HRM Unit 1
HRM Unit 1
HRM Unit 1
MANAGEMENT– UNIT 1
PRESENTATION BY:- DR.SHREYA VERMA
DEFINITION OF HRM
► HRM is a strategic approach to the acquisition, motivation and development and the
management of human resources.
► It is a specialized field that attempt to developing organizational corporate culture,
implements the programs which reflect values of the organization and ensure its success.
► HRM is proactive rather than reactive i.e., looking forward what to what needs to be done
and then doing it, rather than waiting to be told what to do about recruiting, paying and
training people, or dealing with employee relations problems as they arise.
► The techniques for the application of HRM will include many familiar functions of
personnel managers, such as man-power planning, selection, performance appraisal, salary
administration, training and management development and to improve communication
systems, involvement, commitment and productivity.
CONCEPT OF HRM
► Broadly, there are three meaning attached to the concept of HRM. In the first place, persons
working in an organization are regarded as a valuable source, implying that there is a need to
invest time and effort in their development.
► Secondly, human resources have their special characteristics cannot be treated like other
resources. And thirdly, human resources do not really focus on employees as individual, but also
on other social realities, units and processes in the organizations.
► HRM is the qualitative improvement of human beings who considered as valuable assets of an
organization—the source, resources and the end user of all products and services. HRM is clearly
an out growth of older process and approach but it is much more than the parent disciplines i.e.,
personnel management and behavioral sciences.
► It is also deep rooted than training and development and approach is multi-disciplinary.
Traditional Personnel Functions (TPF) and Human Resources
Development (HRD)
► The organizations have to face lots of challenges in the present scenario. These challenges
may be categorized according to their primary focus; the environment, the organization, or
the individual.
ENVIRONMENTAL CHALLENGES
► The environmental challenges are the forces external to the firm which influences the performances beyond
management control. The strategist has to monitor the external environment constantly for opportunities and
threats.
► The organization has to prosper and survive in a volatile environment of change. The rapid change can put
employees under a great deal of stress, unless the firm has to develop a support mechanism to keep it
manageable both the organization and employees may have to face a heavy price.
► The growth of internet in recent years represents the most important factor of affecting organization and
their human resource practices.
► Expansion of service sector employment is linked to a number of factors, including changes in consumer
tastes and preferences, legal, regulatory changes in the way business are organized and managed.
ORGANIZATIONAL CHALLENGES
► Organizational challenges are concerned or internal to a firm and is the by product of environmental
forces because the organizations cannot run in a vacuum.
► The challenges include the need for competitive position and flexibility, the problems of down
sizing and organizational restructuring, the use of self managed work teams, the rise of small
business, the need to create a strong culture, the role of technology and the rise of outsourcing.
► The rise of telecommunications, information technology has a greater impact on overall working
mechanism of the organization. Outsourcing now becomes a fade in modern firms.
► Their motivation is very simple; Outsourcing saves money.
► It creates several HR challenges for firms. The employees may face layoff and also the firm should
remain accountable for the actions of its subcontractors.
► The subcontractors have to be evaluated and watched carefully.
INDIVIDUAL CHALLENGES
► Human resource issues at the individual level address the decisions most important to the organizations competitive
position, which is likely to be affected to the most of the employees. It has much impact on the environment.
► The most important individual challenges today involve matching people and organizations, ethics and social
responsibility, productivity, empowerment, brain drain and job security.
► This can contribute to firm performance most when the firm uses these strategies to attract and retain the potential
employees who can best fit with the company culture and overall business objectives.
► The employees expect that the organization has to behave in the best possible behave ethically are increasing. HR
strategies should make a balance between employees’ expectation of ethical behaviour from the employer and in the
business.
Objectives of HRM
1. To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.
2. To establish and maintain sound organizational structure and desirable working relationships among all
the members of the organization.
3. To secure the integration of individual or groups within the organization by co-ordination of the
individual and group goals with those of the organization.
4. To create facilities and opportunities for individual or group development so as to match it with the
growth of the organization.
5. To attain an effective utilization of human resources 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 and measures for challenging work, prestige,
recognition, security, status.
7. To maintain high employees morale and sound human relations by sustaining and improving the various
conditions and facilities.
8. To strength and appreciate the human assets continuously by providing training and development
programs.
9. To consider and contribute to the minimization of socio-economic evils such as unemployment,
under-employment, inequalities in the distribution of income and wealth and to improve the welfare of the
society by providing employment opportunities to women and disadvantaged sections of the society.
10. To provide an opportunity for expression and voice management.
11. To provide fair, acceptable and efficient leadership.
12.To provide facilities and conditions of work and creation of favourable atmosphere for maintaining
stability of employment.
EVOLUTION OF HRM
► Human Resource Management (HRM) has evolved over time to meet the changing needs
of organizations and the workforce. Here are some of the key types of the evolution of
HRM, those are;
• Administrative HRM
• Behavioral HRM
• Strategic HRM
• International HRM
• Digital HRM
► 1. Administrative HRM
► The earliest form of HRM was administrative, where HR was primarily responsible for
record-keeping and compliance with employment laws and regulations.
► This approach focused on transactional activities, such as hiring, payroll, and benefits
administration.
► 2. Behavioural HRM
► In the 1950s and 1960s, HRM evolved to focus on the behavioural aspects of managing employees.
► This approach emphasized employee motivation, communication, and leadership development. It
also saw the emergence of performance management systems, employee training and development
programs, and team-building initiatives.
► 3. Strategic HRM
► Strategic HRM emerged in the 1980s and 1990s as a response to the changing business environment.
► This approach focuses on aligning HR strategies with business strategies and objectives. It emphasizes the
development of high-performance work culture, the evolution of human behaviour, talent management,
and workforce planning.
► 4. International HRM
► With globalization and the rise of multinational corporations, HRM has evolved to include an
international dimension. International HRM focuses on managing employees from different cultures, in
different countries, and with different legal requirements.
► It also involves developing global HR policies and practices that balance standardization with local
adaptation.
► 5. Digital HRM
► In recent years, The evolution of HRM includes digital technologies and analytics. Digital HRM
encompasses the use of HR information systems, online recruitment, e-learning, social media, and data
analytics to enhance HR operations, improve decision-making, and optimize the employee experience.
► These are some of the key types of the evolution of Human resource management, and it’s important for
organizations to understand these changes and adapt their HR strategies accordingly to meet the needs of
their employees and the business.
HRM FUNCTIONS
► Interpersonal skills :- HR staff are the first company representatives potential employees meet during the
hiring process, and making a positive impression is important. These individuals greatly influence the
company culture, and can help employees feel safe and welcome within the organization. Human
resources should be professional, yet approachable. These individuals should be able to chat with co
workers about non-work topics while not prying too far into colleagues’ personal lives. HR professionals
should show genuine interest and concern for colleagues and build rapport. Interacting with staff is a
major part of the job, so HR employees should possess strong social skills.
► Emotional intelligence:- Emotional intelligence, or the ability to accurately identify and respond to
emotions, is one of the most valuable HR competencies. Exercising a high EQ enables HR professionals
to better understand and bond with employees. Recognizing and acknowledging feelings and experiences
often earns HR staff the trust and cooperation of colleagues.
► Confidentiality:- Maintaining confidentiality is one of the most important HR skills. The human resources
department is privy to sensitive information like employees’ personal records and details, performance
evaluations, and payroll information. Employees sometimes confide personal issues such as medical
problems, family disputes, or unstable living situations. Plus, HR is often the first department to know about
major organizational changes.
► Active Listening:- The HR department are the ears of the organization. Human resources hears employees’
questions, and concerns. These team members solicit feedback from staff through employee engagement
surveys. When personal or professional problems arise, teammates seek HR’s council. There are two main
reasons human resource staff should employ active listening. First, HR often needs to document
conversations, and paying close attention helps them write detailed reports. Second, the practice makes
employees feel heard and valued. Workers will respect HR more if they feel that human resource officers
care about their problems.
► Event organizing:- Since HR professionals tend to be in charge of employee engagement campaigns, event
organizing skills come in handy. Human resources plans company programming such as:
• Holiday parties
• Onboarding
• Trainings
• Food organization
• Health fairs
• Team building activities and outings
• Company retreats
• Staff appreciation days
• Recruitment fairs
► Recruiting:- Recruiting is a specific skill set, not just a job. HR professionals know how to write compelling job
postings, attract and screen qualified candidates, conduct interviews, and make hiring decisions. Good recruiters
collaborate with the hiring department to create solid hiring criteria. These individuals build pools of promising
applicants by leveraging social media, company events, and referral networks. HR professionals know how to use
tools like applicant tracking systems and understand hiring best practices. These individuals have honed timing down
to a perfect science. The best HR managers know how to pace the interview process and when to extend an offer.
Talented recruiters know how to evaluate candidates on multiple levels such as technical prowess, attitude, and
culture fit.
► Conflict resolution:- One of human resource’s main functions is to resolve company disputes. The department often
mediates arguments between teammates. HR’s responsibility is to give employees a safe space to work through issues
and to help staff find workable fixes. The human resources crew should know how to de-escalate tension, encourage
active listening, steer the conversation towards solutions, and negotiate compromise. HR fosters dialogue and gives
each party ample time to explain their case. Effective mediators stay alert for underlying causes of disagreement and
explore those points as they arise.
► Communication:- Communication skills are one of the HR core competencies. Human resources speaks to
every member of the organization. These individuals take part in the interview process and welcome
employees during orientation. HR professionals send mass emails about health insurance enrolment, cultural
events, and wellness initiatives. These team members answer questions and mediate conflicts. Human
resources also gives presentations and workshops. Having good conversational, public speaking, and written
communication skills is key. HR professionals should know how to communicate professionally with
empathy and warmth.
► Administrative skills:- HR is an administrative-heavy job. The HR department is responsible for collecting
and storing vital employee information such as contact information, social security numbers, banking
information, health insurance information, payroll data, and performance reviews. Not to mention, there are
many compliance requirements departments must meet. Human resource management requires good
organizational and filing skills and data entry and management skills. Precise records prevent delays and
discrepancies that inconvenience employees. Maintaining accurate systems helps the company function
smoothly and avoid penalties or fines.
► Technical skills:- Technical skills are increasingly important for HR managers. You may need to use
online communication platforms, or tools for tracking employee performance or engagement. The best
way to learn technology is to actually use it.