MBA 103 - Human Resource

Management

What is HRM?

Human – people

Resource – assets/costs for organizations

Management – co-ordination and control to achieve set goals.

But humans, unlike other resources in the context of work and management, cause problem.

According to Edwin B. Flippo

“Personnel or human resource management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance of human resource to the end so that individual, organizational and societal objectives are accomplished.”

According to National Institute of Personnel Management of India

“ Personnel management is that part of management that concern with people at work and with their relationship within the organization”

“HRM/ Personnel management describes the process of planning & directing, development & utilization of human resource in employment.” According to Dale Yoder

HRM is a broad concept PM & HRD are the part of HRM PM is a routine oriented administrated function;

HRM places on a continuous development of people at work.

PM is reactive & responds to the demands of an organization whenever they arise. HRM is proactive & not only concerned with present but anticipates future needs & act accordingly.

HRM is more proactive than Personnel Management.

PM emphasize on economic rewards & traditional job design but HRM focuses on satisfaction of higher needs for motivating people like challenging jobs, creativity etc…

HUMAN RESOURCE MANAGAMENT

Managing people at workProcess of acquiring, training,

appraising, and compensating employees and of the labor relations, health-n-safety, and fairness concerns.

IT INCLUDES:

Conducting job analysis Planning labor needs and recruiting Selecting candidates Orienting and training Managing wages and salaries Appraising performance Communicating- interviews, counseling, disciplining Building employee commitment

Nature of HRM Continuous process Flexible People oriented Development oriented Futuristic Pervasive Multi-disciplinary Action oriented It is a process (planning,

organizing, directing & controlling)

Integrating mechanism

Scope of HRM HR planning Personnel Job analysis & design Research & Development Orientation & Placement Training & development Industrial relations Safety & welfare Performance Appraisal & Job evaluation Motivation & communication

Societal objectives

Personal

Functional

Organizational

HRM Objectives

Specifically HRM objectives have 4 folds-

Personal Objective ( To assist employees in achieving their personal goals)

Functional Objective (To maintain deptt’s contribution at appropriately to organization needs)

Organizational Objectives ( To recognize the role of HRM in bringing about organizational effectiveness.)

Societal objectives (To be ethically & socially responsible)

HRM Objectives…

To help the organization attain its goals by providing well trained and well motivated employees

To utilize the skills and knowledge of employees efficiently and effectively

To established and maintain productive working relationship among all the members of the organization

To bring about maximum individual development of members of the organization by providing opportunities for their carrier development

To maintain high morale and good human relations within the organization

Importance/ Need of HRM

Attract and Retain talent (employees) Generate development opportunities Increase productivity Improve job satisfaction Develop competencies Train people for new and challenging roles Develop loyalty and commitment

Functions

Managerial functions

Operating functions

Functions…

Managerial

Planning Organizing Directing Controlling

Operative Functions1 Procurement : job analysis, HRP, Recruitment &

selection, placement and induction

2 HR Development: Performance and potential appraisal, training, management development, career planning and development

3 Compensation: job evaluation, wage and salaries administration, bonus, social security measures, fringe benefits etc..

4 Human Relation Maintenance function, Integration,

Motivating the employees, developing communication, leadership skills, redressing employee grievances, handling disciplinary cases, counseling the employees.

History of HRM

Industrial Revolution- Jobs fragmentation, more stress on work specialization

Scientific Management- More emphasis was laid on the increase in efficiency and right person for the right job. Employees were trained carefully by supervisors to ensure that they performed the task exactly as specified by prior scientific analysis.

History…

'Scientific management', created an inevitable tension between the rights and expectations of workers and management's need to gain ever greater quality and cost-effectiveness.

History…

Labor unionization- Workers started coming together. They started their Union activities for getting good benefits; good pay, perks and improved welfare conditions.

Humane Factor- The fact that apart from economic incentives, human beings need satisfaction of social and psychological needs were realized and stressed upon.

History…

Human relations- Work performance did not depend simply on pay and discipline. The Hawthorne experiments paved way for this thought.

Human relation movement led to wide scale of implementation of behavioral science techniques in Industry for the 1st time.

Human Resource Approach- it says that happy workers are productive workers.

Period Development status

outlook Emphasis Status Roles

1920- 30 Beginning Pragmatism of capitalist

Statutory, welfare

clerical Welfare Administrator

1940-60 Struggling for recognition

Technical legalistic

Introduction of

techniques

Administrative AdvisorMediatorAppraiser

1970-80 Achieving sophistication

ProfessionalLegalisticImpersonal

Regulatoryconforming

Managerial Change AgentIntegratorTrainer

1990s Promising Philosophical Human Values

Executive CoachMentorProblem solverCounselor

Tabular Data on Growth Of HRM

Growth of HRM in India

Early roots of HRM in India started after 1920.

The Royal commission on labor in 1931 suggested the appointment of labor officers to protect worker's interest & act as a spokesperson of labor.

After Independence, the Factories Act 1948, made it obligatory for factories employing 500.

In legal compulsions, welfare officers busy with routine functions.

Meanwhile two professional bodies,- The Indian Institute of Personnel Management (IIPM) Calcutta & The National Institute of Labor Management (NILM) Mumbai have come into existence in 1950s.

In 1960s emphasis was on striking a harmonious balance between employee demands & organizational requirement.

In 1990s emphasis shifted to human values & productivity through people.

The American Society for Personnel Administration (ASPA) was re-named as the society for HRM(SHRM)

Organization of HR Department

1. Director HRM

Manager personnel Manager Administration Manager HRD Manager Industrial Relation

Manager personnel

HRP

Hiring

Grievance Handling

Compensation

Manager Administration

Canteen

Medical

Welfare

Transport

Legal

Manager HRD

1. Appraisals2. T & D

Human Resource Development

HRD is the process of increasing the knowledge, skills and capacities of all the people in a country

Concerned with human welfare Identification of employees potential Developing core competencies