personnel. An example of a staff manager is a legal adviser. He or she does
not actively engage in profit-making activities, but does provide legal
support to those who do. Therefore, staff positions, whether personnel or
managers, engage in activities that are supportive to line personnel.
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 Functional Authority

• Functional authority is referred to as limited line authority.

• It gives a staff person power over a particular function, such as safety or
accounting.
• Usually, functional authority is given to specific staff personnel with
expertise in a certain area.
• For example, members of an accounting department might have authority
to request documents they need to prepare financial reports, or a human
resource manager might have authority to ensure that all departments are
complying with equal employment opportunity laws.
• Functional authority is a special type of authority for staff personnel, which
must be designated by top management.
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 LINE-AND-STAFF CONFLICT

• Due to different positions and types of authority within a line-and-staff

organization, conflict between line and staff personnel is almost inevitable.
• Although minimal conflict due to differences in viewpoints is natural,
conflict on the part of line and staff personnel can disrupt an entire
organization.
• There are many reasons for conflict.
• Poor human relations, overlapping authority and responsibility, and misuse
of staff personnel by top management are all primary reasons for feelings
of resentment between line and staff personnel.
• This resentment can result in various departments viewing the organization
from a narrow stance instead of looking at the organization as a whole.
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 LINE-AND-STAFF CONFLICT

• Fortunately, there are several ways to minimize conflict.

• One way is to integrate line and staff personnel into a work team.
• Another solution is to ensure that the areas of responsibility and authority
of both line and staff personnel are clearly defined. With clearly defined
lines of authority and responsibility, each group may better understand
their role in the organization.
• A third way to minimize conflict is to hold both line and staff personnel
accountable for the results of their own activities.

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 Human Resource Managers’ Duties

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 Merits of Line and Staff Organization

• Relief to line of executives

• Expert advice
• Benefit of Specialization
• Better co-ordination
• Benefits of Research and Development
• Training
• Balanced decisions
• Unity of action

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 Demerits of Line and Staff Organization

• Lack of understanding
• Lack of sound advice
• Line and staff conflicts
• Costly
• Assumption of authority
• Staff steals the show

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 Trends Shaping Human Resource Management

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 Trends Shaping Human Resource Management

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