Introduction to HRM

RAHUL SINGH

Definition of HRM
Human resource management is to make the most
productive use of human resource to the greatest
benefits of the organization and individuals.
Organization: profits and social commitments.
Individuals: development and achievement

Human Resources Management

Competitive Challenges and Human Resources

Management
The most pressing competitive issues facing firms:
Going global
Embracing technology
Managing change
Developing human capital
Responding to the market
Containing costs

Going Global
Globalization

The trend toward opening up foreign markets to

international trade and investment.

Impact of Globalization

Partnerships with foreign firms

Anything, anywhere, anytime markets
Lower trade and tariff barriers

NAFTA, EU, APEC trade agreements

WTO and GATT

Going Global (contd)

Impact on HRM
Different geographies, cultures, laws, and business practices
Issues:

Identifying capable expatriate managers.

Developing foreign culture and work practice training programs.
Adjusting compensation plans for overseas work.

Embracing New Technology

Knowledge Workers

Workers whose responsibilities extend beyond the physical

execution of work to include planning, decision making, and
problem solving.

The Spread of E-commerce

The Rise of Virtual Workers

Influence of Technology in HRM

Human Resources Information System (HRIS)

Computerized system that provides current and accurate

data for purposes of control and decision making.
Benefits:

Store and retrieve of large quantities of data.

Combine and reconfigure data to create new information.
Institutionalization of organizational knowledge.
Easier communications.
Lower administrative costs, increase productivity and response
times.

Major Uses For

HR Information Systems

The importance of HRM

(1) People is the key factor of production.
(2) Productivity is the key to measure a nations

economic growth potential, and labor quality is the

key to improving productivity.
(3) Competition today is the competition for talents.
(4) Since man is the most uncontrollable and

unpredictable variable of all production variables,

organizational success depends on the
management of people.

Indian HR Practices

High power-distance cultures create:

Hierarchical organizational structures.

Loyal and committed subordinate workers.
Autocratic relationships between managers and
subordinates.

Indian HR Practices
Resumes seek strong educational background.
Employee referrals (predominantly used for middle and

senior management).

Succession planning (predominantly used for middle and

senior management).

Elaborate employment tests related to the job, especially

at entry level.

E-recruitment: Naukri.com was the first e-portal

established in 1998 (naukri means job in Hindi ).

Indian HR Practices
Newspaper advertisements are used to brand the company to potential

applicants.

Newspaper advertisements will specify age and gender requirements.

Personal questions will be asked in interviews/resumes about:

Age
Marital status
Family plans (women planning to start a family)
Family background
Caste background
Photos to be included
Verification of educational certificates

Training Practices
Training (future orientation):

Education is extremely valued, and training is an extension of

it.
Entry point training programs (3 to12 months of orientation).
Ongoing training programs.
Development programs (promotions involve training).
In-house training centers are a common feature in Indian
organizations.

Compensation and Benefits

In addition to a base salary, compensation includes:

House rent allowance (HRA*).

Medical allowance.
Dearness allowance (DA*).
Leave travel allowance (LTA*).
Commuter allowance.

* These allowances are frequently referred by their acronyms

Several categories of leave (vacation) exist:

Sick leave: 7 days (medical certificate required).

Casual leave: 7 days (for personal and family emergencies, requires prior
permission of boss). Employees can take maximum 2 days at a time
Annual leave: 3 weeks (after one year of employment).
Federal holidays: About 20 days.

GROWTH OF HUMAN RESOURCE

HRM in India could be traced back to the period

after 1920, when emphasizes was on worker welfare.

In 1931, the royal commission on labor suggested the
appointment of labor officer to protect workers
interests .
Appointment of labor officer

The second world war

Enactment of Industrial dispute Act
Enactment of Factories Act
1960 and after..

FIRST PHASE
Immediately after independence the focus was on

four reasons :
Maintain discipline
Prevent their formation of and break-up the
leadership of trade unionism.
Prevent their formation of and break-up the
leadership of trade unionism
Handle recruitment and termination
Keep some form of attendance and personnel
records.

SECOND PHASE
IN 1960S, Indian industrialization got a fillip with

the rise of the public sector. Hence 3 more functions

were added i.e.,
Labor welfare
Participative management
Industrial Harmony
In this period, the human relations movement of the
west also had its impact on Indian organization.

THIRD PHASE
In 1970, the people management functions was

neatly divided into two :

Personnel officer
Establishment officers

Fourth Phase
In 1976, birth of worker training institute and

attitudinal development

Fifth Phase
In 1985, organization shifted towards making HR

Department separately.
HRD and personnel function were clubbed together.

Sixth phase
In early 1990s :
HRM was seen as strategy
Motivation and stress were considered to bring

change in HRM
Focus on organization objectives

Seventh Phase
In the mid of 1990s, sub specialization like :
Industrial Relations
Training & Development
Information system

Eight phase
HRM is not selective management any more
It became the part of Corporate Strategy formulation

and strategy implementation team

Later Arrival of HRM in India

Late arrival of factory system
Low status of industrial worker
Professionalization of Human resource Management
Social responsibilities of Business
Change of government attitude

Qualities of Human Resources Managers

Responsibilities
Advice

and counsel

Service
Policy

formulation
and implementation
Employee advocacy

Competencies
Business

mastery
HR mastery
Change mastery
Personal credibility

Human Resource
Competency
Model

Business
Business
Mastery
Mastery
Business
acumen

Business
acumen
Customer
orientation
Customer
orientation
External
Relations
External Relations

HRHR
Mastery
Mastery

Personal
Credibility
Trust

Change

Change
Personal
Mastery
Mastery
relationships
Staffing
Interpersonal
skills
Staffing

Interpersonal
skills
Lived values
Performance
appraisal
and
influence
Performance appraisal Courage
and influence
Rewards

system
Problem-solving
Rewards system
Problem-solvingskills
skills
Communication
Rewards
Communication
Rewardssystem
system
Organization
Innovation
design
creativity
Organization
Innovationand
design
and creativity

Source: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, Lower Cost, Higher Value: Human
Resource Function in.

THANKYOU