Introduction To HRM
Introduction To HRM
Introduction to HRM
Definition
According to Gary Dessler, Human Resource Management (HRM) is defined as:
"Human Resource Management consists of the activities, policies, and practices that are
used to manage the workforce."
Function of HRM
Functions of Human Resource Management (HRM)
Performance Management
Employee Relations
7. Ensuring compliance with tax laws and regulations related to compensation and benefits
Importance of HRM
Importance of Human Resources Management (HRM):
1. Improved Productivity: HRM helps to recruit, train, and develop employees, leading to
improved productivity and efficiency.
2. Better Employee Relations: HRM fosters positive employee relations, which leads to
increased job satisfaction, reduced turnover, and improved morale.
3. Talent Management: HRM helps to attract, retain, and develop top talent, which is essential
for organizational success.
4. Compliance with Labor Laws: HRM ensures compliance with labor laws and regulations,
reducing the risk of legal issues and fines.
5. Cost Savings: HRM helps to reduce costs associated with recruitment, training, and employee
turnover.
6. Improved Decision Making: HRM provides valuable insights and data to inform
organizational decision making.
8. Supports Business Strategy: HRM aligns with the organization's overall business strategy,
helping to drive business outcomes and achieve goals.
9. Risk Management: HRM helps to identify and mitigate risks associated with employee
management, such as workplace conflicts and accidents.
10. Employee Engagement: HRM fosters employee engagement, which leads to improved
productivity, retention, and overall business performance.
11. Diversity and Inclusion: HRM promotes diversity and inclusion, which leads to a more
innovative, creative, and productive workforce.
12. Succession Planning: HRM helps to identify and develop future leaders, ensuring a smooth
transition and minimizing disruption to the organization.
13. Employee Well-being: HRM promotes employee well-being, which leads to improved
physical and mental health, reduced absenteeism, and improved productivity.
14. Organizational Development: HRM helps to drive organizational development, including
change management, restructuring, and cultural transformation.
15. Reputation and Brand: HRM helps to build and maintain a positive reputation and brand,
which is essential for attracting top talent, customers, and investors.
Ancient Civilizations
Early Practices: In ancient China, Greece, and Rome, methods for selecting leaders and
organizing labor were developed. These early practices laid the groundwork for modern HRM
Industrial Revolution
19th Century: The Industrial Revolution marked a significant shift. The rapid growth of
factories and the need to manage a large workforce led to the emergence of personnel
management. Pioneers like Robert Owen and Charles Babbage emphasized the importance of
worker welfare and efficient labor management.
HRM has continuously evolved to meet the changing needs of organizations and their
employees, making it a crucial aspect of modern business management.
Leadership style
Definition of Leadership
Leadership is the ability to influence, motivate, and enable others to contribute toward the
effectiveness and success of the organizations of which they are members. It involves setting a
vision, inspiring others, and guiding them towards achieving common goals.
Leadership style:
1. Autocratic Leadership
Definition: A leader makes decisions without consulting others, often relying on their own
judgment and expertise.
Example: Carlos Ghosn, former CEO of Nissan, was known for his autocratic leadership style.
He made decisions quickly and decisively, often without consulting others.
2. Democratic Leadership
Definition: A leader involves others in decision-making, encouraging participation and
feedback.
Example: Mary Barra, CEO of General Motors, is known for her democratic leadership style.
She involves her team in decision-making and encourages open communication.
3. Laissez-Faire Leadership
Definition: A leader gives employees a lot of freedom and autonomy, often providing minimal
guidance or supervision.
4. Transformational Leadership
Definition: A leader inspires and motivates others to achieve a common goal, often through a
shared vision or mission.
5. Transactional Leadership
Definition: A leader focuses on exchanging rewards for desired behavior, often through a system
of incentives and punishments.
Example: Tim Cook, CEO of Apple, is an example of a transactional leader. He focuses on
achieving specific goals and rewards employees for their achievements.
6. Servant Leadership
Definition: A leader prioritizes the needs of others and focuses on their growth and
development, often through coaching and mentoring.
Example: Satya Nadella, CEO of Microsoft, is an example of a servant leader. He prioritizes the
needs of his employees and focuses on their growth and development.
7. Situational Leadership
Definition: A leader adapts their style to fit the situation and the needs of their team, often
through a combination of different leadership styles.
Example: Jensen Huang, CEO of NVIDIA, is an example of a situational leader. He adapts his
leadership style to fit the needs of his team and the situation.
8. Charismatic Leadership
Definition: A leader inspires and motivates others through their personality and charm, often
through a shared vision or mission.
Example: Elon Musk, CEO of Tesla, is an example of a charismatic leader. He inspires and
motivates others through his personality and charm.
9. Coaching Leadership
Definition: A leader focuses on developing the skills and abilities of their team members, often
through coaching and mentoring.
Example: A government official who follows strict protocols and procedures to ensure
compliance with regulations is an example of a bureaucratic leader.
Example: Mary Dillon, CEO of Ulta Beauty, is an example of a participative leader. She
involves her team in decision-making and encourages open communication.
xample: Google’s workforce diversity report shows that 34.6% employees and 46.6% minority
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employees.
Impact:
Organizations must adapt to these demographic shifts by:
Impact:
To address these changes, organizations should:
Characteristics:
Globalization Trend
Define: Globalization means companies expanding their business to new markets abroad.
This includes:
Examples of Globalization
Benefits of Globalization
Increased international trade
Economic growth worldwide
Access to new markets and customers
Competitive advantage through lower costs
Challenges of Globalization
Increased international competition
Pressure to reduce costs and improve productivity
Job losses in certain industries
Growing income inequality
Impact on Businesses
Multinational companies expanding abroad
Transfer of operations to lower-cost locations (offshoring)
Hiring employees in foreign countries
Managing cultural and language differences
Role of HR in Globalization
Managing the "people" aspects of globalization
Recruiting and training employees abroad
Developing global HR strategies
Ensuring compliance with labor laws in different countries
Offshoring
Transferring jobs to lower-cost locations abroad
Globalization Statistics
US imports and exports grew from $562 billion in 1980 to $5.2 trillion recently
Over 10,000 GE employees in France
Thousands of Toyota sales employees in America
HR plays a crucial role in managing the people's aspect of globalization and ensuring successful
international expansion.
Economic Trends:
The global economy faced challenges from 2007-2015.
Consequences
Recovery (2015-2018)
Unemployment fell to 4%
GDP grew at 4%
Federal Reserve raised interest rates to control inflation
Challenges Ahead
Slowing productivity growth
Automation replacing jobs
Potential for slowing economic growth
Causes:
Consequences
Employers face difficulties finding enough workers
Talent management becomes a top concern for companies
Many college graduates work in jobs requiring less than a four-year degree.
Skills Gap
Difficulty finding skilled workers in certain industries (e.g., manufacturing)
Examples:
1. Changing Nature of Jobs: Technology affects all sorts of jobs, not just tech jobs.
Example: Alcoa plant in Iowa uses computers at workstations for employee communication and
machine control.
Examples: mobile apps, artificial intelligence, social media, cloud computing, data analytics,
and augmented reality.
Technologies in HRM
1. Social Media: Recruiting, employer branding, and employee engagement.
Accenture estimates 80% of new recruits will come from social media.
3. Cloud Computing: Real-time feedback, goal tracking, and freelance worker management.
Examples: SAP, Kronos, and Knack.
6. Augmented Reality (AR): Transforming data into digital summaries and images.
Environment
Define Environment: Environment refers to the external and internal factors that surround and
influence an individual, organization, or system. It encompasses the physical, social, cultural,
economic, and technological conditions that shape and impact behavior,
decisions, and outcomes.
According to HRM: In the context of Human Resources Management (HRM), the environment
refers to the internal and external factors that influence the management of an organization's
human resources. These factors can impact HRM practices, such as recruitment, selection,
training, development, and employee relations.
External Environment
External factors that influence Human Resource Management (HRM):
2. Political Environment: Government policies, political stability, and regulations can affect
HRM through labor laws, tax policies, and trade restrictions.
4. Social Factors: Societal norms, cultural diversity, and demographic changes influence HR
practices related to workplace culture, employee engagement, and diversity initiatives.
5. Legal Factors: Employment laws, health and safety regulations, and anti-discrimination laws
guide HR policies and practices to ensure compliance and mitigate legal risks.
6. Environmental Sustainability: Increasing focus on sustainability and corporate social
responsibility affects HRM by promoting eco-friendly practices and ethical labor standards.
8. Demographic Changes: Shifts in population age, gender, and ethnicity impact workforce
planning, retirement policies, and diversity management.
9. Labor Market Conditions: Availability of skilled labor, competition for talent, and labor
market trends influence recruitment strategies and employee retention.
10. Competitive Environment: The need to attract and retain top talent in a competitive market
drives HR to innovate in areas like employee development, compensation, and benefits.
Internal Environment
The internal environment of Human Resource Management (HRM) consists of various factors
within an organization that influence HR practices and policies. Here are some key internal
factors in detail:
1. Organizational Culture
Organizational culture refers to the shared values, beliefs, and norms that shape the behavior and
practices within an organization. It influences how employees interact, make decisions, and
approach their work. A strong, positive culture can enhance employee engagement and
productivity, while a negative culture can lead to conflicts and high turnover.
2. Organizational Structure
3. Organizational Objectives
The goals and objectives of an organization guide HRM practices. HR strategies must align with
the overall business objectives to ensure that the organization has the right talent to achieve its
goals. This includes workforce planning, talent acquisition, and development programs.
5. Unions
Trade unions represent the interests of employees and can influence HRM practices. HR
activities such as recruitment, selection, training, compensation, and industrial relations are often
carried out in consultation with union leaders. Effective union-management relations are crucial
for maintaining workplace harmony.
6. Professional Bodies
Professional bodies, such as the Society for Human Resource Management (SHRM) or the
National Institute of Personnel Management (NIPM), set standards and provide guidelines for
HR practices. They offer certifications, training, and resources that help HR professionals stay
updated with best practices and ethical standards.
7. Organizational Conflict
8. Leadership Style
The leadership style of an organization’s management team influences HRM. Leaders who are
supportive and inclusive tend to foster a positive work environment, whereas autocratic
leadership can lead to employee dissatisfaction and high turnover. Leadership development
programs are essential for cultivating effective leaders.
9. Employee Relations
The relationship between employees and management affects HRM practices. Positive employee
relations lead to higher job satisfaction, loyalty, and productivity. HR plays a key role in building
and maintaining good employee relations through effective communication, recognition
programs, and addressing employee concerns.
The availability and use of technology within an organization impact HRM. Advanced HR
software and systems can streamline HR processes such as recruitment, payroll, performance
management, and employee data management. Keeping up with technological advancements is
crucial for efficient HR operations.
Understanding these internal factors helps HR professionals develop strategies that align with the
organization’s needs and goals, ensuring a productive and positive work environment.
Gender discrimination
Gender discrimination occurs when individuals are treated unfairly or unequally based on their
gender. This can affect anyone, but it most commonly impacts women, girls, and gender-diverse
people. Here are some key points to understand:
Definition:
Gender discrimination involves negative treatment or denial of opportunities and rights based on
gender. This can manifest in various forms, such as:
Unequal pay: Women often earn less than men for the same work.
Examples
Workplace Discrimination: Women might be overlooked for promotions or paid less than their
male counterparts.
Educational Barriers: Girls in some regions may not have the same access to education as
boys.
Healthcare Inequality: Gender biases can lead to inadequate medical treatment for women and
gender-diverse individuals.
Impact
Gender discrimination not only harms individuals but also society as a whole. It perpetuates
inequality, limits economic growth, and hinders social progress.
Advocacy: Supporting movements and organizations that fight for gender rights
Sexual harassment
Sexual harassment is any unwelcome behavior of a sexual nature that makes someone feel
uncomfortable, intimidated, or humiliated. It can occur in various settings, including workplaces,
schools, public spaces, and online. Here are some key points to understand:
Definition
Sexual harassment involves unwanted sexual advances, requests for sexual favors, and other
verbal or physical conduct of a sexual nature. This behavior can create a hostile or offensive
environment for the victim.
Examples
1. Verbal Harassment: Making sexual comments about someone's appearance, telling sexually
explicit jokes, or making inappropriate sexual remarks.
3. Physical Harassment: Unwanted touching, hugging, kissing, or any other physical contact of
a sexual nature.
4. Online Harassment: Sending unsolicited sexual messages, sharing explicit content without
consent, or cyberstalking.
Impact
Sexual harassment can have severe emotional, psychological, and physical effects on victims. It
can lead to anxiety, depression, loss of self-esteem, and even physical health issues. It also
creates a toxic environment that can affect productivity and overall well-being.
Education and Training: Raising awareness about what constitutes sexual harassment and
how to prevent it.
Policies and Procedures: Implementing clear policies and procedures for reporting and
addressing sexual harassment.
Support Systems: Providing support for victims, such as counseling services and legal
assistance.
Understanding and addressing sexual harassment is crucial for creating safe and respectful
environments for everyone.
Diversification
Diversification having a workplace where people from different backgrounds and experience
work together. They include people of different ages, genders, cultures and abilities.
Cultural diversification
Cultural diversification refers to the process of incorporating and valuing diverse cultural
backgrounds, practices, and perspectives within an organization or community. This involves
creating an environment where individuals from different cultural backgrounds feel valued,
respected, and empowered to contribute.
Different cultural values, norms, and practices can lead to misunderstandings and conflicts. For
instance, cultural differences in communication styles, work ethics, and conflict resolution
approaches can create challenges. To overcome these challenges, organizations and communities
must promote cross-cultural understanding and provide training on cultural competence.
2. Communication Barriers
Different languages and cultural communication styles can create challenges. Language barriers
can hinder effective communication, while cultural differences in communication styles can lead
to misunderstandings. To address these challenges, organizations and communities can provide
language training, interpretation services, and cultural orientation programs.
Unconscious biases and stereotypes can affect how individuals interact with and perceive others.
These biases can lead to discriminatory behavior, unequal treatment, and a lack of inclusion. To
overcome these challenges, organizations and communities must provide training on
unconscious bias, promote diversity and inclusion initiatives, and establish policies and
procedures that promote fairness and equity.
4. Resistance to Change
Some individuals may resist changes brought about by diversification initiatives. This resistance
can stem from fear, uncertainty, or a sense of loss. To address this challenge, organizations and
communities must communicate effectively about the benefits of diversification, provide training
and support, and involve individuals in the decision-making process.
5. Lack of Inclusion
Failing to create an inclusive environment can lead to feelings of exclusion and marginalization.
Inclusive environments promote a sense of belonging, value diverse perspectives, and provide
opportunities for growth and development. To create an inclusive environment, organizations
and communities must promote diversity and inclusion initiatives, provide training on cultural
competence, and establish policies and procedures that promote fairness and equity.
India's caste system is a complex system of social stratification based on birth, occupation, and
religious affiliation.
The Israeli-Palestinian conflict is a longstanding conflict between Jews and Arabs over land,
identity, and religious claims.
The LGBTQ+ rights movement is a global movement advocating for the rights and inclusion of
lesbian, gay, bisexual, transgender, and queer individuals, often facing resistance from
conservative religious groups.
Women empowerment refers to the process of giving women the power and autonomy to make
decisions about their own lives, free from patriarchal norms and stereotypes. Cultural conflicts
arise when traditional or conservative values clash with modern or progressive views on
women's rights.
Female genital mutilation (FGM) vs. human rights and bodily autonomy
Women's dress codes and modesty vs. personal freedom and self-expression
Women's participation in politics, education, and the workforce vs. traditional gender
roles
2. Entertainment
Entertainment encompasses various forms of leisure activities, such as music, dance, film, and
theater. Cultural conflicts arise when different cultural groups have varying values, norms, and
expectations regarding entertainment.
Crime and sin refer to actions or behaviors that are considered wrong or immoral by societal or
cultural standards. Cultural conflicts arise when different cultural groups have varying
definitions of crime and sin, or when they disagree on the severity of punishment or
consequences.
Attitudes towards other religions can vary greatly across cultures, ranging from tolerance and
acceptance to intolerance and hostility. Cultural conflicts arise when different cultural groups
have varying attitudes towards other religions, or when they disagree on the role of religion in
public life.
5. State Religion
A state religion refers to a religion that is officially recognized and endorsed by the government.
Cultural conflicts arise when different cultural groups disagree on the role of religion in public
life, or when they advocate for the establishment of a different state religion.
6. State Law
State law refers to the legal framework that governs a country or society. Cultural conflicts arise
when different cultural groups disagree on the content, application, or interpretation of state
laws, or when they advocate for changes to the legal framework.
2. Promote diversity and inclusion initiatives: Establish policies and procedures that promote
diversity and inclusion, and provide opportunities for growth and development.
4. Celebrate diversity: Celebrate different cultures, traditions, and perspectives, and promote a
sense of belonging and inclusion.
5. Monitor progress: Monitor progress, evaluate the effectiveness of diversity and inclusion
initiatives, and make adjustments as needed.
Diversity Management
Diversity management refers to the systematic and planned approach to managing diversity in
the workplace or organization. It involves creating an inclusive environment where all
employees feel valued, respected, and empowered to contribute. Effective diversity management
promotes a culture of inclusion, respect, and empathy, leading to improved employee
engagement, productivity, and retention.
1. Stereotyping and bias: Unconscious biases and stereotypes can lead to discriminatory
behavior and unequal treatment.
2. Cultural clashes: Different cultural values, norms, and practices can lead to
misunderstandings and conflicts.
3. Resistance to change: Some individuals may resist changes brought about by diversity
initiatives.
4. Lack of inclusion: Failing to create an inclusive environment can lead to feelings of exclusion
and marginalization.
5. Harassment and bullying: Harassment and bullying can create a hostile work environment
and undermine diversity efforts.
Managing Diversity
Managing diversity involves several strategies, including:
2. Providing diversity training: Offer training on diversity, inclusion, and cultural competence.
3. Implementing diversity initiatives: Develop and implement initiatives that promote diversity
and inclusion.
5. Addressing conflicts: Address conflicts and issues promptly, and provide support and
resources to employees.
Reverse Discrimination
Reverse discrimination refers to the perception that diversity initiatives or affirmative action
policies unfairly advantage certain groups, particularly minority groups, over majority groups.
However, this perception is often based on misconceptions and a lack of understanding of the
historical and systemic inequalities faced by marginalized groups.
In reality, diversity initiatives and affirmative action policies aim to address these inequalities
and promote equal opportunities for all. They do not seek to disadvantage majority groups, but
rather to create a level playing field and promote diversity and inclusion.
Emotional management
Emotional management refers to the ability to recognize, understand, and manage one's own
emotions, as well as the emotions of others. It involves being aware of and influencing one's
emotional states to achieve goals, build relationships, and maintain well-being.
EQ Vs IQ
EQ (Emotional Quotient) and IQ (Intelligence Quotient) are two distinct measures of human
intelligence.
Intelligence Quotient
IQ refers to the measure of an individual's cognitive abilities, such as:
Emotional Quotient
EQ refers to the measure of an individual's emotional intelligence, which includes:
3. Development: IQ is relatively stable and difficult to change, while EQ can be developed and
improved through practice and training.
4. Importance: Both IQ and EQ are important, but EQ is increasingly recognized as a key factor
in personal and professional success.
Why EQ is Important
1. Better Relationships: EQ helps individuals build stronger, more meaningful relationships.
3. Increased Productivity: EQ helps individuals manage stress, anxiety, and other emotions that
can impede productivity.
Emotion
Definition
Emotions are complex psychological and physiological states that people experience in response
to various internal and external stimuli. They are intense, subjective, and multifaceted
experiences that influence an individual's thoughts, behaviors, and interactions. Emotions
encompass a wide range of feelings, from basic emotions like happiness, sadness, and fear, to
more complex emotions like love, anger, and jealousy. They play a vital role in shaping human
behavior, relationships, and overall well-being, and are essential for effective communication,
decision-making, and emotional intelligence. There are 27 types of emotions.
Dominant Emotion:
1.Fear
3.Anger
Anger is a strong and intense emotion characterized by feelings of hostility, frustration, and
antagonism towards a person, situation, or object. It is often triggered by a perceived injustice,
threat, or provocation, and can manifest physically, verbally, or behaviorally
4.Mood
When we sustained our emotions for long term then become mood.
Mood is a temporary and pervasive emotional state that influences an individual's thoughts,
feelings, and behaviors. It is a subtle and often unconscious emotional experience that can be
either positive (e.g., cheerful, relaxed) or negative (e.g., irritable, gloomy), and can last from a
few minutes to several days.
Phase of emotion
Self-Awareness
Self-awareness is the ability to recognize and understand your own emotions, values, and
motivations. This involves:
Understanding your values: Knowing what's important to you and what drives your decisions.
Recognizing your motivations: Understanding what drives you and what you want to achieve.
Self-Regulation
Self-regulation is the ability to manage and regulate your own emotions, impulses, and
behaviors. This involves:
Managing stress: Developing healthy coping mechanisms to deal with stress and anxiety.
Regulating emotions: Learning to control and manage your emotions, rather than letting them
control you.
Motivation
Motivation is the ability to use emotions to drive motivation, achieve goals, and pursue
opportunities. This involves:
Setting goals: Identifying what you want to achieve and setting realistic goals.
Finding meaning: Understanding what drives you and what gives your life meaning.
Empathy
Empathy is the ability to recognize and understand the emotions, needs, and perspectives of
others. This involves:
Active listening: Paying attention to others and trying to understand their perspective.
Perspective-taking: Putting yourself in others' shoes and trying to see things from their point of
view.
Social Skills
Social skills are the ability to apply emotional intelligence to interact and communicate
effectively with others, build strong relationships, and manage conflicts. This involves:
Building relationships: Developing and maintaining strong, healthy relationships with others.