HUMAN RESOURCE MANAGEMENT

Personnel, People at work, Manpower, Staff,

employees
 Definition

• Human resource management can be defined as

– “ employing people, developing their resource, utilizing
maintaining and compensating their services in tune with
the job and organizational requirements”
 HRM FUCTIONS

HR HR
Performance Motivation & Industrial
acquisition development & maintenance relations
1. HR planning 1. Career planning compensatio 1. Empowerment
n 1.Discipline &
2. Recruitment 2.Training & 2. Health & Safety
grievance mg
3. Selection development 1. Performance Mgt. 3. HR mobility
2.Industrial
4.Placement 3.Organizational 2.Incentives & 4.Creating dispute Mg
Development benefits motivating
environment

HR Information system
HR research
HR accounting
HR audit
 Nature of HRM
1. Inherent part of management- selecting people, training, motivating, appraising
their performance for improving their quality.
2. Pervasive function-present in all levels of mg in an organization
3. Action oriented-solve problem through rational(balanced) policies rather than
record keeping
4. People oriented-HRM is all about people at work. Assign jobs, produce results,
reward, motivate them towards improvements in productivity
5. Future oriented- Effective HRM helps organization meet its goals
6. Development oriented-HRM develops full potential of employees through reward,
training, job rotation.
7. Integrating mechanism: HRM maintains cordial relationship between people
working at various levels in organization.
8. Comprehensive function: Workforce signifies people working at all levels, HRM
differs with form & shape but the basic objective of effective utilization of human
resource remains the same.
9. Continuous function: HRM is not a one shot deal it requires constant awareness
and alertness of human relations in every day operation.
10. Based on human relation: Every person has different need, perception and
expectations. The manger should give due attention to these factors.
 Scope(capacity) of HRM
1. Human resource planning-fill various position
2. Recruitment & Selection- develop a pool(team) of candidates
3. Job Design: define task, assign authority & responsibility
4. Training & Development- helps in developing key competencies
5. Appraisal of performance-systematic assessment & evaluation
of workforce
6. Motivation of workforce- develop enthusiastic workforce
7. Remuneration of employees-focuses on fair, consistent &
equitable compensation
8. Social security & Welfare of employees-working
conditions,
transport, medical assistance etc
9. Review & audit of personnel policies- ensures reliable HR
policies
10. Industrial labour relation- ensures healthy union mg
 Difference between personnel mg & HRM
PERSONNEL MANAGEMENT HUMAN RESOURCE MG
• Management of people employed Mgt of employees' skills,
• Knowledge, abilities
• Employees are treated as • Employees are treated as
economic man as his service are economic, social & psychological
exchanged with salary man
• Employees are viewed as tool, • Employees are treated as a
equipment resource
• Employees are treated as cost • Employees as treated as profit
center. Therefore mg controls center. Therefore, invest in
cost of labour human resource.
• Employees used as • Employees used for multi-mutual
organization benefit for org, employees &
benefit family
• Personnel function is only • HRM is a strategic(planned) mg
auxiliary (secondary) function
• Short term perspective • Long term perspective
 Objectives of HRM
1. To help the organization reach its goal
2. To employ the skills and abilities of the workforce efficiently
3. To provide the organization with well trained & well motivated employees
4. To increase employees job satisfaction and self actualization (stimulate
employees to realize their potential)
5. To develop & maintain a quality of work life.
6. To communicate HR policies to all employees.
7. To be ethically & socially responsive to the needs of the society(ensuring
compliance with legal & ethical standards)
8. To provide an opportunity for expression & voice in management
9. To provide fair, acceptable & efficient leadership
10. To establish sound organizational structure & desirable working relationships.
 Importance of HRM
1. Attract & retain talent
2. Train people for challenging roles
3. Develop skills & competencies
4. Promote team spirit
GOOD HR
5. Develop loyalty & commitment
PRACTICES HELPS 6. Increase productivity & profits
7. Improve job satisfaction
8. Enhance standard of living
9. Generate employment
opportunity
10. Greater trust & respect
 Qualities of HR Manager
Henry fayol categorized as
a) Physical- health, vigor (energy, strength), address
b) Mental- ability to understand, learn, judge & adaptable
c) Moral – firmness, responsible, initiative, loyal, dignity (self
respect)
d) Educational- subject knowledge about function performed
e) Technical- peculiar knowledge on function
f) Experience – arising from work proper.
OTHERS:
Alert mentally, competent to take quick decision,
honesty & integrity, patience, good leader, socially
responsible, good communicator, courteous (well
mannered)
 Environmental factors that affects the
HRM

Legal Technological Socio- cultural

Economic environment environment environment
environment (a ) No (a)Electronic (a)Expectation of
discrimination communication society
(a) Population &
workforce on sex (b)Open door policy (b)Social status of
(b ) At least (can communicate job
(b)Workforce market with any1 in
prescribed % of total (c ) Achievement of
condition organization)
employees must work
( c) National income- belong to SC & (c ) Global
Salary structure physically monitoring (d ) Authority
handicapped structure
(d) Inflationary (d) Virtual
pressure ( c ) Safety, office ( no (e)Workforce
working condition mobility
central
(d) Industrial place ) (f)Role of labour
relation union
 Emerging issues in HRM Future of
HRM: influencing factors
1. Increase in size of workforce-additional demands for better pay, benefits &
working conditions.
2. Composition of workforce- The raising percentage of women in workforce,
demand for equal pay, gender inequality
3. Employees expectations-as workers are better educated, more demanding, voice
strong- financial & non financial demands is ever growing & expanding.
4. Changes in technology- increase in automation, modernization &
computerization. Employees must update their knowledge & skills constantly. This will
necessitate constant training at all levels.
5. Life style changes- people are ready to change jobs, shift locations, start up
companies & even experiment with untested ideas.
6. Environmental challenges- Privatization efforts in India will gather momentum .
Burden of training & retraining falls on the shoulder of HR manager. Reserved categories,
minorities will lose importance during selection of employees.
7. Personnel Function- Job redesign, career opportunity, Productivity, reward,
safety and welfare, Talent hunting, developing & retaining, Lean & mean mg (good bye to
old employees), labour relation, Health care benefits
Role & Responsibility of HR professionals in
changing Environment
• Focus on strategic HR issues: Issues have to be identified &
dealt with adequately. It will act as an in-build advantage
• Proactive action: not on reactive basis. Putting action in practice before
an issue arises.
• Developing integrated HR system:
Well balanced system without lack of coherence (unity) in function
• Working as Change agent: must perceive need for
change and initiate it. HR professionals must play an active role.
• Marketing HR potential: must have ability to prove
their contribution to enterprise
• Outsourcing HR functions: business instructs an
external supplier to take responsibility (and risk)
for HR functions.