INTRODUCTION TO HRM

Human Resource M anagement

The National Thermal Power Corporation (NTPC),
incorporated in 1975, has evolved to a progressive,
high-performing organization capable of competing
globally.

Behind its transformation is the philosophy “People

First”, aimed at maximizing the potential of its
employees.

The key drivers behind this strategy included the

competitive selection among young engineer and
management trainees from different educational
backgrounds and an intensive orientation programme.
By focusing on using latest technology to deliver HR
services and outsourcing routine activities like payroll,
NTPC has been able to focus on building a high-
performance organization.

Its achievements have been well recognized.

In 2008, it has been ranked number one in the “Best

Workplaces for Large Organization” category and has
won the SCOPE (Standing Conference of Public
Enterprises) Meritorious Award for Best Practices in
HRM in 2007
Tata Consulting Services (TCS) is a truly global company.
It draws software engineers from 32 countries. TCS
adopts a unique system of hiring people.

It starts its human resource sourcing right at the college

level. The software leader sends its senior executives to
interact with academic institutions.

At these institutions, TCS funds many events like

conferences, seminars and gets involved in improving
curricula, establishes fellowships and exchanges
expertise through visiting faculty programmes. To top all,
there is the annual retreat with over hundred top
academics in Trivandrum, the training hub of TCS.
TCS also built computer science department at IIT
Kanpur. Similarly, it sponsored programme in mathe-
matical modelling.

TCS extends its relationships to several universities

abroad as well. It has sponsored projects at MIT,
Harvard, Kellogg School, Carnegie Mellon, University
of Waterloo and institutions in Japan, Australia, China
and Singapore.

All the spadework being done, TCS finds it easy to

hire the best talent in campus recruitments.
WIPRO, another software leader, has excellent human
resource policies and practices. One such is the way a
potential job-hopper is handled.

Exit interviews are held when people quit WIPRO.

Reasons why people leave WIPRO are ascertained

and interestingly, the company helps them find
placements in other firms with a guarantee that the
doors of WIPRO would always be kept open to those
willing to come back and a few did come back.
“There is no magic in the success of
the companies, the secret of their
success is simply the way that they
treat their employees”

-‘AKIO MORITA’
(FOUNDER, “SONY”)
What is Human Resource
Management?
Human Resource is part of the organization that
deals with people

Concerned with “managing human resource”

Acquiring, developing and supporting staff as well as

ensuring they fulfill their role at work
Meaning & Concept
“A management function that helps managers recruit,
select, train and develop members for an
organization.”

Simply put, HRM is also a management function

concerned with hiring, motivating and maintaining
people in an organization.
Meaning & Concept
HRM means employing people, developing their
capacities, utilizing, maintaining and compensating
their services in tune with the job and organizational
requirement.

It was first coined in George Washington University in

USA.
 Core of HRM
• Organizations are not mere bricks, building, machineries or
inventories. They are people. It is people who staff and
manage organizations

• It is application of management functions and principles

• Functions and principles are applied to acquiring,

developing, remunerating and maintaining employees
• Decisions relating to employees must be consistent with
human resource decisions

• Decisions must be made to improve the effectiveness of the

organization

• HRM functions not only apply to business establishments

but also to non-business organizations like education,
health care, recreation and the like
Definition
Basic Definition

‘managing the employment relationship’

(Tyson, 1987)

Key Assumption

Employees are the most important asset of the

organization
 Define HRM

• “The policies and practices in carrying out the “people” or

human resource aspects of a management position including,
recruiting, screening, training, rewarding and appraising.”
(Gary Dessler)
Scope of HRM

 All major activities in the working life of an

employee –from the time of his or her entry into an
organization until he or she leaves –comes under
the purview of HRM.
Conducting Job analysis (determining the nature of each job)
Planning labour needs and recruiting job candidates-HR
Planning
Recruitment & Selection
Orienting and placement of new employees
Training & Development
Managing wages and salaries (compensating employees)

Job of Human Resource Manager

Appraising performance
Providing incentives and benefits
Motivating & Communicating (interviewing, counselling,
disciplining)
Building employee commitment
Equal opportunity
Employee health, safety and welfare
Handling grievances and Industrial Relations
Cont.
Staff are the largest revenue cost to any
organization.

Human capital is known to be the biggest asset to

organizations and it’s equally the biggest cost.

Staff are a volatile resource, they can leave you any

time.

Store of corporate knowledge

Individuals should contribute more than they cost.

Why is it Important?
 What are the factors affecting
HR?
 Legislation

 The Economic Environment

 The Global Economy

 The Structure of Labour Market

 The Political Environment

 Changes in Technology

 Need to Constantly Re-train Staff

Functions of HRM
Scope of HRM
 Why study HRM?
It is people who possess skills, abilities and aptitudes that offer
competitive advantage to a firm.

It is human resource that is capable of deciding, implementing

and controlling activities.

No computer can substitute human brain, no machines can

run without human interventions.

HRM is study about how people are hired, trained,

compensated, motivated and maintained.
 Assignment 1
 It is good to read that people management has matured
from Industrial Relations (IR) to Personnel Management
(PM) to Human Resource Management (HRM) to Human
capital Management (HCM).
 But has the change been only cosmetic or real?
 Elaborate….
Assignment 2
What is the emerging role of HRM and the
challenges it is facing?