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PERSONNEL MANAGEMENT TO Human resource management

PM to HRM

PM Vs. HRM
A number of people from students to managers to academicians, mistakenly think that PM and HRM are synonymous concepts. There are some others who treat the two concepts as different. Goss gave three distinguishing features between the two.
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Differences as per Goss


1. PM emphasizes on clearly defined rules, procedures and contracts. HRM emphasizes on open-ended contracts. 2. PMs function is mainly reactive. HRM is a proactive function. 3. Employees get standardized rewards based on job evaluation in PM. HRM emphasizes on performance-related pay.
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PM Vs HRM
Dimensions Employee Contract Rules Philosophy Communication Managerial Dimension Key Relations Decision-making Approach Level of Trust Pay Conflict handling PM Careful following of written contract Devising clear rules Employees are made for rules and regulations Slow and downward Monitoring Labor Management Slow Work oriented Low HRM Aim to go beyond contract Impatience with rules Rules and regulations are made for employees Fast and both downward and upward Nurturing Customer Fast People oriented High

Job Evaluation (fixed grades) Performance related Reach temporary settlement Manage climate and culture

PM to HRM

PM Vs HRM contd..
Dimensions Respect for employee PM Labor is treated as tools which is expendable & reachable Interests of the organization are uppermost HRM Employees are treated as assets of the organization Mutuality of Interests

Shared Interests

Evolution

Precedes HRM

Latest in the evolution of subjects

PM to HRM

Definition
According to Edwin B. Flippo, Personnel Management is the planning, organizing and controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished.
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Definition
According to Milkovich and Boudreau: Human Resource Management is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organization and the employees to achieve their objectives.

PM to HRM

HRD
Harbinson and Myers have aptly defined human resources development as the process of increasing the knowledge, skills and capacities of all the people in a country.
HRM = HRD + OD
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PM Vs HRD
Dimensions Function System Responsibility Scope PM Routine, maintenance oriented, administrative Independent function with sub-functions HRD Continuous development Sub-system of a large system

Exclusive responsibility of the Aims at developing the personnel department capabilities of all line managers Narrow view Wider view

PM to HRM

Concept
HRM is concerned with managing all levels of personnel, including blue-collared and white-collared employees. a function aiding & directing individual in maximizing their personal contribution. concerned with helping employees to develop their potentialities and capacities to the maximum possible extent.
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is inherent in all organizations. is of a continuous nature. aims at development of espirit de corps.

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Nature
Concerned with Human Element Integral part of Management Wide Range of Activities Motivation of Human Resources Development of Human Resources A pervasive function Continuous nature Multidisciplinary Approach Staff function
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People can move Mountains


Among the various factors of production which are used in the organization, human resource is the most important. Once they get inspired, even ordinary people can deliver extraordinary results.
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Human resources help in transforming the lifeless factors of production into useful products. Human resources are capable of enlargement, i.e. capable of producing an output that is greater than the sum of inputs. Human resources help an organization achieve results quickly, efficiently and effectively.
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Functions
Managerial Operative

Planning Organizing Directing Controlling

Procurement Training & Development Compensation Integration Working Environment Welfare Activities Human Relations Records and Statistics Separation
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HRM Philosophy
Human beings are the most important assets in an organization. Human beings can be developed to an unlimited extent. Employee commitment can be attained by developing a feeling of belonging in them. Employees develop a feeling of belonging if the organization cares for the satisfaction of their needs.
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HRM Philosophy contd..


Employee commitment increases when they get an opportunity to use their full potential. A healthy and motivating climate is needed which is characterized by openness, enthusiasm, trust, mutuality and collaboration.

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Evolution of HRM
INDUSTRIAL REVOLUTION ERA PATERNALISTIC ERA SCIENTIFIC MANAGEMENT ERA

INDUSTRIAL PSYCHOLOGY & BEHAVIORAL SCIENCES ERA

WELFARE ERA

PERSONNEL SPECIALIST ERA


PM to HRM

HUMAN RELATIONS ERA


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Scope of HRM
The HUMAN RESOURCE MANAGEMENT MODEL developed by the American Society for Training and Development (ASTD) integrates the nine areas or sub-systems of HRM.

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Scope of HRM contd..


Training and Development Organization Development Organization/Job Design Human Resource Planning Selection and Staffing Personnel Research and Information System Compensation/Benefits Employee Assistance Union/Labor Relations
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Qualities of HR Manager
Intelligence Educational Skills Discrimination Skills Executing Skills Experience and Training Professional Attitude Fairness and Firmness Tact and Resourcefulness Empathy and Consideration
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Qualities of HR Manager contd..


Knowledge of labor and other terms Broad Social Outlook Competence Confidence Capacity of Leadership Long-term Perspective Personal Integrity Sense of Social Responsibility Dynamic Personality
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Qualifications of HR Manager
NIPM (National Institute of Personnel Management) is silent about the qualifications of HR/Personnel Managers. The question of prescribing a set of qualifications for a personnel manager, in view of the expanding list of tasks, makes the search for a suitable candidate rather challenging.
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Qualifications of HR Manager contd.. The following educational qualifications may be necessary to achieve success, in addition to the qualities already mentioned:

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Qualifications of HR Manager contd..


Postgraduate degree/diploma in HRM/HRD/Labor Welfare/Social Work/Psychology/Industrial Relations/MBA with specialization in HRM. Degree in Law Knowledge of Local Language

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Roles of HR Manager
Headship or Figurehead Role Advisory Role Counsellor and Mediator Compliance Role Initiator Role Linking Pin and Human Relations Role Researchers Role Change Agent Role
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Is HRM a profession?
To be called a profession, HRM must fulfill the following criteria or features of a profession: Knowledge Competent Application Social Responsibility Self-Control Community Sanction
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Is HRM a profession?
Knowledge: There exists a rapid expanding body of knowledge underlying the management field. Competent Application: Several consultancy firms offer advice to business concerns, thus there is application too. Social Responsibility: HR Managers recognize their social responsibilities.
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Is HRM a profession?
Community Sanction: The community approves HRM as a profession. Self-Control: But HRM does not fulfill the self-control criterion since there is no central control mechanism.

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Professionalization of HRM in India


Though management is proceeding towards professionalism, HRM has to do a lot in India to be recognized as a profession. There is a perceptible variation in educational qualifications, training, designations, emoluments and the types of functions performed by those engaged in personnel jobs. HRM is still to go a long way before it could be considered at par with other professions like medicine, law and accountancy.
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Professionalization of HRM in India


In 1960s and 70s, the two professional bodies, IIPM and NILM, were merged to form the National Institute of Personnel Management (NIPM) at Kolkata. Unlike other professional bodies such as Bar Council of India, Medical Council of India, Institute of Chartered Accountants of India etc., NIPM has not obtained a professional character till date.
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Professionalization of HRM in India


It has no say in the accreditation of academic courses in HRM. Its has no jurisdiction in regulating the entry of people into the HRM field. Even expulsion from NIPM membership does not disqualify a person from working in the HRM field. NIPM has no authority to bind its members to the prescribed code of ethics.

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Assignment No. 1
Q.1 Write a detailed note on the growth of personnel management in India. Q.2 What are the various approaches to Human Resource Management? Q.3 Write a short note on the famous Hawthorne Experiments. For any clarifications, feel free to mail at nehash@rediffmail.com
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