HUMAN RESOURCE

MANAGEMENT

MODULE # 1
 HRM
HRM is a management function concerned with
hiring, motivating & maintaining people in the
organisation. Its prime focus is on the people

It is a set of programmes,functions and activities

designed and carried out in order to maximise
both employee and organisational
effectiveness
 HRM
 HRM is the effective utilization of individuals
to achieve organizational objectives
 Meet strategic goals by attracting, and
maintaining employees and also to manage
them effectively
 HRM: Objectives
 The primary objective is to ensure the
availability of a competent and willing
workforce to an organization & to take care of
the work life of the employees
 Societal
 Organizational
 Functional
 Personal
 HRM :Objectives
 Societal
 To be ethically and socially responsible to the needs
and challenges of the society
 Legal compliance

 Union management relations

 Organizational
 To recognise the role of HRM in bringing about
organizational effectiveness .
 To instill ethical values & behaviour amongst the
employees
 HRP, Selection, Training & development,
Appraisal ,Placement, Assessment
 HRM : Objectives
 Functional
 To maintain the department’s contribution at
a level appropriate to the organisation’s
needs
 HRM should aim at providing the
organisation with well trained and well
motivated employees
 HRm should employ the skills of the
workforce effectively
 Appraisal,Placement,Assessment
 HRM :Objectives
 Personal
 To assist employees in achieving their personal
goals . This should be to motivate the employees
and to retain them
 Training and development

 Appraisal

 Compensation

 Placement

 Assessment

 Communication

 The job satisfaction, QWL should be

maintained
 SCOPE OF HRM
Motivation &
HR planning Job Analysis &
Communication
Design
Employee &
executive
remuneration
Recruitment
& selection
HRM

Job Evaluation
Orientation &
placement

Performance Industrial Training &

Appraisal Relations Development
 Scope of HRM
 As per IPM, the scope of HRM is:-

 Personnel aspect
 Welfare aspect
 Industrial relations aspect
 Functions of HRM
 Managerial Functions
o Planning
o Organising
o Staffing
o Directing
o Controlling
 Functions of HRM
 Operative Functions
o Procurement
o Development
o Compensation
o Maintenance & Motivation
o Integration
o Industrial relations
 Functions of HRM
 Advisory Functions

 Top management
 Department Heads
 Employees
 Primary Functions of HRM
 Human resource planning
 Equal employment opportunity
 Staffing (recruitment and selection)
 Compensation and benefits
 Employee and labor relations
 Health, safety, and security
 Human resource development
 Secondary HRM Functions
 Organization and job design
 Performance management/ performance
appraisal systems
 Research and information systems
 HR POLICY
 A policy is a plan of action
 It is a statement of intention committing the
management towards a general course of
action
 An expression of the philosophy & culture of
the organisation
 A policy statement is more specific & commits
the management to a specific course of action
 Why policies ?
 To ensure consistent treatment of all personnel policies
 Favoritism and discrimination thereby can be
minimised
 Policies require that management give deep thought to
the basic needs of both the organisation and the
employees
 Continuity in action even when people change
 It serves as a standard of performance
 Sound policies help resolve intrapersonal, interpersonal
and intergroup conflict
 Procedure
 A policy does not give the details of how to
implement your policies framed
 A procedure details the policy.
 A procedure in reality is a method for carrying
out a policy
 HRM vs PM
 HRM is continuous, on-going development
function aimed at improving human processes.
PM is traditional, routine, maintenance-
oriented, administrative function
 The scope of HRM views the organization as a

whole and lays emphasis on building a

dynamic culture.
The scope of PM is relatively narrow with a
focus on administering people.
 HRM vs PM
 HRM considers work groups, challenges and
creativity on the job as motivators.Important
motivators in PM are compensation, rewards,
job simplification and so on.
 PM is an independent function with
independent sub-functions. HRM is integrated
into the overall strategic management of the
organisation. It is not considered in isolation
from the larger organization and must take into
account the linkages and interfaces.
 HRM vs PM
 PM is reactive, responding to demands as and
when they arise. HRM is proactive,
anticipating, planning and advancing
continuously.
PM is the exclusive responsibility of the
personnel department. HRM is a concern for
all managers in the organization and aims at
developing the capabilities of all line managers
to carry out the personnel functions.
 HRM vs PM
DIMENSIONS

 Employment Contract
 Rules
 Managerial task
 Key relations
 Speed of decision
 Managerial role
 Communication
 DIMENSIONS contd…
 Prized Management skill
 Pay
 Conditions
 Conflict handling
 Training and development
 Respect for employees
 Interests
HRM & HRD
 HRM and HRD
 Human resource development (HRD) is just
one of the functions within HRM
 HRD is a set of systematic and planned
activities designed by an organization to
provide its members with the necessary skills
to meet current and future job demands.
 OBJECTIVES

 Develop human resource of the company

continuously for better performance to meet
objectives.
 Provide opportunity for development of
different level of employees by identifying
suitable need based training programs
 Prepare newly inducted staff to perform their
work with high level of competency and
excellence.
 OBJECTIVES

 Promote a culture of creativity, innovation, human

development, respect and dignity.
 Achieve excellence in every aspect of working life.
 Create environment for the trainees conducive to
their character building.
 HRD Functions
 Training and development (T&D)
 Organizational development
 Career development
 Training and Development
(T&D)
 Training – improving the knowledge, skills
and attitudes of employees for the short-term,
particular to a specific job or task so as to
make them more productive.
 Employee orientation
 Skills & technical training
 Training and Development
(T&D)
 Development – preparing for future
responsibilities, while increasing the capacity
to perform at a current job (long term)
 Management development programmes
Benefits of Training and Development

We can bifurcate the benefits of training and

development into two broad heads:
 Organizational benefits
 Personal benefits
 Organizational benefits
 Improves the morale of the workforce.
 Leads to improve profitability and more

positive attitudes towards profit

orientation
 Improves the job knowledge and skills at
all levels of the organization.
 Aids in organizational development

 Improves relationship between superior

and subordinate.
 Personal benefits
• Helps the individual in making better decisions
and effective problem solving.
• Aids in encouraging and achieving self-
development and self-confidence.
• Provides information for improving leadership,
knowledge, communication skills and attitudes.
• Helps a person develop speaking and listening
skills.
• Helps eliminate fear in attempting new tasks.
 Organizational Development
 The process of improving an organization’s
effectiveness and member’s well-being
through the application of behavioral science
concepts
 HRD plays the role of a change agent
 Career Development
 Ongoing process by which individuals
progress through series of changes until they
achieve their personal level of maximum
achievement.
 Career planning
 Career management
 Challenges for HRD
 Changing workforce demographics
 Competing in global economy
 Eliminating the skills gap
 Need for lifelong learning
 A FEW EXAMPLES
POLICY OF
 Hiring with due respect to factors like reservation ,sex,

marital status and the like

 On terms and conditions of employment

 With regard to medical assistance

 With regard to housing,transport, uniform and

allowances.
 With regard to industrial relations ;trade union
recognition,collective bargaining,grievance procedure
,communication with workers
 Learning & Performance

By Permission: Naughton & Rothwell (2004)

 Evolution of HRD
 Early apprenticeship programs
 Early vocational education programs
 Early factory schools
 Early training for unskilled/semiskilled
 Human relations movement
 Establishment of training profession
 Emergence of HRD
 Human Relations Movement
 Factory system often abused workers
 “Human relations” movement promoted better
working conditions
 Start of business & management education
 Tied to Maslow’s hierarchy of needs
 Establishment of the Training
Profession
 Outbreak of World War II increased the need
for trained workers
 Federal government started the Training
Within Industry (TWI) program
 1942 – American Society for Training
Directors (ASTD) formed
 Emergence of HRD
 Employee needs extend beyond the training
classroom
 Includes coaching, group work, and problem
solving
 Need for basic employee development
 Need for structured career development
 ASTD changes its name to the American
Society for Training and Development
 Line versus Staff Authority
 Line Authority – given to managers directly
responsible for the production of goods and
services (direct function)
 Staff Authority – given to units that advise and
consult line units
 Limits of Authority

 HRM & HRD units have staff authority

(Overhead function)

 Line authority takes precedence

 HRD Initiatives ……
 The Aditya Birla group’s institute of management
Learning in Navi Mumbai –Gyanodaya
 Learning happens in two ways
 G learning
 E learning
 TCS has a learning and development centre at
TVM which offers a range of programmes to its
employees
 ILP- Initial Learning Programme
 CLP-Continuous Learning Programme
 FLI-Foreign Language Initiative
 LDP-Leadership Development Programmes
 Strategic Management & HRD
 Strategic management aims to ensure
organizational effectiveness for the foreseeable
future – e.g., maximizing profits in the next 3
to 5 years
 HRD aims to get managers and workers ready
for new products, procedures, and materials
 Supervisor’s Role in HRD
 Implements HRD programs and procedures
 On-the-job training (OJT)
 Coaching/mentoring/counseling
 Career and employee development
 A “front-line participant” in HRD
Organizational Structure of HRD
Departments
 Depends on company size, industry and
maturity
 No single structure used
 Depends in large part on how well the HRD
manager becomes an institutional part of the
company – i.e., a revenue contributor, not just
a revenue user
HRD Organization in a Large
Company
 Competing in the Global
Economy
 New technologies
 Need for more skilled and educated workers
 Cultural sensitivity required
 Team involvement
 Problem solving
 Better communications skills
 Need for Lifelong Learning
 Organizations change
 Technologies change
 Products change
 Processes change
 PEOPLE must change!!
 Need for Organizational
Learning
 Organizations must be able to learn, adapt, and
change
 Principles:
 Systems thinking
 Personal mastery
 Mental models
 Shared visions
 Team learning
 A Framework for the HRD
Process
HRD efforts should use the following four
phases (or stages):
 Needs assessment
 Design
 Implementation
 Evaluation
Training & HRD Process Model
 Needs Assessment Phase
 Establishing HRD priorities
 Defining specific training and objectives
 Establishing evaluation criteria
 Design Phase
 Selecting who delivers program
 Selecting and developing program content
 Scheduling the training program
 Implementation Phase
 Implementing or delivering the program
 Evaluation Phase
Determining program effectiveness – e.g.,
 Keep or change providers?

 Offer it again?
 What are the true costs?
 Can we do it another way?
 Summary
 HRD is too important to be left to amateurs
 HRD should be a revenue producer, not a
revenue user
 HRD should be a central part of company
 You need to be able to talk in terms of
MONEY
 Sample HRD Jobs/Roles
 Executive/Manager
 HR Strategic Advisor
 HR Systems Designer/Developer
 Organization Change Agent
 Organization Design Consultant
 Learning Program Specialist
 Sample HRD Jobs/Roles – 2
 Instructor/Facilitator
 Individual Development and Career Counselor
 Performance Consultant (Coach)
 Researcher
 HR Manager Role
 Integrates HRD with organizational goals and
strategies
 Promotes HRD as a profit enhancer
 Tailors HRD to corporate needs and budget
 Institutionalizes performance enhancement
 HR Strategic Advisor Role
 Consults with corporate strategic thinkers
 Helps to articulate goals and strategies
 Develops HR plans
 Develops strategic planning education and
training programs
HR Systems Designer/Developer
 Assists HR manager in the design and
development of HR systems
 Designs HR programs
 Develops intervention strategies
 Plans HR implementation actions
 Organization Change Agent
 Develops more efficient work teams
 Improves quality management
 Implements intervention strategies
 Develops change reports
Organization Design Consultant
 Designs work systems
 Develops effective alternative work designs
 Implements changed systems
 Learning Program Specialist
 Identifies needs of learners
 Develops and designs learning programs
 Prepares learning materials and learning aids
 Develops program objectives, lesson plans,
and strategies
 Instructor/Facilitator
 Presents learning materials
 Leads and facilitates structured learning
experiences
 Selects appropriate instructional methods and
techniques
 Delivers instruction
 Individual Development and
Career Counselor
 Assists individuals in career planning
 Develops individual assessments
 Facilitates career workshops
 Provides career guidance
Performance Consultant (Coach)
 Advises line management on appropriate
interventions to improve individual and group
performance
 Provides intervention strategies
 Develops and provides coaching designs
 Implements coaching activities
 Researcher
 Assesses HRD practices and programs
 Determines HRD program effectiveness
 Develops requirements for changing HRD
programs to address current and future
problems