203 – Human Resource Management

Compulsory Generic Core Course

UNIT 01
Prof. Reshma Tamboli

1. Human Resource Management: Concept and

Challenges - Introduction, Objectives, Scope,
Features of HRM
2. Role of HRM, Importance of HRM
3. Policies and Practices of HRM
4. Functions of HRM ,Challenges of HRM.
5. Introduction to SHRM: Define SHRM,
importance and nature.
6. HRM Models: Harvard Model, SHRM
“matching model”.
 Activity!!!

 Hybrid Work Place (HWP) is the current buzzword but seldom do the
management and leaders realize its intensity and how it operates in the
Indian context.
 Future is highly uncertain and unpredictable –no one can speculate what
is in the store tomorrow. But this pandemic has made the employees
accept the fact that they can work remotely
 Hybrid workplace or the hybrid workplace model is an
arrangement where employees come to the office occasionally and
complete the rest of the task by working from home depending on
their convenience.

 It is comparatively a new concept that the organizations adopt to

implement a smoother workflow while dealing with the pandemic.

 The idea of creating a hybrid workplace is the future of how

organizations are going to function in the long run.

 It is here to stay where companies will have to make the shift and
deal with the transition while maintaining
productivity and increasing engagement levels.
Starting a journey as HR personnel
When HR calls an employee
for a meeting
When HR asks employees for ideas
regarding company event
When Managers ask recruiting person to
hire a candidate in two days
When you post a job vacancy on online portals &
searching suitable candidates from many
applications feels like;
When HR try to maintain the balance
between candidate’s profile and job
requirement
When HR finds applicant’s resume with
spelling errors & grammatical mistakes
When a candidate tells you they have
accepted another offer when one day is
left for joining
 Conclude:-

 HR department has evolved on various levels

and is often responsible for developing
corporate procedures and communications to
make sure that organizational programs are
sustainable throughout time.

 HR professionals are always focused on

company strategy and empowered employees
to take the organization to the next level.
 Why name human resource management?

Human: refer to the skilled

workforce in the
organization.
Resource: refer to
limited availability or
scarce.

Management: refer to maximize or proper

utilization and make best use of limited and a
scarce resource.
 Why HR?

Getting the people who can make an

organisation.

Enabling those people to acquire

required capabilities to make a successful
organisation.
Motivating them to contribute their
resources continuously for running the
organisation successfully.
People with required skills
to make an organisation
are generally referred to
as human resources.
‘EMPLOYEES ARE THE MOST IMPORTANT
ASSET OF THE ORGANIZATION’

• The quality and effectiveness of the

organization is determined by the quality of
the people that are employed.

• Success for most organizations depends on

finding the employees with the skills to
successfully perform the tasks required to
attain the company’s strategic goals.
 Continued……….

The
aspect
of
get and use the skill,
knowledge, ability etc., ‘attitude
through the ’
a resource like development of skills,
any natural tapping and utilising
resource. them again and again by
developing a positive
attitude among
employees.
 Facts of HRM
People is the
key factor of
production.

Productivity is the key

to measure a nation’s
economic growth
potential, and labor
quality is the key to
improving productivity.

Competition
today is the
competition for
talents. Since man is the most
uncontrollable and
unpredictable variable of all
production variables,
organizational success depends
on the management of
people.
 HRM and 3 P’s
People – core
strength of an
organization Any
resource can be replaced
but not HR

Processes –
evolve over a period Performance –
of time IT enabled the pillars of
environment performance are people
facilitates and IT
engineering
effortlessly
Meaning

HRM is planning organizing

directing and controlling

Procurement development
Compensation, integration,
maintenance & separation of
human resources

Individual, organizational and

social objectives are
accomplished
 Definition 01
According to Megginson, the term human
resources (HR) can be thought of as “the total
knowledge, skills, creative abilities, talents and
aptitudes of an organisation’s workforce, as
well as the value, attitudes and beliefs of the
individuals involved.”
 Definition 02
Human resource management is concerned
with policies and practices that ensure the
best use of the human resources for fulfilling
the organizational and individual goals.
-Edwin B. Flippo
 The success of any organization depends upon how it
manages its resources. While several resources are non human
resource such as land, capital and equipment, it is the human resource
and its management which is at the heart of an organization’s success.

 Human Resource (HR) refers to all the people who work in an organization called
personnel.
 Human Resource Management refers to the organizational function which includes
practices that help the organization to deal effectively with its people during the
various phases of the employment cycle.
 HRM is management function concerned with hiring, motivating, and
maintaining people in an organization.
 It focuses on people in the organization.
 OBJECTIVES OF HRM
Social/
Societal
Objectives

Organizationa
l Objectives

Functional

Objectives

Personal/
 Objectives of HRM

It also has social

The primary Functional Personal objectives
objectives
Organizational objective To assist
objective of being ethically
level employees in
HRM is to and socially To maintain
responsible for objectives achieving their
ensure the To recognize the personal goals at
availability of the needs and
the role of department’s least in so far as
challenges of
competent and society while HRM in contribution at these goals
willing a level enhance the
minimizing the bringing about
workforce to appropriate to individual’s
negative impact organizational contribution to the
an upon the
effectiveness the management
organization. organization. organization
needs.
 Nature of HRM
A part of Management Discipline
Universal Existence

People Centered

Action oriented

Directed towards Achievement

of Objectives

Integrating Mechanism

Development

Oriented Continuous

Process Human
 Functions of
HRM
Managerial Functions Operative Functions

Planning Employment

Human
Organizing Resources
Development
Directing
Compensation
Controllin
Human Relations
g
Industrial
Relations
Policies and Practices of HRM

HR Policies are formal rules and procedures

that dictate how certain matters should be
addressed in the workplace including
employee rights and duties. HR Policies are
tied to employment law. To avoid non
compliance and penalties from the
government, employer must adhere to HR
policies.

HR practices involve the strategic

operations of HR. They form the
foundation and guidance for managing the
company’s employees and should
coordinate with the executive business
plan.
 Policies & Practices
•Practices Policies
•Setting the mission and goals of the HR •Equal Employment Opportunity policies
department •Employee classifications
•Planning, organizing, and managing the •Workdays, paydays, and pay advances
HR department •Overtime compensation
•Measuring the effects of programs •Meal periods and break periods
•Creating programs to improve the •Payroll deductions
quality of the work environment •Vacation policies
•Developing talent and future leadership •Holidays
•Conducting motivational programs •Sick days and personal leave (for
•Working with management for ongoing bereavement, jury duty, voting, etc.)
performance evaluations •Performance evaluations and salary
•Overseeing employee advancement increases
opportunities •Performance improvement
•Termination policies
 Why adopt policies?
The work involved in formulating personnel policies requires that the management
give deep thought to the basic needs of both the organization & the employees.

Establish policies ensure consistent treatment of all personnel throughout

the organization. Favoritism & discrimination are, thereby minimized.

Continuity of action is assured even though top-management personnel

change.

Policies serve as a standard of performance.

Sound policies help build employee motivation & loyalty.

Sound policies help resolve intrapersonal, interpersonal & intergroup

conflicts.
 What is Strategy ?
“Strategy is the pattern of objectives, purposes or goals and major
policies and plans for achieving these goals, stated in such a way as to
define what business the company is in or is to be in and the kind of
company it is or is to be”

“Strategy is the determination of basic long – term goals and

objectives of an enterprise, and the adoption of courses of action and
the allocation of resources necessary for carrying out these goals”.

“Strategy is the determination of organizational objectives in the light

of environmental variables and determination of course of action and
commitment of organizational resources to achieve these objectives.”
 Strategy and Strategic Management

• A strategy is a way of doing

something. It usually includes
Strategy the formulation of a goal and
set of action plans
for accomplishment of that
goal.

• It may be understood as
Strategic process
the of formulating,
implementing and evaluating
Management: business strategies to achieve
organizational objectives.
 Strategic HRM

That help
Strategic HRM achieve
organizational
goal.

Process of developing
practices,
programme and
policies
 SHRM

“SHRM centers on how

organizations can improve
their competitive
performance by considering
and utilizing their human
resource more effectively.”
SHRM-Philosophy

Integrating human resource

management Strategies and
systems to achieve overall
mission , strategies, and
success of the firm while
meeting needs of
employees and other
stakeholders
 HR strategy ?

Miles • A human resource system that

tailored to the demands of the
is
and Snow business strategy
1984
Wright and • The pattern of planned
resource activities intended
human
McMahan enable an organization to achieve
to
1992 its goals
 Human Resource Strategy

HR strategy is designed to develop skills, attitudes &

behaviors among staff that will help the organization
meet its goals

HR strategy consists of principles for managing the

workforce through HR policies and practices

It covers various areas of human resources functions:

recruitment, compensation, performance ,management,
reward, recognition, employee relations and training
 Human Resource Strategy (Contd.)

HR strategy must be aligned with the organization's vision, mission

and goals

In developing an HR strategy, the company must analyze the

characteristics of its industry, determine its competitive advantage,
identify key processes & key people

Creating different strategies for all groups of people in the

organization may be necessary, depending on their skills,
knowledge and responsibilities

The strategy must look at the organization's culture, structure,

people and systems
Human Resource Strategy (Contd.)

Managers must rely on employees to

cope with the uncertainties inherent in
the labor process and monitor and
evaluate the outcomes of work.

HR strategy aims at developing highly

committed and flexible people, internal
markets that reward commitment with
promotion and a degree of job security, and
a ‘participative’ leadership style that copies
a commonality of interest and mobilizes
consent to the organization’s goals.
 Scanning the Environment:

The role of the HR department is to collect

all the information about the immediate
competitors – their strategies, vision,
mission, strengths, and weaknesses.
This can be done through the resumes
being sent by the candidates working with
the other rivalry firm.
Through these, HR professionals can
identify the workforce, work culture, skills
of the staff, compensation levels, reasons
for exit and other relevant information
about the competing firm.
 Identify Sources of
Competitive Advantage:
The HR department can help in gaining the
competitive advantage by conducting the
efficient training programmes designed to
enrich the skills of the staff.
 Identify HRM Strategies
There are major four strategies undertaken
by an organization to enrich the
employees capabilities:
a)Learning as Socialization: This strategy
includes the techniques as training courses,
coaching sessions, education programmes
to ensure that the employees abide by the
rules, value and beliefs of an organization
and are able to meet the performance
targets.
b)Devolved Informal Learning: This
strategy helps in making the employees
aware of the learning opportunities
and the career development.
c) Engineering: This strategy focuses on
creating and developing communities of
practice and social networks within and outside
the organization.
d)Empowered Informal Learning: Through this
strategy, the HR department focuses on
developing the learning environment such as
knowledge about the new processes, designing
of new work areas and the provision of shared
spaces.
Why are there so many types of strategy and how do you
keep them all connected?

A corporate strategy sets the strategic goals for the company as

a whole.
•A business strategy sets the strategic goals for the business
unit. If a company is small corporate and business strategies are
one in the same.
•A functional (area) strategy set the strategic goals to deliver on
the business or corporate goals AND to continue to
strengthen, improve or enhance the functional area itself.
 Role of HRM in Strategic Management

Role in Strategy Role in Strategy

Formulation
Implementation
 Important points:- what the group is going to do,
and why it's going to do that.
Mission statements are similar
• The vision is what you want to accomplish.
to vision statements, but they're
Mission is a general statement of how you will more concrete, and they are
achieve your vision. definitely more "action-
oriented" than vision
• Strategies are a series of ways of using the statements.
mission to achieve the vision. (THE HOW)
• Action step(s): What will
happen
• Goals are statements of what needs to •Person(s) responsible:
be accomplished to implement the Who will
strategy. do what
• Objectives are specific actions and timelines for •Date to be completed: Timing
achieving the goal. (HOW MUCH OF WHAT WILL BE ACCOMPLISHED of each action step
BY WHEN) •Resources required: Resources
and support (both what is
• Action plans are specific actions that need to be needed and what's available )
taken for reaching the milestones within the •Barriers or resistance, and a
timeline of the objectives. (WHAT CHANGE WILL HAPPEN; WHO plan to overcome them!
WILL DO WHAT BY WHEN TO MAKE IT HAPPEN) •Collaborators: Who else
should
 Human Resource and Business Strategy
All elements of the business strategy have implications for human resources,
The challenge for management is to identify and respond to these HR challenges:

Examples of Key Strategy Issues Possible Human Resource Implications

What markets should the business compete in? What expertise is required in these markets? Do existing
management and employees have the right experience
and skills

Where should the business be located Where do we need our people? How many do we need?
to compete optimally?

How can we achieve improvements in our How productive is the workforce currently? How does
unit production costs to remain competitive? this compare with competitors? What investment in the
workforce (e.g. training, recruitment) and their
equipment is required to achieve the desired
improvement in productivity?

How can the business respond to rapid What technological skills does the business currently
technological change in its markets? possess? What additional skills are needed to respond to
technological change? Can these skills be acquired
through training or do they need to be recruited?
 SHRM concern

• HR management is
fully integrated with the
and strategic needs of the firm
strategy
SHRM • HR policies adhere across policy
concern areas and areas of hierarchy
is to • HR practices are adjusted
ensure used
and by line and
employee
manages
severyday work as their

part
 Importance of SHRM:

Helps firm in achieving cost-effective engagement of Labour

Enables firm to meet changing needs

Provides clear-cut goals, direction, and future focus

Helps Organization in Planning and Executing Organizational Changes

Ensures Optimum Utilization of Organizational Resources

Develops, Manages and Sustains Skills and Knowledge
 Benefits of SHRM
Identifying and
analysing external To supply competitive
Provides a clear
opportunities and intelligence that may
business strategy and
threats that may be be useful in the
vision for the future.
crucial to the company's strategic planning
success. process.

To ensure that people

To develop and retain
To recruit, retain development issues are
of highly competent
and motivate addressed
people.
people. systematically.

To supply information
To meet the
regarding the To ensure
expectations of the
company's internal customers effectively. high
strengths and productivity.
weaknesses.

To ensure
business surplus
thorough
competency
 The Integrated systems Model-Schuler 1992

5 P Model
Strategic
• Philosophies Business Needs
And reflects
• Policies managements
overall plan for
• Programs Survival ,
growth,
• Practices adaptability
and
• Processes profitability
• 1. Philosophy: Expressed in statements
defining business values and culture. It
expresses how to treat and value people.
• 2. Policies: Expressed as shared values and
guidelines. Policies establish guidelines for
action on people related business issues and
HR programs.
• 3. Programs: Articulated as human resource
strategy. These coordinate efforts to facilitate
change to address major people related
business issues.
• 4. Practices: For leadership managerial and
operational role practices motivate needed
role behaviours.
• 5. Processes: For the formulation and
implementation of other activities these
define how activities are carried out.
• The Michigan model was propounded by
Fombrun Tichy and Devanna (1984) at the
Michigan Business School. They also named
this model a matching model of HRM.
• Precisely, the matching aspect of this model
demonstrates that the model is inclined
towards the harder side of HRM.
• This is because the matching model
emphasises more on “tight fit” between the
HR strategy and the business strategy.
• It demands that available human resources
must be matched with jobs in the
organisation.
 The Matching Model
HR system and organizational structure should be
managed in a way that is corresponding with
organizational strategy.

Strategy and success follow and feed upon one

another and are influenced by environmental
forces

Fit between competitive strategy and internal HRM

strategy

There is a HR cycle, which consists of 4 generic

processes or functions that are performed in all
organizations
Matching Model of HRM (Contd.)

Selection • Matching available human resources to jobs

Appraisal • Performance Management

• The reward system must be short & long-term, bearing

Rewards in mind that ‘business must perform in the present to
succeed in the future’

Development • Developing high quality

employees
• The Michigan model is also known as the
'matching model' or 'best-fit' approach to
human resource management. In essence, it
requires that human resource strategies have
a tight fit to the overall strategies of the
business.
• As such, it limits the role of HR to a reactive,
organizational function and under-emphasizes
the importance of societal and other external
factors.
• For example, it is difficult to see how the
current concern for work life balance could be
integrated into this model.
 The Matching Model—Devanna et al’s(1984)
Political Forces

Mission
&
Strategy

Economic forces Cultural

Forces
Firm

Human
Organizatio
Resource
n
Managemen
Structure
t
 Harvard Model
• The Harvard framework for HRM is an HR
model comprised of six components.
• The model starts, on the left, with stakeholder
interest. These stakeholders include
shareholders, management, employee groups,
government, and more. These interests define
the HRM policies.
• At the same time, situational factors influence
these interests. Situational factors include
workforce characteristics, unions, and all the
other factors that were also listed in the 8-box
model.
• Situational factors and stakeholder interest
influence HRM policies. These include the
core HR activities, like recruitment, training,
and reward systems.
 When done well, HRM policies lead to
positive HRM outcomes. These include the
previously mentioned retention, cost-
effectiveness, commitment, and
competence.
 These positive HRM outcomes lead to long-
term consequences. These can be
individual, organizational, and societal.
Harvard Model