HUMAN RESOURCE MANAGEMENT

•Definition
•Human resource strategy
•Strategic Human resource
Management
•Scope
•Importance
•Objectives
•Functions
•Roles
•Activities
•HRM Model
•Organizational structure
•Challenges
 Definitions
• Institute of Personnel Management, London, UK: “Personnel
Management is that part of management concerned with people at
work and with their relationship into an effective organisation; the men
and women who make up an enterprise and having regard for the
well-being of the individual and of working groups, to enable them to
make their best contribution to its success.”

• National Institute of Personnel Management , Calcutta, India:

“Personnel management, Labour management or Staff management
means quite simply the task of dealing with human relationships
within an organisation. Academically the three aspects of Personnel
Management are: a) Welfare aspect, concerned with working
conditions and amenities. b) Labour or Personnel aspect, concerned
with recruitment placement- - c) Industrial relations aspect concerned
with trade unions, negotiation--- .
 Definition - HRM
HRM is a process of bringing people and organisations together so
that the goals of each are met. It tries to secure the best from
people by winning their wholehearted cooperation.

“It is the art of procuring, developing and maintaining competent

workforce to achieve the goals of an organization in an effective
and efficient manner.”

Invancevich & Glueck, “ HRM is concerned with the most effective

use of people to achieve organisational and individual goals. It is
the way of managing people at work, so that they give their best
to the organization.”
 Features -HRM
• Pervasive force: It permeates all levels of mgmt. in an
organization.
• Action Oriented: Attention on action, rather than record
keeping, written procedures and rules.
• Individually oriented: It motivates employees through a
systematic process of recruitment, selection, training and
development coupled with fair wage policies.
• People Oriented: It is all about people, both as
individuals and groups.
• Development Oriented: Intends to develop the full
potential of employees.
• Integrating mechanism: It integrates human assets in
the best possible manner in the service of an org.
 Features -continues
• Comprehensive function: It is concerned with any
organizational decision which has an impact on the
workforce or the potential workforce.
• Auxiliary service: It exist to assist and advise the line or
operating managers to perform effectively. It is a staff
function.
• Inter-disciplinary function: It is multi-disciplinary
activity, utilising knowledge and inputs drawn from
psychology, sociology, anthropology, economics, etc.
• Continuous function: It requires to be constant, alert
and aware of human relations in an org.
 Objectives - HRM
• Help the organization reach its goals:
• Employ the skills and abilities of the workforce efficiently.
• Provide the organizations with well-trained and well-
motivated employees
• Increase to the fullest the employee’s job satisfaction and
self-actualisation.
• Develop and maintain a quality of work life.
• Communicate HR policies to all employees
• Maintain ethical policies and behaviour.
Thus, 1)Attain economically and effectively the
organizational goals.
2) Serve to the highest possible degree the individual
goals.
3) Preserve and advance the general welfare of the
community.
 Differences
Dimensions –Beliefs & assump Personnel & IR HRM

Contract Delineation of written Go beyond contract

contracts
Rules
Devising clear rules/ Can- do outlook –
Mutuality Impatience with rule
Guide to mgt. action
Procedures Business need

Behaviour referent Norms / custom Values/ mission

& practice

Managerial task Monitoring Nurturing

Nature of relations Pluralist Unitarist

Conflict Institutionalized De-emphasised

 Differences
Dimensions –Strategic aspects Personnel & IR HRM

Key relations Labour Mgmt.

Customer

Initiatives Piece meal

Integrated

Marginal
Central
Corporate plan

Fast
Speed of decision Slow
 Differences
Dimensions –Line Mgmt Personnel & IR HRM

Mgmt role Transactional

Transformational

Key Managers Personnel/IR specialists

General/ Line managers

Indirect
Direct
Communication

Low
Standardisation High

Facilitation
Prized mgmt. skills Negotiation
 Differences
Dimensions –Key levers Personnel & IR HRM

Separate, marginal task

Selection Integrated, key task

Job evaluation
Pay (fixed grades) Performance related

Separately negotiated Harmonization

Conditions

Collective bargaining Individual contracts

Labour mgmt

Regularized – facilities Marginalised

Trust of relations training
 Differences
Dimensions –Key levers Personnel & IR HRM
Few
Job categories Many

Increased flow
Communication Restricted flow

Teamwork
Job design Division of lbr

Manage climate and culture

Conflict handling Reach temporary truces

Learning org
Training & development Controlled access
Cultural, structural &
Foci of attention Personnel Procedures
Personnel strategies
 Human Resource Strategy
• A firm’s deliberate use of human resources to
help to gain or maintain an edge against its
competitors in the market place. The grand plan
or general approach an organization adopts to
ensure that it effectively use its people to
accomplish its mission.
 Strategic Human resource Management
• “The linking of human resources with strategic goals and
objectives in order to improve business performance and
develop organizational culture that foster innovation and
flexibility”.
• It is accepting the HR function as a strategic partner in
the formulation of the company’s strategies as well as in
the implementation of those strategies through HR
activities.

How- Environmental scanning – identifying and analyzing external

opportunities and threats that may be crucial to the companies
success.
- Supply competitive intelligence for strategic planning
process.
- Supplying information regarding company’s internal strengths
and weaknesses.
 Scope
Earlier – “Health & Happiness”
Later - Human resource Planning
Design of Organization and Job
Selection and Staffing
Training and Development
Organization Development –”Synergetic effect”
Compensation and Benefits
Employee Assistance
Union/Labour relations
Personnel research and Information system.
 Importance
• Earlier Definition of Resources – Land, Labour and
Capital
• Next – Men, Materials, Machine, Money
• Finally- Orgoware- Materials, machine, money,
infrastructure and organization
Human ware – Workers, supervisors, Managers
and other employees directly involved in the
organization.
Info ware – Knowledge, skill, technology
Human ware indirectly influences the effective utilization of
orgoware
Human ware – Info ware heavily depends on human ware
as knowledge and skills are acquired, assimilated,
improved and applied.
 Example
• Toyota’s – Mission statement – “ A managers most
important and serious problems are people problem.
People, product and money are the three key elements –
but people are far and away the most important.

• AT & T-Kappel F.R. 1964 states - “ People are our most

important resource---Personnel management isn’t
something you turn over to a personnel department staff”
 Objectives
• - “EMPOWERMENT OF EMPLOYEES
To secure – Industrial peace
High productivity
Better quality of working life of employees
Obtain and sustain competitive advantage.
Industrial peace – Excellent union –management relations
High productivity – Robbins –”The quality or volume of the
major product or service that an organization provides”
Factors contributing productivity –
Capital investment
Innovation
Learning
Motivation
 Continue

• Better quality of life or employees – intrinsic and extrinsic

Barry. A Stein identifies 5 factors contributing to
quality of life.
Autonomy-extent of freedom of work
Recognition – Prestige/status/ego needs
Sense of belongingness – Commitment to
organizational objectives.
Career prospects & self development –
Individual expectations + Organizational objectives
Rewards & benefits
• Obtain and sustain competitive advantage through
empowerment – Strong commitment +High state of
morale and motivation = empowerment
 Functions
Managerial functions
Planning – Assessing manpower requirement – present &
future
Assess gap – availability & requirement
carry – SWOT
Organizing – Mobilizing the Human resources in an orderly
manner – Designing organizational structure,
hierarchical order, authority relationships, span of
control, delegation of authority, parity between
authority and responsibility.
Directing – Leading the team/group – Motivating
employees – communicating ideas and information and
instructions.
• Coordination – the task of blending efforts – ensure a
successful attainment of an objective.
-it is a group activity
- Each group forms a sub-system
-All subsystems integrate to form main system.

• Control – Planning sets- objectives, tasks, policies,

procedures, strategies and priorities.
- Organizing – resources & organization
- Direction – initiation of action and leadership
- Co-ordination – relationships –individuals,
groups, departments.
Ensures the process above periodically –
Set standards – compare actual and standards –
initiate corrective actions
 Operating /staffing functions
• Acquisition and Absorption
• Development & Utilization
• Maintenance & Retention
• Motivation & Empowerment
 Roles
Roles and Skills depend on levels – Top, Middle and
Operational level
Primary roles – Leader
Supervisor
Director
Secondary roles - Administrator
Negotiator
Facilitator
Advisor
Welfare Officer
Public relations Manager
 Skills
• Technical skill
• Human skill
• Conceptual skill
TS HS CS

Top level

Middle level

Operational level
Innovation skill – equal to all levels
 Activities

• Planning • HR inventory, HR planning,

Job analysis, Job description,
job specification, job
evaluation, HRD budgets.

• Designing structure, span of

• Organizing control,authority,relationship,
hierarchical order, design
communication channel.

• Leadership, motivation,
• Directing effective communication,
publications, MBO
programme
• Coordination • Conciliation,
compromises, conflict
negotiation, redress of
grievance, counseling.

• Controlling • Performance evaluation,

setting standards,
feedback analysis,
attitude survey, personnel
research, progress
review, feedback
information, HRD budget
review.
• Acquisition & Absorption • Advertisement, recruitment,
selection, testing, induction,
interviews.

• Development & Utilization • Training and development,

evaluation of effectiveness of
training program, promotion,
transfer, career
development, DPC
(Department promotional
committees)
• Maintenance & Retention • Wage & salary admin.,
maintenance of personnel
records, extrinsic reward
mgt. settlement of disputes.

• Motivation & • Conducive work culture,

Empowerment promoting OD schemes,
Workers participation, Works
committee, Managing
intrinsic rewards. HRD
research, Information
systems
 Challenges
• Environmental challenges
1. Rapid change
2. Rise of the internet
3. Workforce diversity
4. Globalization
5. Legalization
6. Evolving work and family roles
7. Skill shortages – Rise in service sector.
 Organizational challenges
1. Competitive position: cost, quality, distinctive
capabilities.
2. Decentralization
3. Downsizing
4. Organizational restructuring
5. Self managed work teams
6. Small businesses
7. Organizational culture
8. Technology
9. Outsourcing
 Individual Challenges
1. Matching people and organization
2. Ethical dilemmas and social responsibility
3. Productivity
4. Empowerment
5. Brain Drain
6. Job insecurity