Amity School of Business

BBA-Semester V
HUMAN RESOURCE MANAGEMENT
 CORPORATE HONCHOS MUSE
 Adi Godrej: “It is really important for me to spend time with my
people. We have a number of HRD consultants, HRD initiatives are
time-consuming and one has to be patient for cultural and mind-set
changes”.

 Phillips: According to Rama Chandran, MD, Phillips

India, “my human resource department is the center
of competence”.

 HLL: At Hindustan Lever the accent is on hiring people

who are even better than the ones at HLL. HLL now is a
people-and-strategy company”.
 Brian Friedman: “It is important to realize that employees
are your greatest asset. Unlike other assets, people are the
only asset which does not depreciate over time. On the
contrary, the more you use them, the better they get over
time. Their value keeps on appreciating with the passage of
time”.

 Thomas Watson: “ You can get capital and erect buildings, but it takes
people to build a business”.
 HUMAN RESOURCE-
INTRODUCTION VIDEO
 CHAPTER CONTENT
 Introduction to HRM.
 Concepts and functions of HRM.
 Scope & Significance.
 Personnel Management Vs. HRM.
 Basic HRM models.
 Role and Responsibility of human resource
manager.
 Essentials of sound HR policies.
 QUESTIONS TO ANSWER
1. What are the various functions of HRM?

2. Discuss the scope of HRM with the help of HRM model.

3. What is the significance of HRM in any organisation?

Explain with the help of relevant examples.

4. Is personnel management same as HRM? If not, highlight

the differences between them.

5. HR manager plays a significant role in efficient

functioning of any organisation. Explain the various roles
and responsibilities he has to pursue in this course of
management.

6. What are the essentials of sound HR policies?

 WHY HUMAN FACTOR IS
IMPORTANT???
 Human resources are unique in character.
 HR alone can produce an output greater than its input.
 HR is the only resource which can not be duplicated
by competitors.
 HR is most complex and unpredictable in its behavior.
 This is the only resource which appreciates in its value
with the passage of time.
 They are capable of giving continuous and cumulative
returns to the organisation
 Introduction/ Concept
 HRM is concerned with getting better results with the collaboration of
people. It is an integral but distinctive part of management,
concerned with people at work and their relationships within the
enterprise.

 A central feature of modern human resource management is the idea

of engaging the commitment of employees with the goals of the
organization. This means that human resource management is not
just about administering people but also about shaping the culture of
the organization.

 HRM is the qualitative improvement of human beings who are

considered the most valuable assets of an organization-the sources,
resources, and end-users of all products and services.

 Human resource management is the strategic and coherent

approach to the management of an organization's most valued
assets - the people working there who individually and collectively
contribute to the achievement of the objectives of the business
 EVOLUTION OF HRM
 The history of HRM in India dates back to the early
1980s when Mr. Udai Pareek and Mr. T. V. Rao
championed the cause of the HRM movement.

 Initially Indian organizations used to have an IR dept.

which was subsequently rechristened as Personnel and
IR dept.

 The welfare dept. was its sub-dept.

 Early adopters : BHEL , SBI, SAIL, ONGC

PERIOD STATUS EMPHASIS ROLE
1920-30 Clerical Statutory, welfare, •Welfare
Paternalistic activities •Administrator.
•Policeman.

1940-60 Administrative Expanding the role to •Appraiser.

cover Labor, Welfare, •Advisor
IR & Personnel •Mediator.
administration
•Legal advisor
•Fire fighting
1970-80 Management Professionalism, •Change agent
emphasis on efficiency •Integrator
& effectiveness, •Trainer
Regulatory,
conforming, imposing •Educator
of standards,
developmental.

1990s- Executive Human values, •Developer

onwards productivity through •Counselor
 FUNCTIONS OF HRM
HRM

MANAGERIAL FUNCTIONS OPERATIVE FUNCTIONS

Planning Procurement

Organizing Development

Directing Compensation

Controlling Integration

Maintenance
PROCUREMENT DEVELOPMENT COMPENSATION

Job Analysis Performance Job evaluation.

Appraisal.
Human Resource Wage & Salary
Planning Training Administration.
Recruitment Executive Bonus &
Development Incentives.
Selection
Career Planning & Payroll
Placement
Development.
Induction
Transfer
Promotion
HRM
Separation
S OF
TI O N
FUN Contd..)
(
 INTEGRATION MAINTENANCE

Motivation. Health.
Job Satisfaction. Safety.
Grievance Redressal. Social Security.
Collective Bargaining. Welfare Schemes.
Conflict Management. Personnel Records.
Participation of Personnel Research.
Employees.
Personnel Audit.
Discipline.

F H RM
NS O
CTI O
FUN (Contd..)
 NATURE OF HRM
Pervasive force:
It is present in all enterprises

Action oriented:
HRM focuses attention on action ,rather than record keeping
,written procedures or rules.

Individually oriented:
It tries to help employees develop their potential fully

People oriented:
HRM is all about people at work both as individuals & groups

Development oriented:
HRM intends to develop the full potential of employees.
Future oriented:
Effective HRM helps an organization meet its goals in future by
providing competent employees

Integrating mechanism:
HRM tries to build and maintain cordial relationship between people
at different levels.

Auxiliary function
HR department exists to assists and advise the line or operating
managers to do their personnel work effectively

Continuous Function:
HRM requires constant alertness & awareness of human relations and
their importance in everyday operations

Inter-disciplinary function:
HRM is a multi-disciplinary activity utilizing knowledge and inputs
drawn from psychology, sociology, anthropology, economics, etc.

R E OF
NAT U
O N TD..)
(C
HRM
 SCOPE OF HRM
 The Indian Institute of Personnel Management (IPM)
has defined the scope of HRM as follows:-- Canteens,
crèches, rest
Manpower rooms, lunch
planning, Personnel or Labor rooms, medical
Recruitment, help, health &
Selection,
Aspect
safety, recreations
placement, & cultural facilities
Induction, Welfare Union
etc.
transfer, management
promotion,
Aspect
relations, Joint
T&D, Layoff consultation,
& CB, Grievance
Retrenchmen Industrial handling,
t, wage & Relations disciplinary
salary Aspect actions,
administratio settlement of
n, incentives, Industrial
demotion, disputes, etc.
 SIGNIFICANCE/ IMPORTANCE
 Human resource Planning.
1. At Enterprise Level  Employee Relations.
 Recruitment & Selection.
 T&D.
 Performance appraisal.
 Placement.
 Assessment.
 Motivation.

 Promote team work & team

spirit.
2. At Individual Level.  Offers excellent growth
opportunities.
 Improve Quality of work life.
 Allows people to work with
diligence and commitment.
3. At Society Level.  Legal Compliance.
 Maintain balance between Jobs
available & the Job seekers.
 Eliminating wastage of HR.
 Union management relations.

 Best HR practices helps in

better utilization of natural,
4. At National Level. physical & financial resources.
 People with right skills &
attitude helps nation to grow
and compete with the best in
the world leading to better
standard of living and better
employment.
ORGANIZATIONAL STAGES AND
HRM NEEDS
 Stage 1: Start up
Recruitment, basic compensation and administrative systems.

 Stage 2 : Growth
Advanced recruitment, training and socialization process.

 Stage 3 : Control
Controlled investment in business related skills.

 Stage 4 : Integration
Effective integration mechanisms between various HR
components.

 Stage 5 : Flexibility
Monitoring and flexibility to adjust to market and environmental
needs.
Source: Baird, L. and I. Mesholam(1992)
 IMPORTANCE OF
HRM

Good
HR p
ra
helps ctices
in
 Attract and retain talent.
 Train people for challenging roles.
 Develop skills and competencies.
 Promote Team Spirit.
 Develop Loyalty and Commitment.
 Increase Productivity & Profits.
 Improve Job Satisfaction.
 Enhance Standard of living.
 Generate Employment opportunities.
 SLICE OF GOOD HR PRACTICES
AND THEIR PAYOFFS
 Toyota is one company which has benefited immensely from
employee suggestion scheme. The company’s suggestion
scheme nets almost 2,00,000 suggestions per year, that is
33% suggestions per employee every year. Interestingly,
95% of these are implemented. That makes about 5,000
improvements per day

 Employee suggestions helped British Airways cut

its costs by £4.5 million.

 WIPRO, another software leader, has excellent

human policies and practices. One such is the way a
potential job-hopper is handled. EXIT-Interviews are
held when people leave WIPRO. Reasons why people
leave are ascertained and interestingly, the company
helps the employee find placements in other firms
with a guarantee that the doors of WIPRO would
always be kept open to those willing to come back,
 OBJECTIVES OF HRM
SOCIETAL OBJECTIVE:
To be ethically and socially responsible to the needs and
challenges of the society.

ORGANIZATIONAL OBJECTIVE:
To recognize the role of HRM in bringing about
organizational effectiveness.

FUNCTIONAL OBJECTIVE:
To maintain the department’s contribution at a level
appropriate to the organization’s needs.

PERSONAL OBJECTIVES:
To assist employees in achieving their personal goals,
and enhancing the individuals contribution to the
organization.
 EXAMPLE: WIPRO

 Following are the HRM objectives at WIPRO.

 To respect the individual, as people are the greatest
asset.

 To govern individual and company relationships with

the highest standard of conduct and integrity.

 To be close to the customer through employees.

 To achieve and maintain leadership in people

management.
 PERSONNEL MANAGEMENT
 According to National Institute of Personnel Management
of India, “personnel management is concerned with
people at work and their relationships with each other
and organization.”

 Personnel management include administrative tasks that

are both traditional and routine.

 Personnel management is typically the sole responsibility

of an organization's personnel department.

 PM considered to be an independent function of an

organization.
 PM VS. HRM
PM
 Strict adherence of written
employment contract.
 Rules and procedures are the
guide to management action.
 Emphasis is on monitoring
employees.
 Speed of decision-making is
slow.
 Prized-management skill is
negotiation.
HRM
 Aim to go beyond
employment contract.
 Business needs are the
guide to management
action.
 Emphasis is on nurturing
talent.
 Speed of decision-making
is fast.
 Prized-management skill
is facilitation
 PM HRM
 Key relations are that of  Key relations are with the
labor and management. customers (internal and
 Management role is external)
transactional.  Management role is
 Communication is indirect transformational.
and have restricted flow.  Communication is direct and
 Job design is according to have unrestricted flow.
division of labor.  Job design is as per
 Pay is fixed according to teamwork requirements.
grades.  Pay is performance –related.
 Training and development  Training and development is
is controlled depending on a continuous phenomenon
the access to different as organizations are
courses. learning organizations.
 HRM MODEL
 It helps to understand the theoretical perspectives of HRM.

 It provide an analytical framework for studying HRM.

 They provide a characterization of HRM that establishes variables

and relationship to be researched.
 HRM Model
External
Environment
Internal
Environment
Human Resource
Planning

Job Analysis

Recruitment

Selection
ss e nevi t c eff E
l a noi t azi na gr O

Induction
Training and
Development
Performance
Appraisal
Remuneration

Industrial Relations
 ROLES & RESPONSIBILITIES OF
HUMAN RESOURCE MANAGER

ROLE OF HR
MANAGER

ADMINISTRATIVE OPERATIONAL STRATEGIC

ROLE ROLE ROLE
ADMINISTRATIVE OPERATIONAL STRATEGIC
ROLE ROLE ROLE

Policy maker, Recruiter, Change

Advisor, Trainer, agent,
Housekeeper, developer & Strategic
Counselor, motivator, partner.
Welfare officer, Linking-
Legal pin/coordinator,
consultant. Mediator,
Employee
champion.
EMERGING ROLE OF HR
HRM ENVIRONMENT

VISSION
AND
MISSION
BUSINESS
STRATEGY
HR HRM
SYSTEM
S
Organization
al Culture
Organization
al Structure
 HR-POLICY
 A policy is a predetermined course of action
established to guide the performance of work towards
accepted objectives.

 HR policies are statements of personnel objectives of

an organization and provide a broad framework within
which decisions on personnel matters can be made
without reference to higher authorities.

 HR policies lay down the criteria for decision making.

 ESSENTIALS OF SOUND HR-
POLICY
While developing sound HR policies, management should
keep
in mind the following:
 It should be related to OBJECTIVES.
 It should be easy to understand.
 Precise.
 Stable as well as flexible.
 Based on facts.
 Just, fair and equitable.
 Reasonable.
 Should cover interest of all the parties- Employer,
Employee and General public.
 Capable of being executed.
 EXAMPLE: TATA STEEL

 The personnel policy of Tata Steel, as contained in the Statement of

Objectives, is given below. The company tries to take care of its
employees:
 By a realistic and generous understanding and acceptance of
their needs and rights and by having an enlightened awareness of
the social problems of the industry;
 By providing adequate wages, good working conditions, job-
security, an effective machinery for redressal of grievances and
suitable opportunities for promotion and self-development
through in-company and external programmes;
 By treating them as individuals, giving them a sense of self-
respect and better understanding of their role in the organization
and satisfying their urge for self-expression through a closer
association with the management;
 By creating a sense of belonging through human and purposeful
activities as an integral part of human relations ensuring their
willing cooperation and loyalty.