Compulsory course

Human Resource Management

MBA II Semester

HRM in Perspective
by

Mohammed Abdul Nayeem

Human Resources (HR)

The people an
organization employs to
carry out various jobs,
tasks, and functions in
exchange for wages,
salaries, and other
rewards.

What Is Human Resource

Management (HRM) ?
The comprehensive set of managerial
activities and tasks concerned with
developing and maintaining a qualified
workforcehuman resourcesin ways that
contribute to organizational effectiveness.
Why HRM?
Great business plans, products and services can
easily be copied by your competitors. Great
personnel cannot.

Fig. 1.1 Basic Functions of Human Resource

Management

 Contemporary HRM Perspectives

Recognizing the importance of people
as a source of competitive advantage
Hiring, rewarding, and managing people
effectively within the limits of the law
Balancing legal and ethical concerns
with the needs of the organization

Evolution of the Human Resource

Function

Scientific Management,
Was concerned with how to
structure jobs to maximize
efficiency and productivity.

The Human Relations Era

Emphasized keeping workers
happy, since happy workers
were productive workers.

HR Specialists
The 1964 Civil Rights Act and
other legal regulations made
hiring and promoting
employees more complex.

Personnel Management.
Organizations grew and
created personnel
departments to work with
employees.

rsonnel vs Human Resource Management

Element

Personnel

HRM

Employee Relations

Adversarial

Development and
Collaborative

Orientation

Reactive and Piecemeal

Proactive & Business

Focused

Organisation

Separate Function

Integrated Function

Values

Order, equity &

consistency

Client & Problem

Focused

Role of Specialist

Regulatory &Record
keeping

Problem sensing &

tailored Solutions

Role of Management
Overall output

Passive Ownership

Active ownership

Compartmentalized
Thinking &Acting

Linking Various HR
levers to Business needs

HRM in the Electronic

Age
Electronic technology has not
drastically affected how human
resources are managed, but
certainly is now affecting how HRM
systems are delivered.

e-HRM
e-HRM (electronic HRM) uses web
application technology to provide an
on-line real-time solution.
Two features are combined together
in e-HRM: use of electronic media
and participation of users.

HR Analytics

HR Analytics is going to have a big

impact on organizations in years to
come.
Through application of statistical
techniques (e.g., regression analysis,
cluster analysis, factor analysis etc.) and
synthesis of multiple sources of data HR
Analytics works as a decision support
system and provides much needed
business insights to HR professionals.

 Emerging HR Challenges
Financial crises
Stress in employees lives
Managing knowledge workers

Fig 1.2 Goals of Human Resource Management

Promoting Individual Growth

and Development
Education
Skills training
Career development

Psychological Contract
The overall set of expectations
held by the employee with regard
to what he or she will contribute
to the organization and that are
held by the organization with
regard to what it will provide to
the individual in return.

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 organizations tasks.
Are directly responsible for creating
goods and services.

Staff manager
A manager who assists and advises line managers.
Are responsible for supporting line managements
efforts to achieve organizational roles and
objectives.

Organizations have blurred this

distinction.

Human Resource Managers

Duties
Coordinative
Function

Line Function
Line Authority
Implied Authority

Functional Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

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

HRM in Smaller Organizations

Small organizations use operating
managers to handle basic HR
functions.
Small independent businesses
generally operate in the same way
as small organizations.
Very small organizations are
exempt from many legal
regulations.

HRM in Larger
Organizations
As an organization grows, a
separate HR unit becomes a
necessity.
At 200 to 250 employees, it
establishes
a self-contained HR department.
As growth continues, the HR
department develops into
specialized departments.

The Partnership of Line Managers

and HR Departments (cont.)

Responsibilities of Human Resources Managers

1.
2.
3.
4.

Strategic advice and counsel

Service
Policy formulation and implementation
Employee advocacy

Competencies Human Resources Managers Require

.
.
.

Business mastery
HR mastery
Personal credibility

Fig 1.3 The Human Resource

Management Function at Shell Oil

The Human Resource Managers

Proficiencies

New Proficiencies
HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies

Human Resource
Management System
An integrated and interrelated
approach to managing human
resources that fully recognizes the
interdependence among the various
tasks and functions that must be
performed.

A Systems-Based
Perspective

The HRM subsystem both affects

and
is affected by other
organizational subsystems.
Utility Analysis
Attempts to measure, in objective
terms, the impact and effectiveness
of HRM practices in terms of metrics
such as a firms financial
performance.

Fig 1.4 A Systems View of Human Resource

Management

Fig 1.5 Human Resource Management as

a Center for Expertise

Role of Human Resource Professionals

First, HR can play the vital role of strategic execution

and thereby take a strategic partners role.
Second, it can bring forth the much needed
administrative efficiency in the workplace.
Third, it can take employee championing role by
helping employees to voice their concerns
Finally, HR can become a change agent.

HR Compass
With the support of XLRI Jamshedpur, a
leading business school in the field of HR in
India, Confederation of Indian Industry (CII),
and National Human Resource Development
Network (NHRD) have developed a HR
competency Model, called HR Compass.
Classifying competencies under Technical vs.
Behavioral and Functional vs Generic the 22
matrix identified 4 competency typologies

HR Compass
Generic

Behavioral

Technica
l

Generic Behavioral

StrategicThinking&
Alignment
ChangeOrientation
Networking
Management
Generic Technical

BusinessKnowledge
FinancialPerspective

Functional

Functional Behavioral

ServiceOrientation
PersonalCredibility
ExecutionExcellence

Functional Technical

Recruitment&Selection
PerformanceManagement
TalentManagement
CompensationandBenefit
ManagingCulture,Design&
Change
ERandLabourLaws

HR Compass
Functional Technical competencies refer to
HR specific functional knowledge and skills
which are required for a HR professional for
delivering the HR tasks.
Functional Behavioral competencies refer
to those behavioral competencies which
are more critical for HR professionals than
other professionals (e.g., service
orientation, execution excellence etc.).

HR Compass
Generic Technical Competencies refer to
the competencies required for HR to play
strategic partners role.
Generic Behavioral competencies refer to
those critical behavioral competencies
which are required for all functions (e.g.,
strategic thinking, change orientation,
networking management etc.).

 Careers in HRM are expected

to continue to grow.
How to enter the HR field:
Earn a degreea master of
science or MBA in HR.
Seek an entry level job, and
become a line manager.

The Human Resource Managers

Proficiencies (continued)
Managing within the Law
Equal employment laws (US)
Industrial Disputes Act of 1947
Occupational safety and health laws
Other labor laws

Managing Ethics
Ethical lapses
Sarbanes-Oxley in 2003
Securities and Exchange Board of India (SEBI)
Ministry of Corporate Affairs (MCA)

Basic Themes
HRM is the responsibility of every manager.
HR managers must defend their plans and
contributions in measurable terms.
All personnel actions and decisions have
strategic implications.
All managers rely on information technology.
Virtually every personnel decision has legal
implications.

South West Airlines Activity System

HR and Competitive Advantage

Competitive advantage
Any factors that allow an
organization to differentiate its
product or service from those of its
competitors to increase market
share.
Superior human resources are an
important source of competitive
advantage

Strategic Human Resources

Management (SHRM)
The linking of HRM with strategic goals
and objectives in order to improve
business performance and develop
organizational cultures that foster
innovation and flexibility.
Formulating and executing HR systems
HR policies and activitiesthat produce
the employee competencies and
behaviors the company needs to achieve
its strategic aims.

Linking Corporate and HR Strategies

Competitive Challenges and

Human Resources Management

Top challenges include:

Responding Strategically to Changes in the Marketplace

Competing, Recruiting, and Staffing Globally
Setting and Achieving Corporate Social Responsibility
and Sustainability Goals
Advancing HRM with Technology
Containing Costs While Retaining Top Talent and
Maximizing Productivity
Responding to the Demographic and Diversity
Challenges of the Workforce
Adapting to Educational and Cultural Shifts Affecting
the Workforce

HRM in India
In the 1970s and 1980s typical HRM functions in organization
included:

Personnel and administration

Industrial relations

Labor welfare

Up to the mid-80s human resource management in

Indian organizations grew through various
phases under the influence of the following
factors:

A philanthropic viewpoint about doing good for

workers
A legislative framework
Government policies
Trade unions
Emerging trends/concepts in management
Changes in the economy