Nature And Scope Of HRM

Introduction :
HRM is a process of making the efficient and effective use of human resources so that the set goals are achieved . Definition: According to Flippo, Personnel management, or say. 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.

Comparison Between HRM and PM

Human Resource M ment(HRM) Personnel M ment (PM)

Nature Of Relations :
Pluralist (more than 1)

Nature Of Relations :
Unitarist or neo-unitarist (single).

Perception Of Conflict :
Conflict is institutionalized (establish as an accepted part of an organization).

Perception Of Conflict :
Conflict is pathologic (informal compulsive).

Contract :
Beyond contract-commitment

Contract :
Emphasis on compliance.

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Human Resource M ment(HRM) Personnel M ment (PM)

Role of Procedure:
Rules Dominated

Role of Procedure:
Culture & values dominated

Planning Perspective:
Ad hoc, reactive

Acceptability of unions:
Acceptable

Planning Perspective : Integrated, proactive Acceptability of unions:

Not Desirable

Level of trust:
Low

Level of trust:
High

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Human Resource M ment(HRM) Personnel M ment (PM)

Key Relation:
Labour management.

Key Relation:
Customer.

M ment s Role :
Transactional.

M ment s Role:
Transformational

Basis of job design:

Division of labour.

Basis of job design:

Teams.

Key People:
PM/IR specialists.

Key People:
Line people and general managers.

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Human Resource M ment(HRM) Personnel M ment (PM)

Skill Acquisition:
Training & Development.

Skill Acquisition:
Learning Organization.

Reward Management:
Standardized job evaluation.

Reward Management:
Performance related.

HRM Objectives and Functions

HRM Objectives
1. Societal Objectives -

Supporting Functions
a) Legal compliance b) Benefits c) Union-management relations a) b) c) d) e) f) g) Human resource planning Employee relations Selection Training and development Appraisal Placement Assessment

2. Organisational Objectives -

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HRM Objectives
3. Functional Objectives -

Supporting Functions
a) Appraisal b) Placement c) Assessment a) Training and development b) Appraisal c) Placement d) Compensation e) Assessment

4. Personal Objectives -

Control
Human Resource Audit Human Resource Accounting Human Resource Information System

Acquisition
Human Resource planning Recruitment, Selection Planning .

Human Resource Management

Maintenance
Remuneration Motivation Health & Safety Social Security Industrial Relations Performance Appraisal

Development
Training, Career, Development Organization Development Internal Mobility.

Functions of Human Resource M ment

Managerial Functions
Planning Organising Directing Controlling

Operative Functions
Procurement Development Compensation Integration Maintenance

Operative Functions - Cntd

Procurement
Job Analysis Human Resource Planning Recruitment Selection Placement Induction Transfer Promotion Separation

Operative Functions - Cntd

Development
Performance Appraisal Training Executive Development Career Planning & Development Job Evaluation Wage And Salary Administration Bonus And Incentives Payroll

Compensation

Operative Functions - Cntd

Integration Motivation Job Satisfaction Grievances Redressal Collective Bargaining Conflict Management Participation of Employees Discipline

Operative Functions - Cntd

Maintenance
Health Safety Social Security Welfare Schemes Personnel Records Personnel Research Personnel Audit

Recruitment
Introduction :
Recruitment is the generating of application or applicants for specific positions to be filled up in the organisation . In other words, it is a process of searching for and obtaining applicants for jobs so that the right people in the right number can be selected.

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Definition :
By Flippo, has defined recruitment as, a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. According to Bergmann and Taylor, Recruitment is the process of locating, identifying, and attracting capable applicants.

Factors Affecting Recruitment

Internal Factors :
1. Size of the Organisation. 2. Recruiting Policy. 3. Image of Organisation. 4. Image of Job.

External Factors :
1. Demographic Factors. 2. Labour Market. 3. Unemployment Situation. 4. Labour Laws. 5.Legal Consideration.

Sources of Recruitment
Internal Sources
Present Employees Employee Referrals Former Employees Previous Applicants Screening

External Sources
Employment Exchanges Advertisements Employment Agencies Professional Associations Campus Recruitment Deputation Word-of-Mouth Raiding.

Personnel Planning

Job Analysis

Employee Requisition

Screening

Job Vacancies

Recruitment Planning - Numbers - Types

Searching Activation Selling - Message - Media

Applic ant pool

Poten tial Hires

To Selection

Strategy Development - Where - How - When

Applicant Population

Evaluation and Control

Qualities Of HR Manager
Managerial Qualities :
1. Intelligence 2. Conceptual Qualities 3. Analytical Qualities 4. Motivational Qualities 5. Emotional Stability

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Job Related Qualities :
1. Empathy 2. Communicative and Persuasive Quality 3. Human Relations Quality 4. Technical Quality

Role Of HR Manager
Role Of Human Resource Manager
Administrative
1. Policy maker 2. Administrative expert 3. Advisor 4. Housekeeper 5. Counselor 6. Welfare officer 7. Legal consultant

Operational
1. Recruiter

Strategic

2. Trainer developer, motivator 3. Coordinator/linking pin 4. Mediator 5. Employee champion

Organization Of HRM Department

Position Of HRM Department:
Owner/ Manager

Product Manager

Sales Manager

Office Manager

Accountant

Personal Assistant

HRM in a Small-Scale unit

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Chairman and Managing Director

Director Production Director Finance

Director Personnel/ HRM Director Marketing

Director R&D

HRM in a Large-Scale Unit

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Owner / Manager
ManagerPersonnel ManagerAdministration ManagerHRD Manager IR

Appraisal

Training & Development

PR

Canteen

Medical

Welfare Transport

Legal

Human Resource Planning

Hiring

Grievance Handling

Compensation

HRM in Composition Level Unit

Role Of HRM Department

Role Of HRM Department:

Role Of HRM Department

Executive Role Audit Role Consultancy Role

Facilitator Role

Service Role

Limitations Of HRM
The most important limitation of HRM is that it is influenced by the environmental factors (external & internal). Lack of concentration on the human resource development. Dominating nature and attitude of managers in various activities and functions of HRM. HR managers lack the strength of personality to convince the top management about changes required in the HR policy. The HR manager may be inadequately informed about the organization s strategy.

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Sometimes, there is lack of understanding of value of HR in managers. The importance given to HRM in the strategy may be inadequate. HR policy will remain unattended if there is lack of top management support. It is based on unitary approach. HRM is based on the assumption that every one in the organization agrees to pull in a common direction and they have shared interests. But in actual, it is based on plurality of interest like shareholder interests, manager interests, employee interests etc.

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HRM is subordinate to and not integrated with, wider business policy. It does not provide a consistent set of policies and procedures which together constitute a guiding set of principles. HRM does not represent a coherent or consistent approach to the management of employees. It reflects inconsistent distinction between hard and soft HRM approach. It fails to constitute a clear or distinctive management style.

Challenges before HRM

Challenges before HRM :
Challenges before HRM Globalization Managing Change Containing Costs Partnership between Line M ment & HRM Knowledge M ment Challenge Relating to Training Challenge Pertaining to Org Culture New Technology Market Challenges Demographic Challenges Skill Shortages Changing Power Structures Challenge of Diversity & Equality Challenge of Emerging Workplace Issues

Human Resources Planning (HRP)

Meaning:
Human resources planning also known as manpower planning is essentially the process of getting the right number of qualified people into the right job at the right time. It is system of matching the supply of people (existing employees and those to be hired or searched for) with openings the organization expects over a given time frame.

Definition:
According to Bruce P. Coleman, Manpower planning is the process of determining manpower requirements in order to carry out the integrated plan of the organization.

Need /Reasons For Increasing HRP

Employment-Unemployment Situation. Technological Changes. Organizational Changes. Demographic Changes. Skill Shortages. Governmental Influences. Legislative Controls. Impact Of Pressure Groups. Systems Concepts. Lead Time.

Features Of Human Resource Planning

Well Defined Objectives. Determining Personnel Needs. Having manpower Inventory. Adjusting demand and Supply. Creating Proper Work Environment. Development Of Policies. Complementary to Organization Planning. Dynamic Activity.

Objectives Of Human Resource Planning

Objectives of HRP are as shown in figure:
Objectives Of Human Resource Planning

Forecasting Human Resource Requirements Effective Management of Change Provide Information Economic Development

Analyze Current Workforce

Realizing Organizational Goals Effective Utilization Of Human Resource Determine Manpower Gap

Activities of Human Resource Planning

Activities are as follows:
Activities Of Human Resource Planning

Preparing an Inventory of Present Manpower Forecasting Future Manpower Requirement Meeting Manpower Requirements Anticipating Problems of Manpower

Types Of Human Resource Planning

Types of Human Resource Planning :
Types Of Human Resource Planning On the Basis of Level Macro Level Manpower Planning Micro Level Manpower Planning On the Basis of Time Span Short-Term Human Resource Plan Intermediate-Term Human Resource Plan Long-Term Human Resource Plan

Process Of Human Resource Planning

HRP Process:
Environment

Organizational Objectives & Policies HR Demand Forecast HR Supply Forecast

HR Programming

HR Implementation Control & Evaluation of Program Surplus Restricted Hiring Reduced Hours VRS Lay off, etc. Shortage, Recruitment and Selection.

Factors Influencing Estimation Of Human Resource

Factors :
External Factors
Government Policies Level Of Economic Development Business Environment Level Of Technology International Factors

Internal factors
Company Policies & Strategies Human Resource Policies Job Analysis Time Horizons Type & Quality of Information Company s Production Operation Policy Trade Unions

Factors Influencing Estimation of Human Resource