INTRODUCTION

GIMR MBA 2018-20

MBA
 Why is MBA important? What are its advantages?
 Origin of MBA

 Most sought after degree in the world, century old

 Economic globalization and increasing significance

PERSONAL GAIN FROM MBA
 MBA helps to remove your stage-fear and hesitation because
some peoples are so introverted in nature
 It enhance your skills ability also. It also helps to improve
your communication skills, attitude and behavior.
 MBA is not just a degree and also it's not all about the
packages or salary.
 With some leadership skills and MBA you can work wonder.
It also helps to learn how to manage the work in difficult
condition or in under-pressure when you're working within
the organization.
 It shows how to give respect and can make better relationship
with the customers. By using these type of qualities and
features, you will never be disappointed with yourself.
INTRODUCTION & CONCEPT
 Booming IT industry – wonderful creation of man –
brought significant shifts in our day to day life
 Getting the people who can make an organization

 Enabling those people to acquire required capabilities to

make a successful organization
 Motivating them to contribute their resources
continuously for running the organization successfully
We need to know an important concept i.e. human
resources. People with required skills to make an
organization are generally referred to as
HUMAN RESOURCES
HUMAN RESOURCE
MANAGEMENT
SEMESTER I
Total 100 marks paper
WHAT IS HUMAN RESOURCE
MANAGEMENT?
 HRM is basically the management of human resources in
an organization.
 It’s a process where people and organizations are
brought together so that the goals of each are met.
 Necessary for an organization to have the right resource
especially their employees to survive and succeed.
OBJECTIVES
 To understand the importance of human resource
management
 To provide essential knowledge of important function of
HRM
 To create strong foundation for further studies in the
field of HRM
 To get acquired about latest trends and practices of HRM

 To prepare students to undertake practical assignments

and projects in the HRM area
SYLLABUS
1. Introduction to human resource management
1. Meaning, uniqueness of HRM
2. Definitions, nature, scope, objective & functions of HRM
3. HRM vs Personal management, HRM vs HRD
4. HRM environment
5. Contributing role of HR management
6. Qualities of HR manager
7. Future role and challenges before HRM
SYLLABUS
2. PROCESS OF PROCUREMENT
i. Human resources planning
ii. Recruitment
iii. Selection

iv. Placement

v. Induction / orientation
SYLLABUS
3. Career & succession planning
i. Career planning
ii. Career development
iii. Succession planning

4. Performance appraisal

5. Training & Development

6. Trends in HRM
CHAPTER 1
1. Introduction to human resource management
1.1 Meaning, uniqueness of HRM
1.2 Definitions, nature, scope, objective & functions of HRM
1.3 HRM vs Personal management, HRM vs HRD
1.4 HRM environment
1.5 Contributing role of HR management
1.6 Qualities of HR manager
1.7 Future role and challenges before HRM
1. INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
 Meaning of Human resource management:

 It means: Employing people, developing their resources, utilizing,

maintaining and compensating their services in tune with the job and
organizational requirements with a view to contribute to the goals of the
organization, individual and society.

 In logical term: Human resource management is the process of hiring

and developing employees so that they become more valuable to the
organization. Human Resource Management includes conducting job
analyses, planning personnel needs, recruiting the right people for the
job, orienting and training, managing wages and salaries, providing
benefits and incentives, evaluating performance, resolving disputes, and
communicating with all employees at all levels.
 
UNIQUENESS OF HUMAN RESOURCES
 HR Dept deals in job interviews, exit interviews and
have interaction during employee lifecycle (hiring and
firing procedure)
 Looks very easy job

 However, we often do not know what the real job

content of HR employees. Human Resources is one of
the most critical business functions that can make the
company better than other competitors. Moreover, it can
make the firm worse than other competitors. It is all just
about HR processes, procedures and employees
employed in the HR department.
UNIQUENESS OF HUMAN RESOURCES
 Every individual is different
 Unlike machinery which comes with instruction manual

 Human don’t have an instructional manual

 People have different working style, point of view,

organizing styles, dealing, paradigms, bringing up,
childhood, language, casts, dressing sense, behaviors
 Uniqueness in HR is bringing together all these people,
creating a safe and friendly working place for them
while maintaining companies standards, goals and
objectives
DEFINITION, NATURE, SCOPE,
OBJECTIVES & FUNCTIONS OF HRM
 HRM is a management function that helps managers
recruit, select, train and develop members for an
organization
 3 definitions on HRM, 5 Core points
CORE USEFUL POINTS
1. Organizations are not mere bricks, mortar or machineries. They
are people and it’s the people who staff and manages the
organization
2. HRM involves the application of management functions and
principles. The functions and principles are applied to
acquisitioning, developing, maintaining and remunerating
employees in organization
3. Decisions relating the employees must be integrated
4. Decisions made must influence the effectiveness of organization.
Effectiveness of an organization must result in betterment of
services to customers in the form of high quality products
5. HRM functions are not only confined to business establishment
but also non business organizations such as education, health,
care, recreation
DEFINITIONS
1. A series of integrated decisions that form the employment
relationship; their quality contributes to the ability of the
organization and the employees to achieve their objects
2. Is concerned with the people dimensions in management.
Since every organization is made up of people, acquiring their
services, developing their skills, motivating them to higher
levels of performance and ensuring that they continue to
maintain their commitment to the organization are essential to
achieving organization objective
3. Management is the planning, organizing, directing and
controlling of the procurement, development, compensation,
integration, maintenance and separation of human resources to
the end that individual, organizational and social objectives are
accomplished
NATURE OF HUMAN RESOURCES
 People in any organization manifest themselves, not only
through individual sections but also through group
interactions. When individuals come to their workplace.
 They come with not only technical skills, knowledge etc.
but also with their personal feelings, perception, desires,
motives, attitudes, values etc
 Employee management does not mean management of
not only technical skills but also other factors of the
Human Resources.
COMPLEX DYNAMISM
 Close observation of employees reveals that they are
complex beings i.e.
 Economic , physiological, psychological, socio – logical,
and ethical beings
 Proportions and intensities of these dimensions (scope)
of the human factor in employment may differ from one
situation to another
 The physical and mental attributes of human resources
are highly pertinent to organizational performance and
productivity
A SOCIAL SYSTEM
 It’s the task of dealing with human relationships,
moulding and developing the human behavior and
attitude towards the job and organizational requirements.
 The HR manager involves himself/herself in
administering a social system.
 In this process the manager has to see that the economic
satisfaction for a reasonable livelihood, the social
satisfaction of working together as members of a group
and individual job satisfaction of a worker are
accomplished.
A CHALLENGING TASK
 HR manager plays a crucial role in understanding the
changing needs of the organization and society
 Handles some challenging tasks in getting the employee,
organizational and social objectives with the available
resources plus the technological developments
increasing educational standards further complicate the
role of personal manager.
 Hence the modern HR manager should equip themselves
with good knowledge of disciplines, viz Economics,
Commerce, Management, Sociology, psychology,
Engineering, Technology and Law
SCOPE OF HRM
 Scope of HRM in the modern days is vast. Earlier scope
of HRM was limited to employment and maintenance of
and payment of wage and salary.
 The scope gradually enlarged to providing welfare
facilities, motivation, performance appraisal, human
resource management, maintenance of human relations,
strategic human resources.

 TBC
 Nature
Prospectof HRM
of HRM
Employe
es Hiring

Industrial HUMAN
Relations RESOURCE
MANAGEMENT

Employees &
Executive
Remuneration
Employee
Maintenan
ce Employee
Motivation
SOCIETAL
OBJECTIVE
 Is the common objective to be
ethically and socially
responsible to the needs and
challenges of the society while
minimizing the negative
impact of such demands upon
the organization
 Society may limit HR
decisions through laws that
enforce reservation in hiring
and laws that address
discrimination, safety or other
such areas of societal concerns
 ●
To recognize role of HRM in bringing about
Organization organizational effectiveness. Assist the organization
in its primary objectives.
al objectives ●
In simple words the department exists to serve the
rest of the organization

Functional To maintain the departments contribution at a level appropriate to

●

the organization’s need, resources are wasted when HRM is more

or less sophisticated to suit the organization’s demand

objective HRM should tailor the level of service to meet the organization it
●

serves.

Personal ●

●
HRM’s personal objective should be to assists employees in achieving
their personal goals, atleast as far these goals enhance the individual’s
contribution to the organization.
Personal objectives of employees must be met if workers are to be

objective maintained, retained and motivated, if not done so employee performance

and satisfaction declines and employee leaves the organization.
FUNCTIONS OF HRM
 In order to realize the objective, HRM must perform
certain functions. These are stated while outlining the
scope of HRM.
 Generally there is correlation between the objective and
function, in other words functions help realize specific
objective
 The organizational objective is sought to be met by
discharging such functions as HR planning, recruitment
and selection, training & development, and performance
appraisal.
 The personal objective is sought to be realized through
such functions as remuneration, assessment and the like.
HRM Objective Supporting Functions

1. Societal Objectives 1. Legal Compliance

2. Benefits
3. Union Management relations
1. HR planning
2. Organization Objectives 2. Employee relations
3. Selection
4. Training & development
5. Appraisal
6. Placement
7. Assessment
1. Appraisal
2. Placement
3. Functional objectives 3. Assessment
1. Training & Development
2. Appraisal
4. Personal objectives 3. Placement
4. Comparison
5. Assessment
OBJECTIVES OF HRM MAY BE AS
FOLLOWS
1. To create and utilize an able and motivated workforce, to
accomplish the basic organization
2. Establish and maintain sound organizational structure
and desirable working relationships among all the
members of the organization
3. Secure the integration of individual and groups within
the organization by co-ordination of the individual and
group goals with those of the organization
4. Create facilities and opportunities for individual or
group development so as to match it with the growth of
the organization
OBJECTIVES OF HRM MAY BE AS FOLLOWS
5. To attain an effective utilization of HR in the
achievement of organizational goals
6. To identify and satisfy individual and group needs by
providing adequate and equitable wages, incentives,
employee benefits and social security measures for
challenging work, prestige, recognition, security, status
etc
HRM objectives at Wipro
• To respect the individual, as people are the greatest assets

• To govern individual & company with the highest standard

of conduct and integrity
• To be close to the customer through employees

• To achieve and maintain leadership in people management

HRM VS. PERSONAL MGMT
HRM differs from PM both in scope and orientation

 HRM views people as an  PM has a limited scope

important source or assets to and an inverted
be used for the benefit of orientation. It viewed
organizations, employees
labor as a tool, the
and society
behavior of which could
 Management aims at the
be manipulated for the
policies that promote
mutuality – mutual goals,
benefit of organization
mutual respect, mutual and replaced when it was
rewards and mutual worn out
responsibility.
DIFFERENCE BETWEEN HRM AND PM
Dimension Personal Management Human Resource
Management
Employment contract Careful delineation of Aim to go beyond
written contract contract
Rules Importance of devising Can do outlook,
(planning) clear rules impatience with rule
Guide to management Procedures Business need
action
Behavior referent Norms/customs and Values/mission
practices
Managerial task in Monitoring Nurturing
relation to labor
Key relations Labor management Customer
Initiatives Slowly Integrated (included)
Speed of decision Slow Fast
Dimension Personal Management Human Resource
Management
Management Role Transactional Transformational
leadership
Communication Indirect Direct
Pay Job evaluation Performance related
Conditions Separately negotiated Harmonization
Labor management Collective-bargaining Individual contracts
contracts
Job categories & grades Many Few
Job design Division of labor Team work
Conflict handling Reach temporary truce Manage climate and
culture
Training & Controlled access to Learning companies
Development courses
Focus of attention for Personal procedures Wide ranging cultural,
interventions structural and personnel
strategies
Dimension Personnel management Human Resource
Management
Respect for employees Labor is treated as a tool People are treated as
which is expendable and assets to be used for tbe
replacement benefit of an
organization, its
employees and the
society as whole
Shared interests Interests of the Mutually of interests
organization are upper
most
Evolution Precedes (go before) Latest in the evolution
HRM of the subject
HRM VS. HRD
 Human Resource Management refers  Human  Resource Development means
to the application of principles of a continuous development function
management to manage the people that intends to improve the
working in the organization. performance of people working in the
 HRM is a function of management. organization.
 HRM is a reactive function as it
 HRD falls under the umbrella of HRM.
attempts to fulfill the demands that  HRD is a proactive function, that
arise meets the changing demands of the
 HRM is a routine process and a human resource in the organization
function of administration. and anticipates it.
 The basic objective of HRM is to
 HRD is an ongoing process.
improve the efficiency of employees.  HRD aims at developing the skill,
 HRM where there are separate roles to knowledge and competency of workers
play, which makes it an independent and the entire organization.
function.  HRD is an organizationally oriented
 Human Resource Management is process; that is a subsystem of a big
concerned with people only. system
 Human Resource Development, that
focus on the development of the entire
organization.
 HRM differs with HRD in a sense that HRM is
associated with management of human resources while
HRD is related to the development of employees. Human
Resource Management is a bigger concept than Human
Resource Development. The former encompasses a
range of organizational activities like planning, staffing,
developing, monitoring, maintaining, managing
relationship and evaluating whereas the latter covers in
itself the development part i.e. training, learning, career
development, talent management, performance appraisal,
employee engagement and empowerment.
HRM MODEL
HRM MODEL
 Hrm model contains all HR activities, when these
activities are discharged effectively, they will result in a
competent and a willing workforce.
 This will help realize in organizational goals.

 Another variable in this model is an environment. It is

stated as HR function does not operate in vacuum, its
influenced by several internal and external forces like
economic, technological, political, legal, organizational
and professional conditions.
HRM ENVIRONMENT
 Environment of HRM includes all those factors which
are bearing (attitude/behavior) on the functioning of HR
department
 These forces can be political, legal, economic,
technological, cultural, unions, organizational culture
and conflict, and professional bodies. Which are
originally divided in External environment and internal
environment. Knowledge about environment helps the
HR manager and his/her team to become proactive.

In this scenario we can treat environment as the surrounding/setting or

situation/upbringing of HR
UTILITY OF ANALYZING THE
ENVIRONMENT
 To become proactive and not remain reactive to the
environment
 Reactive strategy are useful in stable and competition
less environment
 Today’s environment is characterized by intense
competition and change where proactive steps are viral
to survive
HRM & ENVIRONMENT
ENVIRONMENTAL FORCES
External Forces Internal Forces

 Political – Legal  Unions

 Technological  Strategy, Task &

 Cultural Leadership
 Economic  Organizational culture &
conflict
 Professional bodies
POLITICAL – LEGAL FORCES
 Covers the impact of political institutions on the HRM
department
 Plethora of labor laws related to employment, working
conditions, pay and wages, and laws related to industrial
disputes.
 Which political party is ruling. Different parties can have
different outlook.
ECONOMIC FORCES
 Economic growth, industrial production, agriculture,
population and per capita income, money and capital
markets, suppliers, competitors, customer & industrial
labor are the components of economic environment
 Economic forces relevant to HR:
 Suppliers
 Competitors
 Customers
 Economic growth
 Industrial labor
SUPPLIERS
 Suppliers are those who provide human resources to an
organization. Employment exchanges, universities,
colleges, training institutes, consulting firms, casual-
labor contractors, competitors. The type of employees
the organization receives is depends on the supplier.
COMPETITORS
 Competition plays an important role in some the
functions and activities of HR. as the no of org.
competing for human resources increases. If several
companies offers job to one individual, the organization
with more attractive terms and conditions will win.
Employees with particular skills are hard to obtain, so
the organization must groom its own employee through
well managed HR planning programs co-ordinated
with training & development activities.
CUSTOMERS
 Have high influence on a company’s personal functions.
Customers want high quality products at reasonable
prices. Everybody must try to offer products which give
satisfaction for the money customers pay. Sales are
affected by product quality which is related to skills and
qualification of the organization employees
ECONOMIC GROWTH
 Quality of labor in any country is largely dependent on
education and health available for its citizen this is
directly related to whether the country is economically
developed or not. In advanced countries people and
govt spends more on education and health. With
greater health and education better labour is assured
which ensures higher productivity. Inverse happens in
low income countries
INDUSTRIAL LABOR
1. Certain changes which has taken place in industrial
labour, particularly in the organized sector
 Commitment to industry
 Protective legislation
 Status
 Employment pattern
 Unionization

2. Diversity: working together within diversity of national,

origin, cultures, religions, languages, dialects, educational
attainment, skills, values, ages, races, genders, etc..
3. Impact of globalization: in this process businesses or other
organizations develop international influence or start
operating on an international scale
TECHNOLOGICAL
 Job tends to more intellect
 Obligation of HRM to train workers to new technology
and to rehabilitate (re-establish) those who can not be
trained
 Workers acquaint with new technology are more
demanding
 Technology has impact on human relations

 Job holders have become highly professional and

knowledgeable
CULTURAL FORCES
 Cultural refers to complete whole which includes
knowledge, belief, art, morals, laws, customs, and other
capabilities & habits acquired by an individual as a
member of society.
INTERNAL FORCES
 Unlike the external forces, where as HRM has no
control, internal factors are within its influence.
 Prominent internal forces are
 Strategy
 Task
 Leadership
 Unions
 Organizational culture and conflicts
 Professional bodies
STRATEGY, TASK AND LEADERSHIP
 Alignment between the strategy, structure, people and
management is important for organization’s success
 Nature of task/job also affects HR in terms of hiring,
compensation, training etc.
 Leader also impact any of function area of organizations.
UNIONS
 Unions are considered a part of integral as well as
external force in an organization due to its affiliation
from outside political parties.
 Unions have influence on all HR activities right from
hiring to separation
CONTRIBUTING ROLE OF HR
MANAGEMENT
CONTRIBUTING ROLE OF HR
MANAGEMENT
 It's the people in an organization that carry out many
important work activities. Managers and HR
professionals have the important job of organizing
people so that they can effectively perform these
activities. This requires viewing people as human assets,
not costs to the organization. Looking at people as assets
is part of contemporary human resource management
and human capital management.
 Role of Human Resource Management: The human resources
management team suggests to the management team how to
strategically manage people as business resources. This includes
managing recruiting and hiring employees, coordinating
employee benefits and suggesting employee training and
development strategies. In this way, HR professionals are
consultants, not workers in an isolated business function; they
advise managers on many issues related to employees and how
they help the organization achieve its goals.
 Collaboration: At all levels of the organization, managers and
HR professionals work together to develop employees' skills.
For example, HR professionals advise managers and supervisors
how to assign employees to different roles in the organization,
thereby helping the organization adapt successfully to its
environment. In a flexible organization, employees are shifted
around to different business functions based on business
priorities and employee preferences.
 Commitment Building: HR professionals also suggest
strategies for increasing employee commitment to the
organization. This begins with using the recruiting process
or matching employees with the right positions according
to their qualifications. Once hired, employees must be
committed to their jobs and feel challenged throughout the
year by their manager.
 Building Capacity: An HRM team helps a business
develop a competitive advantage, which involves building
the capacity of the company so it can offer a unique set of
goods or services to its customers. To build the an
effective human resources, private companies compete
with each other in a "war for talent." It's not just about
hiring talent; this game is about keeping people and
helping them grow and stay committed over the long term.
QUALITIES OF HR MANAGER
QUALITIES OF HR MANAGER
 Intelligence
 Educational skills

 Discriminating skills

 Executing skills

 Experience and training

 Professional attitudes

 Qualifications
FUTURE ROLE & CHALLENGES BEFORE
HRM
1. Retaining and Rewarding Talented Candidates: Around 59%
seasoned HR professionals believe that in the next few years,
major battle will be retaining talented and well-
performing candidates. Moreover, it is going to become even
worse to recognize and reward the real performers as the market
competitiveness is growing and that needs more collaborated
efforts to establish loyalty among employees.
2. Developing Future Leaders: With growing options for top
performing candidates, employers are in a great jitty over how will
they build the future pillars of the organization. The rising
employee turnover rate is giving recruiters really a tough time with
implementing practices to enhance employee engagement and
make them stay for long in the organization. Over 52% HR people
have a serious concern over building next generation
organizational leaders.
FUTURE ROLE & CHALLENGES BEFORE
HRM
3. Establishing Healthy and Cooperative Corporate Culture:
Corporate culture has become one of the deciding factors lately.
Elevating market demands makes companies work more to grow,
expand and sustain within the volatile market scenarios. This, thus
directly or indirectly affects the organizational culture, as every
resource is over-occupied with loads of work that may affect the
healthy work culture at office leading more to clashes or office chaos.
4. Attracting Top Talent to Organization: During any job interview, a
candidate’s job is to sell himself to the recruiters. Similarly, the
recruiters also need to sell themselves before the candidate. It is now
more important as the talent shortage is making every organization
strive to bring in the best talent and become the most preferred choice
among available options. Around 36% recruiters feel that it is the
need of the hour to establish a corporate culture that will attract best
candidates to your organization.
FUTURE ROLE & CHALLENGES BEFORE
HRM
5. Elevating Human Capital Investments: Around two-fifth of HR
professionals indicate that the biggest challenge for the coming decade will
be acquiring human capital and optimizing human capital investments. On
deeply analyzing the challenges, one thing that is clear is that the most
difficult challenge that’ll crop up is retaining good employees and attracting
best candidates. This entails that HR professionals need to develop talent
management tactics that can effectively contribute in attracting, retaining
and rewarding top performing employees. But what the organizations can do
for countering this skills shortage and ensure that they find right
candidates? Here are the major responses to this…
6. Flexible Work Arrangements: Millennials just love it! The coming
generation of employees emphasizes on working in flexible set-ups and the
major concern must be kept on giving results and not on working in a
traditional 9 to 6 set-up. This does not disrupts the company decorum or
discipline, it will just allow individuals to work the way they want and
exhibit better productivity. Even 40% HR pros believe that this can be a
wining factor.
FUTURE ROLE & CHALLENGES BEFORE
HRM
7. Clear & Transparent Work Culture & Open Leadership:
Employees demand it greatly, but are seen rarely! That’s a
fact! Maximum organizations fail to establish a culture of clear
and transparent work communication or open leadership that
somewhere affects the employee morale and his dedication to
work. 37% have indicated that if communication barriers are
removed, then the organization can attract more candidates.
8. Career Advancement Opportunities for Employees: If the
company takes employee career development seriously and
strives to work for it as well, then definitely you can shine out
over your competitors who are also looking to grab talented
prospects for the same jobs. Around 26% professionals have
indicated this as a problem and major factor for increased
attrition rate.
FUTURE ROLE & CHALLENGES BEFORE
HRM
9. Better Compensations: Undoubtedly, money matters! If you have a
start performer, you need to take good care of the compensation you
offer. These days employers are largely playing on this factor with
awarding employees lucrative reward packages and attracting more
talent towards them. Thus, recruiters need to fold up their sleeves to
attract the real talent to themselves to stay ahead of their counterparts.
 Recruitment processes are the first interface of candidates with the
company and this need to be the best of all. The employer must sell the
organization to the candidate and the boarding candidate must also feel
elated on joining the same. Apart from other factors, one is that of
technology upgraded-ness. Now is the time of the cloud and one has to
be up on technology as every candidate wants to get smoother
recruitment application and processing. An effective Recruitment
Management System must be there that can take care of channelized
processing from application to on-boarding while the HR people can
work on other retention and acquisition tactics!