Introduction to Human Resource Management

Definition of HRM
O It is the process of planning, organizing,

directing and controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual organizational and societal goals are accomplished.

Features of HRM
O Relates to managing people
O People-oriented process O Develops employees potentialities O Integral part of organizations O Continuous activity O Aims at securing employee co-operation O Objective-oriented O Challenging activity

Scope of HRM
PERSONNEL ASPECT
Human Resource Planning Recruitment Selection Placement Transfer Lay-off Retrenchment Remuneration Incentives Productivity

WELFARE ASPECT Canteens Crches Housing Transport Medical assistance Education Health & Safety Recreation facilities

INDUSTRIAL RELATIONS Union Management Relations Settlement of Disputes Collective Bargaining Grievance & disciplinary procedures Joint consultation

Functions of HRM
MANAGERIAL FUNCTIONS (a) Planning (b) Organizing (c) Directing (d) Controlling OPERATING FUNCTIONS (a) Recruitment & Selection (b) Training & Development (c) Compensation Management (d) Human Relations (e) Industrial Relations

BROADER CLASSIFICATION

Managerial Functions of HRM

O Planning - Planning is determination of personnel

programs and changes in advance that will contribute to the organizational goals. In other words, it involves planning of human resources requirement, recruitment, selection, training.
O Organizing - Complex relationships exist between

different departments in an organization. Thus, organizing establishes relationships among the employees so that they can collectively contribute to the attainment of company goals.

Managerial Functions of HRM

O Directing - The basic function of personnel

management at any level is motivating, commanding, leading and activating people. The willing and effective co-operation of employees for the attainment of organizational goals ,is possible through proper direction. Tapping the maximum potentialities of the people is possible through motivation and command. Thus, direction is an important managerial function

Managerial Functions of HRM

O Controlling - After planning, organizing and

directing; comes controlling. Controlling involves checking, verifying and comparing the actual scenario to the plan. Thus, action and operation are adjusted to pre-determined plans and standard through control . Auditing training programs, analyzing labor turnover records, directing morale surveys, conducting separation interviews are some of the means for controlling the personnel management function.

Operating Functions of HRM

O Employment - It is the first operative function

of HRM. Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as O Job analysis, O Human resources planning,

O Recruitment and selection,

O Placement, O Compensation management, etc.

Evolution of HRM

Objectives of HRM
O To attain maximum individual development of

the members of an organization

O To utilize manpower fully and effectively O To mold human resources effectively

O To establish desirable working relationships

between employer and employees

Objectives of HRM
O To ensure worker satisfaction O To help organization to achieve its goals O To maintain high morale and good human

relations
O To secure the integration of all individuals and

groups with the organization.

HRM is important because of:

O Increased globalization of the economy
O Technological advancement, challenges

and opportunities
O Changing business environment

O Changing characteristics of the workforce

Personnel Management
O It is concerned with the management of

personnel/ work force/ employees.

O Some people consider it synonymous with

HRM, while others consider the two terms different

Difference between PM and HRM

PM It is simply the management of people employed It is narrow in scope as compared to HRM PM views the man as economic resource who works for money or salary. HRM It is management of the people, their attitudes, abilities etc. It is broader in scope HRM treats the people as human beings having economic, social and psychological needs.

It uses latest techniques of training & It uses outdated methods of training development. and development Speed of decision making is fast Speed of decision making is slow HRM is the latest development in the Personnel Management precedes evolution of management of men. HRM

Role of HR Manager : Administrative Roles

O Policy maker - develop personnel policies O Administrative expert - record keeping, databases, processing O O O O O

benefits/claims, leave, medical facilities. Advisor - to line managers , redress grievances, conflict resolution, selection & training Housekeeper - recruiting, testing, ref check, employee surveys, salary & wage admin Counselor - on various personal and professional problems Welfare officer - provides & maintains canteens, hospitals, clubs, libraries, transportation, coop societies. Legal consultant - settling disputes, handling disciplinary cases, collective bargaining.

Operation Roles:
O Recruiter

O Trainer, developer, motivator

O Coordinator O Mediator

Strategic Roles:
O Change Agent - translate vision

statements into meaningful format. O Strategic partner - training center, design center.

Qualities of HR Manager
Personal Attributes
Initiative resourcefulness, perception maturity, analytical ability understanding of human behavior, Patience, Understanding, empathy, Perseverance

Education
Degree of recognized university Post-graduate degree/ diploma in sociology/ social work or HRM Degree in law is a desirable qualification

Experience & Training

Training in industrial psychology, labour legislation and industrial relations Work experience in HR department of an organization.

Challenges faced by HR Manager

HR Manager has to face challenges relating to the following :
1. Recruitment, selection and development of

manpower 2. Industrial relations 3. Provision of welfare activities 4. Information collection, storage and ready availability when required

Challenges faced by HR Manager (cont.)

5. Research on personnel management
6. Expansion, modernization and

automation 7. Collective bargaining and other techniques of labour participation in management 8. Execution of personnel policies 9. Trade union activities

Personnel Philosophy
O Personnel philosophy of the management

is reflected in how the company operates.

O Managements attitude towards

employees is one major area which relates to the personnel philosophy of the company.
O It is also reflected in the policies that the

company makes.

Factors influencing Personnel Philosophy

1. 2. 3. 4.

Top Management philosophy

Motivation of employees
Basic assumption about people Change in environment

Personnel Manual
O A personnel manual is a compilation of the

policies, procedures, working conditions, and behavioral expectations that guide employee actions in a particular workplace.
O It is also called as an employee handbook O It generally also includes information about the

company, employee compensation and benefits, and additional terms and conditions of employment

This is the index of a Sample Personnel Manual

Purpose of Personnel Manual

O Providing fair opportunities to all employees.
O Providing guidelines for consistent application

of personnel policies. O Avoiding difficulties due to misunderstandings of personnel policies. O Providing fundamental communication tool to supervisory staff. O Providing systematic approach to policies and practices.

Benefits of Personnel Manual

O Acts as a communication device.
O Avoids unfair employment practices. O Avoids indecision on personnel matters. O Enables managers to maintain cordial

personnel relations. O Training manual for supervisory staff. O Acts as a readymade guide to personnel policies and procedures

Benefits of Personnel Manual

O Acts as a document of companys faith on

fair personnel policies. O Acts as a reference book. O Useful tool in supervisory training. O Gives clear explanation of existing policies.

A Few HR Tips:
O Listen & respect
O Know the business O Know what is confidential O Master technology O Be a leader O Remember that reward takes many forms

in additional to financial gain.

Bibliography
1. 2. 3. 4. 5. 6.

Human Resource Management, Vipul Prakashan by N.G. Kale & M. Ahmed http://www.authorstream.com/Presentation/aSGuest131 531-1380343-introduction-to-hrm/ http://www.citeman.com/343-operative-functions-ofhrm.html http://www.citeman.com/343-operative-functions-ofhrm.html http://en.wikipedia.org/wiki/Employee_handbook http://www.citehr.com/357550-hr-tipsday.html#axzz1Vn9UmIBS

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