Human Resources

Management
 What are we going to cover
 Meaning
 Characteristics
 Importance
 Personnel Mgt. & HRM
 Changing Environment of HR Management
 Role, Duties & Responsibilities of HR Manager
 New Proficiencies required
 The HR Scorecard
 Structure of HR Dept.
 What is HRM

Branch of management concerned with

maintenance of human relationships within an
organisation, so as to achieve the objectives of
the organisation by maximum individual
contribution coupled with individual well-being.
 What is HRM

It is concerned with people at work & their

relationships within an organisation.

Aim is to bring them together to make an effective

organisation; also having regard for their well
being to effectively contribute towards the
organisation’s success.

HRM is concerned with attracting, holding &

motivating people.
 Characteristics
 Concerned with managing people at work

 Concerned with employees both as individuals &

as a group

 Inherent in all organisations: Industry, Govt.,

NGO, Military etc.

 Is of a continuous nature
 Characteristics
 Concerned with helping employees to develop
their own potential for their satisfaction.

This takes into consideration:

 Capacities: Inherent or acquired
 Interests: Desires, ambitions, tendencies, ill-defined
cravings
 Opportunities: for advancement & opportunities to
use his capacities
 Personality: Sum total of experiences, environment.
 Characteristics
 Attempts to get co-operation of all employees to
attain the desired goals of the organisation.

 Integrative aspect: Must be consistently thought

out, applied to all levels, all mgt. functions, all
corporate policies, procedures & systems.
 Importance
 Professional Significance:

• Providing healthy working environment

• Maintaining healthy relationships within groups
• Improving working skills
• Providing maximum opportunities for personal
development
 Importance
 Individual Significance:

• Creating right attitude through motivation

• Effective utilisation of available resources
• Securing co-operation of employees to achieve
organisational goals
 Personnel Mgt. & HR Mgt.
 Personnel management started as a narrow
approach in organisations.

 First took over Hiring & Firing from supervisors,

ran payroll depts., administered benefit plans.

 Technology advances instigated involvement in

areas like employee selection, training &
promotion.
 Personnel Mgt. & HR Mgt.
 Later areas like Industrial Relations were added.

 Today globalization & other trends have

broadened the scope & Human Resource
Management has gained tremendous importance.
 The Name of the game..
Personnel Mgt., Staff Mgt., Personnel
Administration,
Labour Relations, Labour Management,
Employee relations, Industrial relations,
Manpower Management,
Human Relations,

Human Resource Management

 Changing Environment of HR
Management
 Globalization:
Tendency of firms to extend their sales, ownership
& / or manufacturing to new markets abroad.
More globalization - more competition - pressure
to be world-class, lower costs, make employees
more productive & do things better & less
expensively.

Challenge to HR depts. - cut global communication

costs, formulate policies for global employees.
 Changing Environment of HR
Management
 Technological Advances:
Internet

Eg. Carrier Corporation – world’s leading air-

conditioner manufacturer – time required to
enter & confirm an order by their channel
partners has gone down from six days to six
minutes.
 Changing Environment of HR
Management
 Exporting jobs:
Exporting jobs offshore / abroad by US/UK
companies – to cut down on costs
Companies find it easier to set up call centres.
 Changing Environment of HR
Management
 Nature of work
Technology – jobs - knowledge intensive in all
kinds of industries. 2/3rd of the US workforce is
engaged in producing & delivering services not
products.

Productivity has improved greatly, because of

technology. JIT manufacturing techniques helps
scheduling to be precise about consumer
demands.

Shift to non-traditional workers – i.e. part-time

options, alternative work arrangements.
 Changing Environment of HR
Management
Workforce demographics
More women in the job market; The ones to retire
are also on high demand.

Eg. Aerospace Corp. lets employees continue to

work part-time rather than retire.
Oracle Corporation retains old recruits to be
information technology workers.
Ford offers elder care services to employees, to
help current employees better cope with the
demands of supporting elderly family members.
 Changing Environment of HR
Management
So the challenge for HR is to develop systems to
select, train & motivate employees with such
diverse requirements, backgrounds & get them
to work like committed partners.
 Role of HR Manager
A variety of roles are played, but the theme is set
by the top management.

• Frequent spokesperson as he deals closely with

key organisational members & activities
• Counselor
• Mediator
• Problem-solver
• Change agent
• Initiator of various O.D. programmes
 Role of HR Manager
• Safeguards interests of both the management &
employees
• Maintains an adequate organisational structure
• Maintains desirable working relationships among
all members of the organisation
• Maintains high morale in the organisation
• Secures integration of individuals & groups to the
strategy & goal of the organisation

All managers are in a sense HR Managers.

 Role of HR Manager

# Advisory # Research # Grievance

in problems handling
# Manpower # Managing # Disciplinary actions
planning services # Collective
# Training & # Maintenance bargaining
development of records
# Performance # Time keeping
management # Salary
# Compensation administration
management
# Group Dynamics
 Role of HR Manager
Integration of interests of employees & management

Employees’ interests Management’s interests

# Recognition as individual # Low cost per employee

# Opportunity for development # Max. productivity per
employee
# Economic security # Availability & Stability of
employees
# Interest in work # Loyalty of employees
# Healthy working conditions # Co-operation of
employees
# Acceptable compensation # High organisation morale
# Fair & efficient leadership # Intelligent initiatives by
employees
 Duties & Responsibilities of
HR Manager
 Organisational Planning
 Manpower Planning, Recruitment & Selection
 Training & Development
 Performance Management
 Compensation Management
 Employee morale & motivation
 Grievance handling
 Maintenance of healthy labour relations
 Record keeping – Employee database
 Managing services – canteen, transport, crèche,
health services, employee welfare etc.
 Functions
Managerial :

 Planning: Resource planning

 Organising: Development of the organisation
structure as per plans
 Directing: Motivation of employees to achieve
the pre-determined goals
 Coordinating: Blending efforts to ensure
successful attainment of objectives.
 Controlling: Checking, regulating & verifying
whether everything is in accordance with the
plan.
 Functions
Operative:

 Procurement: Obtaining through the right kind

of resources
 Development: Improving skills through training
for optimising job performance
 Compensation: Ensuring adequate & equitable
remuneration
 Integration: Reconciliation of individual,
organisational & societal interests
 Maintenance: Sustaining & improving the
conditions that have been established
 Functions
HR Managers perform:
1. Line function: in their own department &
2. Staff function for the other departments.

Line function: Authorized to direct the work of sub-

ordinates & are directly in charge of
accomplishing the organization’s basic goals.

Staff function: Authorized to assist & advise the

line managers.
 Functions
HR managers are staff managers but all line
managers have HRM responsibilities.

Today scenario changed: HR managers get

intimately involved with the business as HR is
closely associated with the recruitment,
selection, training & hence performance of
employees.
 Functions
Eg. Dell – low cost strategy
To support this strategy: HR strategic plan: Most
HR services are on-line. Hence no. of HR
experts required is low.

HR must address these challenges:

1. Need to support corporate productivity &
performance improvement efforts.
2. Employees play an expanded role in
employer’s performance improvement efforts.
 Functions
To meet these challenges, HR must concentrate on
boosting competitiveness, managing employee
performance to build high performing
organization.

HR has a more central role in managing

performance, so it needs to be more involved
with the designing & not just executing the
company’s strategic plan.
 New Proficiencies required
Today’s HR manager has to play a challenging role
& requires the following proficiencies:

 HR Proficiencies:
Traditional proficiency without which no HR role
can be played. Knowledge & skills in all the HR
areas is a must.
 New Proficiencies required
 Business Proficiencies:

Today’s HR Manager must be able to speak the

‘business language’, must be able to participate in
management team discussions in which policy
decisions regarding running of the business are
taken.

Hence HR activities must be measured & explained.

 New Proficiencies required
 Leadership Proficiencies:

HR managers must have the ability to work with &

lead management groups & drive the changes
required.
 New Proficiencies required
 Learning Proficiencies:

In the competitive business world today, HR

manager needs to learn & adapt to new
technologies that affect the profession & the
business as a whole.
 The HR Scorecard
Like most other functions in the organisation,
today HR activities are also measured, rather are
required to be measured.

Management judges the HR function based on

whether they create value for the company.

Value creation means contributing in a measurable

way to achieve the company’s strategic goals.
 The HR Scorecard
Managers use HR scorecard which measures the
HR function’s effectiveness & efficiency in
producing employee behaviours needed to
achieve the organisational objectives.
 The HR Scorecard
The HR Scorecard consists of ‘metrics’ for
measuring the HR activities & results involved.

Following are some examples of HR performance

measures:
 Employee turnover
 Employee morale survey
 Employee productivity
 Level of organizational learning
 The HR Scorecard
 Employee attitude survey results
 Customer complaints / praise
 Percentage of employees making suggestions
 Extent to which information is communicated
effectively to employees
 Percentage of employees regularly assessed via
a performance appraisal system
 Percentage of difference in incentive pay
between low-performing & high-performing
employees
Structure of HR Department
of a small company

Manager HR

HR coordinator

Senior Officer HR

HR officer
 Structure of HR Department of a
large company

V.P. - HR

Assistant

Employee Health Wage/Salary Recruitment & Training & Employee Benefit Labour
Services Mgr. Administration Mgr. Placement Mgr. Development Mgr. Relations Mgr. Services Mgr. Relations Mgr.

Appraisal & Mgt. search Benefit

Workers’ Employee
Performance Employment Orientation Payroll
Compensation Counseling
Mgt. Agency processing

Employee
Health & Safety Employee Employee
Training Recognition
Programmes Retention benefits
programmes

Personnel records/ Employee

Management Benefits
Safety HRIS / Payroll Special
Development HRIS
processing events
 To sum up…..
Today’s HR has more challenges to face
than ever before.

It is a corporate function with a great

potential to perform in business. It needs
to be driven & maneuvered carefully…

for which today’s HR managers must be

prepared in terms of skills & attitude.