INTRODUCTION

Human Resources
• Organizations are managed by people and
through people.
• Employees can make or break an organization,
depending upon their level of commitment,
contribution and cooperation.
• Human resource can be defined as the collection
of people and their characteristics at work.
• These are distinct and unique to an organization
in several ways.
 Uniqueness of Human Resources
1. HR are the only assets that appreciate over a
period of time while physical resources just
depreciate with years.
2. HR alone can produce an output larger than
the input on account of their creativity.
3. Provide utility value to each one of the
physical assets.
4. The flexibility of an organization depends
more on people than on any technical factors.
• Organisation an open system
• INPUTS, PROCESSES, OUTPUT
• Efficiency and Speed largely determined by people
working in the organisation
• People who use money , material , machines wisely.
• People who study markets , customer demands
&competitors challenges etc
• Any organisation needs to get and use this
information to be successful.
• Therefore many experts in the field have come
to recognise that no set of resources is more
vital to an organisations success than its
Human Resources.
• WHAT ARE HUMAN RESOURCES The people
that organisation employs to carry out various
jobs , tasks, and functions in exchange for
wages, salaries, and other rewards includes
CEO to the operatives.
 Concept of Human Resource Management
(HRM)
• During & after 1970s, several changes took place in
many countries which led to the use of the term
‘HRM’ in place of the traditional term ‘PM’.

 
• According to Dessler, “Human resource management
is the process of acquiring, training, appraising and
compensating employees, and attending to their
labour relations, health, safety and fairness concerns.”
• WHAT IS HR MANAGEMENT The
comprehensive set of managerial activities
and tasks concerned with developing and
maintaining a qualified workforce.
 Nature / Features of HRM
• Inherent part of management / Pervasive
• Basic to all Functional areas
• People centered
• Personnel activities
• Continuous process
• Based on human relations
 WHOSE JOB IS HRM?
• LINE MANGER &HRM
• Line manager has the formal power to direct and control
immediate subordinates.
• Having direct responsibility for the performance of
others he has an HRM function to perform.
• Typical HRM activities that might have to be carried out
by a line manager could include the following
• Selection, induction, training , development,
performance appraisal, job structuring, team motivation,
grievances, disciplinary machinery, bonus, incentives.
• If a Line manager has to perform all these
functions then why do we need an HR
Manager ?
• Line manager has to primarily do line functions
planning, leading, controlling, directing etc
• He has to undertake HR duties to make line
functions more efficient &effective . Assistance
from HR function can further enhance
effectiveness &efficiency of Line function.
 ROLE/FUNCTIONS OF HR MANAGER
• Traditionally an HR manager carries out 3 functions
• LINE FUNCTION Direct control over their own
department
• COORDINATIVE FUNCTION HR mgrs exercise
functional authority l over other departments to
ensure adherence to all HR Policies
• STAFF ASSISTANCE & ADVICE They assist and advise
line managers to better understand and appreciate
the HR aspects of company's Strategic options
ADDITIONAL HR ROLE IN PRESENT TIMES
• Employee Advocate Make sure that employer employee relationship is one
of reciprocal values. Challenge for HR manager is to help make organisation
competitive yet caring.
• Human Capital Developer HR Manager tries to develop plans that offer each
employee opportunities to develop his future abilities matching desires with
opportunities
• Functional Expert operates at multiple levels Routine HR problems, access
to body of knowledge, adapting their programs to the unique needs of the
business, understanding of the strategy
• Strategic Partner HR Manager works closely with senior business leaders on
strategy formulation and execution in particular designing HR systems and
processes that address strategic business issues. Manage change
• HR Leader HR mgrs credibility starts and ends with operational excellence
Objectives of HRM

Societal Objectives

Organizational Objectives

Functional
Objectives

Personal
Objectives
 IMPORTANCE OF HRM

• FOR THE ORGANISATION – Attracting, Retaining,

thru HRP, Recruitment , Selection, Placement,
Promotion, and Compensation Policies .Developing,
Securing willing cooperation thru participation,
motivation, grievance handling. Utilising available
human resources, Ensuring succession planning
• FOR THE EMPLOYEES – Providing maximum
opportunities for development, maintaining healthy
relations among individual and teams, Allocating
work properly
• FOR THE SOCIETY – Providing suitable
employment, Eliminating waste of human
resources
• FOR THE NATION – Level of development in a
country depends on skills, attitudes, values of its
human resources.
• Effective management of human resources helps
to speed up the process of economic growth
which in turn , leads to higher standard of living.
 RISING IMPORTANCE OF HRM

• Increase in size and complexity of

organisations
• Rapid technological development
• Rise of Knowledge Workers
• Diversity of Workforce
• Growth of powerful nationwide Trade union
movement
• Govt legislation to protect Workers rights
 RISING IMPORTANCE
• Rising costs &shortage of highly trained labour
• Rapidly changing jobs &skills
• Revolution in Information Technology
 SCOPE OF HRM

• 3P’S of an organisation
• IT &HR
• Competency development
• TQM
• Performance Management
• Leadership Development
• Change management
• Other Organisational phenomenon – Economic
Recession &Economic Boom
 PESONNEL MNGMT VS.HRM
• FOCUS - PROFIT MAXIMISATION VS NEEDS, ASPIRATIONS
• PHILSOPHY- COG IN WHEEL VS. HUMN MNGMT
• FUNCTION-TRADITIONAL VS.PART &PARCEL
• PERVASIVENESS - CONCERN OF P. MNGR VS.ALL MNGERS
• MOTIVATION – TRANSANCTIONAL RELATION VS. MORALE
&MOTIVATION
• ORIENTATION – INDIVIDUAL VS.SYNERGY
• TOOLS & TECNIQUES – RULES, PROCEDURES, PRESSURE,
COECIVE VS.INTEGRATED APPROACH
DISTINCTION BETWEEN
PERSONNEL MANAGEMENT (PM) & HUMAN RESOURCES MANAGEMENT (HRM)

Dimension PM HRM

Perspective Short-term perspective Long-term perspective

Point of View Compliance The psychological

contract based on
commitment
Control External control Self-control

Perception Pluralist perspective A utilitarian

perspective
Role Specialist role Strategic role

Outlook Cost-minimization Maximum utilization

 
DISTINCTION BETWEEN PERSONNEL MANAGEMENT &. HRM (CONT’D)

Dimension PM HRM

Employment contract Careful delineation of Aim to go beyond

written contracts contract

Rules Importance of Can do outlook,

devising clear rules impatience with rule

Guide to management Procedures Business need

action

Behavior referent Norms/customs and Values/mission

practices

Managerial task vis-à- Monitoring Nurturing

vis labour

Initiatives Piecemeal Integrated

 
 HISTORY OF HRM

• INDUSTRIAL REVOLUTION
• TRADE UNIONISM
• SCIENTIFIC MANAGEMENT
• INDUSTRIAL PSYCHOLOGY
• HUMAN RELATIONS MOVEMENT
• BEHAVIOURIAL SCIENCES
 EVOLUTION OF THE CONCEPT OF HRM

• THE COMMODITY CONCEPT

• THE FACTOR OF PRODUCTION CONCEPT
• THE PATERNALISTIC CONCEPT
• THE HUMANITARIAN CONCEPT
• THE HUMAN RESOURCE CONCEPT
• THE EMERGING CONCEPT
 HISTORY
• INDUSTRIAL REVOLUTION – Increased Mechanisation,
Specialisation, Labour looked upon as a commodity,
Laissez Faire Philosophy
• TRADE UNIONISM – In light of above working conditions ,
workers formed unions to improve their lot – collective
support to force management to redress their
grievances. Tools used – strikes, slowdowns, picketing,
boycotts, sabotage. All this gave rise to several personnel
policies like Collective Bargaining, Arbitration, Grievance
Handling, Code of Conduct, Employee Benefit schemes.
• SCIENTIFIC MANAGEMENT – F.W.Taylor
developed principles of management. It led to
professionalization of management . Critics
pointed SM had more focus on technology than
on human factor in the organisation.
• INDUSTRIAL PSYCHOLOGY – Stressed on matching
of employees skills with jobs. Hugo Munsterberg
contributed significantly to analysis of jobs in
terms of their mental and physical requirements.
• HUMAN RELATIONS MOVEMENT – Hawthorne experiments – Focus
on attitudes, feelings of workers and their influence on productivity.
Role of informal groups, Interpersonal Relations importance realised.
• BEHAVIORIAL SCIENCES – Research in Behavioural Science like
Anthropology, Sociology, Psychology led to new techniques of
motivation and leadership e.g. job enrichment, employee
involvement, MBO, Contributors include Maslow McGregor,
Herzberg, Likert to behavioural approach to the study of
management
• Human Resource Specialist &Employee Welfare – Focus on employee
benafit programmes and industrial relations system in industry.
 APPROACHES TO HRM
• SYSTEMS APPROACH
• SOFT &HARD APPROACH
• STRATEGIC APPROACH
• BEST PRACTICE &BEST FIT APPROACH
• INTEGRATED APPROACH
• APPROACHES TO HR EVALUATION – 1)AUDIT
&2)ANALYTICAL
• QUALITATIVE & QUANTITATIVE
• BALANCE SCORECARD
• BENCHMARKING
• SYSTEMS APPROACH – INTERRELATED but
SEPERATYE ELEMENTS, SUBSYSTEM coordinate
with each other to ensure availability of efficient
& effective human resources in the organisation
• SOFT &HARD APPROACH – HARD CONNOTES
harsher interpretation of strategies of cost
minimisation.HR is just like any other resource
which need to be handled strategically to ensure
achievement of organisation goals and objectives
• Soft approach emphasises on enhancement of
employees commitment, quality and flexibility
of employees.
• STRATEGIC APPROACH – Recognises critical
interrelationship and interdependence between
different areas of HRM 1)Organisation strategy
structure and individual roles, 2)Selection,
Development, 3)Performance Management,
4)Remuneration Strategy, 5) Job evaluation
• BEST PRACTICE APPROACH claims mutually
compatible HR activities forge high levels of
workforce competence. This approach is
based on premise that outstanding human
resource will influence strategy.
• BEST FIT APPROACH – HRM Policies according
to business strategies. This helps in creating
potential competitive advantage.
• INTEGRATED APPROACH – Suggests that HRM programs are
complementary and therefore can contribute to improved
organisational effectiveness.
• APPROACHES TO HR EVALUATION – 1)AUDIT APPROACH – HRM
AUDIT is the process of evaluating the effectiveness of HR function .It
provides verifiable data on the HRM function, Clarifies the HR
FUNCTIONS Duties &Responsibilities, Identifies critical HR problems,
Helps reduce HR cost because of increased effectiveness, Helps
review and improve HRIS . APPROACHES to HR Audit –
comparative approach(comparison with a model company) &
compliance approach (review past actions to determine if those
activities comply with legal requirements &company policies
&procedures)
• ANALYTICAL APPROACH – This approach relies on cost
benefit analysis also called the utility analysis . This
seeks to express evaluations in economic terms which
are more useful for decision makers . Qualititative
approach &Qualititative approach . With the help of
quantitative indices we can calculate cost of turnover,
absenteeism, work life balance, training etc.Some
companies like Sears applied behaviour costing
methodology to study the relationship between
employee attitude, customer behaviour and profits.
• BALANCE SCORE CARD – Developed by Kaplan
&Norton. It helps to evaluate HRM
effectiveness . BSC combines 4 dimensions –
financial performance, customer service,
internal business processes, and its capacity to
learn and achieve growth.
• BENCHMARKING – involves emplyees study
the practices followed in competing firms and
evaluating own practices.
 HRM MODELS

• Models provide an analytical framework for studying

HRM
• They legitimise certain HRM practices a key issue here
being the distinctiveness of HRM practices
• They provide a characterisation of HRM that
establishes variables and relationship to be researched.
• They serve as a device that helps us to discover and
understand the world for explaining the nature and
significance of key HR practices
 HRM MODELS
• THE FOMBRUM
• THE HARVARD
• THE GUEST
• THE WARWICK
• THE DAVE ULRICH
 FOMBRUM, TICHY, AND DEVANNA MODEL
(Matching Model of HRM)
• This model was propounded in 1984 and
emphasises 4 functions and their
interrelatedness. 4 functions are – 1)Selection
2)Appraisal, 3)Development 4)Rewards
• These 4 constituents are expected to
contribute to organisational effectiveness
• Fombrum Model is incomplete as it focuses on
only 4 functions of HRM and ignores all
environmental and contingency factors that
impact HR functions
• It deserves appreciation for being the first and
has set stage for other theories to emerge.
 HARVARD MODEL
• Harvard model claims to be comprehensive as
it seeks to comprise 6 critical COMPONENTS
of HRM . Dimensions included are – 1)Stake
holders interests 2)Situational factors 3)HRM
policy choices 4) HR outcomes 5) Long Term
consequences 6) Feedback loop.
• Challenge of HR manager to balance interests
of all stakeholders.
• Situational factors influence management
choice of strategy.
• HRM policy choices emphasise management
decisions and actions in terms of HRM, this
involves interaction between constraints and
choices
• HRM outcomes constitute Organisation
commitment, employee competence, and cost
effectiveness constitute HRM outcomes.
• Long term consequences include societal well
being, organisational effectiveness and
individual welfare
• Feedback loop is a very important component
of this model as situational factors influence
HRM policy and choice and are influenced by
long term consequences
 GUEST MODEL(1997)

Claims to be more superior to other models

• HR manger has specific strategies to begin
with, which demand certain practices when
executed will result in outcomes.
• These outcomes include behavioural,
performance related and financial rewards.
• This model emphasises the logical sequence of
6 components
6 COMPONENTS OF GUEST MODEL
• HR Strategy
• HR practices
• HR outcomes
• Behavioural outcomes
• Performance Results
• Financial consequences
• This model clearly maps out the field of HRM
and separates the inputs and outcomes. How
HRM can contribute to organisational
effectiveness is clearly shown in the model but
the dynamics of people management are so
complex that no model can capture them
comprehensively.
 THE WARWICK MODEL
• The model was developed by 2 researchers,
Hendry and Pettigrew of University of Warwick
• This model centres around 5 elements
• Outer context
• Inner context
• Business strategy context
• HRM context
• HRM content
• This model considers importance of business
strategy and HR practices in external and internal
context
• It considers interaction between context and content
• Strength of this model is that it identifies and
classifies important environmental influences on
HRM. It maps the connection between external and
environmental factors and explores how HRM adapts
to changes in the context.
 THE ULRICH MODEL
• CONTEMPORARY model which lifts HR function
from mere transactional to transformational role .
Being one of the most popular models in the
industry today he identifies 4 distinct roles that
HR should deliver
• STRATEGIC
• ADMINISTRATION
• CHAMPION
• CHANGE
• Strategic partner – Alignment of HR activities and
initiatives with the overall business strategy.
• Change Agent – 3 categories of change – Initiative
changes, process changes, cultural changes.
• Administrative expert – Responsible for offering
HR deliverables at lowest cost. important aspects
business process reengineering.
• HR champion – employee champion
• It talks about new age realities and
requirements – Globalisation, customer
centric organisations, value chain, employee
attitude, changing and remaining agile,
technology needs redefining work in such a
way that organisation is ahead of information
curve and is leveraging information for
business goals.