Amity School of Business

Amity School of Business

SEMESTER IV
HUMAN RESOURCE MANAGEMENT
(BBAHR-30501)

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• “ YOU CAN GET CAPITAL AND ERECT

BUILDINGS, BUT IT TAKES PEOPLE TO
BUILD A BUSINESS”
- Thomas Watson
( Founder, IBM)

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• Module I: Fundamentals of HRM

• Introduction, Concept and Functions
• Scope and Significance of Human Resource
Management
• Personnel to HRM,
• HRM Model
• Role and Responsibilities of the Human
Resource Manager and
• Essentials of Sound HR Policies.
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Assignment Question
Identify and discuss the difference in HR activities
of following sectors:
• (a) FMCG
• (b) Telecommunications
• ( c) Information Technology

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QUESTIONS TO ANSWER
1. What are the various functions of HRM?
2. Discuss the scope of HRM with the help of HRM
model.
3. What is the significance of HRM in any
organisation? Explain with the help of relevant
examples.
4. Is personnel management same as HRM? If not,
highlight the differences between them.
5. HR manager plays a significant role in efficient
functioning of any organisation. Explain the
various roles and responsibilities he has to pursue
in this course of management.
6. What are the essentials of sound HR policies?
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 CORPORATE HONCHOS MUSE Amity School of Business

 Adi Godrej: “It is really important for me to spend time with my

people. We have a number of HRD consultants, HRD initiatives are
time-consuming and one has to be patient for cultural and mind-set
changes”.

 Phillips: According to Rama Chandran, MD, Phillips

India, “my human resource department is the center
of competence”.
 HLL: At Hindustan Lever the accent is on hiring people
who are even better than the ones at HLL. HLL now is a
people-and-strategy company”.

 Brian Friedman: “It is important to realize that employees

are your greatest asset. Unlike other assets, people are the
only asset which does not depreciate over time. On the
contrary, the more you use them, the better they get over
time. Their value keeps on appreciating with the passage of 6
time”.
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Why Human Factor is the most Important?

• Human resources are unique in character.

• HR alone can produce an output greater than its input.

• HR is the only resource which can not be duplicated by competitors.

• HR is most complex and unpredictable in its behavior.

• This is the only resource which appreciates in its value with the passage of time.

• They are capable of giving continuous and cumulative returns to the organisation.

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Introduction/ Concept
 HRM is concerned with getting better results with the
collaboration of people. It is an integral but distinctive part
of management, concerned with people at work and their
relationships within the enterprise.

 A central feature of modern human resource management

is the idea of engaging the commitment of employees with
the goals of the organization. This means that human
resource management is not just about administering
people but also about shaping the culture of the
organization

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 HRM is the qualitative improvement of human beings

who are considered the most valuable assets of an
organization-the sources, resources, and end-users of
all products and services.

 Human resource management is the strategic and coherent

approach to the management of an organization's most
valued assets - the people working there who individually
and collectively contribute to the achievement of the
objectives of the business

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HRM: EVOLUTION IN INDIA

• The history of HRM in India dates back to the
early 1980s when Mr. Udai Pareek and Mr.
T.V.Rao championed the cause of the HRM
movement.
• Early adopters: BHEL,SBI.
• Initially Indian organisations used to have an IR
dept. which was subsequently rechristened as
Personnel and IR dept.
• The welfare dept. was its sub-dept.

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PERIOD STATUS EMPHASIS ROLE
1920-30 Clerical Statutory, welfare, •Welfare
Paternalistic activities administrator.
•Policeman.
1940-60 Administrative Expanding the role to •Appraiser.
cover Labor, Welfare, IR & •Advisor
Personnel administration •Mediator.
•Legal advisor
•Fire fighting
1970-80 Management Professionalism, emphasis •Change agent
on efficiency & •Integrator
effectiveness, Regulatory, •Trainer
conforming, imposing of
standards, •Educator
developmental.
1990s- Executive Human values, •Developer
onwards productivity through •Counselor
people, Proactive, Growth •Coach
oriented.
•Mentor
•Problem solver 11
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Functions of HR

OPERATIVE
MANAGERIAL FUNCTIONS
FUNCTIONS Procurement
Planning Development

Organising Compensation
Motivation
Directing
Maintenance
Controlling Integration
Emerging Issues
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Operative functions of HR
PROCUREMENT Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility.

Competency profiling, Training

DEVELOPMENT and development, Performance &
potential management, Career
management, 360 degree
feedback.
Job design, Work scheduling, Job
COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits. 13
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Operative functions of HR (contd.)

Health, Safety, Welfare,
MAINTENANCE Social security.

Industrial relations, Grievance,

Discipline, Trade unions,
INTEGRATION Participation, Collective
bargaining, Teams and
teamwork, participation,
empowerment.

EMERGING HRIS, HR audit, job stress,

counselling, mentoring,
ISSUES
International HRM.
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Nature of HRM
• Pervasive force : It is present in all enterprises

• Action oriented: HRM focsses attention on action

,rather than record keeping ,written procedures & rules

• Individually oriented: It tries to help employees

develop their potential fully
• People oriented : HRM is all about people at work
both as individuals & groups
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• Future oriented: Effective HRM helps an

organization meet its goals in future by providing
competent employees

• Development oriented : HRM intends to

develop the full potential of employees

• Integrating mechanism: HRM tries to build and

maintain cordial relationship between peoople at
different levels

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• Auxiliary function: HR department exists to

assists and advise the line or operating
managers to do their personnel work effectively

• Continous Function : HRM requires constant

alertness & awareness of human relations and
their importance in everyday operations

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 SCOPE OF HRM
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 The Indian Institute of Personnel Management (IIPM)

has defined the scope of HRM as follows:-- Canteens,
crèches, rest
Manpower rooms, lunch
planning, Personnel or Labor rooms, medical
Recruitment, help, health &
Selection,
Aspect
safety, recreations
placement, & cultural facilities
Induction, Welfare Aspect Union
etc.
transfer, management
promotion, relations, Joint
T&D, Layoff consultation,
& Grievance
Retrenchmen Industrial handling,
t, wage & Relations disciplinary
salary Aspect actions,
administratio settlement of
n, incentives, Industrial
demotion, 18
disputes, etc.
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SIGNIFICANCE OF HRM
 Human resource Planning.
1. At Enterprise Level  Employee Relations.
 Recruitment & Selection.
 T&D.
 Performance appraisal.
 Placement.
 Assessment.
 Motivation.

 Promote team work & team

spirit.
2. At Individual Level.
 Offers excellent growth
opportunities.
 Improve Quality of work life.
 Allows people to work with
diligence and commitment.

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3. At Society Level.  Legal Compliance.

 Maintain balance between
Jobs available & the Job
seekers.
 Eliminating wastage of HR.
 Union management
relations.
4. At National Level.
 Best HR practices helps in
better utilization of natural,
physical & financial
resources.
 People with right skills &
attitude helps nation to grow
and compete with the best
in the world leading to better
standard of living and better
employment.
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Organizational stages and HRM

Needs
• Stage 1: Start up---Recruitment, basic
compensation and administrative systems.
• Stage 2 : Growth--- Advanced recruitment,
training and socialization process.
• Stage 3 : Control---Controlled investment in
business related skills.
• Stage 4 : Integration---Effective integration
mechanisms between various HR components.
• Stage 5 : Flexibility--- Monitoring and flexibility to
adjust to market and environmental needs.
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Source: Baird, L. and I. Mesholam(1992)
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GOOD HR PRACTICES HELP

•Attract and retain talent

•Train people for challenging roles
•Develop skills and competencies
•Promote team-spirit
•Develop loyalty and commitment
•Increase productivity and profits
•Improve job satisfaction
•Enhance standard of living.
•Generate employment opportunities. 22
 SLICE OF GOOD HR PRACTICES
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AND THEIR PAYOFFS

 Toyota is one company which has benefited immensely from
employee suggestion scheme. The company’s suggestion
scheme nets almost 2,00,000 suggestions per year, that is
33% suggestions per employee every year. Interestingly,
95% of these are implemented. That makes about 5,000
improvements per day

 Employee suggestions helped British Airways cut

its costs by £4.5 million.

 WIPRO, another software leader, has excellent

human policies and practices. One such is the way a
potential job-hopper is handled. EXIT-Interviews are
held when people leave WIPRO. Reasons why people
leave are ascertained and interestingly, the company
helps the employee find placements in other firms
with a guarantee that the doors of WIPRO would
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always be kept open to those willing to come back,
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OBJECTIVES OF HRM
Personal Objectives

Functional Objectives

Organizational Objectives

Societal Objectives

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• Functional objectives – to maintain the

department’s contribution at a level appropriate
to the organization’s needs.

• Personal objectives – to assist employees in

achieving their personal goals, and enhancing
the individuals contribution to the organization.

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• Societal objectives – to be ethically and

socially responsible to the needs and challenges
of the society .

• Organizational objectives – to recognize the

role of HRM in bringing about organizational
effectiveness.

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E.g.HRM OBJECTIVES AT WIPRO

• To respect the individual, as people are
the greatest asset.
• To govern individual and company
relationships with the highest standard of
conduct and integrity.
• To be close to the customer through
employees.
• To achieve and maintain leadership in
people management.
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PERSONNEL MANAGEMENT
 According to National Institute of Personnel Management
of India, “personnel management is concerned with
people at work and their relationships with each other
and organization.”

 Personnel management include administrative tasks that

are both traditional and routine.

 Personnel management is typically the sole responsibility

of an organization's personnel department.

 PM considered to be an independent function of an

organization.
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PM VS HRM
• Strict adherence of • Aim to go beyond
written employment employment contract.
contract. • Business needs are the
• Rules and procedures guide to management
are the guide to action.
management action. • Emphasis is on nurturing
• Emphasis is on talent.
monitoring employees. • Speed of decision-
• Speed of decision- making is fast.
making is slow. • Prized-management
• Prized-management skill is facilitation.
skill is negotiation.
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PM VS HRM
• Key relations are that of
labour and management.
• Management role is
transactional.
• Communication is indirect
and have restricted flow.
• Job design is according to
division of labour.
• Pay is fixed according to
grades.
• Training and development is
controlled depending on the
access to different courses.
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• Key relations are with the
customers (internal and
external)
• Management role is
transformational.
• Communication is direct and
have unrestricted flow.
• Job design is as per
teamwork requirements.
• Pay is performance –related.
• Training and development is
a continuous phenomenon as
organisations are learning
organisations.
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HRM Model

• It helps to understand the theoretical

perspectives of HRM. It provide an
analytical framework for studying HRM.

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HRM Model Amity School of Business
External Environment

Internal Environment

Human Resource Planning

Job Analysis

Recruitment

Selection

Induction
ss enevi t c eff El anoi t azi nagr O

Training and Development

Performance Appraisal

Remuneration

Industrial Relations
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ROLE OF HR
MANAGER

ADMINISTRATIVE OPERATIONAL STRATEGIC

ROLE ROLE ROLE

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ADMINISTRATIVE ROLES
• Policy maker,
• Advisor,
• Housekeeper,
• Counsellor,
• Welfare officer,
• Legal consultant.

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OPERATIONAL ROLES
• Recruiter,
• Trainer, developer, motivator,
• Linking-pin, coordinator,
• Mediator,
• Employee champion.

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STRATEGIC ROLES
• Change agent,
• Strategic partner.

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EMERGING ROLE OF HR
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HRM ENVIRONMENT Amity School of Business

VISION
AND
MISSION
BUSINESS
STRATEGY
HR HRM
SYSTEM
S
Organization
al Culture
Organization
al Structure

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 HR-POLICY
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• A policy is a predetermined course of action
established to guide the performance of work
towards accepted objectives.

• HR policies are statements of personnel objectives of

an organization and provide a broad framework
within which decisions on personnel matters can be
made without reference to higher authorities.

• HR policies lay down the criteria for decision making.

• The policies are framed based on the following
sources of information:
1. Past experience of the organization;
2. Existing practices and experiences in other
organizations of same nature;
3. Attitudes, philosophies of the management at
various levels.
4. The knowledge and experience of HR manager
handling HR issues ,etc. 39
 ESSENTIALS OF SOUND HR- Amity School of Business

POLICY
While developing sound HR policies, management should
keep
in mind the following:
 It should be related to OBJECTIVES.
 It should be easy to understand.
 Precise.
 Stable as well as flexible.
 Based on facts.
 Just, fair and equitable.
 Reasonable.
 Should cover interest of all the parties- Employer,
Employee and General public.
 Capable of being executed.
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 EXAMPLE: TATA STEEL Amity School of Business

 The personnel policy of Tata Steel, as contained in the Statement of

Objectives, is given below. The company tries to take care of its
employees:
 By a realistic and generous understanding and acceptance of
their needs and rights and by having an enlightened awareness of
the social problems of the industry;
 By providing adequate wages, good working conditions, job-
security, an effective machinery for redressal of grievances and
suitable opportunities for promotion and self-development
through in-company and external programmes;
 By treating them as individuals, giving them a sense of self-
respect and better understanding of their role in the organization
and satisfying their urge for self-expression through a closer
association with the management;
 By creating a sense of belonging through human and purposeful
activities as an integral part of human relations ensuring their
willing cooperation and loyalty. 41