What is HRM??

It is a organisational funcution that focuses on

Recuritment
Management
Direction
Of people who work in the organisation.
It deals with the issue related to people such as:
Compensation
Hiring
Perfomance management
Safety
Wellness
Benefits
Motivation
Communication
Administration & training.

CHALLENGES TO HRM
1. Managing globalisation:
.The tends towards opening up foreign markets to
international trade and investments.
.Anything, anywhere, anytime markets.
.Partnership with foreign markets.
.Impact on HRM:
.Different geographies, cultures, laws and business
practices.
.Identifying capable expatriate managers.
.Developing foreign culture and trade practices training
programs.
.Adjusting compensation plan for overseas work.

Managing technological
trends

Knowledge workers
The spread of e-commerce.
The rise of virtual workers.
HRIS.

Managing changes
Types of changes:
Reactive changes: change that occures
after external forces have already affected
performance.
Proactive changes:
Change initiated to take advantage of
targeted oppourtinities.
Formal change management programs helps
to keep the employees focused on the
success of the business.

Developing human capital

The development of knowledge, skills
and capabilities of individuals that
have economic value on the
organisation.
Valuable because:
Is based on company-specific skill.
Is gained through long term
experience.
Can be expanded through
development.

Containing cost
1.Downsizing
The planned elimination of jobs.(head count)
2. Outsourcing
Contracting outside the organisation to have work done that formely was done by internal employees.
3. Employee leasing
The process of dismissing employees who are then hired by a leasing company(which handles all HRrelated activites) and contracting with that company to lease back the employees.
4. Hidden cost of layoff
Severance and rehiring cost.
Accrued vacation and sick day payouts.
Pension and benefit payout.
Potential lawsuites aggrieved workers.
Loss of institutional memory and trust in management.
Lack of staffers when company rebound.
Survivours who are risk-averse, paranoid, and political.
5. Benefits of a no-layoff policy.
A fiercely loyal, more productive workforce.
Higher customer satisfaction.
Readiness to snap back with the economy.
A recuriting edge.
Workers who arent afraid, knowing their jobs are safe.

 Innovations in HRM