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Human Resources Management

(HRM)

DEFINITION OF MANAGEMENT
Management is the process of
designing and maintaining an
environment in which individuals,
working together in groups,
efficiently accomplish selected aims.

TYPES OF MANAGEMENT
Management is classified into three branches in
accordance with the type of resources it deals with,
i.e.

RESOURCES

MANAGEMENT

Finance.

Finance Management.

Material.

Materials Management.

Human Resources.

The Human Resources

Management.

HUMAN RESOURCE
MANAGEMENT
Human Resource
Management is
The branch of
Management of
The Human Resources

HRM

EVOLUTION OF HUMAN
RESOURCES MANAGEMENT
The industrial revolution
The emergence of free collective
bargaining
Scientific management
Private industrys approach to personnel
management
Human relations movement
The behavioral sciences

DEVELOPMENT OF HRM
Pioneer Work.

Peter Drucker (1950)


Douglas Mcgreger.

Behavioral Science
Movement.

Maslows Hierarchy of
Needs. (1960)

Organizational
Development Movement.

1960-170.

The Corporate Culture Cult. 1970-1980.


The Art of Japanese
Management.

1980-1985.

GROWTH OF HUMAN
RESOURCES MANAGEMENT
File Maintenance Stage.
Government Accountability Stage.
Organizational Accountability Stage.
Strategic Partner-ship Stage.

Stage 1
Stage 2
Stage 3
Stage 4

File
Maintenance

Government
Accountability

Organizational
Accountability

Strategic
Partner

PRESENT CONCEPT OF HRM

Human resource management in its present form is an approach to the


management of people based on four fundamental principles.

Human resources are the most important assets of an


organization. Their Management is the key to its
success.
Success is most likely if the personnel policies and
procedures are closely linked with, objectives and
strategic plans.
The corporate culture and values, organizational climate
and managerial behavior culture influences the
achievement of excellence. This culture be managed.
HRM is concerned with integration. Getting all the
members of the organization involved in working
together with a common sense.

HRM CONCEPT
It involves all the management decisions and
actions that affect the nature of the relationship
between the organization and employees i.e., Its
HR.
It communicates the instrumental values about
people and that people be viewed and managed as
assets.
The development of trust between employees,
managers and unions

HRM CONCEPT
Human Resource Management is the responsibility of all
those who manage people.
It is the management concerned with people at work and
with their relationship within an enterprise.
It applies to all fields of employment.
It aims at achieving both efficiency and justice.
It seeks to brings together and develop into an effective
organization, all the people of an enterprise, to make
there best contribution to its success both as an
individual and as member of working group.
It seeks to provide fair terms and conditions of
employment and satisfying work for the employed.

EMERGING TRENDS IN HRM


Three basic traditions.
Personnel Administration.
Labor Relations.
Organizational Development.
Changes in basic values of society.
Fundamental shift in ideology to the concern for the
whole and not a part of community.
Concern with the rights of the managed not just the
managers.
A shift towards greater concern for the systems of the
organization.
Contd..

Employee involvement and union-management


collaboration.
To identify problems and develop processes.
Increased emphasis on training and
development activities, performance appraisal
and improvement processes.
Competence (well qualified physically and intellectually) and
commitment issues given attention.
Traditional control on information flow giving
way to more openness to employees.
Shift from short term perspective to long term
perspective to problems and their solutions.
Contd..

A concern for the outcomes not just the role and


policies
Flexibility in application of HR policies to
individuals and the business
Flexibility in control at the top to a more
participative and collaborative management
Willingness to talk about the problems in
organization
Change in attitudes towards conflicts
HRM concerned with the groups of shareholders,
employees, the union and the government

CURRENT PRESSURES AND


DEMANDS ON HRM
Increased education of the work force.
More concern with career and life
satisfaction.
Changing values of the work force.
Change in workforce demography (The
branch of sociology that studies the characteristics of human
populations).

CURRENT PRESSURES AND


DEMANDS ON HRM
Increased international competition.
Increasing complexity of size of
organizations.
Slower growth, and receding
advancement opportunity to employees.
Greater involvement of governments in
human resource practices.

EX PERSONNEL DEPARTM ENT


Now HR DEPARTM ENT

R e c r u t ie m n t S e le c t io n

W a g e s & S a la r y A d m in is t r a t io n
C o m p e n s a t io n & B e n e fits

E m p lo y e e e R e la t io n

E m p lo y e e T r a in in g

H e a lt h & S e fe ty

E m p lo y e e D e v e lo p m e n t

M a n a g e m e n t D e v e lo p m e n t

O r g a n iz a t io n a l D e v e lo p m e n t

R e s e a rc h

O r g a n iz t io n a l C o m m u n ic a t io n

Change M anagem ent

O r g a n iz a t io n a l B e h a v io u r

B e n e fits & S e r v ic e s

In d u s t ria l P s y c h o lo g y

L e g a l R e g u la t io n s

H u m a n R e la tio n s

S o c io C u lt u r a l

P u b lic R e la t io n

HUMAN RESOURCES PHILOSOPHY


Or

(HR Contribution in Company Growth & Success


A firms HR philosophy is generally a broad statement about how
it regards its people, the role they play in the overall success of a
business, and how they are to be treated and managed.
Empowering people to drive to business from the closest point
to the market.
Developing the skills to be the best in the business.
Building career opportunities.
Building teamwork.
Helping people succeed by the building an environment with
high integrity, strong and consistent values, and continuous
improvement.
Changing environment towards effective time management,
cost consciousness and improving interaction for increasing
productivity by proactive support to line managers.

ORGANIZATIONAL
ORGANIZATIONALSTRATEGY
STRATEGY
Initiates
Initiatesthe
theprocess
processof
ofidentifying
identifyingstrategic
strategicbusiness
business
needs
and
provides
specific
opportunities
to
needs and provides specific opportunities tothem
them

INTERNAL
INTERNAL
CHARACTERISTICS
CHARACTERISTICS

EXTERNAL
EXTERNAL
CHARACTERISTICS
CHARACTERISTICS
STRATEGIC
STRATEGICBUSINESS
BUSINESSNEEDS
NEEDS

Expressed
Expressedininmission
missionor
orvision
visionstatements
statementsand
andtranslated
translated
into
strategic
business
objectives
into strategic business objectives

STRATEGIC
STRATEGICHUMAN
HUMANRESOURCES
RESOURCESMANAGEMENT
MANAGEMENTACTIVITIES
ACTIVITIES
Human Resources Philosophy expressed in
Express how to treat and value people.
statements defining business values and culture.
Human Resources Policies expressed as
shared values (guidelines).

Establishes guidelines for action on people


related business issues and HR program.

Human Resources Programs articulated as


Human Resources strategic.

Coordinates efforts to facilitate change to


address major people related business
issues.

Human Resources Practices for leadership,


managerial and operational roles.

Motivates needed role behaviors.

Human Resources processes for the


formulation and implementation of other activities.Defines how these activities are carried out

STRATEGIC HRM ACTIVITIES


HR Philosophy
HR Policies.
HR Programs.
HR Practices.
HR Processes.
Responsibilities:
Staffing.
Retention.
Development.
Adjustment.
Managing Change.

OBJECTIVES OF HRM DEPARTMENT


BROAD OBJECTIVE
TO OPTIMIZE THE USEFULNESS OF ALL WORKERS IN AN
ORGANISATION

SPECIAL OBJECTIVE
TO HELP LINE MANAGERS MANAGE THOSE WORKERS
MORE EFFECIVELY.
The HR Department accomplishes this special objective
through policy initiation and formulation, advice, service
and control in resonance with line managers.
THUS THE HR RESPONSIBILITIES ARE SHARED BY THE HR
DEPARTMENT AND LINE MANAGERS.

CRITICAL HR PROCESSES
Training and Development
Policies Implementation
Systems Update and Procedures Improvement
Practices and Processes Development
Knowledge, Skills and Abilities Development
Identification of Future HR Requirement
Leadership Development

ROLES OF HR MANAGER
Business Person.
Shaper of Change.
Consultant to the Organization and Partner
Line Managers.

to

Strategy Formulator and Implementers


Talent Manager (i.e. Network With Professional Colleagues,
Including Recruiters, line Managers, and Other HR
Professionals)
Asset Manager and Cost Controller (Based on
Understanding Financial and Accounting Procedures.)

CHALLENGES FACED BY
HR MANAGERS
Changing Mix of Work Force.
Changing Personal Values.
Expectations of Employees.
Levels of Productivity.
Demands and Government Regulation.