MM ZC441: Human

Resource Management
BITS Pilani Lecture-1 Date :9/1/16 Total Slides : 43 Swati Alok
Hyderabad Campus
Discuss.

Every manager
is
an
HR manager

BITS Pilani, Hyderabad Campus

Every manager is an HR
manager

Line manager: A manager who is authorized to direct the

work of subordinates and is responsible for
accomplishing the organizations tasks.
Staff manager :A manager who assists and advises line
managers.

Line employee: an employee involved directly in producing

the companys goods or delivering services
Staff employees are those who support the line function

BITS Pilani, Hyderabad Campus

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 firms 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

BITS Pilani, Hyderabad Campus

 BITS Pilani
Hyderabad Campus

Chapter 1 : Understanding the Nature and Scope of Human Resource Management

Chapter 2 : Context of Human Resource Management
Text Book: Human Resource Management: Text and Cases, Tata McGraw Hill, 7th Edition,
by K Aswathappa
Learning Objectives

Introduction
Meaning & Definition of HRM
Scope of HRM
Differences between PM , HRM, IR, HRD
HRM-Functions & Objectives
Evolution of HRM in India
Why Study HRM?
Harvard HRM Model
External and internal environment impacting HR functions

BITS Pilani, Hyderabad Campus

What is ManagemenT

The process of deciding how best to use a

businesss resources to produce good or provide
services (achieve the goal)
Men ,Machine, Materials, Methods ,Money
Tactfully: efficiently and effectively
Efficient minimum resource
Effective reach the goal

BITS Pilani, Hyderabad Campus

 Company president summed up:
For many years it has been said that capital is the
bottleneck for developing industry. I dont think this
any longer holds true. I think its the workforce and
the companys inability to recruit and maintain a
good work force that does constitute the bottleneck
for production. I dont know of any project backed
by good ideas and stopped by a shortage of cash. I
do know of industries whose growth has been
partly stopped because they cant maintain an
efficient and enthusiastic labor force and I think this
will hold true even more in future
Introduction

There is unlimited people potential that is untapped

The universal challenge is getting results through people

Acquiring ,developing and maintaining human talent

Building the human capital

Its people that lend competitive advantage

BITS Pilani, Hyderabad Campus

Definition

HRM refers to acquisition,

development and retentions
of Human Resources in an
organization.

BITS Pilani, Hyderabad Campus

Caselet-1 Jack Nelsons
Problem
As a new member of the board of directors for a local bank,
Jack Nelson was being introduced to all employees in the
head office. When he was introduced to Ruth Johnson, he
was curious about her work and asked her what her machine
did. Johnson replied that she really did not know what the
machine was called or what it did. She explained that she
had only been working there for only two months. She did,
however, know precisely how to operate the machine.
According to her line manager, she was an excellent
employee.

BITS Pilani, Hyderabad Campus

Caselet-1

At one of the branch offices the line manager in charge

spoke to Nelson confidentially, telling him that something
was wrong but she did not know what. For one thing she
explained that employee turnover was high, and no sooner
had an employee been put on the job than another one
resigned. With customers to see and loans to be made,
she explained, she had little time to work with the new
employees as they came and went.
All branch line managers hired their own employees without
communication with the head office or other branches.
When an opening developed, the line manager tried to find
a suitable employee to replace the worker who had quit.

BITS Pilani, Hyderabad Campus

Caselet-1 Jack Nelsons
Problem

After touring the 22 branches and finding similar problems

in many of them, Nelson wondered what the head office
should or what action should be taken. The organisation
was generally regarded as being a well-run institution
that had grown form 275 to 791 employee during the last
ten years. The more he thought about the matter, the
more puzzled Nelson became. He couldnt quite put his
finger on the problem, and he didnt know whether to
report his findings to the company chairman.

BITS Pilani, Hyderabad Campus

Caselet-1 Jack Nelsons Problem (What)

What do you think is causing some

of the problems in the bank head
office and branches?

BITS Pilani, Hyderabad Campus

Caselet-1 Jack Nelsons Problem
There is clearly a problem with communication,
lack of consistency in the policies and procedures of
various locations.
no cohesiveness to the staffing activities of this
organization
Employee commitment low, attrition high

BITS Pilani, Hyderabad Campus

Model of HRM

BITS Pilani, Hyderabad Campus

Caselet-1 Jack Nelsons
Problem (How?)

What specific functions

should an HRM department
carry out?

BITS Pilani, Hyderabad Campus

Operative functions of HR

ACQUIRING: Job analysis, HRP, Recruitment, Selection,

Placement, Induction, Internal Mobility

DEVELOPMENT: Competency profiling, Training and

development, Performance & potential management, Career
management, 360 degree feedback

RETENTION: Job design, Work scheduling, Job evaluation,

Compensation administration, Incentives and benefits, Health,
Safety, Welfare & Industrial Relations

BITS Pilani, Hyderabad Campus

HRM involves

Flow of people: hiring, promotions, transfers, training and

development ; Developing management system that
promote commitment
Flow of information: keeping organizations in touch with
key external realities, managing internal communication,
designing information technology infrastructure;
Integration : Policies and procedures need to be well
integrated and consistence
Flow of work: Developing practices that foster team work
and employees feel valued and rewarded

BITS Pilani, Hyderabad Campus

The Harvard Model

Stakeholders Interests
Shareholders
Management
Employee Groups
Government
Community
Unions HRM Long Term
Employee HR outcomes Consequences
Influence Commitment Individual well
Situational Factors
HR flow Competence being
Workforce
Reward Congruence Organizational
characteristics
systems Cost- well being
Business strategy and
Work systems Effectiveness Societal well
conditions
being
Management
Philosophy
Labor market
Unions
Task technology
Laws and Societal
Values

BITS Pilani, Hyderabad Campus

Objectives of HRM (WHY)

Societal objectives
To be ethically & socially responsible to the needs of the
society while minimizing the negative impact of such
demands upon the organization.
Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
Personal objectives
To assist employees in achieving their personal goals in
a manner that their personal goals enhance the
individuals contribution to the organization

BITS Pilani, Hyderabad Campus

HRM Objectives Supporting Functions
1.Societal 1.Legal compliance
2.Benefits 3.Union-Mgmt
relation
2.Organisational 1.HR Planning
2.Employee relation
3.Selection
4.T &D
5.Appriasal
6.Placement & 7.Assessment

3.Personal 1.T&D
2.Placement
3.Compemsation
4.Assessment

22
BITS Pilani, Hyderabad Campus
Model of HRM
The HarvardInterests
Stakeholders Model
Shareholders
Management
Employee Groups
Government
Community
Unions HRM Long Term
Employee HR outcomes Consequences
Influence Commitment Individual well
Situational Factors
HR flow Competence being
Workforce
Reward Congruence Organizational
characteristics
systems Cost- well being
Business strategy and
Work systems Effectiveness Societal well
conditions
being
Management
Philosophy
Labor market
Unions
Task technology
Laws and Societal
Values

BITS Pilani, Hyderabad Campus

Model of HRM
The HarvardInterests
Stakeholders Model
Shareholders
Management
Employee Groups
Government
Community
Unions HRM Long Term
Employee HR outcomes Consequences
Influence Commitment Individual well
Situational Factors
HR flow Competence being
Workforce
Reward Congruence Organizational
characteristics
systems Cost- well being
Business strategy and
Work systems Effectiveness Societal well
conditions
being
Management
Philosophy
Labor market
Unions
Task technology
Laws and Societal
Values

BITS Pilani, Hyderabad Campus

Environment may be understood as all those forces
which have their bearing on the functioning of HR
department

BITS Pilani, Hyderabad Campus

 Context
Forcesofare
HRM

General Specific

Political- Legal Customers

Economic Suppliers
Technological Competitors
Socio-Cultural forces Unions

BITS Pilani, Hyderabad Campus

Political Legal

Legislature, executive , judiciary ,

Article 14: equality before law

Article 15: no discrimination
Article 23: no forced labour
Prohibition of child labour, equal wage act, factor act,
maternity leave , workmen compensation, provident
fund, gratuity act etc
Influences recruitment, placement, training, Employee-
relations

BITS Pilani, Hyderabad Campus

Economics

Economic forces income level, purchasing power,

savings, debts, literacy, health, male/female ratio,
population mix etc
All these influences quality of labor which in turn impacts
productivity

BITS Pilani, Hyderabad Campus

Globalization & implications of
global economy

Tendency of firms to extend their sales , ownership

and manufacturing to newer markets abroad
Worldwide company culture
Worldwide recruiting
Global alliance needs highly trained and devoted staff
Deal with virtual workforce
Outsourcing

BITS Pilani, Hyderabad Campus

Technology

Technology plays a vital role in HR functions, in order to

make people more intellectual and efficient.
Managing well knowledgeable people - incentives, WLB,
Flexi time, profit sharing
HRIS: managing a virtual workforce
managing employee alienation
training & retraining employees to manage obsolescence.
providing work life balance
Ex: bank installed special software that made CSR to handle customers
inquiries. Seeking to capitalize on new software, bank upgraded CSR jobs.;
gave training , how to sell other services and thereby improved, profitability.
Other bank didnt ; just system helped service rep. Handle few more calls

BITS Pilani, Hyderabad Campus

Socio- Cultural influence
behaviour of employees
Culture refers to the complex whole which includes
knowledge, belief, art Morales, laws, customs and other
capabilities and habits acquired by an Individual as a member
of society.
Eg: Tata and L& T Tatas culture Hire the right people and let
them free L & Ts culture They are known for their
professional approach

Culture indicates attitude of workers towards work

Time dimensions which influence HRM (past, present, future)
Achievement oriented, effort-reward
Individualistic or collectivism

BITS Pilani, Hyderabad Campus

Specific environment

Suppliers For HR dept, suppliers are those who provide

human Resources to an organization. Ex: Consulting
firms, training institutes.
Competitors Competition plays significant role in HR
function and Activities. Organization need to groom its
employees through well managed HR planning
programmes to withstand competition
Customers Customers have their own influence on
companies personal Functions . So everybody in the
organization must endeavor to offer products which
gives satisfaction for the money customers pay.

BITS Pilani, Hyderabad Campus

Specific environment

Unions
A firms personal activities will be influenced by its own
unions as well as the unions of other plants.
A trade union may be understood as association of workers
or management formed to protect their own individual
interest.
All HR activities like recruitment, selection, training,
compensation are carried out in consultation with union
leaders. Eg : The Bokaro steel plant has 68 trade unions.
Calcutta Corporation has about 100 trade unions.

BITS Pilani, Hyderabad Campus

Models of HRM

The HarvardInterests
Stakeholders Model
Shareholders
Management
Employee Groups
Government
Community
Unions Long Term
HRM
HR outcomes Consequences
Employee
Commitment Individual well
Situational Factors Influence
Competence being
Workforce HR flow
Congruence Organizational
characteristics Reward
Cost- well being
Business strategy and systems
Effectiveness Societal well
conditions Work systems
being
Management
Philosophy
Labor market
Unions
Task technology
Laws and Societal
Values

BITS Pilani, Hyderabad Campus

Course Handout

BITS Pilani, Hyderabad Campus

Course Handout

BITS Pilani, Hyderabad Campus

Semantics
Semantics HRM vs. PM
Mutuality
Labour management
Legal compliance

HRD and IRM What are they?

Segments of HRM

BITS Pilani, Hyderabad Campus

 Difference between PM and HRM
Personnel Management
Separately negotiated
Collective bargaining contracts
Many
Division of labour
Reach temporary truce
Controlled access to courses
personnel procedures
Labour is treated as a tool which is
expendable and replaceable
Interests of the organisation are
uppermost
Precedes HRM
external
HRM
harmonisation
Individual contract
Few
Team work
Manage climate and culture
Learning companies
wide ranging culture, structural
and personnel strategies.
People are treated as assets to be
used for the benefit of an
organisation, its employees and
the society as a whole.
Mutuality of interests
Latest in the evaluation of the subject
internal
BITS Pilani, Hyderabad Campus
Composition of a HR /
Personnel Department
Owner/Manager

Manager-
Manager-Personnel Manager-HRD Manager-IR
Administration

Training &
Appraisal
Development

PR Canteen Medical Welfare Transport Legal

HRP Hiring Grievances Handling Compensation

BITS Pilani, Hyderabad Campus

IMPORTANCE OF HRM

What can go wrong!

Hire the wrong person
High turnover
People not performing
Waste time with useless interviews
Have your company taken to court because of discriminatory
actions
Have your company cited under occupational safety laws for
unsafe practices
Unfair and inequitable salaries
Lack of training
Commit unfair labor practices

Small mistakes = huge loses

BITS Pilani, Hyderabad Campus

Summary of Chapter 1-2

HRM includes a set of programmes, functions and

activities designed and implemented to maximise
organisational effectiveness along with employee growth.
HRM is inclusive of IR, PM and HRD
HRM Harvard Models provide analytical framework for
studying people management
Every manager is HR manager as there is always HR
responsibilities taken by line managers

BITS Pilani, Hyderabad Campus

Summary of Chapter 1-2

The HRM environment comprises of both external and

internal forces
The external environment consists of political-legal,
economic, technological and cultural factors (PEST)
The internal environment consists of unions, suppliers,
customers , competitors and professional bodies.
The study of environment enables HR experts to
become proactive in their approach to personnel aspects

BITS Pilani, Hyderabad Campus

Evaluation

No Name Type Durat Weight

ion
EC-1 Quiz-I/ Assignment-I Online - 5%

Quiz-II 5%

Quiz-III/ Assignment-II 5%

EC-2 Mid-Semester Test Closed 2 hours 35%

Book

EC-3 Comprehensive Exam Open Book 3 hours 50%

BITS Pilani, Hyderabad Campus