Human Resource Management

DEFINITION

HRM is planning. organizing, directing and controlling the procurement, development, compensation, integration, maintenance & retention of human resources to the end that individual, organizational & societal objectives are achieved. -Flippo
Process of bringing People and organization together so that the goals of each are met.

Definition

HRM may be defined as art of Procuring, Developing and maintaining Competitive workforce to achieve the goals of an organization in an effective and efficient manner.

HRM is defined in terms of its proactive approach to managing people in organization. Elements: HR Polices should be integrated with strategic business Planning HR are valuable and a source of competitive Advantage. HR can be tapped more effectively by mutually Consistent polices which promote commitment and foster willingness in employees to act in int. of organization

Features/Nature

Part of management discipline Process/continuous process Concerned with people Directed towards the achievement of objectives Universal existence Individual and people oriented Future oriented Integrating mechanisms

Why HRM is important to all managers?

Because we dont want to;

Hire the wrong person for the job. Experince high turnover. Find your people not doing their best. Have some people think that their salaries are unfair and
inequitable relative to others in the organisation.

Human resource: Knowledge, skill sets, expertise, adaptability, commitment, loyalty of employees
Resource: The stock of assets and skills that belong to a firm at that point of time Skills: the individual abilities of human beings to perform a piece of work.

Scope of HRM

Personal aspect: planning, recruitment, selection,job orientation ,training and development, retrenchments & lay offs, incentives etc. Welfare aspect :canteen ,rest and lunch rooms, health and safety ,medical assistance, recreation facilities Industrial relation Aspect: trade unions , collective bargaining

Objectives of HRM

Help organization to reach goals To employ the skills and abilities of work force effectively Provide organization well trained and well motivated employees Provide job satisfaction Maintain quality of work life Communicate HR Polices to all employees Ethically and socially responsive to the needs of society

Importance Of HRM

Attract and retain talent Train People for challenging roles Develop skills and Competencies Promote Team spirit Develop Loyalty and Commitment Increase productivity and profits Improve job satisfaction Enhance standard of Living Generate Employment opportunities

HRM Functions

HR acquisition : HR planning Job and role analysis Recruitment Selection orientation and Placement HR Development : HRD system Carrier Planning & Development Training and development Organization development

Performance and Compensation: performance management Compensation mgmt Incentives and benefits Motivation and Maintenance: creating motivating environment empowerment and participation HR Mobility Safety and Health Mgmt

Industrial relations: IR system Discipline and Grievances Mgmt Industrial Dispute Mgmt Other functions: HR information system HR Research HR Accounting HR audit

Various Other Concepts

Human Resource Concept of personnel mgmt SHRM HRM as profession Role of HRM in corporate Strategic Mgmt Qualities of HR manager

Human resources

Top mgmt Board of Directors Chief Executives

Supervisory Middle Mgmt Mgmt Departmental Senior intermediate Divisional Heads

Operatives Skilled Semi skilled Unskilled

Significance Of Human Resources

Activation of Non human resource Means of Developing Competitive advantage Sources of creative energy

Concept of Personnel Management

Some has opinion that both are same but some says that both are different concept. Definition Personnel mgmt is part of mgmt which is concerned with people at work and with their relationship with in an enterprise. its aim is to bring together and develop in to an effective organization of men and women who make up an enterprise and having regard to well being of the individuals and of working groups, to enable them to make their best contribution to its success

Common Features of Personnel mgmt and HRM Stem from business strategy. Both recognize that line managers are responsible for managing People. Value of both are same that is to respect individuals Both attach importance to the function of matching people to ever changing business requirements. Both use same range of selection, performance mgmt reward mgmt technique etc. Both stress on process of communication and participation.

Difference between Personal mgmt and HRM

Personal Mgmt HR mgmt

Routine and maintenance oriented administrative function Reactive and respond to the demands of organization.

Not routine and emphasis on continuous development of people at work. Proactive and not deals with present and future needs of organization. Integrated function

Independent function

Narrow in view of its scope and objectives. Emphasis on economic Rewards

Wider scope

Emphasis on satisfaction of higher needs for motivating people such as challenging jobs and autonomous work group.

Strategic Human Resource Mgmt

Strategic human resource mgmt is the pattern of planned human resource developments and activities intended to an organization to achieve its goals. It means accepting the HR function as a strategic partner in both the formulation of companies strategies as well as in implementation of those strategies. For example - HDFC Strategy to differentiate itself from its competitors like LIC in providing better services which is achieved by HR

SHRM/HRM
SHRM

HRM

Derived from strategy

Long Term covers strategic aspects Its objective is creating and sustaining competitive advantage Treat people as stategic resource

Moderate linkage between administration and operational Short term Covers non strategic aspect Achieving operating objectives Treat people as merely resource

Human resource Mgmt as Profession

Existence of Knowledge Acquisition Of Knowledge Professional Association Ethical codes Service Motive

Characteristics of profession

Qualities of HR Manager

Managerial Qualities: Intelligence Conceptual qualities Analytical qualities Motivational qualities Emotional Stability Job Related qualities: Empathy communicative and Persuasive human Relations Quality Technical Quality

Evolution of HRM

The industrial revolution Scientific management Trade Unionism Human relations approach Human resources approach

HRM & Competitive Advantage

Competitive advantage: It comes from a firms ability to perform activities more distinctively and more effectively than rivals.

Is HRM a source of competitive advantage?