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HRM/ Personnel Mgmt/ Manpower Mgmt/

Personnel Administration/ Staff Mgmt etc.


Acc to Flippo, HRM is “the planning, organizing, directing & controlling of the
procurement, development, compensation, integration, maintenance &
reproduction of human resources to the end that individual, organizational &
societal objectives are accomplished.”

Acc to L.F.Urwick,” Biz Houses are made or broken in the long run not by
markets or capital, patents or equipment but by men.”

It is the process of binding ppl & organizations together so that the objective
of each are achieved.

Of all the resources Man Power is the only resource which does not depreciate,
with the passage of time.

Term HR is wider than Personnel. HR includes all the dynamic components of all
the ppl @ all levels in the org whereas Personnel means the employees walking in
the organization.
Characteristics:

 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
 Nervous System
Importance of HRM
 Significance of an Enterprise
-Attracting & retaining the required talent.
-Developing the necessary skills & Right attitude through
Training, Development & Performance Appraisal.
-Utilizing effectively the HR
 Professional Significance
-Providing max opportunities for Personnel Development of
each employee.
-Maintaining healthy relationship among individual.
-Allocating Work properly.
 Social Significance
-Providing suitable employment, thus satisfaction to people.
-Maintaining healthy relationship among individual.
-Eliminating waste of HR.
 National Significance
-Effective management of HR helps to speed up the
process of economic growth which, in turn, leads to higher
standards of living & fully employment.
Scope of HRM
Indian Institute of Personnel Mgmt has described the scope of
HRM into the following aspects:

 The Labour/ Human Resource Aspect


Concerned with Manpower Planning, Recruitment, selection,
Placement, Induction, Transfer, Promotion, Demotion, Training &
Development, Remuneration, Incentives, Productivity etc.
 The Welfare Aspect
Concerned with working conditions & amenities as canteens,
Crèches, rest rooms, Lunchrooms, Housing, Transport, Recreation &
Cultural facilities.
 The Industrial Relations Aspect
Concerned with the Union-Management relations, Joint Consultation,
Negotiating, Collective Bargaining, Grievance Handling, Settlement
of Industrial disputes etc.
Objectives:

 To help the organization attain its goals by providing well-trained &


well motivated employees.
 To employ the skills & knowledge of employees efficiently &
effectively.
 To enhance job satisfaction & Self Actualization of employees.
 To establish & maintain productive working r/nship among all
members of the org.
 To bring max individual development by providing opportunities for
training & advancement.
 To develop & maintain a Quality work life.
 To help maintain ethical policies inside & outside the organization.
 To secure the integration of all the individuals & group goals with
those of an organization.
Functions of HRM
1. Managerial Function
A. Planning
B. Organizing
C. Directing
D. Controlling

2. Operative Functions
A. Procurement
(a) Job Analysis (b) HR Planning
(c) Recruitment (d) Selection
(e) Placement (f) Induction/ Orientation
B. Development Function
(a) Performance & Potential Appraisal (b) Training
(c) Executive Development (d) Career Planning & Development

3. Compensation
A. Job evaluation B. Bonus
C. Wage & Salary Administration

4. Integration Function

5. Maintenance Function
Activities of HRM
HR department has to perform various functions and activities. Some of
them are mentioned as follows:
 Recruitment Mgmt
 Work Force Mgmt
 Induction Mgmt
 Training Mgmt
 Performance mgmt
 Compensation & Benefits
 Attendance Mgmt
 Leave Mgmt
 Benefits Mgmt
 Over Time Mgmt
 Pay Slip Distribution
 Time Sheet Mgmt
 Employee Information
 Grievance Redressal
 Employee Survey
 Exit Interviews & Process
 Health & Safety Mgmt
Managerial Skills

The HR manager should possess all the qualities required of a manger for
his effective functioning.However,the HR manager should possess HR skills
in greater degrees as he is to deal more with the human relation matters.
To be specific, the qualities required of an effective personnel or HR
manager are as follows:

 He should have human approach to human problems. His attitude towards


the operative workforce should be sympathetic in dealing with their
problems.
 He should be alert mentally and at no time, he should be caught unaware.
 He should be competent to take quick decisions.
 He should be honest in dealing with the employees so as to leave no scope of
any doubt in the minds of the employees about his integrity.
 He should have patience and should not lose temper easily.
 He should not depend upon his formal authority too much.
 He should be good leader so as to guide the subordinates towards
organizational goals.
 He should have a sense of social responsibility so as to help his employees
to discharge their social obligations to the various segments of society.
 He should be a good communicator and should be courteous in dealing with
workers, trade union leaders and members of the press.
Managerial Roles

Though managing is the job of every manager in the


organization, yet the personnel manager has a special role to
play.
Some of the imp roles, in addition to the managerial and
operative functions , are as follows:

 Policy Initiation
 Advisory role
 Linking Pin Role
 Representative Role
 Decision-Making Role
 Mediator Role
 Leadership Role
 Welfare role
 Research Role
Policy Initiation
The HR manager helps the top management in the formulation
of policies on wage and salary administration, transfer,
appraisal, welfare activities, working env etc.
Advisory role
Line managers are generally confronted with a variety of
problems in their day to day operations. In all such matters, the
HR manager can offer useful advice b/c he is familiar with
personnel policies and practices, Labour agreements, Labour
laws, etc.
Linking Pin Role
The HR manager gives authentic information to the trade union
leaders regarding the personnel policies and programmes of the
enterprize.He also conveys the views of the trade union leaders
to the higher management.
Representative Role
The HR manager generally acts as a spokesman of the top
management of the company and communicates management
policies and decisions that effect ppl in the organization.
Decision-Making Role
The HR manager also plays an effective role in decision making.
For instance, he decides about the contents and duration of
training programmes for various categories of workers and
executives.
Mediator Role
The HR manger often acts as a mediator in the event of conflict
between employees, or grp of employees, superior and
subordinate etc.Thus, he attempts to maintain industrial peace
and harmony in the organization.
Leadership Role
The HR manager ensures effective communication in the
organization and influences the workers for extending their
cooperation in attainment of organizational objectives.
Welfare Role
As welfare officer, the HR manager is concerned with provision
of canteen, crèches, transport, hospital and other welfare
services for the benefit of workers and their family members.
Research Role
On the basis of records, The HR manager undertakes research
in various personnel areas such as absenteeism, Labour turnover
etc. and suggest suitable measures for improvement to the top
management.
Organization & Responsibility of HR Manager

An organization structure represents the authority and


responsibility relationships b/w the various positions in the
organization by showing who reports to whom.

 Line Organization
 Line & Staff Organization
 Functional Organization
Line Organization

 In line organization, authority flows in a straight line from


top to bottom of the org. The HR manager has direct control
over the employment officer, training officer, wage officer
and welfare officer and each officer has direct authority
over those working under him. The HR manager has line
authority in his department and he is directly accountable to
the chief executive.
Line & Staff Organization

In Line & Staff Organization, The HR manager is considered


a staff specialist. He is expected to provide expert advice on
personnel matters wherever it is sought by other
departments. As a specialist, his role is advisory. He does not
have line authority over the other departments as shown in
fig.5.
For ex, the line managers such as production and marketing
mangers may seek the advice of personnel managers on
advance increment, transfer, promotion, etc. of their staff.
But this advice is not binding on them as the personnel
manager holds the staff or advisory position. However the
HR manager enjoys line authority over the subordinates in his
department.
Functional Organization
 As a functional specialist, he will have authority on other
departments wherever personnel policies and activities are involved.
Being a functional specialist, he will provide expert advice and
service to other departments so far as personnel functions are
concerned as shown in Fig.3

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