17342220 HRMNature and Scope of Human Resource Management

7/31/2019 17342220 HRMNature and Scope of Human Resource Management

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Nature and Scope of

HumanResource Management


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Meaning and Definition

HRM is a management function thathelps managers recruit, select, trainand develop members of anorganisation.

HRM Peoples dimension


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HRM Definition

A series of integrated decisions that

form the employment relationship;their quality contributes to theability of the organisations and the

employee to achieve theirobjectives.


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HRM DefinitionIs concerned with people dimension inmanagement.Since every organisationis made up of people, acquiring their

services, developing their skills,motivating them to higher levels ofperformance and ensuring that they

continue to maintain theircommitment to the organisation areessential to achieving organisationalobjectives.


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HRM Definition

Management is the planning,orgainsing, directing and controlling of

the procurement, development, comp-ensation, integration, maintenance andseparation of human resources to theend that individual, organisational andsocial objectives are accomplished.


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Scope of HRM

HR Planning

Job analysis and Design

Recruitment and Selection

Orientation and Placement,Training and Development

Performance appraisal and Job Evaluation

Employee and Executive Remuneration

Motivation and communication

Welfare, Safety and Health

Industrial Relations (IR)


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Importance of HRM

Social Significance

Balance the jobs available and job seekersProvide suitable and productive employment

Maximise utilisation of the resourceseffectively

Eliminate waste or improper use humanresources

Help people make their own decisions


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Importance of HRM

Professional Significance

Maintain dignity of the employee as humanProvide maximum opportunities for personaldevelopment

Provide healthy relationship to different work

groupsImprove skills and capacities

Minimise wrong postings, allocate workproperly


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Importance of HRM

Significance for Individual Enterprise

Create right attitude among employeesthrough effective motivation

Utilise the available human resourceseffectively

Secure co-operation of the employees:achieve goals, psychological needs- love,affection, belongingness, esteem and selfactualisation


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Difference between HRM & PMHRM

HRM views people as an importantsource or asset to be used for thebenefit of organisation, employees andthe society.

Philosophy of mutuality : mutual goals,mutual respect,mutual rewards andmutual responsibilities.

ASPA changed its name to SHRM


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Difference between HRM &PMPM

PM has limited scope and an invertedorientation

Viewed labour as a tool for benefits of theorganisation

Personnel Dept not respected, no productiveemployees

PM treated as routine activity meant to hire

new employee and maintain personnelrecords

Never part of strategic management ofbusiness.

Historically PM preceded HRM


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Difference between HRM & PM

Dimension Personnel HumanResource

EmploymentContract

Written,delineated

Aim to gobeyond contract

Rules Clear Outlook,Impatience

Guide to Mgnt.

Action

Procedures Business Needs

Behaviourreferent

Norms/Customs and Practices

Values/Missions


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Managerial/labour task

Monitoring Nurturing

Key Relations LabourManagement

Customer

Initiatives Piecemeal Integrated

ManagementRole

Transactional TransformationalLeadership

Speed of

decision

Slow Fast


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Dimension Personnel Human

Resource

Communication Indirect Direct

Prized

Managementskill

Negotiation Facilitation

Selection Separate,Marginal task

Integrated, keytask

Pay Job Evaluation(Fixed grades)

Performancebased

Conditions Separately

negotiated

Harmonisation


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Dimension Personnel Human

ResourceLabourManagement

Collective barg-aining contracts

Individualcontracts

Job categoriesand grades

Many Few

Job design Division of labour Team work

Conflict handling Reach temporarytruce

Manage climateand culture

Training &Development

Controlled accessto courses

Learningcompanies



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Intervention

focus

Personnel

procedures

Wide ranging-

cultural,structuraland personnelstrategies

Respect for

employees

Labour treated

as tool :expendable andreplaceable

People are treated

as assets tobenefitorganisation/employees/society


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Sharedinterests

Organisationalinterests areuppermost

Mutuality ofinterests

Evolution Precedes HRM Latest in the

evolution of thesubject


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Objectives of HRM

Societal

To be ethically and socially responsible to theneeds and challenges of society whileminimising the negative impact of suchdemands upon the organisation.

OrganisationalTo recognise the role of HRM in bringingabout organisational effectiveness.


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Objectives of HRM

FunctionalTo maintain the departments contribution ata level appropriate to the organisationsneeds.

Personal

To assist employees in achieving their

personal goals, at least insofar as these goalsenhance the individuals contribution to theorganisation.


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HRM Objectives andFunctions

HRM Objectives

Societal

SupportingFunctions

1.Legal Compliance2.Benefits

3.Unionmanagementrelationship


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HRM Objectives

Organisational

Supporting Functions

1.Human Resource

Planning2.Employee Relations

3.Selection

4.Training &

Development5.Appraisal

6.Placement

7.Assessment


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HRM Objectives

Functional

SupportingFunctions

1.Appraisal

2.Placement

3.Assessment


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HRM Objectives

Personal

SupportingFunctions

1.Training &Development

2.Placement

3.Assessment4.Compensation


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Image & Qualities of HR

ManagerFairness & Firmness

Tact and resourcefulness

Sympathy and consideration

Knowledge of labour other terms

Broad Social outlook

Competence


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HR Policies

A policy is plan of action. Is a statement ofintention committing the management togeneral course of action. Policy contains HR

programmes, expression of philosophy andprinciples.

Policy are required for

basic needs, consistency in treatment &continuity


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Evolution of HRM

HRM emerged in 1970s

Kautilyas Arthashastra in 4th BC

Babylonian Code of Hammurabi 1800 BCminimum wage rate & incentive wage plan

In India since 1920 : First world war,emergence of trade union

The Royal Commission (1931) : LabourWelfare Officers : Selection of workers andsettle grievances.


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Evolution of HRM

Factories Act (1948) Welfare officerscompulsory in industries employing 500employees

IIPM Kolkata, NILM in Mumbai : (Jute andtextiles)

Second World War : increased expectationsof the workers : IR and Personnel admnintegrated as PM

1970 : Shift from welfare to efficiency.

1980 : HRM and HRD Challenges

1990 : Human value and productivity through

people

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17342220 HRMNature and Scope of Human Resource Management