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What does it mean HRM?

Organizations must develop functions to adapt to


their environment
The management of personnel is one of these
functions
The “cycle of personnel”

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The “cycle of personnel”
 Planning
 Recruiting & Selection
 Career planning
 Appraisal
 Rewarding
 Performance
 Development & Training

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What does it mean HRM?
On the one hand, HRM is no more than a more
modern name for “personnel management”.
On the other hand, the term is equally widely
used to denote a particular approach to the
management of people which is clearly distinct
from the “personnel management”. It also
suggests a distinctive philosophy towards carrying
out people-oriented organisational activities.

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HRM function has four key
objectives:
Staffing objectives
Performance objectives
Change-management objectives
Administration objectives

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Personnel vs. HRM
Personnel management HRM
Time and planning Short term, reactive, “ad Long term, proactive,
perspective hoc”, marginal strategic, integrated
Psychological Compliance Commitment
contract
Control system External controls Self-control

Employee relations Pluralist, collective, low Unitarist, individual,


perpective trust high trust
Preferred structures Bureaucratic/mechanistic, Organic, devolved,
centralised, formal roles flexible roles
Roles Specialist/professional Integrated into line m.

Evaluation criteria Cost minimization Maximum utilisation


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Staffing Change-management

Performance . Administration

HRM

Line managers
HR specialists

Consultants
Subcontractors
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HRM in a small-scale unit
Owner/Manager

Production Sales Office Accountant


Manager Manager Manager

Personnel
Assistant

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HRM in a large-scale unit
Chairman and Managing Director

Director Director Director Director Director


Prod. Finance Personnel/HRM Mktg. R&D

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Functions of HRM
Functions of HRM

Managerial Functions Operative Functions


Planning Employment
Organizing HRD
Directing Compensation
Controlling Human Relations
Industrial Relations
T and D
Recent Trends in HRM
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HRM as a Central Sub-System

Finance Marketing Materials

Technology HRM Information

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Strategic HRM
The linking of human resources with
strategic goals and objectives in order
to improve business performance and
develop organizational culture that
foster innovation and flexibility

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Human Resource Strategy…
The intention of the corporation
both explicit and covert, towards
the management of its employees,
expressed through philosophies,
policies and practices (Tyson)

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Org. Str. HR Str.

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Org. Str. HR Str.

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Org. Str. HR Str.

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Org. Str. HR Str.

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Org. Str. HR Str.

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Diagnostic Measures of HR
Effectiveness
HR expense per employee
Compensation as a percent of
expenses
HR department expense as a
percent of total expenses
Cost of hires
Turnover rates
Absenteeism rates
Worker’s compensation per
employee
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