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Human Resource ManagementPart I
SDM IMD, Term I, 2013
Faculty : Dr. Mousumi Sengupta
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Organizations are open systems and are,
therefore, influenced by the environment
(internal as well as external ), in which they
operate.
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External and internal factors influencingthe HRM function
External factors Internal factors
v Technological factors v Mission & Vision
v Economic challenges v Policies & Processes
v Political factors v Culture
v Social factors v Structure
v Legal and Governmental issues v Employees
v Other issues (e.g.; Trade Union , etc.)
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Most successful and influential
companies in IndiaThe India Index 2013 research has been conducted by Neilsen over a 10 week
period. A panel of over 100 opinion formers answered questions in two waves.
The panel is compiled of four stakeholder audiences: government, business,
media and civil society:
Tata Group
Google India
Maruti Suzuki
Apple
Delhi Metro Rail Corporation
State Bank of India
LIC India
Infosys Tech
Mahindra Group
(Economic Times, 19 Feb 2013)
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From an organizational standpoint, effective HR
practices help in attracting and retaining talent, train
people for challenging roles, develop their skills andcompetencies, increase productivity and profits, and
enhance standard of living .
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DISTINCTION BETWEEN PERSONNEL MANAGEMENT (PM)
& HUMAN RESOURCES MANAGEMENT (HRM)
Dimension PM HRM
Point of View Compliance The psychological
contract based on
commitment
Perception Pluralist perspective A utilitarian
perspective
Outlook Cost-minimization Maximum utilization
Employment contract Careful clarity of
written contracts
Aim to go beyond
contract
Guide to management
action
Procedures Business need
Initiatives Piecemeal Integrated
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Evolution of the HRM Function
Concept What is it all about?
The Commodity
concept
Labor was regarded as a commodity to be bought and sold.
Wages were based on demand and supply. Government did
very little to protect workers.
The Factor ofProduction concept
Labor is like any other factor of production, viz, money,materials, land, etc. Workers are like machine tools.
The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room will
have a positive impact on workers productivity
The Paternalistic
concept/ Paternalism
Management must assume a fatherly and protective attitude
towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.
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The Humanitarianconcept
To improve productivity, physical, social and psychologicalneeds of workers must be met. As Mayo and others stated,
money is less a factor in determining output, than group
standards, group incentives and security. The organization is a
social system that has both economic and social dimensions.
The Human Resource
concept
Employees are the most valuable assets of an organization.
There should be a conscious effort to realize organizational goals
by satisfying needs and aspirations of employees.
The Emerging concept Employees should be accepted as partners in the progress of a
company. They should have a feeling that the organization is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.
Evolution of the HRM Function
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Objectives of HRM
HRM aims at
Achieving organizational goals
Meeting the expectations of employeesDeveloping the knowledge, skills and abilities of employees
Improving the quality of working life
Managing HR in an ethical and socially responsible manner.
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WHO COMPLETES HR TASKS?
Line Managers
Human Resource
Managers
Outsourcing Firms
Technology interfaces
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Major HRM Functions
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Three dimensions HRM
HRM
Personnel Aspect
Recruitment, selection, placement, training,
appraisal, compensation, productivity.
Welfare Aspect
Working conditions, amenities, facilities, benefits.
Industrial Relations Aspect
Union-management relations, disputes settlement,
grievance handing, discipline, collective bargaining.
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Advantages of HR policiesv Delegation
v Uniformity
v Better control
v Standards of efficiency
v Benchmark
v Speedy decisions
v Coordinating devices
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Evaluating the impact of HR policies
The impact of human resource policies can be measured through their
outcomes:
v Commitment:how long an effective employee stays with a firm
v Competence:can be appraised through performance appraisal techniques
v Congruence:nature and frequency of grievances, disagreement, conflict
v Cost effectiveness: measured through human resource accounting
techniques
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Major roles played by HRM
v Administrative expert
v Operational role
v Employee champion
v Strategic partner
v Change agent
Cont
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Human Resource Management: Thestrategic aspect
Competitive advantage through people
Employer Branding.
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HRM challenges today:
vComposition & size of workforceBreaking down of glass ceiling
Workforce diversity
Downsizing & Rightsizing
v Employee expectationsLoyalty & commitment
Recognition and appreciation
v Changes in technology
v Life style changes
v Environmental challenges
Cont