HUMAN RESOURCE MANAGEMENT UNIT -1

Nature and Scope of HRM

What is HRM?
HRM is concerned with the peoples dimension in the organization

Facilitating the competencies and retention of skilled force

Developing management systems that promote commitment Developing practices that foster team work Making employees feel valued and rewarded.

Prof.Suje esha Rao

Definition
Human resource may be defined as the art of

procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. maintenance of Human Resources in an organization.

HRM refers to acquisition, retention, motivation and

Importance of HRM
1. 2.

Enterprise Level
a)

Retain best people in the organization

Promotes team work and spirit Excellent growth opportunities Work with diligence and commitment

Individual Level
a) b) c)

3.

Society Level
a) b)

Employment opportunities Scarce talents are put to best use

Objectives of HRM
1. 2. 3. 4. 5. 6. 7.

To help the organization reach its goals To employ the skills and abilities of the workforce efficiently To provide the organization with well trained and well motivated employees To increase to the fullest the employees job satisfaction and self-actualization To develop and maintain a quality of work life To communicate HR policies to all employees To help maintain ethical policies and behavior

Scope of HRM
Prospects of HRM Nature of HRM

Very Vast Covers all major

Employee Hiring

Industrial Relations
HRM

Employee Maintenance

Employee & Executive Remuneration Employee Motivation

activities in the working life of a worker -from time an individual enters into an organization until he or she leaves comes under the purview of HRM

Functions of HR
MANAGERIAL FUNCTIONS Planning Organising Directing Controlling OPERATIVE FUNCTIONS Staffing Development Compensation Motivation

Maintenance
Integration
Prof.Suje esha Rao

Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits Prof.Suje
esha Rao

DEVELOPMENT

COMPENSATION & MOTIVATION

Operative functions of HR (contd.)

MAINTENANCE
Health, Safety, Welfare, Social security Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining

INTEGRATION

Prof.Suje esha Rao

Human Resource Philosophy

It depends on management s beliefs and

assumptions about people their nature ,needs values and their approach to work

Approach to treat human being

Commodity Approach
Machine Approach Humanistic approach

Human Resource philosophy-basis

Human beings are the most important assets in the

organisation Human beings can be developed to a great extent. Human beings feel committed to their work in the organisation if they develop a feeling of belongingness with it It is the responsibility of organisation to create healthy and motivating work climate

Human Resource Philosophy

Human resource is best allocated to achieve

optimum productivity and efficiency

Pay and benefits offered should be fair and equitable Employees are encouraged to well equip themselves

for the current job and latest development Reward is based on merit. Two way communication is encouraged between employer and employee are promoted as a means of building mutual understanding and trust.

Human Resources Approach

People do not dislike work if they have helped

establish objectives Theory Y- Most people can exercise a great deal more self-direction, self-control and creativity than are required in their current jobs Managers job is to use untapped human potential Manager should create a healthy, safe and convenient environment Manager should provide self-direction to the subordinates Expanding subordinates influence Work satisfaction

The Changing Environment of Human Resource Management

Globalization Trends Globalization Trends

Changes and Trends in Human Resource Management

Technological Trends

Trends in the Nature of Work

Workforce Demographic Trends

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The Changing Environment of Human Resource Management

Globalization Trends-It is the tendency of firms to

extend their sales ,ownership to new market abroad E.g sony,apple,mercedes benz It reduces labour cost Sales Expansion Forming partnership

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 Globalization-More globalization means more

competion and more pressure means ,oer pressure to be number one.

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 Technological Trend-It includes invention and

techniques of doing work It affects organisation in two ways Defining nature of jobsTechnology determines the type of skill to be possessed by the job performers Affecting HRM practices-By linking computers,fax machines ,copiers, printers information can be spread faster
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 Trend in the Nature of work-Technology impacts

how people work and on the skills and training todayss workers need The todays employer seek sophisticated selection system,training etc

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 Demographic trend-This can have a significant

impact on the workforce around the world. This include age, sex and gender of the work force. Impacts such as the aging workforce, more females entering the workforce and the increase in migrants means that organizations are increasingly going to have to work on their equal opportunity policies, concentrate on talent management and succession planning.
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 Demographic Trend Demographers consider India as one of the youngest

countries in the world

Carefule planning should be made to use the young

database of India

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Changing Environment of HRM:

Economic Environment
Legal Environment Technological Environment Socio-cultural environment

Economic Environment
Population and workforce
Workforce market condition National Income Inflationary Pressure

Legal Environment
Employee remuneration,safety,working conditions

and industrial relations systems must conform to various legal prescriptions

Technological Environment
Technology affects an organization in two ways
Defining nature of jobs Affecting HRM practices.

Socio-Cultural Environment
Defined as consisting of

attitudes,beliefs,desires,expectations and customs of the society.

HR and Competitive Advantage

Competitive advantage Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share. Superior human resources are an important source of competitive advantage

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How to enjoy competitive advantage

The company should be cost leader,should deliver

value for money.

It must have competent and committed workforce The company should consider quality as a priority .

HR Role to attain competitive advantage

It bridge gap between employee expectations and

organizationsal requirements by adopting appropriate HR policies,strategies and practices. HR policies are jointly developed and implemented by HR and operating managers. HR puts focus on quality,customer service,employee involvement,teamwork and productivity. HRM strategies are in tune with employee expectations,customer needs and changing competitive requirements.

Strategic Human Resource Management

Strategic Human Resource Management

It means formulating and executing human resource

policies and practices that produces the employee competencies and behaviours the company needs to achieve its strategic aims.

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Strategic Human Resource Management

SHRM is proactive in nature SHRM believe that organizational key assets are its

people. Gives priority to managing people Is transformational in nature helps people to learn and adapt quickly .

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Strategic Human Resource Management

SHRM-offers three critical outcomes Increased performance Enhanced customer & employee satisfaction Increased shareholder value

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Strategic Human Resource Management

Examples
Dell-The essence of Dells competitive strategy has

always been to be a low cost leader The human resource managers use various HR strategies to support Dells low cost aims Dell delivers most of its human resource services not through a conventional Human Resource department but via web. E.g hiring ,compensation ,employee referal tool
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Strategic Human Resource Management

Strategic Human Resource Management
The linking of HRM with strategic goals and objectives

in order to improve business performance and develop organizational cultures that foster innovation and flexibility.

Help in mergers & Acquisition

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HRs Strategic Challenges

Strategic plan
A companys plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage. Strategic formulation HR helps top management formulate strategy in a variety of ways. Strategic Execution They play an important role in executing the strategies as well
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Line and Staff Aspects of HRM

Line manager A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks. Staff manager A manager who assists and advises line managers.

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Line Managers HRM Responsibilities

Placing the right person on the right job Training employees for jobs that are new to them Improving the job performance of each person Gaining creative cooperation and developing smooth working

relationships

Interpreting the firms policies and procedures Developing the abilities of each person Protecting employees health and physical condition

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Line and Staff Relationships

Line Relationships exists between superior and

subordinate. Line refers to those positions of an organization which have responsibility, authority and are accountable for accomplishment of primary objectives.

Line and Staff Relationships

Staff Relations

When positions are created to secure advice, guidance, information, help or assistance, counseling etc. in the process of attaining organizational goals Staff authority is advisory. A staff manager helps serve, investigate, plan, solve special problems, supports line effort, provides ideas and has special expertise.

Human Resource Managers Duties

Line Functions Coordinative Functions Staff(assist and advise) functions

 Line Function
An HR manager possesses a line authority over his

own department to accomplish the task and roles assigned to each employee of the department. And

 A Coordinative Function: An HR manager is also a

coordinator of all the decision, activities in the personnel area. This is referred to as functional control

 A Staff Function: He only advices line.Acceptance

of the advice depends on the discretion of the line manager. Such a function involves assisting on areas such as training, evaluating, rewarding, counseling, promoting, and firing of employees, etc.

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Cooperative Line and Staff HR Management

1. The line managers responsibility is to specify the

qualifications employees need to fill specific positions.

2. HR staff then develops sources of qualified

applicants and conduct initial screening interviews best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants.

3. HR administers the appropriate tests and refers the

HR Manager Role
The conscience Role-Is a humanitarian role who

reminds the management of its morals and obligations to its employees

The Counsellor-Employees who are dissatisfied with

the present job approach the HR manager for counselling

 The mediator: HR manager plays the role of a peace

maker.He settles the disputes between employees and management.

The Spokesman:He is frequent spokesman for or

represenatative of the company

 The problem solver-He acts as a problem solver with

respect to the issues that involve human resources management. The change agent:He introduces changes in various existing programmes.

 THANK YOU