Subject : Human Resource Management

Course code: 22MBADSE203

Semester - II
 MODULE - 1

INTRODUCTION TO HRM
 Contents

• Module-1–Introduction to HRM

• Introduction to Human Resource Management, Evolution of HRM (including the

Gig economy), Importance, HRM functions, Forces changing HRM, The evolving
role of HR in business, The HR manager’s evolving competencies, HR Efficiency
Metrics (Time to Fill/Career path ratio/HR Headcount Ratio)

• Human Resource Planning - Meaning, Process, HRP Models*, Human Resource

Forecasting methods (Calculations on Ratio Analysis), Challenges and relationship
with other Human resource functions, Job analysis, Job Description, Job
evaluation.
 Course Objective

Describe the foundational concepts of human resource

management functions.
 Relevant Information
LinkedIn Learning –
1. Human Resource Foundations
[Link]
foundations/the-fundamentals-of-managing-
people?autoplay=true&u=92695330

2. HR Guidelines
[Link]
know-2022/get-ready-to-transform-your-
organization?autoplay=true&u=92695330

3. Creating a compelling Job Description

[Link]
description/welcome?autoplay=true&u=92695330
 Relevant Information
• Case Study 1 - Building L.L. Bean- Page 15, HRM By Gary Dessler-
15th Ed.
[Link]
[Link]
• Case Study 2: The Zappos Way- Page 75, HRM By Gary Dessler- 15th
Ed.
• Case study 3 : HRP at Sun and Hill Spa
[Link]
lanning_and_Productivity

[Link]
[Link]
[Link]
Interview Questions
What is the role of “HR” in an organization?
What Do Human Resources Professionals Do?
What Do Human Resources Professionals Do?

With all the possibilities in human resources, what do HR

professionals do on a day-to-day basis? As stated above, they take
on a “variety” of roles and tasks that affect organizational
outcomes by managing the most valuable business asset: people.

Human resources management oversees and executes on the

recruiting, hiring, training, compensation and benefits. Depending
on the size of an organization, dedicated compensation and
benefits specialists or managers may develop and manage the
benefits packages and payment structures of the entire
organization.
 Introductory Case
Improving Performance : HR as a Profit Center
Boosting Customer Service

A bank installed special software that made it easier for its customer service
representatives to handle customers’ inquiries. However, the bank did not otherwise
change the service reps’ jobs in any way. Here, the new software system did help the
service reps handle more calls. But otherwise, this bank saw no big performance gains.
A second bank installed the same software. But, seeking to capitalize on how the new
software freed up customer reps’ time, this bank also had its human resource team
upgrade the customer service representatives’ jobs. This bank taught them how to sell
more of the bank’s services, gave them more authority to make decisions, and raised their
wages. Here, the new computer system dramatically improved product sales and
profitability, thanks to the newly trained and empowered customer service reps.
Value-added human resource practices like these improve employee performance and
company profitability.
Discuss three more specific examples of what you believe this second bank’s HR
department could have done to improve the reps’ performance.
1–10

Human Resource Management at Work

• What Is Human Resource Management

(HRM)?
– The policies and practices involved in carrying out
the “people” or human resource aspects of a
management position, including recruiting,
screening, training, rewarding, and appraising.
 HRM: in broad sense…

• Human= A living object that works not only by brain

but also by heart

• Resource= The wealth of any person or organization

• Management= Optimal utilization of available
resources
 HR: in rational term…

Leon C. Meggiinson: HR refers to

– total knowledge, skills, creative abilities, talents
and aptitudes of an organization's workforce
as well as

– values, attitudes and beliefs of individuals

involved
 Definition and concept of HRM

Byars and Rue: “… the activities to provide for and

coordinate HR in organization…”.

Ivancevich and Gluek: “…is the function …that

facilitates the most effective use of people to
achieve organizational and individual goals”.

So HRM (functions) are, utilizing service of people,

developing their skills, motivation for
performance enhancement, ensuring their
commitment to organization (firm)
 History of HRM
• Vast Difference: Between modern HRM and older ones

• Radical changes in definition and conceptualization after

21st Century

• In last 10 decades itself HRM varied in terms of 3

approaches viz.,
1. Scientific Management Approaches
2. Human Relation Approach
3. Human Resource Approach
 1. Scientific Management Approach
• Early 1900, People (HR) were constantly supervised and forced to
meet targets – otherwise fired

• Scientific Approach-

1. How to design and carry out work efficiently

2. Fredrick W. Taylor (1881, Time-motion Studies): Each job has

specific job motions, tools and time to accomplish

3. Fair performance standards for each job

4. Belief that workers are motivated only by incentives

(money)  commission for extra output
 Scientific Management Approach…

5. Results: a. scientific work methods

b. Techniques
c. outputs (one-best-way)
6. Involved high degree of standardization and little mental efforts,
hence no need of judgment or decision
7. Advocates of this approach assumed that workers had no formal
education and no need to utilize knowledge & skills (may be
because the works were not very complex before)
8. Incentives came in form of vacation, hygiene, job training, lunch
room, housing, loan, recreational programs etc. = Paternalistic
attitude

Criticism: Not very successful in bringing about changes in behavioral

aspects of workers and productivity gains to desired extent hence
less popular in 1920s and 1930s
 2. Human Relation Approach

• After 1930s and 1940s org. changed approach to HRM

• Elton Mayo’s (1927-32) Chicago study in Hawthorne plant

(increasing lighting in workplace) lead to shift from Scientific
Management Approach to Human Relation Approach

• The understanding = The productivity is not only affected by design

and rewards but also certain social and psychological factors

• Feelings, emotions and sentiments are imp. as the workplace

 Human Relation Approach…

Criticism:

• Oversimplified= wrong assumption of ‘Happy worker is a hard

worker’.
• Ignored Individual differences in motivations, needs etc.

• Did not consider specific job structure, standards, rules etc

• Less value to other development factors like trg., career dev.,

planning etc.

• In 1950s and 1960s, the approach became outdated

 3. Human Resource Approach
• After 1970s research on behavioral aspects
• New understanding=
– Org. goals and employee needs are mutual and compatible

– People are resources rather than factors of production= assets to

organization

– Time & resource spent on people = investments for better returns

– Policies must cater to needs of employees and personal dev.

– Need to maintain conducive work env.--> encourage skill dev.

– Employee motivation  Employee Performance  Org. Performance 

Employee rewards
 The Evolution of HRM
What
Next?

[Link]
 Why study HRM?
• One of the most complex and challenging fields of
modern management, and it involves
– Building up an effective workforce
– Handling of workers’ expectations
– Ensuring best performance
– And also look into organizations responsibility towards
society
• Command and control (Traditional)  greater
freedom  empowering employees (Modern)
 Importance of HRM

– Hire the right person for the job

– Low attrition rate
– Ensure people do their best
– Avoid legal action for any discrimination
– Safety laws are not ignored
– Equity towards employee in relation to salary etc.
– Effective training
– Avoid unfair labour practices
Human Resource Management at Work
•
Acquisition

Fairness Training

Human
Resource
Management
Health and Safety (HRM) Appraisal

Labor Relations Compensating

 HRM Process/ Func.
Four functions
1. Acquisition: Planning  staffing
2. Development: 3 dimensions
a. Training
b. Management Dev.
c. Career Dev.
3. Motivation: a. Identifying motivational needs
b. How to (ways) motivate
4. Retaining: a. Providing conducive work env.
b. Nurturing for commitment
HRM Functions
• [Link]
resources

• [Link]
resources
 HRM in the “Gig” Economy
• Why the word “gig” became a stand-in for “engagement” or “one-time
job”?
• The word was indisputably popularized by Black jazz musicians in New
Orleans during the 1920s as they played different venues throughout the
city.
• These were the first gig-workers.
• The gig economy refers to a growing worldwide growth in the number of
gigs, contracts, and casual jobs in place of traditional full-time
employment. Examples of gig workers include freelance writers, online
tutors, digital marketing experts, web developers, cybersecurity experts,
and many others.
• The gig economy fundamentally changes three major dimensions of
nature of work: the work itself, who does the work and where the work
will be done.
• The gig economy isn’t a fad which will soon fade away, but it may change
the way we indulge in Talent Acquisition.
[Link]
1lSDURlxtgLBh3W2JD&index=12
 Gig workers
• According to a 2018 report by the Bureau of Labor
Statistics, 10.8% of total workers, or 16.5 million people,
are considered gig workers (contingent workers or
independent contractors).
• Current trends show that countries like the US, Canada,
France, Japan, Netherlands, and Germany are hiring the
largest number of gig workers.
• As the gig economy continues to grow, organizations will
have a higher reliance on contract workers rather than full
time employees, gig workers will need to market their skills
directly to their consumers, and co- working spaces will
increase in demand.
[Link]
_Economy_Workers_Work_and_Platform_Perspective#pf6

[Link]
content/uploads/2020/05/ORF_IssueBrief_359_GenderGig.pdf
• A Niti Aayog study on “India’s Booming Gig and
Platform Economy” has estimated that in 2020-
21, 77 lakh (7.7 million) workers were engaged in
the gig economy.
• According to the report, the gig workforce is
expected to expand to 2.35 crore (23.5 million)
workers by 2029-30.
• At present, about 47% of the gig work is in
medium-skilled jobs, about 22% in high-skilled,
and about 31% in low-skilled jobs.
 Forces Changing HRM
Speed of
expansion

Changing
Employee
perception of
Organization
HRM

Professional Desire for

bodies consistency

Labor Cultures and

Markets Communication

[Link]
 Activity
• [Link]
reinvented-hr

• Read the learnings from the article, note

bullet points regarding what they did right,
and discuss in next class.
 The Trends shaping HRM
• Technological advances
• Improving performance through HRIS
• Globalization and Competition Trends
• Trends in the nature of work
– High- tech jobs
– Service jobs
– Knowledge work and human capital
• Demographic and Workforce Trends
– Demographic trends
– Generation Y and Gen Z
– Retirees
– Non- traditional workers
– Work from anywhere
– Gig workers
 The HR Roles

Understanding Your HR Career Path Options

Two key terms in the human resource management sector are
"generalist" and "specialist.“

HR generalists are less focused and handle a number of areas

and tasks simultaneously.

HR specialists focus their efforts in a single area, such as

recruiting or training.
HR generalists:
Recruitment coordinator
Employee engagement activity
Employee Relations
Performance management
L&D
Compensation & benefits
HR Business Partner

HR specialists
Talent Acquisition
Talent Management
HR & legal
HR Analysts
HR strategy
Compensation & Benefits specialist
According to the Bureau of Labor Statistics, the availability of human resources specialist jobs
are expected to grow by 5% between 2018 and [Link] growth in human resources
specialist opportunities is projected to be highest in organizations within the scientific,
technical and professional services sectors.
• HR Manager
– Human Resource Managers are generalists who act as links
between the directors and the executive level of corporate
management.
• Training and Development Manager
– These HR professionals work involves supporting the
employees through education, training, and career
planning interventions.
• Compensation and Benefits Manager
– This HR managerial position involves the preparation of
compensation and benefits programs for organizations.
• Recruitment and Placement Manager
– The person at the helm of hiring new employees in a
corporate is generally given the Employment, Recruitment,
and Placement Manager title.
• HR Consultant
– HR consultants are skilled in analyzing a company’s human
resources situation and devising policies, employment
structure, benefits packages, performance incentives, and
many other issues. These experts usually work in a
contractual capacity, helping HR managers with specific
tasks.
• Executive Recruiter
– Executive recruiters or headhunters are responsible for
finding senior executives to fill leadership roles in
corporations and large nonprofits.
• Employee Relations Specialist
– These specialists act as a bridge between management
and labor unions in large corporations. They draw up
employment contracts adhering to labor regulations and
demands.
 The Evolving Role of HR in Business
• Managing remote teams
[Link]
remote-by-the-end-of-2021/

[Link]
below-paul-estes/
• Learning and implementing new technologies
[Link]
climate-equity/?sh=554173b6673f
• Separation of critical skills and roles
• Technology adoption
• Use of data analytics in decision making
• Diversity and inclusion initiatives
• Use of AI for managing majority of HR functions
 Key
Areas
where
HR can
play a
role

What can HR
do?
 The HR manager’s Competencies

[Link]
LHVWKzfzy7iPlLu1lSDURlxtgLBh3W2JD&index=10
 HR metrics
• Time to Fill = the no. of days it takes to fill an open position,
from the date a job requisition is posted to the date a new
hire accepts the position.

• Career Path Ratio: A Career path ratio is an HR metric used to

calculate an employee’s rate of growth, based on vertical and
lateral movement within the organization.

• HR Headcount Ratio: It measures how many HR

representatives are there for each employee.
• Time to Fill= Total Days to Fill/ Total Hires
• Example: If you hired for three roles, with 20, 30
and 40 days time to fill respectively, then
calculate your time to fill.
• Average time to fill= (20+30+40)/3 = 30 days.
• According to SHRM’s Talent Acquisition
Benchmarking Report, the average Time to Fill is
36 days
**This calculation should refer to the same time period.
• Career Path Ratio= Total promotions/(Total
Promotions + Total Transfers)
• As a general rule, a healthy career path ratio is
around 0.25 — in other words, about four lateral
moves for every promotion. If your ratio is
significantly lower than 0.2  might mean you’ve
got an upward mobility issue.
• For Example: If your company had 10 promotions
and 15 lateral moves, find the career path ratio.
Your career path ratio would be: 10/(10+15)=
0.4.
• HR Headcount Ratio= (HR Headcount/ Total Headcount) *
100
• For example: Dress Right has a total of 500 employees and
five HR personnel. State whether Dress Right may choose to
keep its HR department the same or change their
strength??
• HR Headcount Ratio= (5/500)*100= 1
• Dress Right compares its ratio of 1.0 to the standard of 1.03
for large businesses. Because the ratios are so similar, Dress
Right may choose to keep its HR department the same.
• The average HR staff to employee ratio is dependent of the
size of the organization.
 Case Study
• Case Study- Building L.L. Bean- Page 15, HRM
By Gary Dessler- 15th Ed.
• [Link]
content/uploads/2020/08/Human-Resource-
[Link]
Human Resource
Planning
 HRP - Meaning
• Estimation of how many qualified people are
required to carry out the assigned activities,

• How many people will be available, and

• What must be done to ensure that personnel supply

equals personnel demand at the appropriate point in
the future
48

Human Resource Planning

• When a company has more than one position, it becomes necessary
to find and maintain an adequate amount of quality employees.

• Human resource planning is one way to do that. HR planning refers

to the process of matching the right employee for a given job,
without staffing too few or too many people.

• This takes a great deal of planning and foresight to successfully

achieve.
 Conditions that necessitate HRP

• Organizational
Productivity/Plans/Strategies
• Expansion/Growth/Diversification
• Economic Development
• Promotions of employees
• Organizational change
 HRP Process

Monitor,
Analyze
Implement Plan Control &
objectives
Feedback

Inventory
Current Human Formulate Plan
Resources

Forecast
Estimate Gaps
Demand
 Factors affecting HRP
Organisationa
Type and l Growth
strategy of Outsourcing
Cycle and
Org Planning

Time
HRP Horizons

Environmental Nature of
Uncertainties Jobs being
Filled
52
Improving Performance:
Four Seasons
Four Seasons builds its strategy around offering superior customer service, and
that requires highly motivated and high-morale employees. Four Seasons uses its
recruitment practices to inspire such motivation and morale. One way Four
Seasons does this is by filling hotel positions around the world with internal
transfers. In one year, for instance, about 280 employees relocated from hotels
from one country to another within the Four Seasons chain.

Employees love it. It gives them a chance to see the world, while building a career
with a great hotel chain. And it’s great for Four Seasons too, because the
resulting high morale and motivation supports Four Seasons’ strategic goal of
superior customer service. In other words, Four Seasons uses recruitment
practices that produce the excellent service the chain needs to achieve its
strategic goals.
 HR Forecasting Methods
• Quantitative Techniques

• Qualitative Techniques

[Link]
guide/workforce-planning-software
• [Link]
_ifI
• [Link]
4EYs

HR Forecasting
 Challenges in HRM

• Now a days HR duties & responsibilities have

become a challenge for HRM to compete with
global competitors & sustain in the diversified
economy.

• [Link]
Xbo&t=4s
 Other Challenges in HRM
• Globalization
• Handling Multicultural / Diverse Workforce
• Employee Selection
• Training & Development
• Balance with Work Life
• Retaining Talents
• Conflict Managing
 Case Study

• Why do you think Zappos’ top managers believe it is

so important for employees to provide a “WOW”
factor in their business?
 Job Analysis
• Job analysis is the process of gathering
information about a job

• A systematic investigation of the tasks, duties and

responsibilities necessary to do a job and the
characteristics of the people who should perform
them.

• [Link]
o&list=RDLVD2_U_vsfr6I&index=2
 Process of Job Analysis

Selection of
Organizational
jobs to be Data Collection
Analysis
analyzed

Job
Job Description
Specification
 Job Description

• Document that clearly states the essential job

requirements and skills required to perform a
specific role

• A more detailed job description –

– cover how success is measured in the role
– it can be used during performance evaluations
 JD for ‘HR Generalist’
• Short introductory paragraph

• In two to three sentences, give candidates

some information about
– your company
– the work environment for the position being
advertised
 Ex.: Education and Experience
Requirements
• Master’s degree in human resources, business administration,
or a related field
• 3-5 years human resources experience
• Experience with HRMS/HRIS systems
• Proficiency with Microsoft Office (Microsoft Excel, Microsoft
Outlook)
• PHR or SPHR certification preferred
• Bilingual English/Spanish a plus
 Special Experience Requirements

• Provide personnel policy and procedure guidance to

employees and management.
• Maintain up-to-date knowledge of federal and state
employment law and compliance requirements.
• Coordinate open enrollments, changes, and training for
employee benefits programs.
• Respond to human resources-related inquiries.
• Assist with payroll processing.
• Create and distribute internal communications regarding
status changes, benefits, or company policies.
• Administer new employee on-boarding and orientation.
 Special Experience Requirements
• Develop and maintain talent management processes.
• Monitor employee morale and company culture.
• Collaborate with the human resources team to develop effective
recruitment strategies.
• Identify future staffing needs.
• Process complaints regarding sexual harassment, discrimination, or
other instances of workplace harassment and assist in any
necessary investigations and disciplinary actions.
• Maintain employee personnel records.
• Conduct exit interviews and recommend corrective action if
necessary.
 Job Specification

• Covers aspects like education, work-experience,

managerial experience etc which can help
accomplish the goals related to the job

• Helps in the recruitment & selection process,

evaluating the performance of employees and in
their appraisal & promotion
 Components of JS
• Educational Qualification

• Experience

• Skills & Knowledge

• Personality traits and characteristics

 JD & JS - Activity
• Job Title]
• Formal position title.
• Reports To: The [job title] will report to [positions title or titles this
position reports to].
• Job Overview: Provide a brief, 4-sentence description of the role,
what success in the position looks like, and how it fits into the
company or organization overall.
• Responsibilities and Duties:
• List the essential duties required to carry out this job.
• List them in order of importance.
• Use complete sentences.
• Start sentences with verbs.
• Use the present tense.
• Use gender-neutral language.
• Qualifications:
• Education level.
• Experience.
• Specific skills.
• Personal characteristics.
• Certifications.
• Licenses.
• Physical abilities.
 Example of JS
Education Must be an engineer and MBA in marketing for a reputed MBA institute

Work experience Must have prior work experience in marketing & sales (preferably telecom
or FMCG)

Skills & Knowledge 1. Must be a good communicator and must be able to lead a team.
2. Prior experience in handling ATL-BTL activities and managing
promotional events.
3. Must be able to handle social media like Facebook, Twitter and help
build online brand
4. Experience in managing PR and media
5. Strong analytical skills and problem solving skills
6. Must understand business, come up with innovative products and
launch them

Personality Traits & 1. Must be presentable and a good orator

Characteristics 2. Should be calm in complex situations and show leadership skills in
managing multiple teams
3. Should be emotionally strong and should give timely deliverables
 Job Evaluation
• Job evaluation is the process of comparing a
job against other jobs within the organization
to determine the appropriate pay rate

• An assessment of the relative worth of various

jobs on the basis of a consistent set of job and
personal factors, such as qualifications and
skills required
• It ensures equity in pay for jobs of similar skill,
effort, responsibility and working conditions
by using a system that consistently and
accurately assesses differences in relative
value among jobs

• Develops a base for merit or pay-for-

performance.
 Glossary
• job analysis • job enlargement
• job description • job rotation
• job specifications • job enrichment
• Gig economy • dejobbing
• organization chart • boundaryless organization
• process chart • reengineering
• diary/log • competencies
• Workplace Planning • competency-based job
• Scheduling analysis
• Resource capacity planning
• performance management
• Agile resource planning
• Resourcing cost • job evaluation