UNIT-I

TOPIC- CONCEPT OF HRM

 Course Out come
Course: Human Resources Management
Batch : 2017
Faculty: P.Mekala

At the end of this course students should be able to:

o To develop, apply and evaluate policies,
procedures and programs relating to human
resources
o The major areas focused : staffing, compensation,
and defining/designing work.
o To understand the statutory procedures and to
realize the organizational objectives.
 WHAT IS HRM?
 HRM - is a function in organizations designed to maximize employee performance in
service of an employer's strategic objectives.

 HR is the process of hiring and developing employees

 Valuable to the organization
 Recruitment, selection of employee, providing proper orientation and induction,
providing proper training and the developing skills, assessment of employee
(performance of appraisal).
 Providing proper compensation and benefits, motivating, maintaining proper
relations with labor and with trade unions,
 Maintaining employees safety, welfare and health by complying with labor laws of
concern state or country.
 Definition

 Human resources HR- finding- Screening

o Recruiting and training job applicants

o As well as administering employee-benefit programs.

 As companies to gain competitive edge

 Human resources plays a key role in helping companies deal with a fast-
changing environment

 The greater demand for quality employees.

 Changing environment of Hrm
Globalization:
o It’s a tendency of firms to extend their sales, ownership, and /or manufacturing to
new markets abroad. Ex; Sony ,Apple, Zara .
o IT industries – Infosys , Wipro , TCS
o Steel – TATA, Mittal
o Companies expand aboard for several reasons – sales expansion is one.
o Wal- mart is opening store in south American
Globalization’s implications:
o For business people , globalization’s essential characteristic is this; More
globalization means more competition .
o More competition means more pressure to be world class to lower cost.
o “The bottom line is that the growing integration of the world economy into
a single, huge marketplace is increasing the intensity of competition in a
wide range of manufacturing and service industries”.
o Globalization bring both benefits and threats.
 Trend in the nature of work
Technological Trends:
o High tech jobs: More and more high tech jobs are going high tech.
o Service jobs : Technology is not the only trend driving the change.
Over two third of the US workforce is employed in producing and
delivering services.
o Knowledge work and human capital: The best jobs that remain
require more education and more skills.
o For example: We saw that automation and just in time
manufacturing systems mean that even manufacturing jobs
require more reading, mathematics and communication skills.
o Human capital: is the knowledge, Education, Training, Skills, and
Expertise of a firm’s workers.
o Nature of work: Implication for HR
 Line and staff aspects of HRM
o Authority: is the right to make decisions, to direct the work of
others, and to give orders.
o Line authority
o Staff authority
Line Authority: Gives managers the right to issue orders to other
managers or employees.
It creates a superior- subordinate relationship.
Staff Authority: Have staff authority. The latter generally cannot issue
orders down the chain of command.(Except in their own department)
o In popular usage, manager associate line managers with managing
functions that the company needs to exist.
o Staff managers generally run departments that are advisory or
supportive , like purchasing, HRM and quality control.
o The line manager can issue the order, the staff manager can advise.
o Human resources managers are staff managers.
o They assist and advise line managers in area like recruiting,
compensation and so on.
o How ever line mangers still have human resources duties.
Line Manager:
o A manager who is authorized to direct the work of subordinates
and is responsible for accomplishing the organization’s tasks.
Staff manager:
o A manager who assists and advises line manager.
 Line Managers HR Duties
o Placing the right person on the right job.
o Starting new employees in the organization
o Training employees for jobs that are new to them
o Improving the job performance of each person.
o Gaining creative cooperation an developing smooth working
relationship.
o Interpreting the company’s policies and procedures.
o Controlling labor costs.
o Developing the abilities of each person.
o Creating and maintaining department morale.
o Protecting employees health and physical condition.
 Human Resource Manager’s Duties
• 1.A line function: The human resources manager directs
the activities of the people in his or her own department
and in related services areas.
– He/she exerts line authority within the HR department. While
they generally can’t wield line authority outside, they are likely
to exert implied authority.
• 2. A coordinative function: Human resource manager
also coordinate personnel activities, a duty often referred
to as functional authority.
• Staff function:
-- Assisting and advising line managers is the heart of the human resource
manager’s job. He /She advises the CEO to better understand the personnel
aspects of the company’s strategic options.
– HR assists in hiring, training , evaluating , rewarding, counseling, promoting,
and firing employees.
– It carries out an innovator role , by providing up-to date information on
current trends and new methods for better utilizing the company’s employees
, or human resources.
– It plays an employee advocacy role , by helping to define how management
should be treating employees.
o Recruiters: Search for qualified job applicants
o Human resource development specialist: Managing employee-
development activities in an integrated manner.
o Job analysts : Collect and examine information about jobs to
prepare job descriptions.
o Compensation managers: Develop compensation plans and
handle the employee benefits program.
o Training specialists: Plan, organize, and direct training activities.
o Employment /Industrial relations specialist: Advise
management on all aspects of union management relations.
o Employee welfare officers: Handle welfare activities in factories,
as required by law.
 Cooperative line and staff Hr
management
o Both line and HR manager have human resource management
duties , it is useful to ask.
o Exactly which HR duties are carried out by line managers, and by
staff managers?
o There is no single division of responsibilities we could apply across
the board in all organizations. but we can make some
generalizations.
o The most important generalization is that the relationship is
generally cooperative.
o For Ex: in recruiting and hiring, the line manager describes the
qualifications employees need to fill specific positions. Then the
human resource team takes over.
o They develop sources of qualified applicants , and
conduct initial screen interviews.
o Then they refer the best applicants to the line manager,
who interviews and selects the ones he or she wants.
o In training , the line manager, who interviews and selects
the ones he or she expects the employee to be able to do.
HR Department Organizational Chart (Large Company)

Figure 1–1
Source: Adapted from BNA Bulletin to Management, June 29, 2000.
1–15
 Employment and Recruiting—Who Handles It?
(percentage of all employers)

Note: length of bars represents prevalence of activity among all surveyed employers.
Figure 1–3
Source: HR Department Benchmarks and Analysis,” BNA/Society for Human Resource Management, 2002.
1–16
 Changing Role of HRM
Strategy
– The company’s long-term plan for how it will balance
its internal strengths and weaknesses with its external
opportunities and threats to maintain a competitive
advantage.
• HR managers today are more involved in partnering with
their top managers in both designing and implementing their
companies’ strategies.

Strategic HRM
– Formulating and executing HR policies and practices
that produce the employee competencies and behaviors
the company needs to achieve its strategic aims.
 Creating High-Performance Work System Practices

Benefits of a HPWS
• Employment security • Generate more job
• Selective hiring applicants
• Screen candidates more
• Extensive training effectively
• Self-managed teams/decentralized• decision
Provide more and better
making training
• Link pay more explicitly to
• Reduced status distinctions performance
• Information sharing • Provide a safer work
• environment
Contingent (pay-for-performance) rewards
• Produce more qualified
• Transformational leadership applicants per position
• Measurement of management practices
• More employees are hired
based on validated selection
• Emphasis on high-quality work
tests
 Functions of HRM

Managerial Operative
 Managerial Functions

Planning
Organizing
Directing
Controlling
 Planning

o Planning is necessary to give the organization its goals

and directions to establish best procedure to reach the
goals.
o Planning staff levels that an assessment of present and
future needs of the organization be compared with
present resources and future predicted resources.
 Organizing

• After objectives have been established and plans been

developed then personnel manager must design and
develop organisation structure to carry out various
operations. Such as-

o Grouping of personnel activity

o Assignment of different groups of activities to different
individuals
o Delegation according to task assigned
o Co-ordination of activities of different individuals.
 Directing

o The directing function of the personnel manager

involves encouraging people to work willingly and
effectively for the goals of the organization.
 Controlling

o Controlling helps to evaluate and control the

performance of the department in terms of various
operative functions.
 Operative Functions
Recruitment

Training & Development

Remuneration

Reward system

Motivation

Records and statistics

Industrial relations
Separation
 Recruitment

o The process by which a job vacancy

is identified and potential employees are notified.
o The nature of the recruitment process
is regulated and subject
to employment law.
o Main forms of recruitment through advertising in
newspapers, magazines, trade papers and internal
vacancy lists.
 Training and Development

– Provides new skills for the employee

– Keeps the employee up to date
with changes in the field
– Aims to improve efficiency
 Remuneration

o Concern with determination and equitable

remuneration of employees in the organisation
to the goals.
 Reward system

o The system of pay and benefits used by the firm to

reward workers
o Money not the only method
o Fringe benefits
o Flexibility at work
o Holidays, etc.
 Motivation

o To retain good staff and to encourage them to

give of their best while at work requires
attention to the financial and psychological and
even physiological rewards offered by the
organization as a continuous exercise.
 Records and statistics

o Keeps employee training records

o Achievement records
o Transfer and promotion records
o Absenteeism and labor turnover records
 Industrial relations

o Good industrial relations, while a recognizable and

legitimate objective for an organization, are difficult to
define since a good system of industrial relations involves
complex relationships between
 Industrial relations

(a) Workers (and their informal and formal groups,

i.e. trade union, organizations and their
representatives)
(b) Employers (and their managers and formal
organizations like trade and professional associations)
(c) The government and legislation and government
agencies.
 Separation

o Ensure the release of retirement benefits

o Requirements of the employee