IMPORTANCE AND SCOPE

OF HRM
 THE CONCEPTS OF SYSTEM-
SUBSYSTEM
 INPUT-PROCESSING-OUTPUT
 WHOLE VS PART
 INTERDEPENDENCE
 BUSINESS ORGANIZATION AS A SYSTEM
 SUBSYSTEMS IN THE BUSINESS SYSTEM
 FINANCE SUBSYSTEM
 TECHNICAL SUBSYSTEM
 MARKETING SUB SYSTEM
 MATERIAL SUBSYSTEM
 HRM SUBSYSTEM
 HRM AS CENTRAL SUBSYSTEM

FINANCE
SUBSYSTEM

MATERIAL HRM TECHNICAL

SUBSYSTEM SUBSYSTEM SUBSYSTEM

MARKETING
SUBSYSTEM
 HOW HRM IS A CENTRAL
SUBSYSTEM?
 Close and continuous interaction with other subsystems
of the organizations
 Policies, programmes and practices of HRM- Impact on
quality of people in other subsystems
 Quality of human resources-Success of the organization
 Importance at FOUR levels:
 Corporate
 Professional
 Social and
 National
 Significance for Enterprise
 Helps an organization achieve its goals more efficiently
and effectively by:
 Attracting and retaining required talent- How?
 Developing necessary skills and right attitudes through
training and performance appraisal
 Securing willing cooperation of the employees through
motivation, participation and grievance handling
 Effective utilization of available human resources
 Ensure team of dedicated and competent employees
for future
 Professional significance
 Quality of work life-Team work-Healthy working
environment
 Contribution to professional growth:
 Maximum opportunities for personal development
 Healthy relationships between individuals and
groups
 Proper allocation of work
 Social significance
 Sound HRM-Great significance for society
 Enhance dignity of labor by:
 Providing suitable employment-social and psychological
satisfaction to people
 Balance between available jobs and jobseekers in
terms of numbers, qualifications, needs and aptitudes
 Eliminating waste of human resources through
conservation of physical and mental health
 National significance
 Development of a nation
 Effective utilization of nation’s physical and financial
resources- efficient and committed manpower
 Countries-resources-quality of people-developed
and underdeveloped
 Level of development of a country-skills, values and
attitudes of human resources
 Effective management of human resources-speed up
economic growth-high standard of living and fuller
employment
 SCOPE OF HUMAN RESOURCE
MANAGEMENT
 Dale Yoder- Scope of HRM consists of the following
functions:
 Setting management policy for organizational
relationships establishing of suitable leadership and
cooperation
 Collective bargaining, contract negotiation, contract
administration and grievance handling
 Staffing the organization-finding, getting, and
holding prescribed types and numbers of workers
 Scope of HRM
 Aiding self-development of employees
 Developing and maintaining motivation for workers
through incentives
 Renewing and auditing manpower management in
the organization
 Industrial relations research- Designing studies to
explain employee behavior-Improvement in human
captial
 Indian Institute of Personnel
Management-Scope of HRM
ASPECT CATEGORIES
Manpower planning, recruitment, selection,
placement, induction, transfer, promotion,
The Labor or personnel aspect demotion, termination , training and
development, remuneration, incentives
and productivity
Working conditions, amenities such as,
canteens, crèches, restrooms, lunch rooms,
The welfare aspect housing, transport, education, medical
help, health and safety, recreation and
cultural facilities.
Company’s relations with the employees-
Union Management relations, Joint
The Industrial relations aspect consultation, Negotiation, Collective
bargaining, grievance handling, discipline,
settlement of industrial disputes
 Conclusion

 Human element is different from mechanical

element