UNIT 1

INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT

Learning Objectives: In this unit, you will be able to:

1. Understand the background of Human
Resource Management.
2. Describe modern HRM's proactive and dynamic nature
and competency-based approach.
3. Recognize each component's importance to
corporate success.
4. Critically analyze the case at the end of this unit.

Overview of Human Resource Management

Organizations need strategic human resource management to

achieve their goals and
objectives. It manages
employee activities
throughout their work life
cycle. HRM optimizes human
resources to create a
productive, positive work
environment that boosts the
company's success. It includes recruiting, selection, training,
performance management, compensation, and employee relations.

HRM aligns employees' skills with the company's aims. HRM

helps encourage and engage employees, which improves
organizational performance and long-term success.

Staffing, retention, development, adjustment, and change

management comprise the HRM system in workplaces.
Individuals, teams, and departments can do these tasks. Line
managers and HRM must handle them.
Defining Human Resource Management
Wendell L. French defines human resource management as an
organization's people management philosophy, policies,
processes, and practices. Stephen P. Robbins defines HRM as
acquiring, developing, motivating, and maintaining human
resources.

Human Resource Management as an Art

Many consider HR an art. It entails working with complex and
unpredictable people. To manage people, HR professionals need
good communication, emotional intelligence, and empathy. They
must comprehend and navigate the business's diverse
personalities and motivations. Thus, HR requires creativity and
intuition to meet employee and corporate needs. HRM as an art
involves creativity and intuition in managing people in an
organization. HRM demands creative talents to engage and
comprehend human behavior and relationships.

Moreover, Human Resource Management (HRM) encompasses

the strategic and all-encompassing approach adopted by a
business to efficiently administer its workforce and functions
connected to employees. Human resource management involves a
diverse array of activities and obligations that are designed to
optimize the capabilities of employees and ensure that their
efforts are in line with the goals and objectives of the firm. Human
Resource Management (HRM) encompasses the integration and
management of a range of processes, policies, and practices that
pertain to the areas of recruiting, selection, training, development,
remuneration, performance appraisal, employee relations, and
other related aspects.

Human Resource Management as a Science

The systematic study, analysis, and application of concepts,
theories, and empirical data to manage human resources in an
organization makes human resource management a science.
Psychology, sociology, economics, and organizational behavior
underpin human resource management. These theories explain
workplace behavior, motivation, and performance scientifically.
Empirical research and data analysis inform its decisions. HR
surveys, employee behavior data, and workforce trends to
generate evidence-based HR initiatives. forecasts workforce
demands, employee turnover, and talent acquisition need using
statistical and predictive modeling. Historical and statistical data
underpin these models.

Evolution of Human Resource Management

HRM has evolved continuously. HRM has evolved from its
administrative roots to its strategic role in personnel management
and corporate performance. HRM is a new term. It became
popular in the 1980s. Craftsmen made items in ancient and
medieval eras. They owned the tools, made products, and sold
them. Early 20th- century HRM concentrated on administrative
activities like record- keeping, payroll management, and labor
law compliance. HR only handled hiring and firing. Elton Mayo's
1930s and 1940s studies stressed employee satisfaction and
motivation. The Human Relations Movement began to value
employee well-being and productivity at this time. Organizations
prioritized HR in the 1950s and 1960s. Workforce planning,
training, and performance management joined personnel
administration. EEO and civil rights dominated the 1960s and
1970s. HR departments were vital to workplace discrimination
affirmative action campaigns. HRM became strategic in the 1980s
and 1990s. Human resources become a competitive advantage for
organizations. HR departments worked toward organizational
goals. In the 21st century, HRM focused on talent management,
employee engagement, and workplace culture. Attracting,
developing, and retaining qualified workers was key to
organizational success.

HRM now prioritizes workplace diversity and inclusion. Diverse

perspectives and inclusive cultures fuel innovation and creativity.
The 2020 COVID-19 epidemic spurred remote and flexible work.
HRM addressed remote team management and employee well-
being. Data drives HR today. HR analytics and big data reveal
employee behavior, performance, and engagement. These
insights optimize HR and strategic decision-making.

Role and Responsibilities of HR Managers

HR managers ensure a productive and engaged staff. They link

HR procedures with corporate goals and inspire people to
succeed. Strategic thinking, people management, labor legislation,
and HR best practices are needed for their job.

The presence of a humanitarian conscience serves as a reminder to

management regarding their moral
obligations and the responsibility
of employees. The personnel
manager provides counseling
services to dissatisfied employees.
Employees may also face a range
of personal challenges,
including
marital difficulties, health concerns, issues related to their
children's schooling or marriage, mental health issues, physical
ailments, and career-related challenges. The individual serving as
a mediator in this context is the personnel manager. They
facilitate the resolution of conflicts between management and
employees. They serve as intermediaries between the parties
involved. Human resource managers often serve as
representatives of the organization. They are responsible for
managing human resources and addressing issues related to
organizational planning. Programs are subject to modification.
Competency Framework of an HR Manager

The global adoption of T-Shaped HR professionals has been

implemented in response to the demand for individuals with a
broader skill set and the ability to make a significant difference in
their roles.

 Business acumen is the capacity to analyze business

circumstances, make informed judgments, and act
appropriately to achieve corporate goals and organizational
success. It involves a combination of business knowledge,
critical thinking, and practical judgment. Individuals with
strong business acumen possess a deep understanding of
how businesses operate, including their industry, market
dynamics, financials, and overall strategy. It is essential for
leaders, managers, and decision-makers in any organization.
It enables them to navigate complex business environments,
identify growth opportunities, and proactively address
challenges. With strong business acumen, individuals can
make informed and strategic decisions that positively impact
the organization's financial performance and overall success.
Additionally, business acumen helps individuals contribute
 effectively to their teams and collaborate with others to
achieve common goals.

 With the growing reliance on data-driven insights, HR

practitioners need to develop data literacy skills to optimize
HR processes, enhance employee experiences, and align HR
strategies with organizational goals. Developing data
literacy in HRM can lead to several benefits including
improved HR decision-making. HR professionals use data to
make objective, strategic decisions. Data-driven talent
acquisition, development, and retention strategies can lead
to a more engaged and productive workforce.
Understanding employee data can help identify pain points
and opportunities to enhance the employee experience. Data
literacy allows HR professionals to streamline processes,
reduce inefficiencies, and optimize HR operations. By
embracing data literacy, HR professionals can transform the
HR function into a strategic partner that contributes to the
organization's overall success through data-driven HR
practices.

 Digital agility in Human Resources refers to the ability of

HR professionals and departments to adapt and thrive in the
rapidly changing digital landscape. Embracing technology,
using digital tools and platforms, and integrating digital
solutions into HR operations improves efficiency, employee
experience, and organizational success.

 People advocacy in Human Resources Management (HRM)

refers to the HR department's role in representing and
promoting the interests of employees within an
organization. It involves advocating for the well-being,
rights, and needs of employees and ensuring that their
voices are heard and respected by management. By
embracing people’s advocacy, HR professionals contribute
to creating a positive employee experience, fostering a
strong organizational culture, and
 building a committed and productive workforce. It reinforces
HR's role as a strategic partner that cares for employees'
well- being and supports the organization's long-term
success. People advocacy is an essential component of HRM,
promoting employee satisfaction, loyalty, and retention
while strengthening the employer-employee relationship.

• HRM's ability to provide measurable and substantial

contributions to the organization's success and bottom line is
called impact. HRM improves employee performance,
corporate goals, and employee enjoyment.

 To manage the company's most asset—its people—HRM

requires a variety of specialized talents. To manage the
modern workplace, HR professionals need technological
skills, interpersonal skills, and strategic thinking. HRM
specialists establish and retain a trained, engaged, and high-
performing staff that boosts the company's success and
competitive edge. To handle modern workplace issues and
opportunities, HR professionals must constantly acquire and
polish their specialized skills.

 HR practitioners need HRM leadership capabilities to lead

and influence the organization. HR leaders must lead to
influence stakeholders, create a great work culture, and
integrate HR strategy with the organization's goals. HR
practitioners may position HR as a strategic partner in
business success and employee engagement.

Background on Human Resource Management Process in

Organization: A Traditional View Background on HRM
Process: Modern View – A competency-based Human Resource
Management

HRM was traditionally administrative and focused on people

management. HRM was seen as a support role, handling payroll,
benefits, record-keeping, and labor law compliance. Traditional
HRM focused on legal compliance and seamless HR operations.

Traditional HRM was linear and bureaucratic, with little strategic

planning or alignment of HR procedures with the organization's
goals. HR departments reacted to challenges as they emerged
because decision-making was centralized.

Traditional HRM performance reviews were sporadic and

focused on job accomplishment rather than strategic alignment or
employee development. Basic skills training was prioritized
above talent development.

The traditional view of HRM was transactional, with HR

departments primarily involved in administrative tasks and
lacking a strategic role in the organization.

Modern HRM is proactive, and dynamic, and aligns HR practices

with strategic goals. To stay competitive, build a trained
workforce.

Competency-based Modern HRM includes HR management. This

method identifies and develops organizational competencies
(knowledge, skills, abilities, and behaviors) for each role.
Competencies support the company's long-term goals.

The modern HRM process involves:

1. Strategic HR Planning: HR departments collaborate with
top management to align HR initiatives with business
strategies. This includes workforce projections, vital
capabilities, and personnel acquisition and development.

2. Talent Acquisition and Recruitment: HR employs

competency-based approaches in recruitment, using
competency frameworks to assess candidates' suitability for
specific roles.
3. Performance Management: Performance evaluations
are competency-based, focusing on how well employees
demonstrate the required competencies to achieve
individual and organizational goals.

4. Learning and Development: HR invests in competency-

based training and development programs that target
key competencies for employee growth and
advancement.

5. Succession Planning: Competency-based succession

planning assures a stream of qualified candidates for
future essential roles.

6. Employee Engagement: HR practices are designed to

foster employee engagement, leveraging competencies
that contribute to job satisfaction and motivation.

7. Data-Driven HR Analytics: Modern HRM relies on

data analytics to measure the impact of competence on
organizational performance and make data-driven
decisions.

8. Continuous Improvement: HR is continuously

evolving, updating competency frameworks and HR
practices to adapt to changing business needs and talent
requirements.