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What is Human Resource Management?

Human resource (HR) management refers to the practices and policies one needs to carry out to deal with the personnel aspects of the management job Human resource management (HRM) is the effective management of people at work The goal: make workers more satisfied and productive When an organization is concerned about people, its total philosophy, culture, and orientation reflect it Every manager must be concerned with people, whether or not there is a human resources department

Basic HR Concepts
The bottom line of managing:

Getting results

HR creates value by engaging in

activities that produce the employee behaviors that the company needs to achieve its strategic goals.

Scope of HRM

Importance of HRM
attract and retain talent
train people for challenging roles develop skills and competencies
Good HR Practices help

promote team spirit

develop loyalty and commitment

increase productivity and profits improve job satisfaction enhance standard of living

Evolution of the Personnel Function

Concept The Commodity concept The Factor of Production concept The Goodwill concept What is it all about?
Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers. Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.

Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.

The Paternalistic concept/ Paternalism

Evolution of the Personnel Function

The Humanitarian concept
To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organization is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organization. There should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees.

The Emerging concept

Employees should be accepted as partners in the progress of a company. They should have a feeling that the organization is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

Personnel Function in India; Changing Scenario

Period 1920 30 Emphasis Welfare management Paternalistic practices Expanding the role to cover Labour, Welfare, Industrial Relations and Personnel Administration Status Clerical Roles Welfare administrator Appraiser Advisor Mediator Legal advisor Fire fighting

1940 60


1970 80

Efficiency, effectiveness Change agent dimensions added Emphasis on human


Integrator 1990s onwards Incremental productivity gains through human values, aspirations, assets Trainer Proactive, growth-oriented Educator Developer Counsellor Coach Mentor Problem solver

Image and Quality of HR/Personnel Manager

Managerial Qualities Intelligence Conceptual Qualities Analytical Qualities Motivational Qualities Emotional Stability Job Related Qualities Empathy Communication and persuasive quality Human relation quality Technical Quality

Functions of HRM
Operative Functions
Procurement Job Analysis HR planning Recruitment Selection Placement Induction Internal mobility Succession planning Human resources development strategies Development: Training Executive development Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration Incentives benefits and services Welfare Social security Empowerment Trade unions Employers associations Industrial relations Collective bargaining Participation Safety Maintenance: Health Integration: Grievances Discipline Teams and teamwork Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS

Managerial functions:
Planning Goals, standards, rules , procedure & forecasting Organizing Allocating task, Departmentaliz ing & authorizing Directing Maintaining morale motivating Controlling Setting stds, performance compare

Career planning

Job stress
Mentoring International HRM

HRM as a central subsystem in an organization

Product Subsystem

Finance Subsystem

HR Subsystem Procurement Training Compensation Appraisal Rewards

Marketing Subsystem

Technical Subsystem

HRM Policies

Plan of action or pre-determined course of action Personnel or Labor or Industrial Policies provides guidelines for a wide variety of employment relationships in the organisation. Servers as road map for managers Rules of conduct- Formulate, redefine, break into details, and decide on number of actions. Policies are life blood for the successful functioning of the personnel management Policies should respect human dignity and personal integrity and ensure fair treatment for all.

Translating Strategies into HRM Policies

In 1990s, Einsten was a single acute care hospital, treating the seriously ill. New strategy: Change Einsten into comprehensive health care network of facilities providing a full range of high quality services in local market. Einsten would require more flexible, adaptable, and professional approach to delivering services

Training and communications programs- understanding

companies new vision by every employee

Enriching work- More challenges and responsibilities, Flexible

assignment and team based work

Training and benefit program- promote personal growth,

quality work

Commensurate returns- employees rewards, nonmonetary


Improved selection, Orientation and dismissal procedure

Objectives of HRM

Objectives of the HRM Function

HRM contributions to organizational effectiveness: Helping the organization reach its goals Employing workforce skills and abilities efficiently Increasing job satisfaction, self-actualization, and quality of work life Communicating HRM policies to all employees Maintaining ethical policies and socially responsible behavior Managing change to the mutual advantage of individuals, groups, the enterprise, and the public

Objectives of the HRM Function

Increasing employees job satisfaction and selfactualization Employees must feel that the job is right for their abilities and that they are being treated equitably Satisfied employees are not automatically more productive However, unsatisfied employees tend to be absent and quit more often and produce lower-quality work Both satisfied and dissatisfied employees can perform equally in quantitative terms

Objectives of the HRM Function

Quality of work life (QWL) is a general concept that refers to several aspects of the job, including: Management and supervisory style Freedom and autonomy to make decisions on the job Satisfactory physical surroundings Job safety Satisfactory working hours Meaningful tasks The job and work environment should be structured to meet as many workers needs as possible

Objectives of the HRM Function

Communicating HRM policies to all employees: HRM policies, programs, and procedures must be communicated fully and effectively They must be represented to outsiders Top-level managers must understand what HRM can offer

Objectives of the HRM Function

Maintaining ethical policies and socially responsible behavior: HRM managers must show by example that HRM activities are fair, truthful, and honorable People must not be discriminated against Their basic rights must be protected These principles should apply to all activities in the HRM area

Objectives of the HRM Function

Managing increased urgency and faster cycle times: Firms are placing a growing emphasis on: Increasing customer service Developing new products and services Training and educating technicians, managers, and decision makers Shorter cycle times mean less time to: Train, educate, and assign managers Recruit and select talented people Improve the firms image Learning provides a framework for decreasing cycle time

HRMs Place in Management

The HR department must be a proactive, integral part of management and strategic planning Ascertain specific organizational needs for the use of its competence Evaluate the use and satisfaction among other departments Educate management and employees about the availability and use of HRM services HRM strategic plans must build on the firm's strengths