HRM Unit I

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Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the

Six Important functions
The success of recruiters and employment specialists generally is measured by the number of positions they fill and
the time it takes to fill those positions. Recruiters who work in-house -- as opposed to companies that provide
recruiting and staffing services -- play a key role in developing the employer's workforce. They advertise job
postings, source candidates, screen applicants, conduct preliminary interviews and coordinate hiring efforts with
managers responsible for making the final selection of candidates.
Workplace safety is an important factor. Under the Occupational Safety and Health Act of 1970, employers have an
obligation to provide a safe working environment for employees. One of the main functions of HR is to support
workplace safety training and maintain federally mandated logs for workplace injury and fatality reporting. In
addition, HR safety and risk specialists often work closely with HR benefits specialists to manage the company's
workers compensation issues.
Employee Relations:
In a unionized work environment, the employee and labor relations functions of HR may be combined and handled
by one specialist or be entirely separate functions managed by two HR specialists with specific expertise in each
area. Employee relations is the HR discipline concerned with strengthening the employer-employee relationship
through measuring job satisfaction, employee engagement and resolving workplace conflict. Labor relations
functions may include developing management response to union organizing campaigns, negotiating collective
bargaining agreements and rendering interpretations of labor union contract issues.
Compensation and Benefits:
Like employee and labor relations, the compensation and benefits functions of HR often can be handled by one HR
specialist with dual expertise. On the compensation side, the HR functions include setting compensation structures
and evaluating competitive pay practices. A comp and benefits specialist also may negotiate group health coverage
rates with insurers and coordinate activities with the retirement savings fund administrator. Payroll can be a
component of the compensation and benefits section of HR; however, in many cases, employers outsource such
administrative functions as payroll.
Compliance with labor and employment laws is a critical HR function. Noncompliance can result in workplace
complaints based on unfair employment practices, unsafe working conditions and general dissatisfaction with
working conditions that can affect productivity and ultimately, profitability. HR staff must be aware of federal and
state employment laws such as Title VII of the Civil Rights Act, the Fair Labor Standards Act, the National Labor
Relations Act and many other rules and regulations.
Training and Development:
Employers must provide employees with the tools necessary for their success which, in many cases, means giving
new employees extensive orientation training to help them transition into a new organizational culture. Many HR
departments also provide leadership training and professional development. Leadership training may be required of
newly hired and promoted supervisors and managers on topics such as performance management and how to handle
employee relations matters at the department level. Professional development opportunities are for employees
looking for promotional opportunities or employees who want to achieve personal goals such as finishing a college
degree. Programs such as tuition assistance and tuition reimbursement programs often are within the purview of the
HR training and development area.
Eight Human Resource Functions
1. Recruitment and Selection
2. Career Planning
3. Performance Appraisal
4. Delegating and Assigning work
5. Skills Inventory
6. Training and Development
7. Coaching and Counselling
8. Wage and Salary

HR Philosophy:
The HR Management Philosophy is not mainly about Human Resources Function. It is
more about the leadership style of the top management, the current corporate culture
and values. It is about the vision of the leader of the organization. The modern leader
usually requires a modern HR Management approach and builds the environment
suitable for the evolution of the modern HR Management. This is the HR Management
Philosophy behind the scene.
The development of the HR Management Philosophy is a long term process. The
philosophy is usually informal and respects values and opinions of the main
stakeholders. The leader of the organization has a significant influence on the HR
Philosophy. The HR Leader is the next one influencing the philosophy significantly.
The informality of the HR Management Philosophy is important. It differentiates it from
the HR Strategy. The philosophy is the set of values, behavior and practices. The
practices are extremely crucial for the leader. The leader is not interested in written
formal HR policies. The leader is interested in the real decision processes in the
organization. They can be really different from the written rules (as people do not
follow them, they follow the philosophy

The main factors influencing the HR philosophy in the organization are:
 Leadership Style
 Corporate Culture
 Corporate Values
 Market Competition
The leadership style is extremely important. The leaders of the organization are the
role models for managers and employees. The manager always try to act as the leader
does. The behavior is observed and spread across the entire organization. The leader
sets the basic expectations from all employees and managers. They adjust their
behavior to be fully compliant with the leader’s expectations. The HR Management
Philosophy is the same story.
The leader is usually the person, who starts the change or the re-design of the HR
Management Philosophy. The leader observes the behavior in the organization and
requests several changes. The leader usually calls a new HR leader, who is responsible
for the leadership in the change management. The biggest task is to change the
behavior of the leader.
The corporate culture and the corporate values define boundaries for the HR
Management philosophy. The HR Management cannot be in the conflict with the
corporate culture. It has to be a natural part of the culture. In case of the changes in
the HR Philosophy, the HR team has to start influencing the corporate culture. It has to
be adjusted as well. The change of the corporate culture is the joint effort of the
leadership management and Human Resources. It has to be changes by changes of the
living examples. The employees will follow the changes naturally.
The external market and the direct and indirect competitors have the influence on the
HR Management Philosophy. The competitors define the industry standard. The
completely different approach usually builds the organizational weakness. The HR
Philosophy has to be better, it cannot be completely different.
The leader usually compares the performance of the organization with the direct
competitors on the market. The leader identifies weaknesses and advantages. In case
of the need, the leader provokes the change of the corporate culture and the HR
The changing Environment of HRM:
Changes in the environment of human resource management
are very wide and it plays a crucial role in organizations. These
changes include work force diversity, technological changes,
globalization, and changes in the nature of jobs and work (External
Factors). The internal factors are unions, Organizational culture,
conflicts and professional bodies.
The External Forces
(i) Work Force Diversity:
A change in the work force is a continuous process, since the
last two decades we are noticing such changes. For example the
structure of the women working force is widely increasing in
(ii) Technological Trends:
Technological change will continue to shift employment from
some occupations to others while contributing to a rise in
productivity. For example changes are taking place in office
automation, where personal computers, word processing, and
management information systems continue to change the nature of
office work. Also telecommunications already makes it relatively
easy for many to work at home. Robots are also taking man place
especially in the heavy industries.
(iii) Globalization:
Globalization refers to the tendency of firms to extend their
sales or manufacturing to new markets abroad, and to spread the
business everywhere.
Production is becoming globalized; manufacturers around
the world are putting their manufacturing facilities where they feel it
is more advantageous. Thus, the Sony TV is new manufactured
and produced in India as other products, which are originally from
Japan or other countries.
This globalization of markets and manufacturing has vastly
increased international competition. Throughout the world firms
that formerly, competed at the national level, now are competing
(iv) Changes in the nature of jobs and work:
The changing Environment of HRM:
Changes in the environment of human resource management
are very wide and it plays a crucial role in organizations. These
changes include work force diversity, technological changes,
globalization, and changes in the nature of jobs and work (External
Factors). The internal factors are unions, Organizational culture,
conflicts and professional bodies.
The External Forces
(v) Work Force Diversity:
A change in the work force is a continuous process, since the last two decades we are noticing such
changes. For example the structure of the women working force is widely increasing in


Strategic HRM defines the organization’s intentions and plans on how its business goals should be
achieved through people. It is based on three propositions:
first, that human capital is a major source of competitive
29advantage; second, that it is people who implement the strategic plan; and,
third, that a systematic approach should be adopted to defining where the
organization wants to go and how it should get there.
Different Approaches to Strategic Human Resource Management:
The four major approaches to Strategic Human Resource Management identifies
the differing views which are consolidated below:
1) Strategy-focused Approach: Authors Mathis& Jackson and Beer et al view HRM and
SHRM to be identical. They define that HRM by its nature itself is strategic. The
elements of HRM like training, recruitment, selection all of them operate as
derivatives of requirements of strategy within the organization. Strategic planning
suggests HRM planning. This view is not accepted by many of the scholars and view
that HRM is strategic to some extent but not in all aspects.
2) Decision-focused Approach: Tichy et al defines that there are three management
levels namely: strategic (long-term), managerial (medium-term) and operational
(short-term). The author views that the HR functions performed at the strategic
management level are SHRM. The managerial and operational level HR functions do
not come under SHRM and would rather be considered as functional HRM activities.
3) Content-focused Approach: Torrington & Hall identifies that in the model of HRM
process there are always some elements and in every such elements there are some
strategic aspects that are referred to as SHRM. According to this approach the
functional aspects of HRM elements can also be included with the organization’s
strategy leading to the emergence of SHRM.
4) Implementation-focused Approach: Miles & Snow view that organizations do have
some competitive objectives that are achieved through some business strategies. In
order to formulate and implement such strategies appropriate HRM systems are
necessary, and those HR systems are strategic in nature so called SHRM.
HR & Competitive Advantage:
• Non-human resources—such as land, capital and equipment
• Managing human resources is essential in order for a business to thrive and survive.
• People determine the organization’s goals and of course people run the organization to
ensure goals are met/exceeded
• People are the competitive advantage to an organization’s success
• In HR we deal with issues such as pre-selection, selection, and post-selection
• Pre-selection we plan—organizations decide what types of jobs are going to exist and
what are the qualifications.
• During the selection phase, the organization selects the employees:
• Recruiting applicants
• Assessing their qualifications
• Selecting those most qualified
• Post-selection phase the organization develop sound HR practices for effectively
managing their key talent
• The firm provides them with training and development opportunities to have the
necessary skills to perform at satisfactory levels. (Mission, Vision, Strategic Business
• The strategic planning process takes shape here
• Demand and supply forecasting we determine the number and types of employees we
need (i.e. electrical engineers recruitment process)
• Steps:
--Developing performance appraisal rating forms
--Helping to determine pay rates
--Setting performance standards for productivity improvement programs (i.e. assessment
testing for administrative positions)
• Safety & Health Concerns (Chapter 13)
– Legal, social, and political pressures on organizations to ensure the health and
safety of their employees
– Wellness and Employee Assistance Programs
 Describe trends in the labor force composition and how they affect human resource
 Summarize areas in which human resource management can support the goal of
creating a high-performance work system.
 Define employee empowerment and explain its role in the modern organization.
 Identify ways HR professionals can support organizational strategies for quality, growth,
and efficiency.
 Summarize ways in which HRM can support organizations expanding internationally.
 Discuss how technological developments are affecting human resource management.
 Explain how the nature of the employment relationship is changing.
 Discuss how the need for flexibility affects human resource management.
Labour Work Force
Internal work Force:
 An organization’s workers
1. Its employees
2. The people who have contracts to work at the organization

 The internal labor force has been drawn from the external labor market.
External Laour Force:
 Individuals who are actively seeking employment.
 The number and kinds of people in the external labor market determine the kinds of
human resources available to an organization.

Change in the Labor Force:
• An Aging Workforce
• A Diverse Workforce
• Skill Deficiencies of the Workforce
Skill Deficiencies of the Workforce:
– mathematical skills
– verbal skills
– interpersonal skills
– computer skills
• Today, employers are looking for: The gap between skills needed and skills available
has decreased companies ability to compete.
• They sometimes lack the capacity to upgrade technology, reorganize work, and
empower employees.

HRIS[ Human Resourse Information System
• A computer system used to acquire, store, manipulate, analyze, retrieve, and distribute
information related to an organization’s human resources. An HRIS can:
– support strategic decision making
– help the organization avoid lawsuits
– provide data for evaluating programs or policies
– support day-to-day HR decisions
• HR function are divided intothree principal group: HR Front Office HR Back Office HR
Centre Of Excellence
• HR FRONT OFFICE Organization of personnel Department(known as HR front office)
is responsible for striking rapport with internal groups/client. A designated official,
generally, would be meeting the requirements of clients.
• HR BACK OFFICEIt centralize traditional HR agenda such as HR administration,
payroll, welfare amenities, etc. The back office would take care of legal requirements
and regulatory framework. The back office people would be responsible for keeping
personnel files, records and data in an accessible form-updated almost every week.
• HR CENTERS OF EXCELLENCEThis independent department looks after functions
such as recruitments, training &development, compensation and benefits, industrial
relations etc. These centers works in the close coordination with HR front office and
HR back office while trying to get the best out of employees through excellent HR
practices and procedures.
• HR DEPARTMENT IN LINEORGANISATIONLine structure is a type of structure in
which authority flows in direct line from a superior to a subordinate. Each employee
knows who is his superior and who has authority to issue order to whom. Managers
has full authority in their area of operations and are responsible for final results. Chief
Executive HR Manager Recruitment Training Compensation Industrial Welfare Officer
manager manager manager Relations
• HR DEPARTMENT IN FUNCTIONALORGANISATIONIn any functional organization, all
activities of an organization is divided into different functions such as production,
marketing, finance etc. each functional area is headed by a specialist who directs the
activities of that area for the entire organization. Every employee is required to report
to his respective functional head. The functional head has line authority over activities
of his functional area.
Line and staff functions
In a sense, all managers are HR managers as they all get involved in activities like
selecting, training, compensating employees. Yet most firms, now a days, have the
HR department headed by a person with requisite qualifications in behavioural
sciences. How do the duties of this HR manager relate to the line managers’ HR
duties would be an interesting question to answer. Line managers have the final
responsibility for achieving the organisation's goals. They also have the authority
to direct the work of subordinates. Staff managers usually help and advise line
managers in achieving organisational goals. HR managers are staff experts. They
assist line managers in areas like recruiting, selecting, training and compensating.
Managing people, in a broader context, is every manager’s business and successful
organisations generally combine the experience of line managers with the
experience of HR specialists while utilising the talents of employees to their
greatest potential. HR managers have to win the hearts of employees working
alongside line mangers and deliver results in a cost-effective manner. HR
managers as indicated earlier are assuming a greater role in top management
planning and decision making-a trend that indicates the growing realisation
among executives that HRM can make significant contributions to the success of
an organisation.

Examples Of Line And Staff Function

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