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

HR Planning Performance Appraisal Job Evaluation

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
Organizationa
l 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 yo