Human Resource Management
Dr. B.S.N.RAJU
ASSOCIATE PROFESSOR
DEPARTMENT OF MBA
HUMAN RESOURCE
MANAGEMENT
Definitions
Why HRM is important
Core objectives
HRM goals
Good HRM practices
Definition
HRM is the
Planning,
Organising,
Directing and
Controlling of
Human Resource Management
Procurement
Development
Compensation
Integration
Maintenance and
Separation of
Of Human resources
to the end that
Individual
Organisational and
Social
objectives to be accomplished
HRM
HRM is the process of
Attracting
Holding and
Motivating
people in the organisation
in attainment of goals
The Human Resource Approach
HIGHER GREATER
Employee motivation Quality & quantity
& applied ability of work
GREATER HIGHER
Employee rewards organisational
& recognition productivity & profit
HRM challenges
Extremely high competition
Retaining talents
Deliver value added HR services
Rapid technological advances and impact
Changing legal, political & social realities
Changing values & educational levels
Changing consumer demands
To meet the challenges the
companies need people who are…
More Committed
Highly Motivated
Highly Skilled
Good Potential
Excellent team players
Goals of HRM:
General Specific
Productivity attracting
QWL retaining
Legal compliance motivating
Competitive advantage retraining
‘Good’ Human Resource practices
and ethics
Recognize people’s needs & expectations
Respect the individual and treat them as
human beings
Provide justice in treatment
Free and fair practices
‘Good’ Human Resource Practices
and ethics
Provide good working conditions
Opportunities for career progression
& personal development
Function as a democracy
Observe the legislations & codes of
conduct relating to employment
Hard V’s Soft HRM
Hard Soft
Workers are a resource Workers are key
like any other resource to competitive
advantage and
must be nurtured
& developed
Any Questions ?
THANK YOU
Who is Responsible?
Line managers
HR professionals
Consultants/sub-contractors
employees
Current Issues in HRM
Responding to intensified competition
Managing international operations
Technological innovation
Complying with the law
Managing with/without trade unions
Ethical concerns**
Best practice V’s Best fit
Best Practice V’s Best Fit
Best Practice:
- best way of carrying out HR activities that is
universally applicable
- advanced selection methods, serious
commitment to employee involvement,
substantial investment in T&D etc.
Best Fit:
- all is contingent on the circumstances of each
organisation
Some Ethical Concerns
Dismissing someone for incapability
Failing to dismiss a senior manager
Paying women less than men
Pressure to change hours or location
Paying less when you can pay more
Failing to tell the truth at a tribunal
Failing to make ‘costly’ H&S alterations
HRM Activities
1. Strategy Formulation
2. Human Resource Planning
3. Recruitment & Selection
4. Appraisal & Performance Mgt.
5. Reward Management
6. Training & Development
7. Employee Relations
8. Administration
Organisation
Reward The Resourcing
Strategic
Core Performance
Employee
Relations
Development
The execution of strategy lies in the hands
of individuals and therefore no matter how
good the strategy is, if it fails to take
account of the people element it is
doomed to failure at worst or to partial
success at best.
(Gunnigle et al 1997)
Organisational Strategy &
HR Strategy
Separation
OS HRS
OS Fit
HRS
OS HRS Dialogue
Torrington & Hall 2002
OS HRS Holistic
OS HRS HR Driven
Human Resource Planning Process
EXTERNAL ENVIR. INTERNAL ENVIR.
DEMAND FOR LABOUR SUPPLY OF LABOUR
ESTIMATE OF IMBALANCE
ACTION PLANS
recruitment; training & development;
redundancy, dismissals; redeployment;
employee relations; organisation development
IMPLEMENT & REVIEW
Current + Future Current Supply
Demand for labour of labour
The Recruitment & Selection
Process
Human resource planning
Job analysis
Recruitment
Selection
Induction
Performance Management
1. Clear objectives are essential for effective
performance
2. Communication is good
3. Involvement Commitment
4. Everyone’s work should relate to the
organisation’s work
5. People need feedback
6. Responsibility and autonomy enrich jobs
Establish, communicate Evaluate
& agree objectives performance
Communicate Compare
Decisions & results performance
with objectives
Take corrective action Decide on
Review objectives appropriate
Continue unchanged action
Appraisal Systems
Formalise the review part of the
performance cycle
Usually annual/bi-annual
Form based
Link to pay?
One way V’s two way
The Appraisal Interview
• Tell-and sell
• Tell-and listen
• Joint-problem-solving
Reward Package =
Pay + incentives + benefits
- Pay = basic wage
- Benefits = indirect rewards (eg. Car,
VHI, expenses)
- Incentives = performance beyond
expectations (eg. Bonus, awards, share
options)
Objectives of Reward Package
• Attract employees
• Retain “good” employees
• Motivate
• Contribute to H.R. strategy
Effective Reward System
• Satisfies basic needs
• Flexible
• Internal equity
• External equity
• Trust (management & staff believe in it)
Training & Development
- Assessment of need
- Design & delivery
- Transfer & evaluation
The Evidence For Change
• Growth of A-typical employment
• Flexibility debate
• Technological revolution
• Quality initiatives
• Management-employee communications
Partnership Model
• Employers recognise & facilitate worker & T.U.
involvement in strategic decision making
• Workers/T.U.’s commit to productivity
improvements
• Gains shared
• Productivity improvements business expansion
Cutting Edge of HRM
Key changes:
• Attendance management performance
• Use of management to implement HR strategy
• Emphasis on communication & training as tools
• Belief in potential of people to yield competitive
advantage
HRM @ INTEL
•Quarterly employee lunches
• Employee Resource Centre
• Meetings culture
• Profit sharing
• Flexible working arrangements
• 360° feedback
Vision based on
5 core principles:
1. Total quality
2. Total involvement
3. Management by facts
4. Emphasis on H&S
5. Clear objectives
Strategic responses to
increased competition
1. Widespread rationalisation,
redundancies, contracting-out, de-
layering
2. Mergers, acquisitions, strategic
alliances
3. Enterprise level partnership
Human resources is not fluffy
(Sunday Times Jan 2002)
18 of FTSE 100 have board representation for
HR
Need to focus on ‘best fit’ as well as ‘best
practice’
Need to quantify & communicate contribution
HR is not ‘touchy-feely’ – often left with
controversial decisions that no one else will
deal with
A higher status for the people
person (Financial Times 29/01/02)
HR managers need to understand how their
jobs have changed
Need to be involved in looking for talented
recruits, working on top level succession and
helping to devise the long-term strategy of
the organisation
Dominated by professional rather than
administration staff
Report to the CEO & sit on the board
