HRM - Unit I - Complete.pptx

HUMAN RESOURCES MANAGEMENT
UNIT – I: INTRODUCTION TO HRM
UNIVERSITY COLLEGE OF MANAGEMENT HYDERABAD
JNTU HYDERABAD
MBA SEMESTER – II

HRM – Unit Titles
 UNIT I: INTRODUCTION TO HRM
 Unit II: Recruitment & Selection
 Unit III: Training & Development and
Performance Management
 Unit IV: Compensation & Employee Welfare
 Unit V: Employee Relations

Unit – I: Introduction of HRM
Syllabus: Introduction to HRM, Line Managers, HR Role and
Responsibilities, New Approaches to Organizing HR,
Globalization & Competition Trends, Technological Trends,
Trends in Nature of Work, Workforce and Demographic Trends,
Economic Challenges, Equal Employment Opportunity, HR Score
Card. Human Resource Information System (HRIS), e-HRM, HR
Analytics: An Introduction.
High Performance Work System’s  Moved to Unit-III.

Introduction to HRM
 Understanding the three terms
 Human
 Resources
 Management
 The ‘Human’ Advantage

The ‘Resources’ part
 Resources: 5 ‘M’s of Management
 Manpower
 Money
 Materials
 Machinery
 Methods

 How a ‘Human’ is different from other resources
 Has life
 Has a head (brain) and heart to think and feel
 Knows language(s) & Can communicate
 Can understand and follow (instructions)
 Can learn and retain knowledge
 Is trainable and can train others
 Can think, analyze and decide
 Can Manage and Lead
 Can Develop skills and Grow
 Can gain experience and add value etc.
The ‘Human’ part

The ‘Management’ part
Management/managing essentially involves five basic
functions
POSDCORB

The ‘Human’ Advantage
All resources get spent / exhausted / depleted but
Manpower becomes more valuable over a period.
“Man, of all the resources available to man, can
grow and develop”
– Peter Drucker

 Human Resource Management is the integration of all
processes, programmes and systems in an organization that
ensure staff are acquired and used in an effective way.
- Stephen P. Robbins et al.
 Human Resources Management refers to the policies, practices
and systems that influence employee’s behavior, attitudes and
performance.
- Gomez-Mejia et al.
 Human Resource Management refers to attracting, developing
and maintaining an effective workforce.
- Ronald J Ebert and Ricky W. Griffin
Definition of HRM by Various Authors

Definition of HRM by Various Authors
 Human Resource Management can be defined as “planning,
organizing, directing, controlling of procurement, development,
compensation, integration, maintenance and separation of human
resources to the end that individual, organizational and social
objectives are achieved.”
- Edwin Flippo
 Personnel management is “that part of management which is
concerned with people at work and with their relationship within
an enterprise. Its aim is to bring together and develop into an
effective organization of the men and women who make up
enterprise and having regard for the well – being of the individuals
and of working groups, to enable them to make their best
contribution to its success”.
- The National Institute of Personnel Management (NIPM) of India

Features of HRM
HRM is concerned with
1. Employees: Both as individuals and as groups in attaining goals; including
their behavior, emotional and social aspects.
2. Development of human resources: Their knowledge, skills, capabilities,
potential, for achieving goals and for job satisfaction.
3. Covers all levels: (i) Junior, middle, top; (ii) Unskilled, technical,
professional, managerial and clerical; (iii) Organized and unorganized.
4. All types of organizations in the world: Industry, services, trade,
commerce, economic, social, religious, political and government.
5. Continuous and never ending process: The HR processes are cyclical;
they and renew but never stop. Continued..

Features of HRM
6. Goal Orientation: Aims to attain the goals of individual, organizational
and societal
7. Organizational goals: May include survival, growth and development in
addition to profitability, productivity, innovation and excellence.
8. Individual employee goals: Job satisfaction, job security, high salary,
attractive fringe benefits, challenging work, pride, satisfaction,
recognition, opportunity for development.
9. Societal goals: Equal employment opportunity, protecting
disadvantaged, physically handicapped, minimization of inequality in
wages etc.
10. Line and Staff: All are responsible for management of their human
resources.

Features of HRM
11. Co-operation from Employees: HRM aims at securing unreserved co-
operation from all employees in order to attain predetermined goals
of the organization.
12. Works as the Central Subsystem: HRM works as the central
subsystem of an organization and it permeates all types of functional
management, viz. production management, marketing management
and financial management.

Why HRM is important?
1. So as to avoid manpower related mistakes viz.
 Hiring wrong people
 High turnover
 Inadequate training
 Low performance
 Unfairness in Compensation
 Employee safety issues
 Legal issues
2. Strategic Role it plays in organization by being a business partner and
through execution of various managerial and operational activities

LINE AND STAFF ASPECTS OF HRM
 Line: Employees who are directly involved in producing goods and/or
providing services of the company, contrary to staff who play a support role.
 Line Manager: A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing the organization’s tasks.
 Staff Manager: A manager who assists and advises line managers.
 If we put the term ‘HRM’ into perspective, all managers need to be called HR
Managers, because they get directly involved into recruiting, interviewing,
selecting and training of the employees of their respective functions.
 In spite of this, most organizations (will need to) have an exclusive HR
department with a top manager.
 Then in what way is a HR Manager is different from line managers?

 The difference is in terms of ‘Authority’.
 Authority can be described as the ‘right to make decisions, of direct
work of others, and to give orders. There is a difference between line
authority and staff authority.
 Authority in a line function creates a Superior – Subordinate / Order-
giver and Order-receiver relationship.
 On the other hand, staff authority creates an advisory relationship.
When a HR Manager suggests a particular method of executing a
recruiting / selecting / training employees, it comes under staff
authority.

 HR Responsibilities of Line Managers
1. Placing the right person in the right job at the right time
2. Inducting a new employee in the department
3. Training the employees for the jobs that are new to them and jobs
that are complex/difficult to do
4. Ensuring job performance of all team members is up to the mark
5. Ensuring the company’s policies and procedures are followed
properly
6. Controlling the labor costs
7. Maintaining the employee morale
8. Protecting the employees’ health and physical conditions etc.

HR – Roles and Responsibilities
HRM
Managerial
Functions
Operative
Functions

Managerial Functions of HRM
Managerial
HR
Planning Organizing Directing Controlling

(1) Planning
 It is a predetermined course of action
 A process of determining the organizational goals and
formulation of policies and programmed for achieving
them
 It is future oriented; concerned with clearly charting out
the desired direction of business activities in future
 Forecasting is the key element; managers of all functions
depend on the Planning Function

(2) Organizing
 It is a process by which the structure and allocation of jobs are
determined
 Therefore, it involves several things such as
o Establishing departments – dealing complex relationships
o Assigning specific tasks to the team below
o Delegating authority to team members
o Establishing channels of authority and communication
o Coordinating the work of entire team etc.

(3) Directing (Leading)
 It is the execution of planning
 It is a process of activating group efforts to achieve the
desired goals
 It includes activities like
o Providing direction to the team
o Ensuring to get jobs done by team members
o Maintaining morale & motivating people around

(4) Controlling
 It is about verification of ‘performance’ to learn if people
are conforming to the plans and directions
 Verifying plans vs actuals
 Identification of deviations and correcting them
 Adjusting operations/actions to predetermined plans
 Auditing, surveying, conducting in-depth discussions
(interviews) will serve as means for controlling

Operative
HR
Procurement Development Compensation Integration Maintenance
Operative Functions of HRM

Operative Functions of HRM
Minor changes applicable

Operative
HR
Procurement
Job Analysis
Job
Description
Job
Specification
HR Planning Recruitment Selection Placement
Induction/
Orientation
Development Compensation Integration Maintenance
HR OPERATIVE FUNCTIONS – (1) PROCUREMENT

 Job analysis is a primary tool in human resource management. In
this method, a HR Manager tries to gather, synthesize and
implement the information available regarding the workforce in
the organization. He undertakes job analysis so as to put a
right person on right job.
 Definition: It is a systematic process used to identify the tasks,
duties, responsibilities and working conditions associated with a
job and the knowledge, skills, abilities, i.e., KSAs and other
characteristics required to perform that job.

The information collected under job analysis is:
 Nature of jobs required in an organization
 Nature/ size of organizational structure
 Type of people required to fit that structure
 The relationship of the job with other jobs in the organization
 Kind of qualifications and academic background required for
performing these jobs
 Description of physical working conditions to support the
activities of the concern.

 Job Analysis is the process of studying and collecting information
relating to the operations and responsibilities of a specific job. It
includes
 Collection of data, information, facts related to jobs and
resources
 Preparation of job descriptions, specifications, job requirements
etc. that help in identification of nature, level and quantum of
human resources
 Providing guidelines, plans and basis for job design and for all
operative functions of HRM.

There are two outcomes of job analysis:
 Job description
 Job specification

 Job Description is a broad written statement of a
particular job in an organization which evolves upon
conduction of detailed job analysis. It is a narration of
tasks, duties and responsibilities of a particular position
 Job Specification is a list of a job’s (job holder’s) human
requirements like requisite educational qualifications,
work experience, skills and personality aspects.
JA and JD Formats

 Human Resource Planning: It is the process of determining and
ensuring that the organization has adequate number of qualified
people, available at proper time and performing their jobs and
ensuring that (i) organizational needs are met and (ii) provide
satisfaction to the individuals involved
 Estimation of manpower for present, future based on
objectives and long range plans of the organization
 Calculation of net HR requirements is based on present
inventory

 Recruitment: It is the process of searching for prospective
employees and stimulating them to apply for jobs in an
organization. It deals with
 Verification of internal database to find if there are suitable
CVs available
 Creation/Identification of new sources of applicants
 Stimulating them to apply for jobs in the organization
 Striking a balance between internal and external sources

 Selection: It is the process of ascertaining the qualification, experience,
skills, knowledge etc. in order to determine the suitability of job
applicants, for a particular job. This involves activities like (i) Obtaining
application blanks from the applicants, (ii) developing/finalizing valid
and reliable testing techniques, (iii) formulating interview techniques,
(iv) conducting reference checks, (v) obtaining line manager &
Management’s final approval on selection (vi) sending the selected
candidates for medical examination, (vii) sending appointment letters
(and rejection letters to those who are not selected) and
(viii) employing the selected candidates who report for duty.

 Placement: It is the process of assigning the selected candidate
with the most suitable job in terms of job requirements, i.e.,
matching employee specification with job requirements. This
includes
 Counselling the functional managers regarding the placement
 Conducting follow up to check if the new employee is able to
adjust to the job requirements and performing well
 Correcting misplacements if any

 Induction Orientation: Induction and Orientation are the techniques by
which a new employee is rehabilitated to the new work environment
and introduced to policies, practices, purposes and people of the
organization
 Acquaint the employee with the company history, philosophy,
culture, objectives, policies etc.; career planning and development
opportunities; product, market share, social and community
standing etc.
 Introduce him/her to supervisors, peers and direct reports
 In case of need, mould the employee’s attitude by orienting
him/her to the new working and social environment

HR OPERATIVE FUNCTIONS – (2) DEVELOPMENT
Operative
HR
Procurement Development
Performance
Mgt. and
Appraisal
Training &
Development
Management
Development
Career
Planning &
Development
Internal
Mobility
Transfer Promotion Demotion
Change & Org.
Dev.
Compensation Integration Maintenance

Human Resource Development: It is the process of improving, moulding
and changing the skills, knowledge, creative ability, attitude, aptitude,
values, commitment etc., based on the current and future organizational
requirement. The functions include
 Performance Management & Appraisal
 Training & Development
 Management Development
 Career Planning and Development
 Internal Mobility
 Transfer
 Promotion
 Demotion

 Performance Management & Appraisal: It is the process of
facilitating the performance of an employee during a particular
period; systematically evaluating their job performance along with
their potential for development for future assignments. This
includes
 Developing policies, procedures and techniques
 Coordinating with the functional managers
 Monitoring and maintaining the execution of the process
 Evaluating the effectiveness of the various initiatives related to
the process

 Training and Development: It is the process of imparting training on
relevant functional and managerial competencies, i.e., on the knowledge,
skills and abilities KSAs. This includes
 Identification of individual training needs
 Developing suitable training modules and scheduling them
 Working in-tandem with the functional/line manager on the execution
of the training calendar
 Imparting the training – on the job, off the job, classroom, out bound
etc.
 Evaluating the effectiveness of the training programmes
 Making the necessary improvements in the process/quality of training

 Management Development: It is the process of designing and
conducting suitable executive development programmes so as to
manage the managerial and human relations skills of employees. This
includes
 Identification of areas for which management development is
required
 Conducting the MDPs
 Designing special development programmes for promotions
 Using services of specialists / utilizing the institutional executive
development programmes (EDPs)
 Evaluating the effectiveness of MDPs and EDPs

 Career Planning and Development: It is the planning of one’s
career and implementation of career plans by means of
education, training, job search and acquisition of work
experiences. It includes internal and external mobility.
 Internal Mobility: It includes vertical and horizontal movement of
an employee within an organization. It consists of transfer and
promotion.

 Transfer: It is the process of placing employees in the same level jobs
where they can be utilized more effectively in consistence with their
potentialities and needs of the employee as well as the organization. It
also deals with
 Developing transfer policies and procedures
 Guiding employees and line management on transfer
 Evaluating the execution of transfer policies and procedures

 Promotion: Promotion deals with the upward reassignment given to an
employee to occupy a higher level position that commands better status
and pay. This includes
 Formulating equitable, fair and consistent policies an procedures
 Advising management and employees on matters related to
promotion
 Evaluating the execution of promotion related policies and
procedures

 Demotion: It deals with downward reassignment to an employee in the
organization. This includes
 Developing equitable, fair and consistent demotion policies and
procedures
 Advising line managers on matters relating to demotions
 Oversee the implementation of demotion policies and procedures

 Change and Organization Development: Change implies the
creation of imbalances in the existent pattern or situation.
Organization Development is a planned process, designed to
improve organizational effectiveness and health through
modification of individual and group behavior, culture and
systems of the organization, using knowledge and technology
of applied behavioral sciences.

HR OPERATIVE FUNCTIONS – (3) COMPENSATION
Operative
HR
Procurement Development Compensation
Job Evaluation
Wage & Salary
Administration
Incentives Bonus Fringe Benefits
Social Security
Measures
Integration Maintenance

 Compensation: It is the process of providing adequate, equitable
and fair remuneration to the employees. It includes –
 Job Evaluation
 Wage and salary administration
 Incentive
 Bonus
 Fringe benefits
 Social security measures etc.

 Job Evaluation: It is the process of determining the relative
worth of jobs in the organization. This includes
 Selection of suitable job evaluation techniques
 Classification of jobs into various categories
 Determining relative value of jobs in various categories

 Wage and Salary Administration: It is the process of
developing and operating a suitable wage and salary program
for the employees. This includes -
 Conducting wage and salary survey
 Determining wage and salary rates based on various
factors
 Administering wage and salary programmes
 Evaluating the effectiveness of the process

 Incentives: It is the process of formulating, administrating
and reviewing the schemes of financial incentives in addition
to regular payment of wages and salaries. This includes -
 Formulating incentive payment schemes
 Helping functional managers on the execution of the
incentive policies
 Review them periodically to evaluate effectiveness

 Bonus: It is includes payment of statutory bonus according to the
Payment of Bonus Act, 1965 and its latest amendments.
 Fringe Benefits: These are the various benefits at the fringe of the
wage. Management provides these benefits to motivate the
employees and meet their life’s contingencies. These benefits
include (i) disablement benefit, (ii) housing facilities,
(iii) educational facilities to the employees and their children,
(iv) canteen facilities, (v) recreational facilities, (vi) conveyance
facilities, (vii) credit facilities, (viii) Legal clinics, (ix) medical,
maternity and welfare facilities and (x) company stores etc.

 Social Security Measures: Managements provide social security to
their employee in addition to the fringe benefits. These benefits
includes -
 Workmen’s compensation to those workers (or their dependents)
who involve in accidents
 Maternity benefit to women employees
 Sickness benefits and medical benefits
 Disablement benefits/allowance
 Dependent benefits
 Retirement benefits like provident fund, pension, gratuity etc.

HR OPERATIVE FUNCTIONS – (4) INTEGRATION
Operative
HR
Procurement Development Compensation Integration
Human
Relations
Industrial
Relations
Maintenance

 Human Relations: Practicing various human resource policies and
programmes like employment, development and compensation and
interaction among employees, create a sense of relationship between
individual employee and management, and among workers, trade
unions and the management.
 It is the interaction among human beings. Human relations is an area
of management in integrating people into work situations in a way
that motivates them to work together productively, cooperatively and
with economic, psychological ,social satisfaction.

 Human Relations: It includes
 Understanding and applying the models of perception, personality,
learning, intra and interpersonal relations, intra and inter group
relations
 Motivating the employees
 Boosting their morale
 Developing their communication skills
 Developing their leadership skills
 Redressing the employee grievances properly and in time by means
of a well formulated grievance procedure. continued

 Handling disciplinary cases by means of an established disciplinary
procedure
 Counseling the employees in solving their personal, family and work
problems and releasing their stress, strain and tensions
 Providing a comfortable work environment by reducing fatigue,
monotony, boredom and industrial accidents.
 Improving quality of work life of employees through participation and
other means
continued

 Industrial Relations refers to the study of relations among
employees, employer, government and trade unions. This includes
 Indian labor market
 Trade unionism
 Collective bargaining
 Industrial conflicts
 Worker’s participation in management and
 Quality circles

HR OPERATIVE FUNCTIONS – (5) MAINTENANCE
 Merely appointment and training of people is not sufficient; they
must be provided with good working conditions so that they may
like their work and workplace and maintain their efficiency.
 Working conditions certainly influence the motivation and morale
of the employees.
 These include measures taken for health, safety, and comfort of the
workforce.
 The HR department should also provide for various welfare services
which relate to the physical and social well-being of the employees.
Continued

Operative
HR
Procurement Development Compensation Integration Maintenance
Employee
Health &
Safety
Research &
Audit
HR Record-
keeping
Welfare
Schemes
All Other
Facilities

These may include
 Employee Health and Safety
 Research and Audit
 HR Recordkeeping
 Welfare Schemes ( and Social Security)
 In addition to provision of cafeteria, rest rooms, counseling,
group insurance, education for children of employees,
recreational facilities etc.

HR – ORGANIZATION CHART-SMALL COMPANY

HR – ORGANIZATION CHART-LARGE COMPANY

HR – ORGANIZATION CHART – LARGE COMPANY

HR’s CHANGING ROLE
 Taken over hiring and firing from supervisors; managing
payroll, and benefit plans administration.
 Is protecting the firm in its interaction with unions (labor
relations).
 Assuming organizational responsibilities for equal
employment and affirmative action.

NEW APPROACHES TO ORGANIZING HR
Transactional HR
group
Corporate
HR group
Embedded
HR unit
New HR Services Groups
Centers of
Expertise

 The Transactional HR group uses centralized call centers and
outsourcing arrangements to provide support for day-to-day
transactional activities. In one survey, about 75% of respondents
said their firms were providing transactional, administrative human
resource services through such arrangements.
 The Corporate HR group focuses on assisting top management in
top level big picture issues such as developing and explaining the
personnel aspects of the company’s long-term strategic plan.

 The embedded HR unit assigns HR generalists (also known as
relationship managers or HR business partners) directly to
departments like sales and production. They provide the localized
human resource management assistance the departments need.
 The centers of expertise (or In-house HR Centers of excellence)
are like specialized HR consulting firms within the company for
instance, they provide specialized assistance in areas such as
organizational change.

IBM CASELET
Randall MacDonald, IBM s senior vice president of human resources, noted that the
traditional human resource organization often isolates HR functions into silos such
as recruitment, training, and employee relations. He says this silo approach often
means there is no one team of human resource specialists focusing on the needs of
specific groups of employees. MacDonald therefore reorganized IBMs human
resource function. He segmented IBMs 3,30,000 employees into three sets of
customers: executive and technical employees, managers, and rank and file.
Separate human resource management teams consisting of recruitment, training,
and compensation specialists, for instance, now focus on serving the needs of each
employee segment. These specialized teams help ensure that the employees in each
segment get precisely the talent, learning, and compensation they require to
support IBMs needs.

Demographic Trends
Generation “Y”
Retirees
Nontraditional Workers
Trends Shaping
Human Resources
TRENDS SHAPING HUMAN RESOURCE MANAGEMENT

 Workforce Demographics and Diversity Trends in India
• On one hand there is recession and huge job losses; on the other
hand there is an acute shortage of skilled workforce.
• This has been identified as a hurdle in achieving the demographic
dividend.
• Hospitality sector is expected to require around 2,00,000 trained
people whereas the supply is less than 10% of it.
• Core sectors like Power and Petroleum have also been reporting
severe skills shortages.
• The growth in other sectors like manufacturing, retail, financial
services etc. also require skilled manpower which is in shortage
• Some employers find Generation Y or Millennials a challenge to
deal with, which can be a worldwide phenomenon.

 Cohorts of Generations
• Baby Boomers: Baby boomers were born between 1946 and 1964.
They're currently between 59-77 years old
• Gen X: Gen X was born between 1965 and 1979/80 and are currently
between 43-56 years old
• Gen Y: Gen Y, or Millennials, were born between 1981 and 1994/96.
They are currently between 27-42 years old
• Gen Y.1  27-31 years old
• Gen Y.2  31-42 years old
• Gen Z: Gen Z is the newest generation to be named and were born
between 1997 and 2012/15. They are currently between 10-25 years old

INDIAN POPULATION – AGE WISE BREAKDOWN

(Demographic Groups as a Percent of the Workforce, 1992–2024)

WORLD POPULATION – AVERAGE AGE
https://www.nexdigm.com/doing-business-in-india/population.php

DISTRIBUTION OF WORKFORCE ACROSS
ECONOMIC SECTORS: 2010-2020

 Trends in how people work
• Contribution of Service Sector has outgrown the agricultural
sector.
• By 2025, service providing companies are expected to
account for up to 87% of salaries.
• With advancements in technology and the growing need for
work-life balance, the way we work has been changing
continuously.
• Unlike ‘working at office’, ‘work from home’ or other places
has become a possibility, of late the necessity.
• Freelance jobs are becoming more popular; Truelancer is a
platform for people who look for such jobs.
….continued

 Trends in how people work
• On Demand Workers: In companies like Ola and Uber, employees are
not employees at all.
• They are more like who work as freelancers; they are independent
contractors who work when they want on what they want.
• For example Airbnb vs Hilton.
• While companies look for this kind of ‘extended workforces’, HR
should design policies for these ‘non-employees’ .
• Human Capital: One big consequence of the demographic and
changing workforce trends is employer’s growing emphasis on their
workers’ knowledge, education, training, skills and expertise.

 Globalization Trends
• Globalization refers to companies extending their sales, ownership
and/or manufacturing to new markets abroad.
• For example Apple gets iPhones assembled in China, Xiaomi
assembles their phones in India and Hisense manufactures their
televisions in India.
• Free trade areas, i.e., agreements to reduce tariffs and barriers
encourage international trade, For example NAFTA and EU
• Globalization: It boomed for the last 50 years, evolving economic and
political approaches have supported this
• Companies place their manpower in various countries, not just to
seek cheaper labor but also to tap into new markets. For example GE
placed over 10,000 employees in France.
• Indian IT companies have certainly benefited from the liberal policies

 Technology Trends
• Of all trends, it may be technology that most characterizes the
trends that shape human resources management today.
• For example a social media platform / tool like LinkedIn can
produce as many as 80% recruits; which can effectively bypass the
HR team
• Five main types of digital technologies are driving the transfer of
functionality of HR towards automation
 Social Media
 Mobile Application
 Cloud Computing
 Data Analytics
 Talent Analytics

 Today’s most vehemently conversed and the discussed subject is global
‘Economic Slowdown’; right from the security guard to the top bosses
of an organization, all seem to have some opinion or other, on this
growing crisis.
 According to an article published in ‘The National Interest’, the year
ahead (2020-21), the global economy will be facing challenges &
uncertainties, coupled with disruption and financial vulnerabilities.
 Giving references to a report issued by the United Nations, ‘The
Guardian’ quoted that the weaker growth in both advanced and
developing nations will result in the high probability of a global
recession in 2020, as a present-day danger and the policy-makers must
refocus on jobs, wages & investments.
 However, if reports are to be believed in the Indian context, then the
slowdown in the economic growth seems to have bottomed out and is
anticipated to pick-up in 2020-21.
Economic Challenges for HR

 The slump in the economy has direct bearing on the businesses as it will
lead to lower demand for products and services, leading to idling
capacity, bankruptcy, and massive job loss.
 As revenue and profit margins go down, the organizations tend to either
shrink budgets on hiring or put hiring on hold completely.
 In pursuance of cutting costs and enhance the bottom line, the
organizations may cease their plans of procuring machines,
restrain research and development ideas, and halt new product
launches, expenditures assigned for marketing & advertisement may
also be reduced.

 In these economically depressed situation where business sentiments
are down, HR plays a significant role by partnering with the business
leaders to make sure that the organization remains sustainable and at
the same time ensure that apposite steps are taken to attract, retain,
train and engage its employees.
 While the business may expect human resource specialist to work on
reducing cost through retrenchment etc., HR will have to work diligently
with management and assist on taking the right actions to ensure long-
term sustenance of the organization.
 HR will have to enable in making the right balance between the short
term goals of the organization and the long term sustenance and
development of the organization.
 HR will be expected to look at ways of improving or generating
productivity while reducing the overall cost of the business.

 In the present context, as the economic slump continues to emerge, employees
across the industries are concerned about the security of their jobs.
 In a situation, when ambiguity prevails, there are higher possibilities that
employees will decide to move on to jobs with higher security and where they
will be able to get greater assurance for a longer work tenure.
 The loss of talent can lead to an impact on business results and customer
service and can further weaken the capability to build a leadership pipeline for
the future.
 It’s a difficult situation for organizations during the times of economic
slowdown when employees with the right kind of competencies decide to move
out of the organization.
 During these difficult times, the need of the hour is to maintain higher
productivity with economies of scale.
 Henceforward, in the context of economic slowdown, the most challenging
objective for HR professionals is concerning to retention of their talent and
keeping them engaged.

 The HR scorecard is a method for Human Resources to position itself as a
strategic planning partner with line managers and executives within an
organization.
 The HR Scorecard
o Measures HR Deliverables and objectives
o Quantitatively demonstrate HR’s contribution to firm’s financial
results and profitability
o Measure the degree of alignment between business strategy and HR
deliverables
o HR Scorecard links the things people do with the strategy of the firm.
HR SCORECARD

 The development of a HR Scorecard must be done with four
perspectives in mind as follows
– A financial perspective to address strategies that satisfy customers
– A customer perspective that asks what customer want
– An internal perspective that addresses the stated desires of
customers and designs processes consistent with those desired
learning perspective that taken into account .
– HR employees can implement steps to align HR goals with the
overall company mission, vision and business objectives.
HR SCORECARD

The complete process may be described in seven steps:
1. Clarify the business strategy
2. Develop HR Architecture
3. Create a strategy map of the firm
• Business Indicators
• Results
4. Identify HR Deliverables in the map
5. Align HR Architecture with HR Deliverables
6. Design HR Scorecard
7. Execute/Implement
HR SCORECARD

There are Five Steps :
1. Create an HR Strategy Map
2. Identify HR Deliverables
3. Creation of HR Policies, Processes, and Practices
4. Aligning HR Systems
5. Creating HR Efficiencies
Steps to create a HR scorecard

(1) Creation of HR Strategy Map

 Policies: A strong employer branding policy will help in building
a strong reputation that will help in becoming a top employer
 Processes: Key to decreasing lead time will be an optimization
between how recruiters and managers communicate.
Oftentimes, managers take a long time to review resumes and
plan interviews with candidates. Changing these slow processes
into workflows that guarantee next-day action, can decrease
the time to hire with days, sometimes weeks. …. Continued
(3) Creation of HR Policies, Processes, and Practices

 Processes: …Continued
This is one of the many processes that can be implemented to
enable better performance on the HR deliverables.
Another example could be the application process for
candidates. The candidate experience will be vital to attracting
top candidates and in ensuring a good rating in the top
employer benchmark.
 Practices: This looks at the specific practices that help HR
achieve the aforementioned deliverables.
(3) Creation of HR Policies, Processes, and Practices

 System alignment is not about software systems. Rather, it is about
aligning the different HR practices to create synergy.
 Aligning these HR systems is key in performing on the HR
deliverables.
 For example, the employee branding efforts should focus on the
type of workers that the employer is actually looking for. In
addition, decreasing lead time by rushing through the process may
lead to a lower quality of hire, resulting in a mismatch between
what HR is doing, and some of the goals it tries to achieve.
(4) Aligning HR Systems

• Traditionally, HR has focused a lot on creating efficiencies. When it
comes to creating an HR scorecard, some efficiencies have to be thrown
out of the window.
• The simple reason here is that to get, for example, a higher quality of
hire, your cost to hire someone might go up. In our example, the quality
of hire is a strategic HR measurement.
• Investing money into increasing the quality of hire is well worth it. This
justifies investments in assessments, employer branding projects, and
other HR initiatives that boost the main HR deliverables.
(5) Creating HR Efficiencies

 The HRD SCORECARD 2500TM is an innovative tool designed by Prof.
Rao (Chairman of TVRLS) to assesses the maturity level of HR Systems in
an organization. It assigns a four-letter rating to grade four critical
dimensions of HRD, which are vital contributors to organizational
performance:
– HRD systems maturity
– HRD competencies
– HRD culture and values
– HRD linkages to business goals.
 The scores obtained in the scorecard can be used to further benchmark
the maturity level of the HRD function in the organization.
HR SCORECARD – Prof. TV Rao

• A HR information system (HRIS) is a computer-based information
system for managing the administration of HR processes and
procedures.
• Tannenbaum (1990) defined an HRIS as any system that helps an
organization to ‘acquire, store, manipulate, analyze, retrieve and
distribute information about an organization’s human resources’.
• Kettley and Reilly (2003) defined an HRIS as ‘a fully integrated,
organization-wide network of HR-related data, information, services,
tools and transactions’. The term ‘e-HR’ refers in more general terms to
the use of computer technology within the HR function.
Human Resource Information Systems

The Chartered Institute of Personnel Development (CIPD) (2007)
survey established that the top 10 reasons for introducing an HRIS
were:
1. To improve quality of information available.
2. To reduce administrative burden on the HR department.
3. To improve speed at which information is available.
4. To improve flexibility of information to support business
planning.
5. To improve services to employees.
Reasons for introducing an HRIS

6. To produce HR metrics
7. To aid human capital reporting
8. To improve productivity
9. To reduce operational costs
10. To manage people’s working time more effectively
Reasons for introducing an HRIS

1. Absence management.
2. Training and development.
3. Rewards.
4. Managing diversity.
5. Recruitment and selection.
6. Other (usually payroll).
7. Appraisal/performance management.
8. HR planning.
9. Knowledge management.
10. Expenses.
HRIS - Reasons of top 10 users

 Equal Employment Opportunity or EEO is the term used to
describe the laws, regulations and processes related to fair
treatment of employees.
 EEO means that employment decisions must be made on the basis
of job requirements and worker qualifications.
 EEO is an employment practice where employers do not engage in
employment activities that are prohibited by law.
 It is illegal for employers to discriminate against an applicant or
employee on the basis of Race, Age, Color, Sex, Religion, National
origin etc.
Equal Employment Opportunity

Policy Objective
 The overall policy objective for the employment discrimination laws
being examined is summed up by the phrase equal opportunity.
 These laws generally do not aim to create equal outcomes, but rather
seek to ensure that all employees or job applicants have an equal
opportunity to engage in the employment market.
 In other words, these laws try to ‘level the playing field' so that certain
classes of people who have been discriminated in the past are not
subjected to adverse treatment, based upon certain characteristics that
have nothing to do with being a qualified job applicant or employee.
Equal Employment Opportunity

 Title VII of the Civil Rights Act (1964)
• An employer cannot discriminate on the basis of race, color,
religion, sex, or national origin with respect to employment.
• This sets up the EEOC (Equal Employment Opportunity
Commission)
 Executive Orders: Require affirmative action – steps that are
taken for the purpose of eliminating the present effects of past
discrimination
Equal Employment Opportunity (1964-1991)

Employment Discrimination Laws
 Equal Pay Act of 1963
• The act requiring equal pay for equal work, regardless of sex.
 Age Discrimination in Employment Act of 1967 (ADEA)
• The act prohibiting arbitrary age discrimination and
specifically protecting individuals over 40 years old.
 Vocational Rehabilitation Act of 1973
• The act requiring certain federal contractors to take
affirmative action for disabled persons.

Employment Discrimination Laws (cont’d)
 Vietnam Era: Veterans’ Readjustment Act of 1974
• An act requiring that employers with government
contracts take affirmative action to hire disabled
veterans.
 Pregnancy Discrimination Act (PDA) of 1978
• A Title VII amendment that prohibits sex discrimination
based on “pregnancy, childbirth, or related medical
conditions.”

Sexual Harassment
 Unwelcome sexual advances, requests for sexual favors, and other
verbal or physical (mis)conduct of a sexual nature.
Proving Sexual Harassment
 Quid pro quo
• Rejecting a supervisor’s advances adversely affects the employee’s
tangible benefits, such as raises or promotions.
 Hostile environment created by supervisors
• Behaviors that substantially affect an employee’s emotional and
psychological ability to the point that they affect the employee’s
ability to continue with the employee’s job.
 Hostile environment created by co-workers or non-employees
• Advances by the employee’s co-workers (or even the employer’s
customers) can cause harassment.

 E-HRM is the application of IT for HR practices which enables easy
interactions within the employee and employers. It stores
information regarding payroll, employee personal data,
performance management, training, recruitment, and strategic
orientation.
 Definition:
– (1) “a way of implementing HR strategies, policies and practices
in organizations through a conscious and directed support of
and/or with the full use of web-technology-based channels”
– (2) “the planning, implementation, and application of
information systems for both networking and supporting actors
in their shared performing of HR activities”.
In the view of Michael Armstrong, e-HR provides the information
required to manage HR processes.
E-HRM

1. Operational: Operational E-HRM is concerned with administrative
functions – payroll and employee personal data, for example.
2. Relational: Relational E-HRM is concerned with supporting business
processes by means of training, recruitment, performance
management and so forth.
3. Transformational: Transformational E-HRM is concerned with
strategic HR activities such as knowledge management, strategic re-
orientation. An organization may choose to pursue E-HRM policies
from any number of these tiers to achieve their HR goals.
Types of E-HRM

E-HRM is not suitable for organizations where employees are not
prepared to accept or use it.
Major benefits/advantages of E-HRM are as follows:
 Improving quality of services.
 Ensuring efficient services at an amazing speed.
 Facilitating routine tasks like record keeping, maintaining the
portfolio, collecting and storing relevant information regarding the
human resource.
 Helping the reduction of costly time and labor.
 Improving accuracy and reducing human bias.
 Making, reporting and analyzing data quickly.
Advantages of E-HRM

 Benefiting everyone through standardization and automation.
 Handling bundles of employee data from multiple locations fairly
and quickly.
 Performing crucial functions of HRM such as recruitment,
selection, training, and development by using web-based
technology.
 Playing decisive roles towards a paperless office.
 Maintaining anonymity of staff in evaluation/feedback giving.
Advantages of E-HRM

 E-Recruitment
 E-Selection
 E-Learning
 E-Performance Management
 E-Compensation etc.
https://www.iedunote.com/e-hrm
Functional Areas of E-HRM

 In the past century, Human Resource Management has changed
dramatically. It has shifted from an operational discipline towards a
more strategic one.
 The popularity of the term Strategic Human Resource Management
(SHRM) exemplifies this. Further, the reach of HR is expanding in the
direction of Analytics.
 HR analytics which may also referred to as people analytics, workforce
analytics, or talent analytics, involves gathering together, analyzing, and
reporting HR data.
 It enables your organization to measure the impact of a range of HR
metrics on overall business performance and make decisions based on
data.
Introduction to HR Analytics

 In other words, HR analytics is a data-driven approach toward
Human Resources Management.
 HR analytics is a fairly novel tool. This means it is still largely
unexplored in scientific literature.
 The best-known scientific HR analytics definition is by Heuvel &
Bondarouk. 
 According to them, ’HR analytics is the systematic identification
and quantification of the people drivers of business
outcomes’ (Heuvel & Bondarouk, 2016).
Introduction to HR Analytics

Types of HR Analytics
1. Descriptive analytics
 The first type of HR analytics on the list is descriptive analytics. This is
the most basic type that analyzes data patterns to gain insight into the
past.
 It is known as decision analytics, and uses statistical analysis techniques
to explain or summarize a particular set of historical, raw data. It
focuses on past data to account for what happened but doesn’t make
predictions for the future.
 Descriptive analytics can use a combination of numerical data and
qualitative data. It involves performing mathematical calculations, such
as central tendency, frequency, variation, ranking, range, deviation, etc.

 The first type of HR analytics on the list is descriptive analytics. This is the
most basic type that analyzes data patterns to gain insight into the past.
 It is known as decision analytics, and uses statistical analysis techniques to
explain or summarize a particular set of historical, raw data.
 It focuses on past data to account for what happened but doesn’t make
predictions for the future.
 Descriptive analytics can use a combination of numerical data and
qualitative data. It involves performing mathematical calculations, such as
central tendency, frequency, variation, ranking, range, deviation, etc.
 This allows HR to see patterns and inconsistencies to improve planning.
 Descriptive analytics can help with: 

Descriptive analytics can help with:
 Assessing behavior
 Comparing characteristics across time
 Spotting anomalies
 Identifying strengths and weaknesses

2. Diagnostic analytics
 Diagnostic analytics takes descriptive analytics to the next level by
providing an explanation for what has been revealed. It aims to
determine the underlying reasons for what the data exposes.
 Although it is based on the same historical data as descriptive analytics,
there is a key difference. Diagnostic analytics goes into the next step of
summarizing what happened in understandable terms. It digs for the
“why” behind the data’s trends, correlations, and anomalies.
 Conducting a diagnostic analysis typically involves the following steps:


Conducting a diagnostic analysis typically involves the following steps: 
1. Identifying the patterns and anomalies within the data that raise
questions and need to be studied further.
2. Discovering what factors could be contributing to the patterns and
anomalies to identify the relevant data.
3. Determining causal connections by analyzing the data with various
methods.

There are multiple diagnostic analytics techniques, including::
 Data drilling: Taking information from a more general overview and
providing a more granular view of the data.
 Data mining: Extracting patterns from data to help predict future
events
 Probability theory: Quantifying uncertain measures of random events
 Regression analysis: Determining which variables will impact an
outcome
 Correlation analysis: Tests the relationships between variables
 Statistical analysis: Collecting and interpreting data to determine
underlying patterns

3. Predictive analytics estimates what might happen in the future; it forecasts
future outcomes.
 The process involves categorizing past and present data to isolate patterns,
correlations, and irregularities followed by estimating a model to predict what
will occur in the future.
 Then the model’s accuracy is evaluated by applying it to new data. Predictive
HR analytics support better HR decisions. It translates historical data gathered
from areas, such as job skills, employee engagement, productivity, resumes,
etc. into forecasts about what to expect in the future.
 These predictions furnish HR leaders with information that will improve
decision-making in areas such as hiring the right candidates, bridging the skills
gap, and retaining top talent.

4. Prescriptive analytics
 Prescriptive analytics is the final and most complex stage of the analytics
journey that transfers predictive analytics into ideas for what to do next.
 A general prescriptive analytics definition would be the targeted
recommendation for decision options and actions based on the findings of
predictive analytics. It offers options for where and how to act to achieve
success.
 Prescriptive analytics relies on big data and uses an assortment of technical
tools, including:
 Machine learning
 Algorithms
 Artificial intelligence
 Pattern recognition

Examples of HR Metrics
https://www.aihr.com/blog/14-hr-metrics-examples/
https://www.aihr.com/blog/hr-metrics-cheat-sheet/

HRM - Unit I - Complete.pptx

More Related Content

What's hot (20)

Similar to HRM - Unit I - Complete.pptx (20)

More from saipawanism (7)

Recently uploaded (20)

HRM - Unit I - Complete.pptx