Nature and Scope of Human Resource Management
Meaning and Definition HRM is a management function that helps managers recruit, select, train and develop of an organisation. HRM…… People’s dimension
HRM Definition…… A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisations and the employee to achieve their objectives.
HRM Definition…… Is concerned with people dimension in management.Since every organisation 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 organisation are essential to achieving organisational objectives.
HRM Definition…… Management is the planning, orgainsing, directing and controlling of the procurement, development, comp-ensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished.
Scope of HRM HR Planning Job analysis and Design Recruitment and Selection Orientation and Placement, Training and Development Performance appraisal and Job Evaluation Employee and Executive Remuneration Motivation and communication Welfare, Safety and Health Industrial Relations (IR)
Importance of HRM Social Significance Balance the jobs available and job seekers Provide suitable and productive employment Maximise utilisation of the resources effectively Eliminate waste or improper use human resources Help people make their own decisions
Importance of HRM Professional Significance Maintain dignity of the employee as human Provide maximum opportunities for personal development Provide healthy relationship to different work groups Improve skills and capacities Minimise wrong postings, allocate work properly
Importance of HRM Significance for Individual Enterprise Create right attitude among employees through effective motivation Utilise the available human resources effectively Secure co-operation of the employees: achieve goals, psychological needslove, affection, belongingness, esteem and self actualisation
Difference between HRM & PM HRM HRM views people as an important source or asset to be used for the benefit of organisation, employees and the society. Philosophy of mutuality : mutual goals, mutual respect,mutual rewards and mutual responsibilities. ASPA changed its name to SHRM
Difference &PM PM
between HRM
PM has limited scope and an inverted orientation Viewed labour as a tool for benefits of the organisation Personnel Dept not respected, no productive employees PM treated as routine activity meant to hire new employee and maintain personnel records Never part of strategic management of business. Historically PM preceded HRM
Difference between HRM & PM Dimension
Personnel
Human Resource
Employment Contract
Written, delineated
Aim to go beyond contract
Rules
Clear
Outlook, Impatience
Guide to Mgnt. Action
Procedures
Business Needs
Behaviour referent
Norms/Custo Values/Mission ms and s Practices
Difference between HRM & PM Dimension
Personnel
Human Resource
Managerial Monitoring Nurturing /labour task Key Relations Labour Customer Management Initiatives Piecemeal Integrated Management Role
Transactiona Transformation l al Leadership
Speed of decision
Slow
Fast
Difference between HRM & PM Dimension
Personnel
Human Resource
Communicatio Indirect n
Direct
Prized Management skill
Negotiation
Facilitation
Selection
Separate, Marginal task
Integrated, key task
Pay
Job Evaluation (Fixed
Performance based
Difference between HRM & PM Dimension
Personnel
Human Resource
Labour Management
Collective barg- aining contracts
Individual contracts
Job categories Many and grades
Few
Job design
Division of labour
Team work
Conflict handling
Reach temporary truce
Manage climate and culture
Training &
Controlled
Learning
Difference between HRM & PM Dimension
Personnel
Human Resource
Intervention focus
Personnel procedures
Wide rangingcultural,structur al and personnel strategies
Respect for employees
Labour treated as tool : expendable and replaceable
People are treated as assets to benefit organisation/ employees/socie ty
Difference between HRM & PM Dimension
Personnel
Human Resource
Shared interests
Organisational Mutuality of interests are interests uppermost
Evolution
Precedes HRM
Latest in the evolution of the subject
Objectives of HRM Societal To be ethically and socially responsible to the needs and challenges of society while minimising the negative impact of such demands upon the organisation. Organisational To recognise the role of HRM in bringing about organisational effectiveness.
Objectives of HRM Functional To maintain the department’s contribution at a level appropriate to the organisation’s needs. Personal To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual’s contribution to the organisation.
HRM Objectives and Functions HRM Objectives Societal
ing Functions 1.Legal Compliance 2.Benefits 3.Union management relationship
HRM Objectives and Functions HRM Objectives Organisational
ing Functions 1.Human Resource Planning 2.Employee Relations 3.Selection 4.Training & Development 5.Appraisal 6.Placement
HRM Objectives and Functions HRM Objectives
ing Functions
Functional
1.Appraisal 2.Placement 3.Assessment
HRM Objectives and Functions HRM Objectives
ing Functions
Personal
1.Training & Development 2.Placement 3.Assessment 4.Compensation
Image & Qualities of HR Manager Fairness & Firmness Tact and resourcefulness Sympathy and consideration Knowledge of labour other Broad Social outlook Competence
HR Policies A policy is plan of action. Is a statement of intention committing the management to general course of action. Policy contains HR programmes, expression of philosophy and principles. Policy are required for…… basic needs, consistency in treatment & continuity
Evolution of HRM HRM emerged in 1970s Kautilya’s Arthashastra in 4th BC Babylonian Code of Hammurabi 1800 BC ‘minimum wage rate’ & ‘incentive wage plan’ In India since 1920 : First world war, emergence of trade union The Royal Commission (1931) : Labour Welfare Officers : Selection of workers and settle grievances.
Evolution of HRM Factories Act (1948) Welfare officers compulsory in industries employing 500 employees IIPM – Kolkata, NILM in Mumbai : (Jute and textiles) Second World War : increased expectations of the workers : IR and Personnel n integrated as PM 1970 : Shift from welfare to efficiency. 1980 : HRM and HRD Challenges 1990 : Human value and productivity through people.