HUMAN RESOURCE MANAGEMENT

Objectives
This presentation enables the participants to:
 Acquire broader knowledge and understanding of human capital/human
resources;
 Identify various functions of a HR Department
 Acquire skills necessary for attracting, retaining and motivating human
resources Key Activities of Human Resource management
CASE: You are the Human Resource Manager of a large company. Feedback suggests many of
the workers are: unhappy and are looking for new jobs. Recent figures show productivity has
fallen. You know that the Managing Director has said there will be no wage increases this year.
What improvements could you suggest at the next management meeting which would improve
motivation and productivity?
What is human resource management?
 Human resources management is a specialty within the broader field of management that
focuses on managing employees.
 HRM is proactive, looking at people in economic terms as assets and liabilities to be
actively managed
 HRM is the process of acquisition, development, motivation and maintenance of labor at
optimum levels most efficiently and effectively
 HRM is strategic, tying people management to business objectives
 HRM is holistic : its concern is with the overall people requirements of an organization
 HRM ensures that an organization’s people are considered as well as its financial and
technological resources

The purpose of human resource management

 Create meaningful jobs that link to the organization’s mission
 Maintain the right mix of people with the knowledge, skills and abilities to accomplish
the work of the organization.
 Provide a structure that helps employees to be effective at their work
 Provide fair and consistent treatment of employees
 Provide staff with on-going feedback about their performance
 6. Nurture an organizational culture that supports and motivates staff
 7. Create a positive work environment
 8. Help retain effective staff members
 9. Help staff and the organization manage change
 HRM aims for a seamless link between business policy and recruitment, performance
assessment, reward management, development and exit.
 It encourages employee attitudes and behavior which are consistent with business goals
 It emphasizes the role of line managers in overseeing their own staff
Typical human resource Management Activities
• Human Resource Planning
• Human Resource Policies
• Salary and Benefit Administration
• Human Rights and Labour Laws
• Recruitment, Selection and Orientation
• Performance Management
• Training and Staff Development
• Communications and Counselling
• The operative or service functions of human resource management are the tasks which
are entrusted to the personnel department.
1. These functions are concerned with specific activities of Procuring,
2. Developing,
3. Compensating and
4. Maintaining an efficient work force.
5. Termination

1. Procurement/Staffing -It is about “hiring the right people with the right skills at the right
time” and more important is that the process must comply with Human Rights Legislation.
The activities involved in the process of staffing include
• Job Analysis: It is the process of studying in detail the operations and responsibilities
involved in a job so as to identify the nature and level of human resources required to
 perform the job effectively. Job descriptions and job specifications are prepared with the
help of information provided by job analysis.
Job description
 It is a statement that gives the purpose, scope, responsibilities and tasks, which make up a
stated job. Job descriptions are used on the basis of most other human resource
management practices as selection, training and performance management.

• Human Resource Planning: It is the process of estimating the present and future
manpower requirements of the organization, preparing inventory of present manpower
and formulating action programmes to bridge the gaps in manpower.
• Recruitment: It is the process of searching for required personnel and stimulating them to
apply for jobs in the organization. A proper balance should be maintained between the
internal and external sources of recruitment.
Selection: It implies judging the suitability of different candidates for jobs in the organization
and choosing the most appropriate people
 • Placement: It means assigning suitable jobs to the selected candidates so as to match
employee qualifications with job requirements.
• Induction or Orientation: It involves familiarizing the new employees with the company,
the work environment and the existing employees so that the new people feel at home
and can start work confidently.
2. Development-Human resource development is the process of improving the knowledge,
skills, aptitudes and values of employees so that they can perform the present and future jobs
more effectively. This function comprises the following activities
• Performance and Potential Appraisal: It implies systematic evaluation of employees with
respect to their performance on the job and their potential for development.
• Training: It is the process by which employees learn knowledge, skills and attitudes to
further organizational and personal goals.
• Executive Development: It is the process of developing managerial talent through
appropriate programmes.
• Career Planning and Development: It involves planning the career of employees and
implementing career plans so as to fulfill the career aspirations of people. It involves
mobility of personnel through promotions and transfers
3. Compensation -It refers to providing equitable and fair remuneration to employees for
their contribution to the attainment of organizational objectives. It consists of the following
activities
• Job Evaluation: It’s the process of determining the relative worth of a job
• Wage and Salary Administration: It implies developing and operating a suitable age and
salary programme. Surveys are conducted to determine wage and salary structure for
various jobs in the organization.
• Bonus:
4. Integration- It is the process of reconciling the goals of the organization with those of its
members. Integration involves motivating employees through various financial and non-
financial incentives, providing job satisfaction, handling employee grievances through formal
grievance procedures, collective bargaining, workers’ participation in management, conflict
1esoIutjon, developing sound human relations, employee counselling, improving quality of
work life, etc.
5. Maintenance-It is concerned with protecting and promoting the physical and mental health of
employees. Types of fringe benefits such as housing, medical aid, educational facilities,
conveyance facilities, etc. are provided to employees. Social security measures like provident
fund, pension, gratuity, maternity benefits, injury/disablement allowance, group insurance, etc.
are also arranged. Health, safety and welfare measures are designed to preserve the human
resources
 6. Separation-Consist of exit of employees in an organization
 Involuntary/voluntary
 Terminating employees
 Downsizing
 Retirement
 Employee turnover
 Example death ,dismissal,retrenchment,retirement
o Termination-Termination is often not well managed. Minimize problems by not making
firing the first option & firing should be for “just cause” like: termination at will;
wrongful dismissal. deal with employee morale among “survivors” after a firing
o Downsizing-The planned elimination of jobs. Should be used only as a last resort. Does
not always lead to better company performance. Offering outplacement services can help
employees make adjustments
o Retirement-Early retirement incentive programs
Offer financial benefits to encourage employees to retire
Are difficult to predict which or how many employees will use the program
o Employee turnover-May cause the company to lose valuable employees
• Loss of employees who voluntarily choose to leave the company
• Functional turnover-the loss of poor-performing employees
• Dysfunctional turnover-the loss of high-performing employees
Responsibility of human resource management
• The responsibility for human resource management activities rest with each MANAGER.
• If a MANAGER does not accept this responsibility then HR activities will only partially
get done.
• HR department provides strategies, systems, tools and support to Managers to ensure
effective staff management!
• Authority: The right to make decisions, direct other’s work, and give orders.
• Line manager: A manager who is authorized to direct the work of subordinates and
responsible for accomplishing the organization’s goals.
• Staff manager: A manager who assists and advises line managers. HR managers are
generally staff managers.

Qualities of a human resource manager

 A lively intelligence-The personal function demands a marked degree of analytical
ability and great resourcefulness. Good judgment, intellectual honesty, alertness and keen
perception are also ranked high among the desirable mental traits.
  A high degree of freedom from bias-To be truly effective, personnel management
requires of its practitioners an impartial, objective attitude toward management, toward
the workers & toward the society. The personnel managers’ plans, his decisions, his
counsel – all must be dictated by the total requirements of the situations. This implies
sincerity, fearlessness, and above all honesty.
 A compelling Manner-The ability to inspire confidence, to encourage friendliness and to
elicit cooperation and enthusiasm is invaluable to the pioneering effort that will be
required for him.
 Understanding the People-Such understanding includes appreciation of human wants
and aspirations, of individual differences in aptitudes and abilities. It manifests itself in
an increasing effort to provide others with the opportunities, the encouragement and the
motivation of their development.
 A good Executive-He must be organization minded and know how to delegate
assignments. Since personnel departments themselves are often complex and need a
strong executive at the top, his management ability must compare favorably with that of
the other top executives in the company.
 A good salesman-Not the over aggressive type, but the kind who can sell sound
management ideas to employees and interpret labor’s ideas to the employer. Here a good
sense of values is all-important.
 A good Negotiator He should be able to conduct meetings between management and
labor without letting the arguments come to a boil, able to maintain his own equilibrium
and get a good night's sleep even after spending an entire day at the conference table with
the most arrogant of union leaders.
 He must be a Good Technician Able to analyze details concerning labor laws,
interpretations and executive orders. Incidentally, he must also have the faculty of
adapting himself gracefully to changed conditions.
 He must have the quality which President Roosevelt once described as a “Passion for
anonymity”. This means that he will not look for opportunities to claim credit, that he
will enjoy engineering a deal for which someone else gets a praise, and that he will
consider the line supervisors the real personnel managers of the company and constantly
try to build them up as such.
He must be fully conversant with existing labor laws and regulations. He must also know the
language of the people