HUMAN RESOURCE MANAGEMENT

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CHAPTER OUTLINE
Meaning and definition Scope Objectives Importance Functions Difference between HRM and Personnel Management HRM Model Environment of HRM Role of HRM in organization Role of HR

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INTRODUCTION
HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organizational objectives.

This is true, regardless of the type of organization government, business, education, health or social action

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DEFINITION

According to Flippo, Personnel Management, or say, human resources management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end, that individual, Organizational and social

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IMPORTANCE

Human Resource Management

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OBJECTIVES

PERSONNEL OBJECTIVE

FUNCTIONAL OBJECTIVE

Objectives
ORGANIZATIONAL OBJECTIVE SOCIETAL OBJECTIVE

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Organizational Objective

To recognize the role of HRM in bringing about organizational effectiveness

Personnel objective

To assist employees in achieving their personnel goals, at least in so far as these goals enhance the individuals contribution to the organization

Functional Objective

To maintain the department, contribution at a level appropriate to the organization

Societal Objective

To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon their organization
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SCOPE
EMPLOYEE HIRING

EMPLOYEE MAINTAINACE

REMUNERATION

SCOPE of HRM
EMPLOYEE MOTIVATION

INDUSTRIAL REALTION

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Mission of an organization

FUNCTIONS OF HRM

Objectives HRM objectives Strategies and Policies of HRM Managerial functions of HRM Operative function of HRM

P L A N N I G

O R G A N I S I N G

S T A F F I N G

D I R E C T I N G

C O N T R O L L I N G

EMPLOYEMENT

HUMAN RESOURSE DEVELOPMENT Performance appraisal Training Management development Career planning & development Organization changes Organization development

COMPENSATION MANAGEMENT

EMPLOYEE RELATION

MAINTAINACE

HRP
Recruitment

Employment

Employment Motivation Job satisfaction Communication Grievance and disciplinary Collective bargaining Conflict management Participative management

Health Safety Social Security Welfare schemes Personal records Personal research

Selection Induction
Placement

Job evaluation
Wages and salary administration

Fringe benefits

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Personnel

Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits
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DEVELOPMENT

COMPENSATION & MOTIVATION

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Operative functions of HR (contd.)

MAINTENANCE
Health, Safety, Welfare, Social security Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining

INTEGRATION

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Difference between HRM and Personnel management

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Personnel
Time & Planning Short term , reactive ad hoc marginal Compliance

HRM
Long term proactive, strategic, integrated Commitment

Psychological contract Control system

External

Self-control

Employee Relation Collective , low trust

Individual , high trust

Structure and systems Roles

Bureaucratic , centralized , Formal Organized , developed , flexible

Specialist / Professional

Largely integrated in management

Evaluation criteria Cost minimization

Maximum utilization

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HRM Model

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HRM Model
Stakeholder interests:
stakeholders are people who have a nancial interest in the organization, management, and employee groups. They also includes external bodies such as government and the local community, particularly in areas where one company is a large provider of employment.

Situational factors: these include the characteristics of the workforce, labor markets,
union representation, and legislation, as well as societal values and culture. Elements of the business environment also need to be considered, such as the prevailing economic climate, the strategic direction of the company, and the management philosophies that drive the organization. These lead to HRM policy choices in areas such as reward systems, work systems, and employee inuence.

HR outcomes:

these follow from the HRM policy choices and are concerned with commitment, competence, congruence, and cost-effectiveness.

Long-term consequences:

these follow on from HRM policies and are concerned with individual well-being, and with ensuring that individuals are looked after and their needs considered.
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EXTERNAL FACTORS
PESTEL
P - political factors E economical factors S social factors T technical factors E environmental factors L legal factors

Internal factors
Mission Policies

Environment

Organization culture Organization structure HR system

of HRM

Workforce diversity Unions Employee demands and expectation

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Role of HR in organization
HR MANAGER
To administer and coordinates program across all the functional areas To oversee the designing and implementation of the HR Policies at the facility and advice line managers on HR issue

HR EXECUTIVE
Responsibility of linking the firms corporate policy and strategy with HRM Responsible for recruitment , compensation etc.

HR FACILITATER HR act as a facilitator when training and development are planned and conducted , performance appraisal are one HR CONSULTANT
When managers are facing problems while supervising employees, managers seek advise from HR consultant

HR SERVICE PROVIDER
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Human Resource Executives, Generalists, and Specialists

Vice President, Human Resources Vice President, Industrial Relations

Manager, Compensation

Manager, Training and Development

Manager, Staffing Executive: Generalist: Specialist:

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Benefits Analyst

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HRM and 3 Ps
People
adds value to the firm rare resource inimitable non-substitute

Processes Performance
To create value and continuously increase the rate of return on investment (ROI)
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Future of HRM : Influencing factors

Size of workforce Composition of workforce Employee expectation Changes in technology Lifestyle changes Environmental challenges Personnel function in the future
1. 2. 3. 4. 5. 6.

Job redesign Career opportunities Productivity Recruitment and selection Training and development Rewards LOGO

Safety and welfare

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Changes in 21st century impacting HRM

HR as a spacing board of success Talent hunting, developing and retaining Lean and mean organization Labor relations Health care benefits

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SHIFTS IN HRM IN INDIA

Traditional HR practices
Administrative role People as expense Reactive Production focus Separated, isolated from company mission Individual's encouraged, singled out for praise ,rewards

Emerging HR practices
Strategic role People as a key

investment/assets

Proactive Key part of the organizational mission Service focus Cross-functional teams, teamwork most important
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