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Unit I

INTRODUCTION
TO HRM
AGENDA
 MODULE 1 ( Introduction to HRM)
1. Nature and Scope
2. Difference Between HRM and Personnel Management
3. Objectives Of HRM
4. Evolution OF HRM
5. Competitive Advantage through People
6. Competitive Challenges for HRM
7. Social Issues in HRM
8. Responsibilities For HR manager
9. Competencies of HR department
10. Image and Careers in HRM
11. Personnel policies and principals
Introduction
 How important is Human resource?
 The resources of men, money , material and
machinery are collected,, co-ordinate and utilized
through people.
 L.F. Urwick “ Business houses are made or broken in
the long run not by markets or capital, patents or
equipments but by men.
 Human resource does not depreciate.
 HR represent the quantitative and qualitative
measurement of the workforce required by an
organization.
Concept of HRM
 Organization has three basic components, People, Purpose,
and Structure. HRM is
 HRM is the study of activates regarding people working in
an organization.
 It is a managerial function that tries to match an
organization’s needs to the skills and abilities of its
employees.
 HRM may be defined as a set of policies, practices and
programmes designed to maximise both personal and
organisational goals.
 According to Flippo “ HRM is the planning, organizing ,
directing and controlling of the procurement, development,
compensation, integration, maintenance and reproduction of
HR to the end that individual, organizational and societal
objectives are accomplished.
History Of HRM

1. The industrial Revolution:


 Rapid mechanization
 The place of work shifted from residence to
factory and the employer lost personal touch
with his employees.
 Increased mechanization made the job
routine and monotonous.
 It became necessary to appoint a separate
person who could handle labour problems.
 Labours were not treated appropriately.
History Of HRM
2. Trade Unionism
 Workers formed their unions to improve their lot.
 Management could be forced to redress their grievances.
 Strikes,slowdowns,walkouts,boycotts

3. Scientific Management:
 F.W. Taylor developed four principles of scientific
management:
 Development of a true science
 Scientific selection and training of workers
 Friendly co-operation between management and workers.
 Development of every worker to his fullest potential
History Of HRM
4. Industry Psychology:
 Matching of employee skills with jobs

 Advances took place in selection, placement, testing,


training etc.
5. Human relations movement:
 Experiments and subsequent research focused
attention on the attitudes and feelings of the workers
and their influence on productivity.
 Inter- personal relations should be improved to
realize fuller potential of individuals and groups.
History Of HRM
6. Behavioral Sciences:
 This era led to the development of new techniques
of motivation and leadership.
7. Human Resource Specialist and Employee
welfare:
 It is not only concerned now with recruitment,
selection and training of employees.
 It manages employee benefit programme and
industrial relations system
Genesis and Growth of HRM In India

 Origin of HRM – Concern for welfare of factory workers


during the 1920s
 The Royal Commission on Labour recommended in 1931
the appointment of labour officers in order to protect the
workers from the evils of jobbery and indebt ness etc.
 Welfare officer was concerned mainly with the recruitment
and welfare of workers.
 After independence the factories act 1948 –Made it
mandatory for factories employing 500 or more workers to
appoint welfare officers.
 Act prescribed qualification and duties of welfare officers.
Genesis and Growth of HRM In India
 Appointment of welfare officers remained
symbolic.
 Welfare officers helped in assisting the factory
in maintaining industrial discipline.
 Rising expectations- welfare needs increased.
 Trade unions increased.
 Profession bodies like Indian Institute of
Personnel Management ( IIPM) , Kolkata and
the National Institute of Labour Management (
NILM) Mumbai -1950
Genesis and Growth of HRM In India
 !960- Personnel function widened
- Labour welfare
- Industrial relation
- Human Resource administration
 Rapid industrialization and PSU accelerated
the growth of HRM.
 1970- concern for welfare shifted towards
higher efficiency
 1980- Technology and environmental issues
HRM got importance
Genesis and Growth of HRM In India
 Two professional bodies IIPM and NILM
merged to form National institute of Personnel
Management ( NIPM) at Kolkata
 1990- Overwhelming role of human factor in
industry has been realized
 Focus on human values and a philosophical
approach .
 HRM- From Support- Strategic function
Characteristics of HRM
 Comprehensive function
 People oriented
 Action Oriented
 Individual Oriented
 Development Oriented
 Pervasive Function
 Continuous Function
 Future oriented
 Challenging Function
 Science as well as art
 Staff function
 Young discipline
 Interdisciplinary
Difference Between Personnel
Management And HRM
Objectives Of HRM
 Help the organization attain its goals by providing
well trained and well motivated employees.
 To employee the skills and knowledge efficiently and
effectively i.e. to utilize human resources effectively.
 To enhance job satisfaction and self actualization of
employees by encouraging and assisting every
employee to realize his/her full potential.
 Establish and maintain productive, self respecting and
internally satisfying working relationship among all
the members of the organization.
Objectives Of HRM
 Bring about maximum individual development of
members of the organization by providing
opportunities for training and advancement.
 To secure the integration of all the individuals and
groups with the organization by reconciling
individual/group goals with those of an organization.
 To develop and maintain a quality life which makes
employment in organization a desirable personal and
social situation.
 To maintain high morale and good human relations
within the organizations.
 Satisfy individual needs
Responsibilities of HR Manager

 HR MANAGERIAL FUNCTIONS :
1. Planning
2. Organizing
3. Directing
4. Controlling
 Operative Functions:
1. Procurement function:
a) Job analysis
b) Human Resource planning
c) Recruitments
d) Selection
e) Placement & induction or orientation
Responsibilities of HR Manager
 Development Function:
1. Performance and potential appraisal
2. Training
3. Executive Development
4. Career planning and development
 Compensation Function:
1. Job Evaluation
2. Wage and salary administration
3. Bonus
 Integration Function
 Maintenance function
Scope of Human Resource Management

 Indian Institute of Personnel Management


has described the scope of HRM:
1. The labour of Human Resource aspect
(manpower planning, recruitment, selection,
planning , induction, transfer etc.
2. The Welfare Aspect ( Working conditions
etc)
3. The industrial Relations Aspect
( Company’s relations with the employees)
HRM as a profession

 HRM has emerged as a distinct discipline.


 Main characteristics of a profession:
1. A specific body of organized and systemized
knowledge.
2. Prescribed academic qualifications for entry
into the profession.
3. Formal methods of training.
4. Existence of a representative professional
association.
5. Charging of fees based on service raher than
monetary gain
HRM as a profession

6. Continuous drive for progress through


members of an association.
7. Code of ethics to motivate and guide the
members towards desired goals.
 No definite academic qualification prescribed
so far.
 For welfare officers- Qualification under the
factories act.
 NIPM conducts pre –entry and post entry
training programmes
HRM as a profession
 HR specialist
 HR Manager
 Hr Executive
Challenges For HRM

 To Attract People
 To Develop People
 To Motivate
 To Keep Talented People
Building Competitive Advantage
through people
 Skilled and motivated people are the central of
every company.
 Still companies misuse human capital
 Today's scarce, sought-after strategic resource
is expertise, which comes in the form of
employees
HOW TO DO IT?
 Hierarchy has to be replaced by networks.
 Bureaucratic system into flexible processes.
 Analytical driven strategy to people oriented
strategy
 A changing view of strategic resources ( No
capital)
 A Changing view of value ( knowledge in
comparison to capital)
 A changing view of senior manager roles
( Rather than allocating money to competing
projects company must nurture its employees)
CASE-MCkinsey

 It values it employees
 Training
 Individual feedback
 Coaching
 Formal performance review from each partner
twice a year
 Providing career advice
 View from the people who have supervised
individual work
Social Issues in HRM

 Low motivation or mounting frustration


 Promotions are consolations for transfers
 Reward and punishment system
 Development of strong training system
 Continuing uncertainty
 The employment challenge
 Heritage values and culture
 interpersonal conflict
 Social Issues Relating to Education
 Creating a Business Climate of Social Responsibility
Competitive challenges for HRM

 Development of global markets


 Competitiveness in global markets through HRM
Practices
 Preparing Employees for international markets
 Meeting stakeholders needs
 Measuring performance
 Quality
 Composition of labour force
 Skills deficiencies
 Changes in employment contract and place of work
 Employee values
 Changes in employee work roles and skill
requirements
 Increased use of teams
 Changes in company structure
Competencies of HR Managers
 Business Mastery ( Join team of managers,
External relations focused on customers)
 HR mastery
 Change Mastery ( Problem Solving skills .
Innovation, creativity)
 Personal Credibility
Personnel Policies and Principles
1. Policies
 A policy is a plan of action
 A statement of intention committing the management
to a general course of action
 Is more specific and commits to a definite course of
action.
 A policy does not spell out detailed procedure by
which it has to be implemented.
 A policy should be stated in terms broad enough for it
to be applicable.
Why organizations should have policies ?

 Work involved in formulating personnel


policies – management giving deep thought t o
basic needs of both organization and
employees.
 Minimizes favoritism
 Standard of performance
 Build motivation & loyalty
 Resolves conflicts
Policy formulation
Basis of policy formulation:
a) Past practice in organization
b) Prevailing practice in rival organization
c) Attitudes and philosophy of founders of the
company.
d) Attitudes and philosophies of middle and lower
level management
e) Knowledge and experience gained from handling
counters personnel problems on day to day basis
 Policy must be stable
 Application of policy must be stable and stable
 Must reflect goals and values of a organization
Principles
 Principles is fundamental truth established by
research investigation and analysis
 Many personnel principles have been
established through practice experience and
observation.
 Principles are universal truths generally
applicable to all organization.
 Principles guide managers in formulating
policies programs, procedures and practices.

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