Introduction

Organizations require a number of

things to be effective:
1. Physical resources manufacturing facility,

equipment to produce a product or service. 2. Financial resources equity, debt 3. Marketing capability - connect products & services with customers 4. Human resources experience, skill, knowledge, judgment, etc.

The Human Equation: Building Profits by putting People First Jeffrey Pfeffer
Seven human resource practices that, taken together,

lead to organizational success:

1.
2. 3.

4.
5. 6. 7.

Employment security Selective hiring Self managed teams & decentralization Higher compensation contingent on organizational performance Extensive training Reduced distinctions Extensive sharing of information

Taj Mahal Palace Hotel, Mumbai 26/11

Definition
Human resource management (HRM) involves all

management decisions and practices that directly affect or influence the people, or human resources, who work for the organization. Human resource management is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and employees to achieve their objective.

Definition
HRM is concerned with the people dimension in

management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of organization government, business, education, health, recreation, or social action.

Essentials which must find their place in any definition:

Organizations are not mere bricks, mortar, machineries or

inventories. They are people. It is people who staff and manage organizations. HRM involves the application of management functions and principles. Decisions relating to employees must be integrated. Decisions made must influence the effectiveness of an organization. HRM functions are not confined to business establishments only. They are applicable to non-business organizations ,too, such as education, recreation etc.

Objectives of HRM

 To help the organization reach its goals

To employ the skills & abilities of the workforce efficiently To provide the organization with well trained & well

motivated employees To increase to the fullest the employees job satisfaction & self actualisation To develop & maintain a quality of work life To communicate HR policies to all employees To be ethically and socially responsive to the needs of society

Human Resource Management Functions

 Planning for organizations, Jobs & people

o The Strategic management of human resources o Human Resource Planning

Acquiring Human Resources

Building Individual & Organizational Performance Rewarding employees Maintaining Human Resources Multinational Human Resource Management

Current & Future Challenges to Human Resource Management

 Globalization
Changed employee expectations Outsourcing HR activities

Changing workforce dynamics

Balancing work life Managing HR activities ethically Organizational restructuring Managing diversity

Integrating HR into Strategic Planning

Strategic Planning process occur in the organization
HR managers play an important role in that process

Strategic Planning Process

Is the process that involves describing the

organizations destination, assessing barriers that stand in the way of that destination, and selecting approaches for moving forward.

Steps to create a successful Strategic Plan

Conduct of an environmental analysis
Creation of an organizational mission Creation of an organizational vision

Setting goals
Creation of strategies

Environmental Analysis
1. 2.

An examination of the: External Environment (Opportunities & Threats) Internal Environment (Strengths & Weaknesses) Opportunities characteristics of the environment that can help the organization succeed. Eg, untapped labor pools Threats - characteristics of the environment that can prevent the organization from being successful. Eg, economic recession Strengths internal characteristics that the organization can us to its advantage.Eg, Staffs key skills Weaknesses internal characteristics that are likely to hinder the success of the organization. Eg, obsolete organizational structure

External factors
Economic
Political / legal Social

Technological
Competitors Customers Suppliers

Internal factors
Organizational Structure
Organizational Culture Politics

Processes
Size

Gap Analysis

1. 2. 3. 4.

Analyses external environment in relation to the internal environment. Opportunity + Strength = Leverage Opportunity + Weakness = Constraint Threat + Strength = Vulnerability Threat + Strength = Problem

Mission

Statement of what the organization is all about. Summarizes the organizations most important reason for its existence
Why does the organization exist? What is the scope of the organizations activities? Who are the customers served? What are the products & services offered?

1. 2. 3. 4.

Vision

1. 2. 3. 4. 5. 6. 7. 8.

An organizations vision is a statement of future aspirations. Characteristics of a good vision statement Brief Verifiable Bound by a timeline Current Focused Understandable Inspiring A stretch

Strategies
Strategies are descriptions of game plans or how-to

procedures to reach the stated objectives

Jobs & Careers in HRM

Corporate HRM
Training & Development Recruitment Consulting

HR Consulting
Career Counseling Academics