HRM Unit 1

HRM unit 1
PREPARED BY – NILAY BHUVA

Syllabus of Unit-1
 Human Resource Management: Concept and Functions,

Role, Status and competencies of HR Manager, HR Policies,
Evolution of HRM. Emerging Challenges of Human
Resource Management; workforce diversity, empowerment,
Downsizing; VRS; role of HRM in strategic management;
Human Capital; Human Resource Information System;
 Employee Empowerment
 Concept of Succession Planning- Def & Process
Flow of Presentation.
 Definition
 Functions of HRM
Definition
 Human resources (HR) is the division of a business that is
charged with finding, screening, recruiting, and training
job applicants, as well as administering employee-benefit
programs.
competencies of HR Manager
1. Communication:
An HR manager must be able to communicate with everyone in the workplace -- from line staff to
executive leadership. In addition, communication skills are important for HR managers to interact
effectively with outsourcing providers, union leaders, public officials and employees, prospective
employees and colleagues. They need to know when to adapt their communication skills to the audience
and the situation. For example, HR managers must be able to convey the importance of fair employment
practices to the company's executive team with the same genuineness and passion as they would to hourly
employees.
2. Analytical and Critical Thinking:

Analytical and critical thinking skills are a must for HR leaders. An HR manager has to exercise sound
judgment and engage in high-impact decision-making in a number of areas. The ability to analyze
situations and view the implications of certain decisions from a critical perspective is particularly useful
for HR leaders. For example, the decision whether to outsource one or several HR functions isn't
something that happens without considering the impact outsourcing has on individual employees as well
as the organization overall. HR managers also are involved in representing the company in matters
involving employment litigation, which requires that they be able to justify the company's actions related
to employment decisions such as hiring and firing.
3. Relationship-Building
cont…
Creating a cohesive HR department that works collaboratively to achieve the goals of the department as well as
help the organization reach its goals related to workforce development is a competency that HR managers must
have. Relationship-building and interpersonal relationship skills are fundamental to an HR manager's success.
One of the challenges HR faces is establishing credibility with employees -- many employees equate their HR
departments with the school principal's office, which suggests a level of intimidation and trepidation associated
with their view of HR's purpose. That being said, an HR manager must have the ability to establish credibility and
trust as well as balance the obligation to be an advocate for both the organization and its employees.
4. Leadership
• Leadership skills are an essential competency for HR managers. HR managers are responsible for
creating strategic plans for the HR department as well as the overall workforce. Therefore,
leadership skills are critical, particularly in the process of justifying the functional elements of a
strategic plan to the company's management team. In addition, HR managers have to direct the
activities of the HR department, and in doing so, they need the type of leadership skills that
influence HR generalists' and HR specialists' commitment to the HR department goals.
cont…
5. Cost
HR isn't a revenue-producing business unit. Therefore, an HR department's budget may be limited
or the HR budget might be one of the first budgets cut when an organization downsizes. The
amount of money allocated to HR departments has a direct impact on HR practices. For example,
an organization might decide to outsource some or all of its HR activities instead of hiring in-house
expertise. For small businesses, the cost to outsource HR activities can be lower than the salaries
of HR specialists who perform the same duties, such as recruiting, training or payroll processing.
6. Expertise
An organization that doesn't have executive-level expertise in its HR department may simply focus
on HR transactions instead of HR strategic development. Since the 1980s, the administrative
direction of personnel administration has evolved into human resources, which promised to
become the strategic blend of work-force management and organizational development. Without
high-level expertise and experience in crafting strategic planning for HR, the organization's HR
practices may be strictly limited to a transactional, process-oriented role.
cont…
Executive Leadership
The extent to which an organization's executive leadership supports HR development or welcomes input from HR
expertise in executive-level decision making affects HR practices. In an August 2005 article on the Fast Company
website, "Why We Hate HR," author Keith Hammonds explains that HR is excluded from the powerful decision-
making circle in the boardroom. He paints a dismal picture with his description about HR's exclusion from the top
ranks: "They have no seat, and the table is locked inside a conference room to which they have no key. HR people
are, for most practical purposes, neither strategic nor leaders." If HR doesn't have the support of executive
leadership, it might as well return to the 1980s personnel administration function dedicated solely to employment
processes and not strategy.
Engagement
One of the key findings in an August 2011 study conducted by Cornell University's Center for Advanced
Human Resource Studies related to HR practices is that "practices that motivate and empower workers
tend to foster employees’ commitment to the organization." Employee engagement -- the result of
employees' commitment -- plays a distinct role in shaping HR practices. HR departments typically are
expected to increase morale, identify workplace problems and improve productivity. To do this, some
HR departments must modify their practices, call in experts to help or increase their staffing levels and
shift responsibilities to focus on sustaining employee engagement and job satisfaction.
cont..
Recruitment
The HR department is responsible for posting job vacancies, conducting preliminary interviews and coordinating pre-employment
processes, such as drug testing, background investigations and reference checks. In small businesses, these positions may be filled by
HR generalists, who have expertise in every HR discipline. Therefore, the company doesn't need to hire an employment specialist or a
recruiter to perform these tasks. These core responsibilities ensure that candidates are properly vetted and that the organization has
adequate staff.
Safety
Employers have an obligation to provide a safe work environment. HR's primary responsibility related to workplace safety is compliance
with federal guidelines established by the U.S. Occupational Safety and Health Administration. Specific activities include monitoring
safety equipment, training employees on the proper handling of complex machinery and potentially dangerous chemicals, and providing
ergonomically sound office equipment and seating. In addition, HR develops workplace safety policies, such as evacuation plans and
policies that address workplace violence. HR is also responsible for implementing the organization's drug-free workplace policy.
cont…
Employee Relations
When employee issues arise or when there are supervisor-employee or employee-employee conflicts,
HR's responsibility is to process employee complaints, investigate and resolve those issues.
Workplace issues could range from an employee's dissatisfaction with her performance appraisal to
an employee alleging that her supervisor engaged in improper behavior, such as sexual harassment.
These activities fall under the HR employee relations area, and they generally are performed by an
HR staff member who is specially trained to handle sensitive workplace issues. The HR staff member
who handles these matters is also the company representative for legal matters and the liaison
between legal counsel and the organization.
Compensation and Benefits

Wage-setting and negotiating rates for group health insurance coverage are core responsibilities of
HR. Specific tasks that HR handles include administering the compensation plan and ensuring there's
pay equity throughout the workforce. In addition, benefits specialists or someone with authority to
negotiate on the company's behalf shops for benefits such as health insurance coverage, workers
compensation and disability insurance. Another responsibility of HR includes processing employees'
leave requests covered by the Family and Medical Leave Act.
cont..
Development
HR leadership establishes goals for the HR department, and importantly, participates in the decision-making
process for determining the overall strategic direction of the company. In highly structured organizations, HR
generally has input on all business decisions because human resources are among the most valuable
resources that an organization has. Specific functions include reporting to the executive team about succession
planning, compliance issues and the effect that compensation has on employee satisfaction and the company's
reputation.
HR POLICY
Period before industrial revolution
Period before industrial revolution –

The society was primarily an agricultural
economy with limited production. Number
of specialized crafts was limited and was
usually carried out within a village or
community with apprentices assisting the
master craftsmen. Communication
channel were limited.
Period of industrial revolution (1750 to
1850)
Industrial revolution marked the conversion of economy from

agriculture based to industry based. Modernization and increased
means if communication gave way to industrial setup. A department
was set up to look into workers wages, welfare and other related
issues. This led to emergence of personnel management with the
major task as
– Worker’s wages and salaries
– Worker’s record maintenance
– Worker’s housing facilities and health care
CONT…
An important event in industrial revolution
was growth of Labour Union (1790) – The
works working in the industries or factories
were subjected to long working hours and
very less wages. With growing unrest ,
workers across the world started protest and
this led to the establishment of Labour
unions. To deal with labour issues at one end
and management at the other Personnel
Management department had to be capable of
politics and diplomacy , thus the industrial
relation department emerged.
Post Industrial revolution
The term Human resource Management saw a major evolution after 1850.
Various studies were released and many experiments were conducted during
this period which gave HRM altogether a new meaning and importance.
A brief overview of major theories release during this period is presented

below
● Frederick W. Taylor gave principles of scientific management (1857 o
1911) led to the evolution of scientific human resource management
approach which was involved in
● Worker’s training
● Maintaining wage uniformity
● Focus on attaining better productivity.

EVOLUTION OF HRM
https://youtu.be/OXYxIG269ic
ENVIRONMENTAL
CHALLENGE
 Rapid change
 workforce diversity
 globalization
 Legislation
 Lack of skill
 Technology
ORGANIZATIONAL
CHALLENGE
 CONTROLLING COST
 IMPROVE QUALITY
 DEVELOPING DISTINCTIVE QUALITY
 RESTRUCTURING
INDIVIDUAL CHALLENGE
 MATCHING PEOPLE AND ORGANIZATION
 PRODUCTIVITY
 ATTRITION AND TURNOVER
 KEEP EMPLOYEE MOTIVATED
 JOB INSECURITY
 COUNTER PRODUCTIVE BEHAVIOUR
 MANAGING WORK LIFE BALANCE
HUMAN CAPITAL
What Is Human Capital? The term human capital
refers to the economic value of a worker's
experience and skills. Human capital includes
assets like education, training, intelligence, skills,
health, and other things employers value such as
loyalty and punctuality.
Human resources information
system (HRIS)
A human resources information

system (HRIS) is a software
solution that maintains,
manages, and processes
detailed employee information
and human resources-related
policies and procedures.
Employee empowerment
Employee empowerment is a strategy

and philosophy that enables
employees to make decisions about
their jobs. Employee empowerment
helps employees own their work and
take responsibility for their results,
serve customers at the level of the
organization where the customer
interface exists.
CONT….
For example, the manager of the Human
Resources department added weeks to the
process of hiring new employees by requiring his
supposedly “empowered” staff members to obtain
his signature on every document related to the
hiring of a new employee. Mr. Mahesh
empowered himself to discuss the career
objectives he wished to pursue with his
supervisor. He told his supervisor, frankly, that if
the opportunities were not available in his
current company, he would move on to another
company.
Succession planning
Succession planning is the process of

identifying the critical positions
within your organization and
developing action plans for
individuals to assume those
positions.
PROCESS OF SUCCESSION
PLANNING
 Identify Key Positions.
 Identify Potential Successors.
 Determine When Will The Potential
Successors Be Ready.
 Determine What Development Needs
Do They Have.
 Ensure An Ongoing Commitment.

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HRM unit 1

PREPARED BY – NILAY BHUVA

 Human Resource Management: Concept and Functions,

2. Analytical and Critical Thinking:

Compensation and Benefits

Period before industrial revolution –

Industrial revolution marked the conversion of economy from

A brief overview of major theories release during this period is presented

● Maintaining wage uniformity

● Focus on attaining better productivity.

A human resources information

Employee empowerment is a strategy

Succession planning is the process of

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