 Concept of LPG model

 Higher mobility of manpower

 Complexities of management
 HRM acting as a functional area
 Important place in modern world
 HRM concerned with employing people
developing their capacities and abilities,
utilizing, maintaining and compensating their
services in tune with the particular job and
organizational requirements to reach the
individual, organizational and social goals

 Dessler “Human resource management is

the process of acquiring, training, appraising
and compensating, employees and attending
to their labor relations, health, safety in and
fairness concerns”
 Reaching organizational goals by providing
competent and motivated employees.
 To create and utilize an able and motivated
workforce to accomplish basic objectives.
 Utilize available workforce effectively.
 Maintain sound organizational structure.
 Train and develop skills and abilities.
 Increase job satisfaction and self
actualization.
 Adopt problem solving techniques for
problems relating to disciplinary and
grievance cases.
 Communicate HR policies to all employees.
 To provide fair, acceptable and efficient
leadership.
 To develop team work and to make individual
workers to b dynamic.
 To be ethically and socially responsive to the
needs of the society.
 Cordial relationship between employees and
management.
 Personnel aspect: advisory management,
manpower planning, recruitment, selection,
training and development, measurement and
assessment, placement, promotion.
 Welfare aspect: personnel and organizational
problems, working condition, group
dynamics, group counseling, motivation,
leadership and communication.
 Clerical aspect: time keeping, salary and
wage, incentives management, maintenance
of records, human engineering.
 Industrialrelations aspect: grievance
handling, settlement of disputes, handling
disciplinary actions, collective bargaining,
joint consultation
 Managerial functions:
planning, organizing, directing, controlling.

 Operative functions :
1.Procurement: job analysis, HRP, recruitment, selection,
placement, induction and orientation, internal mobility.

2. Human Resource development: performance appraisal,

training, management development, career planning and
development.

3.Compensation: job evaluation, wage and salary

administration, bonus and fringe benefits, incentives.

4.Maintaince: health, social security, personnel records, HRA,

HRIS, HR audit, HR research.

5. Integration: motivation, job satisfaction, grievance handling,

collective bargaining, workers participation, discipline
 Important variable in the HRM model
 Scanning the environment n its influence on HR
functions.
 It is all those forces which has bearing on the
functioning of HR department.
 Analysis the environment in such a way to make
it proactive and not to remain reactive to the
environment.
 Political-legalenvironment
 Economic environment
 Technological environment
 Cultural environment
 Need to introduce substantial reforms
 To overcome devaluation of rupee and to
adjust the exchange rate to a credible level
 Economic policy of 1991
 Fiscal policy:
 fiscal debt reduced from 8.6% to 6.6% of the GDP
 reduction in subsidies and non plan expenditure
 new schemes to mop up black money.

 Trade policy:
 Encourage free trade
 Import and export policy
 Liberalization of import of technology
 Industrial policy:
 Large scale delicensing
 Removal of MRTP restrictions
 Removal of restrictions on expansions,
mergers, takeovers and appointments of
directors.
 Raising of foreign equity investment upto 51%.

 Financial policy:
 Liberalization of financial markets.
 Reform of credit reserve
 Encouragement to mutual funds.
 Greater control for SEBI.
 Agricultural
policy:
 Land reforms on top agenda
 Improvement in technologies of production,
storage

 Poverty alleviation policy:

 Provision of basic needs
 Several programmers‘

 Human resource policy:

 Access to health, education and training
 Women entrepreneurs
 World bank and IMF began to prescribe certain
terms and conditions.
 Economic and social dimensions.

SUB GOALS:
 Stabilization
 Structural adjustment lending(SAL)
 Sectoral adjustment
 Social adjustment
 Change of work values
 Emphasis on extrinsic values
 Desire to have meaningful work and
opportunities.
 More democratic tendencies
 Transparency in management decisions
 Participation\involvement in decision making
processes, information sharing and
communication.
 Business restructuring
 Forming strategic alliances
 Going for acquisitions, mergers and
diversities.
 Government to compete with MNCs
 Restructuring organization.
 Unified course of action to achieve the goal.
 Integrated plan design
 A pattern in a stream of decisions or actions
 Reducing the prices, improving product
design, etc..
 Stability
strategies
 Growth strategies
 Retrenchment strategies
 Combination strategies
 Employment
 Development
 Performance appraisal
 Compensation
 Industrial relations
 Work systems
 Organizational culture
 Corporate level strategies vis-à-vis HR
strategies
 stability strategies
 growth strategies
 internal growth
 concentration strategies
 Merger and acquisition strategies
 horizontal integration
 conglomerate diversification
 joint ventures
 retrenchment strategies
 SBU level strategies
 low cost leadership
 Differentiation strategy
 Focus \Niche strategy
 Unions
 Organizational culture and conflicts
 Professional bodies.