HUMAN RESOURCE MANAGEMENT

Unit 1. Human Resource Management

Its Scope, Relationship with other Social Sciences - Approaches to Human Resource Management / Inter-Disciplinary Approach
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Evolution of HRM in India

Period Developmen Outlook t Status Beginning Pragmatism of Capitalists Technical , Legalistic Emphasis Status

1920s1930s

Statutory , Welfare , Paternalism Introduction of Techniques

Clerical

1940s 1960s

Struggling for recognition Achieving sophisticatio n

Administrativ e

1970s 1980s

Professional , Legalistic , Impersonal

Regulatory , Managerial Conforming , Imposition of standards on other Functions Executive

1990s

Promising

Philosophical Human values,

Difference between Personnel Management and Dimension PM HRM HRM

Beliefs and Assumptions rules Behaviour referrant Importance of devising Norms /customs and practice Impatience with rule Values / mission nurturing

Managerial task vis-a vis monitoring labour Strategic Aspects Key relations Labour management

Customer

Line of Management Management role

Key Managers

Transactional

transformational

Personnel / IR specialists General /business /line managers facilitation Performance related

Prized management skills negotiation Key Levers Pay job evaluation (fixed

Definition :
Human resources management is managing (planning , organising , directing and controlling) the functions of employing , developing , compensating and utilising human resources , resulting in the creation and development of human and industrial relations which would shape the future policies and practices of human resource management , with a view to contribute proportionately (due to them) to the organisational , individual and social goals. - P. Subba Rao

HRM Objectives and Functions : HRM Objective 1. Societal Objective : Benefits 2. Supporting Functions Legal compliance , HRP , employee

Organisational Objectives : relations

Selection ,
3. 4. Functional Objectives : , assessment Personal Objectives : Development , Appraisal , Placement Appraisal , Placement Training and

Compensation

Nature of HRM :
1.

2.
3. 4.

5.
6. 7.

Action oriented ; People oriented ; Future oriented ; Development oriented ; Integrating mechanism ; Interdisciplinary function ; Continuous function.

Scope of HRM : 1.
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Personnel aspect : Manpower planning , recruitment , selection , placement , transfer , promotion , training and development , lay-off , productivity etc. ;

2. Welfare aspect : Working conditions , amenities such as canteen , creche , transport , housing , medical assistance , education etc. 3. Industrial relations aspect : Union management relations , joint consultation , collective bargaining , grievance and disciplinary procedures , settlement of disputes .

Importance of HRM : 1. At the enterprise level : Attract and retain best people ; Train for challenging role , develop right attitude. 2. At the individual level : Promotes team work and team spirit ; Offers growth opportunity to people ; 3. At the society level : Increase in employment opportunities ; 4. At the national level : Better utilisation of natural, physical and financial resources.

Example : Role of HR at TCS :

allocations Performance discussion performance management (domestic/overseas) for all to projects

Recruitment Technical /

The Centre
Manager Career development/ monitoring

Training (
Behavioural )

HRM as a Central Subsystem in an Enterprise

Product Subsystem HR Subsystem Finance Marketing subsystem subsystem Procurement Training Compensation

Appraisal
Rewards Technical

The Harvard Model of HRM

Stakeholders interests shareholders management Employee group consequences Government wellCommunity Unions effectiveness Situational Factors wellWorkforce characteristics business strategy and condition Management Philosophy Labour Markets / Union Task technolgy Laws and societal values

HRM policy choices employee

HR outcomes Commitment

Long-term

individual being Organisational

influence Competence HR Flow Congruence Reward system CostWork system effectiveness

Societal being

The Warwick Model of HRM

Outer Context Socio economic /Technical Political legal / Competitive Inner Context Culture /Structure Political / leadership Task technology Business outputs

Business strategy content Context Objectives Product Market Strategy and tactics

HRM Role Definition Organisation

HR output

HRM Content HR Flows Work systems Reward systems Employee relations

HRM and its Environment

Cultura l Technologic al HRM Union s Professio nal Bodies

External

Econom ic

Internal
Political legal Organisatio nal Culture and Conflict

Strategy ,Task Leadersh ip

Top 10 HR Practices

Safe, Healthy And Happy Workplace Open Book Management Style sharing information; Performance Linked Bonuses 360-Degree Performance Management Feedback System Fair Evaluation System For Employees Knowledge Sharing Highlight Performers Open House Discussions And Feedback Mechanisms