UNIT -1
INTRODUCTION
Organization is made of people
 An organization cannot run without people
 All resources machinery ,men, money, material
are collected, coordinated and utilized through
people to attain common objectives.
 Therefore people are the most important resource
of any company .


According to L.F .URIwCK- “ Business houses are
made or broken in the long run not by markets
or capital , patents or equipments But By men”

HR is the only resource that does not
depreciate with time.
DEFINITION
Human resource - Is the sum total of all the
inherent abilities , knowledge skills as
exemplified in the talents & aptitudes of
employees.
 human resource management “is concerned with
the people dimension in management . Since
every organization is made up of people
acquiring their services developing their
skills, motivating them,


To high levels of performance and ensuring
that they continue to maintain their
commitment to the organization are essential
to achieving organization objective. this is
true regardless of the type of organization
government, business, education , health OR
NGO.”
By William Werther & keit Davis, HR & PERSONNEL
MANAGEMENT
DEFINITION

EDWIN B FLIPPO – “ hr mangement is the
PLANNING ORGANIZING DIRECTING AND
CONTROLLING & PROCUREMENT , DEVLOPMENT
COMPENSATION ,INTERGRATION ,MAINTENANCE
AND SEPRATION OF HUMAN RESOURES TO THE
END THAT INDIVIDUAL ORGANIZATION AND
SOCIAL OBJECTIVES ARE ACCOMPLISHED.
SCOPE OF HRM

is Very vast as it includes all activities of a
worker from the time he enters into an
organization and till he leaves and sometime
even after that.

Job analysis

Job design

Recruitment, selection, orientation ,
placement, training & development,
remuneration, motivation and so on.
HRM FEATURES

Hr – is heterogeneous

Hr- is the product of their biological
inheritance and interaction with their
environment, family relationship, background,
educational accomplishment and so on.

Comprehensive function- people of all levels
have to be managed

Action oriented- it does not only do record
keeping as in personnel management it analysis
problems and suggests solutions.

Quality of hrm influences the organization
achievement

Individual orientation

Pervasive function- all organization, all levels
and all departments

Development oriented- of employee and
organization.

Continuous function

Future oriented- helps organization achieve it
future goals

Challenging function- dynamic nature of people
Both a science and art
 It helps overcome resistance to change
 Staff function
 Young disciple
 It is the nervous system of an organization

HRM V/S PERSONNEL MANAGEMENT
HRM
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View people as asset.
People to be trained
and developed
Promotes mutualitygrowth, goals and
rewards
Hrm is a part of
strategic management
of business.
Human resource
department is very
essential and therefore
the employees of HR
Dept should be the best
Personnel Management

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Labor is a tool the
behavior of which can be
people manipulated for
the benefit of
organization and
replaced when worn out
Not productive
employees were made
the part of hr dept
A routine activity to hire
new employees and to
maintain records
OBJECTIVES OF HRM
Societal objective
 Organization objective
 Functional objective
 Personnel objective

HR POLICY

A policy is a plan of action .

Org need to evolve HR policies as they ensure
consistency & uniformity in treating people.

They motivate & build loyalty

Policies become benchmark to compare &
evaluate performance.

policies however don’t descriBe how it should Be
implemented.

Sound policy help resolve conflicts
Policies should be stable as it creates
security & removes uncertainty from the minds
of the employees
 Should not be rigid
 Should reflect the goals & values of
organization
 Should be realistic & easy to implement
 Should help keep both employee and employer
satisfied

EXAMPLE- HUL POLICY

“Child labour-Our recruitment policy
doesn't permit engagement of child labour
directly or indirectly. Regular audits
ensure compliance at our own sites and at
third party locations/sites.”-
Diversity

We are committed to maintaining diversity in our working
environment. We aggressively pursue the target of
increasing the proportion of women in management
cadres. We have a number of gender-friendly policies such
as Maternity Benefit, Career Break, Flexi-working, Parttime work ;

In 2009, 19% of our managers and 9% of our officers were
women. Our eight-member management committee has a
woman member.

Our formal employment and fitment policy
absolutely prohibits gender-based
discrimination. No incidents of
discrimination or complaints have been
reported in 2009.

We are a merit driven organisation and
this is reflected in the policies concerning
recruitment, training, and promotion which
ensure that the best person gets the job,
FORMULATING HR POLICIES
Past practices in the organization
 Prevailing practice in rival company
 Attitude and philosophy of founder and existing
top management.
 Knowledge & experience gained from past

HRM FUNCTIONS
MANAGERIAL
FUNCTIONS
Operative
function
•
•
•
•
•
Planning
Organizing
Staffing
Directing
controlling
•
•
•
•
Employment
Human resource development
Compensation management
Employee relations
ENVIRONMENT OF HRM

Enviroment of hr are all those forces which have
a bearing on the functioning of the HR
department
Internal
Environment
of HRM
External
EXTERNAL ENVIRONMENT OF HRM
Political &
legal
culture
suppliers
Economic
growth
competitor
s
globalizati
on
technol
ogy
INTERNAL FORCES
strategy
Leadership- “get the best people
and set them free-”JRD Tata
Organization culture
Growth position of company
LINE & STAFF

The department and employee of a firm
that perform the core activities and
contribute to its business directly are
called line function.

Department and employees that perform
function and contribute indirectly to the
business of a firm are termed as staff

HRM AS LINE RESPONSIBILITY

HRM AS STAFF
CHALLENGES OF HRM
INADEQUATE SUPPLY OF WORKERS WITH NEEDED
SKILLS
 INCREASING WORKFORCE DIVERSITY- MELTING
BOWL TO SALAD POT
 MORE WOMEN WORKFORCE
 WORKING MOTHERS AND CHILD CARE
 RIGHT SIZING
 FLATTER ORGANIZATION
 REDUCED LOYALTY
 MERGERS
 DUAL CARRER COUPLES

OURSOURCING

Outsourcing is an allocation of specific
business processes to a specialist
external service provider. Most of the
times an organization cannot handle all
aspects of a business process internally.
Additionally some processes are
temporary and the organization does not
intend to hire in-house professionals to
perform the tasks. Once the task is
outsourced to the service provider, he will
take the responsibility of carrying out
the tasks and maintaining the
organization’s assets
Advantages of
outsourcing
Swiftness and
Expertise
 Concentrating on
core process
rather than the
supporting ones:
 Reduced
Operational and
Recruitment costs

Disadvantages of
outsourcing

Risk of exposing
confidential data

Lack of customer
focus

Lack of control

Hidden costs
OUTPLACEMENT

Outplacement is a term used to describe
efforts made by a downsizing company to
help former employees by helping them
find new jobs and help them re- orientate
to the job market

A consultancy firm usually provides the
outplacement services which are paid for
by the former employer and are achieved
through practical advice and
psychological support.
Assistance provided through a
third-party company
Paid by the former company.
To help a laid-off employee to
find a new job.
OUTPLACEMENT
FORMER EMPLOYER
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
Outplacement is either
delivered through
individual one-on-one
sessions or in a group
format.

Topics include career
guidance, resume
writing and interview
preparation,
developing networks
and so on.
HISTORY OF OUTPLACEMENT
The term "outplacement" was coined more
than thirty years ago by the founder of a
New York based career consultancy.
 With the increased rates of downsizing,
rightsizing,lay offs, particularly during
the 1980s businesses increasingly found a
need for some form of assistance in
reducing the trauma of both departing
employees and those who remain.
 research shows that losing one's job is one
of the most stressful experiences a
person can face, ranked third behind
death and divorce.

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But what does the former
company gains???
REASON NO.1
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To build the reputation of a caring
company.
(Corporate Social Responsibility)
REASON NO.2
CHARGES OF DISCRIMINATION AND LAWSUITS
34
INITIATED BY FORMER COMPANY EXECUTIVES CAN
BE EMBARRASSING AND EXPENSIVE.
REASON NO.3
Providing
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outplacement support
for existing staff helps retain
remaining staff.
REASON NO.4
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Provides moral support and
motivation to the employees
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Services offered by
“Outplacement” firm:
CAREER EVALUATION
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CAREER GUIDANCE
39
RESUME WRITING& RESUME DISTRIBUTION
40
INTERVIEW PREPARATION
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Other services such as preparing a profile
for career networking platforms like
LinkedIN
SOME INDIAN OUTPLACEMENT FIRMS
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ABC International Placement Services
Times International Inc
Bhardwaj & Company Chartered Accountants
International Manpower Resources Pvt. Ltd.
Total Strategic Solutions India Pvt. Ltd.
Designing Solutions, Gurgaon
Esource Global HR
BRAINSTORM PLACEMENTS
Suven Consultants
M-Power HR Solution
Cindy Placements & consultancy
Smart Serve H.R. Consultant
Horizon hr Solution Pvt. Ltd.
M.K.CONSULTANT
JOBKOMPASSE
TCS CASE STUDY
44
Ref: SiliconIndia
Wednesday, 11 March 2009,
Chennai: The employees of Tata Consultancy Services (TCS),
who would be the victims of the company's recent announcement
of massive layoff, may find some relief as the firm plans to help
them in outplacement. The company had said that it will be
slashing around 1,300 employees or one percent of its workforce
across its global centers. The software giant will aid in
outplacement, counseling and alternate positions in
subsidiaries if available and it has also tied up with a few
placement agencies across the country. It has already sacked
around 100 employees in Chennai in the last two weeks.
"Recruitment of experienced professionals has been frozen unless
these are approved by the respective business heads for projectspecific skills. Wherever possible, we look to retain experienced
professionals within the company to take on these roles," Ajoy
Mukherjee, Vice President and Head, Global HR, TCS told.
SAPIENT CASE STUDY
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45
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11 feb,2009
Software major Sapient has laid off 500 employees globally, of
which around 300 are from the offices in India - Bangalore, Noida
and Gurgaon - during the weekend.
Sapient, in an official statement, confirmed the lay off and said
that it has laid off 300 employees at its offices in Bangalore,
Noida and Gurgaon.
"In order to adjust to this changing demand environment, Sapient
has exited about 8 per cent of its people. Sapient employs
approximately 6,400 globally and as a result of this
rationalization, 300 people in India have been impacted," the
company spokesperson said.
According to the spokesman of the software major, the laid off
employees have received severance packages and full
outplacement services, and would be considered for rehiring on
a fast track basis if the company finds that it again needs their
skills and experience.
INTERNATIONAL HUMAN
RESOURCE MANAGEMENT
IHRM

“Broadly defined, international human
resource management (IHRM) is the process
of procuring, allocating, and effectively
utilising human resources in a
multinational corporation.”

If the MNC is simply exporting its products,
with only a few small offices in foreign
locations, then the task of the
international HR manager is relatively
simple.
However, in global firms human resource
managers must achieve two somewhat
conflicting strategic objectives.
 First, they must integrate human resource
policies and practices across a number of
subsidiaries in different countries so that
overall corporate objectives can be
achieved.
 At the same time, the approach to HRM
must be sufficiently flexible to allow for
significant differences in the type of HR
policies and practices that are most
effective in different business and
cultural settings.

BARRIERS/ FEATURES OF IHRM

Cultural awareness

Legal awareness

Responsibility towards family

Different expectations and requirement of
employee across cultures

Managing cross cultural teams

Diluting risk on business front and
increasing risk on people front
INTERNATIONAL HUMAN RESOURCE
MANAGEMENT MODEL

Given by Morgan-

He defined Ihrm as the interplay among 3
dimensions – human resource activities,
type of employees and country of
operations”
WHAT IS AN EXPATRIATE?
An employee who is working and temporarily
residing in a foreign country
Some firms prefer to use the term
“international assignees”
REASONS FOR EXPATRIATE FAILURE
1.Inability of spouse to adjust
2.Manager’s inability to adjust
3.Other family problems
4.Manager’s personal or emotional
maturity
5.Inability to cope with larger
overseas responsibility
6.Lack of technical competence
7.Difficulties with new environment
APPROACHES TO MANAGING AND
STAFFING SUBSIDIARIES
 Ethnocentric
Home country approach
 Polycentric
Local approach
 Regiocentric
Regional approach
 Geocentric/Global
Global approach
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ISSUES IN IHRM
Employee and family adjustment
 Selecting the right person for the foreign
assignment
 Culture and communication
 Language and communication

HRM FUNCTIONS