HUMAN RESOURCE MANAGEMENT

Unit I: Introduction to Human Resource Management and Environment

MEANING OF HRM
HRM is the art of Procuring, developing and maintaining competent workforce to achieve
organizational goals effectively.

The process of employing people, developing their resources, utilizing, maintaining &
compensating their service in tune with the job & organizational requirements with a view to
contribute to the goals of the organization, individual & the society.

DEFINITION

According to Wendell L French “the human resource management refers to the philosophy,
policies, procedures, & practice related to the management of people within an organization.

According to Stephen P Robbins, HRM is a process consisting of the acquisition,

development, motivation & maintenance of human resources.

SCOPE OF HRM

The Scope of Human Resource management into the following aspects

1. The Personnel Aspect: This aspect of HRM is concerned with the manpower
planning, recruitment, selection, placement, induction, transfer, promotion, demotion,
termination, training & development, layoff & retrenchment, wage & salary
administration, incentives, productivity etc.

2. The Welfare Aspect: The welfare aspect is concerned with working conditions &
amenities such as canteens, crèches, rest rooms, lunch rooms, housing, transport,
education, medical help, health & safety, washing facilities recreation & cultural
activities etc.

3. The Industrial Aspect: This aspect is concerned with employees. It includes union
management relations, joint consultation, negotiating collective bargaining, grievance
handling, disciplinary actions, settlement of industrial disputes etc.
IMPORTANCE OF HRM

1. Importance for the Organization: HRM is important for the organization to the
following:

 Good human resource practices help in attracting & retaining the best people in
the organization.
 In order to make use of latest technology the appointment of right type of
persons is essential. The right people can be fitted into new jobs properly only if
the management performs its HR function satisfactorily.
 Globalization has increased the size of the organization who employ thousands
of employees in different countries. The performance of the company depends
upon the qualities of the people employed. This has further increased the
importance of HRM.
 HR planning alerts the organization to the types of people it will need in the
short, medium & long run.
 HR development is essential for meeting the challenges of future. The importance
of HRM has increased because of the shortage of really managerial talent in the
country.
2. Importance for the Employees
 HRM stress on the motivation of employees by providing them various
financial & non-financial incentives.
 Right organizational climate is also stressed upon so that the employees can
contribute their maximum to the achievement of the organizational objectives.
 Effective management of HR promotes team wok & team spirit among
employees.
 It offers excellent growth opportunities to people who have the potential to
rise.
 It also encourages people to work with diligence & commitment.

3. Importance for the society:

 Good HR efforts lead to productivity gains (ration of output to input) to the
society, since it enables the managers to reduce costs, save scarce resources,
 enhance profits & offer better pay, benefits & working conditions to
employees.

OBJECTIVES OF HRM

1) Societal Objectives:

 To manage human resources in an ethical & socially responsible manner.

 To ensure compliance with legal & ethical standards.
 To minimize the negative impact of societal demands upon the organization.

2) Organizational Objectives:

 HR department, like any other department in an organization, should focus on achieving

the goals of the organization first. If it does not meet this purpose, the HR department
cannot exist in the long run.
 HR department should recognize its role in bringing about organizational effectiveness.
 HRM is not an end in itself. It is only a means to assist the organization with its primary
objectives.
3) Functional Objectives:
 To maintain the HRM departments contribution at a level appropriate to the organization’s
needs. Resources are wasted when HRM is either more or less sophisticated to suit the
organization’s demands.
 The department’s level of service must be tailored to fit the organization it serves.
 HRM should employ the skills & abilities of the workforce efficiently. It should aim at
making the people’s strength more productive & beneficial to the organization.
 HRM should aim at providing the organization with well trained & well motivated
employees.
4) Personnel Objectives
 HRM should increase employees job satisfaction to the fullest extent.
 HRM should also meet the self-actualization needs of the employees. It should stimulate
every employee to achieve his potential.
 HRM should assist the employees in achieving their personal goals, at least in so far as
these goals enhance the individual’s contribution to the organization.
  HRM should develop & maintain a quality of work life. It makes employment in the
organization a desirable, personal & social situation. Organizational performance can
never be improved without the quality of work life.
 The HRM should also communicate HR policies to all employees. It will help the HRM in
tapping the ideas, opinions, feelings, & the views of the employees.

PERSONNEL MANAGEMENT

Meaning: It is the process of Planning, organizing, compensation, integration & maintenance

of people for the purpose of contributing to organizational individual & societal goals.

Personnel management can be defined as obtaining, using & maintaining a satisfied

workforce.

Definition: Acc. to Flippo “personnel management is the planning, organizing,

compensation, integration & maintenance of people for the purpose of contributing to
organizational, individual & societal goals.

Acc, to Brech “personnel management is that part which is primarily concerned with human
resources of organization.

DIFFERENCES BETWEEN PERSONNEL MANAGEMENT & HRM

PERSONNEL MANAGEMENT HRM

It is a traditional approach to managing It is modern approach to managing people
people in the organization. in the organization.
It focuses on personnel administration, It focuses on acquisition, development,
employee welfare, & labor relation motivation & maintenance of HR in the
organisation
It assumes people as input for achieving the It assumes people as in important & valuable
desired output. resource for achieving the desired output.
It undertaken for employee satisfaction. It undertaken for goal achievement.
Job design is done on the basis of division of Job design function is done on the basis of
labour. group work/teamwork
Employees are provided with less training & Employees are provided with more training &
development opportunities. development.
Decisions are made by the top management as perDecisions are made collectively after
the rules & regulation of the organisation considering employee’s participation, authority,
decentralization, competitive environment etc.
It focuses on increased production & satisfied It focuses on effectiveness, culture, productivity
employees & employee’s participation.
It is concerned with the personnel manager. It is concerned with all levels of managers from
top to bottom.
It is a routine function. It is a strategic function.

FUNCTIONS OF HRM

1. MANAGERIAL FUNCTION: Managerial function includes

a) Planning: It is pre-determined course of action. Planning pertains to formulating strategies

of personnel programmes & changes in advance that will contribute to the organizational
goals. In other words, it involves planning of HR, requirements, selection, training etc.

b) Organizing: an organization is a means to an end. It is essential to carry out the

determined course of action. Acc. to J.C Massie, an organization is a structure & a process by
which a co-operative group of human beings allocates its task among its members, identifies
relationship & integrates its activities towards a common objective.

c) Directing: activating employees at different level & making them contribute maximum to
the organization is possible through proper direction & motivation. Taping the maximum
potentialities of the employees is possible through motivation & command.

d) Controlling: after planning, organizing, & directing the actual performance of employees
is checked, verified & compared with the plans. It the actual performance is found deviated
from the plan; control measures are required to be taken.

ii) OPERATIVE FUNCTIONS

the operative functions of HRM are related to specific activities like

1) Employment: It is concerned with securing & employing the people possessing the
required

kind & level of human resources necessary to achieve the organizational objectives. It
includes

i) Job Analysis: it is the process of study & collection of information relating to the Role &
Responsibilities of a specific job.

ii) HR Planning: it is a process for determination & assuring that the organization will have
an adequate number of qualified persons, available at proper times, performing jobs, which
would meet the needs of the organization & which would provide satisfaction for the
individuals involved.

iii) Recruitment: is the process of searching for prospective employees & stimulating them
to apply for jobs in an organization.

iv) Selection: it is the process of ascertaining the qualifications, experiences, skills,

knowledge etc of an applicant with a view to appraising his/her suitability to a job.

v) Placement: it is the process of assigning the selected candidate with the most suitable job
in terms of job requirements. It is matching employee specifications with job requirements.

vi) Induction & Orientation: Induction & orientation are the techniques by which a new
employee is rehabilitated in the changed surrounding & introduced to the practices, policies,
purposes & people of the organization.

2. Human Resource Development: It is the process of improving, moulding & changing the
skills, knowledge, creative ability, aptitude, values, commitment etc based on present &
future job organizational requirements. It includes.

i) Performance Appraisal: it is the systematic evaluation of individuals with respect to their

performance on the job & their potential for development.

ii) Training: it is the process of imparting to the employees technical & operating skills &
knowledge.

iii) Managerial Development: it is the process of designing & conducting suitable executive
development programmes so as to develop the managerial & human relations skill of
employees.

iv) Career Planning & Development: it is the planning of one’s career & implementation
career plans by means of education, training, job search & acquisition of work experience. It
includes internal mobility & external mobility.

v) Transfer: it is process of placing employees in the same level jobs where they can be
utilized more effectively in consistence with their potentialities & needs of the employees &
the organization.
vi) Promotion: it deals with upward reassignment given to an employee in the organization
occupy higher position which commands better status or pay keeping in view in human
resources of the employees & the job requirements.

vii) Demotion: it deals with downward reassignment to an employee in the organization.

viii) Retention Management: employers prefer to retain more talented employees while they
retrench less talented employees. Employers modify existing human resource strategies &
craft new strategies in order to pay more salaries, provide more benefits & create high quality
of work life to retain the best employees.

3) Compensation: It is the process of providing adequate, equitable & fair remuneration to

the employees. It includes

i) Wage & salary Administration: it is the process of developing & operating a suitable
wage & salary programme

ii) Incentives: it is the process of formulating administrating & reviewing the schemes of
financial incentives in addition to regular payment of wages & salary.

iii) Fringe Benefits: these are the various benefits at the fringe of the wage. Management
provides these benefits to motivate the employees & to meet their life’s contingencies. Ex: -
housing facilities, canteen facilities, medical facilities, disablement benefits etc.

iv) Social Security Measures: management provide social security to their employees in
addition to the fringe benefits. These includes worker men compensation, maternity benefits
for women, medical benefits, retirement benefits lie PF, pension, gratuity etc.

4)Human Relations: It is the process of interaction among human beings. Human relations is
an area of management in integrating people into work situation in a way that motivates them
to work together productively cooperatively & with economic, psychological & social

satisfaction.

[Link] relations: It refers to the study of relations among employee, employer,

government & trade unions. It includes Trade union, collective bargaining, Quality circles
etc,.
[Link] Trends in HRM: HRM has been advancing at a fast rate. The recent trends in
HRM includes Quality of work life, Total quality in human resources, HR accounting, audit
& research & Recent techniques of HRM.

HR MANAGER

A person who headed with HRM department. Or A person who is charge of the department
that deals with the employment, training, support, records etc, of company.

Role of HR Manager

1. The conscience role: the conscience role is that of humanitarian who reminds the
management of its morals & obligations to its employees.

2. The Counsellor: employees who are dissatisfied with the present job approach the
personnel manager for counselling. In addition, employees facing various problems like
marital, health, children’s education/marriage, mental, physical & career problems.

3. The Mediator: as a Mediator, the Personnel Manager plays the role of peace maker. He
settles the disputes between employees & the management. He acts as a liaison &
communication link between both of them.

4. The spokesman: he is a frequent spokesman for or representative of the company.

5. The Problem Solver: he acts as a problem solver with respect to the issues that involve
human resources management & overall long range organizational planning.

6. The Change Agent: he acts as a change agent & introduces change in various existing
programmes.

EVOLUTION OF HRM: The evolution of the concept of Human Resource Management is

presented below

 Period before Industrial Revolution – The society was primarily an agriculture

economy with limited production. Number of specialized crafts was limited and was
usually carried out within a village or community with apprentices assisting the
master craftsmen. Communication channel was limited.
 Period of Industrial Revolution (1750 to 1850) – Industrial revolution marked the
conversion of economy from agriculture based to industry based. Modernization and
increased means if communication gave way to industrial setup. A department was set
 up to look into workers’ wages, welfare and other related issues. This led to
emergence of personnel management with the major task as
 Worker’s wages and salaries
 Worker’s record maintenance
 Worker’s housing facilities and health care

An important event in industrial revolution was growth of Labor Union (1790) – The works
working in the industries or factories were subjected to long working hours and very less
wages. With growing unrest, workers across the world started protest and this led to the
establishment of labor unions. To deal with labor issues at one end and management at the
other Personnel Management department had to be capable of politics and diplomacy, thus
the industrial relation department emerged.

 Post Industrial revolution – The term Human resource Management saw a major
evolution after 1850. Various studies were released and many experiments were
conducted during this period which gave HRM altogether a new meaning and
importance.

A brief overview of major theories release during this period is presented below

 Frederick W. Taylor gave principles of scientific management (1857 o 1911) led

to the evolution of scientific human resource management approach which was
involved in
 Worker’s training
 Maintaining wage uniformity
 Focus on attaining better productivity.
 Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to
1940). Observations and findings of Hawthrone experiment shifted the focus of
Human resource from increasing worker’s productivity to increasing worker’s
efficiency through greater work satisfaction.
 Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s
Hierarchy of needs (1954) – These studies and observations led to the transition
from the administrative and passive Personnel Management approach to a more
dynamic Human Resource Management approach which considered workers as a
valuable resource.
 As a result of these principles and studies, Human resource management became
increasingly line management function, linked to core business operations. Some of the
major activities of HR department are listed as

1. Recruitment and selection of skilled workforce.

2. Motivation and employee benefits
3. Training and development of workforce
4. Performance related salaries and appraisals.
Process of HRM

Human Resource Management (HRM) involves various processes aimed at managing an

organization's human resources effectively to achieve organizational goals. The HRM
management process typically includes the following key steps:

Planning: This involves determining the organization's human resource needs based on its
strategic goals and objectives. HR planning includes forecasting future staffing requirements,
analyzing the skills and competencies needed, and identifying gaps in the current workforce.
Recruitment: Recruitment is the process of attracting and hiring qualified candidates to fill
job vacancies within the organization. This may involve sourcing candidates through various
channels, such as job boards, social media, employee referrals, and recruitment agencies.
Selection: Selection involves assessing candidates to determine their suitability for the job.
This may include conducting interviews, administering tests, checking references, and
conducting background checks to ensure that the selected candidates meet the job
requirements.
Orientation: Once candidates are hired, they undergo an orientation process to familiarize
them with the organization, its policies, procedures, and culture. Orientation helps new
employees settle into their roles quickly and become productive members of the team.
Training and Development: Training and development programs are designed to enhance
employees' skills, knowledge, and abilities to perform their jobs effectively. These programs
may include on-the-job training, workshops, seminars, online courses, and mentoring.
Performance Management: Performance management involves setting performance
expectations, providing feedback, evaluating performance, and rewarding or providing
corrective action as needed. Performance management aims to ensure that employees are
meeting their goals and contributing to the organization's success.
Compensation and Benefits: HRM is responsible for designing and managing compensation
and benefits packages that attract, motivate, and retain employees. This includes salary,
bonuses, incentives, health insurance, retirement plans, and other perks.
Employee Relations: HRM is also responsible for managing employee relations, which
involves handling conflicts, grievances, and disciplinary actions in a fair and consistent
manner. Building positive employee relations helps foster a productive and harmonious work
environment.
Employee Engagement: Employee engagement focuses on creating a work environment
where employees are motivated, committed, and satisfied with their jobs. Engaged employees
are more productive, innovative, and likely to stay with the organization long-term.
HR Metrics and Analytics: HRM utilizes metrics and analytics to measure the effectiveness
of HR practices and programs. This data-driven approach helps HR professionals make
informed decisions and improve HR processes over time.
By effectively managing these processes, HRM plays a crucial role in attracting, developing,
and retaining talent to support the organization's success.

HR Manager’s Functions and Responsibilities

Many human resource roles and responsibilities involve some degree of administration, from
processing payroll and keeping employee records to creating employee training sessions,
conducting performance reviews and assuring compliance with labour laws.

An adequate compensation and benefits program can help companies attract and retain top
talent. It can also align employee goals with company objectives and create company
advocates.

HR responsibilities
 Recruitment.
 Administration.
 Compensation and benefits.
 Training and development.
 Employee relations and performance management.
 Provide a career path within the organization.
 Offer continuing education opportunities.
 Train and support managers.
 Support health and wellness

Recruitment: HR departments play an essential role in recruiting employees. HR

departments identify the individual best qualified for each company position and determine
who meets that profile by advertising job vacancies, reviewing applications, conducting
interviews and screening references before conducting tests and assessments and training new
hires on their roles. The recruitment process may be time-consuming and costly as it involves
advertising job vacancies, reviewing applications received, conducting interviews, screening
references and administering tests/assessments before selecting and hiring qualified
individuals.

HR managers create compelling job descriptions that clearly outline each position’s
requirements and accurately represent their roles. They may also devise a systematic
selection process designed to ensure efficiency and fairness during hiring processes, posting
job openings across media platforms like newspapers, social media sites, career websites or
external recruiters; recruiting talent acquisition, software may be utilized by HR to find
candidates best suited to fill open positions at their companies.
HR departments sometimes conduct internal recruitment by filling a vacant position with
existing employees through promotions, usually to save money on external recruitment costs
and show they value employee development and growth. They are also accountable for
setting promotion rules such as merit or seniority to ensure fairness for both sides.

Administration: Human resources (HR) staff manage employee records, such as processing
payroll and benefits administration paperwork. This ensures compliance with labor laws
regarding working hours and ensures employees receive accurate compensation. HR workers
also manage computer files and liaise between IT and HR regarding possible troubleshooting
issues.

Human resources (HR) departments perform numerous administrative functions that range
from administering employee training and evaluating new hires to setting goals and creating
programs to assist employee growth (such as mentoring or networking groups). HR also plays
a significant role in creating an enjoyable work culture – one of their main focuses.

Other administrative responsibilities for HR professionals include developing, maintaining

and updating employment policies that comply with local, state and federal regulations for
hiring, firing and compensation practices. This may involve setting or amending hiring/firing
and compensation rules accordingly.

Examples of HR functions include revising smoking policies to comply with health and
safety requirements. Furthermore, HR may need to ensure compliance with labour laws
regarding minimum wage and overtime pay and implement and manage company policies
such as grievance procedures. Since the #metoo movement emerged, HR has played an
essential role in handling sensitive matters; HR must recognize issues early and make fast
decisions that prevent problems from becoming full-blown.

Compensation and Benefits: Human Resources professionals have the responsibility of

ensuring their employees are adequately compensated. This involves setting salaries, bonuses
and fringe benefits such as health insurance, vacation days and retirement contributions by
competitor compensation practices and setting compensation levels by those standards.

HR managers monitor workplace changes, adapt policy accordingly, and update when
needed. Furthermore, HR also disseminates these policies so all employees know them;
examples include work-from-home rules, travel policies, and dress code guidelines.
Payroll administration is another aspect of HR that demands significant time and focus.
Deductions such as taxes, allowances and reimbursements must be processed every pay
period to maintain accuracy; there are software tools that can automate some aspects of this
process to free up HR teams for other duties.

Hiring from within is an integral business component, and HR must implement policies to
facilitate it. They must also provide feedback and coaching when required – this may include
performance appraisals for employees with negative attitudes toward them. HR is responsible
for creating an appropriate procedure that produces constructive criticism and growth
opportunities – which is especially important in large workforces.

Training and Development: Human Resources plays an integral part in ensuring employee
training. This could take the form of workshops, seminars or one-on-one coaching, its
purpose being to ensure all employees possess the skills necessary to meet company and
customer expectations. Trained employees typically make fewer errors, which saves both
time and money; additionally, they know how best to use materials and equipment, which
leads to less waste or breakage expenses.

Training managers to be influential leaders is another aspect of this function. It may involve
coaching or counselling as a form of instruction, which can assist managers with conflict
within their team and deal with it more efficiently. Formal performance appraisals may also
serve the purpose of improving employee performance. Despite criticism against formal
assessments, these can still be valuable tools for increasing performance levels within
employees’ workforces.

HR managers are responsible for analyzing and reviewing employee compensation and
benefits packages. This may involve conducting market analyses to compare salaries and
benefits between competing companies or changing benefits such as retirement plans.

Human Resources plays an essential role in creating an inviting company culture. This may
involve employee recognition programs, informing staff about new opportunities within the
company and offering career paths for advancement. HR’s efforts can help a company retain
key employees and customers and boost morale and employee satisfaction levels within an
organization.
Employee Relations: Employee relations refer to interactions between an employer and its
employees, such as resolving workplace conflicts, conducting training sessions, coaching
employees on tasks they need help with, providing counselling support as necessary and
offering coaching/counselling for managers/employees as required.

Employee relations exist to create an enjoyable work environment that fosters teamwork and
cooperation among employees while giving them access to tools they need for success, such
as clear policies and procedures.

If a problem arises in the workplace, such as with coworkers or complaints against the
company, an employee relations specialist can help find solutions by identifying its source
and suggesting appropriate action. They may also assist with legal compliance issues like
discrimination and harassment investigations and provide training or consultation about
workplace topics.

HR teams must foster relationships between their employees and HR and stay aware of and
quickly react to trends affecting employee well-being. This could include monitoring job
satisfaction levels or absenteeism/turnover rates – staying abreast of these trends is vital to
ensuring your team has access to resources necessary for its success at work.

Performance Management: Human resource (HR) managers are pivotal in equipping

employees with the tools to succeed, including training programs and personal development
opportunities such as leadership degrees or professional certifications. HR also ensures that
employees have clear career pathways and ongoing education opportunities within the
organization.

Effective performance management is another core role of HR teams. Here, the goal is to
ensure that all employees receive honest and open feedback and are working toward reaching
organizational goals. This can be accomplished using tools such as Kudos (an employee
recognition platform) or, more conventionally, via one-on-one sessions between managers
and direct reports.

Other tools used to improve performance management include internal ranking functions by
subject matter experts who evaluate each part’s value to the organization. Furthermore, 360-
degree feedback provides employees with feedback from their peers and managers, allowing
them to identify gaps in communication with managers that can then be addressed through
coaching or mentoring programs. Finally, HR teams create procedures that facilitate internal
promotions based on merit or seniority.

Provide a career path within the organization: HR is responsible for various workforce-
related procedures, such as recruiting, compensation and mediating disputes. While these
duties may seem mundane, they’re critical in keeping employees satisfied and motivated to
produce their best work. Below are other roles that contribute to maintaining an HR
department running efficiently:

Career pathing is a vital function that HR professionals should be able to fulfil. Clear career
pathways enable growth opportunities while decreasing employee turnover rates; HR can
either implement formal processes for this or meet with each person individually to develop a
personalized plan.

HR can also offer professional development opportunities for all employees. This might
range from customer service classes to leadership development programs; HR will work with
managers to make sure these classes fit within employees’ schedules.

HR is also responsible for performance management. While many companies are moving
away from annual performance appraisals, performance appraisals remain integral to HR’s
role. They foster communication between managers and employees, encourage goal-setting
processes, and help enhance overall performance.

HR offers various other forms of feedback, such as 360-degree assessments or one-on-one

meetings with supervisors. These assessment forms allow for more in-depth analyses that can
pinpoint the root causes of issues.

Offer continuing education opportunities: HR departments typically oversee employee

continuing education programs, such as professional development courses and employee
tuition resources. Such initiatives provide significant incentives to remain with an employer
while helping employees advance in their careers.

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Train and support managers: Human resources managers (HR managers) are accountable
for equipping their direct reports with the skills and tools necessary for success, such as
effective onboarding, training programs, performance reviews and discipline issues when
necessary. HR managers often collaborate with other teams to ensure smooth operations
within departments.

Communication is another vital element of HR managers’ jobs. This involves sharing

company updates with employees and making sure they have access to any pertinent
information affecting them, such as policy changes, new benefits or training programs that
may impact them directly. HR managers must communicate in straightforward ways for
employees to comprehend.

Human Resources (HR) departments are charged with overseeing performance appraisals.
Although some companies are moving away from annual evaluations, this process remains
essential for HR departments to perform as it helps provide feedback on employee
performance while encouraging continuous feedback channels and helping identify training
needs.

The HR team also must establish rules regarding promotions within the company, with
preference given to merit and seniority-based practices that help retain top talent while
supporting the development of young employees. However, for this to work effectively and
avoid disputes or legal action, it must be strictly adhered to; otherwise, conflicts or lawsuits
can arise from the failure of HR procedures.

Support health and wellness: HR leaders must help promote employees’ health and
wellbeing. They can do this by encouraging employees to prioritize physical and mental
wellbeing and offering wellness programs to promote healthier habits and manage stress
levels. By creating an environment conducive to health, HR leaders can develop a culture of
wellbeing that makes employees happier in their work lives and fosters more engagement at
work.

HR can promote mental health by offering employees a safe space to voice their concerns and
a range of support services – from confidential hotlines, workshops, and educational
materials to flexible work arrangements, adjusted schedules and additional vacation time – in
addition to accommodating them for mental health challenges such as flexible working
arrangements or extra vacation days. This approach can reduce the stigma of mental health
issues while increasing employee productivity and workplace satisfaction.
Human Resources also serves an essential function by disseminating information to
employees, including new policies or updates that directly affect them. They conduct
employee surveys to gain feedback, identify improvement areas, or make necessary
adjustments.

Conclusion

HR can be essential in ensuring the company abides by all relevant laws and regulations, such
as keeping track of employee records that comply with labor regulations regarding working
hours and conditions. They may also review existing policies as needed to meet the
business’s needs.

HR can be an exciting, stimulating career choice with many personal and professional growth
opportunities. Influential HR professionals need the ability to work efficiently with people
while having all the skills required in their roles, such as active listening and empathy.
Furthermore, HR leaders need to maintain professionalism while offering employees an open
environment – this can be accomplished through mindfulness practice or being cognizant of
any biases within themselves – creating an inclusive work culture that meets everyone’s
needs.

Characteristics and Qualities of Hr Manager

Integrity: An essential quality of an HR manager is integrity. An HR manager must be
honest and ethical in all their dealings with employees, employers, and other stakeholders.
They must be able to maintain confidentiality and trust. Additionally, an HR manager must be
able to make difficult decisions that are in the company’s or organization’s best interests.
Ethics: One of the qualities of an HR manager is ethics. In the corporate realm, there are a lot
of different ethical considerations that need to be taken into account. As an HR manager, it is
your responsibility to determine that your company complies with all relevant laws and
regulations. Additionally, you need to ensure that your employees are treated fairly and
ethically. It can be challenging to strike a balance, but it is essential to maintain a successful
business.
Self-Discipline: Self-discipline is one of the essential qualities of an HR manager. It is the
ability to stay focused and organized under pressure and challenges. An HR manager who is
self-disciplined can maintain a high level of productivity, even when working under difficult
circumstances.
An HR manager must prioritize and adhere to a schedule. They must be able to complete
tasks promptly and meet deadlines. An HR manager who is self-disciplined can stay calm and
collected amid chaos. They can keep their emotions in check and make rational decisions.
Communication: Communicating effectively is one of the essential qualities of a successful
HR manager. HR managers must be able to communicate with employees at all levels of an
organization, as well as with external stakeholders such as government agencies and other
businesses. They must clearly articulate the organization’s policies and procedures and
explain them to employees in a comprehensive manner. Additionally, HR managers must be
able to listen carefully to employee concerns and feedback and take action accordingly.

Effective communication is critical for HR managers to build trust and credibility with
employees. Good communication also helps to create a positive work environment and foster
teamwork. Furthermore, HR managers need to handle difficult conversations calmly and
professionally to resolve conflict and maintain harmonious working relationships.
Empathy: According to the Harvard Business Review, empathy is one of the critical qualities
an HR manager can possess. Empathy allows HR managers to form all aspects of every issue
and better understand employees’ needs and concerns.
Empathy is also a significant quality in managing conflict. By empathizing with both sides,
HR managers are better equipped to find solutions that satisfy everyone involved. In addition,
when employees feel that their concerns are understood and valued, they are more likely to
trust and respect their HR manager.

Problem Solver: When it comes to managing a corporate environment, an HR manager

must be able to solve problems efficiently and effectively. Here are some qualities of a good
HR manager that can help them do just that:
They have excellent communication skills: A good HR manager must communicate clearly
and concisely with employees, management, and other stakeholders. They should also be able
to listen attentively and understand different points of view.

They are good at conflict resolution: A good HR manager knows how to resolve conflicts
quickly and efficiently. They should be able to mediate between parties, identify the
underlying cause of the problem, and come up with creative solutions that satisfy all parties
involved.
They are decisive: A good HR manager can make decisions quickly and confidently. They
should weigh all options carefully before deciding, but once they have decided, they should
stick to their decision and see it through.
They are adaptable: A good HR manager is flexible and adaptable to change. They should
be able to adjust their plans and strategies according to the company’s ever-changing needs.

Creative: The HR manager is responsible for the Creative department, which is responsible
for developing and implementing creative strategy across all channels. The department
includes Creative Directors, Art Directors, Copywriters, and Designers. The HR manager
leads and manages a team of highly creative individuals. HR managers have to manage the
budget and timelines for projects. They have to think outside the box and develop new and
innovative ideas.
Experienced: An experienced HR manager will have a deep understanding of the inner
workings of their company. They will know the company culture inside and out and be able
to manage and motivate employees effectively. They will also be well-versed in employment
law and be able to handle any disciplinary issues that may arise. An experienced HR manager
will be a true asset to any company.

Strategic Thinker: The HR manager must be a strategic thinker to be successful. They must
be able to see the big picture and develop long-term plans. They should think creatively and
come up with ingenious solutions to problems.
The HR manager must be able to think analytically and make decisions based on data. They
must understand complex issues and break them into manageable pieces. They must also be
able to identify trends and forecast future needs.
Technologically Updated: The ever-changing landscape of technology can be a difficult one
to keep up with, especially for those in HR. A good HR manager should always look for new
ways to update their systems and processes to make things run more smoothly.
Multi-Tasking: One of the essential qualities of an HR manager is the ability to multitask.
With the ever-evolving workforce landscape, HR managers must juggle multiple tasks
simultaneously. They need to be able to stay updated with the changes and trends in the labor
market while also managing employee relations, benefits, and payroll.
The ability to multitask is important for HR managers and anyone in a leadership position.
Leaders need to handle multiple tasks and projects simultaneously without dropping any
balls. They need to be organized and have a clear plan for how they will complete all their
tasks promptly.
Legal Knowledge: The legal side of human resources is also quite active; a good HR
manager must have a strong understanding of employment law. They should know how to
handle difficult situations such as termination, performance issues, and discrimination
complaints. Additionally, they should be familiar with employee rights and be able to guide
topics like leaves of absence and workers’ compensation.
Interpersonal Skills: Interpersonal skills are one of the integral qualities of HR managers.
They must build relationships with employees, resolve conflict, and manage difficult
conversations.
HR managers must be able to build relationships with employees. They need to understand
employee needs and concerns and find ways to address them. HR managers also need to be
able to resolve conflict. They must identify the root cause of conflicts and find solutions
satisfying all parties involved.
Negotiating Skills: To be a successful HR manager, it is essential to have strong negotiation
skills. The ability to negotiate effectively can mean the difference between getting the
resources you need to support your team and not being able to deliver what you promised.
Some key qualities that will make you a successful negotiator include:
 Being able to read people and understand their motivations
 Being able to build trust and rapport quickly
 Being able to stay calm under pressure
 Being persuasive without being pushy
If you can master these skills, you will be in a better position to get what you want from
negotiations, whether with your team, your boss, or other stakeholders.
Influencing Personality: An HR manager should have certain qualities to be successful.
Some of these qualities include being able to influence personality, being organized, being
able to multitask, and being able to handle difficult situations.
If an HR manager can influence personality, they can better motivate employees and get them
to buy into the company culture. Additionally, an influential personality can help an HR
manager build relationships with other departments within the company. It can result in
employees being more productive and happier with their work.

Good At Data Interpretation: An HR manager must be good at data interpretation to

manage the workforce effectively. They need to understand and make decisions based on data
such as employee performance, retention rates, and engagement levels.
This ability allows HR managers to identify issues and trends within the workforce and take
appropriate action to resolve them. It also allows them to develop strategies for improving
employee productivity and engagement.
Data interpretation requires both analytical and critical thinking skills. HR managers must
understand complex data sets, identify patterns and relationships, and draw conclusions. They
must also be able to evaluate information and make sound judgement calls critically.

Conclusion
In conclusion, the qualities that an HR manager must have been the ability to motivate, lead
and manage a team, good communication and organizational skills, and good problem-
solving skills. If you have these qualities, you can successfully manage a team of employees
and help them attain their full potential and reach the company’s goals.

Strategy

Strategy refers to the course of action which is required to achieve the objectives of an
organization and implement its goals. In other words, strategy is a means to achieve goals.

According to Schendel and Hatten, the definition of business strategies is “the basic goals
and objectives of the organization; the major plan of action chosen to reach its goals as well
as objectives”.

Features of Strategy: The following are some features of business strategies:

 strategies are long run-in nature as they help to understand the path towards the future
as well as its impact on present activities. However, in some cases, strategies may be
made for a shorter period.
 Strategy mainly defines the course of action of a business in general, which an
organization needs to follow in order to achieve its objectives.
 Another important component of strategy is that it is dynamic in nature, and it needs
to be changed or modified according to changing times and conditions.
 Strategy provides a proper combination of external and internal factors that can affect
the ability of an organization to perform activities towards well-established goals.
 Strategies are formulated mainly by top-level managers and directions are provided to
the middle and lower-level managers to frame sub-strategies.
 Strategy allows businesses to beat their competition by distributing scarce resources
efficiently across different regions, resulting in optimal utilization.
 Strategies are forward-looking because they are developed and implemented with the
goal of achieving the firm’s goals in the future.
Types of Strategy

 Corporate Level Strategy: Corporate-level strategies are generally defined by senior

management and include the long-term objectives as well as influence the business
units working under it.
 Business-Level Strategy: These are strategies which are framed at the business unit
level by a senior manager, which includes building a certain competitive advantage
for the firm.
 Functional Level Strategy: Functional strategy refers to strategies within a business
enterprise that mainly focus on certain functional areas like that of marketing, sales as
well as production.
 Operational Level Strategy: These are strategies that are formed in the operating
units of a company and are mainly developed by field-level managers. It mainly
focuses on creating implementable plans for acting on business strategies.

Strategic Human Resource Management

Strategic Human Resource Management aims to align the focus of HRM with business to
achieve objectives through the strategic deployment of a highly committed and capable
workforce, using a range of cultural, structural, and personnel techniques.
These techniques include hiring, promoting, and rewarding employees, building and
maintaining high-performance work cultures, and organizational design to add value and
achieve a competitive advantage.
Strategic HRM centers on creating a talent management framework that drives behavior and
culture to support an organization’s long-term business goals.
The concept of Strategic Human Resource Management was developed in the 1990s – mainly
through work by Storey, Schuler, Wright and McMahan, and Boxall and Purcell – and
popularized in the 2000s. This was triggered by Dave Ulrich’s challenge for the HR
profession. HR had become “often ineffective, incompetent, and costly; in a phrase, it is
value sapping.”

Today, Strategic HRM is an essential part of the HR function, particularly for large and
rapidly growing organizations. However, there is no specific strategy that guarantees success,
and Strategic HRM is constantly evolving. That’s why organizations must create their own
strategy that aligns with their specific context, culture, and objectives. Continuous monitoring
then allows them to build on and improve it.

Traditional HRM vs Strategic HRM

HR management was traditionally considered a task-oriented administrative function. It was

distanced from what business leadership was doing and primarily reactive. It met employees’
needs as they arose. However, it wasn’t in touch with where the company was headed and
didn’t anticipate what might be coming.

For example, traditional HRM would answer employee questions about HR policies, but it
wouldn’t create policies based on the company’s long-term goals and find ways to engage
employees with them.

With a strategic HRM plan, HR teams operate more proactively because they are integrated
with business strategies. They understand and center their pursuits on the company’s
objectives. This involves planning and taking action to ensure the organization has the
workforce it needs to achieve its goals.

For instance, instead of hiring based solely on immediate needs, HR will recruit people
whose talents and experience can also meet future demands. This is possible because HR is
part of the leadership team and is fully aware of what the company wants to accomplish in
both the short and long term.

Caitlin Weiser, Consultant at Red Clover HR, explains: “Aligning HRM with overall business
strategy is about understanding what employee behaviors are needed to support long-term
business goals. By identifying these behaviors, HR can make strategic process improvements,
create incentive programs, set KPIs, and provide learning and development opportunities to
drive results.”
Example: Nissan

A business goal to differentiate itself from competitors prompted Japanese auto manufacturer
Nissan Motor Corporation to foster a corporate culture that empowers employees to innovate
its manufacturing processes.

Nissan applies a continuous improvement framework called Kakushin. This philosophy

challenges assumptions about operating in a certain way and embraces brainstorming and
analysis to make changes and move ahead. Employees are encouraged to find ways to
continually improve methods for getting work done.

With the business objectives and the Kakushin method in mind, HR leaders can focus HR
practices where they need to be:

 Recruiting the right talent, and

 Building a secure workplace environment where employees feel entrusted to meet
challenges with autonomy and fresh ideas that drive achievement.

Importance of Strategic Human Resource Management (SHRM)

Since the last twenty years or so, there was an increasing fear of HR being secluded from
business goals and as a separate part of the organizations. There was an increasing need felt
across sectors of HR playing a vital role in improving productivity in organizations to achieve
a competitive edge. So, strategic HRM came into existence. The primary goal of strategic
human resource management is to solve business objectives or obstacles that may not occur
within the direct purview of HRM.

This has to be done through effective HRM itself. So, it is basically tuning of human resource
management (HRM) to suit business objectives. The other types of HRM are Hard HRM and
Soft HRM.

For strategic HRM, there must be effective cooperation between the top management and the
HR head. Some of the challenges faced in modern day HRM are as follows:

1. Cross cultural issues and interaction

2. Internationalization

3. Changing ownership due to increased M & A

4. Rapidly changing business environments

5. Technological advancements

Elements of Strategic Human Resource Management (SHRM)

The pillars for SHRM are:

a) Humans are not just resources but they are an asset to an organization, which should
provide a competitive edge to the organization.

b) It’s the people within the organization who actually implement such change.

c) Every change is achievable only through a proper planning followed by execution with
respect tpo the organizational needs and objectives.

d) The main aim of strategic HRM is to concentrate on the ways through which the firm can
take an edge over its competitors.

e) According to Hendry and Pettigrew, SHRM has four different meanings, mainly:

- Making use of planning.

- Designing and managing people via a coherent approach.

- Developing systems which are based on employment policy and workforce strategy.

- Bringing out coordination between HR activities and other policies into developing business
strategy.

- Considering people as resources and achieving competitive edge by making the best of
them.

Objectives of Strategic Human Resource Management (SHRM)

The main aim of strategic HRM is to address issues related to organizational culture,
structure, effectiveness, resource matching, and performance. It involves developing the
process capabilities as well as managing the human capital effectively. The approaches used
in strategic HRM can be categorized into 5 categories mainly:

1. Resource based Strategy: Addresses issues wherein the strategic capabilities of the firm
can be increased.
2. High Commitment Management: By enhancing the mutual commitment between the
managers and their employees.

3. High Involvement Management: Treating employees as their partners in the business.

4. High Performance Management: Improves the performance of the firm by focusing on

improving the productivity, growth and profitability rate of its people.

5. Achieving Strategic Fit: Integration of human capital and resources is necessary for
smooth and profitable operation of business.

Example of Strategic Human Resource Management (SHRM)

Infosys Chairman Mr. Narayan Murthy has emphasized on human capital as one of
Infosys’ critical factors for growth. Thus, there has been a strategic Human resource
dimension added to the organization in the form of ‘People managers’, whose function is to
look after the needs of employees. The company aims to treats its employees as assets rather
than just as resources. Nurturing and nourishing the resources ensures competitive advantage
for Infosys. Thus, a dedicated human resource department including people managers in
every group serves as a SHRM practice which fulfills the business objectives of the
organization.

Role of globalization in HR policy and practice

In the past two decades, globalization has become prominent because of rapid technological
advancements and increased interconnectedness worldwide. Its roots can be traced back to
the establishment of the gold standard in the 1800s. Moreover, post-World War II, countries
broke the trade barriers and started promoting free trade across countries, leading to the
establishment of global organizations.

Today, globalization has enabled most companies to tap into diverse markets and expand their
operations across borders and various sectors. One prominent sector that has witnessed
significant change due to globalization is Human Resource Management (HRM).

What Does Globalization in Human Resource Management Mean?

HRM is the practice of overseeing and managing the people who work within an
organization. It involves hiring, training, compensation, and ensuring a positive work
environment.

Globalization, on the other hand, refers to the process of increased interconnectedness and
integration among countries, economies, and cultures.

When this concept is applied to HRM, it means that organizations are expanding their
operations across borders, hiring talent from various parts of the world. Globalization in
HRM involves adapting HR practices to suit international hiring, such as:

 Managing a global workforce,

 Dealing with cultural differences,
 Adhering to diverse employment and labor laws.

Impact of Globalization on Human Resource Management

Globalization has significantly transformed HRM, impacting how organizations manage their
diverse workforce. Here are some of the significant impacts of globalization on HRM.

1. Opportunity for Innovation

A workforce containing diverse global perspectives creates an ecosystem where innovation

flourishes. As professionals from various cultural backgrounds work together, their unique
approaches converge, leading to creative breakthroughs.

This collaboration results in fresh ideas and novel solutions that a homogenous team might
need help with.

2. Enhanced Talent Pool

Globalization and HRM together help you reach talent pools beyond geographical
boundaries. You can hire professionals with varied educational backgrounds and skill sets.
This diversity ensures continuous improvement as employees learn from each other.

3. Complex Compliance

Staying abreast of ever-evolving international regulations is essential to avoid legal pitfalls

and maintain a reputable global presence. Adhering to different countries' labor laws, tax
regulations, and employment standards demands comprehensive expertise. Furthermore,
managing employee benefit packages and compensation structures across various
jurisdictions in international business can be a little tricky.

Challenges of Globalization in Human Resource Management

Here are the top challenges you might face due to globalization in HRM.

1. Virtual Team Management

Teams are spread across different destinations and time zones in a globalized workforce. This
poses a challenge in coordinating tasks and maintaining effective communication.

Furthermore, building trust and managing conflicts becomes harder when team members
don't interact face-to-face. The major challenge here lies in finding ways to ensure teamwork
and effective coordination while overcoming physical barriers.

2. Talent Retention and Engagement

Global companies also face the challenge of retaining top talent in an environment where
employees are exposed to various other opportunities worldwide. Especially when
employees’ work expectations and personal goals vary, maintaining a sense of belonging and
offering them growth opportunities can be difficult. This is why keeping employees engaged
and making them feel valued and motivated becomes crucial to prevent turnover.

3. Training and Development Adaptation

Globalization in HRM demands continuously improving skills and knowledge. However,

developing training and development programs for people belonging to different cultures and
backgrounds can be challenging. Moreover, standardizing content while ensuring its
relevance to local contexts requires careful planning.

4. Privacy and Security

With data being shared across borders, ensuring the privacy and security of sensitive
employee information can be complicated. The responsibility for managing this data lies with
the human resource department. In such cases, adhering to various data protection regulations
and safeguards against breaches is essential.
Balancing the need for information exchange with legal requirements poses another
significant challenge.

5. Global HR Strategy Alignment

Different regions may have varying labor laws, cultural norms, and business practices. Thus,
it is important for human resource professionals to create a unified, global human resources
strategy that complies with labor laws and aligns with the company's global goals can be
complex.

Advantages of Globalization in Human Resource Management

The positive impact of globalization on HRM can help your organization in the following
ways.

1. Cultural Exchange and Collaboration

Globalization in HRM facilitates cross-cultural collaboration within the workforce. HRM

benefits from this exchange of ideas, approaches, and best practices, promoting a passionate
work environment and driving creativity and adaptability.

2. Enhanced Learning and Development

A globally dispersed workforce exposes HRM to different learning and development

methodologies. Sharing best practices across regions promotes professional growth and
knowledge expansion.

Furthermore, employees benefit from exposure to different business practices and

perspectives, accelerating their career development.

3. Flexibility and Market Adaptation

Globalization propels HRM to adopt flexible workforce models like remote work and virtual
teams. This helps organizations to accommodate various time zones and market demands
while going beyond geographical boundaries.

This agility also enables organizations to respond swiftly to changing market conditions and
deliver timely solutions to customers worldwide.

4. Expanded Market Reach

Globalization in HRM facilitates access to new markets and customer segments, allowing
companies to learn more about their customers and then devise regional strategies to tap into
their requirements.

This helps them cater to customer preferences and cultural nuances, enhancing the
organization's competitive edge by tailoring products and services to specific regions.

5. Strategic Resource Allocation

Globalization empowers HRM to allocate resources based on needs across various locations.
This optimal distribution enhances operational efficiency, as teams are structured to
maximize productivity and expertise within each region.

Disadvantages of Globalization in Human Resource Management

Some of the adverse effects of globalization in human resource management can be.

1. Cultural Clashes and Misunderstandings

Due to globalization in HRM, people with distinct worldviews come together. Thus, friction
might arise due to different interpretations of actions and statements. Misunderstandings can
originate from differences in communication styles, values, norms, and expectations. These
clashes have the potential to disturb effective teamwork and the overall productivity of the
organization.

Ultimately, these clashes increase the complexity of integrating different cultural identities
into a single working unit. This shows that while diversity can be beneficial, it can also create
challenges that need careful management.

2. Lack of Face-to-Face Interaction

With the advent of virtual teams and remote work brought about by globalization in HRM,
there's a notable reduction in face-to-face interactions. The disadvantage of this reduced
personal connection lies in its potential to weaken the bonds that drive effective teamwork.

Face-to-face interactions offer chances for spontaneous exchanges that contribute to team
creativity and smooth communication. In their absence, there's a risk of communication
becoming more formal, which might create problems in the exchange of innovative ideas and
genuine collaboration.
3. Employee Burnout due to Time Zone Differences

International team members may work during irregular hours to accommodate time zone
differences, so their work-life balance is usually compromised. The prevalence of burnout in
such scenarios highlights the need for flexible work arrangements and thoughtful scheduling
strategies in a globalized HRM context.

4. Leadership Challenges

Developing leaders capable of effectively guiding diverse teams across various cultures
requires specialized training and understanding. Leadership gaps can emerge due to the
scarcity of cross-cultural competencies. Leaders must understand cultural differences and
build relationships and trust across geographical distances.

The lack of such skills can impede effective decision-making and conflict resolution. Thus,
it's necessary to understand that globalization calls for a proactive approach to leadership
development beyond traditional management skills.

5. Cultural Bias in Decision-Making

When individuals from various cultural backgrounds collaborate, specific perspectives may
be unintentionally favored. This can result in imbalanced outcomes that don't adequately
account for the diverse viewpoints. Cultural bias can limit creativity by sidelining
perspectives that may challenge the status quo.

Therefore, globalization in HRM requires conscious efforts to create an inclusive decision-

making environment where all cultural perspectives are valued and considered.

Question Bank

Write about HRM.

Explain the nature of HRM Explain the scope of HRM?

Explain the objectives of HRM?

Explain the significance/Importance of HRM?

Explain the process of HRM

Explain the functions of HRM?

Explain the managerial and operative functions of HRM?

Difference between Personnel management Vs. HRM

Explain the functions /responsibilities of HR manger?

Explain the role of a HR Manager?

Write a note on the characteristics and Qualities of HR Manager?

What is strategy? Explain strategic management approach in HRM?

Explain the role of globalization in HR policy and practice.

Write the difference between HRM and SHRM