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HUMAN

RESOURCE
MANAGEMENT

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UNIT-1
Introduction to HRM

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Definitions of HRM
HRM is the personnel function which is concerned with
procurement, development, compensation, integration and
maintenance of the personnel of an organization for the purpose of
contributing towards the accomplishments of the organizations
objectives. Therefore, personnel management is the planning,
organizing, directing, and controlling of the performance of those
operative functions (Edward B. Philippo).

According to the Invancevich and Glueck, HRM is concerned with


the most effective use of people to achieve organizational and
individual goals. It is the way of managing people at work, so that
they give their best to the organization.

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Nature of HRM
HR consists of people related functions (human capital mgnt)
HRM necessitates alignment of HR policies and practices with
the organizations strategies
HRM Involves the Application of Management Functions and
Principles
Decision Relating to Employees must be Integrated
Not only HR specialists, line managers are also equally
important for carrying out the activities
Decisions Made Influence the Effectiveness of an Organization.
HRM Functions are not Confined to Business Establishments
Only

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Scope of HRM
The scope of HRM is very wide:
1. Personnel aspect- This is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, training
and development, layoff and retrenchment, remuneration,
incentives, productivity etc.

2. Welfare aspect- It deals with working conditions and amenities


such as canteens, crches, rest and lunch rooms, housing,
transport, medical assistance, education, health and safety,
recreation facilities, etc.

3. Industrial relations aspect- This covers union-management


relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc. 5
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HUMAN RESOURCE
BASIS FOR COMPARISON PERSONNEL MANAGEMENT
MANAGEMENT
Meaning The aspect of management that is The branch of management that
concerned with the work force and focuses on the most effective use
their relationship with the entity is of the manpower of an entity, to
known as Personnel Management. achieve the organizational goals is
known as Human Resource
Management.
Approach Traditional Modern

Treatment of manpower Machines or Tools Asset

Type of function Routine function Strategic function

Basis of Pay Job Evaluation Performance Evaluation

Management Role Transactional Transformational

Communication Indirect Direct

Labor Management Collective Bargaining Contracts Individual Contracts

Initiatives Piecemeal Integrated

Management Actions Procedure Business needs

Decision Making Slow Fast

Job Design Division of Labor Groups / Teams 10


Human Resource Specialties

Recruiter

Labor relations
specialist EEO coordinator
Human
Resource
Specialties
Training specialist Job analyst

Compensation
manager

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Composition of a HR/personnel department

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1. S.P Role- turning strategy into results by building organizations that
create value.
2. C.A Role- making change happen, and in particular, help it happen
fast.
3. E.A Role- managing the talent or the intellectual capital within a firm.
4. A.E Role- trying to get things to happen better, faster and cheaper.
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Pre-Requisites of HR development process

1. Job analysis
2. Job Design
3. Job evaluation
4. Job performance standards
5. HR Planning

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Job analysis is the process of gathering and analyzing information about the content and
the human requirements of jobs, as well as, the context in which jobs are performed.

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Job design
Job design involves systematic attempt to organize tasks, duties and responsibilities into a
unit of work to achieve certain objectives. The process by Which managers decide how to
divide specific tasks into specific jobs.

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Job Evaluation
In the words of Edwin B. Flippo. "Job evaluation is a systematic and orderly
process of determining the worth of a job in relation to other jobs."

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Job Performance standards
Performance standards provide the employee with specific performance
expectations for each major duty. They are the observable behaviors and actions
which explain how the job is to be done, plus the results that are expected for
satisfactory job performance

Performance standards are:

-Based on the position, not the individual


-Observable, specific indicators of success
-Meaningful, reasonable and attainable
-Used to describe a "fully satisfactory" performance once an employee is trained
-Expressed in terms of quantity, quality, timeliness, cost, or outcomes

Job analysis Job design Job evaluation Job performance standards

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