HRM - Introduction

Management is getting things done by others Organizations are made up of and are run by people Business houses are not made or broken by market or capital, patent or equipment but by men Manager does not deal with men, money material but money and material through men

CONCEPTS
MANAGEMENT Accomplishment of organisational objectives by utilizing physical, & financial resources through the efforts of human resources. RESOURCES - factors of production results in conversion of raw materials into useful goods/services.

Evolution of concept of HR
1. Labour / Manpower denotes physical abilities & capacities of employees commodity-wages based on demand & supply 2. Personnel persons employed in service employees as a whole 3. HR- denotes resources of all the people who contribute their services to the attainment of organisational goals

 Human Resources
Acc to Leon C. Megission, HR is the total knowledge, skills, creative abilities, talents and aptitudes of an organisations workforce as well as the values, attitudes and beliefs of the individuals involved.

Human Resource Management

Defined as the art of procuring, developing and maintaining competent workforce to achieve goals of an organisation in an effective and efficient manner.

Characteristics of Human resource

HR is a product of their qualities, inheritance Heterogeneous. They have unique personality, needs, aspirations, values, cultures Dynamic They react to situations They control and utilize other resources Potential to develop and grow Have emotions They themselves determines what they want to deliver They can think

Definition
HRM is the part of management, primarily concerned with human resource. Method of developing potentials of employees so that they get maximum satisfaction out of their job and give their best efforts to the organization. HRM is the planning, organizing, directing and controlling (management) of the procurement, development, compensation, integration, maintenance and separation of human resource to the end that the organizational, individual and societal goals are achieved HRM is the process of developing, applying and evaluating policies, procedures, methods and programs relating to the individuals in an organization Process of planning, directing and controlling the application, development and utilization of human resources

Characteristics
Comprehensive and people oriented Strategic function Individual oriented and development oriented Pervasive and ongoing Implied authority along with line authority Coordinative function Innovative function Science as well as art Challenging role Human objective Treats humans as capital Young discipline and interdisciplinary

Assumptions
HRM policies stands across the cultures People are capital capable of development Unitary philosophy of the objective Moving to strategic dimension contributor to business policies

Aims and Objectives

Organizational effectiveness Human capital development Knowledge management Employee relations and effective conflict resolution Meeting diverse needs Procurement, development, utilization of human resource To build effective working relationships To align and achieve individual and organizational goals Long term creation of high return on investment High morale of employees To create conducive environment

Scope
Training & development Personnel and organizational development HR planning, selection and staffing Personnel research Compensation and benefits Assistance and motivation Conflict management Union management relations Separation handling

functions

managerial

Operative

Planning

Procurement

Development

Integration

Compensation

Maintenance

Organizing

Job analysis

Performance Appraisal

Motivation

Job evaluation

health

Directing

HR Planning

Training

Job Satisfaction

Wage and salary administration

safety

controlling

Selection

Executive Developement

Grievance Redressal

Bonus and incentives

Social Security

Placement

Career Planning

Collective Bargaining

Payroll

Welfare Schemes

Induction

Conflict Management

HR Research

Transfer

Participation of Employees

HR Records

Separation

Discipline

HR Audit

History
Industrial revolution Trade unionism Scientific management Industrial psychology HR movement Behavioral Sciences HR specialist and Employee welfare

Role of HR Manager
Counselor Controller Change agent and leader Liaison agent Welfare agent Intermediary Motivator Intellectual and educator Humanist

Principles
Individual development Scientific selection High morale and motivation Fair reward Dignity of labor Communication Social and national welfare Humanitarian treatment Cooperation and coordination

The Harvard Model of Human Resource Management

The HR Functions

Human Resource Development

if you wish to plan for a year, sow seeds If you wish to plan for ten years, plant trees

If you wish to plan for a lifetime, develop men

Few definitions
Organized learning with an objective of producing possibility of performance change Approach to systematic expansion of peoples work related abilities focused on attainment of both personal and companys goals Process of developing and unleashing human expertise through training and development for the purpose of improving performance and to enhance national, economic, cultural and social growth HRD is process by which the employees are helped to
Acquire new and sharpen existing capabilities to perform their present and future jobs effectively and efficiently Develop their capabilities as individual so that they are able to discover their own hidden potential and make the best use of those potentials Create organizational culture where relationships, team work and collaboration are strong and contribute to organizational wealth, dynamism and pride

HRD
Emphasizes on discovering and nurturing capabilities and talents leading to purposeful and systematic development of the whole person Is a development oriented planned effort in personnel area, basically concerned with the improvement of existing and development of new skills, knowledge, capabilities, and effectiveness as whole for the achievement of personal and organizational goals.

Nature/Feature/Characteristics
Learning and transformational process Systematic and planned Beneficial to both Different from organizational development Dynamic Holistic approach Adding value for performance change Interdisciplinary Subset of HRM Science as well as art Improve quality of work life and leads to greater satisfaction

Objectives/Goal
Increase productivity, quality and overall effectiveness Increase organizational effectiveness Promotes planned individual growth Increase adaptability and employability Boosts morale and satisfaction Discovery and full utilization of human resource and talents, skills and capabilities To equip employees with new skills and make them more dynamic To enhance human resource into organizational and national asset Overall economic growth

Importance
Organizational success and economic growth Full utilization of human potential Coping up with change Higher quality of work life High productivity, quality, relationship, effectiveness Competitive edge

HRM Vs HRD
Point
Dependability Orientation Aim Incentives used Responsibility Moraleproductivity relationship Scope

HRM
Independent function Reactive and service oriented Improving efficiency of people and administration

HRD
Integrated system Proactive and development oriented Development of total organization and culture

Salary, economic rewards, Job challenges, creativity, job simplification learning for motivation HR manager All managers

Consider improved Consider improved satisfaction & morale as performance as the cause cause of high performance of improved satisfaction and morale narrow large

Assumption for HRD

HR is most valuable resource capable of development
Intellectual capital Social capital Emotional capital

Potential can be increased to an unlimited extent unlike other resources Healthy climate of openness, enthusiasm, trust, team work, collaboration is required to develop human beings HRD can be planned and monitored Employees feel committed to their work with the feeling of belongingness Employee commitment is increased with opportunity to discover and use ones abilities at work

Mechanism/Tools/Techniques/System of HRD
1. 2. 3. 4. 5. Performance Appraisal Potential appraisal Career Planning Trainings Organizational development 6. Reward
1. Intrinsic 2. Extrinsic

8. Quality of work life 9. HRIS 10. Role analysis

Defining KPIs & KRAs Objectives & functions Other role partners

1. External equity 2. Internal equity 3. Individual equity

7. Welfare

11. Learning organization 12. Counseling, coaching and mentoring 13. HR audit and HR accounting 14. Succession Planning 15. Focusing quality and productivity