INTRODUCTION TO HRM

Today`s Questions
• What is Human Resource Management HRM?
• What are the megatrends related to HRM?
• What are the different functions of HRM?
 What is Human Resource?
• What is a Resource?

Lands Machinery Money Materials

• What is Human Resource?

Individuals or Personnel
or Workforce or Manpower.
 Human Capital
• The term human capital describes the
economic value of employee`s knowledge,
skills, capabilities.

• Human capital cannot be managed the way

organizations manage Machinery, Money,
materials…
 What is Human Resource
Management?
• Human Resource Management is “concerned with the people
dimension in management. Since every organization is made
up of people, acquiring their services, developing their skills,
motivating them to high levels of performance and ensuring
that they continue to maintain their commitment to the
organization are essential for achieving organizational
objectives. This is true regardless of the type of organization
government business, Education, Health, regression or social
action.”
Decenzo David A. & Stephen Robbins P., Human Resources Management, John Wiley & Soans Inc. New York, 1994.
 What is Human Resource
Management?
• The National Institute of Personal Management (NIPM) of
India has defined HRM as:
“that part of management which is concerned with people at
work and with their relationship within an enterprise. Its aim
is to bring together and develop into an effective organization
of the men and women who make up enterprise and having
regard for the well – being of the individuals and of working
groups, to enable them to make their best contribution to its
success”.
Human Resource Management: Meaning, Objectives, Scope and Functions by Chand Smriti, Online Article.
 What is Human Resource
Management?
• In simple words, HRM is a all planned and
controlled activities of an organization to build
and maintain the relation between employees
and the organization in order to meet both
business objectives and employee expectations.
• HRM is the process of acquiring, training,
appraising, and compensating employees, and of
attending to their labor relations, health and
safety, fairness concerns.
Fundamentals of human resource management, Fourth edition, Gary Dessler,P34.
 HRM vs Personnel Management
Basis of comparison Personnel Management
Meaning The aspect of management
that is concerned with the
work force and their
relationship with the entity.
Approach Traditional
Treatment of Machines or tools
Manpower
Type of function Routine Function
Basis of pay Job evaluation
Collective Bargaining
Labour Management
Contracts
Primarily on activities like
employee hiring,
Focus
remunerating, administrating,
and harmony.
HRM
The branch of management that
focuses on the most effective use
of the manpower of an entity, to
achieve the organizational.
Modern
Assets
Strategic Function
Performance evaluation
Individual Contracts
Treat manpower of the
organization as valued assets, to
be valued, used and preserved.
What are the Megatrends related to
HRM?
Innovation

?
From Handwork to knowledge work
 Demographic changes
Projected population pyramid: India-2001 Projected population pyramid: India-2026
 Demographic changes

POPULATION PROJECTIONS FOR INDIA AND STATES 2001-2026 REPORT OF THE TECHNICAL GROUP
ON POPULATION PROJECTIONS CONSTITUTED BY THE NATIONAL COMMISSION ON POPULATION
May 2006
Globalization
Web 2.0 user-generated content
Megatrends determine the future of
HR
 Acquire the right talents
Innovation  Give the right rewards
 Support life long learning
Demography  Support diversity
 Build successors
Globalisation  Retain and share knowledge
 Shape attractive work conditions
Web 2.0  Use latest technologies
 Retain the best talents
 HRM has 3 basic Functions:

Acquisition Stimulation Development

• Recruitment • Motivation • Training

and Selection • Compensation • Performance
• On-boarding and benefits appraisal
• Health and • Career
safety management

In other words, hiring people, preparing them, stimulating

them and keeping them.
 Acquisition Functions
Recruitment
The process of attracting individuals on a timely basis,
in sufficient numbers and with appropriate
qualifications, to apply for jobs with an organization.
Mondy, R. W. (2008). Human resource management (10th ed.). Prentice Hall, NJ: Pearson

Selection
The process of choosing from a group of applicants the
individual best suited for a particular position and for
the organization.
Mondy, R. W. (2008). Human resource management (10th ed.). Prentice Hall, NJ: Pearson
 Acquisition Functions
On-boarding
“… refers to the process of orienting new employees in
a manner that aids in overall retention. This process
focuses on helping employees to integrate easily their
new workplace, get them familiarize with the culture,
understand the job function…So that the new hires can
be rapidly operational and productive”
www.humanresourcesmba.net
 Stimulation Functions
Compensation and benefits
“Compensation and benefits refers to the
compensation/salary and other monetary and non-
monetary benefits passed on by a firm to its employees.
It helps to keep the workforce motivated. It helps give
benefits to employees based on their performance and
actions and brings the best out the employees at
workplace”
 Stimulation Functions
Motivation
Motivation is the strength of the people to make them
able to choose specific work, to stay and work hard in
the given position.
 Stimulation Functions
Health and safety
Health and safety with the aim to prevent workplace
accidents, injuries and diseases, and outlines
consequences.
This includes, providing appropriate training for
handling potentially dangerous equipment and/or
material, informing employees of potential dangers in
the workplace, and setting up safe work practices.
 Development Functions
Training
Training is a process that tries to improve skills or add
to the existing level of knowledge so that the employee
is better equipped to do his present job or to mold him
to be fit for a higher job involving higher
responsibilities. It bridges the gap between what the
employee has and what the job demands.
 Development Functions
Performance appraisal
 Evaluation of an individual employees.
 Determination to the strengths and weakness of
staff
 The purpose of this exercise is to lead to
improved performance, award/reward, incentives
for best performances.
 Development Functions
Career management
Career management is concerned with the provision of
opportunities for people to develop their abilities and
their careers in order to satisfy their own aspirations
and to ensure organizational needs.
Conclusion