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Understanding the

Nature and Scope


of
Human Resource Management

Human Resource Management, 5E

Learning Objectives
Understand the Nature, Scope and Objectives

of Human Resource Management.


Design an Organisation Chart for Human
Resource Management Function in a Typical
Industrial Establishment.
Understand the Personnel Principles and
Policies.
Trace the Evolution of Human Resource
Management.
Understand Human Capital Management
Identify Jobs and Careers in HRM.
Human Resource Management, 5E

Meaning and Definition


Peoples dimension

Organisational effectiveness
Scope of HRM
Enters

Works
Exits
Human Resource Management, 5E

Nature of
HRM
Prospects
of HRM

Employee
Hiring

HRM
Employee &
Executive
Remuneration

Industrial
Relations

Employee
Maintenance

Employee
Motivation

Human Resource Management, 5E

Difference between PM
and HRM
Personnel Management
Careful delineation of written
contracts
Importance of devising clear
rules
Procedures
Norms/customs and practices
Monitoring
Labour management
Piecemeal
Slow
Transactional
Indirect
Negotiation
Separate, marginal task
Job evaluation

Human Resource Management, 5E

HRM
Aim to go beyond contract
Can do outlook, impatience
with rule
Business need
Values/mission
Nurturing
Customer
Integrated
Fast
Transformational leadership
direct
facilitation
Integrated key tasks
Performance related
5

Difference between PM and


HRM
Personnel Management
Separately negotiated
Collective bargaining
contracts
Many
Division of labour
Reach temporary truce
Controlled access to courses
personnel procedures
Labour is treated as a tool
which is expendable and
replaceable
Interests of the organisation
are uppermost
Precedes HRM
external

Human Resource Management, 5E

HRM
harmonisation
Individual contract
Few
Team work
Manage climate and culture
Learning companies
wide ranging culture,
structural and personnel
strategies.
People are treated as assets to
be used for the benefit of an
organisation, its employees
and the society as a whole.
Mutuality of interests
Latest in the evaluation of the
subject
internal
6

Semantics HRM vs. PM


Mutuality

Labour management
Legal compliance
HRD and IRM What are they?
Segments of HRM

Human Resource Management, 5E

Owner/Manager

ManagerAdministration

Manager-Personnel

Manager-HRD

Appraisal

PR

HRP

Canteen

Hiring

Medical

Training & Development

Welfare

Grievances Handling

Human Resource Management, 5E

Manager-IR

Transport

Legal

Compensation

Personal
Objectives

Functional
Objectives
Organisational
Objectives
Societal
Objectives

Human Resource Management, 5E

Owner/Manager

Production Manager

Sales Manager

Office-Manager

Accountant

Personnel Assistant

Human Resource Management, 5E

10

Chairman and
Managing Director

Director
Production

Director
Finance

Director
Personnel/HRM

Human Resource Management, 5E

Director
Marketing

Director
R&D

11

Paradoxes in HRM
Only hype but low on content
Has grown from IR to PM to HRM. But HRM is

brilliant ambiguity.
HR Manager is change agent and
transformationalist.
Finance overtakes personnel function.

Human Resource Management, 5E

12

Personnel Policies at ABB


India
Role clarity
Empowerment
Take responsibility
Competence development
Clearly defined objectives for individual and

the work team

Human Resource Management, 5E

13

Personnel Policies at ABB


India
The local unions as natural co-operation partners
Planning discussions held at least once a year
Internal mobility and employee development
Ethics, equal opportunities and an open and

honest exchange of thoughts and ideas

A strategic issue
Human Resource Management, 5E

14

1920s 30s

Pragmatism of
capitalists

1940s 50s
Technical, legalistic

1970s 80s
Professional, legalistic, impersonal

1990s
Philosophical

Human Resource Management, 5E

15

Jobs & Careers in HRM


HR Specialist
HR Manager
HR Executive
Why Study HRM?

Human Resource Management, 5E

16

Reality Check
It is good to read that people management

has matured from IR to PM to HRM to HCM.


But has the change been only cosmic or real?
Have a debate.

Human Resource Management, 5E

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Reality Check
Should this happen?
Would this happen? Could this happen? How

could all HR activities be outsourced? Can a


firm function with a HR department organised
on perfunctionary basis? Answer these
questions.

Human Resource Management, 5E

18

Reality Check
Looking at the four models described in this

section, what similarities and dissimilarities do


you notice among them? What assumptions to
they make? What lessons do they carry to
practising HR managers and students of HRM?

Human Resource Management, 5E

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