HRM

Module-1
 Books to be referred

• Aswathappa, K; Human Resource Management; McGraw Hill.

• Dessler G and Varkkey B; Fundamentals of Human Resource Management;
Pearson Education
• V S P Rao; Human Resource Management; Excel Publishing House
 HRM - Introduction

• Edwin Flippo defines Human Resource Management 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.”

• Evolution of the concept of HRM:

1. Commodity concept
2. Factors of production concept
3. Goodwill concept
4. Paternalistic concept
5. Human Resource concept
6. Emerging concept
• Nature of HRM:
1. Pervasive
2. Action oriented
3. People oriented
4. Future oriented
5. Interdisciplinary function
6. Continuous function

• Objectives of HRM:
1. To help the organization reach its goals
2. To employ the skills and abilities of the workforce effectively
3. To provide the organization with well trained and well motivated
employees
4. To increase the employee’s job satisfaction and self actualization
5. To develop and maintain a quality of work life
6. To be ethically and socially responsive to the needs of the society
 Functions of HRM

HRM

Managerial Operative
Functions Functions

- Planning Procurement Human Compensation Human

Resource Development Relations
-Organizing Development

-Directing Job Analysis Performance Job Evaluation Motivation

HR Planning Appraisal Wage & Salary Job Satisfaction
-Controlling Recruitment Training Administration Grievance
Selection Management Fringe Benefits Handling
Placement Development Quality of work
Induction Career life
Planning Communication
Difference between Personnel Management & HRM

Dimension Personnel Management HRM

Focus •Profit Maximization •Development Oriented

•Aims at controlling people •Attempts to fulfill needs and aspirations of
people
Flexibility •Contracts •Flexible
•Rules & Regulations
•Rigid system
Function •Deals with procurement, compensating, •Helps to lead managers
training and appraisal
Pervasiveness •Concern of personnel manager •Concern of all managers

Motivation •Primarily concentrates on recruitment, •Primarily concentrates on morale boosting,

selection, and appraisal motivation, and getting more work from
people
Orientation •Administration •Synergy
•Individual performance •Teambuilding
•Team performance
Tools and •Rules •Integrated approach
Techniques •Procedures
•Coercive measures
 Top HR failures

• Yahoo’s telecommuting ban

• Gravity payment of 7,000 $ as minimum wage- Dan Price
• Amazone’s matrix policy-only means of promotion
• Ola’s HR (Yugantar Saika) alleged for favoring few recruitment vendors
• Lacoste fired employee Wade Good after he published a picture of his
paycheck on Instagram.
• Quit by 10 am tomorrow, or you will be terminated- Tech Mahindra’s HR
 International HRM
International Human Resource Management is the process of managing
people across international boundaries by multinational companies. It
involves the worldwide management of people, not just the management of
expatriates.
• Host Country
• Home /Parent Country
• PCN/HCN/TCN
Key issues of IHRM:
1. Higher complexity
2. Understanding the local context
3. Different Business Environment
4. Cultural differences
5. Convergence and Divergence
6. Role of trade union
7. Local Labor laws
8. Managing Expatriates
IHRM Approaches

Ethnocentric

Polycentric

Geocentric
 Ethnocentric Approach
Advantages
Cultural similarity with parent
company ensures transfer of
business/management practices
Permits closer control and
coordination of international subsidiaries
Gives employees a multinational
orientation through experience at
parent company
Establishes a pool of internationally
experienced executives
Disadvantages
Creates problems of adaptability to
foreign environment and culture
Increases the foreigness of the
subsidiary
May involve high transfer and
salary costs
Leads to high failure rate
Has disincentive effect on local
management morale and motivation
May be subject to local
government restrictions
May result in personal and family
problems
 Polycentric Approach

Advantages Disadvantages
Lower labor costs Makes it difficult to balance local
demands and global priorities
Demonstrates trust in local May reduce the amount of control
citizenry exercised by headquarters

Increases acceptance of the May make it difficult to recruit

company by the local community qualified personnel

Maximizes the number of options

available in the local environment
Effectively represents local
considerations and constraints in
the decision-making process
In January 2003 the Financial Times held a conference in London entitled
“Outsourcing to India.” The event was massively oversubscribed and the attendance
list looked like a Who’s Who of the UK’s financial services sector. These household
names are either already shifting work overseas or they are seriously thinking about
it. Addressing the conference, Chris Gentle, director of research (Europe) at
Deloitte Touche Tohmatsu, said: “We’re on the cusp of a revolution”. The top 100
financial services companies could save between $700 million (£432 million) and
$1 billion (£618 million) apiece over the next five years if they switched their
operations to the developing world, he said. And a recent Deloitte’s survey of
twenty-seven of the biggest financial services companies had indeed found that
most were planning to export many of their business processes. In 2003, for
example, Powergen announced plans that could lead to more than 300 call center
jobs transferring to India. BA, Prudential, HSBC, Axa, Bupa and Royal and Sun
Alliance are already established there. Stephen Roncoroni, an independent
consultant, estimates that an outsourced call center in the UK costs a minimum of
£16 to £17 per “man hour” to run, with the average closer to £20; in India the
average figure is closer to £9.
 Strategic HRM
Strategic human resource management means formulating and executing human
resource policies and practices that produce the employee competencies and
behavior the company needs to achieve its strategic aims.

Define Strategic
goals

Identify
employee skills
and behavior

Formulate HRM
policies and
practices
 Types of Strategies

Corporate Strategy

Competitive Strategy

Functional Strategy
 Role of SHRM

• Achievement of Strategic goals

• HR as a strategic business partner-
1. Competitive Advantage -Longo Toyota
2. Cost Cutting- Dell
3. Generating high performing teams- HDFC Bank
• Merger & Acquisition
1. Planning
2. Due Diligence
3. Integration
Approaches to link strategy, business performance and HRM

Best Fit

Best Practice

Resource Based