Human Resources
• HR is the total knowledge, skills, creative abilities, talents and aptitudes of an organisation’s workforce as well as the values, attitudes and beliefs of the individuals involved.

What is Human Resource Management (HRM)?
• Human resource management is the effective use of human resources in order to enhance organizational performance • HRM is the art of procuring, developing and maintaining competent workforce to achieve goals of an organisation in an effective and efficient manner

Evolution of HRM Concept
• Labour / Manpower – denotes physical abilities & capacities of employees – commodity - wages based on demand & supply • Personnel – persons employed in service – employees as a whole • HR- denotes resources of all the people who contribute their services to the attainment of organisational goals

industrial relations and personnel administration status Clerical Administrative Roles •Welfare administrator •Policeman •Appraiser •Advisor •Mediator •Legal advisor •Fire fighting 1970-80 Efficiency. through human assets growth-oriented Post 2000 Aggressive cost cutting in order to compete in a global environment Fight for survival to live for another day . usefulness Developmental •Change agent •Integrator •Trainer •Educator •Developer •Counselor •Coach •Mentor •Problem solver •Compete with the best and win 1990-2000 Incremental productivity gains Proactive. effectiveness dimensions added emphasis on human values.Evolution of HRM Period 1920-30 1940-60 Emphasis Welfare management Paternalistic practices Expanding the role to cover labor. aspirations. welfare. dignity.

efficiently & effectively .Importance of HRM • HR – most important resource • Put other resources to proper use • Helps transform lifeless factors of production into useful products • Capable of enlargement – produce extraordinary things when inspired (Competitive Advantage) • Can help organisation achieve results quickly.

Objectives of HRM • Maximize the return on investment from the organization's human capital and minimize financial risk • To align the capabilities and behaviors of employees with the short-term and long-term goals of the organisation .

OBJECTIVES OF HRM Personal Objectives Societal Objective Objective of HRM Organizational Objective Functional Objective .

Objectives of HRM • Societal objectives To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization • Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness • Functional objectives To maintain the department’s contribution at a level appropriate to the organization’s needs • Personal objectives To assist employees in achieving their personal goals in a manner that their personal goals enhance the individual’s contribution to the organization .

Objectives 1 ▫ ▫ ▫ 2 Societal objective Legal compliance Benefits Union-management relation Organizational objective ▫ ▫ ▫ ▫ ▫ ▫ ▫ Human resource planning Employee relations Selection Training and development Appraisal Placement Assessment .

3. ▫ ▫ ▫ Functional objective Appraisal Placement Assessment 4. ▫ ▫ ▫ ▫ ▫ Personal objectives Training and development Placement Appraisal Compensation assessment .

Social norms regulating individual conduct E. Values I. Self-estrangement usage H. Union plays B. Rules . Isolation or culture values conflict G. Image J.ENVIRONMENT OF HRM  Type of environment  Internal Environment  External Environment Internal Environment A. Fast changing technology D. Individuals the organization F. Culture of organization C.

External Environment • • • • • • • • Social environment Economic environment With the impact of globalization and rationalization Role of union and union leaders Cultural forces Political and legal Economically and socially weaker section Religious values .

from time an individual enters into an organization until he or she leaves. comes under the purview of HRM .Scope of HRM Prospects of HRM Nature of HRM Industrial Relations Employee Hiring HRM Employee Maintenance Employee & Executive Remunerat ion Employee Motivation  Very vast  Covers all major activities in the working life of a worker .

Human Resource Management Functions .

Recruitment .

magazines. company websites . trade papers and internal vacancy lists.Recruitment  The process by which a job vacancy is identified and potential employees are notified  The nature of the recruitment process is regulated and subject to employment law  Main forms of recruitment: through advertising in newspapers.

letter or curriculum vitae (CV) .Recruitment  Job description – outline of the role of the job holder  Person specification – outline of the skills and qualities required of the post holder  Applicants may demonstrate their suitability through application form.

Selection .

Selection  The process of assessing candidates and appointing a post holder  Applicants short listed – most suitable candidates selected  Selection process – varies according to organisation .

Selection  Interview – most common method  Psychometric testing – assessing the personality of the applicants – will they fit in?  Aptitude testing – assessing the skills of applicants  In-tray exercise – activity based around what the applicant will be doing. e.g. writing a letter to a disgruntled customer  Presentation – looking for different skills as well as the ideas of the candidate .

Employment Legislation .

the legislation relating to employees is important – chemicals used in a hairdressing salon for example have to be carefully stored and handled to protect employees.Employment Legislation • Increasingly important aspect of the HRM role • Wide range of areas for attention • Adds to the cost of the business Even in a small business. .

Copyright: Mela.Discrimination • Crucial aspects of employment legislation: ▫ Race ▫ Gender ▫ Disability Disability is no longer an issue for employers to . they must take reasonable steps to accommodate and recruit disabled workers.sxc. http://www.

Discipline .

Discipline  Firms cannot just ‘sack’ workers  Wide range of procedures and steps in dealing with workplace conflict  Informal meetings  Formal meetings  Verbal warnings  Written warnings  Grievance procedures  Working with external agencies .

Development .

Development  Developing the employee can be regarded as investing in a valuable asset  A source of motivation  A source of helping the employee fulfil potential .

Training .

Training  Similar to development:  Provides new skills for the employee  Keeps the employee up to date with changes in the field  Aims to improve efficiency  Can be external or ‘in-house’ .

Rewards Systems .

.Rewards Systems  The system of pay and benefits used by the firm to reward     workers Money not the only method Fringe benefits Flexibility at work Holidays. etc.

Trade Unions .

Trade Unions  Importance of building relationships with employee representatives  Role of Trade Unions has changed  Importance of consultation and negotiation and working with trade unions  Contributes to smooth change management and leadership .

Productivity .

Productivity  Measuring performance:  How to value the workers contribution  Difficulty in measuring some types of output especially in the service industry  Appraisal  Meant to be non-judgmental  Involves the worker and a nominated appraiser  Agreeing strengths. weaknesses and ways forward to help both employee and organisation .

successful business • Ways in which you can motivate employees – • Interact .Motivation • Motivating employees to perform up to their potential is the key to maintaining a productive.Give employees new and interesting challenges to keep them stimulated and learning .Pay employees for what they are worth and they will be happy to work.A job well done should be appreciated and encouraged • Pay them Right .Talk to your employees regularly • Recognition & Appreciation . • New challenges .

3.HRM Challenges With the ongoing changes in Human Resources Management (HRM). . Workplace diversity Change management Compensation and benefits Recruiting skilled employees Training and development. it’s important that managers. While there are certainly other issues. these are common to most any type business or size of company and having policies in place to ensure these challenges are met head-on can make the workplace more settled and peaceful for everyone. specifically. 4. 5. be aware of the challenges that today’s HRM team may face. 2. 1. executives and HR employees.

▫ Start with some basic information about the company  Logistics—size and complexity  Product market description  Strategic goals • Divide up the paper’s organizational context section ▫ Also consider structure and culture  How is the company managed overall?  What is the company’s culture? .First Project Assignment • Pick a company ▫ Big companies are usually easier ▫ This is first come. first served ▫ Try to think of companies that face unusual or especially interesting HR challenges.

Covansys India (IT industry). Satyam Computer Services Limited (IT industry). Dr. MindTree Consulting (IT industry). Hongkong and Banking Corporation (banking services). HCL Comnet (IT industry). Johnson & Johnson (consumer health care company). . Reddy’s Laboratories Limited (pharmaceutical company). HSBC.Mercer’s 2006 Best Companies to Work For in India • • • • • • • • • • Infosys Technologies Limited (IT industry). Sapient Corporation (business and technology consulting). Agilent Technologies (IT industry).

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