HRM INTRODUCTION

Module I, Part 1
Module 1
Meaning of HRM
 What Is Human Resource Management (HRM)?
 The policies and practices involved in carrying out the “people” or human resource
aspects of a management position, including recruiting, screening, training,
rewarding, and appraising.
 Human resource management (HRM) is the practice of recruiting, hiring, deploying
and managing an organization's employees. 
 HRM is really employee management with an emphasis on those employees as
assets of the business. In this context, employees are sometimes referred to
as human capital.
 As with other business assets, the goal is to make effective use of employees,
reducing risk and maximizing return on investment (ROI)
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.
Line Managers’ HRM Responsibilities

 Today HR is dealt as a Strategic function, hence the demarcation of line

and staff function is being diluted and today HR is considered as a line and
staff function both.
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
Objectives of human resource
management
 The objectives of HRM can be broken down into four categories:
 Societal objectives:
Measures put into place that respond to the ethical and social needs or
challenges of the company and its employees. This includes legal issues
such as equal opportunity and equal pay for equal work.
 Organizational objectives:
Actions taken that help to ensure the efficiency of the organization. This
includes providing training, hiring the right amount of employees for a
given task or maintaining high employee retention rates.
Objectives of human resource
management
 Functional objectives:
Guidelines used to keep the HR functioning properly within the
organization as a whole. This includes making sure that all of HR’s
resources are being allocated to its full potential.
 Personal objectives:
Resources used to support the personal goals of each employee. This
includes offering the opportunity for education or career development as
well as maintaining employee satisfaction.
Objectives of human resource
management
The importance of human resource
management
 The role of HRM is to manage the people within a workplace to achieve the
organization’s mission and reinforce the culture.
 When done effectively, HR managers can help recruit new professionals that
have skills necessary to further the company’s goals as well as aid with the
training and development of current employees to meet objectives.
 HRM plays a crucial part of maintaining or improving the health of the
business.
 HR managers can monitor the state of the job market to help the organization
stay competitive. This could include making sure compensation and benefits
are fair, events are planned to keep employees from burning out and job roles
are adapted based on the market.
Human resource management
functions
 Different areas of HRM oversight can include the following:
 Employee Recruitment, onboarding and retention.
 Talent Management & Workforce mgt.
 Job role assignment and career development.
 Compensation and benefits.
 Labor law compliances
 Performance management.
 Training and development.
 Succession Planning
 Employee Engagement and recognition.
 Team building
 Exit Policy
HRM software & ERP

 Almost all areas of HRM have sophisticated software that automates varying
degrees of many HR processes.
 For example, job candidate recruiting has seen enormous growth in the
number of software platforms and systems that help both employers and job
seekers to electronically match organizations and candidates with each other
and then help manage the interviewing, hiring and employment processes.
 While some HRM software systems started out on premises, nearly every area
of HR tech, is moving to cloud-based software as a service platforms.
Role & Qualities of HR Professionals
Role & Qualities of HR Professionals

 Expertise in Human Resources

As an HR professional, you are expected to be the trailblazers of the organization. Knowledge in
human resources is a must so that you are able to overcome the challenges and emerge as victors. You
must be capable enough to solve various kinds of challenges that employees face such as
compensation and unequal pay. Handling every situation with fairness and honesty is a pre-requisite..
 Communication
How can a professional in HR survive if she/he doesn’t possess communication skills? You won’t be
able to give accurate solutions unless you communicate with the teams. Listening to the problems,
understanding them, and coming up with the correct solutions is what is meant by effective
communication. Employees must be able to relate what you are trying to say. So always speak in a
friendly and professional manner.
 Time Management and Self Discipline
As an HR professional, you have a lot to handle. The tasks that are assigned to you and the issues that
arise in the company are all on your shoulders. You are expected to set priorities. Deadlines and daily
targets are a must. You must be self-disciplined enough to be able to complete all the tasks on a daily
basis. Become excellent in time management to avoid workload. 
Role & Qualities of HR Professionals

 Trustworthy
Be a person of trust so that the people around you can share their heart. Professionals in HR are
meant to be trustworthy enough to get updates from the employees about what’s happening in the
departments. Alongside listening to the problems, you need to keep the information confidential so
that nobody is afraid to share the good and bad stuff with you. 
 Impartial and Objective
Do not make hasty decisions as such decisions end up being wrong in the end. Remain neutral and
impartial. This is the most important quality that you need to inculcate in you. You must be able to
make sound decisions that are just and unbiased. There might be a few negative situations that you
need to handle- In such cases do not count your personal opinions. 
 Train, Develop, and Mentor
Employees want to stay in the companies that give them complete assurance of growth and learning.
Therefore, importance must be given to the training and development of capable individuals. Their
skills must be polished so that they are able to perform outstandingly in the organization. These
individuals must be given a mentor so that are guided to walk in the right direction.
Role & Qualities of HR Professionals

 Be updated with the latest knowhow & whats happening in the business world
 Be a strategic manager…know the entire ins and out of your entire business. Be
holistically aware of your business and business environment.
Scope of HRM
 The scope of HRM is indeed vast. All major activities in the working life of a worker – from
the time of his or her entry into an organization until he or she leaves the organizations
comes under the purview of HRM.
 The scope of Human Resources Management extends to:
All the decisions, strategies, factors, principles, operations, practices, functions,
activities and methods related to the management of people as employees in any type of
organization.
All the dimensions related to people in their employment relationships, and all the
dynamics that flow from it
Scope of HRM
Scope of HRM
 American Society for Training and Development (ASTD) conducted fairly an exhaustive study
in this field and identified nine broad areas of activities of HRM. These are given below:
Human Resource Planning
Design of the Organization and Job
Selection and Staffing
Training and Development
Organizational Development
Compensation and Benefits
Employee Assistance
Union/Labour Relations
Personnel Research and Information System
Scope of HRM
 a) Human Resource Planning: The objective of HR Planning is to ensure that the
organization has the right types of persons at the right time at the right place. It prepares
human resources inventory with a view to assess present and future needs, availability and
possible shortages in human resource. Thereupon, HR Planning forecast demand and
supplies and identify sources of selection. HR Planning develops strategies both long-term
and short-term, to meet the man-power requirement.
 b) Design of Organization and Job: This is the task of laying down organization structure,
authority, relationship and responsibilities. This will also mean definition of work contents
for each position in the organization. This is done by “job description”. Another important
step is “Job specification”. Job specification identifies the attributes of persons who will
be most suitable for each job which is defined by job description.
 c) Selection and Staffing: This is the process of recruitment and selection of staff. This
involves matching people and their expectations with which the job specifications and
career path available within the organization.
Scope of HRM
 d) Training and Development: This involves an organized attempt to find out training
needs of the individuals to meet the knowledge and skill which is needed not only to
perform current job but also to fulfil the future needs of the organization.
 e) Organizational Development: This is an important aspect whereby “Synergetic effect”
is generated in an organization i.e. healthy interpersonal and inter-group relationship
within the organization.
 f) Compensation and Benefits: This is the area of wages and salaries administration
where wages and compensations are fixed scientifically to meet fairness and equity
criteria. In addition labour welfare measures are involved which include benefits and
services.
 g) Employee Assistance: Each employee is unique in character, personality, expectation
and temperament. By and large each one of them faces problems everyday. Some are
personal some are official. In their case he or she remains worried. Such worries must be
removed to make him or her more productive and happy.
Scope of HRM
 h) Union-Labour Relations: Healthy Industrial and Labour relations are very important
for enhancing peace and productivity in an organization. This is one of the areas of HRM.
 i) Personnel Research and Information System: Knowledge on behavioral science and
industrial psychology throws better insight into the workers expectations, aspirations and
behaviour. Advancement of technology of product and production methods have created
working environment which are much different from the past. Globalization of economy
has increased competition many fold. Science of ergonomics gives better ideas of doing a
work more conveniently by an employee. Thus, continuous research in HR areas is an
unavoidable requirement. It must also take special care for improving exchange of
information through effective communication systems on a continuous basis especially on
moral and motivation.
 HRM is a broad concept: Personnel Management (PM) and Human resource development
(HRD) are a part of HRM
Scope of HRM
 h) Union-Labour Relations: Healthy Industrial and Labour relations are very important
for enhancing peace and productivity in an organization. This is one of the areas of HRM.
 i) Personnel Research and Information System: Knowledge on behavioral science and
industrial psychology throws better insight into the workers expectations, aspirations and
behaviour. Advancement of technology of product and production methods have created
working environment which are much different from the past. Globalization of economy
has increased competition many fold. Science of ergonomics gives better ideas of doing a
work more conveniently by an employee. Thus, continuous research in HR areas is an
unavoidable requirement. It must also take special care for improving exchange of
information through effective communication systems on a continuous basis especially on
moral and motivation.
 HRM is a broad concept: Personnel Management (PM) and Human resource development
(HRD) are a part of HRM
Traditional Vs Strategic HR
Traditional Vs Strategic HR
 Traditional human resources management was more focused on operations than the long-
range, strategic view. Whereas, Strategic HRM focuses more on the role of HR as an
integral component of the organization.
 In the traditional framework, HR mainly is transactional and reactive. HR staff place job
ads based on departmental requests for additional workers, respond to employee
questions about benefits and payroll, and process terminations and resignations for
employees leaving the company. In this reactive role, HR department actions may be
fragmented and even rushed in some cases.
 Strategic HRM, on the other hand, is proactive because the leaders usually are engaged
partners in formulating the long-range, strategic direction of the company. In this role,
HRM focuses on activities like assessing the availability of workers based on projections
for business growth or the labor market availability.
Traditional Vs Strategic HR

This shift from the transactional recruitment and selection

process to a broad talent acquisition model considers the long-
term organizational goals concerning workforce planning.
Traditional Vs Strategic HR
 While the primary function of traditional HRM is workforce development, its goals
include ensuring there are enough employees to sustain the company operations.
Traditional HRM further ensures accuracy and order concerning records, processes and
procedures.

Strategic HRM, by contrast, encompasses the broader aspects of

the organization and its purpose.
In addition to having a more significant role in determining the
strategic direction of the company as well as employee
development, strategic HRM business objectives align with the
organization's goals.
HR Based Competitive Advantage
HR Based Competitive Advantage
VRIO Framework…..HR Based Competitive Advantage
Line Mangers role in HR
Line Mangers role in HR for Competitive
Advantage
Line Mangers role in HR for Competitive
Advantage
A line manager is responsible for managing employees and resources to achieve specific
functional or organizational goals. Some of these include:

•Recruiting and hiring talent to fill team positions

•Providing training and support to new hires
•Cross training employees to ensure job rotation and minimize assignment coverage gaps
•Providing coaching and performance feedback to all team members
•Communicating and ensuring understanding of functional or departmental goals
•Monitoring individual and team metrics and performance versus targets
•Identifying the need for corrective actions
•Ensuring quality standards for all processes
•Evaluating overall team and individual performance and delivering performance reviews
•Engaging and coordinating with other line managers across the organization
•Providing reports on productivity and other performance indicators to management
Continued in Part 2, 3 and 4