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HRIS

UNDERSTANDING THE NATURE AND


SCOPE OF HRM

Overview
What is HRM?
HRM Activities
Scope of HRM
Difference between HRM and PM
HRM Objectives and Functions

HUMAN RESOURCE MANAGEMENT (HRM)


HRM defined as
HRM is management function concerned with hiring ,
motivating and maintaining people in an organization. It
focuses on people in organization

HRM: Peoples Dimensions In Organizations

HRM: the application of management functions and


principles related to employees
HRM functions applicable every where (not for profit
and profit driven organizations)
Employees decisions are integrated
Employee decision brings effectiveness/efficiency in
organization
HRM includes all major activities in professional life
of a worker
All activities from employee entry to managing
performance and training until he or she leaves

HRM Activities

HR Planning

Job Analysis and Design

Recruitment and Selection

Training and Development

Remuneration

Welfare

Safe and Healthy Work Environment

Industrial relations

1.

SCOPE
Introduction to HRM

2.

Employee Hiring

3.

Employee Remuneration

4.

Employee Motivation

5.

Employee Maintenance

6.

Industrial Relations

7.

Prospects of HRM

OF HRM

Scope Of HRM
Prospects
of
HRM

Career
Developme
nt

IR

Introducti
on of
HRM

HRM

Employee
Maintenanc
e

Employee
Hiring

Employee
Remuneration

Employee
Motivation

The Semantics

There two terms

1.

PM (Personnel Management )

2.

HRM (Human Resource Management )

PM and HRM are different in scope and orientation

HRM is broad concept

PM and HRD (Human Resource Development) are


part of HRM

Dimensions
1.Employment
contract
2.Rules

PM
Care full delineation
of written contracts
Importance of
devising clear rules
Procedures

HRM
Aim to go behind
contract
Can do outlook,
impatience with rule
Business need

Norms ,customs and


practices
Monitoring

Values and mission

Slow
Transactional

Fast
Transformational
leadership
Direct
Facilitation

Differences Between HRM and PM

3.Guide to
management action
4.Behaviour referent
5.Managerial task
vis--vis labor
6.Speed of decision
7.Management role
8.Communication
9. Prized
management skills
10.Selection
11.Labour
management
12.Job categories
and grade
13.Job design
14.Conflict handling

Indirect
Negotiation

Nurturing

Separate ,marginal
task
Collective barraging
contracts
Many

Integrated, key task

Division of labour
Reach temporary
truce

Team work
Manage climate and
culture

Individual contracts
Few

Dimensions

PM

HRM

tool which is
spendable and
replaceable
Interest of
organizations are
uppermost
Precedes HRM

assets to be used for


the benefit of
organization
Mutuality of interest

Differences
Between
andare
PM
Labour
is used as HRM
Peoples
used as

15.Respect for
employees

16.Shared interest

17.Evolution
18.Locus of control
19.Oganization
principles

External
Mechanistic
Top down
centralized

20.Key relations
21.Initiatives
22.Pay
23.Training and
development

Labour Management
Piecemeal
Job evaluation
Controlled accessed
to courses

Latest in evolution of
subjects
Internal
Organic
Bottom-up
Decentralized
Customers
Integrated
Performance related
Learning companies

HRM Functions and Objectives

The

main

objective

of

HRM

is

to

ensure

the

availability of willing and competent force to an


organization

There are other objective of HRM too

1.

Societal objectives

2.

Functional objectives

3.

Organizational objectives

4.

Personal objectives

HRM FUNCTIONS AND OBJECTIVES

Societal Objectives

Organizational
Objectives

Functional
Objectives

Personal
Objectives

Functions
1 SocietalHRM
objectives

and Objectives

Societal objectives of HRM make sure that the


organization is socially and ethically responsible

Minimizing negative impact of societal demands on


organizations

For example: laws forces organizations to be ethical


in recruitment, to minimize the discrimination
against hiring based on ethnicity, race, and religion
etc.

HRM Functions
2 Organizational
objectives

and Objectives

To determine the role of HRM in organizational


effectiveness

Its purpose is to assist/serve organization

HR department also serve other departments

HRM Functions and Objectives

3 Functional objectives

To
maintain
department
organizational effectiveness
HR department services
organizational needs

contribution
must

fit

into

in
the

HRM Functions and Objectives


4 Personal objectives

To assist employees in achieving their


personal/individual goals

Maximum contribution to organization

Personal objectives are achieved when employees are


satisfied, motivated and retained

Satisfied employees
excellent
performance

excellent services
organizational

HRM Functions and Objectives


HRM Objectives

Supporting Functions

Societal Objectives

Legal compliance
Benefits
Union-Management relationship

Organizational Objectives

Human Resource Planning


Employee Relations
Training and Development
Performance Appraisal
Placement

Functional Objectives

Performance Appraisal
Placement

Personal Objectives

Compensation
Training and Development
Performance Appraisal
Placement
Source: Aswathappa, 2008, p.10

Doing the Benchmarking


Analysis

Return on Investment (ROI)

Calculation showing the value of

expenditures for HR activities.

C
ROI
AB
A = Operating costs for a new or enhance system for the time period
B = One-time cost of acquisition and implementation
C = Value of gains from productivity improvements for the time period

HR Business Performance Calculations

226
Source:
Adapted from Jac Fitz-Enz, Top 10 Calculations for Your HRIS, HR Focus, April 1998, S-3.

HR Business Performance Calculations

Source: Adapted from Jac Fitz-Enz, Top 10 Calculations for Your HRIS, HR Focus, April 1998, S-3.

ORIGIN AND GROWTH OF HR


FUNCTION IN INDIA

ORIGIN OF HR
Its origin is dated back to 1800 BC., when

wage and incentive plans were included in


the Babylonian code of Hammurabi.
The worlds first management book, titled
Artasastra written by Kautilya, in 400 BC,
codified many aspects of human resource
practices in ancient India.

GROWTH OF HUMAN
RESOURCE
HRM in India could be traced back to the

period after 1920, when emphasizes was


on worker welfare.
In 1931, the royal commission on labor
suggested the appointment of labor officer
to protect workers interests .
Appointment of labor officer

The second world war


Enactment of Industrial dispute Act
Enactment of Factories Act
1960 and after..

FIRST PHASE
Immediately after independence the focus

was on four reasons :


Maintain discipline
Prevent their formation of and break-up the
leadership of trade unionism.
Prevent their formation of and break-up the
leadership of trade unionism
Handle recruitment and termination
Keep some form of attendance and
personnel records.

SECOND PHASE
IN 1960S, Indian industrialization got a fillip

with the rise of the public sector. Hence 3


more functions were added i.e.,
Labor welfare
Participative management
Industrial Harmony
In this period, the human relations
movement of the west also had its impact
on Indian organization.

THIRD PHASE
In 1970, the people management functions

was neatly divided into two :


Personnel officer
Establishment officers

Fourth Phase
In 1976, birth of worker training institute

and attitudinal development.

Fifth Phase
In 1985, organization shifted towards

making HR Department separately.


HRD and personnel function were clubbed
together.

Sixth phase
In early 1990s :
HRM was seen as strategy
Motivation and stress were considered to

bring change in HRM


Focus on organization objectives

Seventh Phase
In the mid of 1990s, sub specialization like :
Industrial Relations
Training & Development
Information system

Eight phase
HRM is not selective management any

more
It became the part of Corporate Strategy
formulation and strategy implementation
team

Later Arrival of HRM in India


Late arrival of factory system
Low status of industrial worker
Professionalization of Human resource

Management
Social responsibilities of Business
Change of government attitude

Factors Impending the growth of


HRM in India
Abundance of cheap labor
Weak labor movement
Highly Authoritarian culture
Technological Backwardness
Instability in Employment
Unhealthy growth of Trade unions
Migratory characteristic of Indian labor

Evolving Role of HRM in India


Origin Of Human Resource Management in

India
The police Man
The Welfare Man
The law Man
The Liaison Man
The HR Man

Human Resources and Technology

HR and the Internet


Conversational resources
Reference sources
Intranets
ESS & MSS

Benefits of an HRIS
Improves equality of information
Reduces admin burden
Improves speed of information
Improves flexibility of information
Improves services to employees
Produces HR metrics

Components of an HRIS
Hardware
Software
Data
Procedures and users

Functional components of an
HRIS
Inputs
Employee
information,
company policies &
procedures

Transformatio
n
Computers
and software

Control system (feedback)

Outputs
Reports

Types of HRISs

Concentrated HRIS
Distributed HRIS
Independent HRIS
Hybrid approach

Types of HRISs
EDP (electronic data processing)
MIS (management information system)
DSS (decision support system

Reasons for the slow introduction of computerbased systems in HR departments

Lack of support by top management


Satisfaction with the status quo
Defensiveness about revealing HR operations
Lack of HRIS knowledge and skills by HR managers

Fully developed HRIS


database
Training &
Career
developme
nt &
planning

Succession
planning
Skills
inventory
HR planning
&
forecasting
Compensati
on
administrati
on
Future use

development
Affirmative
action
Employment
equity

DATABAS
E

Benefits
Health
claims

Personnel
module
Corporate, Biographical,
Histo-rical,
Company/ HR
policies
Position

Health &
safety

control
Applicant
tracking

Applications of the HRIS


database modules

Applicant-tracking module
T&D module
Position control module
Wage & salary administration module
HRP module
Skills inventory module
Succession planning module
Basic personnel module

Why do HRISs fail?


Lack of management commitment & resources and
inadequate numbers of personnel are made available
Project team not assigned for the duration of the project
Project is set up for failure (political intrigue, conflict &
hidden agendas)
Incorrect decisions are made poorly written needsanalysis reports
Key personnel are not included in the project team
Clients are not surveyed/interviewed to determine their
needs

Development, implementation
& maintenance of an HRIS
database
Phase I Needs analysis
Phase II Design & development
Phase III Implementation & maintenance

Securing the integrity of HR


data

Biggest risk
Keeping records unaltered
Controlling access
Security technology

Summary
Automation came late to the HR department. When it did, the

system put in place resembled payroll more than personnel.


The appearance of the personal computer (PC), perhaps more than
any other single event, shifted information control away from the
data processing/MIS department.
The computer is becoming an integral part of the HR department. As
a tool, it has moved beyond producing simple reports to helping HR
managers make complex decisions. Human resource information
systems (HRISs) are making this possible. As a whole, an HRIS
creates more opportunities for the HR profession to influence the
company.
A typical HRIS is composed of a database, computer software and
hardware.

Summary

There has been an explosion of PC hardware


improvements and software offerings that greatly
expand the possibilities of HRISs. Small employers can
now benefit by getting the same results on PCs and
minicomputers that could only be obtained using
mainframes a few years ago.
The choice between mainframes, minicomputers and
PCs is complicated by the blurring of distinctions
between them. Technological improvements are
levelling the playing field between competitive
technologies, and a likely scenario is that a mediumsized to larger employer will employ a combination of
networked computer systems.
Improvements in computer technology allow more
tasks to be accomplished than ever before. Very
sophisticated analyses can be performed on an ad hoc
basis. Even PC programs allow complicated 'what if'
questions to be answered.

Summary
Modern HRISs place HR professionals in a better position to play a

more integral role in the strategic management of today's


organisation. Computer technology, which first seemed to divide
departments, now serves to bring them closer together as they
share information, and more of it, to implement the business
strategy.
For an HRIS to be effective, users must be properly trained to use
it, and it must be used by those whom it is intended to serve.
HRIS concerns about the privacy of information that the database
contains are very important. Proper care must be taken to restrict
access to the system to those individuals who have a legitimate
need for its information.

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