UNIT-1

    Human resources may be defined as the total knowledge, skills, creative abilities, talents and
aptitudes of an organization’s workforce, as well as the values, attitudes, approaches and beliefs
of the individuals involved in the affairs of the organization.

HRM is Process of acquiring, training, appraising and compensating employees such that they
are motivated to achieve both the organisational and individual goals.

“HRM is the function performed in organizations that facilitates the most effective use of people
to achieve organizational and individual goals.” Ivancevich and Glueck.

“HRM is the function facilitating the most effective use of people to achieve both organizational
and individual goals” “HRM is that field of management which deals with planning,
organizing & controlling the functions of procuring, developing, maintaining and utilizing a
labor force such that organizational & individual goals are fulfilled”.

According to F. E. L. Brech, Human Resource Management is that part of management

progress which is primarily concerned with the human constituents of an organization.
Edison defines Human Resource Management as the science of human engineering.
According to Leon C. Megginson, the term human resource can be thought of as, “the total
knowledge, skill, creative abilities, talents and aptitudes of an Organization’s workforce, as well
as the values, attitudes and beliefs of the individuals involved.”
Nature of human resource management are:
Pervasive Force
Human Resource Management is an inherent part of an organization. It is pervasive in nature and
present in all enterprises at all levels of management. It is the responsibility of each manager to
select the right candidate under him and pay attention to the development and satisfaction of
each sub-ordinate.

People Oriented
Human Resource Management focuses on and values people at work both as individuals and
groups. It encourages people to develop their full potential and in return give the best to the
organization.

Action-Oriented
Human Resource Management does follow rules, records, and policies but it stresses the action.
The focus is on providing an effective and timely solution to employees for any problems,
tensions, or controversies faced by them.

Future-Oriented
To sustain and grow in this competitive environment organizations follow long term strategic
planning. Effective Human Resource Management prepares people for current as well as future
challenges, especially working in an environment characterized by dramatic changes.

Development Oriented
HRM continuously works towards the development of employees. There are various tools used
to make the employees reach their maximum potential. Training programs are held to help
employees enhance their skills and knowledge. Monetary and non-monetary reward structures
are tuned to motivate the employees.

Enhance Employee Relations

HRM helps to build a healthy relationship between the employees at various levels. It
encourages mentoring and counseling to help employees in times of need. It aims at creating a
culture in the organization that is conducive to learning and growth.

SCOPE OF HRM 

refers to all the activities that come under the banner of HRM. The activities are as follows

1. Human resources planning: – Human resource planning is a process by which the

company to identify the number of jobs vacant, whether the company has excess staff or
shortage of staff and to deal with this excess or shortage.
2. Job analysis design: – Another important area of HRM is job analysis. Job analysis
gives a detailed explanation about each and every job in the company. Based on this job
analysis the company prepares advertisements.

3. Recruitment and selection: – Based on information collected from job analysis the
company prepares advertisements and publishes them in the news papers. A number of
applications are received after the advertisement is published, interviews are conducted
and the right employee is selected thus recruitment and selection are yet another
important areas of HRM.

4. Orientation and induction: – Once the employees have been selected an induction or
orientation program is conducted. The employees are informed about the background of
the company. They are told about the organizational culture and values and work ethics
and introduce to the other employees.

5. Training and development: – Every employee goes under training program which helps
him to put up a better performance on the job. Training program is also conducted for
existing staff that have a lot of experience. This is called refresher training. Training and
development is one area were the company spends a huge amount.

6. Performance appraisal: – Once the employee has put in around 1 year of service,
performance appraisal is conducted i.e. the HR department checks the performance of the
employee. Based on these appraisal future promotions, incentives, increments in salary
are decided.

7. Compensation planning and remuneration: – There are various rules regarding

compensation and other benefits. It is the job of the HR department to look into
remuneration and compensation planning.

8. Motivation, welfare, health and safety: – Motivation becomes important to sustain the
number of employees in the company. It is the job of the HR department to look into the
different methods of motivation. Apart from this certain health and safety regulations
have to be followed for the benefits of the employees.
 9. Industrial relations: – Another important area of HRM is maintaining co-ordinal
relations with the union members. This will help the organization to prevent strikes
lockouts and ensure smooth working in the company.

Objectives of HRM
The main objectives of HRM are:

 To help the organization achieve its goals: HRM is the means to assist the organization
to achieve its goals. It ensures effective utilization of Human Resources which in turn results
in the efficient utilization of all the other organizational resources.

 To employ a skilled workforce and focus on their training and development: HRM
aims at employing the skills and abilities of the workforce efficiently. It generates maximum
development of Human Resources within the organization by offering opportunities for
growth to employees through training and development.

 To ensure employee job satisfaction and maintain a quality of work-life: HRM

focuses on fulfilling the personal objectives of the employees which helps in enhancing their
contribution to the organization. Their objective is to ensure respect for human beings by
providing various services and welfare facilities to the personnel.
 Societal Objective: HRM must ensure that there is compliance with the legal and ethical
standards of the society at each level and function of the organization. It implies that
organizations manage human resources in an ethical and socially responsible manner.
Functions of HRM
Functions of HRM

The functions performed by managers are common to all organizations. The function performed by the
resource management can broadly be classified into two categories, viz.
(1) Managerial functions, and
(2) Operative functions

(1) MANAGERIAL FUNCTIONS

(a) Planning
Planning is a predetermined course of actions. It is a process of determining the organizational goals and
formulation of policies and programmed for achieving them. Thus planning is future oriented concerned
with clearly charting out the desired direction of business activities in future. Forecasting is one of the
important elements in the planning process. Other functions of managers depend on planning function.
(b) Organizing
Organizing is a process by which the structure and allocation of jobs are determined. Thus organizing
involves giving each subordinate a specific task establishing departments, delegating authority to
subordinates, establishing channels of authority and communication, coordinating the work of
subordinates, and so on.
(c) Staffing
It is a process by which managers select, train, promote and retire their subordinates This involves
deciding what type of people should be hired, recruiting prospective employees, selecting employees,
setting performance standard, compensating employees, evaluating performance, counseling employees,
training and developing employees.
(d) Directing/Leading
Directing is the process of activating group efforts to achieve the desired goals. It includes activities like
getting subordinates to get the job done, maintaining morale motivating subordinates etc. for achieving
the goals of the organization.
(e) Controlling
It is the process of setting standards for performance, checking to see how actual performance compares
with these set standards, and taking corrective actions as needed.
(2) Operative Functions

The operative, also called, service functions are those which are relevant to specific department. These
functions vary from department to department depending on the nature of the department Viewed
from this standpoint, the operative functions of HRM relate to ensuring right people for right jobs at
right times.

HR Planning
Human Resource Planning is a process that identifies current and future human resource needs
for an organization to achieve its goals.

Job Analysis and Design

Job Analysis is the determination of the precise characteristics of a job through an in-depth and
detailed examination of the activities to be performed.

Job design allows job analysis. It involves designing the content of a job, it combines the tasks
into a job to be assigned to an individual and further fixes the duties and responsibilities to do the
job.

Recruitment and Selection

Recruitment is the process of searching the best-qualified candidate from within or outside the
organization in a cost-effective manner.

Orientation and Placement

Orientation is the process in which the new employees are introduced and made familiar to their
jobs, complex processes, coworkers, and organizations. Placement includes assigning tasks to
new employees and the promotion or transfer of present employees.

Training and Development

Training is the process of enhancing the knowledge and skill of an employee required for a
particular job.
Development is an ongoing and continuous process that aims at improving the personality and
attitude of employees.

Importance of HRM
Instrument for growth to an organization
The survival and growth of the organization depend largely on the competence and its effective
management. Human resource management makes workers efficient and motivated through
training, supervision, and inspiring leadership.

Liaison between the employee and employer

It tries to maintain the balance between the available jobs and the job seekers according to their
needs and organizational requirement.

Its significance can also be determined by the elimination of wastages and providing a healthy
and conducive environment for employee growth.

Professional field
Human Resource Management has moved to a specialist function. The realization of employee
goals is the sole responsibility, as a specialist function.
 Its focus has moved from employee management to employee development. The skills
development and individual capacity utilization are the challenges faced by human resource
managers in the current scenario.

HRD

The term Human Resource Development or HRD  refers to the development of people working in an
organization. It is a part of HRM; that aims at improving skills, knowledge, competencies, attitude and
behaviour of employees of the organization. The purpose of the HRD is to empower and strengthen the
abilities of the employees so that their performance will get better than before.
Human Resource Development involves providing such opportunities to the employees that will prove
beneficial in their all around development. Such opportunities include training & development, career
development, performance management, talent management, coaching & mentoring, key employee
identification, succession planning and so on. Nowadays, there are many organizations work for the
human resource development of employees from the day they join the enterprise, and the process
continues, until the end of their employment term.

Difference between HRM and HRD

[Link] BASIS FOR HRM HRD

COMPARISON

1 Human Resource Management refers to Human Resource Development means a

the application of principles of continuous development function that
Meaning
management to manage the people intends to improve the performance of
working in the organization. people working in the organization.

2 Subset of Human Resource

What is it? Management function.
Management.

3 Function Reactive Proactive

4 To improve the performance of the To develop the skills, knowledge and

Objective
employees. competency of employees.

5 Process Routine Ongoing

6 Dependency Independent It is a subsystem.

7 Concerned with People only Development of the entire organization.

SHRM

Strategic Human Resource Management, shortly known as SHRM is a function of management

which entails development of policies, programmes and practices related to human resources,
which are then aligned with business strategy, so as to achieve strategic objectives of the
organisation. Its primary purpose is to improve the performance of the business and maintain a
culture that encourages innovation and works continuously to gain competitive advantage.

The aim of SHRM is that companies must adjust their HR strategy within the periphery of
overall business objectives, thus ensuring that HR practices are in tune with the strategic
objectives of the organization. It lays down a clear corporate strategy and vision for future. A
major pro of strategic human resource management is that it ascertains and analyses external
opportunities and threats to the business organisation.

CHARACTERSTICS OF SHRM

1. Recognition of the outside Environment: Outside environment presents some

opportunities and threats to the organization in the form of-

 Laws

 Economic conditions

 Social and demographic change

 Domestic and international political forces

 Technology and so on.

Strategic human resource strategy explicitly recognizes the threats and opportunities in each area
and attempts to capitalize on the opportunities while minimizing or deflecting the effect of
threats.

2. The impact of Competition: The forces of competition in attracting, rewarding, and using

employees have a major effect on corporate human resource strategy. Forces play out in local, regional
and national labor markets. Labor market dynamics of wage rates, unemployment rates, working
conditions, benefits levels minimum wages legislation and competition reputation all have an impact on
and are affected by strategic human resource decisions.
 3. Long-Range Focus: A strategic human resource management should be long-range focus cause
this is not easy to change the strategic human resource policy.
4. Choice and Decision-making focus: In other words, the strategy has a problem solving or
problem preventing focus. Strategy concentrates on the question, “what should the organization do and
why?” this action orientation requires that decisions be made and carried out.
5. Consideration of all Personnel: A strategic approach to human resources is concerned with all
of the firm’s employees, not just its hourly or operational personnel. Traditionally, human resource
management focuses on hourly employees, with most clerical exempt employees also included.
6. Integration with the Corporate Strategy: Human resource strategy adopted by a firm should be
integrated with the firm’s corporate strategy.
The key idea behind overall strategic mgt is to coordinate all of the company’s resources, including
human resources; in such a way that everything a company does contribute to carrying out its strategy.
Synergy means the extra benefit or value realized when resources have been combined and coordinated
effectively. This concept often referred to as economies of scope, makes the combined whole of the
company make valuable than the sum of its parts. It is a true benefit of good strategic management of
resources.

[Link]. BASIS FOR

HRM
COMPARISON SHRM

1 Meaning Human resource managementSHRM is a managerial function which

(HRM) implies theimplies framing of HR strategies in such a
governance of manpower ofway to direct employees efforts towards the
the organization in agoals of organization.
thorough and structured
manner.

2 Nature Reactive Proactive

3 Responsibility lies Staff specialist Line manager

with

4 Approach Fragmented Integrated

5 Scope Concerned with employeeConcerned with internal and external

 relations relations

6 Time horizon Short term Long term

7 Basic factor Capital and products People and knowledge

8 Change Follows change Initiates change

9 Accountability Cost center Investment center

10 Control Stringent control overIt exhibits leniency.

employees

Linking HR Strategies with Business Strategies

When business owners and managers formulate business plans and strategies, they often leave
out an important component of these plans. Human resources staff are often not consulted nor
invited to participate in the planning process. When marketing, sales, manufacturing or finance
are asked to implement their strategies and tactics for the coming year, they may find themselves
short-handed, or worse, with people with the wrong aptitudes. Aligning HR with business
strategies makes sense and helps ensure the company can realize goals.
Factors affecting Business strategies:

Function: With HR at the planning table, HR can forecast how many people will be needed and
with what skills. HR can inventory the current workforce to see who can be promoted to new
positions, who should be trained and how and what recruitment and outsourcing strategies might
be necessary to fulfill the plan.

Significance: HR should take the lead in driving change management. Change is a given in
today's competitive world, and the company that manages change best will most likely best its
competitors. The HR staff should train the company workforce to figure out how to capitalize on
a changing business environment and train company leaders to embrace the opportunities change
can bring.

Potential: If employees are connected to company strategy and goals and are acknowledged for
high performance, the goals are more easily met. Engaged employees are vital to company
productivity. HR can be a key player at the strategy table if it develops performance management
goals based on company objectives.

Considerations: HR has a delicate balancing act to develop compensation strategies that balance
company finances with employee expectations. If compensation is too low, employees leave for
greener pastures. If it is too high, the company income statement can be adversely affected. HR
must be included in product development efforts and ensure the right staff is on hand for this
function, even if it means paying a premium in the short term for freelance or contract employees
with the right skills and experience for the tasks at hand.

Effects: HR departments typically track data on the success of recruitment efforts or how many
people received what kind of training. But this is not sufficient. The better metrics are those that
establish the long-term links of HR to company success. A more important metric might be how
well the company does at retaining key personnel, those who contribute most to the bottom line.

Why Link HR Strategy to the Organizational Strategy is important?

Organizational strategy is a plan for evolving a business over time. You might want your
company to be a leader in “green” technology in five years, or maybe you envision raising sales
by 20 percent during the next 24 months. Whatever your plans, you need employees to carry
them out and human resources leadership to prepare them for the task.

Profitability: Linking HR strategy to organizational strategy can be profitable. Using a

progressive strategy, HR can identify the skills and a business wants employees to have and
close existing skill gaps through aggressive recruiting and training.

Obstructions: High turnover, excessive absenteeism, low productivity and overall employee
dissatisfaction disrupt business operations. These obstructions not only raise operating costs --
hiring and retraining replacement staff is especially expensive for small businesses -- they also
derail organizational strategies. To raise productivity and retention, HR can recommend such
low-cost incentives as flexible work schedules, performance awards or money-saving discounts
from retailers.

Staff Buy-in: HR is the liaison between management and staff. It can influence employees’
attitudes and behaviors towards your company and gain their support for your strategic plan. The
HR strategy that’s focused on developing staff loyalty, for example, can give organizational
strategy the employee support needed to make company a leader in green technology or increase
product sales.

Workplace Mandates: When HR strategy is linked to organizational strategy, companies have

the benefit of HR’s expertise on workplace regulations and employment laws. HR is responsible
for keeping organizations in compliance with safety regulations, antidiscrimination laws and
other state and federal workplace requirements. When organizational strategy conflicts with
workplace mandates, business could be sued or fined.

Effective Training and Development: Organizations are affected by a huge range of external
and internal factors that together can change the nature of individual job roles or place new
demands on individuals skill sets. An HR strategy linked to the organizational strategy is better
placed to anticipate any such changes and therefore can put in place a targeted training and
development plan to help the organization more quickly adapt to new circumstances.

Improved Recruitment and Retention: Employees who feel better supported in their jobs tend
to be happier and more productive. Furthermore, organizations with a positive reputation in the
jobs market for taking care of its workforce face fewer barriers to effective recruitment. Taken
together, these factors are important elements in illustrating why HR strategy must link to
organizational strategy. With recruitment and retention being two key areas where monetary
value can be assigned, a more stable and better-trained workforce means improved operating
profits.

HR Drives Strategy: A mature approach to HR strategy places it at the center of understanding

an organization's overall capacity and capability. Having a clear concept of your employees and
their different skills can help you see where your organization has potential for development and
growth and help you structure your organization to take advantage of emerging opportunities.
Organizations that have reached this point in their development see HR as a key driver of
strategy and integral to their future success, rather than as a simple administrative function that
ensures everyone gets paid on time.
 Barriers to Strategic Human Resource Management

1. Short term mentality: Short-term mentality and focus on the current performance of

SFIRM is the first barrier. Every manager act, long-term focus, because the organization has
been established with long-terms objectives/focus.
2. Strategic inability: Very often SHRM does not think strategically and he cannot think it
to due in capability. This type of inability may arise for many reasons as lack of technical
knowledge, insufficient training and the like.
3. Lack of appreciation: Sometimes top managers do not recognize the activities of
strategic human resource management. So SHR manager does not get interested in doing any
innovative venture. A few appreciations may get them a substantial mental boost up.
4. Failure understands role: General managerial roles may not be fully understood by be
managers. This failure is due to lack of knowledge about the specialty of a degree of
responsibility. This failure may create distance between these managers.
5. Difficulty in quantifying outcomes: Many outcomes may not be quantified. But SHRM
tries to enjoy the contribution. This is not always possible. Participation, work etc. type function
cannot be quantified because of their intangibility.
6. Wong perception on human assets: Investment in human assets may be regarded as
high risk than that of technology and information. Though these technologies are run by the
human resources. This wrong perception may inhibit the progress.
7. Resistance: SHR Managers may be resisted because of the incentives for change that
might arise. The change implemented demand some incentives for efforts to execute the changed
program. If these incentives are not given reasonable, they may create barriers SHRM.

Managing HR after Merger and Acquisition

Merger and acquisitions are often made as part of a company’s growth strategy.

Merger: Merger refers to combining of two companies where one new company will continue to
exist. Merger is combining of two or more companies, generally by offering the stockholders of
one company securities in the acquiring company in exchange for the surrender of their stock. It
can also be defined as an arrangement whereby the assets of two or more companies become
vested in or under the control of one company.
Acquisition: Acquisition refers to buying of assets of one company from another company. A
action in which a company buys most, if not all, of the target company’s ownership stakes in
order to assume control of the target firm. Acquisition is purchase by one company of controlling
the share capital of an existing company.

Reasons for Mergers & Acquisition: Every merger and acquisition has its own unique reasons
based on the organization goals. Here is a few of them:

 Synergy

 Acquisition of technology, assets or talent

 Increasing capabilities & sharing expertise

 Increased market share

 Diversification of products and services

Stages of Merger & Acquisition:

1. Premerger and Acquisition- Based on growth strategy acquirer searches for an appropriate
partner to assess potential targets and develops a plan for execution.

2. Due diligence: Due diligence refers to the investigation made by a buyer to gather all relevant
facts and information that can influence decision to enter into a transaction or not. The acquirer
does thorough research of the credentials of the company, its market valuation, status of accounts
receivables & payables etc.

[Link]: The acquirer creates a comprehensive plan for integrating the two companies.
This happens either at the time of or completion of due diligence.

[Link]-merger & acquisition: This is the final stage and most crucial part of a merger &
acquisition. It can take months or sometimes even years based on the organization size,
geographical locations and the complexity in the agreement.

HR Role in Merger & Acquisition: Success of merger and acquisitions depends on the people
who drive the business, their ability to drive, lead, and formulate strategy, execution and
implementation. It is very important to involve HR professionals in merger & acquisition as it
involves people and has an impact on key people issues. HR professionals play an active role in
the change process by offering their interventions to help ensure a successful merger and
acquisition.

HR plays a vital role in-

 Employees coping up with change and culture

 Organizational hierarchy structure

 Maintaining the productivity by placing of right people at right place

 Alignment of compensation, benefits and welfare schemes

 Job security

 Relocation

 Compliance of local labour laws

 Employee communication
 Taking care of personal records

Best practices to be followed by HR during and after merger & acquisition:

 Identify leaders from both the companies for effective implementation,

 Transition and communication of the same to employees.

 Train managers on the nature of change

 Explain new roles to the people

 Orientation programs on policies and procedures

 Orientation programs on performance management, compensation, benefits and welfare

schemes
 Identify the skills of people and mapping them appropriately
 Town halls & Team building activities
Basic HRM practices such as recruitment, selection, training, etc. affect the performance and
stability of an organization. Thus these practices have the ability to influence employee behavior
and create values that develop organizational culture. Since the behavior change refers to how
one acts or conducts oneself, if HR practices could positively affect the behavior, developing
positive thinking about Organizational initiatives towards the employees can help in creating
value for the strategies and would result in positive results for the business.
Post Merger HR and Cultural Issue

HR Role in Merger & Acquisition: Success of merger and acquisitions depends on the people
who drive the business, their ability to drive, lead, and formulate strategy, execution and
implementation. It is very important to involve HR professionals in merger & acquisition as it
involves people and has an impact on key people issues. HR professionals play an active role in
the change process by offering their interventions to help ensure a successful merger and
acquisition.

Technology & HR and changing roles of HR due to technology

HR technology, also known as HR tech, has developed rapidly in recent years, with large
employers around the world widely adopting core HR technology systems from enterprise
software companies such as Oracle and SAP, as well as specialized HR tech vendors. Many of
these employers are entering a second generation of HR technology by migrating from their
own-premises systems to new cloud platforms, including SaaS. Meanwhile, small and midsized
employers are also moving in large numbers to digitize their human resource functions,
commonly turning to SaaS platforms or cloud-based HR technology outsourcing vendors.
HCM
Human capital management (HCM) is a term for a variety of business functions that treat
employees as assets that can be managed objectively just as companies view and manage other
assets, such as money and capital equipment.
HCM is usually automated with integrated software that handles together employee records in
core HR and talent management systems. HCM systems can include subsystems for recruitment,
performance, learning and compensation management, succession planning and compliance.
Many HR technology vendors also specialize in dedicated systems for specific aspects of HCM
such as talent acquisition. Eg- Electronic job boards or marketplaces in which prospective
employees and employers find each other.
HCM vs. HRIS and HRMS
Core HR technology systems have long been marketed under the labels HRIS (human resources
information system) and HRMS (human resource management system), but HCM has begun to
displace both terms in recent years
Although there are few differentiators among the three labels, HRIS tend to provide technology
for storing employee data and automating core HR functions while HRMS vendors add HCM
feature, including talent management. 
Payroll
While some HR technology vendors specialize in payroll, many HCM systems also incorporate
the function of paying and tracking employees’ wages and salaries and withholding taxes and
other deductions.
Also, cloud-based HR technology outsourcing vendors provide payroll services as a key
component of a suite of digital HR offerings or as a standalone service, particularly for SMBs.
A drawback with HR technology payroll providers is administering wages and salaries and tax
withholding across multiple laws of states and countries, and in different countries with unique
governmental requirements.
Some employers use time and attendance software to track the hours that employees spend on
the job and keep records of wages and salaries paid.
Travel and expense management
HR departments also use travel and expense software to provide travel services to employees,
record related expenses, pay providers and reimburse the employee through a link to the payroll
service. 
Some organizations use expense report software to provide managers with a clear picture of the
organization’s spending through automated analytics and reporting.
Mobile expense management tools provide usage and cost information about the mobile devices
and services the organization provides to employees, and which are often administered by HR.

Talent management
Talent management is the process of recruiting, developing, evaluating and compensating
employees. It is often managed in separate applications or in talent management software that
consist of integrated modules for recruitment and onboarding, learning and development,
performance management, compensation management, and succession planning.
HR technology vendors have developed various forms of applications and SaaS platforms to
recruit job candidates, evaluate candidates pre-interview and track them during the hiring cycle.
Closely related to talent management is talent acquisition, the strategic process of finding and
hiring the right employees to help achieve an organization’s goals. As employers have taken
workers as assets, acquiring employees has become increasingly important, particularly in
competitive markets such as the technology industry itself.
Some popular talent management and acquisition technologies include:
 Applicant tracking system (ATS) used to post job openings on a corporate website or job
board, screen resumes, and generate interview requests to potential candidates by e-mail.
Other features may include automated resume ranking, pre-screening questions and
response tracking, and multilingual capabilities.
 Candidate relationship management, which allows recruiters to maintain a pool of passive
candidates that can be brought in for consideration on short notice.

Employee referral software that allows HR to collect recommendations from current employees
about potential and current candidates.
 Employee assessment software that helps an organization decide whether a job candidate
is suited for an open position. While some assessments assess a candidate’s cultural fit
with the company or their personality traits, others focus on skills or critical knowledge.

Performance management
As employers have also started monitoring employees’ job performance continuously instead of
with the traditional annual job review.
Both performance management modules within HCM systems and separate performance
management platforms also sometimes offer interactive features that enable employee feedback
in a process called continuous performance management.
Workforce analytics uses individual performance management and skills data to optimize the
allocation and development of human capital and identify the need for new departments and
positions.
Employee engagement
One tool used increasingly in performance management is employee engagement HR
technology.
Employee engagement platforms and apps use a variety of approaches to try to keep workers
interested in and enthusiastic about their jobs.
Among these are mobile apps with social media-like posting and commenting capabilities,
communications platforms that allow employers to disseminate information and workers to
respond, and gamification techniques that seek to motivate employees by making apps
entertaining.
Other engagement strategies include sophisticated employee recognition programs, app-based
enterprise-wide contest platforms and software to coordinate volunteer civic projects.
Benefits administration
HR technology for benefits administration began to become digitized by putting benefits
information online, but also by enabling employees to engage with benefits choices more easily.
Corporate wellness and well-being have become central to many employers’ benefits programs,
both online, on-premises and app-based, and using technology in conjunction with human
wellness coaches.
Many HR technology vendors are selling specialized software systems that incentivize workers
for participating in health-oriented wellness programs, and sometimes use wearable tracking
devices to measure activity. Some make a distinction between wellness and well-being, and
corporate well-being has come to mean a combination of engagement, health-oriented wellness,
“financial well-being” for employees and overall corporate morale.
In HR technology benefits administration there is the emergence of vendors that optimize health
insurance benefits by applying analytics to claims data and tailoring benefits packages for
individual workers.
Learning
Corporate training and education programs are migrating to interactive online platforms created
by HR technology vendors.
Changing roles of HR due to technology
Easier Recruiting
The recruiting process is tiring, time-consuming, and costly. But, Artificial Intelligence (AI) has
made this process less extensive.
Companies have automated screeners that detect skills on a candidate’s resume. This has made
hiring decisions extremely easy in the early stages of recruiting. The people in the HR
department no longer need to go through many emails and sort through them. They can simply
use the screeners to sort them out within seconds.
It is only the last stage of the HR process that requires human decision-making abilities. It is
assumed that companies and businesses that rely on tools to help with their recruiting process are
more successful in the future.
Data Analysis of Employee Performance
Analyzing employee performance was based on personal assessments and standards. But
technology makes it easier to gather and break down data on employees to get an overall
performance. Which tasks do they perform best? Do they meet all the goals from last year’s
performance appraisal? If they fell short, was it by 12 percent, 50 percent or 75 percent?
Software programs can even take over much of the work in evaluating employees.
Security Practices
Securing employee records used to mean locking a file cabinet. Best HR practices have to
include security for the digital data. Some security is more an IT matter, such as a good firewall.
HR needs to have good policies in place, though, governing who can access confidential data,
both hard copy and in electronic form.
Increasing Efficiency
Technology is the best way to increase efficiency. The latest tools and software’s help to create
harmony within a company. The data is recorded more systematically and is readily available if
one needs it. Moreover, the HR time which was too busy in administrative tasks earlier can now
invest their time on issues that require more attention.
The HR no longer has to struggle through piles of papers, messages can simply be drafted using
online tools. It has given the human resources a chance to be more organized and accurate. This
has a positive impact on the morale of the employees..
Ease of Communication
With email, text and messaging apps it’s easier than ever for HR staff to stay in touch with the
rest of the company. If a manager wants to share a new schedule with a project team, one email
with an attachment or a conversation can share the word with a dozen people at once.
Information in a two-page email may be better off delivered to the group than face to face.

Relationship of TQM and HRM: The Strategic Perspective

TQM pioneered by Edward Deming, is a broad-based systematic approach for achieving high
levels of quality. Many leading companies such as Motorola, Cadillac, and Xerox, whose
strategies require them to survive against the pressures of world-class competition,
have implemented TQM.

In strategic context, TQM is probably most accurately categorized as a tactic for carrying out
strategies requiring high level of product or service quality. Essentially TQM pulls together a
number of well-known management principles into a coherent and systematic framework.
Through the systematic interaction of these principles, TQM has the potential to lead to
increased quality.

TQM principles emphasize:

 Articulation of strategic vision

 Objective and accurate measurements
 Benchmarking
 Widespread employee empowerment and team building
 Striving for continuous improvement
 Emphasis on a systems view of quality that conceptualize quality-related activities as
being highly interdependent
 Leadership committed to quality
 Great emphasis on customer satisfaction

A TQM program has the potential to increase the importance of the human resource management
function. Human resource management plays a major role in providing more systematic training,
facilitating changes that empower employees, instituting team-based reward systems, and
communicating to workers their role in quality.

David Bowen and Edward Lawler have described the relationship between TQM and Human
Resource Management as follows:

The importance of the HR side of quality equation provides HR department with golden
opportunity. Quality can be the “business issue” that truly brings senior managers and HR
executives together to move from just HRM to strategic HRM. A major role in the quality
improvement effort puts HR in a position to contribute directly and visibly to the bottom-line, to
add value to the company’s products and services in the same way that other functions, such as
sales, accounting, and production, add value.

Before the human resource function can make full contribution to TQM efforts, high quality
must be assured within the function itself.  Benchmarking provides a useful means of both
evaluating the quality of human resource programs, activities and impact as well as a means of
identifying areas in which resource should be concentrated.

How TQM is integrated with HRM:

Designing High Performance work Teams: For achieving this, organizations need to
concentrate on work design. Job enlargement, job rotation and job enrichment which refers to
organize formal and informal work units, reduced fragmentation of jobs, individual workers
learn several tasks and workers are given more authority, responsibility and autonomy.

Employee Involvement: Any activity by which employees participate in work-related decisions

and improvement activities with the objectives of tapping the creative energies of all employees
and improving their motivation. Activities includes sharing of information, providing input on
work related issues, making suggestions and self directed responsibilities.

Suggestion systems: Easiest way to involve employees on an individual basis. An employee

suggestion system is a management tool for the submission, evaluation and implementation of an
employee’s idea to save cost, increase quality or improve other elements of work such as safety.

Empowerment: Giving people authority to make decisions based on what they feel is right,
have control over their work, take risks and learn from mistakes.

Training & Education: Companies spend heavily in training and education. Employees need to
understand the goal of customer satisfaction to be given the training and responsibility to achieve
this goal and to feel that they do indeed make a difference.

Team-work and Co-operation: A team is a small number of people with complementary skills,
who are committed to a common purpose, set of performance goals and an approach for which
they hold themselves mutually accountable.

Following teams can be encouraged in an organization to achieve TQ.

a. Quality Circles
b. Problem Solving Teams
c. Management teams
d. Work teams
e. Project teams
f. Virtual teams

Compensation and Recognition: It refers to all aspect of pay & reward, including promotions,
bonuses and recognition, either monetary or non-monetary and individual or group.

Health, Safety and Employee Support Services: All employees are key stakeholders of any
organization, their health; safety and well-being are important factors in the work environment.
They can provide personal & career counseling, career development and employability services,
recreational & cultural activities, special leave for non-work related responsibility or community
services and etc.
Recruitment: Meeting and exceeding customer expectations begins with hiring the right people
whose skills and attitudes will support and enhance the organizations objectives.

a. Ability to remain calm under stressful conditions.

b. Optimism, initiative & a people-orientation

c. The ability to listen well

d. An orientation towards analysis and prevention

e. The ability to solve problems.

Performance Appraisal: Performance Appraisals are most effective when they are based on the
objectives of the work teams that support the organization. A 360 degree feedback approach has
to be implemented for the employees so that performance management can be effective.