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Human Resource Management

Module 1

Objectives, functions, responsibilities, evolution development of HRM


Jinuachan Vadakkemulanjanal
Vimal Jyothi Institute of Management & Research- Chemperi
Kannur Dt, Kerala, India-670632. www.vjim.ac.in; jinuachan@vjim.ac.in; +91-460-2213399

Module -1
Introduction to Human Resource Management,
History
Concept of HRM- Nature, Scope
Functions: Management functions
Functions: Operational and advisory
Objectives-Processes of HRM
Case study: HR functions
Importance and Evolution of HRM
Case study/ presentation
Roles and Responsibilities of HR managers
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HRM jinuachan@gmail.com

Introduction to HRM
HRM is the most important function in
organizations designed to maximize employee
performance in tune with employer's strategic
objectives.
It is primarily concerned with the management
of people within organizations, focusing on
policies and on systems.
Significance of HRM: Organizational, social and
professional.
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Introduction to HRM

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HRM
HRM is a process of making the efficient and
effective use of people so that the organizational &
individual goals are achieved.
Human resource management is the planning,
organising, directing and controlling of the
procurement, development, compensation,
integration, maintenance, and separation of
human resources to the end that individual,
organisational and social objectives are
accomplished.- Flippo
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Historical development
Vital principles of HRM were used in
prehistoric times.
Mythological Events: Cast system
Selecting tribal leaders: Mooppan system
Safety, health, hunting, and gathering: Ethos

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1750 BC (Code of Hammurabi)


Promote welfare of people
Make Justice
Destroy Evil
Property Rights
Personal Issues
Professional Services
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Some other Ancient Instances


In first century Ad Roman philosopher pliny
warned about the health hazards of employees
handling zinc and sulphur.
In 16th century- German scientist Georgious
Agricola Occupational hazards of employees and
suggests methods for improving occupational
health.
In 1700 Bernardo Ramazzini, known as the "father
of industrial medicine," published in Italy the first
comprehensive book on industrial medicine, DE
Morbis Artificum Diatriba (The Diseases of
Workmen).
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The Origins of Labor: The Colonial Era


The Revolutionary Era 18th century
Growth of the Nation: Late 1700sEarly 1800s
Trade unions
The Stock Market Crash and the Great
Depression October 1929- 25% unemployment
The New Deal and Economic Recovery- Social
Security Act of 1935
World war 2nd,
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Taylors scientific management.


The Hawthorne studies.
Maslows hierarchy of needs.

Laws: 1970s Employment Law etc


Personal management system
HRM
Modern management in HR

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In 18th century Abraham Lincoln viewed


all American workers as potential
entrepreneurs.
In 19th century Abraham Lincoln viewed
all American workers as potential
entrepreneurs.
The first recorded modern case of
dedicating a separate unit or department
for HRM is from 1901 in USA.
George Elton Mayo in Hawthrone Studies
was credited to Human Relation
Movement.
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Scenario in 20th Century


The spread of multinationals and large corporations
created a highly skilled professional group of
human resource personnel.
Universities and Business Schools started teaching
different aspects of HRM in the 1990s.
There were many challenges faced by contemporary
HR.
In India the first dedicated HRD department started in
1975 at L&T. Uday Pareek and T.V Rao in 1975
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outlined a philosophy
the new HRD System .

Employee
Relation
Industrial
Relation

Personal
Relation

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Human
Resource

Concept of HRM- Nature, Scope

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HR Functions
1. Managerial Functions: Planning, organizing,
directing & controlling
2. Operative Functions: employment-RSI, training
&development, compensation, welfare,
motivation, personal records HRIS, IR,
separation
3. Advisory Functions: Top Management,
departmental heads for DSS
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HRM jinuachan@gmail.com

HR : Managerial functions

Planning
Organizing
Directing
Controlling

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Planning
It determine how the organization should move from its
current manpower position to its desired manpower
position
It support to achieve /identify organisational goals and
formulation of policies and programmes for achieving
them.
It is a future oriented function concerned with clearly
charting out the desired direction of business activities in
future.
Forecasting is one of the important elements in the
planning process. Other functions of HRM depend on
planning function.
It helps to have the right number and the right kinds of
people, at the right place, at the right time, doing things,
so that organization and the individuals get maximum
long-term benefits. HRM jinuachan@gmail.com

NEEDS/reasons for HRP

Employment-Unemployment Situation
Technological Change
Organizational Change
Demographic Change
Skill Shortage
Governmental Influences
Legislative Control
Impact of the Pressure Group
Systems Approach
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4 Planning phases
1. It involves the gathering and analysis of data
through manpower inventories and forecasts.
2. The second phase consist of establishing
manpower objectives and policies and gaining top
management approval of these.
3. The third phase involves designing and
implementing plans promotions to enable the
organization to achieve its manpower objectives.
4. Control and evaluation of manpower plans/set
programs to facilitate progress of organization
and the individuals.
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Five Phases for Human Resources Planning


1. Analyzing:
2. Forecasting: Demand versus supply analysis.
3. Planning
4. Implementing
5. Evaluating: Feedback on effective of outcomes.
Methods: Free hand estimate, HR availability report
of departments, Trend analysis, ratio analysis,
Nominal Group Technique, Delphi Technique,
Group Think, Managerial Judgment, Statistical
Forecasts, Computer Modelling, Succession
Planning, Departmental Estimates.
Plz refer lecture note for the explanation of above
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Organizing
Organising is a process by which the structure
and allocation of jobs are determined.
It involves giving each subordinate a specific
task of establishing departments, delegating
authority to subordinates, establishing
channels of authority and communication,
coordinating the work of subordinates etc.

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Staffing
It is a process by which managers select, train,
promote and retire their subordinates
This involves deciding what type of people
should be hired, recruiting prospective
employees, selecting apt employees, setting
performance standard, compensating
employees, evaluating performance,
counselling employees, training and
developing employees.
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Directing function
Directing/leading is the process of activating
group efforts to achieve the desired goals.
It includes activities like getting subordinates
to get the job done, maintaining morale
motivating subordinates etc. for achieving the
goals of the organisation.

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Controlling
It is the process of setting standards for
performance, checking to see how actual
performance compares with these set
standards, and taking corrective actions as
needed
It may be real time or historical in nature

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Operative function
The operative/service functions are those which
are relevant to specific department.
These functions vary from department to
department depending on the nature of the
department.
It ensure the right people for right jobs at right
times.
These functions include procurement,
development, compensation, Integration and
maintenance functions.
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HRM jinuachan@gmail.com

Operative function: Procurement


It involves procuring the right kind of people
in appropriate number to be placed in the
organisation.
It consists of activities from planning to
separation; such as manpower planning, job
analysis, recruitment, selection, placement
and induction or orientation, transfer,
promotion of new employees.
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Operative function: Development


This function involves activities meant to improve
the knowledge, skills aptitudes and values of
employees so as to enable them to perform their
jobs in a better manner in future.
These functions may comprise TNA, training to
employees, executive training to develop
managers, succession planning, organisation
development to strike a better fit between
organisational climate/culture and employees.
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Operative function: Compensation


Compensation function involves determination of
wages and salaries matching with contribution
made by employees to organisational goals.
It ensures equitable and fair remuneration for
employees in the organisation.
It consists of activities such as job evaluation,
wage and salary administration, bonus,
incentives, pay roll administration, benefits and
perks etc.
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Operative function: Maintenance


It is concerned with protecting and promoting
employees while at work. Various benefits such
as housing, medical, educational, transport
facilities, etc. are provided to the employees.
Several social security measures such as
provident fund, pension, gratuity, group
insurance, etc. are also arranged.

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Significance/role/need/Objectives of HRM
1) To provide, create, utilize and motivate employees to accomplish
organizational goals.
2) To create a sense and feeling of belongingness team-spirit and
encourage suggestions from employees.
3)To ensure mutual respect for human beings. To identify and
satisfy the needs of individuals in tune with corporate culture.
4)To ensure reconciliation of individual goals with those of the
organization.
5)To achieve and maintain high morale among employees.
6) To provide the organization with well-trained and well-motivated
employees.
7) To increase to the fullest the employees job satisfaction and
self- actualization.
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Objectives of HRM
8) To develop over all personality of each employee in its
multidimensional aspect.
9) To be ethically and socially responsive to the needs of society.
10) To enhance employees capabilities to perform the present job.
11) To equip the employees with precision and clarity in
transaction of business.
12) Effective maintenance of Organizational Structure for the
enhancing productivity and smooth conduct of work
13) Identify the fit of each one and develop the KASs , USPs for the
succession and job satisfaction
14) Manage the IR issues and address the grievance
15) Provide space for personal growth and family welfare
16) To secure integration of individual and groups in securing
organizational effectiveness. To instill team spirit in
employees.
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17. To manage change to the mutual advantage of


individuals, groups, the organization and the society.
18. Provide hygiene and safety atmosphere to the stake
holders in and out
19. To develop and maintain a quality of work life through
welfare activities and maintain work life balance.
20. Ensure transparency in recruitment and promotion
21. Act as the integrating force for the different
department and with outside stake holders ( like govt)
22. Manage all the aspect of the employment issues and
welfare starting from HR planning to separation
23. To ensure that, there is no threat of unemployment,
inequalities, adopting a policy recognizing merit and
employee contribution, and condition for stability of
employment.
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Strategic HRM

Organizational strategies
and Vision

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Role of HR Manager
Operational Goal
Administrative role
Fire fighting role/ Grievance management
Welfare management services

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Role of HR Manager

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Role of HR Manager

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Role of HR Manager

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Role of HR Manager

HRM jinuachan@gmail.com

HRM jinuachan@gmail.com

Assignments
Directions:
3-5 pages Hand written, with neat appearance
Provide 10 different questions and answers for the assigned topic
Submit by Monday(29th feb, 2016) eve at reception with ur name and PRN

Topics
Nature and scope of HRM
Historical development of the concept
Management functions of HRM
Operative functions
Need for Advisory functions

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Assignments- Group
Prepare 10 slides about the topics assigned to
each group based on the text book instructed.
-Presentation Date: March 10&11
1. Human Capital- Book 228, pp18-21; Sanjeev Kumar
singh
2. Personal Management in Org context; book 589; CS
Venkitta Raman; pp1-27
3. Managing change; pp15-20; snell book 1194
4. Personal management; Tripathi, pp1-13;
5. HRM; Tripathi, pp13-17
6. Managing people, 2-23; Alan Price; book 1234
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Assignments case study


Directions
1. Read and understand the case
2. Prepare the summery of the case with issues,
theoretical frame work
3. SWOT
4. If there is a solution give pros and cons of it
5. Propose alternative solution if possible
6. Conclusion
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HRM jinuachan@gmail.com