Nature and Scope

of HRM
 Introduction
 Meaning & Definition of HRM
 Scope of HRM
 Differences between PM & HRM
 The Nature of employment relationship
 HRM-Functions & Objectives
 Evolution of HRM in India
 Why Study HRM?
Introduction
 Challenges faced by organizations
 Global competitiveness – implications on HR
 Work force diversity
 Ethical issues
 Advances in technology and communication
 Sensitive approach to environment
 Shift in employees need for meaningful work
What is HRM?
•HRM is concerned with the people’s dimension
in the organization
•Facilitating the competencies and retention of
skilled force
• Developing management systems that
promote commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.
Definition
•HRM refers to acquisition, retention, motivation and
maintenance of Human Resources in an organization.

•HRM is the planning, organising, directing & controlling

of the procurement, development, compensation
integration, maintenance and separation of human
resources to the end that individual, organizational and
social objectives are accomplished.
 Scope of HRM
Prospects
of HRM
Nature of
HRM
 Very Vast
 Covers all major
activities in the
Industrial working life of a
Relations Employee
Hiring worker
HRM
-from time an
individual enters
Employee Employee
into an
Maintenance &
Executive
organization until
Remuner
ation
he or she leaves
Employee
Motivation comes under the
purview of HRM
Differences between PM &
HRM Dimension Personnel Management Human Resources Management

1. Employment Contract Careful delineation of written Aim to go beyond contract

contracts
2. Rules Importance of guiding clear rules Can do outlook, impatience with
rule
3. Behaviour referent Norms/customs/practices Values/mission

4. Managerial task Monitoring Nurturing

5. Management Role Transactional Transformational leadership

6. Communication Indirect Direct

7. Conflict handling Reach temporary truce Manage climate & culture

8. T&D Controlled access to courses Learning organization

9. Focus of attention for Personnel procedures Wide ranging cultural, structural

interventions & personnel strategies
10. Shared interests Interests of the org. are Mutuality of interests
uppermost
11. Key relations Labour customer
management
12.Guide to mgmt procedures Business needs
action
13.Labour Collective Towards individual
management bargaining contracts
contracts
14. Job design Division of labour teamwork

15.pay Job evaluation Performance

related
16.Managerial Negotiation facilitation
skills
17.Nature of Pluralistic unitarist
relation
The Nature of the Employment
Relationship
 Functions
Functions of HRM include:
• Facilitating the retention of skilled and competent
employees
• Building the competencies by facilitating continuous
learning and development
• Developing practices that foster team work and
flexibility
• Making the employees feel that they are valued and
rewarded for their contribution
• Developing management practices that endanger high

commitment
• Facilitating management of work force diversity and
availability of equal opportunities to all.
 Functions of HR

MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
Planning Staffing
Development
Organising
Compensation
Directing
Motivation
Controlling Maintenance
Integration
Emerging Issues
Operative functions of HR

STAFFING Job analysis, HRP, Recruitment,

Selection, Placement, Induction,
Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

Job design, Work scheduling, Job

COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
Operative functions of HR (contd.)

Health, Safety, Welfare,

MAINTENANCE Social security

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation, Collective
bargaining

EMERGING HRIS, HR audit, HR scorecard,

International HRM, Workforce
ISSUES
Diversity
Objectives of HRM
 Societal objectives
To be ethically & socially responsible to the needs of
the society while minimizing the negative impact of
such demands upon the organization
 Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
 Functional objectives
To maintain the department’s contribution at a level
appropriate to the organization’s needs
 Personal objectives
To assist employees in achieving their personal
goals in a manner that their personal goals enhance
the individual’s contribution to the organization
HRM and 3 P’s
• People – core strength of an organization
Any resource can be replaced but not HR
• Processes – evolve over a period of time
IT enabled environment facilitates engineering
effortlessly
• Performance – the pillars of performance are
people and IT
Organizational performance in terms of value
creation and return on investment
 EMERGING TRENDS TO HRM
ERA 1850 TO 1900 1900 TO 1940 1940 T0 1960 1960 TO 1980 1980 TO 1995 1995 onwards

TECHNOLOGY INFORMATIO
REVOLUTION NAGE &
INDUSTRIALISATIO CORPORATE RISE OF MNC’S GLOBAL
INDUSTRIAL N GROWTH LINKAGE
REVOLUTION COMPANY
BUSINESS COLLECTIVE CHANGING MIX PROFESSIONAL STAKEHOLDER INTELLECTU
CHANGE BONDED LABOUR UNIONIZATION OF WORK FORCE WORKFORCE IN BUSINESS AL ASSET

CHANGE IN LABOUR INDUSTRIAL PERSONNEL PEOPLE STRTEGIC

HR FUNCTION RELATION RELATION MANGEMENT MANGEMENT HRM HRM
END BIRTH OF MASS PRODUCT & CUSTOMER CUSTOMER VALUE
RESULTS PRODUCTS PRODUCTION MARKET SATISFACTION & DELIGHT & ADDITION
ORIENTATION QUALITY PRODUCTIVITY
 Evolution of HRM in India
 Welfare (1920s-1930s)

 Administration (1930s-
1940s)

 Employee relations (1940-

1960s)

 Functional expertise (1970s-

1980s)

 Business partner / player

(1990s)
Why Study HRM?
 Taking a look at people is a rewarding
experience
 People possess skills, abilities and aptitudes
that offer competitive advantage to any firm
 No computer can substitute human brain, no
machines can run without human intervention
& no organization can exist if it cannot serve
people’s needs.
 HRM is a study about the people in the
organization-how they are hired, trained,
compensated, motivated & maintained.
M
MODELS OF HRM
1. FOMBRUN,TICHY & DEVANNA
MODEL OF HRM
2. HARVARD MODEL OF HRM
3. GUEST MODEL OF HRM
4. WARWICK MODEL OF HRM
5. STOREY MODEL OF HRM
FORBRUN, TICHY &
DEVANNA MODEL OF HRM
Fombrun, Tichy & Devanna
Harvard
Guest
Guest
HRM
Storey
Storey
Competitive Challenges and
HRM
 Key 1: Activity
 Key 2: Availability.
 Key 3: Attention
 Key 4: Accessibility.
 Key 5: Accountability
 Key 6: Attitude.
 AREAS OF ASSESSMENT
PEOPLE MANUFACTURING TECHNO CORE-
LOGY INFRASTRUT
URE
CULTURE PRODUCTION ERP OR R&D
SCHEDULING BPR
SKILL DISTRIBUTION NETWOR
KING
TRAINING CHAIN WEBSITE FINANCIAL

KNOWLED MANAGEMENT INTRANE SYSTEM

GE T
MANAGEM INVENTORY SECURU CRM
 CASELET:HRM &
 TECHNOLOGY
I’ve been to, roughly, a gazillion concerts.
 I’ve crowd surfed. I’ve sang along until I was hoarse. I’ve paid $9 for
Bud Light (Bud “Flavored Water” Light!).
 See that dot in the very back? That could have been me. Sigh.
 So, you can imagine my delight when, Saturday, I got an e-mail alert on
my iPhone that Pearl Jam, a completely awesome band I’ve never seen
live, was going on tour. And tickets were going on sale the next day!
 I set my alarm to wake me up early (no easy feat on a Sunday, I might
add) so I could get tickets. When the clock struck 9, I was already
poised over my keyboard, my credit card in hand.
 And there were no tickets available.
 I expected the concert to sell out quickly, but I thought I’d at least be
able to get nosebleed seats.
 I checked the e-mail that I received the previous day. It did indeed say
“Pearl Jam Tickets On Sale Tomorrow!” Problem was, the e-mail was
sent Friday. I just didn’t receive it until Saturday.
Human Resources and Technology
 Technology is great, especially for human resources. You
can recruit through Facebook and LinkedIn. You can
check out possible job candidates by looking at their
online profiles. And you can do it all on your laptop while
sitting on the beach of Turkes and Caicos (seriously,
dude, stop doing work on your vacation and relax a bit!).
 That said, technology should not replace basic human
instinct and intelligence.
 Maybe a job applicant’s online profile looks great, with all
sorts of impressive details. But, if when you call in that
person for an interview and he shows up 20 minutes late
and is disheveled, you should trust your instinct that this
person might not be right for the job.
 Or, maybe you were expecting a call from a job applicant,
but there were no messages. Don’t write the person off
right away. Did you check your voicemail? Maybe your
inbox was full and there was no room for new messages.
 And if I had just read my e-mail instead
of  just skimming the headline and
trusting my iPhone to alert me to new
mail when it comes in, I could have had
Pearl Jam tickets in my hand right now.
 Q:DISCRIBE THE IMPORTANCE OF
TECHNOLOGICAL IMPACT ON HRM?
 Q:WHERE WERE THE PROBLEM
LYING IN THIS CASE
TECHNOLOGY HELPS IN
 HR:PERSONAL DATA MANAGEMENT
 PAY ROLL ACCOUNTING
 PERFORMANCE MANAGEMENT
 BENEFIT MANAGEMENT AND
PLANNING
 EMPLOYEE RECORD KEEPING
 WRITING JOB DESCRIPTION
 TRAINING
 TECHNOLOGY OUTSOURCING
TECHNOLOGICAL
APPLICATION FOR HR
 APPLICATION SERVICE PROVIDER
 WEB PORTAL
 PCs AND HIGH-SPEED ACCESS
 STREAMING DESKTOP VIDEO
 E-PROCUREMENT
 INTERNET AND NETWORK MONITORING SOFTWARE
 BLUETOOTH
 ELECTRONIC SIGNATURE
 ELECTRONIC BILL PRISENTATION & PAYMENT
 DATA WAREHOUSES AND COMPUTERISED
ANALYTICAL PROGRAM
WORKFORCE DIVERSITY
 GENDER BASED
 CULTURAL BASED
 GENERATION BASED
 SKILL BASED
 SOCIAL CATEGORY DIVERSITY
 INFORMATIONAL DIVERSITY
 VALUE DIVERSITY
MANAGING WORKFORCE
DIVERSITY
 PROVIDE STRONG LEADERSHIP
 ASSESS THE SITUATION
 PROVIDE DIVERSITY TRAINING &
EDUCATION
 CHANGE CULTURE AND
MANAGEMENT SYSTEM
 EVALUATE THE DIVERSITY
MANAGEMENT PROGRAM
MANAGING GENDER
BIASNESS
Give special consideration
Don’t offer
sympathy

Check male harassment

Give no
concessions
Identify it
Accept
Ensure equal maternity
treatment Open channel for complaint

Punish the errant

Promote productivity

Maternity
Paternity Flexible
Chart a course to the leave
leave Work options
top
Day care Part time work Alternate day Work from
 Managing cultural diversity
Pre – departure orientation
• Sense of self and spaces AWARENESS
• Food & eating habits
Understanding logic of different
• Verbal & non-verbal Communication culture
• Relationship
• Values & norms
• Belief & attitude
VALUING DIFFERENCES
• Work motivation and practices
Wanting to blend differences into
• Mental processes & learning
An effective synthesis

REALISATION
Familiarization trip Recognizing that the differences
In others are also present in you
Training in new country

Training on return
Cross cultural competencies
Motivation, knowledge, understanding, attitude, skills

Analysis of organization Organization & individual Equity of customer Positive

& communication Adaptations & changes service Interaction for
WORKLIFE BALANCE
 FLEXIBLE WORKING
1. FLEXITIME
2. FLEXIPLACE
3. PART-TIME WORK
4. JOB-SHARING
5. V-TIME
6. SABBATICALS
7. CAREER BREAK SCHEME
 Managing Protean Careers
 The protean career is driven by the person, not the
organization, based on individually defined goals,
encompassing the whole life space, and being driven
by psychological success (rather than) objective
measures of success such as pay, rank or power. It is
a career in which the person is (1) values driven in the
sense that the individual's personal values provide
the guidance and measure of success for the
individual's career, and (2) self-directed in personal
career management -having the ability to be adaptive
in performance and learning demands."
TYPES OF CAREER
ANCHOR
 AUTONOMY/INDEPENDENCE
 SECURITY/STABILITY
 ENTREPRENEURIAL CREATIVITY
 PURE CHALLENGE
 TECHNICAL / FUNCTIONAL
COMPETENCIES
 GENERAL MANAGERIAL COMPETENCIES
 SERVICE OR DEDICATION
 LIFESTYLE
 SELF-INSIGHT