H rm notes
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.
H rm notes
H rm notes
H rm notes
NATURE OF HUMAN RESOURCES
• Complex Dynamism
a. Economic
b. Physiological
c. Psychological
d. Sociological
e. Ethical Beings
Social System
Challenging Task
OBJECTIVES OF HRM
Social/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        Operative Functions


                                              Employment
               Planning
                                           Human Resources
              Organizing                     Development

                                             Compensation
               Directing

                                            Human Relations
              Controlling

                                           Industrial Relations

                                            Recent trends in
                                                 HRM
HRM as a Central Sub-System
                Marketing


    Finance                   Materials


                  HRM


   Technology                Information


                Production
Operative Functions
1. EMPLOYMENT
   Job Analysis
   Human Resource Planning
   Recruitment
   Selection
   Placement
   Induction & Orientation
2.HUMAN RESOURCE DEVELOPMENT
Performance Appraisal
Training
Management Development
Career Planning & Development
Internal Mobility
Transfers
Promotion
Demotion
Change & Organization Development
3.COMPENSATION
Job Evaluation
Wage & Salary Administration
Incentives
Bonus
Fringe benefits
Social Security Measures
4.HUMAN RELATIONS
5.INDUSTRIAL RELATIONS
6.RECENT TRENDS IN HRM
Differences B/W P.M and HRM
DIMENSIONS    PM                       HRM
Employment    Careful delineation of Aim to be ‘beyond
Contract      written contracts      contract’ ‘can do’
                                     outlook
Rules         Importance of devising Impatience with ‘rule’
Guide to      Clear rules/mutuality    ‘Business need’
management    procedures
action
Behaviour     Norms/customs &          Values/mission
referent      practice
Nature of     Pluralist                Unitarist
relations
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    Sales     Office    accountant
 manager     manager   manager


                          Personnel
                           assistant
HRM in a large scale unit


                          Chairman &
                           managing
                           Director


                           Director
 Director      Director                 Director    Director
production                Personnel/H
               Finance                  Marketing    R&D
                              RM
Composition of a HR/Personnel
             Department
                   Director-personnel/HRM

Manager           Manager
                                  Manager HRD           Manager HR
Personnel       Administration
      HRP                PR                 Appraisal

                                        Training &
     Hiring           Canteen          Development
   Grievance
                      Medical
   Handling

 Compensation         Welfare

                      Transport

                        Legal
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 POLICIES
There 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
  management
The 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 MODEL
      HR 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 Structure
 External Environment
 Overall aims & purpose of the enterprise
 Objectives
 Activities
 Decisions to be taken across horizontal & vertical
  dimensions
 Relationships
 Organization structure
 Job structure
 Organization climate
 Management Style
 Human Resources

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H rm notes

  • 2. 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”
  • 3. 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.
  • 4. 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.
  • 8. NATURE OF HUMAN RESOURCES • Complex Dynamism a. Economic b. Physiological c. Psychological d. Sociological e. Ethical Beings Social System Challenging Task
  • 9. OBJECTIVES OF HRM Social/Societal Objectives Organizational Objectives Functional Objectives Personal/Individual Objectives
  • 10. 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
  • 11. Individual employee goals • Goals of society • HRM is a central sub-system. • It is concerned mostly with managing human resources at work.
  • 12. Functions of HRM Managerial Functions Operative Functions Employment Planning Human Resources Organizing Development Compensation Directing Human Relations Controlling Industrial Relations Recent trends in HRM
  • 13. HRM as a Central Sub-System Marketing Finance Materials HRM Technology Information Production
  • 14. Operative Functions 1. EMPLOYMENT  Job Analysis  Human Resource Planning  Recruitment  Selection  Placement  Induction & Orientation
  • 15. 2.HUMAN RESOURCE DEVELOPMENT Performance Appraisal Training Management Development Career Planning & Development Internal Mobility Transfers Promotion Demotion Change & Organization Development
  • 16. 3.COMPENSATION Job Evaluation Wage & Salary Administration Incentives Bonus Fringe benefits Social Security Measures
  • 18. Differences B/W P.M and HRM DIMENSIONS PM HRM Employment Careful delineation of Aim to be ‘beyond Contract written contracts contract’ ‘can do’ outlook Rules Importance of devising Impatience with ‘rule’ Guide to Clear rules/mutuality ‘Business need’ management procedures action Behaviour Norms/customs & Values/mission referent practice Nature of Pluralist Unitarist relations Conflict Institutionalized De-emphasised
  • 19. 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
  • 20. 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
  • 21. HRM in a small scale unit Owner/manager Production Sales Office accountant manager manager manager Personnel assistant
  • 22. HRM in a large scale unit Chairman & managing Director Director Director Director Director Director production Personnel/H Finance Marketing R&D RM
  • 23. Composition of a HR/Personnel Department Director-personnel/HRM Manager Manager Manager HRD Manager HR Personnel Administration HRP PR Appraisal Training & Hiring Canteen Development Grievance Medical Handling Compensation Welfare Transport Legal
  • 24. 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”.
  • 25. 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
  • 26. FORMULATING POLICIES There 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 management The knowledge & experience gained from handling countless personnel problems on a day- to-day basis.
  • 27. 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.
  • 28. 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
  • 29. Principle of incentive • Principle of dignity of labour • Principle of labour management • Principle of team spirit • Principle of contribution to national prosperity
  • 30. 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.
  • 31. HRM MODEL HR Planning Job Analysis Recruitment Selection Placement Training & Development Remuneration Motivation Participative Management
  • 32. Communication Safety & Health Welfare Promotions Industrial Relations Trade Unionism Disputes & Settlement Future of HRM Ethical Issues in HRM
  • 33. Careers in HRM • Supervisors/officer Level • Junior Management Level Jobs • Middle Management Level Jobs • Senior Management Level • General Management Level
  • 34. Organization Design & Line & Staff Relationships Steps in Designing Organizational Structure  External Environment  Overall aims & purpose of the enterprise  Objectives  Activities  Decisions to be taken across horizontal & vertical dimensions  Relationships  Organization structure  Job structure  Organization climate  Management Style  Human Resources