Introduction to HRM

Dr. Ridhi Rani

Assistant Professor ,HR
Symbiosis Institute of Business Management
Hyderabad
 Lecture outline
 Human Resources management
 Objective of Human Resources management
 Challenges facing the workforce today
 Recent Trends in HRM
 Objectives in HRM
 Scope of HRM
 Need of HRM
 Major Functions of HRM
 Human Resources management
 Why HR?

 Why employees work?

 What is the meaning of work ?

 A Corporation – their role in society

 Four Factors of Production

 Demographic Dividend

 LPG to VUCA

 Talent is critical

 Comparison between HRM practices

 People .culture and Business success goes hand in

hand
 HR has to play a key role in maintaining and sustaining

growth mindset.
 Growth and Fixed Mindset
 People are the most vital resources & valuable resources of
any organization. Material resources depreciate and HR
appreciates.
 Gallup survey- outstanding performance of the

organization comes from the performance of its people

and strong & vibrant work environment.
 The employment relationship -
 A psychological contract- overall set of expectation of

employees about their contribution & the return which they

will get from employer.
 HR encompasses all aspects of people management

,communication and is pivotal in building a positive

culture.
 A good HR department is critical to an employee-oriented,

productive workplace in which employees are energized

and engaged.”
 Leaders/CEO’s speak
 If you look at our semiconductors & melt them down for silicon ,
that’s a tiny fraction of the costs. The rest is intellect & mistakes.”
 Gordon Moore ,Intel

 An Organization’s ability to learn ,& translate that learning into

action rapidly, is the ultimate competitive business advantage.”
 Jack Welch

 “Take our twenty people away and I will tell you that Microsoft
would become an unimportant company .” Bill gates

 “My employee is the king of my company”

 Sir Richard Branson, the founder CEO of Virgin Group

 To be a globally respected corporation that provides best-of-

breed business solutions, leveraging technology, delivered by
best-in-class people. Infosys' Mission Statement
Employees speak
 I love how I don't feel like just a number here. I am a strong
believer that Hilton cares about their employees just like
they care about their family and I am truly blessed to have
been given the opportunity to work for such an amazing
company.
 Hilton Group of Hotels

 When management says they care about their people it

actually shows in their actions. I have always been made to
feel wanted and valued as a person and employee.
Wegmans Food markets Inc .

 I am given complete autonomy to do what's best and if I

need help, I have a strong support system. I love working
for Cisco and hope to continue for a very long time. I also
love the diversity in the executive leadership, which is
unique.
 Best places to work for
 https://www.greatplacetowork.com/certified-
company/1269734
 Workday

 https://

www.greatplacetowork.com/best-workplaces/
100-best/2020
 https://www.greatplacetowork.in/great/100-b
est-companies.php
 https://www.hubspot.com/company-
news/2020-best-workplaces%EF%B8%8F-asia
 https://www.cnbc.com/2019/04/03/linkedin-

top-companies-to-work-for-in-india-2019-
 Ujjivan Small Finance Bank Ltd
 commenced its banking operations from February 01, 2017.
 Ujjivan SFB is also included in the Second Schedule to the
Reserve Bank of India Act, 1934.
 Ujjivan’s presence is spread across 24 States and Union
Territories of India with a network of 524 branches.
 They serve over 4.6 million customers across the 221
Districts that they are present in.
 FOR ALL their employees as they have excelled on the 5
dimensions that are a hallmark of a High-Trust, High-
Performance Culture™ – Credibility, Respect, Fairness, Pride,
and Camaraderie. 
 18,167 employees across all of its locations. There are 15
companies in the UJJIVAN SMALL FINANCE BANK LIMITED
corporate family.

 The organization has applaudable leadership development

programs and e-learning platforms.
HR Contributes to the Bottom Line
 Employee productivity: HR works with the
business to identify the company structure
and tools that support higher employee
productivity and performance.
 Turnover rates: HR supports the development

of a positive workplace culture that helps the

company retain employees.
 Training participation: HR identifies training

and development programs that build

employees’ knowledge and skills.
 Focus of HR

 Amongst the regular responsibilities, three areas

will require additional focus from HR
 1) culture and values
 2) Enabling work in adversity: This is the time
when HR teams can MOST DIRECTLY impact
business results. The function has a critical role
to play today to help people get back to serving
their customers, build capabilities, manage talent
pools and be effective in the new environment.
 3) Building sustainable organizations: “The more
you sweat in peace, the less you bleed in war”-
goes the saying. In good times, organizations
often build fat and unsustainable cost structures
as that’s the easy way to do it
 Challenges facing the workforce today
 Globalization and its implications
 Pressure for speed & innovation
 Transition to a service economy with its extraordinary

emphasis on customer.
 Pressure for financial performance in a tough competitive

terrain.
 Technological advances
 War of talent
 Changing Workforce demographics
 Skill Obsolescence
 From Touch Labor to knowledge Workers-  Peter Drucker

suggested that "the most valuable asset of a 21st-century

institution, whether business or non-business, will be its
knowledge workers and their productivity."
 Contingent workers
Great leaders tap into the needs and fears we
all share.
 Great managers ,by contrast , perform their

magic by discovering ,developing and

celebrating what’s different about each
person who works for them.
What you need to know about your direct reports?
1. What are his or her strengths?
Find the employee a partner with complementary
talents.
2. What are the triggers that activate those
strengths?
3. What is his or her learning style?

Manager employs people with sharply different

skills and potentially disruptive skills and put them
into those roles and shifts that allow them to shine
and to avoid putting clashing personalities
together.
 Role of a Manager
 Sets clear expectations and leads staff, project experts and
consultants
 Possesses excellent facilitation/task management skills
 Timely and effective mobilization of inputs for his/her

projects (personnel, procurement, trainings etc.)

 Has good understanding of financial information management
 Ethical - Ensures that relevant rules and procedures are

followed consistently with the demands for efficiency,

transparency and accountability
 Good team player/mentor/coach
 Supports Corporate and management policies and needs
 Monitors projects - sets performance and results standards

and system to measure

 Expert on the art of using self
 Google Project OXYGEN
 Google set out to determine what makes a manager great at Google.

 This hypothesis was based on an early belief held by some of Google’s leaders
and engineers that managers are, at best, a necessary evil, and at worst, a layer
of bureaucracy.

 The team defined manager quality based on two quantitative measures:

manager performance ratings and manager feedback from Google’s annual
employee survey.

 This data quickly revealed that managers did matter: teams with great
managers were happier and more productive.

 But knowing that managers mattered didn’t explain what made managers great.

 By going through the comments from the annual employee survey and
performance evaluations, the team found ten common behaviors across high-
scoring managers.
 Google Project OXYGEN - Characteristics
of Great Managers
 1.Is a good coach
 2. Empowers team and does not micromanage
 3. Express interest in employee concern for success and
well-being
 Creates an Inclusive Team Environment, 
 4. Is productive and results-oriented
 5. Is a good communicator — listens and shares information
 6. Help with career development
 7. Has a clear vision/strategy for the team
 8. Has key technical skills to help advise the team
 9. Collaborates across Google
 10. Is a strong decision maker
 Gallup findings

 Gallup finds that companies fail to choose the candidate with the right

talent for the job 82% of the time.

 Managers account for up to 70% of variance in engagement
 Consistent communication is connected to higher engagement
 Managers must help employees develop through their strengths
 Great manager have the following talent:
 They motivate every single employee to take action and engage

employees with a compelling mission and vision.

 They have the assertiveness to drive outcomes and the ability to

overcome adversity and resistance.

 They create a culture of clear accountability.
 They build relationships that create trust, open dialogue, and full

transparency.
 They make decisions based on productivity, not politics.
 only three in 10 employees strongly agree that they have the materials

and equipment they need to do their work right.

Five futuristic HR jobs that lead through the
man-machine blend
 1. Algorithm bias auditor
 2. Chatbot and human facilitator
 3. Human bias officer
 4. Human-machine teaming manager
 5. Virtual reality immersion counsellor
Why managing people is not easy?

 Commoditization doesn’t work

 Unpredictable Behavior patterns

 Equity in terms what others are getting

 Revolution of rising expectations

Employee stress factors

 Bad boss

 Poor pay

 Poor environment

 Unclear roles

 Lack of recognition
 Increments -2020
 Only 23 per cent of the companies plan on giving increments in 2020.
 In fact, only four out of 10 companies in India have given any
increments at all.
 In addition, less than 10 per cent companies have given an increment
equal to or more than 10 per cent this year and their numbers have been
decreasing as the year progresses.
 Out of the total number of companies surveyed, 33 per cent have
decided not to go ahead with increments.
 According to the second report of the 2020 ‘Workforce and Increment
Trends Survey’ by Deloitte Touche Tohmatsu India (DTTILLP), the
average increment has dropped from 8.6 per cent last year to 3.6 per
cent in 2020, which is one of the lowest in decades.
 Insights and inputs were gathered from seasoned HR professionals
across 350 organisations, across seven sectors and 25 subsectors.
 Unemployment benefit: 50% of 3 months’ salary for 4 mn
workers
 About four million industrial workers will now get 50 per cent of their
three months’ average salary as unemployment benefit. The union
government has offered this as a relief considering the job losses that
have occurred or may occur in the March 24 March to December 31
December 2020 period.

 This move by the Employees State Insurance Corporation (ESIC) will

provide monetary benefits equivalent to half of the last drawn average
salary to the eligible insured persons (IP) under ESIC, for a period of
three months.

 All industrial workers registered under the ESIC, and who have been in
“insurable employment” for at least two years immediately before
being rendered unemployed; and have contributed for at least 78 days
in the contribution period (six months) just before job less, “and
minimum 78 days in one of the remaining three contribution periods
in two years prior to unemployment”, will be eligible for this benefit.

 Atal Beemit Vyakti Kalyan Yojana scheme

 Human Resources
 HR as the collection of people & their characteristics at work.
 HR – people an org employs to carry out various jobs , tasks,&

functions in exchange for wages , salaries & other rewards.

 John R. Commons, an American institutional economist, first coined the

term "human resource" in his book "The Distribution of Wealth,"

published in 1893. However, it was not until the 19th century that HR
departments were formerly developed and tasked with addressing
misunderstandings between employees and their employers.
 Drucker believed that employees are assets and not liabilities

 Features

 HR are the only assets that appreciate over a period.

 It alone can produce output larger than the input.
 Flexibility of an organization depends more on people than on any

technical factors.
 They provide utility value to each one of the physical assets
 one of HR’s role is to always think few years down the line and build

an organization with that in mind.

 Human Resource Management as “planning,
organizing, directing, controlling of
procurement, development, compensation,
integration , maintenance and separation of
human resources to the end that individual,
organizational and social objectives are
achieved.”
Edwin Flippo
 HR Business Partner Model, David
Ulrich, 1997

1. As an HR Business Partner

2. As a Change Champion

3. As Administrative Experts

4. As an Employee Advocate
 Champion” for employee concerns
 Employee crisis management
 Responding to employee complaints
 Human capital
 Now HR are considered as Human capital which
can be categorized into 3 categories:

 Intellectual capital - a product of competence-

( can do potential ) & commitment (will do
potential).

 Social Capital

 Emotional Capital
 https://www.youtube.com/watch?v=hvebAGerh
88
 Objectives of HRM
 To act as a liaison between the top management and the
employees.
 To arrange & maintain adequate manpower inventory ,which ,in
turn , ensures the smooth working of the organization.
 To offer training as a way of developing skills , enhancing
productivity,& increasing individual & organizational performance
to achieve the desired results.
 To devise the employee benefits schemes for improving employee
motivation and group morale and enhancing employer-employee
cooperation.
 To ensure and enhance the quality of work life, which refers to
the employees’ perception of their physical and psychological
well-being at work.
 Distinction Between Personnel & HRM
Personnel MGT HRM
Routine, maintenance , admin Continuous development of people
Reactive & responsible to needs of Proactive function ,anticipates future
organization problems
Independent and sub function Sub system within org
Narrow view System view –proper org culture
Emphasizes on economic rewards Higher needs and job satisfaction
Employee viewed as a commodity or Employee treated as a resource
tool or equipment , which can be
purchased or used
Employees treated as cost centre Treated as profit centre & therefore
invests in HRD
Careful delineation of written contracts Aim to go beyond contract – can do
outlook
 Categories of employees
1. Work horse 2. Star

 Limited Capacity to accomplish  High Potential

the tasks

 Full of energy  High Performance

3.Problem child 4. Deadwood

 High Potential  Low Potential

 Low on performance  Low performance