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HRM Notes

HRM Notes

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Published by: ✬ SHANZA MALIK ✬ on Oct 13, 2011
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04/11/2012

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Chapter 1 Introduction to human resource management
Definition (concept for 2 marks) - Edwin Flippo defies HRM as“planning, organizing, directing, controlling of procurement,development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and socialobjectives are achieved.”
Features of HRM or characteristics or nature (3 or 4 marks)
1.HRM involves management functions like planning, organizing,directing and controlling
2.
It involves procurement, development, maintenance of humanresource3.It helps to achieve individual, organizational and social objectives4.HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics andsociology.5.It involves team spirit and team work.
Evolution of HRM (for 10 or 5 marks)
The evolution of HRM can be traced back to Kautilya Artha Shastrawhere he recommends that government must take active interest in publicand private enterprise. He says that government must provide a proper  procedure for regulating employee and employee relationIn the medieval times there were examples of kings like AllaudinKhilji who regulated the market and charged fixed prices and providedfixed salaries to their people. This was done to fight inflation and providea decent standard of livingDuring the pre independence period of 1920 the trade unionemerged. Many authors who have given the history of HRM say thatHRM started because of trade union and the First World War.The Royal commission in 1931 recommended the appointment of alabour welfare officer to look into the grievances of workers. The factory
 
act of 1942 made it compulsory to appoint a labour welfare officer if thefactory had 500 or more than 500 workers.The international institute of personnel management and nationalinstitute of labour management were set up to look into problems faced by workers to provide solutions to them. The Second World War createdawareness regarding workers rights and 1940’s to 1960’s saw theintroduction of new technology to help workers.The 1960’s extended the scope of human resource beyond welfare. Now it was a combination of welfare, industrial relation, administrationtogether it was called personnel management.With the second 5 year plan, heavy industries started and professional management became important. In the 70’s the focus was onefficiency of labour wile in the 80’s the focus was on new technology,making it necessary for new rules and regulations. In the 90’s theemphasis was on human values and development of people and withliberalization and changing type of working people became more andmore important there by leading to HRM which is an advancement of  personnel management.
Scope of HRM/functions of HRM
The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as follows
1.
Human resources planning :-
Human resource planning or HRP refers to a process bywhich the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal withthis excess or shortage.
2.
Job analysis design :-
Another important area of HRM is job analysis. Job analysisgives a detailed explanation about each and every job in thecompany. Based on this job analysis the company preparesadvertisements.
3.
Recruitment and selection :-
Based on information collected from job analysis thecompany prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are receivedafter the advertisement is published, interviews are conducted andthe right employee is selected thus recruitment and selection areyet another important area of HRM.
 
4.
Orientation and induction :-
Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of thecompany, explain about the organizational culture and values andwork ethics and introduce to the other employees.
5.
Training and development :-
Every employee goes under training program which helpshim to put up a better performance on the job. Training program isalso conducted for existing staff that have a lot of experience. Thisis called refresher training. Training and development is one areawere the company spends a huge amount.
6.
Performance appraisal :-
Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR departmentchecks the performance of the employee. Based on these appraisalfuture promotions, incentives, increments in salary are decided.
7.
Compensation planning and remuneration :-
There are various rules regarding compensation and other  benefits. It is the job of the HR department to look intoremuneration and compensation planning.
8.
Motivation, welfare, health and safety :-
Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department tolook into the different methods of motivation. Apart from thiscertain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department.
9.Industrial relations :-
Another important area of HRM is maintaining co-ordinalrelations with the union members. This will help the organizationto prevent strikes lockouts and ensure smooth working in thecompany.

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