01 Introduction to HRM

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Introduction to Human Resource Management

MBA, Winter 2010

Ace Institute of Management


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What do we basically need to run an organization?


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Please speak up..

Money can be raised. Equipment & technology well these things

can be duplicated. Human capital in fact is the only area wherecompanies can really differentiate themselves.

We can buy more beautiful and efficient aeroplanes, we candevelop more sophisticated computer systems, but the differencebetween failure and success will be determined by the ability tocreate the service mindedness, the professionalism and themanagement capabilities in our people.

What do you think is the edge that Ace Institute of Managementhas over many other academic institutions in the country?


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Since humans are the key determinants of organizational success,managing people properly is one of the most criticalresponsibilities of management.

This leads to a discipline commonly referred to as HumanResource Management.


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What is Human Resource Management, basically?

Human Resource Management (HRM) is a general term

used to describe a variety of functions aimed ateffectively managing an organization's employees or"human resources"

HRM professionals oversee the "people" side of anorganization including compensation and benefits,career development, training, hiring, and many otherfunctions.

The goal of HRM is to assist organizations meet theirobjectives by attracting and retaining qualifiedemployees, and managing them effectively whileensuring that the organization complies with all

appropriate labor laws.


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HRM Components

ACQUISITION HR Planning Recruitment Selection Socialization

DEVELOPM

ENT

Training Development Career

Management

MOTIVATION

Job Design Performance

Evaluation Compensation

Management

MAINTENANCE

Safety & Health

Employee/Labor Relations


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Human Resource Management

PEOPLE ARE NOT RESOURCES


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I certainly would not feel good about these. Would you?

We have five resources on that project. Four resources are being assigned to the new venture.

We are hiring two more resources this quarter.

A resource can be measured, divided, moved, sold, exploited,

traded.

Would a person like to be measured, divided, moved, sold,exploited and so on?

Calling people "resources" objectifies them. It implies having orneeding a certain control over them. It implies currency: I'll giveyou one resource, you give me two.

We are humans. Are we objects? Can others truly control us?


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People are more than their monetary value

People these days are really smart and independent. Theyunderstand their own value. And it is their value that theyare offering to the organization.

They are perfectly capable of relocating this value, i.e.,themselves, right out of an organization and over to acompetitor.


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The actual resource is peoples willingness to dedicate theirenergies on the organizations behalf, for its betterment.


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So whats the bottom-line?

Treating people more as humans than as resources

An optimal fit between individual and organizational goals

Win win situation

Documents

01 Introduction to HRM