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UNIT 1 Introduction to Human Resource Management

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Contents of UNIT 1

Concept of HRM, Nature, Scope of HRM Functions, Objectives, Processes, Importance of HRM Evolution of HRM, HRM Models (In India and Abroad) Roles and Responsibilities of HR managers Competitive Challenges and HRM: Technological Changes, Workforce Diversity, Employee Empowerment, 6. Managing Protean Careers, Moonlighting Phenomenon etc.

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Chapter 1Concept of HRM, Nature, Scope of HRM

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Human Resource Management

HRM is a part of management concerned with people at work and

with their relationships within the organization. It helps to procure, develop, maintain & manage the people at work in order to check that whether the organizational goals for which company has been established at achieved effectively & economically or not.
Key words Procure- means to select right person for right job Develop means to impart training Maintain means to take care of personnel management of employees by adopting good human relations Management means to follow set of policies, practices & programmes designed to maximize both personal & organizational MS 112 1/6/2014 goals.

Human Relations
Human Relations are an integrative process through which the goals of the organization & the interest of the people working in it are harmonised. The basic objectives of human relations is to ensure that both employee satisfaction & company productivity are simultaneously achieved. Human relations is an interdisciplinary field that involves use of knowledge from sociology, psychology, anthropology & other sciences for the study of human relations. It is an actionoriented approach to build human cooperation towards organizational goals. Key points Integrative Process Employee Satisfaction Company Productivity Interdisciplinary Field Action - Oriented
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Concept of HRM
HRM is concerned with the peoples dimension in the

organization force

Facilitating the competencies and retention of skilled Developing management systems that promote


Developing practices that foster team work

Making employees feel valued and rewarded

Human Resource Management may be defined as set of policies, practices and programmes designed to maximize both personal and organizational goals. According to Flippo, HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished

Nature/Characteristics of HRM
1. 2. 3. 4. 5. 6. 7.

Comprehensive function Includes managing all types of people at all levels in the organization People oriented Concerned with employees Action oriented Focuses on action rather than on record keeping Individual oriented Development oriented Pervasive function Inherent in all organizations and at all levels. It permeates all the other functional areas Continuous function Ongoing i.e. never ending exercise

8. 9. 10.

11. 12. 13.


Future Oriented HRM is concerned with helping an organization achieve its objectives in the future by providing for competent an motivated employees Challenging function Due to dynamic nature of people Science as well as Art It is a science as it contains an organized body of knowledge consisting of principles and techniques. It is also an art because it involves application of the theoretical knowledge to the problems of HR Staff function Advisory in nature Young discipline Interdisciplinary HRM involves application of knowledge drawn from several disciplines like sociology, anthropology, psychology, economics etc. Nervous System Embedded in the structure

Personnel Management and HRM

Early employee specialists were called Personnel managers (or Personnel administrators), and this term is still in use. Personnel management (PM) refers to a set of functions or activities (e.g. recruitment, selection, training, salary administration, industrial relations) often performed effectively but with little relationship between the various activities or with overall organization objectives. On the other hand, HRM has existed in one form or another since the beginning of time. Certain HR functions, even though informal in nature, were performed whenever people came together for a common purpose. In recent decades, however, the processes of managing people have become more formalized and specialized. As a result, a growing body of knowledge about these processes has been accumulated by practitioners and scholar

HRM and 3 Ps
People core strength of an organization. Any resource can be replaced but not HR Processes evolve over a period of time. IT enabled environment facilitates engineering effortlessly Performance the pillars of performance are people and IT. Organizational performance in terms of value creation and return on investment

Scope 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 :It is a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2. Job analysis design :It gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements 3. Recruitment and selection Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM.

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4. Orientation and induction :Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM.

5.Training and development :Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience.
6. Performance appraisal :Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee.

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7. Compensation planning and remuneration :There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration 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 to look into the different methods of motivation. 9. Industrial relations :Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.

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Scope : Indian Institute of Personnel Management




The Labor or Human Resource Aspect : It is concerned with manpower planning, recruitment, selection, placement, induction, transfer, promotion, demotion, termination, training and development, remuneration, incentives and productivity The Welfare Aspect : This aspect is concerned with working conditions and amenities such as canteen, crches, rest rooms, housing, transport, education, medical help, health and safety, washing facilities, recreation and cultural facilities etc. The Industrial Relations Aspect : This is concerned with the companys relations with the employees. It includes, union-management relations, collective bargaining, grievance handling, settlement of industrial disputes etc.


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