hrm notres

8/12/2019 HRM notres

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Importance of HRM

An organization cannot build a good team of working professionals without good HumanResources. The key functions of the Human Resources Management (HRM) team includerecruiting people, training them, performance appraisals, motivating employees as well asworkplace communication, workplace safety, and much more.

The main purpose of human resource management is to accomplish the organizationalgoals. Therefore, the resources are mobilized to achieve such goals. Some importance andobjectives of human resource management are as follows:

Effective Utilization Of Resources Organizational Structure Development Of Human Resources Respect For Human Beings Goal Harmony

Employee Satisfaction Employee Discipline And Moral Organizational Productivity

Define job design

Job design (also referred to as work design or task design ) is the specification of contents,methods and relationship of jobs in order to satisfy technological and organizationalrequirements as well as the social and personal requirements of the job holder .[1] Its principlesare geared towards how the nature of a person's job affects their attitudes and behavior at work,particularly relating to characteristics such as skill variety and autonomy . [2] The aim of a job

design is to improve job satisfaction , to improve through-put, to improve quality and to reduceemployee problems (e.g., grievances, absenteeism)

group and group dynamics

Group dynamics is a system of behaviors and psychological processes occurring withina social group (intragroup dynamics), or between social groups (intergroup dynamics). Thestudy of group dynamics can be useful in understanding decision-making behavior, tracking thespread of diseases in society, creating effective therapy techniques, and following theemergence and popularity of new ideas and technologies .[1] Group dynamics are at the core ofunderstanding racism, sexism, and other forms of social prejudice and discrimination. These

applications of the field are studied in psychology ,sociology , anthropology , politicalscience , epidemiology , education, social work , business, and communication studies

Strategy

Is a high level plan to achieve one or more goals under conditions of uncertainty. Strategy isimportant because the resources available to achieve these goals are usually limited.
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Strategy generally involves setting goals, determining actions to achieve the goals, andmobilizing resources to execute the actions. A strategy describes how the ends (goals) will beachieved by the means (resources).

Define industrial relations

The term Industrial Relations comprises of two terms: Industry and Relations. Industryrefers to any productive activity in which an individual (or a group of individuals) is (are)engaged. By relations we mean the relationships that exist wit hin the industry between theemployer and his workmen. The term industrial relations explains the relationship betweenemployees and management which stem directly or indirectly from union-employer relationship.

Industrial relations are the relationships between employees and employers within theorganizational settings. The field of industrial relations looks at the relationship betweenmanagement and workers, particularly groups of workers represented by a union. Industrialrelations are basically the interactions between employers, employees and the government, andthe institutions and associations through which such interactions are mediated.

Difference between human resource management and personnel management

Difference between HUMAN RESOURCE DEVELOPMENT

&

Traditional PERSONNEL MANAGEMENT


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Definition

Personnel Management - Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fairterms and conditions of employment, while at the same time, efficiently managing personnelactivities for individual departments etc. It is assumed that the outcomes from providing justiceand achieving efficiency in the management of personnel activities will result ultimately inachieving organizational success.

Human Resource Development - Human resource management is concerned with thedevelopment and implementation of people strategies, which are integrated with corporatestrategies, and ensures that the culture, values and structure of the organization, and thequality, motivation and commitment of its members contribute fully to the achievement of itsgoals.

HRM is concerned with carrying out the SAME functional activities traditionally performed bythe personnel function, such as HR planning, job analysis, recruitment and selection, employeerelations, performance management, employee appraisals, compensation management, trainingand development etc. But, the HRM approach performs these functions in a qualitativelyDISTICNT way , when compared with Personnel Management.

Main Differences between Personnel Management and HRM

27 Points of Difference between Personnel Management & HRD

S. No. Dimension

PersonnelManagement

Human ResourceDevelopment

Beliefs & Assumptions

1.Contract

Careful delineationof written contracts

Aim to go beyondcontracts

2. Rules Importance ofdevising clearrules/mutuality

Can -do outlook;impatience with rule

3. Guide to management Procedures Business need


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Action

4. Behaviour Referent Norms/custom &practice

Values/Mission

5. Managerial Task v is-- v is Labour

Monitoring Nurturing

6. Nature of Relations Pluralist Unitarist

7. Conflict Institutionalized De-emphasized

STRATEGIC ASPECTS

8.Key Relations

LabourManagement

Customer

9. Initiatives Piecemeal Integrated

10. Corporate Plan Marginal to Central to

11. Speed of Decision Slow Fast

LINE MANAGEMENT

12.Management Role

Transactional Transformationalleadership

13. Key Managers Personnel/IRSpecialists

General/business/linemanagers

14. Communication Indirect Direct

15. Standardisation High (e.g. parity anissue)

Low (e.g. parity not seenas relevant)

16. Prized management

skills

Negotiation Facilitation

KEY LEVERS

17. Selection Separate, marginaltask

Integrated, key task

18. Pay Job Evaluation (fixed Performance related


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grades)

19. Conditions Separately negotiated Harmonization

20. Labour Management Collective bargainingcontracts

Towards individualcontracts

21. Thrust of relations Regularized throughfacilities & training

Marginalized (withexception of somebargaining for changemodels)

22. Job categories &grades

Many Few

23. Communication Restricted flow Increased flow

24. Job Design Division of Labour Teamwork

25. Conflict Handling Reach temporarytruces

Manage climate &culture

26. Training &Development

Controlled access tocourses

Learning companies

27. Foci of attention ofinterventions

Personnel procedures Wide ranging cultural,structural & personnelstrategies

1. Personnel management is a traditional approach of managing people in the organization.

Human resource management is a modern approach of managing people and their strengths in

the organization.

2. Personnel management focuses on personnel administration, employee welfare and labor

relation. Human resource management focuses on acquisition, development, motivation and

maintenance of human resources in the organization.

3. Personnel management assumes people as a input for achieving desired output. Human

resource management assumes people as an important and valuable resource for achieving

desired output.


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4. Under personnel management, personnel function is undertaken for employee's satisfaction.

Under human resource management, administrative function is undertaken for goal

achievement.

5. Under personnel management, job design is done on the basis of division of labor. Under

human resource management, job design function is done on the basis of group work/team

work.

6. Under personnel management, employees are provided with less training and development

opportunities. Under human resource management, employees are provided with more training

and development opportunities.

7. In personnel management, decisions are made by the top management as per the rules and

regulation of the organization. In human resource management, decisions are made collectively

after considering employee's participation, authority, decentralization, competitive environment

etc.

8. Personnel management focuses on increased production and satisfied employees. Human

resource management focuses on effectiveness, culture, productivity and employee's

participation.

9. Personnel management is concerned with personnel manager. Human resource

management is concerned with all level of managers from top to bottom.

10. Personnel management is a routine function. Human resource management is a strategic

function.

HRM is proactive in nature. It is not only concerned with the present organizationalconditions but foresees future necessities and then acts appropriately.

HRM as a resource centered activity focuses more on the managerial aspects in termsof delegating the responsibility of HRM to line authority and management development.

HRM emphasizes open minded contracts, which can be modified depending upon thedemand of the business. Management assumes the responsibility to motivate theemployees and constantly inspires performance based upon team spirit.


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HRM is based on the principle that better performance itself is a cause of job satisfactionand morale.

PM is mainly reactive in nature. It satisfies itself by ensuring peaceful measuremanagement relations in the present.

PM which is employee centred , aims at hiring, training, compensating, and maintaining theexisting force of the organization

PM emphasizes the strict observance of defined rules, procedures, and contracts thatgovern the relationships between the workforce and the management; for examplecollective bargaining and employment contracts.

PM considers job satisfaction and morale as a source of better performance. It works onthe foundation that a contended worker is a productive worker.

Scope of HRM:


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Human resources planning :- Human resource planning or Human Resource Planningrefers to a process by which the company to identify the number of jobs vacant, whetherthe company has excess staff or shortage of staff and to deal with this excess orshortage.

Job analysis design :- Another important area of Human Resource Management is jobanalysis. Job analysis gives a detailed explanation about each and every job in thecompany.

Recruitment and selection :- Based on information collected from job analysis thecompany prepares advertisements and publishes them in the newspapers. Thisis recruitment. A number of applications are received after the advertisement ispublished, interviews are conducted and the right employee is selected thus recruitmentand selection are yet another important area of Human Resource Management.

Orientation and induction :- Once the employees have been selectedan induction or orientation program is conducted. This is another important area ofHuman Resource Management. The employees are informed about the background ofthe company, explain about the organizational culture and values and work ethics andintroduce to the other employees.

Training and development :- Every employee goes under training program which helpshim to put up a better performance on the job. Training program is also conducted forexisting staff that have a lot of experience. This is called refresher training. Training anddevelopment is one area where the company spends a huge amount.
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Performance appraisal :- Once the employee has put in around 1 year ofservice, performance appraisal is conducted that is the Human Resource departmentchecks the performance of the employee. Based on these appraisal future promotions,incentives, increments in salary are decided.

Compensation planning and remuneration :- There are various rulesregarding compensation and other benefits. It is the job of the Human Resourcedepartment to look into remuneration and compensation planning.

Motivation, welfare, health and safety :- Motivation becomes important to sustain thenumber of employees in the company. It is the job of the Human Resource departmentto look into the different methods of motivation. Apart from this certain health andsafety r egulations have to be followed for the benefits of the employees. This is alsohandled by the HR department.

Industrial relations :- Another important area of Human Resource Management ismaintaining co-ordinal relations with the union members. This will help the organizationto prevent strikes lockouts and ensure smooth working in the company

Steps in developing HRM strategy

Step 1: Get the 'big picture'

Understand your business strategy.

Highlight the key driving forces of your business. What are they? e.g. technology,distribution, competition, the markets.

What are the implications of the driving forces for the people side of your business? What is the fundamental people contribution to bottom line business performance?

Step 2: Develop a Mission Statement or Statement of Intent

That relates to the people side of the business.

Do not be put off by negative reactions to the words or references to idealistic statements - it isthe actual process of thinking through the issues in a formal and explicit manner that is

important.

What do your people contribute?

Step 3: Conduct a SWOT analysis of the organization

Focus on the internal strengths and weaknesses of the people side of the business.

Consider the current skill and capability issues.
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Vigorously research the external business and market environment. High light the opportunitiesand threats relating to the people side of the business.

What impact will/ might they have on business performance?

Consider skill shortages? The impact of new technology on staffing levels?

From this analysis you then need to review the capability of your personnel department.

Complete a SWOT analysis of the department - consider in detail the department's currentareas of operation, the service levels and competences of your personnel staff.

Step 4: Conduct a detailed hum an resources analysis

Concentrate on the organization's COPS (culture, organization, people, HR systems)

Consider: Where you are now? Where do you want to be? What gaps exists between the reality of where you are now and where you want to be?

Exhaust your analysis of the four dimensions.

Step 5: Determine critical people issues

Go back to the business strategy and examine it against your SWOT and COPS Analysis

Identify the critical people issues namely those people issues that you must address.Those which have a key impact on the delivery of your business strategy.

Prioritize the critical people issues. What will happen if you fail to address them?Remember you are trying to identify where you should be focusing your efforts and resources.

Step 6: Develop consequences and solutions

For each critical issue highlight the options for managerial action generate, elaborate and create- don't go for the obvious. This is an important step as frequently people jump for the knownrather than challenge existing assumptions about the way things have been done in the past.Think about the consequences of taking various courses of action.

Consider the mix of HR systems needed to address the issues. Do you need to improvecommunications, training or pay?

What are the implications for the business and the personnel function?


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Once you have worked through the process it should then be possible to translate the actionplan into broad objectives. These will need to be broken down into the specialist HR Systemsareas of:

employee training and development management development organization development

performance appraisal employee reward employee selection and recruitment manpower planning communication

Develop your action plan around the critical issues. Set targets and dates for the

accomplishment of the key objectives.

Step 7: Implementation and evaluation of the action plans

The ultimate purpose of developing a human resource strategy is to ensure that the objectivesset are mutually supportive so that the reward and payment systems are integrated withemployee training and career development plans.

There is very little value or benefit in training people only to then frustrate them through a failureto provide ample career and development opportunities.
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