Understanding the Nature and Scope of HRM

8/3/2019 Understanding the Nature and Scope of HRM

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1

Chapter 1, 2

Understanding theNature , Scope & Context

ofHuman Resource Management


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2

Learning Objectives

Understand the Nature, Scope and Objectivesof Human Resource Management.

Design an Organisation Chart for HumanResource Management Function in a Typical

Industrial Establishment. Environment of HRM

Changing role of HRM

Trace the Evolution of Human ResourceManagement.

.


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Introduction

There is unlimited people potential that is untapped

The universal challenge is getting results through

people

Acquiring ,developing and maintaining humantalent

Building the human capital

Its people that lend competitive advantage


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Definition

HRM refers to acquisition, retention, motivation and

maintenance of Human Resources in an organization.


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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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Objectives of HRM Societal objectives

To be ethically & socially responsible to the needsof the society while minimizing the negative impactof such demands upon the organization

Organizational objectivesTo recognize the role of HRM in bringing about

organizational effectiveness Functional objectives

To maintain the departments contribution at alevel appropriate to the organizations needs

Personal objectivesTo assist employees in achieving their personalgoals in a manner that their personal goalsenhance the individuals contribution to theorganization


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Objectives of HRM

PersonalObjectives

FunctionalObjectives

Organisational

Objectives

SocietalObjectives


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HRM Objectives & Functions

HRM Objectives Supporting Functions

1.Societal 1.Legal compliance2.Benefits 3.Union-Mgmt relation

2.Organisational 1.HR Planning

2.Employee relation

3.Selection

4.T &D

5.Appriasal

6.Placement & 7.Assessment

3.Functional 1.Apprisal 2. Placement3.Assessment

4.Personal 1.T&D

2.Placement

3.Compemsation 4.Assessment


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Difference between PM and HRM

Semantics HRM vs. PM Mutuality

Labour management

Legal compliance

HRD and IRM What are they?

Segments of HRM

C iti f HR / P l


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Composition of a HR / PersonnelDepartment

The size of HRdepartment reflects the

size of the company

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HRM Large-scale Unit

DirectorProduction DirectorFinance DirectorPersonnel/HRM DirectorMarketing

Chairman and

Managing Director

DirectorR&D


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HRM Small-scale Unit

Production Manager Sales Manager Office-Manager Accountant

Owner/Manager

Personnel Assistant

C iti f HR / P l


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Composition of a HR / PersonnelDepartment

Manager-PersonnelManager-

AdministrationManager-HRD Manager-IR

Owner/Manager

Appraisal Training & Development

Medical WelfareCanteen TransportPR Legal

HRP Hiring Grievances Handling Compensation


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How important is HRM ?


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Small mistakes = huge loses

What can go wrong! Hire the wrong person High turnover

People not performing

Waste time with useless interviews

Have your company taken to court because ofdiscriminatory actions

Have your company cited under occupational safetylaws for unsafe practices

Unfair and inequitable salaries

Lack of training Commit unfair labor practices


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Every manager is an HRmanager


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Authority line and staff

Line employee: an employee involveddirectly in producing the companys goos

or delivering services

Staff employees are those who supportthe line function


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HR managers duties

A line function

A coordinative function to ensure linemanagers are implementing organizations

policies, rules. Staff functions- assist and advise line

managers


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The changing environment andHRM


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Context of HRM

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1-23

Forces are

Environment may be understood as all those forces which havetheir bearing on the functioning of HR department

General Specific

Political- Legal

EconomicTechnologicalCultural forces

Customers

SuppliersCompetitorsUnions


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PoliticalLegal

Political

Legal :All HR activities are affected in one way or other bythem. HR Planning, recruitment, selection, placement, training and development,remuneration, employee relations are conditioned by Constitutional provisions

Human rights legislation Employment standards

Basic or minimum employment conditions in anorganization

Minimum wage, hours of work, OT pay

Health and safety

Healthy and Safe work Environment On the Job Injuries

Labour relations Relationship between union and employer

Not all organizations are covered by Labour Relations 24

Globalization & implications of


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Globalization & implications ofglobal economy

Tendency of firms to extend their sales ,ownership and manufacturing to newer marketsabroad

Worldwide company culture Worldwide recruiting

Global alliance needs highly trained and devoted staff

Deal with virtual workforce

Outsourcing


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Technology

Technology plays a vital role in HR functions, in order to

make people more intellectual and efficient. Managing Occupational Shift (manufacturing .. services)

managing a virtual workforce

managing employee alienation

training & retraining employees to manage obsolescence.

providing work life balance

IPRs Ex: bank installed special software that made CSR to handle customers

inquiries. Seeking to capitalize on new software, bank upgraded CSR jobs.;gave training , how to sell other services and thereby improved, profitability.Other bank didnt ; just system helped service rep. Handle few more calls


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Cultural

Culture refers to the complex whole which includesknowledge, belief, art Morales, laws, customs and othercapabilities and habits acquired by an Individual as amember of society.Eg: Tata and L& T Tatas culture Hire the right people

and let them free L & Ts culture They are known fortheir professional approach

Culture indicates attitude of workers towards work

Time dimensions which influence HRMAchievement orientedIndividualistic or collectivism


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Specific environment

Suppliers For HR dept, suppliers are those who

provide human Resources to an organization. Ex:Consulting firms, training institutes.

Competitors Competition plays significant role in

HR function and Activities. Organization need togroom its employees through well managed HRplanning programmes to withstand competition

Customers Customers have their own influence

on companies personal Functions . So everybodyin the orgn must endeavour to offer products whichgives satisfaction for the money customers pay.

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Internal force

Unions A firms personal activities will be influenced by its

own unions as well as the unions of other plants.

A trade union may be understood as association of

workers or management formed to protect theirown individual interest.

All HR activities like recruitment, selection,

training, compensation are carried out inconsultation with union leaders. Eg : The Bokarosteel plant has 68 trade unions. CalcuttaCorporation has about 100 trade unions.

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The changing role of HRM


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Changing role of HRM

HR functions to be more Strategic, SHRMHR mangers involved in partnering with their top managers in both

designing and executing their company's strategies

Creating High performance work systems

focus on productivity and performance:

Productivity is function of ability, motivation, quality of work life

By use of technology through effective HR practices ;

By instituting high performance work systems

Measuring HRM team performanceMeasurable evidence of their efficiency and effectiveness


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Evolution of HRM in India

1920s 30sPragmatism of capitalists

1940s 50s

Technical, legalistic

1970s 80s

Professional, legalistic, impersonal

1990s

Philosophical

mage an ua y o


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mage an ua y oHR/Personnel Manager

Fairness and firmness

Tact and resourcefulness

Sympathy and consideration

Knowledge of labour and other terms

Broad social outlook


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For next class

2010 batch :read chapter :strategic

management

All the students read :case study read pageno: pg-36, 37; pg-60; pg-80-81

Vybhav case study from ch1,2,3

Documents

Understanding the Nature and Scope of HRM