HRM Unit 1
HRM Unit 1
3. Basic to all Functional Areas : Human Resource Management permeates all the
functional area of management such as production management, financial
management, and marketing management. That is every manager from top to bottom,
working in any department has to perform the personnel functions.
2. Organisation : Under organisation, the human resource manager has to organise the
operative functions by designing structure of relationship among jobs, personnel and
physical factors in such a way so as to have maximum contribution towards
organisational objectives.
In this way a personnel manager performs following functions :
(a) preparation of task force;
(b) allocation of work to individuals;
(c) integration of the efforts of the task force;
(d) coordination of work of individuals with that of the department.
The guild system marked a shift, introducing structured selection, training, and collective
bargaining, laying the groundwork for modern HRM. However, the Industrial Revolution
replaced the guild system with factory settings, characterized by unhealthy practices like
long hours, poor work environments, and strained relationships. Visionaries like Robert
Owen advocated for better conditions to enhance productivity, though they faced
resistance.Post-World War I, HRM advanced with psychology applied to management,
improving industrial relations and productivity. The Hawthorne studies highlighted the
importance of human relations. Organizations began offering fringe benefits and
adopting manpower planning, training, and employee benefit schemes. Personnel
departments evolved into specialized HR teams with expertise in recruitment,
counseling, wage administration, and development.
In ancient India, the *Varnashram* (caste) system influenced labor division, with
professions often becoming hereditary. Employer-employee relationships were equitable
until the medieval period, when foreign invasions disrupted HR practices. During Mughal
rule, *Karkhanas* (workshops) were established, but artisans lived in poverty, and
productivity suffered. Under British rule, labor conditions worsened until the 1881
Factory Act, which introduced weekly holidays, regulated working hours, and restricted
child labor. By 1890, labor organizations like the Bombay Mill Hands Association
emerged to advocate for workers' rights, followed by unions like the Printers Union
(1905) and Madras Labour Union (1918).
Union movements gained momentum around World War II, and post-independence,
HRM expanded its scope. Modern HR departments now handle welfare activities,
employment, safety, training, wage administration, promotions, transfers, dispute
resolution, and improvements in work and living conditions.
The Best Fit School
The best fit perspective focuses essentially on the HR-strategy link. It is, therefore, also
called the strategic approach or contingency approach. It is based on the premise that
organizational effectiveness is contingent on ensuring a fit between corporate strategy
and HRM. The issue involving the link between strategy and HR revolves around the
debates in strategic management between Igor Ansoff and Henry Mintzberg and
between Michael Porter and C. K. Prahalad. These debates highlight the differences in
approaches to strategic management. Their debate revolves around the issue of
whether strategy formulation and implementation are separate. The differences pin upon
the planning versus learning hypothesis giving rise to two streams of research:
The matching model of HRM (refer to pdf given during cia)
One of the first explicit statements of the HRM concept was made by the Michigan
School (Fombrun et al, 1984). They held that HR systems and the organization structure
should be managed in a way that is congruent with organizational strategy (hence the
name ‘matching model’). They further explained that there is a human resource cycle,
which consists of four generic processes or functions that are performed in all
organizations. These are:
1. selection – matching available human resources to jobs
2. appraisal – performance management
3. rewards – ‘the reward system is one of the most under-utilized and mishandled
managerial tools for driving organizational performance’; it must reward short
as well as long-term achievements, bearing in mind that ‘business must perform
in the present to succeed in the future
4. development – developing high quality employees.
Beer and his colleagues believed that ‘Today, many pressures are demanding a
broader, more comprehensive and more strategic perspective with regard to the
organization’s human resources.’ These pressures have created a need for: ‘A longer-
term perspective in managing people and consideration of people as potential assets
rather than merely a variable cost.’ They were the first to underline the HRM tenet that it
belongs to line managers. They also stated that: ‘Human resource management
involves all management decisions and action that affect the nature of the relationship
between the organization and its employees – its human resources.’
The Harvard school suggested that HRM had two characteristic features: 1) line
managers accept more responsibility for ensuring the alignment of competitive
strategy and personnel policies; 2) personnel has the mission of setting policies that
govern how personnel activities are developed and implemented in ways that make
them more mutually reinforcing. The Harvard framework as modelled by Beer et al is
shown in Figure below
According to Boxall (1992) the advantages of this model are that it:
● incorporates recognition of a range of stakeholder interests;
● recognizes the importance of ‘trade-offs’, either explicitly or implicitly, between
the interests of owners and those of employees as well as between various interest
groups;
● widens the context of HRM to include ‘employee influence’, the organization of
work and the associated question of supervisory style;
● acknowledges a broad range of contextual influences on management’s choice of
strategy, suggesting a meshing of both product-market and socio-cultural logics;
● emphasizes strategic choice – it is not driven by situational or environmental
determinism.
The Harvard model has exerted considerable influence over the theory and practice of
HRM, particularly in its emphasis on the fact that HRM is the concern of management in
general rather than the personnel function in particular.
HRM Objectives:
●Managing people as assets that are fundamental to the competitive advantage of the
●organization.
●Aligning HRM policies with business policies and corporate strategy.
●Developing a close fit of HR policies, procedures and systems with one another.
●Creating a flatter and more flexible organization capable of responding more quickly
to change.
●Encouraging team working and co-operation across internal organizational
boundaries.
●Creating a strong customer-first philosophy throughout the organization.
●Empowering employees to manage their own self-development and learning.
●Developing reward strategies designed to support a performance-driven culture.
●Improving employee involvement through better internal communication.
●Building greater employee commitment to the organization.
●Increasing line management responsibility for HR policies.
Emerging HR Roles
● HR Analytics Specialist
● Employee Experience Manager:
● Diversity, Equity, and Inclusion (DEI) Manager
● Talent Management Specialist:
● Employer Branding Specialist
● HR Technology Specialist
● Agile HR Manager:
● Remote Work Coordinator:
● Employee Well-being Specialist
● HR Business Partner
Concept of HR Planning- process of matching the available resources with the demand that
the organization expects to have over a period of time
Objectives:
To estimate the number and type of HRs
To forecast the turnover/attrition rates
To meet the organizational requirements
To foresee the effects of technological changes on the HR requirement
To develop the existing human resources to match the HR requirement
(i) ensure optimum use of human resources currently employed;
(ii) avoid balances in the distribution and allocation of human resources;
(iii) assess or forecast future skill requirements of the organisation‘s overall objectives;
(iv) provide control measure to ensure availability of necessary resources when required;
(v) control the cost aspect of human resources;
(vi) formulate transfer and promotion policies.
1. Environmental scanning
2. Demand Forecasting: Qualitative methods like Delphi technique, Group Brainstorming,
Nominal group technique
● Quantitative Method: Trend analysis, Workload analysis
3. Forecasting Supply of Human Resources : One of the important areas of human resources
planning is to deal with allocation of persons to different departments depending upon the
work-load and requirements of the departments. While allocating manpower to different
departments, care has to be taken to consider appointments based on promotions and
transfers. Allocation of human resources should be planned so that available manpower is put
to full use to ensure smooth functioning of all departments.
4. Estimating Manpower Gaps : Net human resource requirements or manpower gaps can be
identified by comparing demand and supply forecasts. Such a comparison will reveal either
deficit or surplus of human resources in future. Deficits suggest the number of persons to be
recruited from outside whereas surplus implies redundant to be redeployed or terminated.
Similarly, gaps may occur in terms of knowledge, skills and aptitudes. Employees deficient in
qualifications can be trained whereas employees with higher skills may be given more
enriched jobs.
5. Matching Demand and Supply : It is one of the objectives of human resource planning to
assess the demand for and supply of human resources and match both to know shortages and
surpluses on both the side in kind and in number. This will enable the human resource
department to know about overstaffing or understaffing. Once the manpower gaps are
identified, plans are prepared to bridge these gaps. Plans to meet the surplus manpower may
be redeployment in other departments and retrenchment in consultation, with the trade unions.
People may be persuaded to quit through voluntary retirement. Deficit can be met
through recruitment, selection, transfer, promotion, and training plans. Realistic plans for the
procurement and development of manpower should be made after considering the macro and
micro
environment which affect the manpower objectives of the
organisation.
Job Analysis
Job Analysis is a procedure by which pertinent information is obtained about a job, i.e., it is a
detailed and systematic study of information relating to the operation and responsibilities of a
specific job.
2. Recruitment and Selection : By indicating the specific requirements of each job (i.e., the
skills and knowledge), it provides a realistic basis for hiring, training, placement, transfer and
promotion of personnel.
3. Wage and Salary Administration : By indicating the qualifications required for doing specified
jobs and the risks and hazards involved in its performance, it helps in salary and wage
administration. Job analysis is used as a foundation for job evaluation.
4. Job Re-engineering : Job analysis provides information which enables us to change jobs in
order to permit their being manned by personnel with specific characteristics and
qualifications. This takes two forms :
(a) Industrial Engineering Activity, which is concerned with operational analysis, motion study,
work simplification methods and improvements in the place of work and its measurement, and
aims at improving efficiency, reducing unit labour costs, and establishing the production
standard which the employee is expected to meet;
and
(b) Human Engineering Activity, which takes into consideration human capabilities, both
physical and psychological, and prepares the ground for complex operations of industrial
administration, increased efficiency and better productivity.
5. Employee Training and Management Development : Job analysis provides the necessary
information to the management of training and development programmes. It helps it to
determine the content and subject-matter of in-training courses. It also helps in
checking application information, interviewing, weighing test results, and in checking
references.
6. Performance Appraisal : It helps in establishing clear-cut standards which may be compared
with the actual contribution of each individual.
7. Health and Safety : It provides an opportunity for indentifying hazardous conditions and
unhealthy environmental factors so that corrective measures
Observation Method: Using the observation method, a job analyst watches employees directly
or reviews films of workers on the job. Although the observation method provides first hand
information, workers rarely function most efficiently when they are being watched, and thus
distortions in the job analysis can occur. This method also requires that the entire range of
activities be observable, which is possible with some jobs, but impossible for many others—for
example, most managerial jobs.
Individual Interview Method: The individual interview method assembles a team of job
incumbents for extensive individual interviews. The results of these interviews are combined
into a single job analysis. This method is effective for assessing what a job entails. Involving
employees in the job analysis is essential.
Job Descriptions: A job description is a written statement of what the jobholder does, how it
is done, under what conditions, and why. It should accurately portray job content, environment,
and conditions of employment. Although there is no standard format for job descriptions, a
common format for a job description includes:
■ Job title usually describes the job and hints at the nature and duties of the job.
■ Job identification section includes the department location of the job, who the
person reports to, a job identification code, which is sometimes the O*NET
code, and the date the description was last revised.
■ Job duties or essential functions lists the job duties in order of importance.
This section is particularly important because it helps the organization with
ADA compliance.
■ Job specifications that explain the personal qualifications necessary to perform
the duties listed above including specific skills, education, certification, and
physical abilities.
When we discuss employee recruitment, selection, and performance appraisal we will find that
the job description acts as an important resource for
(1) describing the job to potential candidates (either verbally by recruiters and interviewers or
in written advertisements),
(2) guiding newly hired employees in what they are specifically expected to do, (3) developing
criteria for evaluating performance of the individual holding that job, (
4) establishing the relative worth of the job for compensation. Furthermore, under the
Americans with Disabilities Act, job descriptions have taken on an added emphasis in
identifying essential job functions.
Job Specifications: The job specification states the minimum acceptable qualifications that
the incumbent must possess to perform the job successfully. Based on information acquired
through job analysis, the job specification identifies pertinent knowledge, skills, education,
experience, certification, and abilities. Individuals possessing the personal characteristics
identified in the job specification should perform the job more effectively than those lacking
these personal characteristics. The job specification, therefore, is an important tool for keeping
the selector’s attention on the list of necessary qualifications and assisting in determining
whether candidates are essentially qualified.
Job Evaluations: In addition to providing data for job descriptions and specifications, job
analysis also provides valuable information for making job comparisons. If an organization is to
have an equitable compensation program, jobs that have similar demands in terms of skills,
knowledge, and abilities should be placed in common compensation groups. Job evaluation
contributes by specifying the relative value of each job in the organization, which makes it an
important part of compensation administration. In the meantime, keep in mind that job
evaluation relies on data generated from job analysis.
The Multifaceted Nature of Job Analysis
This job analysis extends beyond meeting the federal equal employment opportunity
requirement. Almost everything that HRM does relates directly to the job analysis process.
Organizations frequently cite recruiting, selection, compensation, and performance appraisal
as activities directly affected by the job analysis, among others. The job analysis process
assists employee training and career development by identifying necessary skills, knowledge,
and abilities. Where deficiencies exist, training and development efforts can help. Job analysis
also aids in determining safety and health requirements and labor relations processes.
Accordingly, the often lengthy and complex job analysis process cannot be overlooked. We
cannot overemphasize the importance of job analysis, as it permeates most of an
organization’s activities. If an organization doesn’t do its job analysis well, it probably doesn’t
perform many of its human resource activities well. If employees in the organization
understand human resource activities, they should understand the fundamental importance of
job analysis. The job analysis, then, is the starting point of sound HRM. Without knowing what
the job entails, the HRM activities covered in the following chapters may be merely an effort in
futility.
Job Design
Job design refers to the way that the position and the tasks within that position are organized.
It describes: what tasks are included; how and when the tasks are done; and any factors that
affect the work, such as in what order the tasks are completed and the conditions under which
the tasks are completed. Problems arise when employees don’t feel a sense of
accomplishment after completing the tasks. To prevent this, the job needs to be designed so
that the tasks have a clear purpose that relates to the company mission. Too often,
organizations take tasks that more senior employees consider unpleasant and load those into
positions for new hires. Good job design incorporates tasks that relate to organizational goals
and values into every job description.
Job Enrichment
Frederick Herzberg suggested that the best way to motivate employees is through job
enrichment. He suggested “If you want people to do a good job, give them a good job
to do.” His job enrichment model includes expanding job content to create more
opportunities for job satisfaction.
Expanding on Herzberg’s suggestions, J. Richard Hackman offered a model of how
to design jobs that provide motivation based on five core job characteristics:
1. Skill variety: allowing workers to use different skills and talents to do a number of different
activities.
2. Task identity: workers are able to see a completed product or project or some visible
outcome that creates a sense of accomplishment.
3. Task significance: the tasks performed have some meaningful impact on the organization, or
the external environment.
4. Autonomy: worker has some control over the job.
5. Feedback from the job itself: the job includes some opportunity to show the worker if the
tasks are done properly.