Professional Documents
Culture Documents
Chapter
EXCEL BOOKS
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ANNOTATED OUTLINE
Introduction
Organisations have to provide a healthy work climate in order to get the best out of people. To utilise the capabilities of people fully, you need competent leadership willing to recognise, reward and nurture talent at all levels. This is where human resource managers play a critical role by bridging gaps between employee expectations and organisational requirements by adopting appropriate human resource strategies and practices. HRM, in short, is the art of procuring, developing and maintaining competent workforce to achieve the goals of an organisation in an effective and efficient manner.
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Features
Pervasive force Action oriented Individually oriented People oriented Future oriented Development oriented Integrating mechanism Comprehensive function Auxiliary service Inter-disciplinary function Continuous function
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Skills: The individual abilities of human beings to perform a piece of work. Resource: The stock of assets and skills that belong to a firm at a point of time. Capability: The ability of a bundle of resources to perform an activity; a way of combining assets, people and processes to transform inputs into outputs. Core competencies: Activities that the firm performs especially well when compared to its competitors and through which the firm adds value to its goods and services over a long period of time. Competitive advantage: It comes from a firm's ability to perform activities more distinctively and more effectively than rivals. To attain competitive advantage, firms need to add value to customers and offer a product or service that cannot be easily imitated or copied by rivals (Uniqueness). Value: Sum total of benefits received and costs paid by the customer in a given situation.
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Scope of HRM
HRM mainly covers three broad areas
Personnel aspect Welfare aspect Industrial relations aspect
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Objectives of HRM
HRM aims at achieving organisational goals, meet the expectations of employees; develop the knowledge, skills and abilities of employees; improve the quality of working life and manage human resources in an ethical and socially responsible manner.
Importance of HRM
From an organisational standpoint, good HR practices help in attracting and retaining talent, train people for challenging roles, develop their skills and competencies, increase productivity and profits and enhance standard of living
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Importance of HRM
attract and retain talent train people for challenging roles develop skills and competencies Good HR Practices help promote team spirit develop loyalty and commitment increase productivity and profits improve job satisfaction enhance standard of living generate employment opportunities
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Finance Subsystem
Marketing Subsystem
Technical Subsystem
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Functions of HRM
P/HRM
Managerial functions:
Operative Functions
Procurement Job Analysis HR planning Development: Training Executive development Career planning Succession planning Human resources development strategies Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration Incentives benefits and services Welfare Social security Collective bargaining Participation Empowerment Trade unions Employers associations Industrial relations Safety Maintenance: Health Integration: Grievances Discipline Teams and teamwork Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS Job stress Mentoring International HRM
Planning
Organising
Directing
Controlling
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Administrative expert
Employee champion
Operational focus
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EVOLUTION OF HRM
The field of HRM evolved both in India and elsewhere over a number of years to present level of sophistication and use of proactive methods The industrial revolution Scientific management Trade unionism Human relations movement Human resources approach
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Employees are the most valuable assets of an organisation. There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of employees.
The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.
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Growth in India
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1940 60 Expanding the role to cover Labour, Welfare, Industrial Relations and Personnel Administration 1970 80 Efficiency, effectiveness dimensions added Emphasis on human values, aspirations, Incremental productivity gains through human assets
Administrative
Developmental
1990s onwards
Proactive, growth-oriented
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Employee expectations
Better educated, more knowledgeable, emotionally strong and demanding workforce Demand for educated, trained, experienced and knowledgeable workers growing Understand individual differences and develop appropriate policies to meet their growing expectations.
Cont
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Cont
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