INTRODUCTION TO HRM

By Dr. Ketki Bhatti

Evolution of HRM in India

1920s -1930s 1940s - 1960s 1970s - 1980s 1990s According to Gary Dessler: HRM is the process of acquiring, training, developing, appraising and compensating employees and attending to their relationship within the organisation, their health and safety.

Organisation and HRMFeatures

An organisation is an institution, created by society to undertake a set of tasks. It existence can be temporary or permanent. There are more than one person in the organisation to perform the tasks. They may be partners or employees. The relationship between these employees are defined and structured. The relationship will produce interaction between these employees over a period of time and this will sustain a process for carrying out the given task. Hence Org. is structured process- Employees work in team for org. goals.

Importance of HRM

Social significance Professional significance Significance of an individual

SCOPE OF HRM

Prospects Of HRM Nature of HRM Nature of HRM Employee Hiring Employee Remuneration Industrial Relations Employee Maintenance Employee Motivation

OBJECTIVES OF HRM
SOCIETAL OBJECTIVES ORGANISATIONAL OBJECTIVES FUNCTIONAL OBJECTIVES PERSONAL OBJECTIVES

Functions of HRM

Procurement of manpower Development of manpower Performance and Compensation payment Integration of interests Motivation and Maintenance of manpower Provision of welfare facilities Maintaining cordial industrial relations Miscellaneous functions

FEATURES OF HRM

Managing people People oriented process Develops employee's potentialities Integral part Secures employee cooperation Future oriented Continuous activity Challenging function/activity

ThusIMPORTANCE OF HRM

Significance for an enterprise Professional significance Social significance National significance

BEST HRM PRACTICES

Recruitment, selection & development of manpower Industrial relations Provision of welfare facilities Manpower management Information collection Expansion, modernization automation

HRM Model

Job Analysis Job Design Job Evaluation Manpower Planning Recruitment Selection Placements Induction

Employee Training Job Rotation Job Transfer Promotions Career Planning Wages and Incentives Fringe Benefits

Differences between Personnel Management and HRM

Sr. no. Dimension PM HRM

1.

Employment Contract
Initiatives Remuneration Rules

Careful delineation of written contracts

Integrated Fixed Importance of devising clear rules Slow

Aim to go beyond contract

2. 3. 4.

Piecemeal Performance- related Can do outlook impatience with rule

5.

Speed of decisions

Fast

6.

Training & Development

Job Design

Controlled access to courses

Division of work

Learning Companies

7.

Team Work

8.

Evolution

Precedes HRM

Latest in the evolution of the subject

Challenges for HRM Manager

Challenges relating to recruitment, selection and development of manpower. Challenges relating to industrial relations. Challenges relating to provision of welfare facilities. Challenges relating to manpower management. Challenges relating information collection, storage and ready availability when required.

Challenges relating to research on personnel management. Challenges relating to expansion, modernisation and automation. Challenges relating to collective bargaining and other techniques of labour participation in management. Challenges relating to the execution of personnel policies. Challenges relating to trade union activities.

So What is HRM?

Human Resource Management ("HRM") is a way of management that links people-related activities to the strategy of a business or organisation. HRM is often referred to as "strategic HRM". It has several goals: To meet the needs of the business and management (rather than just serve the interests of employees); To link human resource strategies / policies to the business goals and objectives; To find ways for human resources to "add value" to a business; To help a business gain the commitment of

In shortHRM is in search of best practices:

A)Rational or economic view- emphasis on people as costs and resources to be worked to secure efficiency. B)Social or psychological view- Emphasis on people as not cost but as involvement

Integration of Interests of Employees and Management

Employee Interests Recognition as an individual. Opportunity for expression and development. Economic security and growth employees. Interest in work.

Managements Interests Lowest personnel cost per unit. Maximum productivity of employees. Availability and stability of employees. Commitment of employees.

Safety, healthy working conditions. Acceptable hours of work and adequate wages. Fair and efficient leadership.

High organisational morale and discipline. Productive initiative of emloyees.

Qualities of HR Manager

Mind with a capacity of creative thinking. Problem- solving techniques. Leadership-Social responsibility and social justice. Personal integrity so people would repose confidence in him. Capacity for persuasion, coupled with patience and tolerance. Friendly, approachable, tactful, pleasing personality, well-groomed appearance, sophisticated taste and habits.

Initiative and decision-making ability Ability to generate trust among his colleagues and develop acceptability, recognition for himself and his ideas of communication with readiness and fluency. Readiness to cooperate with the subordinates in times of difficulty and never to interfere or thrust his advice on them.

Role of HR Manager

Humanitarian- Reminds the management of its moral and ethical obligations to its employees. He plays the role of a counsellor to whom the employees frequently go for consultation. As a mediator, places the role of a peace maker, offering to settle the grievances and disputes that may arise among individuals or groups- Liaison. Spokesman for or representative of the company.

Problem solver-Issues of HR and issues concerned with employees. Works as a change agent to the management on introduce or implement major institutional changes. He helps line managers to detect and solve their personnel problems.

Revision: Workforce

Industrial employees. Farm/Agricultural employees. Office/Shop employees.

Features of Workforce

Composition of workforce Employment in Factories Inductrial labour growth Roots in villages Limited education Absence of unity Labour turnover among industrial workforce.

Purpose of Personnel Policy Manual

Providing systematic approach to policies and practices. Providing a fundamental communication tool to supervisory staff. Avoiding difficulties due to misunderstanding of personnel policies. Providing fair opportunities to all employees. Providing personnel policies in written form for consistent application. Enabling managers to maintain cordial personnel relations.

Benefits of Personnel Policy Manuals

Gives clear explanation of existing policies. Useful tool in supervisory training. Document of companys faith or fair personnel policies. Act as readymade guide to personnel policies and procedures. Training manual for supervisory staff. Avoids indecision on personnel matters. Avoids unfair employment practices. Acts as a communication devise.