Nature and Scope of HRM

Meaning

& Definition of HRM Scope of HRM Why Study HRM? Importance of HRM as a function Differences between PM & HRM HRM-Functions & Objectives Evolution of HRM in India

What is HRM?
HRM is concerned with the people 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

Definitions
HRM refers to acquisition, retention, motivation and maintenance of Human Resources in an organization. Organizations methods and procedures for managing people to enhance skills and motivation. The policies and practices involved in carrying out the people or human resource aspects of a management function, including recruiting, screening, training, rewarding, and appraising 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

Synonymous terms for human resource management:

Personnel management Human capital

People management Human relations management

Human resource development

 Why

are we studying HRM? Being managers why should we know HR concepts?

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 peoples needs HRM is a study about the people in the organization-how they are hired, trained, compensated, motivated & maintained

HR aspects of a Managers Job

Conducting job analyses (determining the nature of each employees job) Planning manpower needs and recruiting job candidates Selecting job candidates Orienting and training new employees

Contd.

Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Building employee commitment

Contd.

Understanding employment laws Knowing employee health and safety issues Handle grievances and employment relations

Being managers you have to avoid few mistakes

Hire the wrong person for the job Experience high turnover Your people not doing their best Waste time with useless interviews Have your company sued for discriminatory actions

Contd.

Have your company fined for unsafe practices Some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your departments effectiveness Commit any unfair employment practices

Importance of HRM as a function

Challenges before HR Globalization Work force diversity Legal and ethical issues Advances in technology and communication Shift in employees need for meaningful work

Scope of HRM
Prospects of HRM Nature of HRM

Industrial Relations

HRM

Employee Hiring

Employee Maintenance

Employee Motivation

Employee & Executive Remuner ation

Very Vast Covers all major activities in the working life of a worker from the time an individual enters into an organization until he or she leaves

Differences between PM & HRM

Dimension Personnel Management 1. Employment Contract 2. Rules 3. 4. 5. Behaviour referent Managerial task Management Role Careful delineation of written contracts Importance of guiding with clear rules Norms/customs/practices Monitoring Transactional

Human Resources Management Aim to go beyond contract Can do outlook, impatience with rule Values/mission Nurturing Transformational leadership

6. Communication Indirect Direct 7. Conflict handling Reach temporary truce Manage climate & culture 8. Training & Development Controlled access to courses Learning organization 9. Focus of attention for interventions Personnel procedures Wide ranging cultural, structural & personnel strategies Interests of the organisation Mutuality of interests are uppermost

10. Shared interests

Functions of the HR Manager

Carries out 3 distinct functions:1. Line function 2. Coordination function 3. Staff function

Contd.

A line function
The HR manager directs the activities of

the people in his or her own department and in related service areas (like the plant cafeteria).

Functions of the HR Manager

A coordinative function
HR managers also coordinate personnel

activities, a duty often referred to as functional control.

Functions of the HR Manager

Staff (assist and advise) functions

Assisting and advising line managers is the

heart of the HR managers job.

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 FUNCTIONS Planning Organising Directing Controlling OPERATIVE FUNCTIONS Staffing Development Compensation Motivation Maintenance Integration Emerging Issues

HR-Managerial Functions

Planning What should I achieve? Goals and standards

What are the binding ties and

methods? Rules

and procedures How do I see the future? Forecasting Organizing What work? Tasks Where? Departments Who should do what? Delegation Who decides & How? Authority& communication What are the linkages? Coordinating

Staffing
Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing

Leading/Directing
Getting the job done-towards organizational

goals Morale Motivation

Controlling
Setting standards Comparing actual performance to standards Corrective action

Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits

DEVELOPMENT

COMPENSATION & MOTIVATION

Operative functions of HR (contd.)

MAINTENANCE
Health, Safety, Welfare, Social security Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining HRIS, HR audit, HR scorecard, International HRM, Workforce Diversity, Work-life balance

INTEGRATION

EMERGING ISSUES

Line Managers HRM Responsibilities

Placing the right person on the right job Starting new employees in the organization (orientation) Training employees for jobs that are new to them Improving the job performance of each person Gaining creative cooperation and developing smooth working relationships Interpreting the firms policies and procedures Controlling labour costs Developing the abilities of each person Creating and maintaining department morale Protecting employees health and physical condition

Line and Staff Aspects of HRM

Line

manager

A manager who is authorized to direct the

work of subordinates and is responsible for accomplishing the organizations tasks.

Staff

manager

A manager who assists and advises line

managers.

Role of HR Executives

Service Provider (Head hunting, pay rates, labor laws) Executive (Recruitment, Compensation) Facilitator (Training, and Development activities within company, Oversee other managers) Consultant (Managers seek advice of HR specialists) Auditor (Ensure optimum and effective use of HR)

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 departments contribution at a level appropriate to the organizations needs

Personal objectives
To assist employees in achieving their personal goals in a manner that their personal goals enhance the individuals contribution to the organization

Objectives and Scope of HR

To ensure effective utilization of the human resources To establish and maintain an organizational structure To secure integration to the individuals and organization by reconciling individual group goals To generates maximum development of individuals groups To recognize and satisfy individual needs and group goals To maintain high morale and better human relations To develop and maintain a quality of work life To establish and maintain productive self-respecting working relationships

Evolution of HRM in India

Welfare (1920s-1930s) Administration (1930s- 1940s) IIPM and NILM Employee relations (1940-1960s) Functional expertise (1970s-1980s) Business and Strategic partner (1990s and onwards) ASPA to SHRM

HRs Changing Role

Protector and Screener

Change Agent

Strategic Partner

The Changing Role Of HR Management

Changes in environment HR managers to take on new responsibilities HR functions more strategic

The Changing Role Of HR Management

Strategic Planning
The companys long-term plan for how it

will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. 3 questions in strategic planning

Current business position Future business position expected to be How to get to expected future business position

The Changing Role Of HR Management

Strategic HRM
Formulating HR policies and introducing

practices that produce staff competencies and behaviors that the company needs to achieve its strategic goals.

The Changing Role Of HR Management

Strategic HRM
HR managers today are more involved in

partnering with their top managers in both designing and implementing their companies strategies Top management wants to see, precisely, how the HR managers plans will make the company more valuable.

The Changing Role Of HR Management

Outsourcing HR Activities
Computer-based systems easy to

outsource HR activities by providing access to service providers to the companys HR information database E.g. Payroll, Benefits, Wellness Programs and Employee Training