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Session Resources For Chapter 01: Human Resource Management (HRM) : Meaning, Importance
Session Resources For Chapter 01: Human Resource Management (HRM) : Meaning, Importance
Session Resources for Chapter 01: Human Resource Management (HRM): Meaning,
Importance
Chapter Introduction
Most managers manage Human Resource (HR), whether their formal designations reflect
that or not. In many companies, senior managers are rotated across departments or
divisions. So, a manager with qualifications in the area of Finance or Engineering may
also come to head the Human Resource Management (HRM) department. In small
organizations, there may not be a separate HRM department, yet there would be persons
performing HRM functions. In short, management of human resources is a required skill
for managers across organizations, whether they have formal degrees in the area, or not.
Through this course, we will be introducing HRM for current or aspiring professionals
whose primary training was in some other fields - in short, this is a course in HRM for
people with Non-HRM backgrounds. We invite you to participate in our discussion group
to narrate what kind of organization you represent and how you are connected with HRM
function and its processes. Or, if you are fresh graduate from a field where you haven’t
come across HRM before, how you became interested in this subject. For now, we would
discuss the meaning and nature of HRM, which is the primary objective of this session.
Objectives of Session 1
The objective of the session Human Resource Management (HRM): Meaning,
Importance’ are:
● Discuss the meaning of HRM
● Introduce the functions of the HR Manager
● Discuss the current trends in the role of a Human Resource Manager.
● Present the concepts and techniques required to be understood by non-HR
managers
● Discuss why HRM is essential for non-HR managers
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
Chapter Summary
According to Edwin B. Flippo (2007), Human Resource Management is- “the planning,
organization, directing and controlling of the procurement, development, compensation,
integration, maintenance and reproduction of human resources to the end that individual,
organizational and societal objectives are accomplished.” Dessler and Varkkey (2011)
explained, an organisation consists of people with formally assigned roles who work
together to achieve the organisation’s goals. A manager is a person responsible for
accomplishing these goals by managing the efforts of the organisation’s people. HRM
can be understood as a function involving acquisition, maintenance, and development of
human resources, compensating and rewarding them, managing relations with them
while they are with the organization, and managing their exit.
Human resource acquisition process has focused on filling open positions in the
organization, while the talent acquisition aims at building talent pools for future hiring
needs as elaborated by Dessler, G., & Biju, V. (2011). Compensation includes a person’s
base pay, but in many organizations, the salary of an employee is a multi-component
package in which perquisites and allowances are added as a percentage of base pay.
Depending on the employee’s responsibilities and the conditions of the job, expenses
incurred may also be reimbursed.
Training is the process of refining and enhancing the skills and capability of an employee
so as to improve current and future job performance. While the process in an integral part
of Human Resource Management, a lot of times even Non-HR Managers find themselves
imparting training or helping in the skill development of fellow employees.
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
The term Labour Relations, also known as Industrial Relations, refers to the system in
which workers and their representatives, employees, employers and the government
interact to set the ground rules for governance of fair and amicable work relationships.
There are five major functions of management: Planning, Organizing, Staffing, Leading,
and Controlling. In the modern era, managers face new and diverse challenges every
day. These include strategic issues, and improving performance. Managers also end up
making some mistakes even though they may be having the best of intentions. Non-HR
managers should be aware of them so that they can avoid those mistakes.
Chapter Glossary
Management the process of planning, organizing, directing, and controlling all the
activities and functions within an organization so that its goals are achieved.
Authority - The right to make decisions direct others’ work and give orders.
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
Talent Management- The goal oriented and integrated process of planning, recruiting,
developing, managing, and compensating employees.
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
Additional Reading
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Human Resource Management (HRM): Meaning, Importance
On the job Learning and Development programmes can contribute to the growth of
employees in equal measure. Whilst ‘training’ focuses on conducting activities that
develop employees for their current jobs, ‘development’ is preparing employees for future
roles and responsibilities within the organization. The companies can enable this by
building out programs that offer wide exposure, both in terms of company vision and
values. A comprehensive induction process for new entrants can expose them to the
company’s ethos, systems, and processes of thinking, as well as delivery mechanisms.
Furthermore, mentorship at both institutional and individual levels can serve as a key
strategy for evolving a knowledge-based practice. Such programmes not only allow for
cross-pollination of ideas but also maintain and strengthen the ‘collective sense’.
Additionally, a workplace culture, offering equal opportunities, that stands out and attracts
talent from all over the world is the need of the hour. When employees get equal
opportunities to showcase their talent, they feel self-motivated in the workplace and prove
to be highly productive for the organization. Employee Benefits are also an opportunity to
put the company’s values into practice and help to expand their support towards all
employees. Furthermore, recognizing the personal definitions of well-being, work-life
balance and family care, form an integral part of any policy formation. Ensuring safety for
women working long hours, flexibility in working arrangements for new mothers, extended
maternity and paternity leaves, enabling grocery deliveries, day care services, work from
home options and bring your child to work days are some of the ways that organizations
can help employees to uphold their familial and societal commitments and obligations.
Certain profuse benefits such as financial assistance towards certain housing benefits
can help achieve the quintessential Indian dream of owning one’s own home can go a
long way in creating a supportive workplace culture.
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
India is an incredibly diverse country, and businesses today should celebrate and thrive
on the region’s high level of cultural breadth to provide workplaces that are progressive,
supportive and conducive for all. Organizations today need to be proactive in working
towards breaking existing barriers and ensuring an equitable working environment for all
employees. The only way that the world’s perception can be changed is by introducing
unbiased positions with pay parity across all levels in an organization. There is a huge
responsibility on the shoulders of policymakers to act on gender positivity and bring
reforms. The overall gender perspective has to be transformed in order to enhance
collaboration, talent acquisition, development, and goodwill. Nevertheless, by defying the
stereotypical approach and creating a conducive work culture that promotes gender
positivity and attracts talented professionals, can lead to progressive outcomes and add
to the overall performance of a company.
Creating a ‘people first’ office culture takes unconditional and ongoing effort from all levels
within the organization. Whilst, no one individual is responsible for creating an inclusive
culture, the leadership sets the tone for the company. An inclusive and progressive work
policy adapted at all levels of the hierarchy ensures the outstanding performance of the
entire workforce; as opposed to a biased workplace that is likely to remain outdated with
less diversity in ideation.
(Source:http://bwpeople.businessworld.in/article/Progressive-Human-Resource-
Development-Policies/22-04-2019-169589/#)
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Human Resource Management (HRM): Meaning, Importance
human resource manager fall into three major areas: staffing, employee compensation
and benefits, and defining/designing work. Essentially, the purpose of HRM is to
maximize the productivity of an organization by optimizing the effectiveness of its
employees. This mandate is unlikely to change in any fundamental way, despite the ever-
increasing pace of change in the business world. As Edward L. Gubman observed in the
Journal of Business Strategy, "the basic mission of human resources will always be to
acquire, develop, and retain talent; align the workforce with the business; and be an
excellent contributor to the business. Those three challenges will never change."
Until fairly recently, an organization's human resources department was often consigned
to lower rungs of the corporate hierarchy, despite the fact that its mandate is to replenish
and nourish what is often cited-;legitimately-;as an organization's greatest resource, it's
workforce. But in recent years recognition of the importance of human resources
management to a company's overall health has grown dramatically. This recognition of
the importance of HRM extends to small businesses, for while they do not generally have
the same volume of human resources requirements as do larger organizations, they too
faced personnel management issues that can have a decisive impact on business health.
As Irving Burstiner commented in The Small Business Handbook, "Hiring the right people-
;and training them well-;can often mean the difference between scratching out the barest
of livelihoods and steady business growth'¦. Personnel problems do not discriminate
between small and big business. You find them in all businesses, regardless of size."
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Human Resource Management (HRM): Meaning, Importance
Human resource management functions are ideally positioned near the theoretic center
of the organization, with access to all areas of the business. Since the HRM department
or manager is charged with managing the productivity and development of workers at all
levels, human resource personnel should have access to-;and the support of-;key
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
decision makers. In addition, the HRM department should be situated in such a way that
it is able to communicate effectively with all areas of the company.
HRM structures vary widely from business to business, shaped by the type, size, and
governing philosophies of the organization that they serve. But most organizations
organize HRM functions around the clusters of people to be helped-;they conduct
recruiting, administrative, and other duties in a central location. Different employee
development groups for each department are necessary to train and develop employees
in specialized areas, such as sales, engineering, marketing, or executive education. In
contrast, some HRM departments are completely independent and are organized purely
by function. The same training department, for example, serves all divisions of the
organization.
In recent years, however, observers have cited a decided trend toward fundamental
reassessments of human resources structures and positions. "A cascade of changing
business conditions, changing organizational structures, and changing leadership has
been forcing human resource departments to alter their perspectives on their role and
function almost overnight," wrote John Johnston in Business Quarterly. "Previously,
companies structured themselves on a centralized and compartmentalized basis-;head
office, marketing, manufacturing, shipping, etc. They now seek to decentralize and to
integrate their operations, developing cross-functional teams'¦. Today, senior
management expects HR to move beyond its traditional, compartmentalized 'bunker'
approach to a more integrated, decentralized support function." Given this change in
expectations, Johnston noted that "an increasingly common trend in human resources is
to decentralize the HR function and make it accountable to specific line management.
This increases the likelihood that HR is viewed and included as an integral part of the
business process, similar to its marketing, finance, and operations counterparts.
However, HR will retain a centralized functional relationship in areas where specialized
expertise is truly required," such as compensation and recruitment responsibilities.
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
The primary responsibilities associated with human resource management include: job
analysis and staffing, organization and utilization of workforce, measurement and
appraisal of workforce performance, implementation of reward systems for employees,
professional development of workers, and maintenance of workforce.
Job analysis consists of determining-;often with the help of other company areas-;the
nature and responsibilities of various employment positions. This can encompass
determination of the skills and experiences necessary to adequately perform in a position,
identification of job and industry trends, and anticipation of future employment levels and
skill requirements. "Job analysis is the cornerstone of HRM practice because it provides
valid information about jobs that is used to hire and promote people, establish wages,
determine training needs, and make other important HRM decisions," stated Thomas S.
Bateman and Carl P. Zeithaml in Management: Function and Strategy. Staffing,
meanwhile, is the actual process of managing the flow of personnel into, within (through
transfers and promotions), and out of an organization. Once the recruiting part of the
staffing process has been completed, selection is accomplished through job postings,
interviews, reference checks, testing, and other tools.
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Human Resource Management (HRM): Meaning, Importance
Human resource maintenance activities related to safety and health usually entail
compliance with federal laws that protect employees from hazards in the workplace.
These regulations are handed down from several federal agencies, including the
Occupational Safety and Health Administration (OSHA) and the Environmental Protection
Agency (EPA), and various state agencies, which implement laws in the realms of
worker's compensation, employee protection, and other areas. Maintenance tasks related
to worker-management relations primarily entail: working with labor unions; handling
grievances related to misconduct, such as theft or sexual harassment; and devising
communication systems to foster cooperation and a shared sense of mission among
employees.
Reward systems are typically managed by HR areas as well. This aspect of human
resource management is very important, for it is the mechanism by which organizations
provide their workers with rewards for past achievements and incentives for high
performance in the future. It is also the mechanism by which organizations address
problems within their work force, through institution of disciplinary measures. Aligning the
workforce with company goals, stated Gubman, "requires offering workers an
employment relationship that motivates them to take ownership of the business plan."
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
"After getting the right talent into the organization," wrote Gubman, "the second traditional
challenge to human resources is to align the workforce with the business-;to constantly
build the capacity of the workforce to execute the business plan." This is done through
performance appraisals, training, and other activities. In the realm of performance
appraisal, HRM professionals must devise uniform appraisal standards, develop review
techniques, train managers to administer the appraisals, and then evaluate and follow up
on the effectiveness of performance reviews. They must also tie the appraisal process
into compensation and incentive strategies, and work to ensure that federal regulations
are observed.
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Human Resource Management (HRM): Meaning, Importance
Changes in organizational structure have also influenced the changing face of human
resource management. Continued erosion in manufacturing industries in the United
States and other nations, coupled with the rise in service industries in those countries,
have changed the workplace, as has the decline in union representation in many
industries (these two trends, in fact, are commonly viewed as interrelated). In addition,
organizational philosophies have undergone change. Many companies have scrapped or
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
A third change factor has been accelerating market globalization. This phenomenon has
served to increase competition for both customers and jobs. The latter development
enabled some businesses to demand higher performances from their employees while
holding the line on compensation. Other factors that have changed the nature of HRM in
recent years include new management and operational theories like Total Quality
Management (TQM), rapidly changing demographics, and changes in health insurance
and federal and state employment legislation.
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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Human Resource Management (HRM): Meaning, Importance
Before hiring a new employee, the small business owner should weigh several
considerations. The first step the small business owner should take when pondering an
expansion of employee payroll is to honestly assess the status of the organization itself.
Are current employees being utilized appropriately? Are current production methods
effective? Can the needs of the business be met through an arrangement with an outside
contractor or some other means? Are you, as the owner, spending your time
appropriately? As Rossiter noted, "any personnel change should be considered an
opportunity for rethinking your organizational structure."
Small businesses also need to match the talents of prospective employees with the
company's needs. Efforts to manage this can be accomplished in a much more effective
fashion if the small business owner devotes energy to defining the job and actively taking
part in the recruitment process. But the human resource management task does not end
with the creation of a detailed job description and the selection of a suitable employee.
Indeed, the hiring process marks the beginning of HRM for the small business owner.
Small business consultants strongly urge even the most modest of business enterprises
to implement and document policies regarding human resource issues. "Few small
enterprises can afford even a fledgling personnel department during the first few years of
business operation," acknowledged Burstiner. "Nevertheless, a large mass of personnel
forms and data generally accumulates rather rapidly from the very beginning. To hold
problems to a minimum, specific personnel policies should be established as early as
possible. These become useful guides in all areas: recruitment and selection,
compensation plan and employee benefits, training, promotions and terminations, and
the like." Depending on the nature of the business enterprise (and the owner's own
comfort zone), the owner can even involve his employees in this endeavor. In any case,
a carefully considered employee handbook or personnel manual can be an invaluable
tool in ensuring that the small business owner and his or her employees are on the same
page. Moreover, a written record can lend a small business some protection in the event
that its management or operating procedures are questioned in the legal arena.
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Human Resource Management (HRM): Meaning, Importance
Some small business owners also need to consider training and other development needs
in managing their enterprise's employees. The need for such educational supplements
can range dramatically. A bakery owner, for instance, may not need to devote much of
his resources to employee training, but a firm that provides electrical wiring services to
commercial clients may need to implement a system of continuing education for its
workers in order to remain viable.
Finally, the small business owner needs to establish and maintain a productive working
atmosphere for his or her work force. Employees are far more likely to be productive
assets to your company if they feel that they are treated fairly. The small business owner
who clearly communicates personal expectations and company goals, provides adequate
compensation, offers meaningful opportunities for career advancement, anticipates
workforce training and developmental needs, and provides meaningful feedback to his or
her employees is far more likely to be successful than the owner who is neglectful in any
of these areas.
(Source: https://www.inc.com/encyclopedia/human-resource-management.html)
Chapter FAQs
1. What is Human Resource Acquisition?
Human Resource acquisition process has focused on filling open positions in the
organization.
3. What is Management?
Management is the process of planning, organizing, directing, and controlling all
the activities and functions within an organization so that its goals are achieved.
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
University
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Human Resource Management (HRM): Meaning, Importance
HRM For Non-HR Managers /MOOC-2020 /B K School of Professional and Management Studies, Gujarat
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