Human Resource Management

(HRM)
By
Dr. Narendra .Y. Phadnis
Professor- HRM & Law
IMT- Nagpur.
 Human Resource (HR)
The people, an organization
employs to carry out various jobs,
tasks, and functions in exchange
for wages, salaries, and other
rewards.

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Learning India Pvt Ltd. All rights
reserved.
 Human Resource
• An aggregate of organizational employees
work related knowledge, skills, competencies,
capabilities & attitudes relevant for achieving
organizational goals.
• Can also be called as human capital.
 Human Resource Management
(HRM)
• Concerned with ‘People’ dimension of
management.
• It deals with managing people at work place.
• Refers to philosophy, policies, procedures &
practices relating to management of people
within an organization.
• It facilitates effective use of people (employees)
to achieve organizational and individual goals.
• The old nomenclatures are Labour-Management,
Personnel Management & future nomenclature
will be Human Capital Management (HCM)
 What Is Human Resource
Management (HRM) ?
The comprehensive set of managerial
activities and tasks concerned with
acquiring, developing and maintaining a
qualified workforce—human resources—in
ways that contribute to organizational
effectiveness.

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 Human Resource Management
Process of
Acquiring
Training,
Appraising,
and Compensating employees
and of attending to their labour relations,
health, safety and fairness concerns.
 Definition
• HRM refers to acquisition, retention, motivation and
maintenance of Human Resources in an organization.
• Facilitating the competencies and retention of skilled force
• Developing management systems that promote commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.

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Human Resource Management
©Oxford University Press, 2012
 HR- Management
Managerial Functions
• Planning
• Organizing
• Directing
• Controlling
• Coordinating
• Communicating
The activities of Human Resources in an
organization.
 HR Management
Operative Functions
• Procurement.
• Development.
• Compensation.
• Utilization.
• Maintenance.
of Human Resources in an organization.
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Learning India Pvt Ltd. All rights Fig. 1.1 Basic Functions of Human Resource Management
reserved.
 Functions
Functions of HRM include
• Facilitating the retention of skilled and competent
employees
• Building the competencies by facilitating continuous
learning and development
• Developing practices that foster team work and flexibility
• Making the employees feel that they are valued and
rewarded for their contribution
• Developing management practices that endanger high
commitment
• Facilitating management of work force diversity and
availability of equal opportunities to all.

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Human Resource Management
©Oxford University Press, 2012
 HRM-Objectives
• Procurement, Retention & Effective utilization of
Human Resources (employees)
• Developing & Maintaining desirable working
relationships , work culture & quality of work life.
• To provide for maximum individual development
& satisfaction to employees.
• To create & utilize competent, committed &
motivated work force for achieving organizational
goals.
 Fig 1.2 Goals of Human Resource Management

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 Authority
• Right to Make Decisions. Direct Other’s Work.
• Give Orders/Advices.
Line Authority & Line Managers:- Right to Issue
Orders and Direct & Control Subordinates and
are responsible for achieving organization’s main
or core tasks/objectives.
Staff Authority & Staff Managers:- Who Assist &
Advices Line Managers.
 Manager in the eyes of Law
(Managerial Powers & Authority)
• He is an Employee + An Agent. (Both)
• Binds & Creates contractual relations between
organization & outside world (Third Parties).
• Authority to Appoint or Terminate or take
disciplinary action against subordinates.
• Authority to sanction leave & grant facilities to staff.
(which incurs cost to the organization)
• Drawing & Disbursing Authority or operating
organization’s financial accounts.
• Authorized Signatory for & on behalf of organization.
 Supervisor
• Watches ‘Man’ on ‘Machine’ & not merely ‘Machine’.
• Authority to instruct & allocate work.
• Authority to follow-up & Take feed-back.
• Authority to complain & report to Manager with a
view to take disciplinary action.
• Authority to issue warning to employees.
• Authority to recommend leave, facilities & payment
to employees.
• Merely Technical Supervision is No Supervision.
 HR Management as a
Staff Versus Line Function
• Line managers (Functions/Departments)
– Are directly responsible for creating
goods and services.
• Staff managers (Functions/Departments)
– Are responsible for advising & supporting line
management’s efforts to achieve organizational
roles and objectives.

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 Strategy in HR
• Strategy-A Course of Action(s) the Company can
pursue to achieve is Strategic Aims/Goals.
• Strategic Plan- Company’s Plan to match its
internal strengths & weaknesses with external
opportunities & threats in order to maintain a
competitive advantage.
• Strategic Management-A process of Identifying
and executing organization’s strategic plan by
matching the company’s capabilities with
situational & environmental demands.
 Strategic HRM
• Formulating & Executing Human Resource
policies & practices that produce and
influences employee competencies and
behaviors the company need to achieve its
strategic aims/goals.
 Employee Engagement
• The extent to which an organization’s
employees are psychologically involved in,
connected to & committed to getting jobs
done.
 Talent Management
• The Goal Oriented & Integrated Process of
Planning, Recruiting, Developing &
Compensating Employees.
• It is a holistic, integrated and results and goal
oriented process of planning, recruiting,
selecting, developing, managing &
compensating employees.
 Talent Management
Software
• Talent Management Solutions
(www.talentmanagement101.com)
It includes recruiting, performance
management, learning management &
compensation management.
• ZingHR for e-recruiting, onboarding,
performance management & compliance
management.
 Employee Relations (ER)
• A broader & wider term as compared to IR
• Covers the scope of Industrial Relations.
• Now a days mostly referred to as ER.
• Apart from IR it includes all relationships and
communications with individual employee or
group to enhance employee performance
through Motivation, Morale, Leadership &
Training (OB Areas)
 Scope & Coverage of HRM
HRM= PM + HRD/OSD/OCD
PM=Personnel Management
HRD= Human Resource Development
OSD=organizational Structure & Design.
OCD= organizational Change & Development.
The focus in HRM is more on HRD & Organizational
Development (OD)
The Term ‘HR’ as such is meaningless and could mean
human resource or human relations or human rights.
It is appropriate to use the terms as HRM and HRD.
 Scope & Coverage of HRM

• Personnel Management:- which includes

A. Employee Health, Safety, Welfare & Social
Security (Statutory & Voluntary)
B. Personnel Administration- Recruitment to
Retirement (R to R) Employee Compensation
(Wage & Salary) Management & Record
Keeping.
C. Industrial Relations (IR) or Employee Relations
(ER) & Dealing with Trade Unions.
• Human Resource Development (HRD), OSD &
OCD.
 HRD/OSD/OCD Coverage
(Non-IR Areas)
• Training & Development (T&D)
• Performance & Competency (Potential) Appraisals &
Management.
• Job Design.
• Career & Succession Planning.
• Executive Compensation Strategies .
• Organizational Structure & Design (OSD)
• Organizational Change & Development (OCD)
• Quality of work life (QWL) & work-life balance.
• Employee Counseling.
• Developing HRIS.
 Fig 1.4 A Systems View of Human Resource
Management

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reserved.
 Fig 1.5 Human Resource
Management
as a Center for Expertise

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Learning India Pvt Ltd. All rights
reserved.
 Job Analysis
• A systematic & methodical process.
• To collect job related data/information.
• Collecting, Grouping, Analyzing,
understanding and documenting job related
information/data.
• It leads to two sets of data 1) Job Description
& 2) Job Specification.
Job Analysis=Job Description + Job Specification
 Job Description (JD)
• It describes the Job and specifies the job
elements.
• It is a list of tasks, duties, responsibilities
reporting relationships, working conditions
involved in or relevant to/connected with the
job.
• It tells what the job is all about & the way or
the manner of doing it.
• It also tells what is expected out of the job.
 Job Specification (JS)
• It focuses on the ‘Person’ doing the job.
• It tells what Knowledge, Skills, Abilities,
Capabilities, Competencies are required in a
person to do the particular job efficiently &
effectively.
• It talks about the personality & characteristics
of a person who is qualified & capable to do
the job.
 Job Profile (JP)
• Is a combination of Job Description & Job
Specification.
• Job Profile= Job Description + Job Specification
• Job Profile is the out come of Job Analysis.
 Uses of Job Analysis
• Recruiting & Selecting Decisions.
• Legal Compliances.
• Performance Evaluation.
• Job Evaluation- Wages & Salary Decisions i.e.
Compensation.
• Training & Development.
 Process of Job Analysis
• Understanding the relevance of Job Analysis

• Collecting the Job Information/data.

• Processing the Information/data.

 Writing Job Description
(Job Profile) Steps
• Job Identification
• Job Summary
• Responsibilities & Duties.
• Authority of Incumbent
• Standards of Performance.
• Working Conditions.
• Job Specifications
• Job Design
• Job Re-Design- Job Rotation, Job Enlargement
& Job Enrichment.
 Recruitment
• Process of searching for and identifying
prospective employees, attracting capable
(eligible) employees and encouraging them to
apply.
• The basic purpose is to create a pool of good
candidates to enable the selection of best
amongst the applicants.
• It is a positive process (creating a larger pool
of job applicants)
 Selection
• It is a process of picking up more competent &
suitable employees.
• It is a process of matching the applicant with
the job requirements.
• The purpose is to shortlist best candidate(s)
amongst the job applicants.
• It is a negative process (i.e. process of
elimination)
 Sources of Recruitment
(Internal)
• Job Postings- house magazines, intranet, news
letters, bulletin boards etc.
• Supervisory recommendations- promotions,
transfers etc.
• Ex- employees.
• Employee Referrals (word of mouth)
 Sources of Recruitment
(External)
• Advertisements.
• Placement Agencies.
• Campus Recruitment.
• Walk-In.
• Unsolicited Applicants.
• Internet/Social Media/Social Platforms- face
book, link-din etc.
 Factors affecting Recruitment
(Internal)
• Company Size.
• Cost.
• Outsourcing.
• Future plans- Mergers, Acquisitions, down
sizing, expansions etc.
 Factors affecting Recruitment
(External)
• Company’s Image.
• Labour Market Conditions.
• Legal Provisions. (Govt. Regulations)
• Competitors.
 Recruitment Policy
(Focus)
• To find & employ best qualified & most
suitable persons for each job.
• To retain the best talent by offering them life
time careers.
• To facilitate personal growth on the job.
 Selection Process
(Steps)
• Scrutiny of job applications.
• Application Blanks.
• Selection Tests- written, aptitude, intelligence,
GK, personality, interest test etc.
• Group discussions (GD)
• Interviews- Preliminary, stress, patterned or
structured, in-dept etc.
• Reference checks.
• Physical/ Medical Exam/Check-ups.
• Giving job offer
 Placement
• Offering a job and allocation of job.
• Assigning a specific task & responsibility.
• It is the actual posting of an employee to a
specific job.
 Orientation or Induction.
• Rehabilitation of employee into changed
surroundings.
• Introduction to the purposes, policies, ethos
practices, nature of work, working conditions,
norms, colleagues, bosses, subordinates etc.
• It purpose is to quickly loose the “New Man”
feeling & develop comfort level between the
new joinee & the work/organization.
 Onboarding
• It is comprehensive & wider term than Induction.
• It includes Orientation/Induction.
• It is aimed at involving the employee emotionally
into organizational settings its culture etc.
• Employee is told as to what an organization
expects from him/her in terms of performance &
behavior.
• Employee is also Trained to carry out the job
effectively/efficiently.