Introduction

to
HRM
Introduction to HRM
 People are vital for effective operation of an
organization. It is people, not buildings that
make a company successful.
 Assets make things possible but people make
things happen.
 Employees play dual role. First, as a factor of
production. And second, it makes other factors
operative and productive.
 People are the most valuable asset of an
organization. Yet human assets are virtually
never shown on the balance sheet.
Nature of People

Characteristics of HR
– Multiplicity of roles assumed by individuals. A person play
many different roles in the society. These roles are
conflicting in nature.
– There is no average person. Two persons are not the same.
This is called individual differences. People are
heterogeneous.
– People are dignified. Treat them with respect and dignity.
– People appreciate as time goes on. People gain more
knowledge and experience.
 Nature of People

 Human being should be considered as a whole

person. Human is a total person influenced by
internal and external factors. His working life is
affected by social and family life.
 People have synergetic ability. The whole is greater
than total of its parts. It may be positive or negative.
Two plus two can be five or three.
 Nature of People

 People can be motivated. Motivation is the

willingness to exert more efforts to achieve
organizational goal.
 People have a desire for involvement. They want
to participate in decision making, which affect
their interests. They have right to express their
views, emotions and sentiments.

Contd.
 Nature of People

– People have perceptual differences. Perception is a

process through which people interpret and give meaning
to an event or environment.
People may perceive the same thing differently. A lot of
problems may arise because of perceptual differences.
These are-
– Self-serving bias: Attribute own success to internal factors
and failure to the external factors.
– Selective Perception: People selectively interpret what
they see on the basis of their interest, backgrounds and
experience.
Contd.
 Nature of People
 Halo Effect: Drawing a general impression about a person
on the basis of a single characteristic.
 Contrast effect: Evaluation of a person’s characteristics
that are affected by comparison with other people
recently encountered who rank higher or lower on the
same characteristics.
 Projection: Attributing one’s characteristics to other
people.
 Stereotyping: Judging a person on the basis of one’s
perception of the group to which that person belongs.
Generalization of characteristics of people on the basis
of gender, age, religion, color, race or wealth.
Competitive Advantage
through People
– Productivity can be achieved through people.
– People provide organization with the source of
competitive advantage.
– People are becoming a great differentiating factor.
Selection of people who are smarter, better trained,
more motivated, and more committed will help to
achieve competitive advantage.
– Gaining competitive advantage through people
requires following guidelines:
– Employment security
– Selectivity in recruiting Contd.
Competitive Advantage
through People

– High wages and salaries

– Incentive pay
– Employee ownership
– Employee empowerment and participation
– Information sharing
– Training and skills
– Treat people with respect and dignity
– Promotion from within.
 Meaning of Management

– Management is knowing exactly what you want

men to do and then seeing that they do it in the
best and cheapest way.
– Management is the process of achieving
organizational objectives through engaging in
five major functions of Planning, Organizing,
Staffing, Leading and Controlling.
– The application of planning, organizing, staffing,
directing, and controlling functions in the most
efficient manner possible to accomplish
objectives is known as management.
 Meaning of Management

– Planning: Planning is the projected course of

action. It is deciding in advance what is to be
done in future. Planning is the design for
tomorrow’s action.
– Organizing: It is the process of arranging and
allocating resources necessary to achieve
organizational objectives. Here resources means
both human and non-human resources.
– Staffing: The management function of selecting,
placing, training, developing and compensating
subordinates
 Meaning of Management

– Leading: Leading is the process of influencing

people to have desired behavior necessary to
achieve organizational objectives. It is the
process of influencing the activities of an
individual or group toward accomplishing
objectives.
– Controlling: It is regulatory function. Controlling
ensures that activities are running to the plans
made. It is the management functions of
checking to determine whether employees are
following plans and progress is being made, and
taking action to reduce discrepancies.
 Definition of HRM
– Management is getting things done through other
people.
– Management is nothing but managing people at
work.
– HRM is a field of management involves planning,
organizing, directing, and controlling the functions of
procuring, developing, maintaining and motivating
a labour force.
– It is a process of acquiring, training, appraising,
developing and compensating employees, and
attending to their labour relations, health and safety
and fairness concerns.
 Functions of HRM

– Acquisition
– Training and Development
– Motivation
– Maintenance
 Acquisition function

– It deals with human resource planning.

– HR planning is a process through which an
organization ensures that it has right types and
kinds of people at the right place who are
capable of doing their assigned tasks.
– Acquisition function includes- recruitment,
selection and socialization of employees.
– Recruitment is a process of finding and attracting
qualified people for job. It is a positive approach
because its objective is to encourage
 Acquisition function

more people to apply for jobs.

– Selection is a process of hiring suitable
people for job. Right person for right job is
the main goal of selection. It is a
negative approach.
– Socialization is a process of getting new
employees acquainted with the
organization, its culture, rules and
regulations, objectives and supervisors
and other employees.
 Training and Development

– Employees skills should be developed and they

must have up to date knowledge and skills.
– It encompasses employee training, education
and career development.
– Ongoing retraining is necessary to accommodate
technological changes. It is a process of
acquiring new skills to do job properly. Training
changes employees attitudes and behavior.
– Development of employee is necessary to
prepare organizations for future challenges.
 Motivation
– Another function of HRM is to help employees to
exert high energy level.
– Motivation function begins with the recognition that
individuals are unique and the motivational
techniques such as job satisfaction, employee
performance appraisal and compensation must
reflect the needs of each individual.
– Assessing how employees perform their jobs is the
focus of performance appraisal.
– Compensation rewards people for performing
organizational work through pay, incentives and
benefits.
 Maintenance

– Function of HRM is to maintain

employee commitment and loyalty
to the organization.
Qualities of HR manager

– Personal Attributes:
– Initiatives
– Depth of perception
– Mature judgment
– Understanding of human behavior.
– Experience and Training:
– Experience in psychological aspects
– Labour laws
– HR management and general management
Qualities of HR manager

– Professional Attitude:
– HR manager must have professional attitude
– He must have the acquisition of basic knowledge of
the subject and the right mental attitude.
Principles of HRM
– Treat people with respect and dignity
– Treat people as adults
– Deal with people as complete individuals
– Treat all employees with justice
– Provide people with opportunities for growth and
development
– Make people feel that they are important
– Rewards should be earned, not given.
– Do not underestimate the potentials of people.
– Supply people with all relevant information.
Philosophy of HRM

– Labour is viewed as a technical factor of

production. They are treated as
commodity and they can be bought and
sold. They are hired and fired at will. It is
consistent with theory X.
– Labour is viewed as human factor with a
lot of positive potentials, so they must be
treated with respect and dignity. This is
consistent with Theory Y or McGregor.
Why HR Management is
important to all managers?

HR Management is important to all managers because

they don’t want to make the personnel mistakes while
managing. Managers don’t want to-
– Hire the wrong person for the job
– Experience high turnover
– Have the people not doing their best
– Waste time with useless interviews
– Have your company taken to court because of discriminatory
actions
– Have some employees think their salaries are unfair and
inequitable relative to others
Line versus Staff aspects of
HRM

– Line managers are authorized to direct the work

of subordinates. Line managers are directly in
charge of accomplishing the organization’s basic
goals. For example: Production manager, sales
manager etc.
– Staff managers are authorized to assist and advise
line managers in accomplishing the basic goals.
For example: HR manager.
– Staff managers are responsible for assisting and
advising line managers in areas like recruiting,
hiring and compensation.
Line manager’s HRM
responsibilities

– Placing the right person for the right job

– Orientation
– Training employees for jobs that are new to them
– Improving job performance of each person
– Developing smooth working relationship
– Interpreting companies policies and procedure
– Controlling labour costs
– Protecting employees health and physical
condition
Functions of HR Manager

– A line function
– A coordinative function
– Staff functions
Thank you