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Nature & Scope of HRM
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WELCOME
NATURE & SCOPE
OF
HUMAN RESOURCE MANAGEMENT
Presented By ROHAN KULKARNI
ROLL NO: 16
Learning Objectives…
Why Study HR Management?
Nature Of HR Management
Scope Of HR Management
Differences Between HRM & PM
HRM : Functions & Objectives
Organisation in HR Department
Paradoxes in HRM
Personnel Policies & Principles
HRM Models
Evolution of HRM
Why Study HR Management?
It’s the people who run organizations.
Need to manage their skills, abilities &
aptitude.
HRM is study about people i.e. how they
are hired, trained, compensated, motivated
& maintained.
NATURE OF HR MANAGEMENT
HRM involves the application of management
function & principles
• It helps in acquisitioning, developing, maintaining & remunerating employees in the organizations.
Decisions related to employees must be
integrated
• The decisions of HR must be consistent on the different aspect of Human Resources.
HR decisions must influence the
effectiveness of the organisation
• It should influence in the betterment of services to customers.
HRM functions are not confined to
business establishment only.
• It is also applicable to non-business organisations.
SCOPE OF HR MANAGEMENT
Nature of HRM
Employee Hiring
Employee & Executive Remuneration
Employee Motivation
Employee Maintenance
Industrial Relations
Prospects of HRM
DimensionPersonnel
ManagementHuman Resource
Management1. Employee Contract Careful delineation
of written contracts.Aim to go beyond contract.
2. Key Relations Labour Management Customers
3. Speed of decision Slow Fast
4. Management Role Transactional Transformational Leadership
5. Communication Indirect Direct
6. Prized Management Skills
Negotiation Facilitation
7. Conditions Separately Negotiated
Harmonization
8. Conflict Handling Reach Temporary truce
Manage climate & culture
9. Job Design Division Of Labour Team Work
10. Shared Interests Interest of the organisation are uppermost
Mutuality of Interest
HRM: OBJECTIVES & FUNCTIONS
Objectives:
Societal Objectives
Organisational Objectives
Functional Objectives
Personal Objectives
FUNCTIONS:HRM Objectives Supporting Functions
1. Societal Objectives a. Legal Complianceb. Benefitsc. Union-Management relations
2. Organisational Objectives a. HR Planningb. Employee relationsc. Selectiond. Training & Developmente. Appraisalf. Placementg. Assessment
3. Functional Objectives a. Appraisalsb. Placementc. Assessment
4. Personal Objectives a. Training & developmentb. Appraisalc. Placement, Compensation &
Assessment
ORGANISATION OF HR DEPT
HR in Small-Scale Unit:
Owner/Manager
Prod Manager
Sales Manager
Office Manager Accounts
Personnel Assistant
HR in Large-Scale Units:
Chairman & Managing Director
Director Production
Director
Finance
Director Personnel/HRM
Director Marketing
Director R & D
Outsourcing
Activities that are Outsourced
(subcontracted)
Employee Hiring & Training
Payroll Preparation
Statutory Record Maintenance.
Paradoxes in HRM
Any individual can become a HR Manager?
Any of the HR practices can be outsourced?
Can any organization function without a HR
department?
The Silver Lining…
HR Manager creates an infrastructure.
HR practices align with firm’s strategies,
organizational goals are met & sustained.
HR Manager values people & works to
create compassionate organization.
Personnel Policies & Principles
Policies:
Policies are plans of Action.
They help motivate & build loyalty
Policies become benchmarks to compare &
evaluate performance.
A Policy does not spell out the detailed
procedure by which it has to be implemented
Why Adopt Policies?
Policies addresses the needs of the
organisation & it’s employees.
Established policies ensures consistent &
fair treatment of all the employees
throughout the organisation.
Continuity of action is assured in case of
change of top management.
Policies serves as standard of performance.
It helps in building motivation & loyalty
Sound policies help in conflict resolution
Principles:
Principles are Universal truths generally
applicable to all the organisations.
They have been established through
practice, experience & observation.
For E.g.,
1. Principle of Individual Development.
2. Principle of Scientific Selection.
3. Principle of free flow of communication.
4. Principle of dignity of Labor.
HRM MODELS
The Fombrun, Tichy & Devanna Model
Human Resource Development
Appraisal
Rewards
SelectionOrganisational Effectiveness
The Harvard ModelStakeholder
InterestShareholders Management Government Community Unions
Situational FactorsWorkforce CharacterBusiness Strategy & ConditionsUnionsLabour MarketLaws & Societal values
Human Resource Management
Human Resource outcomesCommitmentCompetenceCongruence
Long-Term ConsequencesIndividual well-beingOrganisationalSocietal well-being
The Guest Model
HRM Strategy
HRM PracticesHiringTrainingAppraisalCompensationRelations
HR OutcomesCommitmentQualityFlexibility
Behavioral OutcomesMotivationCo-OperationOrganisational Citizenship
Performa-nce OutcomesPositiveProductivityInnovationQualityNegativeTurnover
Financial OutcomesProfitsROI
The Warwick Model of HRM
CultureStructurePolitics/LeadersTask-TechnologyBusiness Outputs
RoleDefinitionOrganisationHR Outputs
HR FlowsWork SystemsReward SystemsEmployee-Relations
ObjectivesProduct MarketStrategy & Tactics
Socio-EconomicTechnicalPolitical-LegalCompetitive
Outer Context
Inner Context
HRM Context
HRM Content
Business Strategy Content
Evolution Of HR Management
Period Development Status Outlook Emphasis Status
1920-1930 BeginningPragmatis
m of Capitalists
Statutory, welfare,
paternalismClerical
1940-1960Struggling
for recognition
Technical Legalists
Introduction of Techniques
Administ-rative
1970-1980Achieving
Sophistication
Professional, legalists, impersonal
Regulatory, conforming, imposition of
standards
Managerial
1990 Promising Philosophical
Human Values,
productivity through people
Executive
THANK YOU