Three Dimensions of Personnel Management

Personal Aspect : Recruitment, selection, placement, training, appraisal, compensation, productivity

Personal Management

Welfare Aspects: Working condition, amenities, facilities, benefits

Industrial relations aspect: union management relations, dispute settlement, discipline, collective Bargaining.

HRM Meaning and Definition

Human

Resource Management is also a function of management, concerned with hiring, motivating and maintaining people in an organization.
It

focuses on people in the organization.

HRM Meaning and Definition

Organization does not only consist of building, machines

or inventories. It is people they manage and staff the organization HRM applies management principles in procuring, developing, maintaining people in the organization. HR Decisions must influence effectiveness of the organization leading to better service to customer and high quality product and services at reasonable price. It is not confined to business establishment only, HRM is applicable also to the non business organization, like government department, education, health care etc.

Definition
Human Resource Management is a series of integrated

decisions that form the employment relationship; their quality contributes to the ability of the organization and the employees to achieve their objectives. - Milkovich and Boudreau

Definition
Human Resource Management is concerned with the

people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true regardless of the type of organization government, business, education, health, recreation or social action. - David A. Decenzo and Stephen P. Robbins

Definition
Human Resource Management is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the

end that individual, organisational, and social objectives are accomplished. - Edwin B. Flippo

Pervasive Force Action Oriented Individually Oriented People Oriented Future Oriented Development Oriented Inter-Disciplinary Functions Continuous Process

Scope of HRM
Training & development Personal records Procurement

HRM
Industrial Relations Remuneration

Job analysis & Job description

Motivation

To help the organization reach its goals

To employ the skills and abilities of the workforce

efficiently To provide the organization with well-trained and well-motivated employees To develop and maintain a quality of work life To communicate HR policies to all employees To increase the employees job satisfaction and selfactualization

IMPORTANCE OF HRM

Promote team spirit Develop skills and competencies

Develop loyalty and commitment Increase productivity & profit

Train People for changing role

Improve job satisfaction

Attract & Retain Talent

GOOD HR PRACTICE HELPS

Enhance standard of living

Importance of HRM
Human Resource Management is important to all managers

despite their various functions because of the following reasons Hire the right person for the job

Low attrition rate

Ensure people do their best Time saved in not conducting useless interviews Avoid legal action for any discrimination Safety laws are not ignored Equity towards employee in relation to salary etc. Effective training Avoid unfair labour practices

Functions of HR
MANAGERIAL FUNCTIONS Planning Organizing Directing Controlling OPERATIVE FUNCTIONS Procurement Development Motivation & Compensation Maintenance Integration Function Emerging issues

Operative Functions
Procurement Job Analysis HRP Recruitmen t& Selection Placement & Induction Transfer, Promotion & Seperation Development Performanc e Appraisal T &D Career Planning & Developme nt Compensatio n Job evaluation Wages & Salary Administrat ion Bonus & Incentives Integration & Motivation Job Satisfaction Grievance Redressal Collective Bargaining Conflict Management Participation of Employees Discipline Maintenance Safety Social Security Welfare Schemes Personnel Records Personnel Audit

Evolution Of HR in India
Concept
The Commodity Concept

What is it all about ?

Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production Labour is like any other factor of production, viz, Concept money,materials,land etc.Workers were like machine tools. The goodwill concept Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity.

The Paternalistic Concept/ Management must assume a fatherly and protective Paternalism attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.

Evolution Of HR in India
Concept
The Humanitarian concept

What is it all about ?

To improve productivity, physical, social psychological needs of workers must be met. and

The Human Resource Concept

Employees are the most valuable assets of an organization. There should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees.

The Emerging concept

Employees should be accepted as partners in the progress of a company. They should have a feeling that the organization is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

In Past
In 50s
Employees were recruited not to question WHY but only To do. Terms like manpower, staff and personnel came to used.

In 60s

In Late 70s

People realized that beyond a point, productivity depended on people.

Evolution Of HR in India
Period Development status Emphasis Role

1920s-1930s

Beginning

Welfare

Clerical stroke disciplinary ,dismissal of workers] Administrative [leave, bonus, retirement etc] Managerial [housing, medical leave etc] Executive [formulating policies, T&D programs, MDPs etc] and managerial role

1940s-1960s

Struggling for Recognition

Introduction to HR techniques and IR

1970s-1980s

Development

Strong industrial relations and disputes, Regulatory Human values, productivity through people

1990s

Promising

Qualities of HR Managers
Personnel Attributes 1. Intelligence Educational Qualification 2.educational skills 3. Discriminating skills 4. Executing skills Training & Experience Professional Attitudes

Role of HR Managers
As a Specialist As Productivity Man As an information Source

As a fire fighter

Role of Personnel Manager

As a changing Agent

As a Housekeeper As a Liaison Man

As a Controller

Environmental influence on HRM

1) Technological factors 2) Human resource in country

Changes in structure of employment Changes in employee roles and their values Level of education 3) Local and governmental/PoliticalFactors 4) Customers 5) Social Factors 6) Economic factors 7) Employee Organizations

Human Resource Planning

Human Resource Planning is the process of forecasting a firms future demand for, and supply of, the right type of people in the right number.

Definition
Human Resource planning includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure that personnel supply equals personnel demand at the appropriate point in the

future.

Definition
Specifically, human resource planning is the process

by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. Human resource planning translates the organization's objectives and plans into the number of worker needed to meet those objectives. Without a clear cut planning, estimation of an organization's human resource need is reduced to mere guesswork.
David A. Decenzo and Stephen P. Robbins

Demand should match Supply

Objectives of HRP
To ensure optimum use of existing To recruit and retain the manpower of

HR To forecast future requirements for HR To provide control measures to ensure that necessary resources are made available as and when required. To avoid imbalances in the distribution and allocation of human resource. To forecast future skill requirements in the organization. To formulate transfer and promotion policies and provide a basis for further management development programmes.

required quality and quantity and make proper arrangement for minimizing turnover and filling up of constant vacancies. To maintain congenial IR by maintaining optimum level and structure of human resource. To develop skills, knowledge, ability and to meet needs for expansion and diversification programmes.

NEED OF HRP
1) The shortage of certain categories of employees / 2) 3) 4) 5) 6) 7)

variety of skills despite the problem of unemployment. Rapid change in technology, marketing and management . Change in organization structure. Government policies. Increase in training and recruitment cost. Helps to reduce employee turnover Gives adequate lead time for recruitment, selection , training and development of personeel.

Importance of HRP
Future personnel needs Creating high talented personnel International strategies Foundation of personnel function Increase investments in human resources Coping with change Helps in projecting the interest of weaker section.

Factors affecting HRP

Type and strategy of organization Time horizons Type and quality of forecasting information

Nature of jobs being filled

Outsourcing Job analysis

External factors
Business environment 2. Levels of technology 3. International factors 4. Government policies
1.

HR Demand Forecast
Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs of the organization.

HR Supply Forecast
Supply forecast determines whether the HR department will be able to procure the required number of personnel. Specifically, supply forecast

measures the number of people likely to be available from within and outside an organization.

HR Supply Forecast
The supply analysis covers:
Existing human resources Internal source of supply External source of supply