INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT
•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
TradiTional concepT

Service orienTed
Service orienTed firm
firm

Which are
Which are line
line and
and STaff
STaff funcTionS
funcTionS

BoTh needS
BoTh needS To
To SupporT
SupporT each
each oTher
oTher
 Line staff conflict

Different
Different perception
perception

HR
HR professional
professional to
to bring
bring change
change

Understand market & organization

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

As
As aa specialist
specialist

As
As aa facilitator
facilitator

As
As aa change
change agent
agent

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

Production
Production &
& HR
HR

Marketing
Marketing &
& HR
HR

Management
Management Techniques
Techniques &
& HR
HR

Organization
Organization structure
structure &
& HR
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 taken in
• 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
Rightnumber
number

Right
RightSkills
Skills

Right
RightTime
Time

Right
RightCost
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 • To maintain
RightTime
Time

Right
Rightnumber
number • To forecast

Right
RightSkills
Skills • To optimize

Right
RightCost
Cost • To utilize
 HRP at different
planning levels
 Corporate – level planning
 Intermediate – level planning
 Operations planning
 Planning short-term activities
 Organizational
Organizationalplans
plans
and
andobjectives
objectives

Identify
Identifyfuture
futurehuman HUMAN
human HUMANRESOURCE
RESOURCE
resource
resourcerequirements
requirements
PLANNING
PLANNINGMODEL
MODEL
Compare
Comparewith
withthe
the
current
currentHR
HRinventory
inventory

Determine
Determinethe thenumbers,
numbers, Determine
Determinethe
theredundant
redundant
levels
levels&&criticality
criticalityof
ofvacancies
vacancies numbers
numbers

Analyze
Analyzethe
thecost
cost&&time
timeinvolved
involved Analyze
Analyzethe
thecost
cost&&time
time
in
inmanaging
managingthethedemand
demand required
requiredfor
formanaging
managingsurplus
surplus

Choose
Choosethe
theresources
resources&&
methods
methodsof
ofrecruitment
recruitment
Redeploy
Redeploy Retrench
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
Managing future
future demand
demand

Managing
Managing Future
Future Surplus
Surplus
Dealing With Surplus
Manpower
Retrenchment
Retrenchment

outplacement
outplacement

layoffs
layoffs

Leave
Leaveof
ofabsence
absencewithout
withoutpay
pay

Loaning
Loaning
 Work
WorkSharing
Sharing

Reduced
Reducedwork
workhours
hours

Early/voluntary
Early/voluntaryretirement
retirement

attrition
attrition
Growing importance
of HRP
Thank you