INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT

BY NISHA
HARIYANI
•According to Adi Godrej,

“all corporate strengths are

dependent on people.”
 Human Resource Management

• ‘The real sources of competitive leverage are

the culture and capabilities of your organization
that derive from how you manage your people.’
Points to Ponder

• Definition and Concept of HRM

• History of HRM
• Functions of HRM
• HR Policies and Procedures
• Emerging Role of HRM
• Role of HR Executives
• Challenges to HR Professionals
• Strategic HRM
Human Resource Management
• “HRM is the function performed in
organizations that facilitates the most
effective use of people to achieve
organizational and individual goals.”
– Ivancevich and Glueck
 History of HRM - 1

• Scientific Management Approach (mid 1900s) –

– Study of motion and fatigue
– ‘one-best-way’ to accomplish the task
– Piece-rate system
– Welfare programmes
– Failed to bring behavioural changes and increase in
productivity
• Human Relations Approach (1930-40)
– Effect of social and psychological factors
– Relations and respect  High Productivity
History of HRM - 2

• Human Resources Approach (1970s)

– Principles
• Employees are assets
• Policies, programmes and practices - help in work and
personal development
• Conducive environment
Challenges of HRM

• Individuals differ from

one another
• Customization of
stimulation and
motivation
• Demanding personnel
Functions of HRM - 1

Managerial

Planning Organizing Staffing Directing Controlling

Functions of HRM - 2
Operational

Employment HR Development Compensation Mgt Employee Relations

Performance
HR Planning Job Evaluation
Appraisal

Recruitment Training Wage and Salary Admn

Management
Selection Incentives
Development

Career Planning and

Placement Bonus
Development

Induction Fringe Benefits

 Emerging role or HRM
• Value of Human Resource
• Competitive advantage
• Human Resource
Accounting – It is
measurement of the cost
and value of people for an
organization
ROLE OF HR EXECUTIVES

• Service provider

• Executive

• Facilitator

• Consultant

• Auditor
Challenges to HR Professionals

• Worker productivity
• Quality improvement
• The changing attitudes of workforce
• The impact of the government
• Quality of work-life
• Technology and Training
 Organizational
Structure & HRM
 Why structure ???
 What structure signifies?

 No directions
 Leads to confusion
 Chaos

 Why???????????
 MAIN POINTS OF CHAPTER

 Organizational Structure and Human

Resource Management
 Formal and Informal Organizations
 Tall and Flat Organizational Structures
 Responsibility, Authority and Accountability
 Line and Staff Functions
 Human Resource Management and other
Organizational Functions
 Mechanistic Vs organic
organization
 Rigid structure  Flexible structure
 Employees are tied  Employees are not
by rules & tied by rules &
regulations regulations
 High degree of  Decentralized style
centralization of management
 Suitable for  Suitable for
operating in static operating in dynamic
environment environment
 Decision-making is  Decision-making is
done by superiors done by junior level
 Ex:Public sector in employees also
the pre-reforms era  Ex: Marico`s Saffola
 Formal
Informal
President organization organization
Chess group

Vice Vice Vice

President President President

Division Division Division Division Division Division Division Division

Division
Managers Managers Managers Managers Managers Managers Managers Managers
Managers

Department Department Department

Department
Managers Managers Managers
Managers

Department Department Department Department

Managers Managers Managers Managers

Department Informal organization

Managers
Bowling team
 Tall Vs Flat structure
CMD

COO
ED ED ED

GM GM GM

CM PM PM PM PM

CM

Manager
Team Team Team
Lead Lead Lead
Manager

Officer
Team Team Team Team
Member Member Member Member
Officer

TALL Executive
FLAT
STRUCTURE STRUCTURE
Executive
 RESPONSIBILITY, AUTHORITY &
ACCOUNTABILITY
 Responsibility:
It is the obligation of a manager to carry out the
duties assigned to him.

 Authority:
It refers to the right to give orders and
the power to exact obedience from others in
the process of discharging responsibility.

 Accountability:
The employee's answerability on using
the authority in discharging the responsibility
is termed accountability.
 LINE AND STAFF FUNCTIONS

 Departments or  Departments or
employees of a employees of a
firm that perform firm that perform a
core activities support function
 Contributes directly  Contributes
to the business of indirectly to the
the firm business of the
 Ex: Manufacturing firm
and Marketing  Ex: HR and Finance
departments departments
Line & Staff Relationship

TradiTional concepT

Service orienTed firm

Which are line and STaff funcTionS

BoTh needS To SupporT each oTher

 Line staff conflict

Different perception

HR professional to bring change

Understand market & organization

Be empathetic
Build trust and transparency
Win – win approach
The Role of Human Resources
Department

As a specialist

As a facilitator

As a change agent

As a controller
HUMAN RESOURCE MANAGEMENT
AND OTHER ORGANIZATIONAL
FUNCTIONS
Product & HR

Production & HR

Marketing & HR

Management Techniques & HR

Organization structure & HR

 summary
Organizational Structure and Human
Resource Management
Formal and Informal Organizations
Tall and Flat Organizational
Structures
Responsibility, Authority and
Accountability
Line and Staff Functions
Human Resource Management and
other Organizational Functions
Think before others think
 Human
Resource
Planning
 Point to ponder
 Definition of Human Resource
Planning
 Objectives of Human Resource
Planning
 The Process of Human Resource
Planning
 Managing the Forecasted
Demand/Surplus
 Growing Importance of Human
Resource Planning
 Opening case
• HRP??? NO, Thank you
• A reputed south Indian university appointed 218
people on temporary basis and paid them Rs 750/
month later increased to 1575/month.
• University already had surplus of these employees
eating away 22% of budget allocation
• 33% of temporary staff already working for 10
years
– No laid down procedure for recruitment or appointment, go to
vice chancellor and get your name scribbled on it and your are
• They then realised the guilt of violating Equal
Remuneration Act and supressing human rights
• What to do with this 218 temoparay staff...??
• University can dismiss services of 33% as there have
been breaks in their services. Will they take it?????
• While 67% of temporary staff, university can not
terminate them, as there were no breaks
• University decides to regularize their services, with
50 available vacancies
• This would cost the university an exra expenditure of
Rs 30 lakh/year. And 1.2 crore for rest remaining...
Human Resource
planning
Right number

Right Skills

Right Time

Right Cost
 HRP defined
• Process of anticipating
and making provision
for the movement of
people into, within, and
out of an organization
 Objectives of HRP
Right Time • To maintain

Right number • To forecast

Right Skills • To optimize

Right Cost • To utilize

 HRP at different
planning levels
 Corporate – level planning
 Intermediate – level planning
 Operations planning
 Planning short-term activities
 Organizational plans
and objectives

Identify future human HUMAN RESOURCE

resource requirements
PLANNING MODEL

Compare with the

current HR inventory

Determine the numbers, Determine the redundant

levels & criticality of vacancies numbers

Analyze the cost & time involved Analyze the cost & time
in managing the demand required for managing surplus

Choose the resources &

methods of recruitment
Redeploy Retrench
Assessing current human
resources and making
inventory
• Job analysis
• HR inventory – HRIS
• Generate a fairly accurate
picture existing situation
 Forecasting
• Compare future needs with
current availabity
• Analyze companies change
plan
• Forecasting methods used
are Time Series Analysis,
Regression Analysis and
Productivity Ratios
Matching the inventory with
future requirements
• If the current inventory
exceeds the future
requirements
• Natural attrition cannot bring
down resource to match
• What to consider then????
MANAGING THE FORECASTED
DEMAND / SURPLUS

Managing future demand

Managing Future Surplus

Dealing With Surplus
Manpower
Retrenchment

outplacement

layoffs

Leave of absence without pay

Loaning
 Work Sharing

Reduced work hours

Early/voluntary retirement

attrition
Growing importance
of HRP
Thank you