It is defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

It is the process of acquiring, training, appraising and compensating employees and of attending to their labor relations, health and safety and fairness concerns.

HRM - Definition

Conducting the job analysisPlanning labor needs and recruiting job candidatesSelecting job candidatesOrienting and training new employeesManaging wages and salariesProviding incentives and benefitsAppraising performanceConducting interviews, counseling, discipliningTraining and developing managersBuilding employee commitment

It includes the personnel aspects of the management job, like

Objectives of HRMTo help the organization reach its goalsTo employ the skills and abilities of the work

force efficiently.To provide the organization with well trained

and well motivated employeesTo increase to the fullest the employee’s job

satisfaction and self actualization.To develop and maintain quality of work lifeTo communicate the HR policies to all

employees.To be ethically and socially responsible to the

needs of society

Nature of HRMPervasive functionAction OrientedIndividual OrientedPeople OrientedFuture OrientedDevelopment OrientedIntegrating MechanismComprehensive functionContinuous function

The scope of HRM is Very widePersonal Aspect: It is concerned with manpower

planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity etc.

Welfare Aspect: It deals with working conditions and amenities such as canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities etc.

Industrial Relations Aspect : This covers union – management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes etc.

Scope

Importance of HRM HRM helps an Organization and its people to

realize their respective goals in various ways. the same is categorized in the following levels :

• At the Enterprise level• At the Individual level• At the Society level• At the National level

At the enterprise level:Good HR practices help in attracting and retaining the best

people in the organization. It helps in training people for challenging roles, developing

right attitude towards the job and the company, promoting team spirit, commitment etc.

At the individual level: It promotes team work and team spirit among employees. It offers excellent growth opportunities to people who have

potential to rise. It allows people to work with diligence and commitment.

At the society level:Employment opportunities multiply.Scarce talents are put to best use.

Importance of HRM

1. At the Enterprise level

Attracting and retaining the best people in the Organization.

Training people for challenging roles.Developing the right attitudes towards the job

and the Company.Promoting team spirit among employees. Developing loyalty and commitment through

appropriate reward schemes. Increase productivity and profits.

2. At the Individual level

It promotes teamwork and team spirit among employees

It offers excellent growth opportunities to people who have the potential to rise

It allows people to work with diligence and commitment

Develop skills Job Satisfaction

3. At the Society level

Employment opportunities multiplyEnhance standard of livingScarce talents are put to best use.

4. At the National level

Effective use of human resources helps in exploitation of natural, physical and financial resources.

People with right skills and proper attitudes help the nation to get ahead.

Compete with the best in the world leading to better standard of living and better employment.

Industrial development.

Industrial Revolution: machines are brought in the production process, rapid progress in technology, jobs were more fragmented, specialization increased, but left workers with dull, boring , monotonous jobs. Govt. did very little to protect the interest of the workers

Scientific management: To improve efficiency and speed F W Taylor advocated scientific management. Scientific management is nothing but systematic analysis and breakdown of work into its smallest mechanical elements and rearranging into most efficient combination. Importance of training was also identified.

History of Personal Management/ Human Resource Management

Trade Unionism: Workers joined hands to protect against the exploitive tendency of employers and unfair labour practices. TU tried to improve work conditions, pay and benefits, disciplinary actions etc.

Human relations movement: After Hawthorne experiments conducted by Elton Mayo, productivity not only depends on rewards, and the job design but also on certain social and psychological factors also.. Human relations movement led to the implementation of behavioural science techniques in industry.

Human Resources approach: During early 60’s “pet milk theory” of human relationist’s had been largely rejected(happy workers are productive or happy cows give more milk). It was recognized that workers are unique and have individual needs. The trend move towards treating employees as resources or assets emerged.

1920-1930

Welfare management

1940-1960

Personal management

1970-1980

Development phase

1991-ownwards

Proactive- growth oriented phase

Evolution of HRM

Welfare phase- welfare management, maintaining records of employees such as attendance, leave etc. Roles: Welfare administrator, policeman

Personal management- Fire fighting stage- Employee disputes, trade unions, decisions taken by top management.

Roles: Advisor, mediator, legal advisor, fire fightingDevelopment phase- Importance given on efficiency

and effectiveness, emphasis on human values, dignity. Hr manager does the role of change agent, trainer etc.

Growth oriented – employees are considered as assets. Hr manager’s role- developer, counsellor, coach, mentor, problem solver

Managerial Function Operative function Advisory functions

Planning Acquisition Top ManagementOrganising Training &Development Department headsDirecting MotivationControlling Maintenance

Remuneration Working conditions Personnel records Industrial relations Separation

Functions of HRM

Operative functions of HR

STAFFING Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility

DEVELOPMENTCompetency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback

COMPENSATION & MOTIVATION

Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits

Operative functions of HR (contd.)

MAINTENANCE Health, Safety, Welfare

INTEGRATIONEmployment relations, Grievance, Discipline, Trade unions, Participation

HRM Environment - External

HRM Environment - Internal

HRM PoliciesPolicy – is predetermined course of action

established to guide the performance of work towards accepted objectives.

Importance -:

(1) Clear Thinking(2)Uniformity & Consistency of Admin.(3)Sence of Security(4)Control

Types of HR PoliciesOriginated policies – Made by top

Management.Appealed policies – Made on request to

handle certain situation, or if certain aspects are missing in the main policy.

Imposed policies – Imposed by Govt & Legal authorities.

General policies – Do not relate any issue, may represent the priority of Top Mgmt. (WPM).

Specific Policy – Related to specific issues like Recruitment, Transfer, Promotion etc.

3 distinct functions of HR Managers1. Line function: He directs the activities of the people

in his /her own departments2. Co-ordinate function :Ensures that the line managers

are implementing the firms HR policies and practices3. Staff Function :Assists in hiring, training, evaluating,

rewarding, counseling, promoting, and firing employees. Administers various benefit programmes

HR manager’s Duties

Transactional HR group: Focuses on using centralized call centers and outsourcing arrangements with vendors(benefits advisors) to provide specialized support in day to day transactional HR activities.

Corporate HR Group: Focuses on assisting top management in big issues such as developing the long term strategic plans on the company

Embedded HR group: Assigns HR generalists directly to departments to provide localized HRM assistance to the department needs.

The centers of expertise: Are specialized HR consulting firms within the company, providing specialized assistance in areas such as organizational change

New Approaches to Organizing HR

Global HRM GHRM: utilization of global human resources to

achieve organizational objectives without regard to geographic boundaries.

“Going Global” has a major impact on all HRM functions, from planning, recruitment, and selection to compensation and benefits, to human resource development, to safety and health issues, to employee and labor relations. Each of the various functions has an even greater impact on organizational performance than in domestic companies.

Additional challenges include: political and legal factors, cultural/language issues and maintaining corporate identity/culture, economic factors, and labor-management relations.

E-HRE.HR: the application of conventional, web, voice

and m-technologies to improve HR administration, transactions and process performance. “Speed” and “agility” have become key words for HRM.

E-HR survey in 91 international organizations: 76% have redesigned or introduced new HR technologies/systems in the past year and 90% of the remaining expect to do so within the coming year.

While very cutting edge, total e-HR is expensive and time consuming. Many companies focus on recruitment, web training and web approaches to reporting, appraisal, and reporting. 1998: 17% of Fortune Global 500 companies recruited on

the net; 1999, 45%$1.7 billion on recruitment in 2003Estimated 2.5 million resumes on the internet