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Human Resource Management

BBA, Sixth Semester

Apex College
July 2013
Concept, nature, objectives, and functions of HRM
Personnel Management Vs. HRM
Human Resource Management system
Importance of Human Resource Management
The changing role of HR professionals
HR strategic-concept and perspectives
Environment of HRM in Nepalese organization
International perspective of HRM
Ethical issues in HRM
Concept and Nature of HRM
Human resource management (HRM) is the
management of an organization's workforce
or human resources.

It is responsible for the attraction, selection,
training, assessment and rewarding of
employees while also overseeing
organizational leadership and culture and
ensuring compliance with employment and
labor laws
Concept and Nature of HRM

Organization has three basic components:

People: working in an organization
Purpose: tries to match an organizations needs and demands
Structure: every organization has separate structure

Concept and Nature of HRM

The three key terms

Human: Homo-sapiens Social Animal
Resource: Human, Physical, Financial, Technical, etc
Management: Function of Planning, Organizing, Leading &
Controlling of organizational resources to accomplish goals efficiently and
effectively. Manage-men_t ( manage, men, tactfully)

Concept and Nature ..

Human Resource Management (HRM) is the function within
an organization that focuses on recruitment, management,
and providing direction for the people who work in the

Human resource management is the process consisting of the
acquisition, development, motivation and maintenance of
human resource. David A. Decenzo & S. P. Robbins
Objectives of HRM
Societal objective
Organizational objective
Functional objective
Personal objective

General Function of HRM
Organization development
Employee motivation
Functions of HRM

Managerial function: Planning, organizing, leading,

Operative function: recruitment and selection, training and
development, compensation and remuneration, safety and health, labor
relation personal information.
Human Resource (HR)
Human resources are the people who work for a
business or service organization, combining there
efforts, talents and skills with other resources such
as knowledge material and energy to create useful
product and services.

Human resources are defined with many terms:
People management , Human resource management,
Personnel management and Human capital management.
Personnel Management
The terms human resource management (HRM) and
human resources (HR) have largely replaced the term
personnel management as a description of the
processes involved in managing people in organizations.

Understanding of the concept of HRM is enhanced by
analyzing the differences and traditional approaches
to personnel management have evolved to become the
present day practices of HRM.
Personnel Management
Personnel management deals administrative tasks that are
both traditional and routine.

It can be described as reactive, providing a response to
demands and concerns of employee.

By contrast, human resources involves ongoing strategies to
manage and develop an organization's workforce.

It is proactive, as it involves the continuous development of
functions and policies for the purposes of improving a
company's workforce.
Human Resource Management could be described in
two ways. Strategic and Proactive.
HR strategies are ongoing and they constantly work
towards managing and developing an organizations
It can be seen as Proactive because of their
continuous development and functions to improve
the company's workforce.
Personnel Management Vs. HRM
HRM places more emphasis on strategic fit (goal) and
integration but PM only focuses on employees management.

HRM is based on a management and business orientated
philosophy PM responsible for managing people .

HRM attaches more importance management of culture and
the achievement of commitment, PM for process.

HRM places greater emphasis on the role of line managers as
the implementers, PM does not specify.
Personnel Management Vs. HRM
HRM is a holistic approach concerned with the total interests
of the business PM only focus on the members of the

HR specialists are expected to be business partners rather
than personnel administrators.

HRM treats employees as assets not costs.
Human Resource Management
A Human Resources Management System (HRMS) or Human
Resources Information System (HRIS), refers to the systems
and processes at the intersection between HRM and IT.

It merges HRM HR activities and processes with the
information technology (Input - Process - Output) whereas
the programming of data processing systems evolved into
standardized routines.

Providing the best workforce management solution that
allows organizations to automate processes and increase
employee engagement.

HR management
Payroll management
Recruiting and training
Insurance management
Performance management
Organizational change
Policy and publishing
employee suggestion and survey
News letters and polls
employee and manager self service

Human Resource Management
System Includes
Human Resource Management
Importance of Human Resource
Reduction in the workload of HR department
Address to workers' needs
Increased complexity of the Managers job
Legislation and litigation
Consistency work performance
Cost of Human Resource
Expertise in organization
Enhancement of decision making abilities
The role of HR professionals
HR staff have a balance to maintain as they play the roles of
both employee and company advocates.

Many HR managers comes out of the administration or
finance department because hiring employees, paying
employees, and dealing with benefits were the
organization's first HR needs.

The role of the HR manager, director, or executive must
parallel the needs of his or her changing organization.
The role of HR professionals
Traditionally, the role of the Human Resource professional in
many organizations has been to serve as the systematic
process, policing arm of executive management.

Their role was more closely united with personnel and
administration functions that were viewed by the organization
as paperwork.

HR professional, who is considered by managers and
executives, is a strategic partner, HR export, advocate and a
change adviser.
The role of HR professionals
HR strategic-concept and
HR strategy is considered as broad based action plan
for human resource for the attainment for
organization goal.

Its a long term manpower planning which range
form 5-25 years in periodic point.

Main aim of HR strategic concept is to search
sustainable advantage for manpower in an
Purpose of strategic HR
To analyze the manpower requirement
To evaluate availability of required manpower
To create the situation for manpower
To identify the problems (manpower) in org.
To study the market situation of manpower
Matching the org. needs and individual needs
HR Strategic Plan
It is a process for acquiring manpower,
developing the, utilize accordingly the need of
the organization and improve as well as retain

Strategic plan is whole plan where as human
resource plan is a part of the strategic plan.
Step or Process of Strategic HR Plan
Define the organizational objectives
Analyzing the external environment
Evaluating the internal situation
SWOT analysis of organization
Match with available resources
Formulate and apply HR strategic plan
Evaluate, monitor and feedback

Environment of HRM in Nepalese
Prithivi Narayan shaha: Divya Upadesh which is the pioneer
policy to control the HR in Nepal. Cottage industry, Mining policy, Corruption
control, Foreign policy and many more.

Rana Regime, there was a systematic government and
mechanism where east, west south and north administrative
system in Nepal.

After the planned economic development was started in 2007
BS. where ministery, Departments, Divisions, corporations,
National Planning Commission etc.

Main Feature of HRP in Nepal
Poor and traditional planning
Lack of accessing current HR
Lack of proper demand forecast
Missing supply forecast
Mismatch demand and supply
No long term vision
Over staffing
Low performance

Future Perspective in Nepalese
Making effective HR planning
Develop selection criteria
Develop internal skill and training
Right man in right place
Attention to good governance
Clear career path for HR personnel

International HRM
National cultural perspective
Institution culture perspectives
Multinational company's HR strategy
Globalization and international management
Cross border merge and acquisition
International compensation, pay and reward
International CSR and employee relation
International perspective of HRM
Senior managers commonly think in this area

Local circumstances
Develop a global strategy
Concern political situation
Law and culture
HR supply in local market

Ethical issues in HRM
'All HR practices have an ethical foundation. HR deals
with the practical consequences of human behavior.
- Johnson
Ethics are principles of conduct that govern an
individual or a group in an organization.

Ethics means making decisions that represent what
you stand for, not just what the laws are.
Major Ethical Role of HRM
Staffing and selection
Performance appraisal
Reward and disciplinary systems
Addressing workplace aggression and violence
Building two-way communication
Other Ethical issues in HRM
Recruitment and selection
Reward and punishment
Promotion and development
Safe working environment
System and procedures
Worklife balance of employee
Problems handling mechanism
Response and harassment
In-house and outsourcing
Ethical issues in HRM
Its not what you do; its what people see that
Assignment - 1
1. Define human resource management. Why HRM is more
important then personnel management?

2. "Human Resource Management is a complex and
challenging job." the light of this statement explain the role
and function of a perfect HR manager.