HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

Human Resource Management is concerned with competing for

and competing on human resources. Competing for human
resources involves recruiting & employing right personnel and
competing on human resources involves developing, retaining
and integrating personnel to achieve competitive advantages.
 NATURE
 Pervasive Force
 Action Oriented
 Individually Oriented
 People Oriented
 Development Oriented
 Integrated Mechanism
 Comprehensive Function
 Auxiliary Service
 Inter-Disciplinary Function
 Continuous Function
 SCOPE

 Procurement
 Training & Development
 Job Analysis & Job Description
 Remuneration
 Personal Record
 Welfare & Industry Relation
 PERSONNEL MANAGEMENT

 It is the planning organizing, directing and

controlling of the procurement,
development,compensation,integration and
maintenance of people for the purpose of
contributing the organizational ,individual
and socials goals . It is mainly concerned with
procurement and development of personnel
for the attainment of organizational goal.
 DIFFERENCE BETWEEN HRM AND PERSONNEL
MANAGEMENT
PERSONNEL MGT.
 Careful delineation of
written contract
 Importance of devising
clear rule
 Labor management
 Speed of decision is slow
 Communication is indirect
 Selection is separate,
marginal task
 Pay according to job
evaluation
 Job design- division of
labor
HRM
 Aim to go beyond
contract
 Can do, outlook,
impatience with rule
 Customer key relation
 Fast decision
 Direct communication
 Integrated selection
 Pay according to
performance
 Job design- team work
 HRM ENVIRONMENT

EXTERNAL INTERNAL
ENVIRONMENT ENVIRONMENT
 Technological factor  Mission
 Economical factor  Policies
 Social and cultural  Organizational culture
factor  Organizational
 Professionalism conflict
 Union  Organizational
 Political legal structure
ROLE OF HR MANAGER

1. HRD strategic adviser

2. HRD system designer and
developer
3. Organizational change
consultant
ROLE OF HRD 4. Organizational design
MANAGER consultant
5. Learning program specialist
6. Instructor
7. Individual development and
career consultant
8. Performance consultant
9. research
 STRATEGIC
STRATEGIC IS THE
MANAGEMENT


DETERMINATION OF BASIC
LONG TERM PURPOSE AND
OBJECTIVES OF AN
INTERPRISE AND THE
ADOPTION OF COURSES OF
ACTION AND ALLOCATION OF
RESOURCES NECESSARY FOR
CARRYING OUT THESE GOALS.
 NATURE
 Strategic issue warrant top management decision
 Strategic issue involves the allocation of large
amount and resources.
 Strategic issue are likely to have impinging impact
on the long term prosperity of the firm.
 Strategic issues have consequences of multi
business
 Strategic issues warrant due weightage to the
firms external environment
 Strategic management is a process
 Strategic management stresses both efficiency
and effectiveness
 STRATEGIC MANAGEMENT
PROCESS
 Environmental Scanning
 Strategic Formulation
 Strategic Evolution
 Strategic Implementation
 Mission & Goals
 HUMAN RESOURCE
PLANNING

 It is the process of determining man-

power requirement in order to carry out
the integrated plan of the organization.
 PURPOSE OF HRP

 Forecasting HR requirements
 Effective management of change
 Realizing organization goal
 Promoting Employee
 Effective use of HR
 Facilitates Economic Development
 Helps fill the Gap
 HUMAN RESOURCE
INFORMATION SYSTEM

 HRIS is a systematic procedure for

collecting, storing, maintaining and
retrieving data need by an organization
about its human resource and various
activities that are relevant for their
management
USES OF HRIS

 Procurement Function
 Development Function
 Compensation function
 Maintenance & Integration Function
DESIGNING OF HRIS

 Preliminary System Analysis

 System Designing
 System Engineering
 System Testing
 System Monitoring & Evolution
HUMAN RESOURCE
ACCOUNTING

 It is a process of identifying & measuring

data about HR and communicating this
information to interested parties.
 TYPES OF HR COST

 Procurement Cost
 Selection Cost
 Transfer & Placement Cost
 Orientation Cost
 Training Cost
 Development Cost
 HUMAN RESOURCE
MANAGEMENT AUDIT

 It is a systematic examination & evaluation of

policies, procedure & practices to determine
the effectiveness of human resource
management
PROCESS OF HR AUDIT
 Appointment of
auditors
 Coverage of
HRM Audit
 Specification of
standard
 Collection
evaluation &
Control of
information
 Preparing Audit
source
Compensation Administration

 Compensation includes direct

cash payments, indirect
payments in the form of
employee benefits to strive for
higher levels of productivity.
Objective of Compensation
Administration

 Attracting and retaining personnel

 Motivating personnel
 Optimizing cost of compensation
 Consistency of compensation
 Component of Compensation

Financial Non-Financial

Hourly & monthly Job context

rated

Incentives

Fringe Benefits

Perquisites
 Discipline

 It may be considered as
a force that prompts
individuals or groups to
observe the rules,
regulations and
procedures which are
deemed to be necessary
for the effective
functioning of an
organization. It has both
aspects positive &
negative.
Essentials of good Disciplinary
System
 Proper understanding of Rules
 Documentation of the Misconduct
 Training of Supervision
 Prompt Action
 Fair Action
 Well Defined Procedure
 Constructive Approach
 Reviews and Revisions
Approaches to Discipline

Judicial

Human Relation

Human Resource

Group Discipline

Leadership
 Disciplinary Action
 It is a negative motivation because it
discourage the employees from repeating the
mistakes in future through the punishment or
the fear of punishment.
Forms of Disciplinary Action

 Oral warning
 Written warning
 Loss of Privileges
& Fines
 Punitive Suspension
 Withholding of
Increments
 Demotion
 Termination
 Principles of Disciplinary
 Announced Disciplinary Policy with advance warning
 Prompt Action
 Consistency
 Fair Action
 Impersonality
 Give Employee an Opportunity to Explain
 Well Define Procedure
 Disciplinary Action as a tool
 Deciding What Action to Take
Employee  It is any

Grievance
discontent
whether,
expressed or
not, whether
valid or not,
arising out of
anything
connected
with the
company that
an employee
thinks,
believes, or
even feels is
unfair, unjust
or inequitable.
Forms of Employee Grievance

 Factual
 Imaginary
 Disguised
Sources of Employee
Grievance

 Grievance Resulting from Working Condition

 Grievance Resulting from Personal
Maladjustment
 Grievance Resulting from Management Policy
 Grievance Resulting from Alleged Violation
Identifying Employee Grievance

 Observation
 Grievance Procedure
 Gripe Boxes
 Open-Door Policy
 Exit Interview
 Opinion Survey
Steps in the Grievance
Procedure
Identify Grievances

Define correctly

Collect Data

Analyze & solve

Prompt redressal

Implement & Follow-up

 Industrial Relations
 It involve attempt
to have workable
solution between
conflicting
objectives & values,
between incentive
and economic
security between
discipline and
Industrial
democracy, between
authority & freedom
and between
bargaining & co-
operation.
 Nature of Industrial Relations
Grievance Participative Dispute
Redressal Management Settlement

Industrial Relations
Employer-Employee
Relation

Employer’
Trade Union
organization
Collective
Bargaining
 Importance of
Industrial Relations

 Industrial Peace
 High Morale
 Mental Revolution
 Programmes for Workers
Development
 Reduced Wastage
 Approaches of
Industrial Relations
 Psychological
Approach
 Sociological
Approach
 Human Relation
Approach
 Socio-Ethical
Approach
 System Approach
Difference between HRM & IR
HRM IR
 Two important parties-  Four important parties-
employee & employer employee, employer, trade
 Formulation of objectives, union & government
policies, procedures &  Implementation of HRM
programmes of HR & policies result in IR
implements them  Employees contact even
 Individual employee the top mgmt as a group
contact with the immediate  Collective bargaining &
superior forms of industrial
 Grievance & disciplinary conflicts are resorted to,
procedures are resorts to, to solve the problem
to solve the employee-
employer conflicts
 Promotion

 It is advancement
of an employee to
a better job-
better in terms of
greater
responsibility,
more prestige or
status, greater
skill & especially
increased rate of
pay or salary
Purpose of Promotion

 Utilize the employee

skill & knowledge
 Develop competitive
spirit
 Promote employee
self-development
 Build loyalty & to
boost morale
Type of Promotion

 Horizontal Promotion
 Vertical Promotion
 Dry Promotion
Basis of Promotion
 Merit Basis
 Seniority Basis
 Transfer

 It is a lateral shift causing movement of

individuals from one position to another
usually without involving any marked change
in duties, responsibilities, skill needed or
compensation.
 Reasons of Transfer
 To meet Organizational
Requirement
 To meet Employee’s
Request
 To Increase
Productivity of
Employee
 To make Employee’s
More Versatile
 Adjusting the Work
Force
 To give Relief to an old
employee
 Adjusting the employee
timing
 Penalizing Employee’s
 Maintenance of a
tenure System
 Type of Transfer

Basis of Purpose Basis of Unit

Production Transfer Sectional Transfer

Replacement Transfer Departmental Transfer

Shift Transfer Inter-Plant Transfer

Remedial Transfer

Versatility Transfer

Precautionary Transfer