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HRM: INTRODUCTION

DEFINITION
HRM is the function performed in orgns that
facilitates the most effective use of people to achieve
orgnl and individual goals.
HRM is a process that consists of 4 functions:

Acquiring
Developing
Motivating
Retaining

HRM: FUNCTIONS
Some assumptions:
Individuals differ in values, attitudes, beliefs, culture
Stimulating and Motivational factors vary in individuals
Expectations of todays employees different from
yesteryears.

MANAGERIAL FUNCTIONS

PLANNING:
Deciding future course of action
Identifying future HR requirements

ORGANIZING:

STAFFING:

Manpower planning, recruitment, selection, placement, induction,


orientation, transfer, career progression and separation

DIRECTING:

Structure roles for people- chain of command, division of labor,assignment


of responsibility for better utilization of HR

Directing available resources to common orgl goals

CONTROLLING:
Measure performance against goals, identify deviations, put the
process back on track

OPERATIVE FUNCTIONS
EMPLOYMENT:

JOB ANALYSIS
HUMAN RESOURCE PLANNING
RECRUITMENT
SELECTION
PLACEMENT
INDUCTION

HUMAN RESOURCE DEVELOPMENT:

Performance Appraisal
Training
Management Development

OPERATIVE FUNCTIONS
COMPENSATION:

Job Evaluation
Wage and Salary Admin
Incentives
Fringe Benefits

EMPLOYEE RELATIONS:

Increase employee productivity


Employee satisfaction and motivation
Develop team bldg.,leadership skills
Ensure discipline
Counseling and developing employees
Work-life balance

ROLE OF HR EXECUTIVES

SERVICE PROVIDER:
Information regarding employee related issues for decision making
Market statistics of personnel availability
Interpret laws and legislation
THE EXECUTIVE:
Recruitment, compensation etc.
THE FACILITATOR:
Equip other managers to handle HR activities
Facilitates Training, Performance Appraisal etc.
THE CONSULTANT:
Managers seek HR professionals advice for people related issues
THE AUDITOR:
Ensure that management makes effective use of human resources

CHALLENGES FOR HR PROFESSIONALS


WORKER PRODUCTIVITY:
Flat organization
Decision making at the shop floor
Self-managed teams
People are responsibility of line managers
QUALITY IMPROVEMENT:
Needs change in corporate culture
Commitment to concept of quality
Education&training,teamwork, total systems approach,EI, top management
commitment, customer-driven,long-term perpective
CHANGING WORKFORCE ATTITIDE:
Reduced job security and job loyalty
One single global market
Need to eliminate discrimination
Diverse workforce

CHALLENGES FOR HR PROFESSIONALS


THE IMPACT OF GOVT.:
E.g. 1991 economic reforms have changed the face of Indian orgn.
QUALITY OF WORK LIFE:
The extent to which employees work meets his personal needs
Can be improved by making work more rewarding,reducing anxiety,
participation in decision making, team building
TECHNOLOGY AND TRAINING:
Technology changes rapid
Leads to faster and dependable decision making
Hence T&D has become a continuous process

ORGANIZATIONAL STRUCTURE AND HRM

MECHANISTIC

Rigid
High structure, direction, rules
High centralization
High bureaucracy
For static environ
Power, authority with few
Tasks/duties well defined
Low communication
Cannot survive competition

ORGANIC

For dynamic environment


High flexibility
Value for knowledge
Low formalization/authority
Decentralization
React fast
Adapt well to uncertain environ
Lateral communication
Fast decision making
Not tied by rules/regulation

LINE VS STAFF

LINE MANAGER CRITICISIM


HR staff take up line authority
Do not provide right support
HR staff try to steal limelight
HR staff do not see whole
picture

HRS RESPONSE

Line function biased against HR


They do not understand
contribution of staff function
They do not know how to make
effective use of HR
They are closed to innovation
and experimentation
HR function handicapped, not
given enough freedom and
power

WHAT CAN BE DONE?

HR NEEDS TO DO THE FOLLOWING:


Understand market and business better
Complete understanding of orgnl processes
Empathy to limitations of line function
Build atmosphere of transparency and trust
Work towards a win-win
Accept bouquets an d brick-bats
Be part of designing orgnl strategy