Human Resource Management

Course Code: SM5155

L-T-P structure: L-T-P 3-1-0, Course Credits: 2
Are people important
for an organization?
 Importance of People in an Organization

⚫ People are an organization’s most valuable asset.

⚫ The ability to attract, develop and retain talented
employees is a key feature of successful businesses.
However, people also represent the most difficult
resource for organizations to manage.
⚫ Unlike physical assets, people have their own
individual needs which must be met and
idiosyncrasies which must be managed if they are to
contribute to organizational growth and
 The quality and effectiveness of the
organization is determined by the quality of
people in the organization.

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Human Resource Management
⚫ Human resource management deals with attracting, developing and maintaining

a talented workforce.

Basic Responsibilities/Objectives of Human Resource Management

1. Attract a quality workforce - human resource planning, recruitment, and

selection.
2. Develop a quality workforce - employee orientation, training, performance
appraisal.
3. Maintain a quality workforce – compensation, rewards and recognition, career
development, employee welfare and retention
HR Functions
Human resource planning is the process of analyzing staffing needs
and identifying actions that should be taken.
Recruitment is the process of attracting qualified job candidates to
fill vacant positions
Selection is the process of choosing whom to hire from a field of
qualified applicants
Orientation is the process of formally introducing new
employees to their jobs and socializing them with
performance expectations.
Training keeps workers’ skills up to date and job relevant.
Performance Appraisal is the process of formally
evaluating performance and giving feedback to an
employee
Career Planning & Development - Manages how a person grows and
progresses in their career
Compensation – Compensation has to be competitive and
commensurate with the contribution
Rewards and Recognition – Recognition for performance, incentives
and rewards to be offered
Employee welfare - Facilities and work-life balance initiatives to be
provided
 Human Resource Management
⚫ Human resource management (HRM) is the set of practices
an organization uses for recruiting, selecting, managing,
developing, and optimizing employees to increase their
value to the company.
 Transition in HR function
⚫ Personnel Management focuses on core administrative HR
functions such as hiring employees, maintaining employee records
and administering benefits.
⚫ Human resource management (HRM) is an essential branch of
management that deals with making the optimum usage of
organizational human resources to achieve the organizational goals.
⚫ Strategic Human Resource Management (SHRM) is a process of
managing human resources that links the workforce with the core
strategies, objectives, and goals of an organization. Human capital
management is a broader term that includes HRM functions as well
as strategic functions such as analytics and performance
management. Human capital management works to maximize the
value and ROI of the people in an organization.
Challenges of HRM- Changing world of work
⚫ Implications of globalization
⚫ Changing demographics and diversity of the workforce
⚫ Technological advances
⚫ Changing skill requirements
⚫ HR Analytics
⚫ Customer service and quality emphasis
⚫ Innovation
⚫ Flexibility
⚫ Change and continuous learning
⚫ Employee Engagement
⚫ Increasing importance of people skills
 Self Assessment Exercise
Select the number 1 to 5 that best describes you.
1 – Rarely, 2 – Seldom, 3 – Occasionally, 4 – Frequently, 5 - Usually

1. Iam an optimist. I look for the good in people and situations, rather than the
negative
2. I avoid complaining about people, things and situations
3. I show a genuine interest in other people. I compliment them on their success
4. I smile
5. I have a sense of humour
6. I make an effort to learn people’s names and address them by name during
conversations
7. I truly listen to others
8. I help other people cheerfully
9. I think before I act and avoid hurting others with my behaviour
10. If I were to ask all the people I work/ worked with to answer these nine questions
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⚫ People skills/Human Skills
The ability to work with, understand, and motivate other people,
both individually and in groups

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 Ten guidelines to Effective Human Relations

⚫ Be optimistic
⚫ Br genuinely interested in others
⚫ Help others
⚫ Create a win-win situation
⚫ Call people by name
⚫ Apologize
⚫ Think before you act
⚫ Listen to people
⚫ Smile and develop a sense of humour
⚫ Be positive
Scope of HRM
 Human Resource Planning (HRP)
Human Resource Planning is the process of forecasting an
organization’s future demand for and the supply of the right
type of people in right number.
Factors affecting HRP
Type of organization
Size of the organization
Strategy of the organization
Organizational life cycle stage and planning
Technology
Environmental uncertainties and time horizons
Nature of jobs being filled
Outsourcing the work
Techniques for forecasting the demand for workforce
⚫ Managerial Judgement
⚫ Ratio analysis
⚫ Delphi technique
⚫ Trend analysis
⚫ Regression analysis
Forecasting the supply of workforce internally
• Skills inventories
• Employee turnover
• Promotions/Succession planning
Job analysis is the process of collecting information about a job.

Job Analysis

Job Specification
Job Description Qualifications
Job title Experience
Job location Skills
Job summary Knowledge
Job duties Personality
characteristics
Job Design
⚫ Job design follows job analysis i.e. it is the next step after
job analysis. It aims at outlining and organizing tasks, duties
and responsibilities into a single unit of work for the
achievement of certain objectives.
⚫ Job design essentially involves integrating job
responsibilities or content and also makes the job look
interesting and specialized.
Five Core Job Dimensions

⚫ Skill variety
⚫ Task identity
⚫ Task significance
⚫ Autonomy
⚫ Feedback
Techniques of Job Design
⚫ Job Rotation
⚫ Job enlargement
⚫ Job enrichment
⚫ Job simplification
Human Resource Management- Module 2
Recruitment
Edwin B. Flippo defined “Recruitment as the process of
searching the candidates for employment. and stimulating
them to apply for jobs in the organization.”
Recruitment is the process of searching for and obtaining
applicants for jobs, from among whom the right people can be
selected.
Recruitment process
⚫ Recruitment Planning
Number of contacts
Type of contacts
• Strategy Development
‘Make or Buy’
Technological sophistication
How to hire
• Sources/ Methods of Recruitment
Sources of Recruitment
⚫ Internal sources
Present employees
Employee referrals
Former employees
⚫ External Sources
Advertisements
Campus recruitment
Company websites
Social media
Professional associations
Consultants
Walk ins
Contractors
Competitors
⚫ Searching
Source activation
Selling
⚫ Evaluation and control
 Recruitment metrics
• Time to hire
• Time to fill
• Cost per hire
• New hire turnover
• Quality of hire
• Time to productivity/performance
• Offer acceptance rate
Yield Ratio

Yield ratio measures the movements of candidates between each

stage of hiring process. For example, we will have a yield ratio for
the application to screening stage, the screening stage to interview
stage, and so on.
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 “Yield ratios show what percentage of candidates pass from
one stage of the hiring process to another.”
Yield metrics can also help figure out whether recruitment
strategies and sources are effective.

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Selection
Selection is the process of choosing the best from the pool of job
applicants with requisite qualifications and competencies to fill the job
vacancies in the organization
Selection Process
Preliminary screening and short listing
Selection tests – Aptitude tests, Technical tests, Personality tests, Graphology
tests, Polygraph tests, GDs, Situation analysis, In-basket exercise, Case analysis,
Simulation, etc
Employment interview
Reference and background checks
Physical examination
Selection decision and Job offer
Evaluation of selection programme
Graphology - Examples
Placement
⚫ Placement is a process of assigning a specific job to each of
the selected candidates so that they are assigned the right job
for which they are best suited. It implies matching the
requirements of a job with the qualifications/ competencies
of the candidate.
Employee Orientation
⚫ An employee orientation is a process used to integrate recently
recruited employees with the organization. It is also known as
on-boarding process, induction process etc. This process is very
crucial for both the stakeholders; the organization as well as the new
entrants, with the latter getting exposed to the organization and
understand their new role and position with respect to the
organization as a whole. This is the first proper impression of the
organization for the new employees.
⚫ (NHO) program – New Hire Orientation Program
⚫ Employee orientation introduces a new employee to the company, its
policies, the coworkers and the job itself. Its characteristics include
introducing the employee to the company's culture, roles and
responsibilities, job description and other important things an employee
will need to know.
Generally orientation covers many aspects such as:
⚫ Culture, values, vision & mission of the company
⚫ Organizational Structure
⚫ Policies, Procedures, Rules & principles
⚫ Roles and responsibilities of the employee and others in the company
⚫ Employee introduction
⚫ Department level information
⚫ Job description
⚫ Systems
⚫ Facilities , benefits etc.
Training is expensive and without training it is more
expensive
“The only thing worse than training your employees and
having them leave is not training them and having them stay”
- Henry Ford, Founder, Ford Motor Company
“Training provides employees with the knowledge
and skills to perform their job more effectively” –
Blanchard & Thacker
 Stages of Training and Development

❖ Training Needs Analysis

❖ Design & Development
❖ Implementation
❖ Evaluation

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Conducting needs assessment
Needs assessment refers to the process used to determine the training needs.
Training is required –
⚫ when the performance of the employees in their present position does
not match up to the required standards
⚫ when the requirement of the job changes due to the changing
circumstances, and
⚫ when the present job ceases to exist and the job holders changes jobs
Training need also arises due to -
⚫ Expansion; Reorganization; Introduction of new methods, new
equipment, new Products; Promotion.
⚫ Accidents; excessive scrap; incidence of errors or faults in a job are
high; Too many low ratings on employee evaluation reports;
deadlines not being met.
⚫ Training needs assessment involves -
Organizational analysis
Task analysis
Person analysis
Organizational analysis is concerned with identifying whether
training fits with the company’s strategic objectives and whether
the company has the budget, time and context for the training.
Person Analysis helps to identify employees who need training.
Task analysis results in a description of work activities, including tasks
performed by the employee and the knowledge, skills and abilities
required to complete the tasks.
Designing training & development programs
Statement of objectives
Target audience
No. of participants per session
Duration of training program
Training methods
Location of training
Physical environment
Resources
Prerequisites
Training methods
⚫ Lectures
⚫ Audiovisual techniques
⚫ Hands-on Methods or On-the-job training
⚫ In basket exercise
⚫ Case studies
⚫ Business games
⚫ Role plays
⚫ Behaviour modeling
⚫ Team-based training methods
Training Evaluation
▪ Training evaluation refers to the process of collecting the outcomes
needed to determine whether training is effective.

Outcomes used in the evaluation of training programs

▪Kirkpatrick’s four level framework of evaluation criteria
▪ Reactions – Trainee satisfaction
▪ Learning – Acquisition of knowledge, skills, attitudes
▪ Behaviour – Improvement of behavioural patterns on the job
▪ Results – Business results achieved by trainees
 What is Performance?
❖ Performance is what is expected to be delivered by an individual or a set of
individuals within a time frame. What is expected to be delivered could be
stated in terms of results, tasks and quality, with specification of conditions
under which it is to be delivered.

Performance of an individual in organizational setting is defined as the output

delivered by an individual in relation to a given role during a particular period of
time under the set of circumstances operating at that point of time
 Performance Appraisal
▪ Performance appraisal refers to the assessment of an
individual’s performance on the job in a systematic way
 Appraisal Process – Steps in PA
Objectives of appraisal
Establish performance standards
Communicate job expectations/performance standards
Design appraisal programme
Formal vs Informal appraisal
Whose performance should be rated?
Who are raters?
What should be rated?
When should the assessment be done?
Measurement of performance
Comparison of performance with the standards
Discussing the performance results with the employees
Use of appraisal data
 Methods of Performance appraisal
Rating scale
Checklist
Forced choice method
Forced distribution method
Critical incidents method
Performance tests and observations
Essay method
Group appraisal method
Comparative evaluation approaches
Ranking method
Paired-comparison method
MBO (Management by Objectives)
BARS (Behavioral Anchored Rating Scale)
Assessment centres
3600 appraisal
7200 appraisal
 Problems of rating/ appraisal
Leniency or severity error
Central tendency
Halo error/effect
Stereotyping
Favouritism
Primacy effect
Recency effect
Similarity effect
Spill over effect
Challenges/ Issues in Performance appraisal
Lengthy & time consuming process
Lack of clarity regrading performance expectations
Inadequate support from line managers
Less focus on discussing performance results
Less frequency of conducting performance reviews
Lack of synchronization between performance appraisal
system and other HR sub systems
 A systematic process for improving
organizational performance by
developing the performance of
individuals and teams.

PERFORMANCE MANAGEMENT
PERFORMANCE APPRAISAL PERFORMANCE MANAGEMENT

Focus is on performance appraisal and Focus is on performance management

generation of ratings

Annual exercise Continuous process

Emphasis is on ratings and evaluation Emphasis is on performance improvement of

individuals, teams and the organizations

Designed and monitored by the HR Designed by the HR department but could be

department monitored by the respective departments

Static process Dynamic process

Limited approach Comprehensive approach

Competency Management
⚫ It’s about identifying, assessing, developing and
optimizing employees’ knowledge, skills, abilities,
and behaviors particularly those they need to excel in
their specific roles.
Compensation
Compensation is the amount of remuneration paid to an employee by the
employer in return to the employees’ services to the company.
Components/ Types of Compensation
⚫ Direct compensation in the form of wages or salary
⚫ Base pay (hourly, weekly, and monthly)
⚫ Incentives (sales bonuses and or commissions)
⚫ Indirect compensation in the form of benefits
⚫ Legally required benefits (e.g., Social Security)
⚫ Optional (e.g., group health benefits)
Importance of Compensation
⚫ Impacts an employer’s ability to attract and retain employees.
⚫ Ensure optimal levels of employee performance in meeting the
organization’s strategic objectives.
The 3-P Compensation concept
⚫ Pay for position
⚫ Pay for person
⚫ Pay for performance
 Factors influencing compensation management

⚫ Ability to pay
⚫ Demand and supply
⚫ Prevailing market rates
⚫ Cost of living
⚫ Bargaining of trade unions
Internal Equity
Fairness of pay differentials between different
jobs in
organization
External Equity
Fairness of organizational compensation levels relative
to external compensation
Individual Equity
⚫ Fairness about pay differentials among individuals in same job
⚫ Established by using
⚫ Seniority-based pay systems: Reward longevity
⚫ Merit-based pay systems: Reward employee performance
⚫ Skills-based pay systems: Compensation based on employees
possessing skills that firm values
Equity Theory
Equity & Work-Related Outcomes
What Are Employee Benefits?

Employee benefits include all

payments/services outside of cash
remuneration, received by a worker/employee
from their employer.
Examples
a. Educational assistance
b. Relocation expenses
c. Subsidized cafeterias
d. Employee discounts
e. Wellness programs
f. Employee assistance programs
g. Daycare services
h. Financial planning assistance
i. Retirement counseling
j. Free parking
 Employee Benefits - Google
⚫ Google provides free gourmet cafeterias at its Mountain View,
California, campus that provide a variety of international foods, including
a Spanish-style bar and Indian, Chinese, Italian, Thai, and Mexican
restaurants.
⚫ It also offers a 24-hour on-site fitness center, as well as personal trainers.
⚫ There is an in-house doctor, nutritionist, a dry cleaner, and a massage
service.
⚫ Healthcare benefits
⚫ Education assistance program
⚫ Parental leave
⚫ Stock options
⚫ Google supplies onsite car washes and oil changes.
⚫ Mental wellbeing – employee assistance programs
 Career Planning and Development

❖ Career can be defined as a sequence of positions occupied

by a person during his course of a life time.
❖ Career planning is a process of planning the series of
possible jobs which an individual may hold in the
organization over a period of time and developing strategies
designed to provide necessary competencies as the
opportunity arises.
❖ Career development essentially means the process of
increasing an employee’s potential for advancement and
career change. It relates to readiness for career progression
through a series of positions during an individual’s career.
Purposes and Objectives of Career development
To attract and retain effective persons in an
organization
To utilize human resources optimally
To improve morale and motivation level of employees
To reduce employee turnover
To practice a balanced ‘promotion from within’ policy
To increase employees’ loyalty and commitment to
the organizations
To maintain harmonious industrial relations
To inculcate equitable employment practices
providing equal career progression opportunities to
women and minorities
 Stages of career development process
❖ Exploratory stage
❖ Establishment stage
❖ Mid-career stage
❖ Late career stage
❖ Stage of decline
Career anchors
Career anchor is a syndrome of talents,
motives and values, which give stability and
direction to a person’s career.
❖ Technical/ Functional competencies
❖ Managerial competencies
❖ Security and stability
❖ Creativity
❖ Freedom and autonomy
❖ Challenge
❖ Service
❖ Life style
 Prerequisites for effective career development
❖ Commitment of top management
❖ Communication of information of career opportunities
❖ Communication of the available career planning and development
resources in the organization
❖ Communication about the status of their present position,
organizational expectations and their level of performance
❖ Support in career planning
❖ Developing career paths compatible with changing needs
Human Resource Management- Module 2 part B
Internal Mobility
⚫ Internal mobility is the process of movement of employees
which takes place between the jobs in sections, departments
or divisions of the organization. Internal Mobility is
necessary to match the employee’s skill and requirements
with the requirements of the job and those of the
organization continuously.
⚫ Internal mobility can take any or more of the form of
promotion, demotion, transfer
Internal Mobility
⚫ Promotion is an upward movement of employee in the organization to
another job, higher in organization's hierarchy. In the new job, the
employee finds a change in salary, status, responsibility and grade of job
or designation. As a whole, the organization perceives the staffing of
vacancy worth more than the employee’s present position.
⚫ Demotion is the downward movement of an employee in hierarchy with
lower status, salary and decreased responsibilities. It is generally used as a
punitive measure for incompetence or a disciplinary action.
⚫ Transfer implies a lateral movement of an employee in the hierarchy of
positions with the same pay and status. Transfers may be either company
initiated or employee initiated.
Employee separation
⚫ Employee separation occurs when employees cease to be a member of an
organization. Agreement between employer & employee comes to an end.
Employees decide to leave the organization or organization ask employee
to leave. Reasons for employee separations are voluntary or involuntary.
Employee separation may arise due to retirement, quit, layoff,
retrenchment,
dismissal, VRS.
Human Resource Management

Module 3 – Industrial Relations

Employee relations/ Industrial relations
⚫ Industrial relations refer to the relationships between employees and
management that characterize and grow out of employment
⚫ Employee relations (traditionally known as industrial relations) has
informal and formal dimensions that define and control the nature of the
employment relationship
Actors/Parties of Industrial relations
⚫ Employees
⚫ Employer
⚫ Government
Perspectives on employee relations
⚫ The unitary perspective views the organization as a harmonious
environment in which management and employees share common
goals. Conflict is seen as unnatural and trade.
⚫ The pluralistic perspective sees the organization as a collection of
distinct and competing subgroups that vie for power, frequently
conflicting with each other. Conflict is not seen as wholly
undesirable, but as a force which can act as an agent for change and
innovation. Pluralist theories focus on conflict resolution and
problem-solving in order to develop a state of dynamic equilibrium
Approaches to managing employee relations
⚫ Bernardin and Russell have identified four main approaches to the
management of employee relations
⚫ adversarial managers do what they want and employees are expected
to fit in;
⚫ traditional managers propose strategies and employees react
through their elected representatives;
⚫ partnerships managers involve employees in making decisions but
ultimately make the decisions themselves;
⚫ power-sharing managers directly and genuinely involve employees in
day-to-day and strategic decision-making.
⚫ Management approaches have not progressed to the point where
genuine and complete power sharing with employees is the
predominant employment relations strategy. In reality, most
managers rely on there being some degree of representation from
employees, but retain the power to make the ultimate decisions
concerning employment practices.
Importance of Good Industrial Relations
⚫ Ensures industrial democracy
⚫ Increases the employee involvement
⚫ Increases the morale of the employees
⚫ Protects the interest of the workers
⚫ Smooth functioning of the organization
⚫ Increases productivity
Trade Unions
⚫ Trade union is an association of workers formed in order to protect the
interests of the workers.
Perspectives of trade unions
⚫ Monopoly perspective
The monopoly perspective is based upon a belief that unions behave as
labour-market monopolies, raising wages and causing economic
inefficiencies and adverse effects for workers and firms
⚫ The collective-voice perspective
Workers have several choices when they feel dissatisfied with their jobs:
they can do nothing, they can leave their organisation or industry, or they
can complain and try to improve the conditions around them. In work
settings the voice of one employee is rarely effective in bringing about
change. In addition, many workers fear termination and victimisation for
revealing their true feelings to management. For these reasons, most
workers find it easier to fight for work improvements when in a union.
Banding together and creating a ‘collective voice’ offers protection from
the fear of raising concerns with management.
⚫ Collective bargaining
Collective bargaining occurs when workers group together to negotiate
employees’ wages and benefits, to create or revise work rules, and to
resolve disputes or violations of the labour contract with management
representatives.
⚫ Collective bargaining should be viewed as a two-way process in order that
the basic interests of both parties are protected. It is important to
appreciate that both sides (employee and employer) have a responsibility
to each other and are ultimately dependent on each other for survival. The
end result of the collective bargaining process will be a formal agreement
between workers and management that specifies the conditions of
employment and the employee–management relationship over a mutually
agreed period of time
Issues Dealt in Collective bargaining
⚫ wage-related issues such as basic wage rates, cost-of-living adjustments,
wage differentials, overtime rates;
⚫ supplementary economic benefits, which include pension plans, paid
holidays, health insurance plans, dismissal pay,
⚫ institutional issues such as the rights and duties of employers, employees
and unions
⚫ administrative issues such as seniority, employee discipline and discharge
procedures, employee health and safety, etc.
Types of collective bargaining
⚫ Distributive bargaining
⚫ Integrative bargaining
Employee Discipline

⚫ According to Richard D. Calhoon, “Discipline is the force that

prompts individuals or groups to observe rules, regulations, standards
and procedures deemed necessary for an organization.”
Types of Discipline
⚫ Positive Discipline: Positive Discipline implies discipline without
punishment. The main aim is to ensure and encourage self-discipline
among the employees. The employees in this case identify the group
objectives as their own objectives and strive hard to achieve them.
The employees follow and adhere to the rules and regulations not due
to the fear of punishment but due to the inherent desire to harmonize
in achieving organizational goals.
⚫ Negative Discipline: Employees adhere to rules and regulations in
fear of punishment which may be in form of fines, penalties,
demotions or transfers. In this case, the employees do not perceive
organizational goals as their own goals.
 Characteristics of a Sound Disciplinary System (Red Hot Stove
Rule)
⚫ Immediate- Just as when you touch a red hot stove, the burn is immediate,
similarly the penalty for violation should be immediate/ immediate
disciplinary action must be taken for violation of rules.
⚫ Consistent- Just as a red hot stove burns everyone in same manner over
time; likewise, there should be high consistency in a sound disciplinary
system.
⚫ Impersonal- Just as a person is burned because he touches the red hot
stove and not because of any personal feelings, likewise, impersonality
should be maintained by refraining from personal or subjective feelings.
⚫ Prior warning and notice- Just as an individual has a warning when he
moves closer to the stove that he would be burned on touching it, likewise,
a sound disciplinary system should give advance warning to the
employees as to the implications of not conforming to the standards of
Worker’s Participation in Management
⚫ Workers’ participation in management is an essential ingredient of
Industrial democracy.
⚫ Traditionally the concept of Workers’ Participation in Management
(WPM) refers to participation of non-managerial employees in the
decision-making process of the organization.
⚫ Workers’ participation in management implies mental and emotional
involvement of workers in the management of Enterprise.
⚫ According to Keith Davis, “Participation refers to the mental and
emotional involvement of a person in a group situation which encourages
him to contribute to group goals and share the responsibility of
achievement”.
Objectives of Participative Management
⚫ To have democratic participation in decision-making
⚫ To provide opportunity for expression and to provide a sense of
importance to workers.
⚫ To raise level of motivation of workers by closer involvement.
⚫ To develop ties of understanding leading to better effort and harmony.
⚫ To act on a panacea for solving industrial relation problems.
⚫ To achieve greater industrial efficiency
Methods of Participative Management
⚫ Representation at Board level
⚫ Financial participation
⚫ Collective Bargaining
⚫ Quality circles
⚫ Suggestion schemes
⚫ Works Committees/Joint Management Councils
⚫ TQM
⚫ Employee Empowerment
 The communication and participation mechanisms required for an
effective involvement culture have been classified by Holden as follows:
⚫ downwards communication from managers to employees: newsletters,
briefings, journals, etc. to keep employees informed of organizational
priorities and directions and the results of involvement polices;
⚫ upwards communications from employees to managers: quality circles,
suggestion schemes, etc. to ensure that employees’ opinions and
perspectives influence the direction and policies of the organization;
⚫ financial participation; profit sharing, share ownership, etc. in order that
employees have a genuine stake in and commitment to the business;
⚫ representative participation: works councils, consultative committees,
collective bargaining, etc. in order that employees have a real voice in
decisions affecting their role and employment.
Employee empowerment
⚫ The most recent stage in the evolution of the employee involvement
concept is ‘employee empowerment’. This involves providing
employees with responsibility for their own tasks, deciding how they
will be achieved and who will lead them. Thus, rather than
attempting to control employees, proponents of empowerment seek
to give employees the responsibility for improving their own
performance
Employee empowerment
⚫ Employee empowerment is a business philosophy that emphasizes
the importance of allowing employees to have greater autonomy and
control over their day-to-day duties. But at the same time they are
accountable for their actions
Employees' health, safety & welfare
⚫ People are an organization's most valuable asset and so safeguarding
their health, safety and welfare should be central to an organization's
HRM strategy.
⚫ Threats to health and safety come from a myriad of sources, for
example the physical nature of tasks, the attitudes of the employees,
the culture of the industry, cost and time pressures, the uncertain
environment, client and management priorities, etc.
Workplace health and safety hazards
⚫ Safety hazards are aspects of the work environment that have the potential
to cause immediate and sometimes violent harm or even death. Examples
of safety hazards on a construction site include poorly maintained
equipment, unsafe machinery, exposure to hazardous chemicals, and so
on. Potential injuries include damaged eyesight or body parts; cuts,
sprains, burns, bruises, broken bones and electric shock.
⚫ Health hazards are aspects of the work environment that slowly and
cumulatively (often irreversibly) lead to a deterioration of health. The
person may develop a chronic or life-threatening illness or become
permanently disabled. Typical causes are physical and biological hazards,
toxic and carcinogenic dusts and chemicals, and stressful working
conditions. These can cause cancer, heavy-metal and other poisoning,
respiratory disease and psychological disorders like depression.
Human Resource Management – Module 4

Contemporary Trends in HRM

 Diversity Management

Diversity management is the action taken by an organization to ensure

the inclusion of employees from a range of backgrounds.

The concept of multicultural and diversity management encompasses

acceptance and respect, recognition and valuing of individual
differences.

By not only hiring employees from a variety of backgrounds (diversity)

but also making them feel welcome (inclusion), an organization can
expect to see a stronger culture and improved business results.
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 Benefits of Diversity Management

Expanding the talent pool

Encouraging diverse perspectives and innovation
Enhancing customer satisfaction
Improving organizational performance
Being a source of competitive advantage
Helping to build a better reputation

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 Diversity and Inclusion Statement

Adobe’s diversity and inclusion statement:

“Adobe for All”

“At Adobe, we believe that when people feel respected and

included they can be more creative, innovative, and successful.
While we have more work to do to advance diversity and
inclusion, we’re investing to move our company and industry
forward.”

Nike’s DEI statement:

“Nike is working to build a more diverse, inclusive team that
reflects the athletes and communities where we live, work and
play”
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 Diversity and Inclusion Statement

Google

Build For Everyone

“Google is committed to continuing to make diversity, equity, and
inclusion part of everything we do—from how we build our
products to how we build our workforce.

Google is growing to fulfill that vision. In the past few years,

we’ve doubled in size. Operating at this scale brings an elevated
level of responsibility to everything we do—including a workforce
that’s more representative of our users, and a workplace that
creates a sense of belonging for everyone”

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7
Cultural Diversity
Cultural diversity is about bringing people together from a diverse set of
backgrounds and cultures, then creating an environment that recognizes and
respects the differences between those cultures and backgrounds and enables
their effective contribution to the organization or society.
 Geert Hofstede Model of Cultural Dimensions

• Power distance
• Individualism and collectivism
• Masculinity and Feminity
• Uncertainty avoidance
• Long-term orientation
Barriers to Cross-Cultural Understanding
❖ Language and culture
❖ Non-verbal communication and culture
Communication through the body
✔ Eye contact
✔ Gestures
✔ Grooming
✔ Olfaction
✔ Facial expression
✔ Posture and poise
✔ Touch
❖ Communication through vocal characteristics
❖ Communication through the use of time
❖ Communication through the use of space
❖ Communication through seating arrangements & furniture
Greeting etiquette

Presentation styles
 Geert Hofstede Dimensions –Motivation & Leadership

• Power distance
• Individualism and collectivism
• Masculinity and Feminity
• Uncertainty avoidance
• Long-term orientation
Theories of Motivation and Culture

1. Maslow’s theory
2. Herzberg’s two factor theory
3. Equity theory
4. Valence Expectancy theory
5. McClelland’s theory
HR Analytics
“HR will not be replaced by data analytics, but HR who do
not use data and analytics will be replaced by those who
do.”
― Nadeem Khan
 HRM as Strategic Business Partner
• HRM can be transformed as a strategic business
partner which can be achieved when moved into
data-driven decision-making (Dahlbom et al., 2020).
• It is mainly possible when HRM makes maximum use
of HR Analytics to attain the business outcomes
What is HR Analytics?

❖ HR analytics is the process of collecting

and analyzing HR data in order to improve
an organization’s workforce performance
through better decision making

❖ It is also referred as talent analytics,

people analytics, workforce analytics
Levels of HR Analytics

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 Importance of HR Analytics
• Better decision making
• Helps in effective HR systems/functions/processes
• Tackle problem areas
• Improves organization’s performance
• Helps the organization to achieve it’s goals
Drivers of HR Analytics
• Rise in competitive environment
• War for talent
• Rise in evidence-based decision making culture
• Success stories of HR analytics
• Availability of data
• Tools and technologies
• Shift in focus of HR function
• Changing work force generations
• Focus on accountability
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Examples of HR Analytics – Real time cases

Credit Suisse was able to predict who might quit the company. It was
one of the first examples of the now very popular employee churn
analytics.
Not only were the analysts at Credit Suisse able to predict who might
quit, but they also could identify why these people might quit. This
information was provided anonymously to managers so they could
reduce turnover risk factors and retain their people better.
In addition, special managers were trained to retain the high
performing employees who had a high flight risk. In total, this
program saved Credit Suisse approximately $ 70,000,000 a year.
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Examples of HR Analytics – Real time cases

Some organizations “can precisely identify the value of a 0.1%

increase in engagement among employees in a particular store.”
Example of Best Buy, where a 0.1% increase in engagement results
in over $ 100,000 in annual operating income per store.
The significance of this relationship motivated Best Buy to make
employee engagement surveys quarterly rather than annually.

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Examples of HR Analytics – Real time cases

Shell was able to increase efficiency of assessment process,

improved candidate quality, reduced cost in assessment process
and reduced hours of assessor.
Analytics helped Experian to reduce its employee attrition to 2 - 3
percent over 18 months with a net saving of 8 to 10 million
dollars, by building a model that can foresee flight hazard.

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 Examples of HR Analytics – Real time cases

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Examples of HR Analytics – Real time cases
Keeping key talent at Nielsen. Nielsen created a similar predictive
model back in 2015.
This exercise provided multiple insights, including that the first year
mattered the most. For example, the first check-in with their manager
had to happen within a certain time span after hiring, otherwise, it would
trigger a notification. This was a proven, important condition for
first-year retention.

A significant outcome was that the people with the highest flight risk in
the next six months were approached and the company was able to
move 40% to a new role. Making these lateral moves increased an
associate’s chance of staying with the company by 48%.
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 Engagement at Clarks
Shoe retailer Clarks looked into the relationship between engagement and
financial performance. The first question they asked was: is there a connection
at all? According to the report, the results showed that there was indeed a
connection. Engagement leads to higher business performance. In Clarks’ case,
every 1% (percentage point) improvement in engagement, lead to an
improvement of 0.4% (percentage point) in business performance.
To learn from this and to make it more actionable, the team also analyzed the
characteristics of the 100 best performing stores, both quantitatively and
qualitatively. They found that there was an optimum team size in the store
and that the length of tenure of a store manager was a significant
predictor of performance. This meant that switching store managers
frequently lead to lower performance.
With these insights, the team was able to create a blueprint for high-performing
stores. In addition, they created an engagement toolkit that managers can use
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to improve performance.
 HR Analytics - Business Strategy – Business outcomes -Competitive Advantage Integration
CASE STUDY: Connecting HR data and business outcomes at Lowe’s
Lowe’s is an American company which operates a chain of retail home improvement and
appliance stores. The company has been using a data-driven HR business model to
highlight the connections between HR decisions and business outcomes.

Results and impact

One of the major findings from the analysis was the relationship between employee
engagement, customer satisfaction and the impact on revenue. By
encouraging greater dialogue (including asking customers a specific set of questions)
between employees and customers, customers felt they were
having a better store experience and spent 4% more

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HR analytics linkage to business outcomes

JPMorgan Chase & Co built a predictive model for better recruitment, that
can find the right person for the right role at the right time and the one who
stays with the organization for a long time, making it a data driven decision
making and providing positive business outcomes.

Harrah’s entertainment benefited by HR Analytics linking health and

wellness programs with employee engagement and profit

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 Case: Age and business performance

A study conducted by Lancaster University Management School, which

looked at more than 400 McDonald’s restaurants in the UK, found that
employees aged over 60 had a major impact on the company’s business
performance. The research showed that levels of customer satisfaction were
on average 20% higher in restaurants that employed at least one worker
over 60. “The research clearly demonstrates the very real business value of
recruiting an age-diverse workforce,” says Professor Paul Sparrow, director
of the Centre for Performance-Led HR at Lancaster University. “For
McDonald’s, we can show that the presence of older employees improves
customer satisfaction, and in a service-led business such as theirs, this
satisfaction drives the bottom line. Mature employees are a key part of the
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performance recipe.”
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 Green HRM

⚫ Green HRM refers to as a set of policies, practices, and systems

that stimulate the green behavior of a company's employees in order
to create an environmentally sensitive, resource-efficient, and
socially responsible organization..

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 Green HR practices

⚫ Green recruitment
⚫ Green training & development
⚫ Green performance management
⚫ Green compensation management

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 Green HR practices:
⚫Reducing usage of paper – Edocumentation
⚫On line interviews
⚫Teleconferencing
⚫Car sharing
⚫Encouraging employees use bicycles

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 Digital HRM

⚫ Digital HRM is the digital transformation of HR systems,

processes, services through the use of technologies that
helps in increasing their efficiency and effectiveness

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 Benefits of Digital HRM

⚫ Reduces time consumption for HR professionals

⚫ Allows HR processes to become more efficient
⚫ Allows HR to be data driven in many processes
⚫ Allows the company to adapt to a changing workforce.

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 Digital HRM applications

⚫ Recruitment – Applicant tracking system, AI powered job post

writers, recruiter chatbots
⚫ Onboarding software
⚫ Performance management softwares
⚫ Learning management
⚫ Compensation management
⚫ HR analytics

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HRIS (Human Resource Information System)
⚫ HRIS stands for Human Resources Information System. The HRIS is
a system that is used to collect, store & manage data on an
organization’s employees.
Benefits:
1. Record keeping
2. Ready access to information
3. Efficiency
4. Compliance
5. HR Analytics
6. HR strategy
 HR Audit
Human Resource Audit is a comprehensive evaluation of the
current HR systems and strategies, structure and competencies.
The purpose of Human Resources audit is to assess the
effectiveness of the Human Resources function.

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 Need/Objectives of HR Audit
▪ To determine the alignment of HR with business goals
▪ To review and improve effectiveness of various HR systems like manpower
planning and recruitment, training and development, performance appraisal,
etc
▪ To understand the reasons for lower employee productivity and employee
attrition; and improving the same
▪ To determine whether HRM function is in compliance with various HR laws
▪ To promote professionalism among employees and company
▪ To create high return on investment on HR

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 Human Resource Accounting
Flamhoitz defined HRA as ‘Accounting for people as an organizational
resource. It involves measuring the costs incurred by business firms
and other organizations to recruit, select, hire, train and develop human
assets. It also involves measuring the economic value of people to the
organization’.
Methods of Human Resource Valuation
Cost based approaches
▪Historical cost method
▪Replacement cost method
▪Opportunity cost method
▪Standard cost method
Present Value based approaches
• Present value of future earnings model - Lev and Schwartz Model
• Rewards valuation model - Flamholtz Model
 Bharat Heavy Electricals Ltd (BHEL);
Cement Corporation of India;
Hindustan Petroleum Corporation Limited (HPCL)
Minerals and Metals Trading Corporation of India (MMTC);
Oil and Natural Gas Commission (ONGC);
Hindustan Shipyard Ltd;
Steel Authority of India Ltd (SAIL);
Tata Engineering and Locomotive Works (TELCO).
Associated Cement Company (ACC).
Infosys technologies limited
These companies have followed the present value of future earnings
model of Lev and Schwartz
 Labour Codes
29 Labour Laws have been codified into 4 Labour Codes.
1.Wage code
2.Social security code
3.Occupational Safety, Health and Working conditions code
4.Industrial Relations code
“To win in the marketplace you must first win
in the workplace.”
– Doug Conant, CEO of Campbell’s Soup

https://conantleadership.com/
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Key challenging issue:

Employee engagement

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 EMPLOYEE ENGAGEMENT

Employee engagement is the level of commitment and

involvement of an employee towards the organization and
its values.

Engagement is the extent to which an employee puts

discretionary effort into his or her, beyond the required
minimum to get the job done, in the form of extra time,
brain power or energy.

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Employee satisfaction vs.
Employee Engagement

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OUTCOMES OF EMPLOYEE ENGAGEMENT

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Employee engagement is a
two-way street

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Aon Hewitt’s Engagement Model

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 Findings of HBR Analytic Services Report

The findings of a new Harvard Business Review

Analytic Services report of more than 550 executives
around employee engagement—research that featured
in-depth interviews with 12 best-practice company
leaders
71% of respondents ranked employee engagement as
very important to achieving overall organizational
success.
Engaged employees work harder; are more productive;
and most important, feel successful. Employee success
and business success are inextricably linked.
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 Important Driver of Employee Engagement

“People will forget what you did, but people will never forget
how you made them feel”
-Maya Angelow

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“ The way your employees feel is the way your
customers will feel. And if your employees
don’t feel valued, neither will your customers.”
- Sybil F. Stershic
Employee engagement has powerful implications
for organizations; consequently it is necessary to
create the conditions for employee engagement.
As employee engagement is an effective tool for
the organizations, lot of scope is there for the HR
managers to work on enhancing employee
engagement which can bring good results for the
organization.

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When people are financially invested,
they want a return.
When people are emotionally invested,
they want to contribute.
-Simon Sinek

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