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introduction to HRM

introduction to HRM

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Published by: suhu.15 on Feb 10, 2010
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Nature and scope of HRM and HRD

Module 1

Definition and Meaning
 HRM is the process of acquiring , training ,

appraising and compensating employees and attending to their labour relations , health and safety and fairness concerns . controlling of the procurement , development , compensation , integration, maintenance and separation of human resources to the end that individual , organizational and social objectives are accomplished .

 HRM is the planning , organizing , directing and

Evolution of HRM
1920-30 1940-60 Welfare management and paternalistic practices


Welfare administrator Appraiser Advisor Mediator

Expanding the role to cover Administrative labour, welfare, IR and personnel administration, Introduction of techniques Efficiency, effectiveness, Emphasis on human values, aspirations, dignity Incremental productivity gains through human assets


Developmental Change agent Trainer Integrator Executive, Developer proactive and Counsellor growth oriented Mentor Problem solver

1990 onwards

Nature of HRM
 Pervasive force  Action oriented  Individual oriented  People oriented  Future oriented  Development oriented  Integrating mechanism  Auxiliary services  Interdisciplinary functions  Continuous function

Objectives of HRM
 To help the organization reach its goals  To employ the skills and abilities of the     

workforce efficiently To provide the organization with well trained & well motivated employees . To increase to the fullest the employee’s job satisfaction and self actualization. To develop and maintain QWL To communicate HR policies to all employees To be socially and ethically responsive to the needs of society.

Personal V/s HR
 Personnel management is more administrative

in nature, dealing with payroll, complying with employment law, and handling related tasks.
 Human resources, on the other hand, is

responsible for managing a workforce as one of the primary resources that contributes to the success of an organization .

Beliefs and assumptions 1. 2. 3. 4. Contract Behaviour referent Nature of relations Managerial task

Careful delineation of written contracts. Norms/customs and practice Pluralist Monitoring

Aim to be ‘ beyond contract’ ‘can do’ outlook Values/ Mission Unitarist Nurturing

Strategic aspects 1. 2. Key relations Speed of decision

Labour management Slow Transactional Indirect High

Customer Fast Transformational Direct Low

Line Management 1. 2. 3. Mangement role Communication Standardization

Key levers 1. 2. 3. 4. Pay Job categories Job design Training &Development

Job evaluation(fixed grades) Many Division of labour Controlled access to courses PM

Performance based Few Team work Learning companies HRM

 Focus – Employee    

 Partnerships with

relations Initiatives- Slow , reactive Time horizon – Short term Key investmentsCapital , products Responsibility-Staff specialists

   

internal and external customers Fast , productive Short, medium ,long term People , Knowledge Line managers and staff specialists

Human Resource management is based on the efficient utilization of employees in achieving two main goals within an organization.
 The first goal is to effectively make use of the

talents and abilities of employees to achieve the operational objectives that are the ultimate aim of the organization.  Along with realizing the goals of the organization, Human Resource management also seeks to ensure that the individual employee is satisfied with both the working environment and the compensation and benefits that he or she receives.

Features of HRM
 HRM is concerned with employees both as

individuals and as groups in attaining goals.  HRM is concerned with development of human resources i.e. knowledge, skills, capabilities , attitudes.  HRM covers all levels (low, middle,& top) and categories( unskilled, skilled, technical, professional, managerial) of employees .  HRM applies to all types of organizations in the world .

Features of HRM
 HRM is a responsibility of all line managers

and a function of staff managers in an organization.  HRM is the central subsystem of an organization .  HRM aims at securing co-operation from all employees in order to attain predetermined goals .  HRM is a continuous and never ending process

Functions of HRM
Managerial functions  Planning  Organizing  Directing  Controlling Operative functions  Employment  Human resources development  Compensation  Human relations  Industrial relations  Emerging issues in HRM

Managerial Functions
 Planning – This function deals with determination of the

future course of action to achieve. Planning of personnel today prevents crisis tomorrow .  Organizing –This function is concerned with proper grouping and assigning of personnel activities and delegation of authority.  Directing –This function involves supervising and guiding the personnel  Controlling – this function is concerned with measuring employee’s performance & correcting deviations

Operative Functions

a St

g fi n f

De ve lo pm en t


Com p and ensatio n Ben efits

nd e e a ns io pl oy Em r Relat o Lab

Human Resource Managemen 1 t

1. Staffing or Procurement
 Job Analysis  Human resource planning  Recruitment  Selection  Placement  Induction & Orientation  Internal Mobility

2. Development
 Training  Executive Development  Career planning and Development  Human Resource Development

3. Compensation
 Job evaluation  Work scheduling  Performance appraisal  Compensation administration (Wage &

salary administration)  Incentives & Benefits  Bonus


 Employee Health and Safety  Employee Welfare  Social security

5.Employee and Labor relations
 Grievance redressal  Discipline  Collective bargaining  Employee participation & Empowerment  Trade unions  Industrial Relations

6. Emerging Issues
 HR Audit  HR Accounting  HRIS  Stress and Counseling  QWL  Human Resource Research  IHRM

Role of HR manager
 Administrative roles  Operational roles  Strategic roles

Administrative roles
 Policy maker – formation of policies

governing talent acquisition, retention, wage and salary administration, welfare activities, working conditions etc  Administrative expert – information processing and record keeping.  Advisor- advising ,suggesting, and helping the line managers in discharging the responsibilities .

 House keeper – manages the show by

recruiting , pre-employment testing , reference checking ,time keeping etc..  Counselor – problems related to professional and personal life will be addressed  Welfare officer-provides and maintains hospitals , canteens, crèches , educational institutes, clubs, libraries etc…  Legal consultant- plays a role of grievance handling, settling of disputes, disciplinary cases , collective bargaining etc..

Operational roles
 Recruiter – Talent acquisition  Trainer – Helps in enhancing knowledge

and skills .  Coordinator – linking pin between various departments of an organization.  Conflict handler

Strategic roles
 Change agent – HR manager helps to replace 1. Resistance with resolve 2. Planning with results 3. Fear of change with excitement  Strategic partner – Strategy formulation and

strategy implementation .

Qualities And Qualification of HR Manager
Qualities 1. Personal attributes – initiative, maturity in judgment, analytical ability ,intellectual integrity, knowledge of labour laws , understanding of human behaviour and human needs .  Intelligence – skills to communicate , articulate, moderate , command over language , tact in dealing with people etc..

 Education skills  Discriminating skills  Executing skills

2. Experience and training 3. Professional attitudes – HR manager must be able to combine social justice with a warm personal interest in people which must be secured by commonsense, compassion and integrity.

 Degree from recognized university .  PG Degree / Diploma in HRM ,HRD ,

Labour welfare, psychology, IR  MBA with specialization in HR  Knowledge of Local language  HR mastery – knowledge and understanding of areas such as staffing, development, appraisal, rewards, team building, communication etc…

Personnel policies , procedures and programs
Personnel policies
guide action  are general standards or parameters based on which decisions are reached . Features: 1. Personnel policies are derived from personnel objectives of an organization. 2. It summarizes past experience in the form of useful guidelines that help managers to speed up decision making process. 3. It serves as a standing plan that can be put to use repeatedly while solving problems of recurring nature. 4. It helps in achieving coordination of organizational members.

Types of personnel policies
 Originated policies – established by top

management so as to guide executive thinking at various levels.  Appealed policies – formulated to meet the requirements of certain peculiar situations which have been not covered by the earlier policies  Imposed policies – formed under pressure from external agencies such as government , trade unions etc .

 General policies- They reflect the basic

philosophy and priorities of the top management .
 Specific policies- They cover specific

issues such as hiring, rewarding and negotiating .
 Written and Implied policies

Advantages-HRM Policies
 Delegation  Uniformity  Better control  Standards of efficiency  Speedy decisions

 Procedures are detailed statements describing     

specifically how the policy is to be implemented . Policies are implemented by procedures. Procedures are derived from policies. Chronological ,step-by-step sequence of required action. Policies define a broad field .Procedures show a sequence of activities within that area Multi purpose plan

 Programmes are complex sets of goals ,

policies, procedures , rules , steps to be taken, resources to be employed and other elements necessary to carry out a given course of action.
 Single purpose plan

Line relationship
 Relationship existing between 2 or more managers

due to delegation of authority and responsibility and giving or receiving instructions or orders .  Generally exists between a superior and a subordinate.  Line managers are completely responsible and accountable for the results achieved by the employees of respective departments .

Staff relationship
 Relationship existing between 2 or more

managers due to giving and taking advice, guidance, information, assistance , counseling etc… in the process of attaining organization goals .  Staff managers analyse problems, collect information and develop alternative suggestions and help line managers to make right decisions quickly.

LINE and STAFF Relationship in an Organization

HR management is a line responsibility and a staff function

Organization of Human Resource Department
 HR department in small organization.

 HR department in large organization.

Factors influencing HRM
External Factors
 Political and legal factors  Economic factors  Technological factors  Cultural factors  Human resources in the

Internal Factors
 Organizational structure  Strategy, task and


leadership  Unions  Organizational culture and conflict

Challenges and human resource management
 Corporate reorganization
      

Loss of job, pay and benefits Job changes Transfer to new geographic location Changes in career Changes in organizational power, status and prestige. Staff changes Change in corporate culture

 Global Competition
   

International joint ventures Handling Expatriates Repatriation process Multinational companies

 Slower Growth
   

Economic downturn Use of IT Automation Flatter organization

 Employee expectations  Increasing diversity in the work force

Primary dimensions-Age, gender, race, physical abilities Secondary dimensions-Work background, education, income, marital status, religious beliefs, geographic location etc Dual-income couples

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