Subject : Human Resource Management

Course code: 22MBADSE203

Semester - I
 MODULE - 1

INTRODUCTION TO HRM
 Contents

• Module-1–Introduction to HRM

• Introduction to Human Resource Management, Evolution of HRM (including the Gig

economy), Importance, HRM functions, Forces changing HRM, The evolving role of HR
in business, The HR manager’s evolving competencies, HR Efficiency Metrics (Time to
Fill/Career path ratio/HR Headcount Ratio)

• Human Resource Planning - Meaning, Process, HRP Models*, Human Resource

Forecasting methods (Calculations on Ratio Analysis), Challenges and relationship with
other Human resource functions, Job analysis, Job Description, Job evaluation.
 Course Objective

Describe the foundational concepts of human resource

management functions.
 Relevant Information
LinkedIn Learning –
1. Human Resource Foundations
https://www.linkedin.com/learning/human-resources-foundations/the-fundame
ntals-of-managing-people?autoplay=true&u=92695330

2. HR Guidelines
https://www.linkedin.com/learning/hr-guidelines-everyone-should-know-2022/
get-ready-to-transform-your-organization?autoplay=true&u=92695330

3. Creating a compelling Job Description

https://www.linkedin.com/learning/creating-a-compelling-job-description/welco
me?autoplay=true&u=92695330

4. Industry Practitioner’s session – Topic: The Evolving Role of HR

 Relevant Information
• Case Study 1 - Building L.L. Bean- Page 15, HRM By Gary Dessler- 15th
Ed.
https://ibfbzu.edu.pk/wp-content/uploads/2020/08/Human-Resource-Ma
nagement-by-Gary-Dessler-15th-ed.pdf

• Case Study 2: The Zappos Way- Page 75, HRM By Gary Dessler- 15th Ed.
• Case study 3 : HRP at Sun and Hill Spa
https
://www.academia.edu/4872249/A_Case_Study_on_Manpower_Planning_
and_Productivity

https://www.youtube.com/watch?v=8ciAnHfIiFA
https://youtu.be/uMyDA2uUneA
https://www.youtube.com/watch?v=Liz9mJzbQtI
Interview Questions
What is the role of “HR” in an organization?
What Do Human Resources Professionals Do?
 Introductory Case
Improving Performance : HR as a Profit Center
Boosting Customer Service

A bank installed special software that made it easier for its customer service
representatives to handle customers’ inquiries. However, the bank did not otherwise
change the service reps’ jobs in any way. Here, the new software system did help the
service reps handle more calls. But otherwise, this bank saw no big performance gains.
A second bank installed the same software. But, seeking to capitalize on how the new
software freed up customer reps’ time, this bank also had its human resource team
upgrade the customer service representatives’ jobs. This bank taught them how to sell
more of the bank’s services, gave them more authority to make decisions, and raised their
wages. Here, the new computer system dramatically improved product sales and
profitability, thanks to the newly trained and empowered customer service reps.
Value-added human resource practices like these improve employee performance and
company profitability.
Discuss three more specific examples of what you believe this second bank’s HR
department could have done to improve the reps’ performance.
 Human Resource Management at Work

– The process of acquiring, training, appraising and

compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.

– The policies and practices involved in carrying out the

“people” or human resource aspects of a management
position, including recruiting, screening, training,
rewarding, and appraising.
 Human Resource Management at Work

Acquisition

Fairness Training

Human
Resource
Management
Health and Safety (HRM) Appraisal

Labor Relations Compensating

• https://
hbr.org/1981/09/managing-human-resources

• https://
hbr.org/1981/09/managing-human-resources
 The Evolution of HRM What
Next?

https://hbr.org/1998/01/a-new-mandate-for-human-resources
 HRM in the “Gig” Economy
• Why the word “gig” became a stand-in for “engagement” or “one-time job”?
• The word was indisputably popularized by Black jazz musicians in New Orleans
during the 1920s as they played different venues throughout the city.
• These were the first gig-workers.
• The gig economy refers to a growing worldwide growth in the number of gigs,
contracts, and casual jobs in place of traditional full-time employment. Examples
of gig workers include freelance writers, online tutors, digital marketing experts,
web developers, cybersecurity experts, and many others.
• The gig economy fundamentally changes three major dimensions of nature of
work: the work itself, who does the work and where the work will be done.
• The gig economy isn’t a fad which will soon fade away, but it may change the
way we indulge in Talent Acquisition.
https://
www.youtube.com/watch?v=cWaOzCdy8qI&list=PLHVWKzfzy7iPlLu1lSDURl
xtgLBh3W2JD&index=12
 Gig workers
• According to a 2018 report by the Bureau of Labor Statistics,
10.8% of total workers, or 16.5 million people, are considered
gig workers (contingent workers or independent contractors).
• Current trends show that countries like the US, Canada,
France, Japan, Netherlands, and Germany are hiring the largest
number of gig workers.
• As the gig economy continues to grow, organizations will have
a higher reliance on contract workers rather than full time
employees, gig workers will need to market their skills directly
to their consumers, and co- working spaces will increase in
demand.
https://www.researchgate.net/publication/356667176_The_Gig
_Economy_Workers_Work_and_Platform_Perspective#pf6

https://orfonline.org/wp-content/uploads/2020/05/ORF_IssueBr
ief_359_GenderGig.pdf
• A Niti Aayog study on “India’s Booming Gig and
Platform Economy” has estimated that in 2020-21,
77 lakh (7.7 million) workers were engaged in the
gig economy.
• According to the report, the gig workforce is
expected to expand to 2.35 crore (23.5 million)
workers by 2029-30.
• At present, about 47% of the gig work is in
medium-skilled jobs, about 22% in high-skilled, and
about 31% in low-skilled jobs.
 Importance of HRM

– Hire the right person for the job

– Low attrition rate
– Ensure people do their best
– Time saved in not conducting useless interviews
– Avoid legal action for any discrimination
– Safety laws are not ignored
– Equity towards employee in relation to salary etc.
– Effective training
– Avoid unfair labour practices
 HR Functions

Employment/ Recruiters Human

Industrial Resource
Relations Development
Specialist Specialists
Human
Resource
Training Specialties Job Analysts
Specialists

Compensation Employee
Managers Welfare Officers

18
 Forces Changing HRM
Speed of
expansion

Employee Changing
Organizati perception
on of HRM

Desire for
Profession
consistenc
al bodies
y

Cultures and
Labor
Communicati
Markets
on
https://www.youtube.com/watch?v=ukmC6F0JvQw
 Activity
• https://
hbr.org/2014/01/how-netflix-reinvented-hr

• Read the learnings from the article, note

bullet points regarding what they did right,
and discuss in next class.
 The Trends shaping HRM
• Technological advances
• Improving performance through HRIS
• Globalization and Competition Trends
• Trends in the nature of work
– High- tech jobs
– Service jobs
– Knowledge work and human capital
• Demographic and Workforce Trends
– Demographic trends
– Generation Y and Gen Z
– Retirees
– Non- traditional workers
– Work from anywhere
– Gig workers
 The HR Roles
Understanding Your HR Career Path Options
Two key terms in the human resource management sector are "generalist"
and "specialist.“

HR generalists are less focused and handle a number of areas and tasks
simultaneously.

HR specialists focus their efforts in a single area, such as recruiting or

training.
HR generalists:
Recruitment coordinator
Employee engagement activity
Employee Relations
Performance management
L&D
Compensation & benefits
HR Business Partner

HR specialists
Talent Acquisition
Talent Management
HR & legal
HR Analysts
HR strategy
Compensation & Benefits specialist

According to the Bureau of Labor Statistics, the availability of human resources specialist jobs are expected to grow by 5%
between 2018 and 2028 and job prospects are expected to be “favorable,” with 67,700 openings projected annually through
2028.This growth in human resources specialist opportunities is projected to be highest in organizations within the scientific,
technical and professional services sectors.

23
• HR Manager
– Human Resource Managers are generalists who act as links between
the directors and the executive level of corporate management.
• Training and Development Manager
– These HR professionals work involves supporting the employees
through education, training, and career planning interventions.
• Compensation and Benefits Manager
– This HR managerial position involves the preparation of compensation
and benefits programs for organizations.
• Recruitment and Placement Manager
– The person at the helm of hiring new employees in a corporate is
generally given the Employment, Recruitment, and Placement
Manager title.
• HR Consultant
– HR consultants are skilled in analyzing a company’s human resources
situation and devising policies, employment structure, benefits
packages, performance incentives, and many other issues. These
experts usually work in a contractual capacity, helping HR managers
with specific tasks.
• Executive Recruiter
– Executive recruiters or headhunters are responsible for finding senior
executives to fill leadership roles in corporations and large nonprofits.
• Employee Relations Specialist
– These specialists act as a bridge between management and labor
unions in large corporations. They draw up employment contracts
adhering to labor regulations and demands.
The Evolving Role of HR in Business
• Managing remote teams
https://www.techrepublic.com/article/gartner-51-of-global-knowle
dge-workers-will-be-remote-by-the-end-of-2021
/
• https://www.linkedin.com/pulse/majority-knowledge-work-done-re
motely-uber-ceo-works-below-paul-estes
/
• Learning and implementing new technologies
https://www.forbes.com/sites/deloitte/2022/12/01/betting-on-tec
hnology-how-governments-can-achieve-climate-equity/?
sh=554173b6673f
• Separation of critical skills and roles
• Technology adoption
• Use of data analytics in decision making
• Diversity and inclusion initiatives
 Key
Areas
where
HR can
play a
role

What can HR
do?
 The HR manager’s Competencies

https://
www.youtube.com/watch?v=3vpZgX1qOSk&list=PLHVWK
zfzy7iPlLu1lSDURlxtgLBh3W2JD&index=10
 HR Efficiency metrics
• Time to Fill: Time to Fill measures the number of
days it takes to fill an open position, from the date a
job requisition is posted to the date a new hire
accepts the position.
• Career Path Ratio: A Career path ratio is an HR
metric used to calculate an employee’s rate of
growth, based on vertical and lateral movement
within the organization.
• HR Headcount Ratio: It measures how many HR
representatives there are for each employee.
• Time to Fill= Total Days to Fill/ Total Hires
• According to SHRM’s Talent Acquisition
Benchmarking Report, the average Time to Fill
is 36 days.
• Example: If you hired for three roles, with 20,
30 and 40 days time to fill respectively, then
calculate your time to fill.
• Average time to fill= (20+30+40)/3 = 30 days.
**This calculation should refer to the same time period.
• Career Path Ratio= Total promotions/(Total
Promotions + Total Transfers)
• As a general rule, a healthy career path ratio is
around 0.25 — in other words, about four lateral
moves for every promotion. If your ratio is
significantly lower than 0.2, it might mean you’ve got
an upward mobility issue.
• For Example: If your company had 10 promotions and
15 lateral moves, find the career path ratio.
• Your career path ratio would be: 10/(10+15)= 0.4.
• HR Headcount Ratio= (HR Headcount/ Total Headcount) * 100
• The average HR staff to employee ratio is dependent of the size
of the organization.
• For example: Dress Right has a total of 500 employees and five
HR personnel. State whether Dress Right may choose to keep its
HR department the same or change their strength.
• HR Headcount Ratio= (5/500)*100= 1
• Dress Right compares its ratio of 1.0 to the standard of 1.03 for
large businesses. Because the ratios are so similar, Dress Right
may choose to keep its HR department the same.
 Case Study
• Case Study- Building L.L. Bean- Page 15, HRM
By Gary Dessler- 15th Ed.
• https://
ibfbzu.edu.pk/wp-content/uploads/2020/08/
Human-Resource-Management-by-Gary-Dessl
er-15th-ed.pdf
 Human Resource Planning
• Estimation of how many qualified
people are necessary to carry out the
assigned activities,
• How many people will be available, and
• What, if anything, must be done to
ensure that personnel supply equals
personnel demand at the appropriate
point in the future
• All people decisions at Google are based on Data and
Analytics!!
 Conditions that necessitate HRP

• Organizational
Productivity/Plans/Strategies
• Expansion/Growth/Diversification
• Economic Development
• Promotions of employees
• Organizational change
 HRP Process

Monitor,
Analyze
Implement Plan Control &
objectives
Feedback

Inventory
Current Human Formulate Plan
Resources

Forecast
Estimate Gaps
Demand
ORG CHART- ORGANOGRAM
 Example
• As an area sales manager, Varun keeps getting higher targets
every quarter from the regional sales manager. For instance, if
he had a business goal of achieving Rs 50 Cr worth of sales in
previous quarter, the management will revise the current
quarter’s sales to Rs 60 Cr, i.e., to achieve 20% growth rate
quarter on quarter from his territory.
• He needs to work on certain manpower planning aspects such
as:
– How many sales executives does he currently have?
– Will he require more number of people to achieve better sales
numbers?

38
 Factors affecting HRP

Organisati
Type and onal
Outsourcin
strategy of Growth
g
Org Cycle and
Planning

Time
HRP Horizons

Environment
al Nature of
Uncertaintie Jobs being
s Filled
40
41
 Improving Performance: Four
Seasons

Four Seasons builds its strategy around offering superior customer service, and that requires highly motivated and
high-morale employees. Four Seasons uses its recruitment practices to inspire such motivation and morale. One way
Four Seasons does this is by filling hotel positions around the world with internal transfers. In one year, for instance,
about 280 employees relocated from hotels from one country to another within the Four Seasons chain.

Employees love it. It gives them a chance to see the world, while building a career with a great hotel chain. And it’s
great for Four Seasons too, because the resulting high morale and motivation supports Four Seasons’ strategic goal
of superior customer service. In other words, Four Seasons uses recruitment practices that produce the excellent
service the chain needs to achieve its strategic goals.
 HR Forecasting Methods

• Quantitative Techniques

• Qualitative Techniques

https://
www.selectsoftwarereviews.com/buyer-guide/w
orkforce-planning-software
• https://
www.youtube.com/watch?v=C3ZucdY_ifI
• https
://www.youtube.com/watch?v=R0CpaxE4EYs

HR Forecasting
 Challenges in HRM

• Now a days HR duties & responsibilities have

become a challenge for HRM to compete with
global competitors & sustain in the
diversified economy.

• https://www.youtube.com/watch?v=shPFdLv4
Xbo&t=4s
 Challenges in HRM
• Globalization
• Handling Multicultural / Diverse Workforce
• Employee Selection
• Training & Development
• Balance with Work Life
• Retaining Talents
• Conflict Managing
 Case Study

• Why do you think Zappos’ top managers believe it

is so important for employees to provide a “WOW”
factor in their business?
 Job Analysis
• Job analysis is the process of gathering information
about a job

• A systematic investigation of the tasks, duties and

responsibilities necessary to do a job and the
characteristics of the people who should perform them.

• https://
www.youtube.com/watch?v=qy09Ls6NqEo&list=RDLVD
2_U_vsfr6I&index=2
 Process of Job Analysis

Selection of
Organizational
jobs to be Data Collection
Analysis
analyzed

Job
Job Description
Specification
 Job Description
• Document that clearly states the essential job
requirements, job duties, job responsibilities,
and skills required to perform a specific role

• A more detailed job description will cover how

success is measured in the role so it can be
used during performance evaluations
 Components of JS
• Educational Qualification

• Experience

• Skills & Knowledge

• Personality traits and characteristics

 Example of JS
Education Must be an engineer and MBA in marketing for a reputed MBA institute

Work experience Must have prior work experience in marketing & sales (preferably telecom or
FMCG)

Skills & Knowledge 1. Must be a good communicator and must be able to lead a team.
2. Prior experience in handling ATL-BTL activities and managing promotional
events.
3. Must be able to handle social media like Facebook, Twitter and help build
online brand
4. Experience in managing PR and media
5. Strong analytical skills and problem solving skills
6. Must understand business, come up with innovative products and launch
them

Personality Traits & 1. Must be presentable and a good orator

Characteristics 2. Should be calm in complex situations and show leadership skills in managing
multiple teams
3. Should be emotionally strong and should give timely deliverables
 Education and Experience Requirements
• Master’s degree in human resources, business
administration, or a related field
• 3-5 years human resources experience
• Experience with HRMS/HRIS systems
• Proficiency with Microsoft Office (Microsoft
Excel, Microsoft Outlook)
• PHR or SPHR certification preferred
• Bilingual English/Spanish a plus
 Competency- Based Job Analysis
• Competencies are demonstrable characteristics of the person that enable
performance.
• A competency is the knowledge, a skill, an ability or any other characteristic (for
example, a trait, a mind-set or an attitude) that is commonly referred to as KSAO or a
group of characteristics that, when applied in appropriate roles, help achieve desired
results.
• Competency based job analysis means defining the job in terms of measurable,
observable, behavioral competencies than an employee doing that job must exhibit
to do the job well.
• At BP, a skills matrix was created to help people understand what they must do to do
their jobs well.
• What is a competency matrix? (kenjo.io)
 Individual/ Group Activity
Working individually or in groups, obtain copies of job descriptions for any of the
HR/Marketing/BA/Finance positions from LinkedIn/ Monster Jobs/ Naukri etc.
https://www.linkedin.com/jobs
https://www.monsterindia.com/
 What types of information do they contain?
 Do they give you enough information to explain what the job involves and how to
do it?
 How would you improve on the description?
 Job Evaluation
• Job evaluation is the process of comparing a
job against other jobs within the organization
to determine the appropriate pay rate
• An assessment of the relative worth of various
jobs on the basis of a consistent set of job and
personal factors, such as qualifications and
skills required
• https://www.aihr.com/blog/job-evaluation/
 Job Evaluation
• It ensures equity in pay for jobs of similar skill, effort,
responsibility and working conditions by using a system that
consistently and accurately assesses differences in relative
value among jobs

• Develops a base for merit or pay-for-performance.

• https://www.youtube.com/watch?v=IMNyyIO-85k

• https://www.youtube.com/watch?v=wSqwCliHkZY
 Job Evaluation Methods: Ranking
• Ranking each job relative to all other jobs,
usually based on some overall factor.
• Steps in job ranking:
– Obtain job information.
– Select and group jobs.
– Select compensable factors.
– Rank jobs.
– Combine ratings.
Job Ranking by Olympia Health Care

Table 11–3

62
 Job Evaluation Methods:
Job Classification

• Raters categorize jobs into groups or

classes of jobs that are of roughly
the same value for pay purposes.
– Classes contain similar jobs.
– Grades are jobs that are similar in
difficulty but otherwise different.
– Jobs are classed by the amount or level
of compensable factors they contain.
 Job Evaluation Methods:
Point Method
• A quantitative technique that involves:
– Identifying the degree to which each compensable
factors are present in the job.
– Awarding points for each degree of each factor.
– Calculating a total point value for the job by
adding up the corresponding points for each
factor.
 Job Evaluation Methods:
Factor Comparison

• Each job is ranked several times

—once for each of several
compensable factors.
• The rankings for each job are
combined into an overall
numerical rating for the job.
 Computerized Job Evaluations
• A computerized system that uses a structured
questionnaire and statistical models to
streamline the job evaluation process.
– Advantages of computer-aided job evaluation (CAJE)
• Simplify job analysis
• Help keep job descriptions up to date
• Increase evaluation objectivity
• Reduce the time spent in committee meetings
• Ease the burden of system maintenance
 Glossary

• job analysis • job enlargement

• job description • job rotation
• job specifications • job enrichment
• Gig economy • dejobbing
• organization chart • boundaryless organization
• process chart • reengineering
• diary/log • competencies
• Workplace Planning • competency-based job
• Scheduling analysis
• Resource capacity planning • performance management
• Agile resource planning
• • job evaluation
Resourcing cost