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So, why do we study HRM????

Line managers are responsible for effective


use of people in organization
Need to understand human behaviour
Need to be knowledgeable about systems
and processes that help build a committed
workforce
Need to be aware of constraints

Manoj Mathew, RSOM

Personnel management is the planning,


organising, directing and controlling of the
procurement, development, compensation,
integration, maintenance and separation of
human resources to the end that individual,
organisational and societal objectives are
accomplished.
Edwin B Flippo

Manoj Mathew, RSOM

The policies and practices involved in


carrying out the people or human
resource aspects of a management
position, including recruiting,
screening, training, rewarding and
appraising.
Gary Dessler

Manoj Mathew, RSOM

Human Resource Management is a set


of organisational activities undertaken
to attract, develop, and maintain an
effective
workforce
within
an
organisation.

Manoj Mathew, RSOM

PM philosophy
People as an expense to be controlled to
ensure profitability of organisation.
Is operational in focus and scope.
This approach emphasis on people as costs and
resources to be worked to secure maximum
efficiency. It is called the Rational or
economic view of employment where the
basic approach is Control and compliance
Manoj Mathew, RSOM

HRM Philosophy
People as a critical resource to be
developed for future benefit to the
organisation
A resource to be invested in, not
controlled.
Here, emphasis on people as resources to be invested in to
generate high commitment and involvement. This is the
Social or psychological view of employment and it
emphasises on commitment of the people working together
as an organisation, both - Hard and Soft.
Manoj Mathew, RSOM

HR SHAREHOLDER VALUE RELATIONSHIP

Business &
strategic
initiatives

Design of
HRM
system

Employee skills

Productivity

Employee
motivation

Creativity

Job design and


work structure

Discretionary
Effort

Manoj Mathew, RSOM

Improved
operating
Performance

Profits &
Growth

Market
value

HRM OBJECTIVES
Employee job satisfaction, selfactualisation and motivation
Employee effectiveness and efficiency
Improved quality (innovation & Creativity)
Cost-effectiveness and competitiveness
Labour flexibility

Manoj Mathew, RSOM

HRM OBJECTIVES

Employee commitment
Increased competence (training & development)
Participation and autonomy
Creating readiness for change
Rewards and incentives linked to performance
More organic structures
Recognition of human resource or people
issues at the strategic level

Manoj Mathew, RSOM

Emp
assistance

Union/Lbr
relations
T&D

Compen
/ Benefits

HRs output : QWL,


Pdvty, change
readiness

HR Research &
HRIS

OD

Orgn & job


design

Sel & Tng


HRP
H R Wheel, ASTD 1983
Manoj Mathew, RSOM

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