Introduction to Human Resource Management

Marymol Joseph

Introduction to HRM
What is HRM? Organization s methods and procedures for managing people to enhance skills and motivation Activities to enhance the organization s ability to attract, select, retain and motivate people

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Introduction to HRM

6 July 2011

Human Resource Management
It is a management function concerned with hiring , motivating and maintaining people in an organization. It focuses on people in organization

Page 3

Introduction to HRM

6 July 2011

to support administrative personnel functions . performance management . established by an organization . Page 4 Introduction to HRM 6 July 2011 . employee relations and resource planning.HRM Policies Human Resources policies are systems of codified decisions.

The establishment of policies can help an organization demonstrate that it meets requirements for diversity .ethics and training. Page 5 Introduction to HRM 6 July 2011 . The establishment of HR policies to document steps in procedures .including disciplinary procedures is now standard. In order to fire a person it may be necessary to show cause compliant with employment contracts and collective bargaining agreements .

etc Page 6 Introduction to HRM 6 July 2011 .Types of HRM Policies Attendance Policy Recruitment Policy Leave of Absence Policy Performance Planning and Evaluation Performance Probationary Period Compensation Compensatory Leave Overtime Leave Annual Leave Educational Leave .

3. Labor relations 4. Training and development 1.HRM HRM includes all activities used to attract &retain employees and to ensure they perform at a high level in meeting organizational goals The activities are Recruitment & selection 2. 5. Pay and benefits Performance appraisal and feedback Page 7 Introduction to HRM 6 July 2011 .

Components of HRM System Components should be consistent with the others . organization structure and strategy Recruitment & selection Training &Developm ent Relational Labor Pay & Rewards Page 8 Introduction to HRM Performanc e Appraisal & Feedback 6 July 2011 .

HRM Components Recruitment & Selection ‡Recruitment: develop a pool of qualified applicants. ‡Selection: determine relative qualification & potential for a job Page 9 Introduction to HRM 6 July 2011 .

HRM Components Training & Development field concerned with bettering the performance of individuals and groups in organizational settings ongoing process to develop worker s abilities and skills Page 10 Introduction to HRM 6 July 2011 .

motivate and reward workers. -Managers can evaluate and then give feedback to enhance worker performance Page 11 Introduction to HRM 6 July 2011 .HRM Components Performance appraisal &feedback: provides information about how to train .

bonuses -Increased pay provides additional incentive -Benefits .such as health insurance .HRM Components Pay and Benefits: high performing employees should be rewarded with raises .reward membership in firm Page 12 Introduction to HRM 6 July 2011 .

HRM Components Labor relations: managers need an effective relationship with labor unions that represent workers -Unions help establish pay and working conditions Page 13 Introduction to HRM 6 July 2011 .

HRM can mean a particular philosophy PM has a limited scope and an inverted orientation Page 14 Introduction to HRM 6 July 2011 .Personnel Versus Human Resource Management Sometimes means the same things.

Page 15 Introduction to HRM 6 July 2011 .Differences b/w HRM and PM Human Resource Management HRM views people as an important source or act to be used for the benefit of organization. employees &the society Personnel Management Personnel Management has often been seen as a bridge between the employer and the employee.

Strategic importance of HRM.Storey s Definition of HRM ‡ 'Human capability and commitment'. Storey argues that this is what differentiates organisations. It needs to be implemented into the organisational strategy and needs to be considered at the highest management level. ‡ Page 16 Introduction to HRM 6 July 2011 .

in New Perspectives on Human resource management.Versions of HRM John Storey (1995). made a distinction between two versions of HRM HARD HRM SOFT HRM Page 17 Introduction to HRM 6 July 2011 .

HARD HRM The hard approach emphasises: The interests of management Adopting a strategic approach that is closely integrated with business strategy Obtaining added value from people by the process of human resource deployment and performance management The need for a strong corporate culture expressed in mission and value statements and reinforced by communications. Page 18 Introduction to HRM 6 July 2011 . training and performance management process.

adaptability and high quality. The need to gain commitment of employees The interests of management and employees should coincide Integration and team work Page 19 Introduction to HRM 6 July 2011 .SOFT HRM The soft model of HRM is based upon human relations school and is identified by Storey as involving `treating employees as valued assets. a source of competitive advantage through their commitment.

The long term importance of HRM ‡ It needs to be integrated into the management functions and is seen to have importance consequences on the ability of the organisation to achieve its goals. The key functions of HRM which are seen to encourage commitment rather than compliance ‡ Page 20 Introduction to HRM 6 July 2011 .

Guest s Model of HRM The model is prescriptive in the sense that it is based on the assumption that HRM is distinctively different from traditional personnel management Guest has acknowledged that the concept of commitment is 'messy' and that the relationship between commitment and high performance is difficult to establish. Page 21 Introduction to HRM 6 July 2011 .

Page 22 Introduction to HRM 6 July 2011 .Guest s Model of HRM Linked to the strategic management of an organisation. Seeks commitment to organisational goals Focuses on the individual needs rather than the collective workforce. Enables organisations to devolve power and become more flexible Emphasises people as an asset to be positively utilised by the organisation.

David Guest's (1989. 1997) model of HRM has 6 dimensions of analysis: HRM strategy HRM practices HRM outcomes Behavior outcomes Performance outcomes Financial outcome Page 23 Introduction to HRM 6 July 2011 .

External Influences on HRM Economic conditions Legal requirements and constraints Demographics Technology Page 24 Introduction to HRM 6 July 2011 .

industrial production. supplier. agriculture. money and capital markets. national and per capita income. and industrial labor are the components of the economic is globalization. population.General Economic Conditions Economic environment refers to all those economic forces. customers. Growth strategy. which have a bearing on the HR function. Page 25 Introduction to HRM 6 July 2011 .

Legal Requirements and Constraints Government now an intermediary in the relationship between employers and employees Legal requirements and constraints are usually a reflection of social attitudes and opinions Page 26 Introduction to HRM 6 July 2011 .

occupation. length of service and employment sector. age. ethnicity. Six demographic variables are examined gender.Demographics The research aims of this study are to establish the demographic differences in attitudes towards the importance and application of four specific functional areas of HRM. Page 27 Introduction to HRM 6 July 2011 .

jobs tend to become more intellectual or upgraded. Page 28 Introduction to HRM 6 July 2011 . 4. The employees who pick up and acquaint themselves with new technology. Technology lays down the requirements for much of the human interaction in organizations.Technology Technology affects the HR function by the following ways 1. Jobholders will become highly professionalized and knowledgeable. With the advent of technology. 3. 2. the job will be challenging and rewarding.

‡organizational culture and conflicts. and ‡professional bodies Page 29 Introduction to HRM 6 July 2011 .Internal Forces Prominent internal forces are : ‡unions.

IR and separationare carried out in consultation with union leaders. compensation. selection. training. Page 30 Introduction to HRM 6 July 2011 .Unions All HR activities.recruitment. The role of unions becomes pronounced when a new wage agreement needs to be signed.

objectives can be achieved in several acceptable ways. means there are usually multiple paths to objectives. For example.Organizational culture and conflict Organizational culture reflects the past and shapes the future. This idea. called equifinality. Page 31 Introduction to HRM 6 July 2011 . The key to success is picking the path that best fits the organization's culture.

Page 32 Introduction to HRM 6 July 2011 . seminars and conferences for the benefit of HR professional.Professional Bodies Professional Bodies arrange periodic training programs.

Objectives of HRM Effective utilization of Human Resources Organizational structure of Relationship Development of Human Resources Rewards Compatibility of individual goals with those of an organization Maintain high moral Page 33 Introduction to HRM 6 July 2011 .

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