What is HRM??

It is a organisational funcution that focuses on• Recuritment• Management• DirectionOf people who work in the organisation.

It deals with the issue related to people such as:Compensation

HiringPerfomance management

SafetyWellnessBenefits

MotivationCommunication

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.DownsizingThe planned elimination of jobs.(“head count”)2. OutsourcingContracting outside the organisation to have work done that formely was done by internal employees.3. Employee leasingThe process of dismissing employees who are then hired by a leasing company(which handles all HR-related activites) and

contracting with that company to lease back the employees.4. Hidden cost of layoffSeverance 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.Worker’s who aren’t afraid, knowing their jobs are safe.

• Innovations in HRM