INTRODUCTION

TO HRM

Module 1
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What are the people aspects of management

job?
 Introduction

Organisations have to provide a healthy work climate in

order to get the best out of people.
To utilise the capabilities of people fully, you need
competent leadership willing to recognise, reward and
nurture talent at all levels.
This is where human resource managers play a critical
role by bridging gaps between employee expectations
and organisational requirements by adopting appropriate
human resource strategies and practices.
 What is HRM?
◻ Human Resource Management means :
◻ Employing people
◻ Developing their resources
◻ Utilizing
◻ Maintaining the employees
◻ Compensating their services in tune with job &
Organisational requirements

What could be the probable mistakes in managing people?

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 Why Is Human Resource Management
Important to All Managers?
◻To Avoid Personnel Mistakes
◻To Improve Profits and Performance
◻You May Spend Some Time as an HR Manager
◻HR for Small Business – you may end up as your own
human resource manager
 Definition

•HRM refers to acquisition, retention, motivation and

maintenance of Human Resources in an organization.

•HRM is the planning, organising, directing & controlling

of the procurement, development, compensation
integration, maintenance and separation of human
resources to the end that individual, organizational and
social objectives are accomplished.
Human Resource Management: Features
❖ Pervasive force
❖ Action oriented
❖ Individually oriented
❖ People oriented
❖ Future oriented
❖ Development oriented
❖ Integrating mechanism
❖ Comprehensive function
❖ Auxiliary service
❖ Inter-disciplinary function
❖ Continuous function

What changes COVID 19 has brought to the workspace?

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 Scope of HRM

i. Personnel aspect: This is concerned with manpower planning,

recruitment, selection, placement, transfer, promotion, training and
development, lay off and retrenchment, remuneration, incentives,
productivity, etc.

ii. Welfare aspect: It deals with working conditions and amenities

such as canteens, creches, rest and lunch rooms, housing, transport,
medical assistance, education, health and safety, recreation facilities, etc.

iii. Industrial relations aspect: This covers union-management

relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.
 Objectives of HRM

i. To help the organisation reach its goals

ii. To employ the skills and abilities of the workforce
efficiently
iii. To provide the organisation with well-trained and well-
motivated employees
iv. To increase to the fullest the employee’s job satisfaction
and self- actualisation
v. To develop and maintain a quality of work life:
vi. To communicate HR policies to all employees
vii. To be ethically and socially responsive to the needs of
society
 Significance Of HRM

◻ Human Resource in the Nation’s Well-being.

◻ Man vis-a-vis Machine
◻ Personnel management and general management
◻ Human Resources System is a central Sub-system
◻ Human Resource Accounting
◻ Human Resource and market economy
 Functions of HRM
P/HRM

Managerial Operative Functions

functions:
Procurement Development: Motivation and Maintenance: Integration: Emerging
– Planning
Job Analysis Compensation: Issues:
Training Grievances
Job design Health Personnel
HR planning Executive Discipline records
Recruitment development Work scheduling
– Organising
Teams and Personnel
Career Motivation Safety teamwork
Selection audit
planning Job evaluation Collective
Placement Personnel
Succession Performance and Welfare bargaining research
Induction
– Directing planning potential Participation HR
Internal appraisal Social security accounting
mobility Human Empowerment
resources Compensation HRIS
development administration Trade unions
– Controlling
strategies Job stress
Incentives Employers’
benefits and associations Mentoring
services International
Industrial
relations HRM
HR Analytics
AI, Robotics
◻ 1. Procurement function: The first operative function of
personnel management is procurement. It is concerned
with procuring and employing people who possess
necessary skill, knowledge and aptitude.

◻ 2. Development: It is the process of improving, moulding,

changing and developing the skills, knowledge, creative
ability, aptitude, attitude, values and commitment based
on present and future requirements both at the
individual’s and organisation’s level.
◻ 3. Motivation and compensation: It is a process which
inspires people to give their best to the organisation
through the use of intrinsic (achievement, recognition,
responsibility) and extrinsic (job design, work scheduling,
appraisal based incentives)rewards.

◻ 4. Maintenance: It aims at protecting and preserving the

physical and psychological health of employees through
various welfare measures
◻ 5. Integration function: This tries to integrate the goals of
an organisation with employee aspirations through
various employee-oriented programmes, like redressing
grievances promptly, instituting proper disciplinary
measures, empowering people to decide things
independently, encouraging a participative culture,
offering constructive help to trade unions etc.
◻ 6. Emerging issues: Effective management of human
resources depends on refining HRM practices to changing
conditions. Hence the need to look at other important
issues that can motivate people to give their best in a
dynamic and ever-changing environment.
 Line and Staff Aspects of HRM

◻ Line Manager
� Is authorized (has line authority) to direct the work of
subordinates and is responsible for accomplishing the
organization’s tasks.
◻ Staff Manager
� Assists and advises line managers.
� Has functional authority to coordinate personnel
activities and enforce organization policies.
 Line Managers’ HRM Responsibilities

1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
 Models of HRM

1.The Michigan School Model:

�Developed by Fombrun and others(1984)
� Orientation from traditional management functions like
HRP, recruitment & selection, performance appraisals,
rewards, compensation & development.
�Organisational policies will have an effect on the individual
performance of its employees.
The Michigan School Model
2. The Harvard School Model (Harvard
framework)
◻ Developed by Beer et al.
◻ Approach assumes that the interest of employees and
other stakeholders, together with situational factors
have a direct influence on HRM policy choices.
◻ Stresses on the human factor in HRM- align employees
with the organisation & management.
The Harvard Framework
 Characteristics of HRM in Harvard
framework

◻ 1) line managers accept more responsibility for ensuring

the alignment of competitive strategy and personnel
policy
◻ 2) personnel has the mission of setting policies that
govern how personnel activities are developed and
implemented in ways that make them more mutually
reinforcing
 Sustainable HRM
◻ Sustainable HRM is the utilization of HR tools to help
embed a sustainability strategy in the organization and the
creation of an HRM system that contributes to the
sustainable performance of the firm.
◻ Sustainable HRM creates the skills, motivation, values and
trust to achieve a triple bottom line and at the same time
ensures the long-term health and sustainability of both the
organization’s internal and external stakeholders, with
policies that reflect equity, development and well-being
and help support environmentally friendly practices
◻ “A sustainable enterprise, is one that contributes to
sustainable development by delivering simultaneously
economic, social, and environmental benefits—the so-
called triple bottom line.”
 The Role Of HRM In Sustainability

◻ Partnering – stakeholder perspective and employee

interest
◻ Engaging - internal and external stakeholders
◻ Aligning- into the areas of recruitment and selection,
employee training, development and compensation,
managerial support and communication, and
organizational climate creation.
Which HRM tools should a company use
to embed sustainability?
◻ Two key criteria: The organization’s approach to its
sustainability strategy
◻ The resources available.

◻ Three pillars of sustainability

▪ Compliance
▪ Corporate governance
▪ Business ethics
Examples of HR Policies That Should Be Developed
or Modified in Line With Sustainability Principles:

◻ Equal opportunity policy (to ensure nondiscrimination).

◻ Recruitment policy (to reflect diversity).
◻ Remuneration policy (to reflect sustainability performance).
◻ Transport-to-work policy (to encourage carpooling or use of public
transport).
◻ Travel and expenses policy (to incentivize low-carbon travel or video
conferencing).
◻ HR procurement policy (to prefer minority or women-owned
businesses, or local suppliers).
◻ Employee volunteering policy (to create clear EVP frameworks).
◻ Ideally, policy development and revision should be conducted in
consultation with teams of key stakeholders, both internal and
external.
The Strategic Management Process
◻ Strategic management
� The process of identifying and executing the
organization’s mission by matching its capabilities
with the demands of its environment.
◻ Strategy
� A strategy is a course of action.
� The company’s long-term plan for how it will
balance its internal strengths and weaknesses with
its external opportunities and threats to maintain a
competitive advantage.
 HR’s Strategic Challenges

◻ Strategic plan
� A company’s plan for how it will match its internal
strengths and weaknesses with external
opportunities and threats in order to maintain a
competitive advantage.
 Strategic Management Process

◻ Strategic management tasks

� Step 1: Define the Business and Its Mission
� Step 2: Perform External and Internal Audits
� Step 3: Translate the Mission into Strategic Goals
� Step 4: Formulate a Strategy to Achieve the
Strategic Goals
� Step 5: Implement the Strategy
� Step 6: Evaluate Performance
 Business Mission and Its Vision

◻ Vision
� A general statement of its intended direction that
evokes emotional feelings in organization members.
◻ Mission
� Spells out who the company is, what it does, and where
it’s headed.
Overview of Strategic Management
 Types of Strategic Planning
◻ Corporate-level strategy
� Identifies the portfolio of businesses that, in total, comprise the
company and the ways in which these businesses relate to each
other.
■ Diversification strategy implies that the firm will expand by
adding new product lines.
■ Vertical integration strategy means the firm expands by,
perhaps, producing its own raw materials, or selling its products
direct.
■ Consolidation strategy reduces the company’s size
■ Geographic expansion strategy takes the company abroad.
 Types of Strategic Planning (cont’d)
◻ Business-level/competitive strategy
� Identifies how to build and strengthen the business’s
long-term competitive position in the marketplace.
■ Cost leadership: the enterprise aims to become the
low-cost leader in an industry.
■ Differentiation: a firm seeks to be unique in its
industry along dimensions that are widely valued by
buyers.
■ Focus: a firm seeks to carve out a market niche, and
compete by providing a product or service customers
can get in no other way.
Types of Strategic Planning
(cont’d)
◻ Functional strategies
� Identify the basic courses of action that each
department will pursue in order to help the business
attain its competitive goals.
 HR and Competitive Advantage

◻ Competitive advantage
� Any factors that allow an organization to
differentiate its product or service from those of its
competitors to increase market share.
� Superior human resources are an important source
of competitive advantage
 Strategic Human Resource
Management
◻ Strategic Human Resource Management
� The linking of HRM with strategic goals and objectives
in order to improve business performance and develop
organizational cultures that foster innovation and
flexibility.
� Formulating and executing HR systems—HR policies
and activities—that produce the employee
competencies and behaviors the company needs to
achieve its strategic aims.
 Strategic HRM Tools
◻ Strategy Map
◻ HR scorecard
◻ Digital dashboard
 Strategy Map
◻ Summarizes how each department’s performance
contributes to achieving the company's overall strategic
goals.
◻ Aligned with
- Strategic/financial results - profitability
� Customer- based results- more customers
� Internal business processes
� Organisational and employee capabilities- committed
employees
� Required HR policies & practices- supportive practices
 HR Scorecard

◻ A process for assigning financial and non-financial goals or

metrics to the human resources management- related
chain of activities required for achieving the company's
strategic aims and for monitoring results
� HR activities (amount of testing, training, etc)
� The resulting employee behaviour (customer service)
� The resulting firm wide strategic outcomes and
performance( customer satisfaction and profitability)
 Four dimensions

◻ HRD systems maturity score

◻ HRD competence score
◻ The HRD culture
◻ Business linkage score
Digital Dashboards

◻ Presents the manager with desktop graphs and charts so a

computerized picture of where the company stands on all
those metrics from HR scorecard process.
 HRM Competencies

HR competencies Developed by Dave Ulrich at University of

Michigan, USA.
Credible Activist: HR professionals need to be credibly active in
discharge of their duties. The Credible Activist is respected, admired
and listened.
Cultural Steward: The Cultural Steward recognizes, articulates and
helps shape a company’s culture by: facilitating change; crafting
culture; valuing culture; and personalizing culture.
Talent Manager/Organizational Designer: The Talent
Manager/Organizational Designer masters theory, research and
practice in both talent management and organizational design by:
ensuring today’s and tomorrow’s talent; developing talent; shaping
the organization; fostering communication; and designing reward
systems.
◻ Strategy Architect: The Strategy Architect knows how to make the
right change happen by: sustaining strategic agility; and engaging
customers. Strategy Architects are able to recognize business trends
and their impact on the business, and to identify potential roadblocks
and opportunities.

◻ Business Ally: The Business Ally contributes to the success of the

business by: Serving the value chain; interpreting social context;
articulating the value proposition; and leveraging business technology.
HR contributes to the success of a business by knowing how it makes
money, who the customers are, and why they buy the company’s
products and services.
 Experiential Learning

Activity :Developing an HR strategy for CCD or Starbucks

◻A business/ competitive strategy for CCD or Starbucks
◻Workforce requirements (employee competence/ behaviours)
◻Specific HR policies
◻Suggestions for metrics to measure the success of HR
strategy