What is Human Resource Management?
Human resource (HR) management  refers to the practices and policies one needs to carry out to deal with the personnel aspects of the management job  Human resource management (HRM) is the effective management of people at work  The goal: make workers more satisfied and productive  When an organization is concerned about people, its total philosophy, culture, and orientation reflect it  Every manager must be concerned with people, whether or not there is a human resources department 

Scope of HRM .

Importance of HRM  attract and retain talent  train people for challenging roles  develop skills and competencies Good HR Practices help  promote team spirit  develop loyalty and commitment  increase productivity and profits  improve job satisfaction  enhance standard of living  generate employment opportunities .

Image and Quality of HR/Personnel Manager       Fairness and firmness Tact and resourcefulness Sympathy and consideration Knowledge of labor and other terms Broad social outlook Others and Academic qualifications .

Functions of HRM P/HRM Operative Functions Procurement Job Analysis HR planning ± Organizing Managerial functions: ± Planning Development: Training Executive development Career planning Succession Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration Incentives benefits and services Maintenance: Health Safety Welfare Social security Integration: Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerment Trade unions Employers¶ associations Industrial relations Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS Job stress Mentoring International HRM Recruitment Selection Placement ± Directing Induction Internal mobility planning Human resources development strategies ± Controlling .

HRM as a central subsystem in an organization Product Subsystem Finance Subsystem HR Subsystem Procurement Training Compensation Appraisal Rewards Marketing Subsystem Technical Subsystem .

social patterns.A Brief History of HRM HRM can be traced to England. welfare work. where craftspeople organized guilds  They used unity to improve working conditions  The Industrial Revolution in the 18th century laid the basis for a new. scientific management. and industrial psychology merged  . complex industrial society  Changing work conditions. and labor created a gap between workers and owners  During the world wars era.

Taylor. initiated in 1913.A Brief History of HRM Frederick W. summarized scientific management as:  Science  Harmony  Cooperation  Maximum output  Industrial psychology. focused on:  The worker  Individual differences  The maximum well being of the worker  . the father of scientific management.

more organizations noticed and acted on employee-management conflict  .A Brief History of HRM Personnel departments were created to deal with:  Drastic changes in technology  Organizational growth  The rise of unions  Government intervention concerning working people  Around the 1920s.

the personnel function was concerned only with blue-collar employees  File clerk. and union trouble defuser  .A Brief History of HRM  The Hawthorne studies (1924 to 1933):  Were to determine the effects of illumination on workers and their output  Rather. it pointed out the importance of social interaction on output and satisfaction Until the 1960s. firefighter. house-keeper. social worker.

land. Wages were based on demand and supply. materials.Evolution of the Personnel Function Concept The Commodity concept What is it all about? Labour was regarded as a commodity to be bought and sold. Welfare measures like safety. rest room will have a positive impact on workers¶ productivity Management must assume a fatherly and protective attitude towards employees. lunch room. Government did very little to protect workers. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children. viz. first aid. Cont« The Factor of Production concept The Goodwill concept The Paternalistic concept/ Paternalism . Labour is like any other factor of production. etc. Workers are like machine tools. money.

money is less a factor in determining output. . The Emerging concept Employees should be accepted as partners in the progress of a company. than group standards. The Human Resource concept Employees are the most valuable assets of an organization. The focus should be on Human Resource Development. physical. They should have a feeling that the organization is their own. As Mayo and others stated. group incentives and security. To this end. There should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees. The organization is a social system that has both economic and social dimensions. managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. social and psychological needs of workers must be met.Evolution of the Personnel Function The Humanitarian concept To improve productivity.

Industrial Relations and Personnel Administration 1970 ± 80 Efficiency. Changing Scenario Period 1920 ± 30 Emphasis Welfare management Paternalistic practices Status Clerical Roles Welfare administrator Appraiser Advisor Mediator Legal advisor Fire fighting Change agent Integrator Trainer Educator Developer Counsellor Coach Mentor Problem solver 1940 ± 60 Expanding the role to cover Labour. Welfare. Incremental productivity gains through human assets Administrative Developmental 1990s ± onwards Proactive.Personnel Function in India. growth-oriented . effectiveness dimensions added Emphasis on human values. aspirations.

Objectives of HRM .

the enterprise. and quality of work life  Communicating HRM policies to all employees  Maintaining ethical policies and socially responsible behavior  Managing change to the mutual advantage of individuals. and the public . self-actualization. groups.Objectives of the HRM Function  HRM contributions to organizational effectiveness:  Helping the organization reach its goals  Employing workforce skills and abilities efficiently  Increasing job satisfaction.

unsatisfied employees tend to be absent and quit more often and produce lower-quality work  Both satisfied and dissatisfied employees can perform equally in quantitative terms .Objectives of the HRM Function  Increasing employees¶ job satisfaction and selfactualization  Employees must feel that the job is right for their abilities and that they are being treated equitably  Satisfied employees are not automatically more productive  However.

including:  Management and supervisory style  Freedom and autonomy to make decisions on the job  Satisfactory physical surroundings  Job safety  Satisfactory working hours  Meaningful tasks  The job and work environment should be structured to meet as many workers¶ needs as possible  .Objectives of the HRM Function Quality of work life (QWL) is a general concept that refers to several aspects of the job.

Objectives of the HRM Function  Communicating HRM policies to all employees:  HRM policies. and procedures must be communicated fully and effectively  They must be represented to outsiders  Top-level managers must understand what HRM can offer . programs.

Objectives of the HRM Function  Maintaining ethical policies and socially responsible behavior:  HRM managers must show by example that HRM activities are fair. and honorable  People must not be discriminated against  Their basic rights must be protected These principles should apply to all activities in the HRM area  . truthful.

Objectives of the HRM Function Managing increased urgency and faster cycle times:  Firms are placing a growing emphasis on:  Increasing customer service  Developing new products and services  Training and educating technicians. educate. and decision makers  Shorter cycle times mean less time to:  Train. and assign managers  Recruit and select talented people  Improve the firm¶s image   Learning provides a framework for decreasing cycle time . managers.

HRM¶s Place in Management  The HR department must be a proactive. integral part of management and strategic planning  Ascertain specific organizational needs for the use of its competence  Evaluate the use and satisfaction among other departments  Educate management and employees about the availability and use of HRM services HRM strategic plans must build on the firm's strengths  .

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