Introduction to Human Resource

Management

Marymol Joseph
Introduction to HRM
What is HRM?
• Organization’s methods and procedures for
managing people to enhance skills and
motivation
• Activities to enhance the organization’s
ability to attract, select, retain and
motivate people

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Human Resource Management
• It is a management function
concerned with hiring , motivating
and maintaining people in an
organization.

• It focuses on people in organization

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 HRM Policies

Human Resources policies are systems of

codified decisions, established by an
organization ,to support
• administrative personnel functions ,
• performance management ,
• employee relations and
• resource planning.

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 • The establishment of policies can help an
organization demonstrate that it meets
requirements for diversity ,ethics and training.
In order to fire a person it may be necessary to
show cause compliant with employment contracts and
collective bargaining agreements ;
• The establishment of HR policies to document
steps in procedures ,including disciplinary
procedures is now standard.

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Types of HRM Policies
• Attendance Policy
• Recruitment Policy
• Leave of Absence Policy
• Performance Planning and Evaluation
Performance
• Probationary Period
• Compensation
• Compensatory Leave
• Overtime Leave
• Annual Leave
• Educational Leave ,etc
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 HRM
HRM includes all activities used to attract &retain
employees and to ensure they perform at a high level
in meeting organizational goals
The activities are
1. Recruitment & selection
2. Training and development
3. Labor relations
4. Pay and benefits
5. Performance appraisal and feedback

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Components of HRM System
Components should be consistent with the others ,
organization structure and strategy

Recruitment
& selection

Training
Relational &Developm
Labor ent

Pay & Performance

Rewards Appraisal &
Feedback
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 HRM Components
Recruitment & Selection
• Recruitment: develop a
pool of qualified applicants.

• Selection: determine
relative qualification &
potential for a job

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 HRM Components
Training & Development
• field concerned with bettering the
performance of individuals and
groups in organizational settings
• ongoing process to develop
worker’s abilities and skills

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 HRM Components
Performance appraisal
&feedback:
• provides information about
how to train ,motivate and
reward workers.
-Managers can evaluate and
then give feedback to enhance
worker performance

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 HRM Components
Pay and Benefits:
high performing employees
should be rewarded with
raises ,bonuses
• -Increased pay provides
additional incentive
• -Benefits ,such as health
insurance ,reward
membership in firm

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 HRM Components
Labor relations:
• managers need an effective
relationship with labor
unions that represent
workers
-Unions help establish pay
and working conditions

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Personnel Versus Human
Resource Management
• Sometimes means the same things.

• HRM can mean a particular philosophy

• PM has a limited scope and an inverted

orientation

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Differences b/w HRM and PM
• Human Resource Management
HRM views people as an important source
or act to be used for the benefit of
organization, employees &the society
• Personnel Management
Personnel Management has often been
seen as a bridge between the employer
and the employee.

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Storey’s Definition of HRM
• 'Human capability and commitment'. Storey
argues that this is what differentiates
organisations.

• Strategic importance of HRM. It needs to be

implemented into the organisational
strategy and needs to be
considered at the highest
management level.

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 Versions of HRM
• John Storey (1995), in New Perspectives
on Human resource management, made
a distinction between two versions of
HRM

• HARD HRM
• SOFT HRM

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 HARD HRM
The hard approach emphasises:
• The interests of management
• Adopting a strategic approach that is closely
integrated with business strategy
• Obtaining added value from people by the
process of human resource deployment and
performance management
• The need for a strong corporate culture
expressed in mission and value statements and
reinforced by communications, training and
performance management process.

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 SOFT HRM
The soft model of HRM is based upon human
relations school and is identified by Storey as
involving `treating employees as valued assets, a
source of competitive advantage through their
commitment, adaptability and high quality.
• The need to gain commitment of employees
• The interests of management and employees
should coincide
• Integration and team work

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The long term importance of
HRM
• It needs to be integrated into the
management functions and is seen to have
importance consequences on the ability of
the organisation to achieve its goals.

• The key functions of HRM which are seen to

encourage commitment rather than
compliance

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Guest’s Model of HRM
• The model is prescriptive in the sense that it
is based on the assumption that HRM is
distinctively different from traditional
personnel management 
• Guest has acknowledged that the concept of
commitment is 'messy' and that the
relationship between commitment and high
performance is difficult to establish.

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Guest’s Model of HRM
• Linked to the strategic management of an
organisation.
• Seeks commitment to organisational goals
• Focuses on the individual needs rather than
the collective workforce.
• Enables organisations to devolve power and
become more flexible
• Emphasises people as an asset to be
positively utilised by the organisation.

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David Guest's (1989, 1997) model of HRM has
6 dimensions of analysis:
• HRM strategy
• HRM practices
• HRM outcomes
• Behavior outcomes
• Performance outcomes
• Financial outcome

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External Influences on HRM
• Economic conditions
• Legal requirements and constraints
• Demographics
• Technology

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General Economic Conditions
Economic environment refers to all those
economic forces, which have a bearing on
the HR function.
Growth strategy, industrial production,
agriculture, population, national and per
capita income, money and capital markets,
supplier, customers, and industrial labor are
the components of the economic is
globalization.

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Legal Requirements and
Constraints
• Government now an intermediary in the
relationship between employers and
employees
• Legal requirements and constraints are
usually a reflection of social attitudes and
opinions

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Demographics
• The research aims of this study are to establish the
demographic differences in attitudes towards the
importance and application of four specific functional
areas of HRM.
• Six demographic variables are examined
• gender,
• ethnicity,
• age,
• occupation,
• length of service and
• employment sector.
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Technology
Technology affects the HR function by the following ways

1. With the advent of technology, jobs tend to become

more intellectual or upgraded.
2. The employees who pick up and acquaint themselves
with new technology, the job will be challenging and
rewarding.
3. Technology lays down the requirements for much of the
human interaction in organizations.
4. Jobholders will become highly professionalized and
knowledgeable.

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Internal Forces

Prominent internal forces are :

• unions,
• organizational culture and conflicts, and
• professional bodies

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Unions

All HR activities- recruitment, selection,

training, compensation, IR and separation-
are carried out in consultation with union
leaders.

The role of unions becomes pronounced when

a new wage agreement needs to be signed.

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Organizational culture and
conflict
Organizational culture reflects the past and
shapes the future.
For example, objectives can be achieved in
several acceptable ways. This idea, called
equifinality, means there are usually multiple
paths to objectives. The key to success is
picking the path that best fits the
organization's culture.

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Professional Bodies
Professional Bodies arrange periodic
training programs, seminars and
conferences for the benefit of HR
professional.

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 Objectives of HRM
• Effective utilization of Human Resources
• Organizational structure of Relationship
• Development of Human Resources
• Rewards
• Compatibility of individual goals with those of
an organization
• Maintain high moral

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THANK YOU!