Introduction to HRM

      

Content 1. Management- definition Management2. Resources 3. HRM Definition and functions of HRM 4. Importance of HRM 5. Role of the Human Resource Management Department 6. Competitive Advantage through Human Resources

DEFINITION


Management is the process of working with and through others to achieve organizational objectives through effective and efficient utilization of limited resources in a changing environment. environment.

Organizational objectives


the purpose that an organization strives to achieve

Scarce resources limited, scarce in nature and not expandable

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Monetary

Physical

Human

Usable data

EfficiencyEfficiency- - the ability to minimize the use of resources in achieving organizational objectives (doing things right)

EffectivenessEffectiveness- The ability to determine appropriate objectives (doing right thing) Eg. Not to produce large comfortable cars when the demand is for fuel efficient small cars ( success of Maruti cars)

Why human being considered as a Resource? Knowledge, skills, experiences and attitudes of humans

Why is human being considered as the most important resource?

  

It is an only living resource. It can feel, think and react. It can take decisions according to the changes.

  

It can be developed. It can be motivated. It can organize all other resources.

HRM Definition


HRM is the efficient and effective utilization of HR to achieve goals of an organization

Functions of HRM
        

Job design Job analysis Human Resource planning Selection Orientation Performance appraisal Training and Development Discipline Health and safety

Why HRM is important to all managers? managers?

You want to  Make direct contact with employee & employer

select the most suitable person

Reduce employee cost

Find people doing their best (motivation, commitment, engagement)

Improve standards in working environment

Safe guard from court activities

Role of HR department


Maintain most important assets

Protect employee rights

Establish, develop, maintain and communicate office policies

To represent, help, advise and consult with employee

HRM concerns


Recruitment, selection, development, compensation, retention, evaluation and promotion of personnel within an organization

Objectives of HRM


To produce the right people at the right time to the right positions/places

To retain the most desirable employees within the organization

To obtain the employee commitment

To motivate employee

To control employee cost

COMPETITIVE ADVANTAGE

Refers to the ability of an organization to exploit profitable opportunities which leads to maximize its return on investment Two major principals are customer value and uniqueness

contd


Customer value: customer believe that they receive value from transaction

Uniqueness : your competitor can not easily copy your product or service

Competitive advantage through HRM



Increased productivity

Empowered workforce

Create motivated, committed & engaged workforce

 

Strategy The direction and scope of an organisation over the longlong-term to meet competition in the market and to get an advantage through right use of resources

 

Strategic HRM The formulation and implementation of human resource policies and practices for the improvement of competencies, skills and behaviors of the workforce to gain competitive advantages.