As

industrial world is becoming more and more

globalised, fulfillment of primary objectives lies in the
hands of the people of the organizations.

No

matter how sophisticated technology, plant and

machinery an organization has, eventually much of the
results depend upon human inputs.

Technology,

product or strategy of an organization over

its competitors provide it only a temporary gain as all
these things lend themselves to adaptation by
competitors,. But employees motivation, capabilities
and climate of human endeavor are the things which
one organization cannot copy from other.

 Moreover,

human resource are treated as assets of

organization unlike physical assets, continuously
appreciate in value, skills, knowledge, abilities and
all grow with training and experience. The ability of
an enterprise to optimize its efficiency and
effectiveness, therefore, significantly depends on its
ability to integrate its people with the organization

HRM is the function performed in Organizations that facilitates the

most effective use of people to achieve organizational and individual

goals
- Ivancevich & Glucck.

HRM is planning, organizing, directing and controlling of the

procurement, development, compensation, integration, maintenance and
reproduction of human resource to the end that individual,
organizational and societal objectives are accomplished,
- Flippo.

the management of human resources is viewed as a system in which

participants seeks to attain both individual09/23/16
& group goals.
4
- Dale Yoder.

Objectives of HRM

Qualities & Qualification of HR Manager

INTELLIGENCE
EDUCATION

SKILLS
COMMUNICATION SKILLS
EXECUTING SKILLS
EXPERIENCE & TRAINING
PROFESSIONAL ATTITUDE

09/23/16

Product
Subsystem

Finance
Subsystem

HR Subsystem
Procurement
Training
Compensation
Appraisal
Rewards

Technical
Subsystem

Marketing
Subsystem

FUNCTIONS OF HRM
P/HRM
Managerial
functions:

Planning

Operative Functions
Procurement

Development:

Job Analysis

Training

HR planning
Organizing

Recruitment
Selection
Placement

Directing

Induction
Internal
mobility

Controlling

Executive
development
Career
planning
Succession
Planning
Organizational
development

Motivation and
Compensation:
Motivation

Maintenance:

Integration:

Employee well
being

Grievances
Discipline

Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services

Motivation

Teamwork

Participation

Collective
bargaining

Social security

Trade unions
Employers
associations
Industrial
relations

HR Policy

is a set of written or nonwritten guidelines which helps to achieve the

organizational objectives and also regulate
the service conditions of employees.

Purposes and Need.

HR

policies allow an organization to be clear with

employees on:
The nature of the organization.
What employees should expect from the organization.
What the organization expects from them.
What is acceptable behavior an unacceptable behavior.
The consequences of unacceptable behavior.
Framing the HR policies to ensure uniform code of
operation for employees and provide common platform
to all.

Advantages of HRM policies

Increases

independence in decision making

Better control without friction & conflict
Serves as standard for efficiency.
Minimizes favoritism
Creates loyalty
Basic needs of Organization & employees are taken
into account

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13

A few specific policies are:

Policy

of hiring people with due respect like reservation, sex,

marital status etc.
Policy on terms and conditions of employment- compensation
policy, hours of work, overtime, promotion, transfer.
Policy of medical assistance- sickness benefits, company
medical benefits.
Policy regarding housing, transport, uniform
Policy regarding T&D

Principles useful in formulating

Policies:

Past

practices in the organization

Prevailing practices in rival organizations
Attitudes & Philosophy of top management
Attitudes & Philosophy of middle / lower
management
Knowledge & experience gained through handling
personnel problems

Organization

for HRM in SSI

OWNER/PROPRIETOR

Production
manager

Sales
manager

Office
manager/
HR manager

Personal
Assistant.

Accountant

Organization

for HRM in LSI

CHAIRMAN/MANAGING
DIRECTOR

personnel
administration

HRD
IR

DEVELOPMENT OF HRM IN INDIA

Although

HRM is comparatively a recent management term we

can trace the relevance of it to the Vedas.
In the Bhagavad Gita, lord Krishna not only makes Arjuna
spiritually enlightened, but also teaches him the art of selfmanagement, anger management, stress management, conflict
management, motivation, leadership and many other aspects
which are now essential parts of any HRM curriculum.

HRM in India
In

50s- employees were recruited not to question

WHY but only to do.
In 60s- terms like manpower, staff and personnel
came to used.
In 70s- realized that beyond a point productivity
depended on people of the organization.

HRM in India
The

viewpoint of HRM in India has shifted in the last decades

The economic liberalization of 1991 has created a massive
change in the HRM perspective in India.
It not only led to the creation of a very competitive market
situation but also in turn forced Indian organization to think
and implement innovative measures to attract and retaining
employees.
The Indian workforce is now being globally acknowledged on
dedicated intelligence and a well informed workforce.

Changing role of HR in India

Role of HR undergone several changes in India.
HR manager are how being considered a strategic partner to
the organization.
They are involved in all the crucial business decisions made
by the company.
The role that HR in India has to take up have increased. They
are the change agents, counselors, motivators, trainers and
also the spokesman of the employees

Recent Trends in HRM

TQM

in HRM
HR Auditing
HR Accounting.
Six sigma
Outsourcing
Body shopping
Head hunting
Quality management standards

IMPACT OF GOBALISATION ON HRM

Globalization and HRM
Globalization is a process that is
drawing people together from all
nations of the world into a single
community linked by the vast network
of communication technologies.
This aspect of globalization has also
affected the HRM in the business world
of today.
HR managers today not need to rely in
a small limited market to find the right
employees needed to meet the global
challenge, but today they can recruit the
employees from around the world

 The

most important factor that organizations are made up of

People, and since HRM is the set of activities which deals
with the people factor present in any organization, this change
has affected The Human Resources Management itself a lot.
Human resources manager of today must ensure that the
appropriate mix of employees in terms of knowledge, skills
and culture.
Human resources management for a multi-national corporation
with subsidiaries that operate in multiple countries presents
many cultural and socio-economic challenges. Globalization
has many positive and negative effects on any multi-national
corporation's human resources management department.

Labor laws can differ greatly from one country to

the next. With increasing globalization, human
resources managers must stay abreast of the labor
laws of the countries in which they operate to
ensure that the company is not inadvertently
breaking these laws.
The globalization is a HRM Challenge. The HRM
Function has to make its policies, procedures and
processes to work on the global level. Currently,
most of the HRM Policies is focused on the
concrete country, but the employees have to start to
move from the country to another country and the
HRM Processes have to be able to support such a
need in the organization.