Nature and Scope of Hrm III

8/12/2019 Nature and Scope of Hrm III

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Nature and Scope

of HRM


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Introduction

Meaning & Definition of HRM

Scope of HRM

Differences between PM & HRM

The Nature of employment relationship

HRM-Functions & Objectives Evolution of HRM in India

Why Study HRM?


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Introduction

Challenges faced by organizations

Global competitivenessimplications on HR

Work force diversity

Ethical issues Advances in technology and communication

Sensitive approach to environment

Shift in employees need for meaningful work


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What is HRM?

HRM is concerned with the peoples dimensionin the organization

Facilitating the competencies and retention ofskilled force

Developing management systems thatpromote commitment

Developing practices that foster team work

Making employees feel valued and rewarded.


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Definition

HRM refers to acquisition, retention, motivation and

maintenance of Human Resources in an organization.

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

social objectives are accomplished.


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HRM

Dimension Personnel Management Human Resources Management

1. Employment Contract Careful delineation of written

contracts

Aim to go beyond contract

2. Rules Importance of guiding clear rules Can do outlook, impatience with

rule

3. Behaviour referent Norms/customs/practices Values/mission

4. Managerial task Monitoring Nurturing

5. Management Role Transactional Transformational leadership

6. Communication Indirect Direct

7. Conflict handling Reach temporary truce Manage climate & culture

8. T&D Controlled access to courses Learning organization

9. Focus of attention for

interventions

Personnel procedures Wide ranging cultural, structural

& personnel strategies

10. Shared interests Interests of the org. are

uppermost

Mutuality of interests


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Scope of HRM

Very Vast

Covers all majoractivities in theworking life of a

worker-from time an

individual entersinto an

organization untilhe or she leaves

comes under thepurview of HRM

Prospects

of HRM

HRM

Nature of

HRM

Industrial

Relations

Employee

Maintenance

EmployeeHiring

Employee

&

Executive

Remuner

ationEmployee

Motivation


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The Nature of the Employment

Relationship


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FunctionsFunctions of HRM include:

Facilitating the retention of skilled and competentemployees

Building the competencies by facilitating continuous

learning and development

Developing practices that foster team work andflexibility

Making the employees feel that they are valued and

rewarded for their contribution

Developing management practices that endanger highcommitment

Facilitating management of work force diversity and

availability of equal opportunities to all.


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Functions of HR

MANAGERIALFUNCTIONS

PlanningOrganising

Directing

Controlling

OPERATIVEFUNCTIONS

Staffing

Development

Compensation

Motivation

Maintenance

Integration

Emerging Issues


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Operative functions of HR

STAFFING Job analysis, HRP, Recruitment,Selection, Placement, Induction,Internal Mobility

DEVELOPMENTCompetency profiling, Training anddevelopment, Performance &potential management, Careermanagement, 360 degree feedback

COMPENSATION& MOTIVATION

Job design, Work scheduling, Jobevaluation, Compensationadministration, Incentives and

benefits


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Operative functions of HR (contd.)

MAINTENANCEHealth, Safety, Welfare,Social security

INTEGRATIONEmployment relations, Grievance,Discipline, Trade unions,Participation, Collectivebargaining

EMERGINGISSUES

HRIS, HR audit, HR scorecard,International HRM, WorkforceDiversity


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HRM Practices

Strict and rigorous recruitment and

selection.

High level of training especially induction

training and on-the-job training.

Team working

Multi-skilling

Better management-worker

communication.


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Objectives of HRM Societal objectives

To be ethically & socially responsible to the needs ofthe society while minimizing the negative impact ofsuch demands upon the organization

Organizational objectives

To recognize the role of HRM in bringing aboutorganizational effectiveness

Functional objectives

To maintain the departments contribution at a levelappropriate to the organizations needs

Personal objectives

To assist employees in achieving their personalgoals in a manner that their personal goals enhancethe individuals contribution to the organization


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HRM and 3 Ps

Peoplecore strength of an organization

Any resource can be replaced but not HR

Processesevolve over a period of time

IT enabled environment facilitates engineeringeffortlessly

Performancethe pillars of performance are

people and ITOrganizational performance in terms of value

creation and return on investment


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Evolution of HRM in India

Pre Industrial Era

(1400 A.D.-1700 A.D.) Absence of any formal HRM

function

Cessation of feudalism

Shifts from agriculture to mixedeconomy

Growth of towns and villages


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Industrial Revolution and the

factory system (19th Century) Industrial relations in UKlate 18th century, USA

19th century, Indiasecond half of 20th century

Replacement of man by machine due to

industrialization

Factory system replaced the old cottage system

Emergence of factorynew class of workers andmanagers

Delegation of authority and assignment of

responsibilities


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Three systems of HRM were developedrecruitment of

workers, training of workers and control of workers but the

basic philosophy of managing the workers revolved around

master servant relationship

Trade Union Movement Era (Close to the19thcentury) Workers started to organize themselves based on their

common interests to form workers associations/trade unions

To safeguard themselves from long hours of work, poor

working conditions, employment of child labor, wages,employee benefits etc.

They started using such weapons as strikes, slowdowns,

walkouts, boycotts etc. for the acceptance of their demands.


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Social responsibility Era (Beg. Of 20thcentury)

Factory owners started adopting a more humanistic andpaternalistic approach towards workers.

o Scientific Management, welfare work(1900-1920)

Scientific management improves inefficiencies throughreorganization of production and rationalization of work.

Scientific management principles relevant to management of

workers are as follows: Job analysis, standardization, scientific selection and training

of workers, financial incentives, mental revolution.

Industrial psychology application of psychological principlesfor improving working conditions


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Human relation/ Industrial Psychology

Era (1930-1950) Early focus of HRM was on increasing human relations

The emphasize was on increasing productivity through

discovering the needs of the workers

Under this approach the manager become responsible for

integrating employees into the work situation that would

motivate them

The concept of social system, informal organization, group

influence and non-logical behavior entered the field ofpersonnel


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Behavioral Science Era (1950-60) Behavioral scientists have been goal and efficiency oriented

and consider understanding of human behavior to be a major

means to the ends.

Major contributions of the behavioral scientists are in theareas of motivation, leadership, communication, organizational

change and development, group dynamics.


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Systems and contingency approach Era

(1960 onwards) Management action is contingent on action outside the system

or subsystem as the case may be.

Organizational action should be based on the behavior of

action outside the system so that the organization in

integrated with the environment.

Because of a specific organization-environment relationship,

no action can be universal. It varies from situation to situation.


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Human resource management era

(1980 onwards) Industrial relation department came into existence

Personnel management to human resource management


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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, nomachines 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.


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THANK YOU

Documents

Nature and Scope of Hrm III