Preamble

 There is unlimited people potential that is untapped  The universal challenge is getting results through people

 Introduction  Meaning & Definition of HRM  Scope of HRM  Differences between PM & HRM  HRM-Functions & Objectives  Evolution of HRM in India  Why Study HRM?

Introduction
 There is unlimited people potential that is untapped  The universal challenge is getting results through people  Acquiring ,developing and maintaining human talent  Building the human capital  Its people that lend competitive advantage

HRM: Definition

Definition
HRM refers to acquisition, retention, motivation and maintenance of Human Resources in an organization.

HRM is the planning, organising, directing & controlling of the procurement, development, compensation integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.

Jack Nelsons Problem

 As a new member of the board of directors for a local bank, Jack Nelson was being introduced to all employees in the head office. When he was introduced to Ruth Johnson, he was curious about her work and asked her what her machine did. Johnson replied that she really did not know what the machine was called or what it did. She explained that she had only been working there for only two months. She did, however, know precisely how to operate the machine. According to her line manager, she was an excellent employee.

Jack Nelsons Problem

 At one of the branch offices the line manager in charge spoke to Nelson confidentially, telling him that something was wrong but she did not know what. For one thing she explained that employee turnover was high, and no sooner had an employee been put on the job than another one resigned. With customers to see and loans to be made, she explained, she had little time to work with the new employees as they came and went.

Jack Nelsons Problem

All branch line managers hired their own employees without communication with the head office or other branches. When an opening developed, the line manager tried to find a suitable employee to replace the worker who had quit.

Jack Nelsons Problem

 After touring the 22 branches ad finding similar problems in many of them, Nelson wondered what the head office should or what action should be taken. The organisation was generally regarded as being a well-run institution that had grown form 275 to 791 employee during the last ten years. The more he thought about the matter, the more puzzled Nelson became. He couldnt quite put his finger on the problem, and he didnt know whether to report his findings to the company chairman.

Jack Nelsons Problem

What do you think is causing some of the problems in the bank head office and branches?

 There is clearly a problem with communication,  lack of consistency in the policies and procedures of various locations.  no cohesiveness to the staffing activities of this organization  Employee commitment low, attrition high

HRM involves:
 Flow of people: hiring, promotions, transfers, training
and development ; Developing management system that promote commitment

 Flow of information: keeping organizations in touch

with key external realities, managing internal communication, designing information technology infrastructure; Integration : Policies and procedures need to be well integrated and consistence

 Flow of work: Developing practices that foster team

work and employees feel valued and rewarded

 What specific functions should an HRM department carry out?

Scope of HRM
Prospects of HRM Nature of HRM

Industrial Relations

HRM

Employee Hiring

Employee Maintenance

Employee & Executive Remuner ation Employee Motivation

 Very Vast  Covers all major activities in the working life of a worker -from time an individual enters into an organization until he or she leaves comes under the purview of HRM

Functions of HR
MANAGERIAL FUNCTIONS Planning Organising Directing Controlling OPERATIVE FUNCTIONS Staffing Development Compensation Motivation Maintenance Integration Emerging Issues

Prof.Sujeesha Rao

Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits

DEVELOPMENT

COMPENSATION & MOTIVATION

Operative functions of HR (contd.)

MAINTENANCE
Health, Safety, Welfare, Social security Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining HRIS, HR audit, HR scorecard, International HRM, Workforce Diversity

INTEGRATION

EMERGING ISSUES
Prof.Sujeesha Rao

Objectives of HRM
Societal objectives To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness Functional objectives To maintain the departments contribution at a level appropriate to the organizations needs Personal objectives To assist employees in achieving their personal goals in a manner that their personal goals enhance the individuals contribution to the organization
Prof.Sujeesha Rao

HRM Objectives & Functions HRM Objectives 1.Societal Supporting Functions 1.Legal compliance 2.Benefits 3.Union-Mgmt relation 1.HR Planning 2.Employee relation 3.Selection 4.T &D 5.Appriasal 6.Placement & 7.Assessment 1.Apprisal 2. Placement 3.Assessment 1.T&D 2.Placement 3.Compemsation 4.Assessment

2.Organisational

3.Functional 4.Personal

Differences between PM & HRM

Dimension 1. Employment Contract 2. Rules 3. 4. 5. Behaviour referent Managerial task Management Role Personnel Management Human Resources Management

Careful delineation of written Aim to go beyond contract contracts Importance of guiding clear rules Can do outlook, impatience with rule Norms/customs/practices Values/mission Monitoring Transactional Indirect Reach temporary truce Controlled access to courses Personnel procedures Interests of the org. are uppermost Nurturing Transformational leadership Direct Manage climate & culture Learning organization Wide ranging cultural, structural & personnel strategies Mutuality of interests

6. Communication 7. 8. 9. Conflict handling T&D

Focus of attention for interventions 10. Shared interests

Prof.Sujeesha Rao

Evolution of HRM in India

Welfare (1920s-1930s) Administration (1930s1940s) Employee relations (19401960s) Functional expertise (1970s1980s) Business partner / player (1990s) Prof.Sujeesha Rao

How important is HRM ?

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 of discriminatory actions Have your company cited under occupational safety laws for unsafe practices Unfair and inequitable salaries Lack of training Commit unfair labor practices

Every manager is an HR manager

Authority line and staff

 Line employee: an employee involved directly in producing the companys goos or delivering services  Staff employees are those who support the line function

HR managers duties
 A line function  A coordinative function to ensure line managers are implementing organizations policies, rules.  Staff functions- assist and advise line managers

 The size of HR department reflects the size of the company

Composition of HR/Personnel Department

Director HRM

Managerial Personnel

Manager Administration

Manager-HRD

Manager- IR

Appraisal

T & D

pr

Canteen

Medical

Welfare

Transport

Legal

HRP

Hiring

Grievance Handling

Compensation