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Nature and Scope of Human Resource Management

Meaning and Definition

HRM is a management function that helps managers recruit, select, train and develop members of an organisation. HRM Peoples dimension

HRM Definition
A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisations and the employee to achieve their objectives.

HRM Definition
Is concerned with people dimension in management.Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives.

HRM Definition
Management is the planning, orgainsing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished.

Scope of HRM
HR Planning Job analysis and Design Recruitment and Selection Orientation and Placement, Training and Development Performance appraisal and Job Evaluation Employee and Executive Remuneration Motivation and communication Welfare, Safety and Health Industrial Relations (IR)

Importance of HRM
Social Significance
Balance the jobs available and job seekers Provide suitable and productive employment Maximise utilisation of the resources effectively Eliminate waste or improper use human resources Help people make their own decisions

Importance of HRM
Professional Significance
Maintain dignity of the employee as human Provide maximum opportunities for personal development Provide healthy relationship to different work groups Improve skills and capacities Minimise wrong postings, allocate work properly

Importance of HRM
Significance for Individual Enterprise
Create right attitude among employees through effective motivation Utilise the available human resources effectively Secure co-operation of the employees: achieve goals, psychological needs- love, affection, belongingness, esteem and self actualisation

Difference between HRM & PM HRM

HRM views people as an important source or asset to be used for the benefit of organisation, employees and the society. Philosophy of mutuality : mutual goals, mutual respect,mutual rewards and mutual responsibilities. ASPA changed its name to SHRM

Difference PM

between HRM &PM

PM has limited scope and an inverted orientation Viewed labour as a tool for benefits of the organisation Personnel Dept not respected, no productive employees PM treated as routine activity meant to hire new employee and maintain personnel records Never part of strategic management of business. Historically PM preceded HRM

Difference between HRM & PM

Dimension Employment Contract Rules Guide to Mgnt. Action Personnel Written, delineated Clear Procedures Human Resource Aim to go beyond contract Outlook, Impatience Business Needs

Behaviour referent

Norms/Custom Values/Missions s and Practices

Difference between HRM & PM

Dimension Personnel Human Resource Nurturing Customer Integrated Transformational Leadership Fast

Managerial /labour task Key Relations

Initiatives Management Role Speed of decision

Labour Management Piecemeal Transactional Slow

Difference between HRM & PM

Dimension Personnel Human Resource Direct Facilitation

Communication Indirect
Prized Management skill Selection Pay Conditions Negotiation

Separate, Marginal task Job Evaluation (Fixed grades) Separately negotiated

Integrated, key task Performance based Harmonisation

Difference between HRM & PM

Dimension Labour Management Job categories and grades Job design Personnel Collective bargaining contracts Many Human Resource Individual contracts Few

Division of labour Team work Manage climate and culture Learning companies

Conflict handling Reach temporary truce Training & Controlled access Development to courses

Difference between HRM & PM

Dimension Intervention focus Personnel Personnel procedures Human Resource

Respect for employees

Wide rangingcultural,structural and personnel strategies Labour treated People are treated as tool : as assets to expendable and benefit replaceable organisation/ employees/society

Difference between HRM & PM

Shared interests Evolution

Organisational interests are uppermost Precedes HRM

Human Resource
Mutuality of interests Latest in the evolution of the subject

Objectives of HRM
Societal To be ethically and socially responsible to the needs and challenges of society while minimising the negative impact of such demands upon the organisation.
Organisational To recognise the role of HRM in bringing about organisational effectiveness.

Objectives of HRM
Functional To maintain the departments contribution at a level appropriate to the organisations needs.

Personal To assist employees in achieving their personal goals, at least insofar as these goals enhance the individuals contribution to the organisation.

HRM Objectives and Functions

HRM Objectives

Supporting Functions 1.Legal Compliance 2.Benefits 3.Union management relationship

HRM Objectives and Functions

HRM Objectives Organisational Supporting Functions 1.Human Resource Planning 2.Employee Relations 3.Selection 4.Training & Development 5.Appraisal 6.Placement 7.Assessment

HRM Objectives and Functions

HRM Objectives

Supporting Functions
1.Appraisal 2.Placement 3.Assessment


HRM Objectives and Functions

HRM Objectives

Supporting Functions
1.Training & Development 2.Placement 3.Assessment 4.Compensation


Image & Qualities of HR Manager

Fairness & Firmness Tact and resourcefulness Sympathy and consideration Knowledge of labour other terms Broad Social outlook Competence

HR Policies
A policy is plan of action. Is a statement of intention committing the management to general course of action. Policy contains HR programmes, expression of philosophy and principles.
Policy are required for basic needs, consistency in treatment & continuity

Evolution of HRM
HRM emerged in 1970s Kautilyas Arthashastra in 4th BC Babylonian Code of Hammurabi 1800 BC minimum wage rate & incentive wage plan In India since 1920 : First world war, emergence of trade union The Royal Commission (1931) : Labour Welfare Officers : Selection of workers and settle grievances.

Evolution of HRM
Factories Act (1948) Welfare officers compulsory in industries employing 500 employees IIPM Kolkata, NILM in Mumbai : (Jute and textiles) Second World War : increased expectations of the workers : IR and Personnel admn integrated as PM 1970 : Shift from welfare to efficiency. 1980 : HRM and HRD Challenges 1990 : Human value and productivity through people.