HUMAN RESOURCE MANAGEMENT

MEANING
HRM is a process of bringing people and organization together so that the goals of both are met. It tries to secure the best from the people by winning their wholehearted cooperation.

DEFINITION
It s the art of procuring ,developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner

FEATURES OF HRM
Action oriented Individually oriented. People oriented. Future oriented. Development oriented. Continuous function.

SCOPE OF HRM
Personnel aspect. Welfare aspect. Industrial relation aspect.

OBJECTIVE OF HRM

OBJECTIVES OF HRM
To help the org. reach its goals. To use the skills and abilities of the workforce efficiently. To provide org. with well trained and well motivated employees To increase to the fullest the employees job satisfaction . To develop and maintain quality of work life. To communicate HR policies to all employees.

EVOLUTION OF HRM
The commodity concept Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Govt. did very little to protect the workers. The factor of production concept Labour is like any other factor of prod. like money, material, land etc. workers are like machine tools.

 The goodwill concept welfare measures like safety , first aid, rest room , canteen etc will have a positive effect on workers productivity. The paternalistic concept Mgmt. must assume a fatherly and protective attitude towards employees. The humanitarian concept to improve productivity , physical, social , and psychological needs of the workers must be met.

 The human resource concept employees are most valuable assets of an org. The emerging concept employees should be accepted as partners in the progress of a company. They should have a feeling that the org. is their own.

FUNCTIONS OF HRM
MANAGERIAL FUNCTIONS OPERATIVE FUNCTIONS

MANAGERIAL FUNCTIONS
PLANNING ORGANISING DIRECTING CONTROLLING

OPERATIVE FUNCTIONS
 PROCUREMENT FUNCTIONS Job analysis HR planning Recruitment Selection Induction

 DEVELOPMENT Training Career planning HR development  MOTIVATION & COMPENSATION job design Motivation Job evaluation Performance appraisal Compensation administration Incentives and benefits

 MAINTENANCE Health and safety Employee welfare  INTEGRATION FUNCTION Grievance redressal Discipline Team and team work Employee participation Industrial relations

 EMERGING ISSUES Personnel record HR research HR accounting Stress and counseling

Difference b/w
Personnel mgmt
Its more administrative in nature , it basically deals with the employees, their payroll and employment laws. It is reactive ,it provides concerns & demands as they are presented.

HRM
It deals with the mgmt of the work force & contributes to an org. success.

It is proactive , as it pertains to the conti-nuous dev. of policies & functions for improving a company s work force.

 It is independent from the org. It motivates through rewards, bonus , compensation .

It is the integral part of a company.

It motivates through effective strategies like challenges, job creativity. HRM is in a broader sense, it focuses on building dynamic culture rather than focusing on administrating people. It develops a team of employees for an org.

Line & Staff Responsibilities

Line managers Have the final responsibilities for achieving the org. goals Have the authority to direct the work of subordinates. Staff managers They help and advise line managers in achieving the org. goals. They assist line managers in areas line recruiting, selecting , training , and compensating.

Policies
Its a principle or rule to guide decisions and achieve desired outcome(s). Types of policies: Originated policies established by top mgmt. Appealed policies formulated to meet the requirements of certain peculiar situations which have not been covered by earlier policies. (generally suggested by subordinates). Imposed policies formed under pressure from external agencies like govt. ,unions .

 General policies reflect the priorities of top mgmt. Specific policies covers issues like hiring , rewarding Written / Implied policies Implied like dress code , gentle tone while talking to customers. Written policies spell out managerial thinking on paper .

Advantages of policies
Uniformity Better control Confidence Speedy decisions Coordination device

Obstacles
Managers are reluctant to follow the guidelines. It requires constant revision , modification .

A good policy is Related to objective Easy to understand Precise Stable as well as flexible Based on facts Fair enough

Formulation of policies
Identify the need Collect data Specify alternatives Communicate the policy Evaluate the policy

Role of Personnel Manager

Administrative roles  policy making  record keeping  advisor  welfare officer  legal consultant

 Operational roles     recruiter trainer , motivator coordinator / linking pin mediator (in case of friction b/w 2 emloyees)

Strategic roles Focuses attention on how to enable ordinary employees to turn out extraordinary performance , taking care of their ever changing expectations  change agent Why to do it ? Who will do it ? What it will look like after completion ? Who else needs to be involved ? How to measure it ? How to initiate , develop and sustain it ?

Strategic partner Helps in strategy formulation and implementation.

Qualities of HR manager
Personal attribute  Intelligence.  Educational skills.  Discriminating skills ( b/w right n wrong).  Executing skills ( execute mgmt decisions with speed , accuracy.) Experience and Training. Professional Attitude .

Factors influencing HRM

External factors  ational and international economic changes. Technological changes. National culture. Industry characteristics. Regulations. Action of competitors. Action of unions.

 Internal factors Organization s size. Org. structure ( flexible or not). Business strategy. History and past practices. Top mgmt influence. Power n politics.

Evaluating HRM effectiveness

Measuring cost (value > or < cost). Measuring absenteeism rates. Measuring turnover rate. Productivity. Customer satisfaction. Early leavers(leaving after a short time with the company.)