Professional Documents
Culture Documents
INTRODUCTION TO HRM
NATURE AND IMPORTANCE OF HRM
OBJECTIVES OF HRM
FUNCTIONS OF HRM
GENESIS AND GROWTH OF HRM IN INDIA
JOBS AND CAREERS IN HRM
WHAT IS HRM?
Organization:
Consists of people with formally assigned roles who
work together to achieve the organization’s goals.
A Manager:
Is responsible for accomplishing the organization’s
goals, who does so by managing the efforts of the
organization’s people.
A manager performs five main functions:
Planning, Organizing, Staffing, Leading and
Controlling
HRM focuses on one of these functions: Staffing
Defining HRM
“Human Resource is the sum total of the
knowledge, abilities and attitudes of all the
employees of an organization.
-Leon C. Megginson
“HRM is the process consisting of four
functions- acquisition, development,
motivation, and maintenance of human
resources.”
-David A. Decenzo and Stephen P. Robbins
Human Resource Management
HRM is the process of acquiring,
training, appraising, and compensating
employees, and of attending to their
labor relations, health and safety, and
fairness concerns.
NATURE OF HRM
HRM consists of people-related functions
hiring, training and development, performance appraisal,
compensation, safety and health, welfare, industrial relations
and the like.
Building of human capital.
Human capital refers to the stock of employee skills,
knowledge and capabilities that may not show up in a balance
sheet but have significant impact on a firm’s performance.
HRM necessitates alignment of HR policies and practices
with the organization’s strategies.
HRM involves the application of management principles
and functions to people management.
NATURE OF HRM (Cond.)
HRM assumes that it is the people who make the
difference. They alone are capable of generating value
and adding to the competitive advantage to
organizations.
HR activities are not the sole responsibility of the HR
specialists. Line managers are equally responsible
for carrying out the activities.
HR functions are not confined to business
establishments only. They are applicable to non-
business organizations too, such as education,
health care, recreation, and the like.
IMPORTANCE OF HRM
Strategy
HR improves the company's bottom line with its
knowledge of how human capital affects
organizational success.
Leaders with expertise in HR strategic management
participate in corporate decision-making that
underlies current staffing assessments and
projections for future workforce needs based on
business demand.
IMPORTANCE OF HRM (COND.)
Compensation
HR compensation specialists develop realistic
compensation structures that set company wages
competitive with other businesses in the area, in the
same industry or companies competing for employees
with similar skills.
They conduct extensive wage and salary surveys to
maintain compensation costs in line with the
organization's current financial status and projected
revenue.
IMPORTANCE OF HRM (COND.)
Employee Benefits
Benefits specialists are important to the organization
because they have the skills and expertise necessary to
negotiate group benefit packages for employees,
within the organization's budget and consistent with
economic conditions.
They also are familiar with employee benefits most
likely to attract and retain workers.
This can reduce the company’s costs associated with
turnover, attrition and hiring replacement workers.
IMPORTANCE OF HRM (COND.)
Safety
Employers have an obligation to provide safe working
conditions.
Workplace safety and risk management
specialists from the HR area manage compliance with
U.S. Occupational Safety and Health Administration
regulations through maintaining accurate work logs
and records, and developing programs that reduce the
number of workplace injuries and fatalities.
Workplace safety specialists also engage employees in
promoting awareness and safe handling of dangerous
equipment and hazardous chemicals.
IMPORTANCE OF HRM (COND.)
Liability
HR employee relations specialists minimize the
organization's exposure and liability related to
allegations of unfair employment practices.
They identify, investigate and resolve workplace issues
that, left unattended, could spiral out of control and
embroil the organization in legal matters pertaining to
national and state anti-discrimination and harassment
laws.
IMPORTANCE OF HRM (COND.)
Societal Objectives
Organizational
Objectives
Functional
Objectives
Personal
Objectives
Organizing
It is a process by which structure and allocation of jobs are
determined.
Directing
It is the process of activating group efforts to achieve the desire
goals. Directing means telling people to do a particular task.
Controlling
It is process of setting standard for performance, checking to see
how actual performance compare with these set standards, and
taking corrective actions as needed.
Operating Functions
Procurement:-
It involve procuring the right kind of people in appropriate
number to be placed in organization. It consist of activities such
as manpower planning, recruitment, selection, placement and
induction or orientation of new employees.
Development:-
This function involves activities meant to improve the
knowledge, skills aptitude and value of employees so as to
enable them to perform their job in better manner in future.
Operating Functions ( contd.)
Compensation:-
It involves determination of wages and salary matching with
contribution made by employees to organizational goals. It
consist of activities such as job evaluation wages &salary
administration, bonus, incentives etc.
Integration:-
It includes job satisfaction, grievance redressal, collecting
bargaining, conflict management, participation of employees
and discipline.
Operating Functions ( contd.)
Maintenance:-
It is concerned with protecting and promoting employees while
at work. For this purpose various benefit such as housing,
medical, transport, educational facilities etc. are provided to
employees.
SCOPE OF HRM
HRP
Job Analysis and Design
Recruitment and Selection
Orientation and Placement
Training and Development
Performance Appraisal
Job Evaluation
Compensation Management
Motivation and Communication
Welfare
Safety and Health
Industrial Relations
EVOLUTION OF HRM
The history of the HR function dates back to the
Taylor’s theory of scientific management and
Fayol’s administrative theory.
However, it was only during the 1930s and 1940s that
the function grew in significance, largely due to the
war-time imperatives. At this time, the HR function
matured and focused largely on labor relations and
staffing.
In India, the Tata and Steel Company (TISCO) was
one of the first organizations to set up a personnel
department in the year 1947.
EVOLUTION OF HRM (Cond.)
Benefit specialist
He provide information and counseling to employees
concerning fringe benefit offered. Job includes benefit
administrator, benefit planning analyst, group insurance
manager.
Employee and labor relations supervisors
Establish and maintain employee management relationship.
job includes labor relation specialist, employee counselor,
mediator, arbitrator, director of industrial relation.