2
Chaper-01
Slide-01
Human Resource ManagementAt a Glance
1. Introduction
HRM: Conceptual frameworks
The organization of HR Department
HRM: Challenges
(a) Environmental
(b) International
(c) Equal employment opportunity
2. Attracting human resources
Job analysis
HR Planning
Staffing (recruitmentt and selection)
3.
3
Slide-01 (Contd.)
Human ResourceManagement At a Glance
3. Developing human resources
Training and development
Performance appraisal
4. Maintaining human resources
Compensation
Career planning
5. Managing labor relations
Unionization
Collective bargaining
4.
4
Slide-02
Introduction to HumanResource
Management:
A Conceptual Framework
1. Introduction: Conceptualization of organization and
organization process basic elements of organizing
managing organization design, managing
human resources.
2. Defining human resource and stating the components
of human resource development paradigm.
3. What is human resource management?: Definition,
activities and its distinctions from personnel
management.
4. Evolution of human resource management: Concept
and time perspectives.
5.
5
Slide-02 (Contd.)
Introduction toHuman Resource
Management:
A Conceptual Framework
5. Functions of human resource management: Managerial and
Operative.
6. Organizations vis – a vis human resources: The central
challenges to organizations, human resource as a central
sub-system in an organization, distinctions between
traditional HR and strategic HR and the strategic role of
human resource in an organization.
7. The goals of HRM/Serving multiple stakeholders of HRM.
8. Who is responsible for HRM?
9. Current trends in HRM
10. Concluding Remarks.
Source: Managing Human Resources
by
6.
6
Slide-03
Definition of HumanResource
Human resource is the total knowledge, abilities, skills,
talents and aptitudes of an organization’s workforce.
The values, ethics, beliefs of an individual’s working in
an organization also form a part of human resource.
According to I werts, “Human resource is the
managerial, scientific, engineering, technical traits and
other skills and are employed in creating, designing and
developing organization, managing and operating
productive and service enterprises and institutions.”
* Human population is transformed into human
resource or human capital basically through education
and training.
7.
7
Slide-4
Component of HumanResource
Development Paradigm
1. Productivity
2. Equity
3. Sustainability
4. Empowerment
8.
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Slide-05
Human Resource Management
HumanResource Management is about managing people in organization
as effectively as possible for the good of the employees, the company
and society.
According to Flippo, “Human resource management is the planning,
organizing, directing and controlling of the procurement development,
compensation, integration, maintenance and reproduction of human
resource to the end that individual, organizational and social objectives
are accomplished.”
Human resource management can also be defined as attracting human
resources (job analysis, HR Planning and Staffing), development, and
performance appraisal, maintaining human resources training and
maintaining human resources (compensating and career planning) and
managing labor relations 9uniionization and collective bargaining).
Human resource management involves the acquisition, retention and
development of human resource necessary for organizational success.
9.
9
Slide-06
Activities of HumanResource Management
Job analysis: Job analysis is the process of describing
and recording aspects of jobs Viz purposes, duties and
other requirements necessary to perform the job (job
specification)
HR planning: Human resource planning is defined as
the process of determining manpower requirements
and the means for meeting those requirements in
order to carry out the integrated plan of the
organization. HR planning systematically forecasts an
organizations future demand for land apply of
manpowers/employees.
10.
10
Slide-06 (Contd.) I
Staffing:Staffing basically refers to recruitment and
selection. Recruitment is the set of activities used to
obtain a pool of qualified job applicants, while
selection is the process of choosing from amongst
potentially good candidates, the most right person for
the right king of job, both for long and short term
positions.
Training and development: Training refers to the
process of teaching current employees the basic skills
they need to perform their jobs, while development is
any attempt to improve current or future
performance of employees by imparting knowledge,
changing attitudes or increasing skills.
11.
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Slide-06 (Contd.) II
Performanceappraisal: Performance appraisal refers
to a formal, structured way to measuring, evaluating
and influencing an employee.
Compensation: In literary sense, compensation
means to counterbalance, or to offset or to make up.
It implies an exchange. Thus compensation in
management, so far it relates to employees, involves
the assessment of employee contribution in order to
distribute fairly and equitably both monetary and non
monetary rewards in exchange for those
contributions.
Career Planning: Career planning is the process of
identifying career goals and establishing activities that
must be accomplished to retain these goals.
12.
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Slide-06 (Contd.) III
Unionization:A union is the legal body that has
authority to negotiate with an employer on behalf of
the employee over wages and working conditions.
Unionization is thus an effort by employees to act as a
single unit in dealing with managements over their
work.
Collective bargaining: Collective bargaining is a
method of determining terms and conditions of
employment which utilizes the process of negotiation
and agreement between representatives of
management and employees.
13.
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Slide-07
Differences Between PersonalManagement and HRM
Personnel Management Vs HRM
Personnel Management HRM
1. Personnel management means
management of persons/people employed.
1. HRM is the management of
employees, skills, knowledge,
abilities, creativity etc.
2. Personnel management deals with
the affairs of the working employees
only.
2. HRM is a comprehensive concept.
It includes planning and forecasting
the need for employees as well.
3. Personnel management considers
employees as just one resource.
3. HR is not just one resource, it helps
other resources to perform their role.
4. Employees in personnel
management is mostly treated as an
economic man, as his services are
exchanged for wage/salary
4. Employee in HRM is treated not
only as economic man but also as
social and psychological man.
5. Employees are treated as cost
centre and therefore management
controls the cost of labor.
5. Employees are treated as profit
centre and therefore invests capital
for human resource development
and future utility.
14.
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Slide-08
Evolution of HRM(Concept perspective)
The commodity concept (something to be bought & sold)
The factor of production concept (employees were considered a factor
of production as land, machines, materials etc.)
The paternalistic approach (providing welfare facilities to the workers)
The humanitarian concept (based on the belief that employees have
certain inalienable rights as human being and it is the duty of the
employers to protect those)
The behavioral human resource concept (based on the belief that
employees are the most important assets of an organization)
The emerging concept (employees should be considered as partners in
the progress of the organization) (page 2.5-2.6 of Gupta & Joshi)
15.
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Slide-09
Evolution of HRM(Time Perspectives)
1. Pre-industrial revolution (craft system/working at
home and working manually) [workers role was most
prominent]
2. The period of emergence of industrial revolution (use
of machines/factory system of production) [workers
were being partly/largely replaced by machines]
3. Post industrial revolution
a. Classical management (particularly scientific
management) [workers were treated as machines]
b. Neoclassical/behavioral management (particularly
human relations approach.
16.
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Slide-09 (Contd.)
Infact HRwas always important since it played
outstanding role in the development process of human
civilization though the term HRM came in the forefront
only around 1960 and become popular only during 1980
when the Americans started using it. The important
reasons are;
1. By 1980, Us economy was being challenged by
overseas competitors particularity by Japan (a)
Productivity of American worker was questioned. (b)
decline rate of innovation in the USA.
2. The US literature on ‘excellence’ started talking about
the outstanding role of committed and empowered
employees in management of organization in general.
17.
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Slide-10
Functions of HRM
(Managerialand Operative Functions)
Managerial Functions
Planning Organising Leading Controlling
Operative
Functions
Attracting HR Development of HR Maintaining HR
Managing
Lab-
Management
Relations
18.
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Slide-11
Managerial Functions ofHRM
Managerial functions of human resource
management involve planning, organizing, leading
and controlling as it normally happens in managing
any organization, but in this case they concern as
much as these relate to human resource aspect of
management only.
The managerial functions influence the operative
functions in all possible ways.
19.
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Slide-12
Operative Functions ofManagement
1. Understanding the environment of human resource
management.
2. Managing organizational changes.
3. Attracting human resource: Job analysis, HR planning
and staffing.
4. Developing human resource: Training and development
and performance appraisal.
5. Maintaining human resource: Compensating and career
planning.
6. Managing Labor management relations: Unionization
and collective bargaining.
20.
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Slide-13
The Central Challengesto Organizations
Central Challenge:
Better
Organization
Global
competitive
Challenges
Workforce
diversity
challenges
Population-
growth
challenges
Social
responsibility
challenges
Unemployment
challenges
Unknown
challenges
Ethical challenges
Medical, food,
housing challenges
21.
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Slide-14
Human Resources asA Central Sub-System
In An Organization
Organisation System
Source: HR Management by Subha, page 11
Human
Resources
Sub-
System
Material
Sub-
System
Technolog
ySub-
System
Marketing
Sub-
System
Financial
Sub-
System
22.
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Slide-15
Traditional HR VSStrategic HR
Strategic HR is a long term direction of the HR function in an
organization. It describes the best options suitable to an
organizations for managing its human resources in line with
available system and processes, resources and the
environment.
The main points of distinction between traditional and
strategic HR are as follows:
1. The focus of traditional HR is on employee relations
whereas in strategic HR the focus in on partnership with
internal and external groups.
2. Traditional HR is transactional in nature, whereas
strategic HR is transformational in nature, in that it helps
people and the organization to adopt, learn and act
quickly.
23.
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Slide-15 (Contd.)
3. Theinitiatives of employees in traditional HR are slow,
reactive and fragmented whereas in strategic HR these are fast,
proactive and integrated.
4. Traditional HR is characterized by tight controls and excessive
regulation, whereas in strategic HR, operations are controlled
by whatever is necessary to succeed, and control systems are
modified as needed to meet the changing conditions.
5. In traditional HR, job design is tight division of labour,
independence and specialization. However, in strategic HR, job
design is organic, specialization is replaced by cross training and
independence is replaced by team work, encouraging
autonomy at various levels.
6. In strategic HR, the belief is that organization’s key assets are
its people as against money and materials as-key assets in
traditional HR.
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Slide-16
Goal of HRM:Serving Multiple Stakeholders
Stakeholders of Human Resource Management
Adapted from R.S. Schuler and S.E. Jackson, Human Resource Management:
Positioning for the 21st
Century (St. Paul: West Publishing Co.: 1996).
The Organization
• Productivity
• Profits
• Survival
• Adaptability
• Competitive
advantage
Customers
• Quality service
• Quality products
• Speed and
responsiveness
• Low cost
• Innovation
Shareholders/Investors
• Shareholder return
• Return on sales
• Return on assets
• Return on investments
Employees
• Fair treatment
• Satisfaction/morale
• Empowerment
• Employability
• Safety and health
• Flexibility
Society
• Legal compliance
• Social responsibility
• Ethical management
practices
• Concern for the
environment
Strategic Partners
• Suppliers: joint
venture
partners
• Unions
• Customers
25.
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Slide-17
Undertaking/Sharing Responsibility of
HumanResource Management
(Working Together in Managing Human Resources)
Line Managers HR Professionals Employees
Include HR Professionals
and work in the
formulation and
implementation of
business strategy.
Work closely with line
managers and employees
to develop and
implement HR activities.
Work closely with line
managers and HR
professionals to develop and
implement HR activities.
Work closely with HR
professionals and
employees to develop and
implement HR activities.
Work closely with line
managers to link HR
activities to the business.
Accept responsibility for
managing their own
behavior and careers in
organizations.
Accept shared
responsibility for
managing the human
resources of the company.
Work with employees to
help them voice their
concerns to
management.
Recognize the need for
flexibility and adaptability.
Set policies that are
supportive of ethical
Develop policies and
practices to support
Realize their impact on the
success of the company.
26.
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Slide-17 (Contd.)
Line Manager:Line managers are those who are directly
responsible for producing products or services through
and with employees.
HR professional: Professionals with specialized knowledge
in HRM.
Employees: Employees are the non-managers who take
active role in managing HR.
27.
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Slide-18
Current Trends ofHRM
A. Globalization.
B. Workforce diversity.
C. Team and teamwork.
D. Small business and entrepreneurial firms.
E. Combining technical expertise and systematical
analysis.