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Unit I

Concept of HRM:
. Karen Legge, give 3-elements of HRM:
HR policies shoul !e integrate "ith the strategic !usiness planning an use to
reinforce culture.
HRs are valua!lean a source of competitive avantage.
HRs can !e tappe most effectivel# !# mutuall# consistent policies "hich promote
commitment an foster emplo#ees$ "illingness to act fle%i!l# in the interests of the
aaptive organi&ation$s pursuit of e%cellence.
'lippo:
(lanning, )rgani&ing, *irecting, an Controlling of the Procurement, Development,
Compensation, Integration, and Separation of Human Resources to the en that
Iniviual, )rgani&ational, an +ocial )!,ectives are -ccomplishe
.ature:
Comprehensive Function: -ll /#pes0Levels
People-oriented: 1oning Iniviuals 2 3roups
Action-oriented: -ction0+olution than Recor Keeping
Individual-oriented: +atisfaction-3ro"th to each
Development-oriented: *evelope (otential Reaps Ma%-+atisfaction 2 1est for
)rgani&ation
Pervasive Function: Inherent at all Levels
Continuous Function: )n-going, .ever-ening 4%ercise than one-shot. 4ver--lert n
-"are of Human relations
Future-oriented: Caters Competent n Motivate
Challenging Function: *#namic. .ot Machines. It is to Manage n -minister - +ocial
+#stem
Science as well as Art: )rgani&e 1o# of Kno"lege of (rinciples an /echni5ues
Staff Function: -visor# in .ature
Young Discipline: .e" +peciali&e -rea. Recent )rigin 6Last (art of 78
th
Centur#9
Interdisciplinary: *ra"s applications from +ociolog# -nthropolog#, (s#cholog#,
4conomics. etc
)!,ectives of HRM:
/o provie, create, utili&e an motivate emplo#ees to accomplish organi&ational
goals
/o secure integration of iniviuals an groups in securing organi&ational
effectiveness
/o create opportunities, to provie facilities, necessar# motivations to iniviuals,
an groups for their gro"th "ith the gro"th of the organi&ation !# /rg. 2
*evelopment compensation.
/o provie attractive, e5uita!le, incentives, re"ars, !enefits, social securit#
measures, to ensure retention of competent emplo#ees.
/o maintain high morale, encourage value s#stem, an create environment of trust,
an mutualit# of interests.
/o provie opportunities for communication, e%pression, participation, appreciation,
recognition an provie fair efficient leaership.
/o create a sense of feeling of !elongingness team spirit an encourage suggestions
from emplo#ees.
/o ensure that there is no threat of emplo#ment, ine5ualities, aopting a polic#
recogni&ing merit 2 emplo#ee contri!ution, an conitions of sta!ilit# of emplo#ment.
+ of HRM:
SCOPE OF HUMAN RESOURCE MANAGEMENT
Area Components Definitions
4mplo#ee
Hiring 2
*evelopment
H.R.(lanning
:o! -nal#sis,
:o! *esign,
(rocurement,
Recruitment,
+election,
)rientation,
(lacement,
!"!P is the process !# "hich organi&ation ensures that it has the
right num!er 2 ;in of people, at the right place, at the right time,
capa!le of effectivel# 2 efficientl# completing those tas;s that help
organi&ation achieve its overall o!,ectives. H.R.( translates these
o!,ectives 2 plans into the num!er of emplo#ees neee to meet
o!,ectives.
#o$ Analysis is the process of stu#ing 2 collecting information
relate to the operations 2 responsi!ilities of a specific ,o!, resulting
into proucts such as :o! *escriptions 2 :o! +pecifications.
#o$ Design integrates "or; content 6tas;s, functions,
relationships9, the re"ars 6intrinsic 2 e%trinsic9, an the
5ualifications re5uire 6s;ills, ;no"lege, a!ilities9 for each ,o! in
such a "a# that meets the nees of emplo#ees 2 the organi&ation.
"ecruitment involves attracting 2 o!taining as man# applications
as possi!le from the ,o!s see;ers.
Selection is the process of ifferentiating !et"een applicants in
orer to ientif# 2 hire those "ith a greater li;el# hoo of success in
as ,o!.
%rientation is a planne introuction of emplo#ees to their ,o!s,
peers an the organi&ations. Placement to the assignment of the
ne" emplo#ee to his0 her ,o!.
4mplo#ee
4valuation 2
(erformance
Improvement
/raining 2
*evelopment
(erformance
4valuation 6:o!
holers are rate9
:o! 4valuation 6onl#
:o!s are rate9
&raining ' Development is an# attempt to improve current or
future emplo#ee performance !# increasing an emplo#ee$s a!ilit# to
perform through learning, usuall# !# changing the emplo#ee$s
attitue or increasing his0 her s;ills 2 ;no"lege. /he nee for
training 2 evelopment is etermine !# emplo#ee$s performance
eficienc#.
Performance Evaluation is a formal, structured system of measuring &
evaluating his/her job related behaviors & out comes to discover
how & why he/she is presently performing on the job and how
he/she can perform more effectively in future so that employee,
organization, and society all benefit.
#o$ (valuation see;s to etermine the relative "orth of each ,o!
so that salar# ifferentials can !e esta!lishe
SCOPE OF HUMAN RESOURCE MANAGEMENT..contd
Remuneration0
Compensation
<age2 +alar#,
Incentives, 1onus,
'ringe 1enefits,
Perquisites
Non- Monetary
Benefits
ourly)*onthly Rate <age2 +alar#,
Individual plans, 3roup (lans
+ratuity, Meical care, -ccient Relief, Health 2 3roup.
Insurance
Company Car, Clu! mem!ership, (ai holia#s, 'urnishe
House,
Challenging -o$, Responsi!ilities, Recognition, 3ro"th
prospects, +upervision, <or;ing conitions, :o! sharing
4mplo#ee Motivation
2 Communication
Re"ars
:o! *esign
4mpo"erment
(articipative
Management
=ualit# of <or; Life
+ain Sharing Plans see; to re"ar team performance, uses
a pre-etermine formula to calculate cost savings 2 other
gains 2 pa#s !onus to all team mem!ers, to reuce cost 2
increase prouctivit#.
#o$ Design is the process of assigning tas;s to a ,o!,
incluing interepenenc# of those tas;s "ith other ,o!s.
+ome ,o!s have ver# fe" tas;s "hereas others "ill have
comple% set of tas;s.
(mpowerment is the process of enhancing feeling of self-
efficienc# an a sense of >o"ning$ a ,o!.
Participative Management refers to process of involving
employees or representatives at all levels of decision making
(amounts to workers having a share in the reaching of final
managerial decision.
.uality of /or0 1ife is ensure "hen mem!ers of
organisation are a!le to satisf# their important personal nees
thro their e%periences on the ,o!.
Inustrial relations 3rievance hanling
participation,
Collective
!argaining 2 other
aspects of corial
relations of mutual
unerstaning 2
trust
Concerned "ith the s#stems, rules, proceures use !#
unions an emplo#ers to etermine the re"ar for effort an
other conitions of emplo#ment, to protect their interests of the
emplo#e 2 their emplo#ers, an to regulate the "a#s in
"hich emplo#ers treat their emplo#ees.
4mplo#ee <elfare,
+afet# 2 Health.
(romotions,
/ransfers 2
+eparations
Importance of HRM:
'or )rgani&ational +ustenance: Integration an 4%ecution of )!,ectives possi!le
through HRM
+ignificance *iscusse at ?-Levels:
Corporate level
o 4ffectivel# -ttracting0 Retraining Re5uire /alent @ HR(, +election,
(lacements, Compensation, (romotions
o *eveloping Right +;ills, Right -ttitues @, /rg 2 *ev, (erformance
appraisal
o +ecure <illing Cooperation of 4mplo#ees @ Motivation, (articipation,
3rievance hanling
o 4ffective Utili&ation of Human resources
o 4nsuring 'uture )rgn. "ith @ Competent /eams, eicate emplo#ees
(rofessional level
o =ualit# of <or; Life -mong all through health# "or;ing conitions
o (rofessional 3ro"th:
Ma% opportunities for personal gro"th of each ,
Health# relationships 6Iniviuals A <03roups9
o -llocating "or; properl#
+ocial level
o *ignit# of La!or @ suita!le emplo#ment gives +ocio-ps#cho satisfaction
o Maintain 1alance @ :o! availa!le Bs see;ers
o 4liminating <aste of HRs @ conservation of (h#sical an Mental health
.ational Level:
o .ational evelopment- effective use of .atural, (h#sical, 'inancial
resourcesC
o *eveloping of +;ills, -ttitues, Balues to formt evelope nation
o +pee-up 4co-gro"th triggering 'uller 4mplo#ment an Higher stanar
of Living
4volution )' HRM:
*odern P!* evolve from several significant inter-relate evelopments
4merge through man# +tages
(rior to Inustrial Revolution - Relationships: +laver, 3uil +#stem
3uil +#stem seee (ersonnel Mgt:
<ell-;nit 3roups - Masters, /raveling :ourne#men, -pprentices
+#stem involve: +election, /2*, Re"aring, maintaining "or;ers$
4vience: +alar# -ministration 2 Collective 1arging 6"age 2 "or;ing conitions9
*evelopment of (o"ere Machines
'actor# +#stem, Mass (rouction
Rapi /ech-changesC Increase +peciali&ation
(lace of "or;: Resient to 'actor#C Loss of (ersonal touch
Mechani&ation: :o!s routines 2 Monotonous
-ppoint +eparate person: Hanle La!-(ro!elms
La!or Loo;e upon: -s commoit#01ought 2+ol
4nvironment: Laisse& faire, 3ovt. helps Little
Challenges of HRM:
Increasing si&e of "or;force
Increase in 4ucation Level
/echnological avances
Changes in political environment
Increasing aspirations of emplo#ees
Changing ps#chological s#stem
Computeri&e information s#stem
Mo!ilit# of professional personnel
Changes in legal 4nvironment
Management of Human relations
(ersonnel Management vs HRM
+trategies in the ne" millennium:
+trategic Role of HRM
'le%time, 4motional =uotient , an Mentoring
Human Capital Mgt an HRM Challenges
4mphasis on /=M 2 Kai&en, +i%-+igma
4+)(C an =ualit# Circles
Role of HRM in +trategic Mangemnt
*efinition an process
Strategic *anagement is that set of managerial ecisions an actions that
etermine the long-run performance of the corporation. It inclues 4nvironmental
Scanning, Strategy Formulation, Strategy Implementation, an (valuation -n
ControlD -Harve#
o
Strategic management:
o Integrates: HRM, +trategic 3oals 2 Corp-+trateg#
o Accepts: HRM in Corp-+trateg# 6'orm 2 Imp9 as Partner : via effective use
of HRs an activities, culture, st#le, an structure , 5ualit#, commitment,
motivation, - achieving Competitive -vantage an +ustaine 1usiness
+uccess
o olds responsi!le : Line Managers Managing for HRs
o Aligns with )!,ectives 2 +trategies: HR policies, practices an activities

HRMs Role in Strategy Formulation


Envn-Scan:
Balancing
SWs Vs OTs
Competitive Intelligence Fed to Str-
Planning process: Competitors
Incentive plans, Customer
complaints, Pending labor laws
Cometitive
!"vantage
Caters Competent, Committed,
Dedicated & Motivated wor!orce
attuned to Corp-Strateg" to compete
#Maret $esponsiveness !or
Competitive %dvantage
E##ect on
Via$ility o#
Strategic
Otions
Suppl"ing In!ormation on Internal
Strengt&s n 'eanesses as (ni)ue
*$ capabilit" & Driving !orce gaining
competitive advantage
Human Capital:
Human Capital:
o Intellectual Capital
+peciali&e Kno"lege
+;ills an e%pertise
Cognitive comple%it#
Learning capacit#
o +ocial Capital
.et"or; of relationships
+ocia!ilit#
/rust-"orthiness
o 4motional Capital
+elf confience
-m!ition an Courage
Ris; ta;ing a!ilit#
Resilience
HCM refers to the tas; of measuring the cause an effect relationship of various HR
programmes an policies on the !ottom line of the organisation. It see;s to o!tain
aitional prouctivit#
HR professionals must no" !ecome human capital evelopers. -s capital
evelopers, HR e%ecutives focus on the future, often one emplo#ee at a time,
eveloping plans that offer each emplo#ee opportunities to evelop future a!ilities,
matching e%pectations "ith opportunities. /he role also inclues helping emplo#ees
unlearn ol s;ills an ac5uire ne" ones. HR professional shoul invest resources to
shape emplo#ees for the future, an not the past. )ften, these emplo#ee
evelopment plans ma# !e carrie out online through an emplo#ee portal "here
opportunities in the firm are liste an emplo#ees ascertain if the# are prepare for
such opportunities. -t other times, emplo#ee evelopment programmes are
em!ee in HR programmes li;e performance or career management.
4mpotional =uotient:

HRMs Crucial Role in


Strategy %mlementation
Cometent
Motivate"
&or'#orce
I! absent: +,cellent Strateg" Fails to
ac&ieve business goals-
Cometent
Motivate"
&or'#orce
Planned Downsi.ing &
$estructuring/ 0ut placing and or
$etraining emplo"ees/ P!-based
plans/ $educing &ealt& care costs
((Continue"
HRs Strategic !rc)itecture
T)e HR
Function
*$ persons to 1earn Strategic
competencies- Invest *ig& in 2Str-
Planning, outsource routines to save
!or *ig&er 3alue-added 24ass
T)e HR
System * its
su$-systems
25e Strategicall" %ligned 6orgn7- %ll
*$ activities 8 initiatives to !ocus on
*I-P! 5ased 'or!orce, Innovation
and Creativit", +mpowerment
Emloyee
Be)avior
5e&avior impacts P!- Integrate *$
into 5us-P! Measurement S"stem-
1in *$ Per!ormance Deliverables to
0rgn-Strateg" Implementation
4motional =uotient:
4motional 5uotient 64=9, also calle emotional intelligence 5uotient, is a
measurement of a personEs a!ilit# to monitor his or her emotions, to cope "ith
pressures an emans, an to control his or her thoughts an actions. /he a!ilit# to
assess an affect situations an relationships "ith other people also pla#s a role in
emotional intelligence. /his measurement is intene to !e a tool that is similar to
intelligence 5uotient 6I=9, "hich is a measurement of a personEs intellect. /here is
much e!ate surrouning the legitimac# of 4=, ho"ever, primaril# !ecause there is
no stanar of measurement.
Mentoring:

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