MMZC 441/ MMVA ZC441

Human Resource Management

BITS Pilani Session 1 Date 11/01/2020 By : Dr. Jayashree Mahesh

Pilani Campus
 BITS
Pilani
Pilani Campus

Chapter 1 : Understanding the Nature and Scope of Human Resource

Management
Text Book: Aswathappa K. & Sadhna Dash, Human Resource Management- Text and Cases,
Tata McGraw Hill, 10th Edition, 2023.
Where does this course fit?

• The relationship of OB to other closely related disciplines

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Context

• New Normal
• VUCA Environment
• Paradigm shift
• People as a source of competitive advantage

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Importance of People
»Our Vision and Mission
» At Capgemini, we live and breathe the
philosophy that people matter and results
count
• Our Vision: the business value of technology comes from and
through people
• Capgemini understands that business value cannot be achieved through
technology alone. It starts with people: experts working together to get to
the heart of your individual business objectives and develop the most
adapted solutions to fit these requirements. We believe this human-
centered approach to technology is what makes the difference for your
business.

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 Adjudged “best employer of the year”
by number of leading HR surveys.
Why??
Infosys' Vision:

"To be a globally respected corporation that provides best-of-breed business

solutions, leveraging technology, delivered by best-in-class people."

Infosys' Mission

"To achieve our objectives in an environment of fairness, honesty, and courtesy

towards our clients, employees, vendors and society

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A Quick Quiz on HR
1. When hiring employees, is it better to hire people who you judge to be hard working,
organized, and dedicated during a traditional interview, or is an IQ test a better way to pick
people?
2. Is it better to hire people based on the fit of their values with the company’s values, or is an
IQ test better?
3. True or false--Asking applicants about stealing or other negative behavior at work during an
interview doesn’t help you find better employees, because most people who are going to do
bad things at work just lie.
4. True or false--If employees participate in decision making they will be more motivated than if
top management sets performance goals?
5. True or false—Managers may think their employees are really concerned about
compensation, but when it comes down to it, money doesn’t really matter that much to most
people.

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Common Statements

• There is unlimited people potential that is untapped..

• The universal challenge is getting results through people….

• Acquiring ,developing and maintaining human talent, Building the human capital..

• Its people that lend competitive advantage…

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Competitive Advantage through People

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 People – A Source of Competitive Advantage
1) People offer skills, capabilities, systems, practices and behaviors which
help execute firm’s strategies successfully
2) By aligning HR plans to business , HR managers become strategic
partners.
3) Innovation is the key to competitive advantage and people are sources of
innovation
4) HR function seeks to convert an adverse situation into an opportunity
5) Changes to structure due to environmental changes will become
successful only innovative HRM Strategies
6) HR manager plays a role of an effective change agent
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Uniqueness of Human Resource

• Only assets that appreciate over a period of time.

• Alone can produce an output larger than the input.

• Provide utility value to each physical assets.

• The flexibility of an organization depends more on people than on any
technical factors.

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Managing People and Organizations
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The HR Paradox

• The biggest differentiator resource is Human Resource for any

Organization

• The biggest challenge is to quantify the contributions of the HR

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Managing People and Organizations
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
What is Management

• The process of deciding how best to use a business’s resources

produce good or provide services (achieve the goal)

•5Ms:…….Men ,Machine, Materials, Methods, Money

•Tactfully - efficiently and effectively
•Efficient – minimum resource
•Effective – reach the goal

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Definition
HRM refers to acquisition, motivation ,retention and maintenance of
Human Resources in an organization

The policies and practices involved in carrying out the “people” or

human resource aspects of a management position, including
recruiting, screening, training, rewarding, and appraising
Meaning of HRM

• HRM is a management function that helps organisation to recruit, select,

train, develop and manage its members.
• Simply stated, HRM is all about management of people in the
organisation from Recruitment to Retirement.
• HRM refers to set of programs, functions, and activities designed and
carried out in order to maximise both employee as well as
organisational effectiveness

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Understand the nature, scope and objectives
of HRM
Understand the nature, scope and objectives of HRM

• HRM consists of people-related functions as hiring, training and development,

performance review, compensation, safety and health, welfare, industrial relations and
the like
• HRM necessitates alignment of HR policies and practices with the organization's strategies
• HRM involves the application of management principles and functions
• HRM assumes that it is the people who make the difference
• HR activities, both doubles and deliverables, are not the sole responsibility of the HR
specialists
• HR functions are not confined to business
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HRM FUNCTIONS

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 The New Age HR Functions
 Visioneering and strategizing to gain competitive edge for the organisations.
 Aligning HR activities with corporate objectives and focus on achieving strategic outcomes.
 Focusing on competency development.
 Redefining the role of HR managers and renegotiating their roles and relationships with
line managers within the organisations.
 Develop methods for producing alignment between employee goals and behaviors and
organisational strategy.
 Define, communicate, and leverage organisations key capabilities.
 Create, distribute and support HR new philosophies that support both employees and the
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Managing Employee Experience
Cultural Physical
Environment Environment
HR Philosophy
that respects people

HR Metrics & Analytics Track and Workforce Planning & Staffing Aligning
measure HR impact factors, appropriate resources to archive
enabling the right decisions customer
value

Sustainable
Human Resource
Management

Rewards and Benefits Learning and Development Infusing

Aligning to innovation that supports systems thinking and value for
sustained performance employee

Talent Management
Managing Performance
Aligning to corporate mission and
Aligning to continuous
championed by the top management
improvements
team

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The HR Paradox

• The biggest differentiator resource is Human Resource for any

Organization

• The biggest challenge is to quantify the contributions of the HR

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Human Resource Managers’ Duties
Line Function
Coordinative Function
Line Authority
Functional Authority
Implied Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

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Line and Staff Aspects of HRM

• Line manager
– A manager who is authorized to direct the work of subordinates
and is responsible for accomplishing the organization’s tasks.
• Staff manager
– A manager who assists and advises line managers.

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Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health
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What does Human Resource Management cover?
Co-ordination and responsibility for…
• Recruitment
• Team working
• Participation & Involvement
• Promotion
• Culture change
• Retention Competent and
willing workforce
• Development Support
• Equal Opportunities training
• Discipline
• Employee Disputes
Organizational Goals

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HRM Involves:

Flow of people: hiring, transfers, training and development;

promotions,
Developing management system that promote commitment.
Flow of information: keeping organizations in touch with key external realities,
managing internal communication, designing information technology
infrastructure; Integration : Policies and procedures need to be well integrated
and consistence.
Flow of work: Developing practices that foster team work and employees feel
valued and rewarded.

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Functions of HR

OPERATIVE
MANAGERIAL
FUNCTIONS Staffing
Developme
Planning
nt
Compensation
Organising
Directing Motivation
Controlling Maintenance
Integration
Emerging
Issues
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 Operative functions of HR
 STAFFING: Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal
mobility
 DEVELOPMENT: Competency profiling, Training and development, Performance &
potential management, Career Management, 360 degree feedback
 COMPENSATION & MOTIVATION: Job design, Work scheduling, Job evaluation,
Compensation administration, Incentives and benefits
 MAINTENANCE: Health, Safety, Welfare, Social security
 INTEGRATION: Employment relations, Grievance, Discipline, Trade unions,
Participation, Collective bargaining
 EMERGING ISSUE: HRIS, HR audit, HR scorecard, International HRM, Workforce
Diversity
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Competitive Challenges and Human Resources Management

• The most pressing competitive issues facing firms:

1. Going global
2. Embracing new technology
3. Managing change
4. Managing talent, or human capital
5. Responding to the market
6. Containing costs

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Challenge 1: Going Global

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Challenge 1: Going Global (cont’d)

• Corporate Social Responsibility

– The responsibility of the firm to act in the best interests of the
people and communities affected by its activities
• Impact on HRM
– Different geographies, cultures, laws, and business practices
– Issues:
• Identifying capable managers and workers
• Developing foreign culture and work practice training programs.
• Adjusting compensation plans for overseas work

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Challenge 2: Embracing New Technology

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Influence of Technology in HRM

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Challenge 3: Managing Change

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Challenge 4: Managing Talent, or Human Capital
• Human Capital
– The knowledge, skills, and capabilities of individuals that have
economic value to an organization.
– Valuable because capital:
• is based on company-specific skills.
• is gained through long-term experience.
• can be expanded through development.

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Challenge 5: Responding to the Market

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Challenge 5: Responding to the Market (cont’d)
• Reengineering and HRM
– Fundamental rethinking and radical redesign of business processes
to achieve dramatic improvements in cost, quality, service, and
speed.
• Requires that managers create an environment for change.
• Depends on effective leadership and communication processes.
• Requires that administrative systems be reviewed and modified.

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Challenge 6: Containing Costs

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Challenge 7 – Social Issues

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Cultural Changes

Employee
Employee Concern
Concernfor
for
Rights
Rights Privacy
Privacy

Cultural
Cultural
Changes
Changes

Balancing
BalancingWork
Work Attitudes
Attitudes
and
andFamily
Family towards
towardsWork
Work

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Semantics – HRM vs. PM

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 HRM is a broad concept. Personnel
management (PM) and human resource
development (HRD) are a part of HRM.

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Difference between PM and HRM
Personnel Management HRM
• Careful delineation of written contracts • Aim to go beyond contract
• Importance of devising clear rules • Can do outlook, impatience with rule
• Procedures • Business need
• Norms/customs and practices • Values/mission
• Monitoring Nurturing
• Labour management • Customer
• Piecemeal • Integrated
• Slow • Fast
• Transactional • Transformational leadership
• Indirect • direct
• Negotiation • facilitation
• Separate, marginal task • Integrated key tasks
• Job evaluation • Performance related
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Difference between PM and HRM
Personnel Management HRM
 Separately negotiated  Harmonisation
 Collective bargaining contracts  Individual contract
 Many  Few
 Division of labour  Team work
 Reach temporary truce  Manage climate and culture
 Controlled access to courses personnel  Learning companies wide ranging culture,
procedures structural and personnel strategies.
 Labour is treated as a tool which is  People are treated as assets to be used for
expendable and replaceable the benefit of an organisation, its
 Interests of the organisation are employees and the society as a whole.
uppermost  Mutuality of interests
 Precedes HRM  Latest in the evaluation of the subject
 external
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Personnel Aspects of a Manager’s Job
 Conducting job analyses
 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries
 Providing incentives and benefits
 Appraising performance
 Communicating
 Training and developing managers
 Building employee commitment

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Basic HR Concepts

• The bottom line of managing: Getting

results
• HR creates value by engaging in activities
that produce the employee behaviors that
the company needs to achieve
its strategic goals.

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Lecture 1 – Part 2

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Objectives of HRM

Personal
Objectives

Functional
Objectives

Organisational
Objectives

Societal
Objectives

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 Objectives of HRM
1. Societal Objectives: To be responsive to the needs and challenges of the society
while minimizing the negative impact, if any, of such demands upon the
organization.
2. Organizational Objectives: To assist the organization to achieve its primary
objectives, whether it is profit making or charity or social agenda.
3. Functional Objectives: To maintain department’s contribution and level of
services at a level appropriate to the organization’s needs.
4. Personal Objectives: To assist employees in achieving their personal goals, at least
in so far as these goals enhance the individual’s contribution to the organization.
This is necessary to maintain employee performance and satisfaction for the
purpose of maintaining, retaining and motivating the employees in the
organization.
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 HRM Objectives Supporting HRM Functions
(a) Legal Compliance
Social Objectives (b) Benefits
(c) Union Management Relations

(a) Human Resource Planning

Organizational Objectives (b) Employee Relations
(c) Recruitment & Selection
(d) Training & Development
(e) Performance Appraisals
(f) Placement & Orientation
(g) Employee Assessment
(a) Performance Appraisals
Functional Objectives (b) Placement & Orientation
(c) Employee Assessment

(a) Training & Development

Personal Objectives (b) Performance Appraisals
(c) Placement & Orientation
(d) Compensation
(e) Employee Assessment

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 u

HR
HRManagement
Management
Activities/Functions
Activities/Functions

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Human Resource Specialties

Recruiters

Employment/
Industrial Relations Human Resource
Specialist Development Specialists
Human Resource
Specialties
Training Specialists Job Analysts

Compensation Managers Employee Welfare Officers

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SKILLS FOR HR PROFESSIONALS
• HR manager needs to have technical, cognitive and interpersonal skills and processes to
accomplish his or her work
• The HR executive needs to be multi-knowledgeable
• Diverse knowledge is a must for HR managers for another reason: There are instances
of organisations where finance executives become HR directors, and worse still, stores
managers are made personnel managers
• Every profession mandates academic qualification that the practioner must possess
• Anybody, irrespective of his or her qualifications can become an HR executive

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HR Organization Chart for a Large Organization

Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

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Organizational Chart (Small Company)

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The Changing Role of Human Resource Management

Strategic Human Resource

Management

Managing with the HR Scorecard New Responsibilities for HR Creating High- Performance
Process Managers Work Systems

Measuring the HRM Team’s

Performance

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Changing role of
HRM
• HR functions to be more Strategic, SHRM
HR mangers involved in partnering with their top managers in both designing and
executing the company's strategies.

• Creating High performance work systems

focus on productivity and performance:
Productivity is function of ability, motivation, quality of work life;

By use of technology through effective HR practices ;

By instituting high performance work systems

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 HR Professionals Believe they
Spend their Time

HR Professionals Actually Spent Their Time,

1995-2004

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Models of HRM
• HR competency model, Christopher Mabey

Business Mastery
• Business Acumen
• Customer Orientation
•Knowledge in all functional Areas
• External relations

Personal Credibility
• Competence
• Sound academic credentials
• Trust
HR Mastery • Ethical Conduct
• Courage Change Mastery
• Staffing • Interpersonal Skills
• Performance Appraisal • Problem Solving Skills
• Reward Systems • Reward Systems
• Communication • Innovativeness and creativity
• Organization design

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HRM MODELS
 Five major models have been identified and all these serve four purposes. What are they
for? Well, they:
• Provide an analytical framework for studying HRM (for example, situational factors,
stakeholders, strategic choice levels, competence)
• Legitimize certain HRM practices; a key issue here being the distinctiveness of HRM
practices: “It is not the presence of selection or training but a distinctive approach to
selection or training that matters”
• Provide a characterization of HRM that establishes variables and relationship to be
researched
• Serve as a heuristic device

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The Fombrun, Tichy & Devanna model (1984)

Human resource development

Organizational
Selection Appraisal
Development

Rewards

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The Harvard Model

Stakeholders Interests
Shareholders
Management
Employee Groups
Government
Community
Unions
HRM HR outcomes
Long – Term Consequences
Employee Influence Commitment
Individual well being
HR flow Competence
Organizational well being
Situational Factors Reward systems Congruence
Societal well being
Workforce characteristics Work systems Cost- Effectiveness
Business strategy and conditions
Management Philosophy
Labor market
Unions
Task technology
Laws and Societal Values

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The David Guest Model (1997)

Performance Outcomes
HRM Positive
Behavioral Financial
Practices Productivity
HR Outcomes Outcomes Outcomes
Hiring Innovation
HRM Commitment Motivation Profits
Training Quality
Strategies Quality Cooperation ROI
Appraisal Negative
Flexibility Organizational
Compensation Low productivity
Citizenship
Relations Absenteeism
Turnover

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The Warwick Model (Hendry & Pettigrew) Outer Context

Socio-economic
Technical
Political-legal
Competitive

Inner Context
Culture
Structure
Politics/leadership
Task-technology
Business outputs
HRM Context
Business Strategy Context
Role
Objectives Definition
Product market Organization
Strategy and tactics HR Outputs

HRM Content

HR flows
Work systems
Reward systems
Employee relations
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The Warwick Model (Hendry & Pettigrew)

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The Ulrich Model

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Evolution of HRM in India
1920s – 30s
Pragmatism of capitalists

1940s – 50s
Technical, legalistic

1970s – 80s
Professional, legalistic, impersonal

1990s
Philosophical

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HRM in India

In the 1970s and 1980s typical HRM functions in organization included:

• Personnel and administration
• Industrial relations
• Labor welfare
Up to the mid-80s human resource management in Indian organizations grew through
various phases under the influence of the following factors:
• A philanthropic viewpoint about doing good for workers
• A legislative framework
• Government policies
• Trade unions
• Emerging trends/concepts in management
• Changes in the economy
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Management Challenges for Indian CEOs
A study among Indian CEOs identified the following challenges:
– Creating a high-performance culture
– Retaining talent
– Recruiting
– Moving from a patriarchic and hierarchical management style to a
more team-based, informal organizational culture
– Linking training with performance
– Compensating knowledge workers
– Building interpersonal relationships/managing conflict
– Going global
Source: Aneeta Madhok, “Similar Challenges” cited by Robert J. Grossman in “HR’s Rising Star in India,” available at http://www.shrm.org/india.

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Shift to Human Resource Development Orientation
 The 1980s saw the large-scale introduction of the
developmental concept in Indian organizations
 Udai Pareek and T. V. Rao, faculty of IIM Ahmedabad,
introduced the human resource development (HRD) concept in
India

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Total Human Resource Management
 Opening up of the Indian economy created a demand for talent
and the traditional organizations (both in public and private
sectors) became talent sources.
 Development of the Information Technology sector mobilized a
vast pool of technically trained people.
 Massive staffing requirements saw recruitment evolving as very
specialized function, separate from but closely interlinked with the
other HRM functions.
 Arrival of the “knowledge worker”—well-skilled, individualistic,
and ambitious about career caused attrition to become common.
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Total Human Resource Management (Contd.)
 Introduction of IT-supported solution, particularly ERP-based
human resource information systems
 Introduction of innovative HR practices.
 Rise of IT-enabled services (ITES), gave employment
opportunities to the young English speaking, educated
population.
 HRM function assumed a strategic role in Indian organizations,
responding to business requirements in an appropriate way.

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 Importance of HRM
 Hire the wrong person for the job
 Experience high turnover
 Have your people not doing their best
 Waste time with useless interviews
 Have your company in court because of discriminatory actions
 Have your company cited by OSHA for unsafe practices
 Have some employees think their salaries are unfair and inequitable relative to others
in the organization
 Allow a lack of training to undermine your department’s effectiveness
 Commit any unfair labor practices
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Vybha Case
v

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MMZC441 - HRM 75
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MMZC441 - HRM 76
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 Case
Question:
Q. Comment on the HR structure finalized by Renny Joseph and her
colleagues.

Case
summary
• 23 year old company, 26000 employees
• 13 countries with 4 vertical industry : telecommunication software technology
products, consumer retail, consumer electronic, telecommunication services.
• CEO Ravinder – build competence team of VP
• Renny Joseph – VP- HR

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Objective

• Share information and resource effectively between divisions.

• Craft an overall strategy for Vybhav corporation

• Method to map competencies and identify skill gaps

• Create succession planning to establish high performance culture

• Free up resources on high level talent management strategies

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
MMZC441 - HRM 79
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
WHY STUDY HRM?

• Taking a look at people is a rewarding experience

• HRM is a study about people in organisations — how they are hired, trained,
compensated, motivated and maintained
• It is people who build factories, structure organisations and manage them
successfully
• The rapid growth of globalisation has increased the number and significance of
MNCs which in turn increased the mobility of people
• By stressing on competencies, commitment, performance, rewards, ethical
behaviour and positive attitudes, HR professionals are able to convert average
employees into better and to the best citizens
MMZC441 - HRM 80
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Summary of Chapter
1
 HRM includes a set of programmes, functions and activities designed and implemented to

maximise organisational effectiveness along with employee growth.

 HRM is inclusive of IR, PM and HRD

 HRM Models provide analytical framework for studying people management

 Every manager is HR manager as there is always HR responsibilities taken by line managers

MMZC441 - HRM 81
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956