hrm unit 1
TRANSCRIPT
HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT
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Human Resource ManagementHuman Resource Management
“HRM is the function performed in organizations that facilitates the most
effective use of people to achieve organizational and individual goals.”
Human Resource ManagementHuman Resource Management
“Human resource or manpower management effectively describes the process of planning and directing the application, development and utilisation of human resources in employment” - Dale Yoder
“The personnel function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organisation for the purpose of contributing towards the accomplishment of that organisation’s major goals or objectives” – Flippo
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Functions of HRMFunctions of HRM
HRM FUNCTIONSHRM FUNCTIONS
Operative Operative FunctionsFunctions
Managerial Managerial FunctionsFunctions
PlanningPlanning
CompensationCompensation
Directing Directing ControllingControlling
Procurement Procurement MaintenanceMaintenance
DevelopmentDevelopment IntegrationIntegration
OrganisingOrganising
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A. Procurement
1. Job Analysis
2. Human Resource Planning
3. Recruitment
4. Selection
5. Placement
6. Induction and Orientation
7. Internal Mobility
B. Development
1. Training
2. Executive development
3. Career planning & development
4. Succession Planning
5. Human Resource Development
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C. Motivation & Compensation
1. Job Design
2. Work Scheduling
3. Motivation
4. Job Evaluation
5. Performance appraisal
6. Compensation administration
7. Incentives & benefits
D. Maintenance
1. Health
2. Safety
3. Employee welfare
4. Social security measures
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E. Integration Function
1. Grievance redressal
2. Discipline
3. Teams and teamwork
4. Collective bargaining
5. Employee participation & empowerment
6. Trade unions
7. Employers Association
8. Industrial relations
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Importance of HRMImportance of HRM1. It helps the organisation to identify correctly its manpower needs
2. It ensures that the organisation does not suffer from either surplus or shortage of manpower
3. It facilitates the selection of the right man for the right job
4. It focuses attention on the development of the skill of every individual in order to make him up-to-date
5. It recognises the need for the appraisal of the employees performance
6. It considers the need to provide incentives to the employees performing well
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Importance of HRMImportance of HRM7. It gives utmost importance to securing a favourable employee attitude
8. It emphasizes the need for good human relations in every workplace
9. It provides scope for collective bargaining
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Objectives of HRMObjectives of HRM1. To make an optimum utilisation of the human resource of the organisation
2. To ensure that the organisation has the required number staff
3. To establish and maintain a sound organisation structure
4. To reconcile personal and organisational goals
5. To provide scope for the development of personnel
6. To ensure that the employees have higher job satisfaction
7. To provide scope for participation in decision-making
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Difference b/w Personnel Mgt & HRMDifference b/w Personnel Mgt & HRM
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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Difference b/w Personnel Mgt & HRMDifference b/w Personnel Mgt & HRM
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 labour. 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.
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Difference b/w Personnel Mgt & HRMDifference b/w Personnel Mgt & HRM7. 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.
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Nature / Scope of HRMNature / Scope of HRM
Control
HR Audit
HR Accounting
HR Information System
Maintenance
Remuneration
Motivation
Health & Safety
Social Security
Industrial Relations
Performance Appraisal
Acquisition
HR Planning
Recruitment, Selection
Placement.
Development
Training, Career Development, Organisation Development, Internal Mobility.
HumanHumanResourceResource
ManagementManagement
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Environment of HRMEnvironment of HRM
Environment comprises all those forces which have their bearing on the functioning of various activities including human resource activities. Environment scanning helps HR manager become proactive to the environment which is characterised by change and intense competition.
Two types of environments:
1. Internal environment
2. External environment
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1. Internal Environment1. Internal EnvironmentThese are the forces internal to an organisation. Internal forces have profound influence on HR functions. The internal environment of HRM consists
a. Unions
b. Organisational Culture & Conflict
c. Professional Bodies
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1. External Environment1. External EnvironmentExternal environment includes forces like economic, political, technological, demographic etc. these exert considerable influence on HRM. The external environment of HRM consists
a. Economic
b. Political
c. Technological
d. Demographic
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Strategic HRMStrategic HRM
Strategic human resource management is to ensure that human resource management is fully integrated into strategic planning, that HRM policies cohere both across policy areas and across hierarchies and that HRM policies are accepted and used by line managers as part of their every day work.
According to Donald F. Harvey, “Strategic management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.
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People Management – Indian ScenarioPeople Management – Indian Scenario
In the 50’s there was a strong belief that employees were recruited not to question ‘why’ but only ‘to do and die’. In the 60s, terms like manpower, staff and personnel came to be used and instead of controlling the employees, it became more and more acceptable to manage personnel as it was felt that the productivity of the workers could be improved, if they were organized for the work. While hierarchy, status, authority, responsibility and accountability are structural concepts, in the Indian context, emotions, feelings, empathetic perceptions, impressions influenced people more than anything else.
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CASE STUDIES:CASE STUDIES:PERFORMANCE APPRAISAL POLICIESPERFORMANCE APPRAISAL POLICIES
Berkely Investments is a reputed finance company having 15 branches in different part of the country. In the home office there are more than 200 employees. This company has a performance rating under which the employees are rated at six months intervals by a committee of two executives. Graphic scales have been used as means of appraisal. The qualities considered are responsibility, initiative, and interest in work, leadership potential, co-operative attitude and community activity. After the performance is evaluated, the ratings are discussed with the concerned employees by their immediate boss who counsels them. The ratings aroused to influence promotions and salary adjustments the employees and also as a criterion for assigning further rating for them.
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PERFORMANCE APPRAISAL POLICIESPERFORMANCE APPRAISAL POLICIES
Recently three employees of the company called on the company’s president to express their dissatisfaction with the ratings they had received. Their scores and composite ratings had been discussed with them. Because their ratings were comparatively low, they had been denied annual increments in salary. Approximately, two thirds of all the employees received such increments. The aggrieved employees argued that their ratings did not accurately represent their qualifications or performance. They insisted that “community activity” was not actually a part of their job and that what they do off the job is none of the company’s business. They expressed their opinion that employees should organize union and insist that salary increase be automatic.
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PERFORMANCE APPRAISAL POLICIESPERFORMANCE APPRAISAL POLICIESThe threat of a union caused concern to the officers of the company. This particular experience convinced the top officers that ratings may represent a serious hazard to satisfactory relationship with employees. Even the chief executive finds that performance appraisal is a dangerous source of friction and its hazards outweigh its values; so it should be discontinued altogether.
Questions:
1. How far do you agree with the management that performance appraisal should be discontinued?
2. If you were the HR manager, how would you tackle the situation?
3. What modifications would you suggest in the performance appraisal system of the company