HRIS

UNDERSTANDING THE NATURE AND

SCOPE OF HRM
 Overview

What is HRM?

HRM Activities

Scope of HRM

Difference between HRM and PM

HRM Objectives and Functions

 HUMAN RESOURCE MANAGEMENT (HRM)
HRM defined as
HRM is management function concerned with hiring ,
motivating and maintaining people in an organization. It
focuses on people in organization
 HRM: Peoples Dimensions In Organizations

HRM: the application of management functions and

principles related to employees

HRM functions applicable every where (not for profit

and profit driven organizations)

Employees decisions are integrated

Employee decision brings effectiveness/efficiency in

organization

HRM includes all major activities in professional life

of a worker

All activities from employee entry to managing

performance and training until he or she leaves
 HRM Activities
HR Planning
Job Analysis and Design
Recruitment and Selection
Training and Development
Remuneration
Welfare
Safe and Healthy Work Environment
Industrial relations
1.
SCOPE
Introduction to HRM OF HRM

2. Employee Hiring

3. Employee Remuneration

4. Employee Motivation

5. Employee Maintenance

6. Industrial Relations

7. Prospects of HRM
 Scope Of HRM

Introducti
Prospects on of
Employee
of HRM
Hiring
HRM

Employee
Career
Remuneration
Developme HRM
nt

Employee
Employee
Motivation
IR Maintenanc
e
 The Semantics

There two terms

1. PM (Personnel Management )
2. HRM (Human Resource Management )
.
PM and HRM are different in scope and orientation
.
HRM is broad concept
.
PM and HRD (Human Resource Development) are
part of HRM
Dimensions PM HRM
1.Employment Care full delineation Aim to go behind
contract of written contracts contract
2.Rules Importance of Can do outlook,
Differences Between HRM and PM
devising clear rules impatience with rule
3.Guide to Procedures Business need
management action
4.Behaviour referent Norms ,customs and Values and mission
practices
5.Managerial task Monitoring Nurturing
vis--vis labor
6.Speed of decision Slow Fast
7.Management role Transactional Transformational
leadership
8.Communication Indirect Direct
9. Prized Negotiation Facilitation
management skills
10.Selection Separate ,marginal Integrated, key task
task
11.Labour Collective barraging Individual contracts
management contracts
12.Job categories Many Few
and grade
13.Job design Division of labour Team work
14.Conflict handling Reach temporary Manage climate and
truce culture
Dimensions PM HRM
Differences
15.Respect for Between
Labour is used as HRM andare
Peoples PM
used as
employees tool which is assets to be used for
spendable and the benefit of
replaceable organization
16.Shared interest Interest of Mutuality of interest
organizations are
uppermost
17.Evolution Precedes HRM Latest in evolution of
subjects
18.Locus of control External Internal
19.Oganization Mechanistic Organic
principles Top down Bottom-up
centralized Decentralized

20.Key relations Labour Management Customers

21.Initiatives Piecemeal Integrated
22.Pay Job evaluation Performance related
23.Training and Controlled accessed Learning companies
development to courses
 HRM Functions and Objectives

The main objective of HRM is to ensure the

availability of willing and competent force to an
organization

There are other objective of HRM too

1. Societal objectives

2. Functional objectives

3. Organizational objectives

4. Personal objectives
HRM FUNCTIONS AND OBJECTIVES

Societal Objectives

Organizational
Objectives

Functional
Objectives

Personal
Objectives
1 SocietalHRM Functions
objectives and Objectives

Societal objectives of HRM make sure that the

organization is socially and ethically responsible

Minimizing negative impact of societal demands on

organizations

For example: laws forces organizations to be ethical

in recruitment, to minimize the discrimination
against hiring based on ethnicity, race, and religion
etc.
 HRM Functions
2 Organizational objectives and Objectives

To determine the role of HRM in organizational

effectiveness

Its purpose is to assist/serve organization

HR department also serve other departments

 HRM Functions and Objectives
3 Functional objectives

To maintain department contribution in

organizational effectiveness

HR department services must fit into the

organizational needs
 HRM Functions and Objectives
4 Personal objectives

To assist employees in achieving their

personal/individual goals

Maximum contribution to organization

Personal objectives are achieved when employees are

satisfied, motivated and retained

Satisfied employees excellent services

excellent organizational
performance
 HRM Functions and Objectives

HRM Objectives Supporting Functions

Societal Objectives Legal compliance
Benefits
Union-Management relationship
Organizational Objectives Human Resource Planning
Employee Relations
Training and Development
Performance Appraisal
Placement
Functional Objectives Performance Appraisal
Placement
Personal Objectives Compensation
Training and Development
Performance Appraisal
Placement
Source: Aswathappa, 2008, p.10
 Doing the Benchmarking
Analysis
Return on Investment (ROI)
Calculation showing the value of
expenditures for HR activities.

C
ROI
AB
A = Operating costs for a new or enhance system for the time period
B = One-time cost of acquisition and implementation
C = Value of gains from productivity improvements for the time period
 HR Business Performance Calculations

226
Source: Adapted from Jac Fitz-Enz, Top 10 Calculations for Your HRIS, HR Focus, April 1998, S-3.
 HR Business Performance Calculations

Source: Adapted from Jac Fitz-Enz, Top 10 Calculations for Your HRIS, HR Focus, April 1998, S-3.
ORIGIN AND GROWTH OF HR
FUNCTION IN INDIA
ORIGIN OF HR
Its origin is dated back to 1800 BC., when
wage and incentive plans were included in
the Babylonian code of Hammurabi.
The worlds first management book, titled
Artasastra written by Kautilya, in 400 BC,
codified many aspects of human resource
practices in ancient India.
GROWTH OF HUMAN
RESOURCE
HRM in India could be traced back to the
period after 1920, when emphasizes was
on worker welfare.
In 1931, the royal commission on labor
suggested the appointment of labor officer
to protect workers interests .
Appointment of labor officer
The second world war
Enactment of Industrial dispute Act
Enactment of Factories Act
1960 and after..
FIRST PHASE
Immediately after independence the focus
was on four reasons :
Maintain discipline
Prevent their formation of and break-up the
leadership of trade unionism.
Prevent their formation of and break-up the
leadership of trade unionism
Handle recruitment and termination
Keep some form of attendance and
personnel records.
SECOND PHASE
IN 1960S, Indian industrialization got a fillip
with the rise of the public sector. Hence 3
more functions were added i.e.,
Labor welfare
Participative management
Industrial Harmony

In this period, the human relations

movement of the west also had its impact
on Indian organization.
THIRD PHASE
In 1970, the people management functions
was neatly divided into two :
Personnel officer
Establishment officers
Fourth Phase
In 1976, birth of worker training institute
and attitudinal development.
Fifth Phase
In 1985, organization shifted towards
making HR Department separately.
HRD and personnel function were clubbed
together.
Sixth phase
In early 1990s :
HRM was seen as strategy
Motivation and stress were considered to
bring change in HRM
Focus on organization objectives
Seventh Phase
In the mid of 1990s, sub specialization like :
Industrial Relations
Training & Development
Information system
Eight phase
HRM is not selective management any
more
It became the part of Corporate Strategy
formulation and strategy implementation
team
Later Arrival of HRM in India
Late arrival of factory system
Low status of industrial worker
Professionalization of Human resource
Management
Social responsibilities of Business
Change of government attitude
Factors Impending the growth of
HRM in India
Abundance of cheap labor
Weak labor movement
Highly Authoritarian culture
Technological Backwardness
Instability in Employment
Unhealthy growth of Trade unions
Migratory characteristic of Indian labor
Evolving Role of HRM in India
Origin Of Human Resource Management in
India
The police Man
The Welfare Man
The law Man
The Liaison Man
The HR Man
Human Resources and Technology
HR and the Internet
Conversational resources
Reference sources
Intranets
ESS & MSS
Benefits of an HRIS
Improves equality of information
Reduces admin burden
Improves speed of information
Improves flexibility of information
Improves services to employees
Produces HR metrics
Components of an HRIS
Hardware
Software
Data
Procedures and users
 Functional components of an
HRIS
Inputs Transformatio Outputs
n
Employee
information, Computers Reports
company policies & and software
procedures

Control system (feedback)

 Types of HRISs
Concentrated HRIS
Distributed HRIS
Independent HRIS
Hybrid approach
Types of HRISs
EDP (electronic data processing)
MIS (management information system)
DSS (decision support system
Reasons for the slow introduction of computer-
based systems in HR departments

Lack of support by top management

Satisfaction with the status quo
Defensiveness about revealing HR operations
Lack of HRIS knowledge and skills by HR managers
 Fully developed HRIS
database Training &
Succession Career development
planning developme
nt & Affirmative
planning action
Skills Employment
inventory equity

HR planning DATABAS Personnel

& E module
forecasting Corporate, Bio-
Compensati graphical,
on Histo-rical,
Company/ HR
administrati
Position
policies
on Benefits
Future use Health & control
Health Applicant
claims safety
tracking
 Applications of the HRIS
database modules
Applicant-tracking module
T&D module
Position control module
Wage & salary administration module
HRP module
Skills inventory module
Succession planning module
Basic personnel module
 Why do HRISs fail?
Lack of management commitment & resources and
inadequate numbers of personnel are made available
Project team not assigned for the duration of the project
Project is set up for failure (political intrigue, conflict &
hidden agendas)
Incorrect decisions are made poorly written needs-
analysis reports
Key personnel are not included in the project team
Clients are not surveyed/interviewed to determine their
needs
Development, implementation
& maintenance of an HRIS
database
Phase I Needs analysis
Phase II Design & development
Phase III Implementation & maintenance
 Securing the integrity of HR
data
Biggest risk
Keeping records unaltered
Controlling access
Security technology
 Summary
Automation came late to the HR department. When it did, the
system put in place resembled payroll more than personnel.
The appearance of the personal computer (PC), perhaps more than
any other single event, shifted information control away from the
data processing/MIS department.
The computer is becoming an integral part of the HR department. As
a tool, it has moved beyond producing simple reports to helping HR
managers make complex decisions. Human resource information
systems (HRISs) are making this possible. As a whole, an HRIS
creates more opportunities for the HR profession to influence the
company.
A typical HRIS is composed of a database, computer software and
hardware.
Summary
There has been an explosion of PC hardware
improvements and software offerings that greatly
expand the possibilities of HRISs. Small employers can
now benefit by getting the same results on PCs and
minicomputers that could only be obtained using
mainframes a few years ago.
The choice between mainframes, minicomputers and
PCs is complicated by the blurring of distinctions
between them. Technological improvements are
levelling the playing field between competitive
technologies, and a likely scenario is that a medium-
sized to larger employer will employ a combination of
networked computer systems.
Improvements in computer technology allow more
tasks to be accomplished than ever before. Very
sophisticated analyses can be performed on an ad hoc
basis. Even PC programs allow complicated 'what if'
questions to be answered.
Summary
Modern HRISs place HR professionals in a better position to play a
more integral role in the strategic management of today's
organisation. Computer technology, which first seemed to divide
departments, now serves to bring them closer together as they
share information, and more of it, to implement the business
strategy.
For an HRIS to be effective, users must be properly trained to use
it, and it must be used by those whom it is intended to serve.
HRIS concerns about the privacy of information that the database
contains are very important. Proper care must be taken to restrict
access to the system to those individuals who have a legitimate
need for its information.