Unit I

Introduction to HRM

By Dr. Deepak Kumar

 Introduction to HRM
• Managing Human is HRM.
• To run any organisation 5 things needed-
1. Material
2. Machines
3. Method
4. Money
5. Men
• HRM is men aspect.
• According to B. Flippo- HRM is Planning, Organising, Directing & controlling,
Development & Integration.
 Functions of HR Manager
• Specialised knowledge to manage people.
• Needs to perform special type of role such as Recruitment, Selection, Placement, training, appraisal etc.
• Has to perform multiple roles-
A. Policy Formulation
B. Advisory Role
C. Linking Pin Role (Head of various committees)
D. Representing Role (Top Management)
E. Mediator Role
F. Leadership Role
G. Welfare Role
H. Change Agent
I. Counsellor
J. Strategic Role
 Policies Related to HRM
• Concerned with Human Element
• Integrated Part of Management
• Pervasive Function
• Wide Range of Activities
• Development of Human Resources
• Motivation of Human Resources
• Continuous Function
• Service or Sta Function
• Multi-disciplinary Approach
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 Emerging Challenges of HRM

Business
Mastery
Business Acumen
Customer Orientation
External Relation
Personal
Credibility
Trust
Personal HR
Relationship Change Mastery
HR Mastery Lived Values Interpersonal Skills &
Sta ing Courage In luence
Performance Appraisal Problem Solving Skills
Rewards System Reward System
Communication Innovativeness &
Organisation Design Creativity

Human Resource Function in Transformation (p20, HRM TN Chhabra)

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 Workforce Diversity
• According to Moorhead and Gri in, “Workforce diversity is concerned with the
similarities and di erences in such characteristics as age, gender, ethnic
heritage, physical abilities and disabilities, race and sexual orientation among the
employees of the organisations.
• Managers will be required to shift their approach from treating each group of
workers alike to recognising di erences among them and following such
policies so as to encourage creativity, improve productivity, reduce labour
turnover and avoid any of discrimination.
Dimensions of Work life Diversity

RACE GENDER
PRIMARY
DIMENSIONS
PHYSICAL AND SEXUAL
MENTAL ABILITIES ORIENTATION
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 Welfare
• Welfare means “Faring or Doing Well”.
• Comprehensive term used for many situations of an individual such as Physical,
mental, moral n emotional well-being.
• Relative concept. Varies from time to time, region to region or space to space.
• Labour welfare has two aspects- Negative & Positive.
• Negative side- Labour welfare is concerned with counteracting on trouble
impact of labor n their families especially in capitalistic.
• Positive side- Labour welfare department helps in better opportunities for labor
n their families.
• Welfare helps in minimising various activities such as alcoholism, drugs,
gambling, prostitution. It always tries to bring happy, cheerful n con ident labor.

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 Health
• Health means generally Employee’s Health.
• It is also known as “General state of Well-being.”
• It covers Physical, emotional and mental well being.
• HR department provides a health services and healthy environment.
• Better health of employee helps organisation in following ways-
1. Improvement of productivity.
2. Reduction of Absenteeism and turnover.
3. Reduction of Industrial Accidents.
4. Better industrial Relations.
 Safety
• Safety means absence of accidents.
• It is a primary concern for any type of o ice or organisation.
• HRM needs to look after the prone of accidents n save resource for longer
HR capital.
• An accident-free organisation enjoys various bene its-
1. Cost saving
2. Increased productivity
3. Moral bene it
4. Legal bene it
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 Social Security
• Social Security is the protection given by society against contingencies of modern life such as
Sickness, unemployment, old age, industrial accidents, etc.

• Social Security means to protect the employee and its dependents.

Types of Social Security
1. Social Insurance (A common fund is established where all employee put a periodical contributions
in cash & Kind). PF, Group insurance are examples of it.
2. Social Assistance (It is provided by government to society at large). E.g. Old Age Pension.

• Social Security in India-

• Article 41 speci ies about it.
The Employees’ State Insurance Act, 1948, The Employees’ Provident Fund Act, 1952, The
Maternity Bene it Act, 1961, Group Life Insurance, etc.
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 Empowerment
• Empowerment is any process that provides greater autonomy through the
sharing of relevant information and the provision of control over factors
a ecting job performance.

• The purpose of empowerment is to free the employees from rigorous control

and give them freedom to take responsibility for their own ideas and actions, to
release hidden talents which would otherwise remain inaccessible.

• Empowerment o ers a way of treating people with respect and dignity.

• Empowerment has wider scope than delegation.

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 Advantages of Empowerment
For organisation
• Employees are valued and encouraged to make personal contribution.
• It allows quick decision making and action by the employees.
• It creates a team of loyal and committed employees.
• Organisational culture is likely to be co-operative and purposeful.
• It provides work environment that foster opportunities for employees’s personal
growth and development.
For Employees
• Ensure personal growth.
• Innovative decision making.
• Recognition of potential.
 Downsizing
• Downsizing means reducing the size of the organisation in order to cut costs,
hive o unpro itable operations and improve operational e iciency.
• It involves organisational restructuring which results in decreasing the size of
the organisation leading to a lat organisation structure so as to respond more
readily to place the environmental changes.
• It has been adopted throughout the world to achieve operational economies
and increase e iciency to be able to survive in ever changing and uncertain
environment.
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 Voluntary Retirement Scheme (VRS)
• Downsizing of workforce is generally done through VRS.
• Under this scheme, the organisation and its employees agree to voluntarily retire
on payment of agreed compensation by the employer.
• It is commonly called “GOLDEN HANDSHAKE” due to the bene its for both the
employees and the employers.
• Generally employee gets handsome amount under the VRS package and the
employers save recurring fat wage bills in the long run.
• It applies mutual agreement between employees and employers.
• Many companies used it as option. E.g. SAIL, TISCO, Bajaj Auto, Philips India,
HUL etc.

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 Role of HR Manager in Downsizing
• Communication with Employees.
• Win the support of trade Unions.
• Taking care of Uncertainties.
• Providing training.
• Providing out placement Service.
 Alternatives to Deal With Overstaf ing

• Transfer or Reassignment of
Surplus Employees.
• Freezing of employment.
• O ering VRS.
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 Work Life Balance

• Work life balance implies securing

balance between an individual’s work
and personal life.
• It often occurs most often in dual-
career couple as this leads to
con licts between work and family.
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Methods Used for Work-life Balance
 Employee Code of Conduct
• A code of conduct is a collection or set of principles, rules and policies about how
employees can and can not behave during working hours within organisation
premises.
• It sets integral values for all employees and works an external statement for
corporate values and commitment.
Five Codes of Conduct
• Integrity
• Objectivity
• Professional competence and due care
• Con identiality &
• Professional Behaviour
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 Human Resource Information System (HRIS)
• HRIS is method by which an organisation collects, analyses and reports
information about people and jobs.
• Helps in Information needs of macro and micro levels.
• Its a database. It o ers informations about central and accessible location.
Objectives
1. O ers an adequate, comprehensive & updated information.
2. Supply information at reasonable cost.
3. O er data security and Personal privacy.
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 e-HRM
• When HR manager uses internet and related technologies to support their
activities, the process becomes e-HRM.
• Complete integration of all HR systems and processes.

HRM Practices Implications of e-HRM

Employees can work together virtually
Analysis & design of Work
without any boundaries.
Post job opening online. Candidates can
Recruiting
apply to jobs online.
Online simulations including tests, videos
Selection
can deal with real-life business challenges.
It can be done anytime, anywhere within e-
Training
o ice.
Employees seeks details of salary and bonus.
Compensation & Bene its
They can even enrol in various bene its
online.
Source- Raymond Noe, et al., op.cit., p.52.
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