Professional Documents
Culture Documents
Human resource management (HRM) is the strategic and coherent approach to the management of an organisation's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term personnel management" as a description of the processes involved in managing people in Organizations.
Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory
Andrew Carnegie
IMPORTANCE OF HRM
HRM helps in
Improving the capabilities of an individual Developing the team spirit Obtaining cooperation from the employees Promoting organisational effectiveness
IMPORTANCE OF HRM
Social significance : enhances ones dignity by satisfying their social needs Professional significance :promotes team work in the employees Significance for individual enterprise: help the organisation in accomplishing its goals
Importance of HRM
Social Significance Balance the jobs available and job seekers Provide suitable and productive employment Maximise utilisation of the resources effectively Eliminate waste or improper use human resources Help people make their own decisions
Importance of HRM
Professional Significance Maintain dignity of the employee as human Provide maximum opportunities for personal development Provide healthy relationship to different work groups Improve skills and capacities Minimise wrong postings, allocate work properly
Importance of HRM
Significance for Individual Enterprise Create right attitude among employees through effective motivation Utilise the available human resources effectively Secure co-operation of the employees: achieve goals, psychological needs- love, affection, belongingness, esteem and self actualisation
1.Why HRM in Important All Managers Must EngageIs Some HRM Activities interview job candidates orient new employees evaluate work performance HRM Policies and Practices Have a Positive Impact on Performance high performance work practices
commit to improving knowledge and skills increase motivation retain high quality employees encourage nonperformers to leave
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DEFINING HRM
The planning, organising directing and controlling of the procurement, development, compensation, integration, and maintenance of human resource to the end those individual, organisational, and social objectives are accomplished. (Flippo, 1984). The organisation function that focuses on the effective management, direction, and utilisation of people; both the people who manage produce and market and sell the products and services of an organisation and those who support organisational activities. It deals with the human element in the organisation, people as individuals and groups, their recruitment, selection, assignment ,motivation, empowerment, compensation, utilisation, services, training, development, promotion, termination and retirement.(Tracey,1994 )
DEFINING HRM
A series of integrated decisions that govern employer-employee relations. Their quality contributes to the ability of organisations and employees to achieve their objectives (Milkovich & Boudreau, 1997). Concerned with the people dimension to management. Since every organisation comprises people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue at the same level of commitment to the organisation are essential to achieving organisational goal. This is true, regardless of the type of organisation: viz. government, business, education, health, recreation, or social action. (Decenzo & Robbins, 1989).
HRM Definition
Is concerned with people dimension in management. Since every organisation 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 organisation are essential to achieving organisational objectives.
What is HRM:
Human Resource Management refers to the practices and policies one need to carry out the personnel aspect of management jobs.
The design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish the organizational goals.
Labor Relations
HRM Components
Component should be consistent with the others, organization structure, and strategy.
Recruitment: develop a pool of qualified applicants.
Selection: determine relative qualifications & potential for a job.
Training & Development: ongoing process to develop workers abilities and skills. Performance appraisal & feedback: provides information about how to train, motivate, and reward workers.
Managers can evaluate and then give feedback to enhance worker performance.
HRM Components
Pay
and Benefits: high performing employees should be rewarded with raises, bonuses.
Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm.
Labor
relations: managers need an effective relationship with labor unions that represent workers.
Unions help establish pay, and working conditions.
HRM-ACTIVITIES/PROCESES
Workforce planning Recruitment (sometimes separated into attraction and selection) Induction and Orientation Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal INDUSTRAIL/LABOUR RELATION (IR) (GRIEVANCES HANDLING) TRADE UNION MANAGEMENT (COLLECTIVE BARGAINING/NEGOTIATION)
Recruitment
Selection
Derecruitment
Orientation
Training
Performance Management
Career Development
Competent employees who are capable of sustaining high performance over the long term
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Environment
HR MANAGEMENT ACTIVITIES
HR MANAGEMENT ACTIVITIES
HR Planning and Analysis Staffing HR Development Compensation and Benefits Health, Safety, and Security Employee and Labor/Management Relations
CHARACTERISTICS OF HRM
HRM is a pervasive function. It permeates all levels of decision making in an organisation HRM is also a comprehensive function, in that it is concerned directly or indirectly with every decision Cost effectiveness is a must There is a need to spot trends and tailor personnel requirements accordingly Human resource management department provides for an integrating mechanism It is action oriented as in it the focus is on action, rather than record keeping, written procedures or rules HRM seeks to maximise employee motivation to make them contribute to their maximum potential HRM is people oriented HRM is continuous activity, consistent function and not a short-term measure. Human resource management function is of importance to Public as well as private organisations
FEATURES OF HRM
integration of HR polices with overall planning Responsibility for personnel management no longer resides with specialist managers but is increasingly assumed by the senior line management The focus consequently shifts from management-trade union relations to management-employee relations; from collectivizing to individuation; macro to micro; and; To reiterate, with the manager donning the role of enabler, or facilitator, there is stress on commitment and initiative on the part of the employees.
SCOPE OF HRM
Personnel aspect: concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity, etc. Welfare aspect; dealing with working conditions and provision of amenities such as canteens, crches, rest and lunch rooms, housing, transport, medical assistance, education, health, safety, recreation facilities, etc.; and Industrial Relations aspect: the legal part which covers unionmanagement relations, joint consultation, collective bargaining, grievance redress and disciplinary procedures, settlement of disputes, etc.
Scope of HRM
HR Planning Job analysis and Design Recruitment and Selection Orientation and Placement, Training and Development Performance appraisal and Job Evaluation Employee and Executive Remuneration Motivation and communication Welfare, Safety and Health Industrial Relations (IR)
OBJECTIVES OF HRM
The primary objective of human resource management is to ensure a continuous flow of competent workforce to an organisation Societal Objectives Organisational Objectives Functional Objectives Personal Objectives
Objectives of HRM
Societal To be ethically and socially responsible to the needs and challenges of society while minimising the negative impact of such demands upon the organisation. Organisational To recognise the role of HRM in bringing about organisational effectiveness.
Objectives of HRM
Functional To maintain the departments contribution at a level appropriate to the organisations needs. Personal To assist employees in achieving their personal goals, at least insofar as these goals enhance the individuals contribution to the organisation.
To establish and maintain a productive and self respecting relationship among all the members of an organization. To ensure the availability of a competent and willing workforce to the organization for its progress and prosperity. To help organization to achieve its goals by providing well trained efficient and properly motivated employees. To maintain high morale and good human relations within the organization for the benefit of employer and employees. To secure the integration of all the individuals and groups with the organization by reconciling individual/group goals with those of an organization.
Supporting Functions
1. Legal compliance 2. Benefits 3. Union-management relations 1. Human resource planning 2. Employee relations 3. Selection 4. Training and development 5. Appraisal 6. Placement 7. Assessment
Organisational Objectives
Functional Objectives
1. Appraisal 2. Placement 3. Assessment 1. Training and development 2. Appraisal 3. Placement 4. Compensation 5. Assessment
Personal Objectives
Supporting Functions
1.Training & Development 2.Placement 3.Assessment 4.Compensation
Personal
ROLE OF HRM
Advisory Role
Personnel Policies Personnel Procedures
Supporting HRM Functions Legal Compliance Benefits Union Management Relations Human Resource Planning Employee Relations Recruitment & Selection Training & Development Performance Appraisals Placement & Orientation Employee Assessment Performance Appraisals Placement & Orientation Employee Assessment Training & Development Performance Appraisals Placement & Orientation Compensation Employee Assessment
FUNCTIONS OF HRM
MANAGERIAL FUNCTIONS
OPERATIVE FUNCTIONS
The Procurement Function The Development Function The Compensating Function The Integration Function The Maintenance Function
Functions 2.The HRM Process of HRM Process necessary for staffing the organization and sustaining high employee performance identify and select competent employees provide up-to-date knowledge and skills retain competent, high performing employees
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Behaviour referent
Monitoring
Labour Management Piecemeal Transactional Slow
Communication Indirect
Prized Management skill Selection Pay Conditions Negotiation
Division of labour Team work Manage climate and culture Learning companies
Conflict handling Reach temporary truce Training & Controlled access Development to courses
Wide rangingcultural,structural and personnel strategies Labour treated People are treated as tool : as assets to expendable and benefit replaceable organisation/ employees/society
Personnel
Organisational interests are uppermost Precedes HRM
Human Resource
Mutuality of interests Latest in the evolution of the subject