1. Course: MBA- Semester 1
Mrinalini Arora
Faculty-Management
Human Resource Management (HRM)

2. What do the images communicate?
I II
III IV

3. Purpose of HRM
 Develop critical thinking and effective communication that is
significant in HRM.
 Develop professional skills in Interpersonal communication,
Team work, Report writing and Problem-solving.

4. Learning outcomes of HRM course
1. Ability to communicate effectively in an
organization.
2. Demonstrate ethically and socially responsible
behavior at work.
3. Build effective internal and external relationships
using influencing, communication and consultative
skills.

5. Human Resource Management
1. Introduction to HRM
• Introduction & Scope
• History
• HRM Functions -
Managerial and Operati
ve function
• Role of HR executive
2. Manpower
Planning
• Job Analysis & Job
design
• Human Resource
planning
• Job Evaluation

6. Human Resource Management
3.Developing people
• Employee career
planning and growth
• Training and
management
development
• Performance
Appraisal
4. Compensation
Management
• Wage & salary
administration
• Managing wages
• Concept of rewards
& incentives
• Managing benefits
in organization

7. About HRM
5. Recruitment &
Selection
• Concept of recruitment
• Factors affecting
recruitment
• Sources of recruitment
• Recruitment policy
• Selection
• Selection process
6. Emerging trends
in HRM
• Competency mapping
• Business process
outsourcing
• Right sizing of
workforce
• Talent management
• Employee engagement

8. I. Introduction to HRM
•Introduction & Scope of HRM
•History of HRM
•HRM Functions -
Managerial and
Operative function
• Role of HR executive

9. Human Resource Management
 HRM is an important business function of any
organization.
 It includes the management of People in
organizations from a macro perspective
 Managing people in the form of collective relationship
between management and employees.

10. Definition of HRM
Organization viewpoint,
Human Resource Management is the process of
planning, organizing, directing & controlling of
employees in such a way that the organizational
goals are achieved effectively & efficiently.

11. Definition of HRM
Management viewpoint,
Human Resource Management is a strategic
approach to acquisition, motivation, development
and management of organization’s human
resources (also said Talent)
HRM is a People management function,
where you acquire their services, motivate them
towards superior performance, develop their
skills, provided training to develop and manage
their work commitment towards the organization.

12. Definition of HRM
Edwin B. Flippo says,
“Human Resource Management is the planning,
organizing, directing and controlling of the
procurement, development, compensation,
integration, maintenance and separation of human
resources to the end that individual, organizational,
and social objectives are accomplished.”

13. Scope of HRM
HRM covers the entire employee life cycle from
joining to exit (R 2 R) including,
1. Manpower Planning
2. Job Analysis (Job description and Job
specification)
3. Job Design (job rotation and job enrichment)
4. Employee Hiring (Recruitment, Selection)
5. Induction and Placement
6. Training & Development
e.g. Team work is encouraged in Saint Gobain,
Dupont and individual contribution in Punjab
Tractors

14. Scope of HRM
7. Employee compensation
e.g. Infosys prefers low base salary and L&T has
collective bargaining
8. Employee motivation
e.g. Mediacom employees can invite children to
workplace
9. Employee communication
e.g. Dr. Reddy’s has quarterly Communication cascade
10. Performance management
E.g Polaris has behavior based PMS and Bajaj Auto
has result based
11. Employee welfare, safety and health
Practiced in PSU’s like ONGC, BPCL

16. History of HRM
 Peter Drucker – Goal oriented leadership is
fundamental to HRM
 Douglas Mc Gregor – advocated Management By
Objectives (MBO) as a strategy for managing
people.
 Both together paved the way for HRM Philosophy

17. Management of Objectives (MBO)
1. Establishment of goals and objectives
2. Formulation of action plan
3. Reviewing and modifying the human behavior

18. History of HRM
 Behavioral science movement came into
prominence in 1960s.
 Maslow’s hierarchy of Needs

19. History of HRM
 Herzberg’s Theory Job enrichment as a means to
increase organizational effectiveness.
 Organization Development (OD) movement in 60s
and 70s.
Change the attitude, values and behavioral patterns
of individual and teams to promote greater
cooperation among employees.

20. History of HRM

21. Difference between HRM and PM
No Dimension Personnel
Management (PM)
Human Resource
Management (HRM)
1 Employment
contract
As per documented
contract
Aim to go beyond
contract
2 Guide to
management
action
Procedures Business need
3 Key Relations Contract Labor Employees
4 Speed of decision Slow Fast
5 Management role Transactional Transformation
6 Management skill Negotiation Facilitation
7 Labor
Management
Collective
bargaining contracts
Individual contract

22. Difference between HRM and PM
No Dimension Personnel
Management (PM)
Human Resource
Management (HRM)
8 Job categories
and grades
Many Few
9 Job design Division of labour Team work
10 Shared interest Organization
interest is
paramount
Mutuality of interests
11 Evolution Precedes HRM Latest

23. HRD and HR
• HRD is part of HR
• It is the integrated use of training,
organization and career
development efforts to improve
individual, group and organization
effectiveness.
HRD (Human
Resource
Development)
• Human Resources
• Proactive and change oriented
• Approach is to manage the peopleHR (Human
Resources)

24. Role of HR has evolved

25. Principles of HRM
It has four principles
1. HR is the most important asset of the organization
and its effective management is the key to success.
2. The success is more likely to be achieved if the HR
policies and procedures are closely linked with
organization objectives and strategic plans.

26. Principles of HRM
3. The company culture, values, managerial
behavior and organization climate exert an
influence on achievement of excellence.
4. HRM is concerned with integration, getting all the
resources of the organization involved to work
together towards a common purpose.

27. Importance of HRM
HRM is important for all Managers for the following
reasons:-
1. Hire the right person for the right job
2. Motivate the employees to contribute towards
organization goals
3. Aim at low attrition rate
4. Effective training to employees
5. Equitable compensation to all employees
6. Avoid unfair labor practices

28. Functions of HRM
A. STRATEGIC or MANAGERIAL
functions
1. PLANNING
2. ORGANIZING- Manpower
3. DIRECTING- Employee Policies and
procedures
4. COORDINATING
5. CONTROLLING
B. OPERATIVE functions
1. PROCUREMENT
2. TRAINING & DEVELOPMENT
3. COMPENSATION
4. MAINTAINANCE
5. INDUSTRIAL RELATIONS
6. INTEGRATION

29. Managerial Functions of HRM
1. PLANNING
Planning staff levels requires that an assessment of
present and future needs of the organization be
compared with present resources and future
predicted resources.

31. Managerial Functions of HRM
2. ORGANIZING
HRM must design and develop organization
structure to carry out various business operations.
 Grouping of departments based on functions
 Assignment of role(tasks) to different individuals
 Integration of activities of different individuals
 Horizontal and Vertical reporting relationships

32. Reference: Organization Structure Of Airport Authority Of India

33. Managerial Functions of HRM
3. DIRECTING
Directing means getting people involved and asking
them (through motivation or command) to work
effectively towards the goals.
e.g. The HRM directs salary administration, revision
of wages and disciplinary action.

34. Managerial Functions of HRM
4. COORDINATING
Coordinating is mainly integrating activities for the
pursuit of common goals.
e.g. The HRM coordinates the task of developing and
reviewing policies, training programmes, employee
benefits, HR practices, employee safety etc.

35. Managerial Functions of HRM
5. CONTROLLING
Controlling is the act of checking, regulating and
verifying whether everything occurs in conformity with
the plans adopted and principles established.
e.g. The HRM controls audits training programmes,
conducts exit interviews, conducts employee
satisfaction survey, compares the program features
with other organization program, interviews new
employees. Also controlling provides for actual
performance information compared to pre-determined
performance standards.

36. Operative/ Service functions of HRM
Operative functions are concerned with activities
dealing with procuring, developing, compensating
and maintaining efficient human resources.
1. PROCUREMENT
It includes getting the right people for achieving
organization goals. Also includes manpower
requirement, recruitment, selection, induction,
transfers, lay-offs, exits.

37. Operative /Service functions of HRM
2. TRAINING & DEVELOPMENT
 Provide skill training to the employee based on the
performance gaps identified.
 Functions like directing a training program,
arranging for on-the-job training, holding
conferences and seminars.
 Also appraising employee’s performance and
potential

38. Operative /Service functions
3. COMPENSATION
 Concerned with securing adequate and equitable
compensation to all employees for their contribution
towards organization’s objectives.
 Functions like compensation benchmark, wage
structure, job description and job analysis,
performance based pay and profit sharing plans.

39. Operative /Service functions of HRM
4. INTEGRATION FUNCTION
 “Human Relations” is the term that integrates
the human resources to the organization objectives.
 The goal is to create productive and
collaborative working towards organizational
objectives.
 Human relations program increases morale and
productivity.

40. Operative /Service functions of HRM
5. MAINTAINANCE
 Maintaining the physical conditions of the
employees (health and safety)
 Maintaining employee service programmes

41. Operative /Service functions of HRM
6 INDUSTRIAL RELATIONS
To maintain good industrial relations is a legitimate
objective of the organization. It involves complex
relationships:-
a) Contract Labor (Trade Unions and Representatives)
b) Government executives and legislative
representatives

42. A Human Resource system
In a group discuss these Human Resource systems ,
1. Recruitment management
2. Communication
3. Training & development management
4. Performance management
5. Rewards and Recognition management
6. Career management
7. Employee Health and safety
8. Discipline management
9. Culture management

43. Current challenges in HRM
1. Hiring right people for right position, fit for
temperament
E.g., Before hire, to make sure if he is a good
team player and will stick to the task until its
completed.
2. Engaging with the Employee
E.g., If they are hired to know the new hire will
adapt to the organization's culture.
Maintain the morale of the employee high and
keep them happy and stimulated at workplace.

44. Current challenges in HRM
3. Succession Planning, Future to the
Organization
E.g., To have already the people will need to be
going forward to the profit of company’s future.
4. Managing Change
The ability to managing the change in the
organization and how to make people acquainted
with the changes.
E.g. change in company policy and procedures,
their mission, goal and objectives etc.

45. Current challenges in HRM
5. Due to acquisition and mergers taking place it
becomes important for the HR Manager to
develop the work culture.
6. The HR Manager to create a balance between
the work life and personal life by flexi work
hours, paternity leave, work from home and
taking vacations.

46. Current challenges in HRM
7. Restructuring Organization
The trend is changing in the organization
structure. The organization are getting more
flatter and simpler.
HR managers need to use different strategies to
tackle these situations.
8. Diversity at workplace: Companies are going
global due to which the workforce diversity is
increasing. Managing these people with different
religious, cultural, moral background is a
challenging task for the HR Managers.

47. Thank you