Meaning of HR/Definition

• “The total knowledge, skills,creative abilities, talents and aptitudes of an organizations workforce as well as the value attitudes and beliefs of the individuals involved”

Meaning of HRM

• HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employees as well as organizational effectiveness.

• HRM means employing people,developing their resources,utilising,maintaining & compensating their services in tune with the job and organisational requirements with a view to contribute to the goals of the organisation,individual & the society.

Definition

• HRM can be defined as managing the functions of employing, developing & compensating human resources resulting in the creation & development of human relations with a view to contribute proportionately to the organizational, individual & social goals.

NATURE OF HUMAN RESOURCES• Complex Dynamisma. Economicb. Physiological c. Psychologicald. Sociologicale. Ethical BeingsSocial SystemChallenging Task

OBJECTIVES OF HRMSocial/Societal

Objectives

Organizational Objectives

Functional Objectives

Personal/Individual Objectives

Features of HRM• HRM is concerned with employees both as

individual & as a group in attaining goals.• It is concerned with the development of human

resources• HRM covers all levels & categories of employees• It applies to the employees in all types of

organizations in the world.• HRM is a continuous & never ending process.• It aims at attaining the goals of organization.• Organizational goals

• Individual employee goals • Goals of society• HRM is a central sub-system.• It is concerned mostly with managing human

resources at work.

Functions of HRM

Managerial Functions

Planning

Organizing

Directing

Controlling

Operative Functions

Employment

Human Resources Development

Compensation

Human Relations

Industrial Relations

Recent trends in HRM

HRM as a Central Sub-System

HRM

Marketing

Materials

Information

Production

Technology

Finance

Operative Functions1. EMPLOYMENT

Job AnalysisHuman Resource PlanningRecruitmentSelectionPlacement Induction & Orientation

2.HUMAN RESOURCE DEVELOPMENTPerformance AppraisalTrainingManagement DevelopmentCareer Planning & DevelopmentInternal MobilityTransfersPromotionDemotionChange & Organization Development

3.COMPENSATIONJob EvaluationWage & Salary AdministrationIncentivesBonusFringe benefitsSocial Security Measures

4.HUMAN RELATIONS5.INDUSTRIAL RELATIONS6.RECENT TRENDS IN HRM

Differences B/W P.M and HRMDIMENSIONS PM HRM

Employment Contract

Careful delineation of written contracts

Aim to be ‘beyond contract’ ‘can do’ outlook

Rules Importance of devising Impatience with ‘rule’

Guide to management action

Clear rules/mutuality procedures

‘Business need’

Behaviour referent

Norms/customs & practice

Values/mission

Nature of relations

Pluralist Unitarist

Conflict Institutionalized De-emphasised

DIMENSION PM HRM

Key relations Labour management customer

Corporate plan Marginal to Central to

Speed of decision slow Fast

Management role transactional Transformational leadership

Key managers personnel General/business/line managers

communication indirect Direct

standardization high Low

Job categories & grades Many Few

communication Restricted flow Increased flow

Job design Division of labour Team work

Training & development Controlled access to courses Learning companies

ORGANISATION OF HR DEPARTMENT• Two issues –Place of the HR department in the overall

set up–Composition of the HR department itself•HRM in a small scale unit•HRM in a large scale unit

• Composition of a HR/Department

HRM in a small scale unit

Owner/manager

Production manager

Sales manager

Office manager

Personnel assistant

accountant

HRM in a large scale unit

Chairman & managing Director

Director production

DirectorFinance

DirectorPersonnel/

HRM

DirectorMarketing

DirectorR&D

Composition of a HR/Personnel Department

Director-personnel/HRM

Manager Personnel

HRP

Hiring

Grievance Handling

Compensation

Manager Administration

PR

Canteen

Medical

Welfare

Transport

Legal

Manager HRD

Appraisal

Training & Development

Manager HR

PERSONNEL POLICIES AND PRINCIPLES• HRM policies as “a set of proposals and actions

that act as a reference point for managers in their dealings with employees”.

• “personal policies constitute guides to action. They furnish the general standards on which decisions are reached. Their genesis lies in an organization's values, philosophy, concepts and principles”.

A few specific personnel policies are:-

• Policy of hiring people• Policy on terms & conditions of employment• Policy with regard to medical assistance• Policy regarding housing, transport, uniform &

allowances.• Policy regarding training & development• Policy regarding industrial relations

FORMULATING POLICIESThere are 5 principal sources for determining the content & meaning of policies:-Past practice in the organization.Prevailing practice in rival companies.Attitude & philosophy of founders of the company

as also its directors & the top management.Attitude & philosophy of middle and lower

managementThe knowledge & experience gained from handling

countless personnel problems on a day-to-day basis.

Why adopt policies?• The work involved in formulating personnel policies

requires that the management give deep thought to the basic needs of both the organization & the employees.

• Establish policies ensure consistent treatment of all personnel throughout the organization. Favoritism & discrimination are, thereby minimized.

• Continuity of action is assured even though top-management personnel change.

• Policies serve as a standard of performance.• Sound policies help build employee motivation & loyalty.• Sound policies help resolve intrapersonal, interpersonal

& intergroup conflicts.

PRINCIPLES

• Principle of individual development to offer full & equal opportunities to every employee to realize his full potential.

• Principle of scientific selection to select the right person for the right job.

• Principle of free flow of communication • Principle of participation to associate employee

representative at every level of decision making.• Principle of fair remuneration

• Principle of incentive• Principle of dignity of labour• Principle of labour management• Principle of team spirit• Principle of contribution to national prosperity

CHALLENGES OF HRM• Globalization• Corporate re-organizations• New organizational forms• Changing demographics of work forces• Changed employee expectation• New industrial relations approach• Renewed focus on people• Managing the managers• Interests of the weaker sections of society.

HRM MODELHR Planning

Job Analysis

Recruitment

Selection

Placement

Training & Development

Remuneration

Motivation

Participative Management

Communication

Safety & Health

Welfare

Promotions

Industrial Relations

Trade Unionism

Disputes & Settlement

Future of HRM

Ethical Issues in HRM

Careers in HRM

• Supervisors/officer Level• Junior Management Level Jobs• Middle Management Level Jobs• Senior Management Level• General Management Level

Organization Design & Line & Staff Relationships

Steps in Designing Organizational StructureExternal EnvironmentOverall aims & purpose of the enterpriseObjectives ActivitiesDecisions to be taken across horizontal & vertical dimensionsRelationshipsOrganization structureJob structureOrganization climateManagement StyleHuman Resources