human resource management : concept and perspective evolution ans its philosophy, challenges in changing environment and the issues in India. ALL MBA STUDENTS

1. Presented by
Shilpa Rajak

2. What do you understand by human
resource?

3.  Human resources is a term used to describe the
individuals who make up the workforce of an organization
 Human Resources refers to a function within an
organization charged with the overall responsibility for
implementing strategies and policies relating to the
management of individuals i.e., the HR management of the
organization.

4. HR
SKILLS
KNOWLEDGE
TALENT
APTITUDE

5. HR Management
In simple words, HRM can be defined as:
 Organization’s methods and procedures for managing
people to enhance skills and motivation.
 Activities to enhance the organization’s ability to attract,
select, retain and motivate people.

6. DEFINITIONS
 HRM encompasses those activities designed to provide
for & coordinate the HR of an organization– BYARS &
RUE
 HRM is a function performed in an organization that
facilitates the most effective use of people to achieve
organizational as well as individual goals-IVANCEVICH &
GLUECK

7. QUESTIONS
• DOES HR MANAGEMENT MATTERS?
• HOW DOES IT MATTER?

8.  The HR managers have now started speaking the language
of business. The seek to justify the economic value of
their actions.
THERE ARE TWO COMMON THINGS TO ALL BEST
EMPLOYERS.
1. They build an inventory of people practices that are both
unique & tailored for their firms.
2. They take trouble to painstakingly create a work
environment that gets best out of their employees.

9. ROLE OF HRM
ACQUIRE
DEVELOP
MOTIVATE
RETAIN

10. Importance of Human Factor
1. Output will be greater than the input.
2.Each individual is different from culture, education,
environment, background etc.
3.We can’t purchase the loyalty, .dedication, devotion towards
the organization.
4.As time passes, human factor can bring experience to
organization to accept the challenges.
5.Recent developments like legislation, trade unions enhanced
their importance.

11. Line and Staff Aspects of HRM
• 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.

12. Line Managers’ HRM Responsibilities
1. Placing the right person on the right job.
2. Orientation for new employees in the organization.
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. Creating and maintaining department morale.
8. Protecting employees’ health and physical condition.

13. NATURE OF HRM
 HRM involves the application of management functions &
principles. The functions & principles are applied to
acquisition, developing, maintaining & remunerating
employees in organizations.
 Decisions made must influence the effectiveness of an
organization & this effectiveness of the organization
must result in betterment of services to customers in the
form of high quality products supplied at reasonable
costs.
 HRM places emphasis on attitudinal & behavior

14. CONTD..
 HRM functions are not only confined to business establishments only.
They are applicable to non-business organizations too, such as
education, health care, recreation & the like.
 HRM functions & activities are designed & carried out in order to
maximize both employee as well as organizational effectiveness.
 Decisions related to employees must be integrated.
 HRM helps to improve the organizational efficiency, work culture, job
satisfaction, better productivity & better understanding of human
relations.

15. SCOPE OF HRM
HRM
CONTROL
• HR audit
•HR accounting
•HRIS
MAINTENANCE
•Remuneration
•Safety & health
•Motivation
•Social security
•IR
•Performance
appraisal
DEVELOPMENT
•Training
•Career
development
•OD
ACQUISITION
• HRP
•Recruitment
•Selection
•Placement

16. CONTD..
The national institute of personnel management, Calcutta,
has specified the scope of HRM as:
1. THE LABOR OR PERSONNEL ASPECT: Planning,
recruitment, selection, placement, transfer, promotion,
T&D, layoff, retrenchment, remuneration, etc.
2. WELFARE ASPECT: Canteen, crèches, rest & lunch
rooms, housing, transport, medical assistance, education,
health & safety, etc.
3. IR ASPECT: Union-management relations, settlement of
disputes, grievance management.

17. OBJECTIVES OF HRM
The basic objective of HRM is to ensure that there are
right people at the right time & at the right place. This
basic objective is sub-divided into following sub-objectives:
 To help organizations achieve/attain its goals effectively
& efficiently by providing competent & motivated employees.
 To utilize available HR effectively.
 To increase to the fullest employee’s job satisfaction.
 To ensure maximum individual development.

18. CONTD..
 To help maintain ethical policies & behavior inside &
outside the organization.
 To develop & maintain quality of work life which makes
employment in the organizations a desirable personal &
social situation.
 To establish & maintain cordial relations between
employees & management.
 To reconcile individual/group goals with organizational
goals.
 To ensure respect for human personality & the well being
of each individual.

19. OBJECTIVES OF HRM
PERSONAL OBJECTIVES
FUNCTIONAL OBJECTIVES
ORGANIZATIONAL OBJECTIVES
SOCIETAL OBJECTIVES

20. FUNCTIONS OF HRM
They are broadly classified as:
1. Managerial functions: It includes the following:
• Planning
• Organizing
• Staffing
• Directing
• Controlling

21. CONTD..
2. Operative functions
 EMPLOYMENT
• Job analysis
• HRP
• Recruitment
• Selection
• Induction
• Placement
• Transfer
• Promotion

22. CONTD..
 HUMAN RESOURCE DEVELOPMENT
• Executive Development
• Performance appraisal
• Training
• Career Planning & Development
• Organization change & development
 COMPENSATION MANAGEMENT
• Job evaluation
• Wage & salary administration
• Fringe benefits

23. CONTD..
 EMPLOYEE RELATION
• Motivation
• Morale
• Job satisfaction
• Communication
• Grievance & disciplinary procedure (Conflict management,
collective bargaining, participation of employees,
discipline)

24. CONTD..
MAINTENANCE
• Health
• Safety
• Social security
• Welfare schemes
• Personnel records

25. Functions of HRM1-9
The Strategic Role Of Human Resources Management
– Planning
–
Organising
– Directing
–
Controlling
Operative Functions
P/HRM
Managerial
functions:
Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal
mobility
Development:
Training
Executive
development
Career
planning
Succession
planning
Human
resources
development
strategies
Motivation and
Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance
and potential
appraisal
Compensation
administration
Incentives
benefits and
services
Maintenance:
Health
Safety
Welfare
Social
security
Integration:
Grievances
Discipline
Teams and
teamwork
Collective
bargaining
Participation
Empowerment
Trade unions
Employers’
associations
Industrial
relations
Emerging
Issues:
Personnel
records
Personnel
audit
Personnel
research
HR
accounting
HRIS
Job stress
Mentoring
International
HRM

26. EVOLUTION OF HRM
 Trade Union Movement Era
 Social Responsibility Era
 Scientific Management Era
 Human Relation Era
 Behavioral Science Era
 Systems Approach Era
 Contingency Approach
 Human Resource Approach

27. HRM & ITS ENVIRONMENT
Environment may be understood by all those factors which
have their bearing on the functioning of various activities
including HR activities.
Analysis of environment is useful for the HR manager &
his/her team in order to become proactive & not remain
reactive to the environment.

28. Environmental Forces
1. Internal Forces
 Union
 Organization culture & conflict
 Professional bodies
 Strategy, task & leadership
2. External Forces
 Economical
 Technological
 Cultural
 Political-Legal

29. HRM Models
1. The Fombrun
2. The Harvard
3. The Guest
4. The Warwick

30. The Fombrun, Tichy & Devenna Model
Selection
HRD
APPRAISAL
ORGANIZATION
EFFECTIVENESS
REWARDS

31. • Being the first model (dates back to 1984), this
emphasizes just four functions and their
interrelatedness. The four functions are:
selection, appraisal, development and rewards.
These four constituent components of human
resource management and are expected to
contribute to organizational effectiveness.
• The Fombrun model is incomplete as it focuses
on only four functions of HRM and ignores all
environmental and contingency factors that
impact HR functions.

32. The Harvard Model

33. The Harvard model
• (1984) which use as an as a strategic map to concentrates on the soft
aspect of HRM. It describes employee commitment. It also shows that
employees needed to be competent and cost effective. This model has
six basic components. Such as;
• Stakeholders interest - shareholder, management, employee groups,
government, unions
• Situational factors- workforce characteristics, business strategy and
conduct, management philosophy, Labour markets, unions, task
technology, social and law values,
• Human resources management policy choices – employee influence,
hr. flow, rewards, work system
• Human Resources outcomes- commitment, competence, congruence,
cost effective
• Long term consequences- individual well being, organizational
effectiveness, societal well being
• Feedback loop

34. The Guest Model
HR
Strategies
PERFORMAN
CE
OUTCOME
POSITIVE
•Productivity
•Innovation
•Quality
NEGATIVE
•Low
productivity
•Absenteeis
m
•Turnover
FUNCTIONAL
OUTCOME
•Profits
•ROI
BEHAVIORAL
OUTCOME
•Motivate
•Cooperate
HR OUTCOME
•Commitment
•Quality
•Flexibility
HR
PRACTICES
•Hiring
•Training
•Appraisal
•Compensa
tion
•Relations

35. • (Guest, 1997) works on as integrated Human Resources
Management practices will result to superior individual
and organizational performance .The concept describes
HRM strategies such as differentiation, innovation, the
focus on Quality and cost reduction will increase good
practices which influence the quality of the outcome,
commitment and flexibility by training, appraisal,
selection, rewards, job designs, involvement, and
security. The final outcome will be positive productivity,
with innovation, and decrees Labour turnover, fewer
conflicts and less customer complaints.

36. • Yet another human resource management model was developed by David Guest in
1997 and claims to be much superior to other models. The details will justify the
claim. This model claims that the HR manager has specific strategies to begin with,
which demand certain practices and when executed, will result in outcomes. These
outcomes include behavioral, performance related and financial rewards.
• The model emphasizes the logical sequence of six components: HR strategy, HR
practices, HR outcomes, behavioral outcomes, performance results and financial
consequences. Looking inversely, financial results depend on employee
performance, which in turn is the result of action oriented employee behaviors.
Behavioral outcomes are the result of employee commitment, quality and
flexibility, which, in turn are impacted by HR practices. HR practices need to be in
tune with HR strategies which are invariably aligned with organizational strategies.
• The claim of the Guest model that it is superior to others is partly justified in the
sense that it clearly maps out the field of HRM and delineates the inputs and
outcomes. But the dynamics of people management are so complex that no model
(including the Guest model) can capture them comprehensively.

37. The Warwick Model

38. Warwick model: was developed by Hendry and
Pettigrew (1990). It is on analytical approach
to Human Resources Management. It also
recognizes the impact of the role of the
personnel functions on the human resource
strategy content. : Outer context, inner
context, business strategy context, HRM
context, HRM content

39. This model was developed by two researchers, Hendry and Pettigrew of University of
Warwick (hence the name Warwick model). Like other human resource
management models, the Warwick proposition centers around five elements
• Outer context (macro environmental forces)
• Inner context (firm specific or micro environmental forces)
• Business strategy content
• HRM context
• HRM content
The Warwick model takes cognisance of business strategy and HR practices (as in the
Guest model), the external and internal context (unlike the Guest model) in which
these activities take place, and the process by which such changes take place,
including interactions between changes in both context and content. The strength
of the model is that it identifies and classifies important environmental influences
on HRM. It maps the connection between the external and environmental factors
and explores how human resource management adapts to changes in the context.
Obviously, those organizations achieving an alignment between the external and
internal contexts will achieve performance and growth.

40. Shifts in HR management in India
1-19
The Strategic Role Of Human Resources Management
Emerging HR practice
 Strategic role
 Proactive
 Key part of organizational
mission
 Service focus
 Cross-functional teams,
teamwork most important
 People as key
investments/assets
Traditional HR practice
 Administrative role
 Reactive
 Separate, isolated from
company mission
 Production focus
 Individuals encouraged,
singled out for praise,
rewards
 People as expenses

41. 3-22
Designing appropriate HR systems
Issue Focus on
 Nature of employment : Job/Career
 Recruitment : Internal/external/both
 Selection : Merit/other considerations
 Training and employee : 6 months/yearly
development actions Regular/irregular/need based
 Degree of participation : Top down/bottom up
 Incentives : Individual merit/group output
 Job security : Lifelong employment/need-based jobs
 Employee welfare : Be a model employer (offer those that
are needed by law.)

42. CHALLENGES TO HR PROFESSIONAL
 Worker productivity
 Quality improvement
 The changing attitude of workforce
 The impact of government
 Quality of work life
 Technology & training