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Nature of HRM
1. 2. 3. 4. 5. 6. 7. 8. Inherent part of management Pervasive function People centered Personnel activities Continuous process Based on human relations approach Basic to all functional areas Multidisciplinary approach

Scope of HRM
1. Manpower planning 2. Employment function: recruitment, selection & placement 3. Training & development 4. Performance appraisal 5. Compensation 6. Social security, welfare & industrial relations 7. HR audit & accounting

Objectives of HRM
1. 2. 3. 4. 5. To procure right type of personnel To provide right type of training Effective utilisation of human resources To ensure development of human resource To identify & satisfy the need of individuals (monetary & non monetary rewards) 6. To ensure respect for human beings 7. To reconcile individual & organisational objectives 8. To help employees maintain high morale What are the requirements for attaining these objectives?

Functions of HRM
Planning Organising Directing Controlling

Employment Training & development Remuneration Working conditions Motivation Personnel records Industrial relations Separation

Advice to top management Advice to departmental heads

Importance of HRM for The Organisation 1. Attracting & retaining best people 2. Ensure person-job fit 3. Continuous enhancement of skills through T&D 4. Employee commitment & loyalty through welfare activities 5. Sound industrial relations 6. Ready acceptance of change

Importance for Society: 1. Balance between jobs seekers & jobs available 2. Socio-psychological satisfaction to people 3. Eliminates wasteful use of human resources 4. Status to employees in the society
Importance for Nation: Vital role in the growth, development & self sufficiency of a nation

The HR Manager: Roles

1. 2. 3. 4. 5. 6. 7. 8. 9. Policy formulation Advisory role Linking pin Representative Decision making Mediator Leadership Welfare Research

Qualities of a HR Manager
1. Physical: health, vigour 2. Mental: judgement 3. Moral: dignity 4. Educational: peculiar to the function 5. Technical: peculiar to the function 6. Experience: arising from work

HRM As A Profession
A systematic body of knowledge Education & training Code of ethics Yes Yes Yes



Not Compulsory No

A prescribing association
Responsibility towards society



Systems Approach to HRM


Inputs Human & Non Human Resources

Processes Production Finance Marketing R&D

Output To Various Stakeholders


HRM Policies
Definition: A Policy is multiple use plan, which guides in decision making and achieving organisational objectives. Features of a Policy: 1. Expression of intentions of top management 2. Based on objectives & consistent with it 3. Long lasting 4. Realistic 5. Developed with participation of all

Types of HRM Policies

Internal, external, appealed Top & middle management policies Departmental Written & unwritten

General & specific


Benefits of Policies
1. 2. 3. 4. 5. 6. 7. 8. Decision making Prompt action Consistency of action Continuity & stability Better control Eliminates bias Employee welfare Confidence in employees

Limitations of Policies
Bring about rigidity Do not cover unforeseen problems

No substitute for human judgement

Process of Policy Formulation

1. 2. 3. 4. 5. 6. Fact finding Analysis of facts & information Discussion on proposed policies Putting the policy in writing Approval by top management & implementation Appraisal of policy

Guidelines in policy formulation Policies in various areas of HRM