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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

What is Human Resource Management?

Human resource (HR) management refers to the practices and policies one needs to carry out to deal with the personnel aspects of the management job Human resource management (HRM) is the effective management of people at work The goal: make workers more satisfied and productive When an organization is concerned about people, its total philosophy, culture, and orientation reflect it Every manager must be concerned with people, whether or not there is a human resources department

Scope of HRM

Importance of HRM
attract and retain talent
train people for challenging roles develop skills and competencies promote team spirit Good HR Practices help

develop loyalty and commitment


increase productivity and profits improve job satisfaction enhance standard of living generate employment opportunities

Image and Quality of HR/Personnel Manager


Fairness and firmness Tact and resourcefulness Sympathy and consideration Knowledge of labor and other terms Broad social outlook Others and Academic qualifications

Functions of HRM
P/HRM
Operative Functions
Procurement Job Analysis HR planning
Organizing

Managerial functions:

Planning

Development: Training Executive development

Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration Incentives benefits and services

Maintenance: Health Safety Welfare Social security

Integration: Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerment

Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS

Recruitment Selection Placement

Career planning
Succession planning Human resources development strategies

Directing

Induction Internal mobility

Controlling

Trade unions
Employers associations Industrial relations

Job stress
Mentoring International HRM

HRM as a central subsystem in an organization


Product Subsystem

Finance Subsystem

HR Subsystem Procurement Training Compensation Appraisal Rewards

Marketing Subsystem

Technical Subsystem

A Brief History of HRM

HRM can be traced to England, where craftspeople organized guilds They used unity to improve working conditions The Industrial Revolution in the 18th century laid the basis for a new, complex industrial society Changing work conditions, social patterns, and labor created a gap between workers and owners During the world wars era, scientific management, welfare work, and industrial psychology merged

A Brief History of HRM

Frederick W. Taylor, the father of scientific management, summarized scientific management as: Science Harmony Cooperation Maximum output Industrial psychology, initiated in 1913, focused on: The worker Individual differences The maximum well being of the worker

A Brief History of HRM

Personnel departments were created to deal with: Drastic changes in technology Organizational growth The rise of unions Government intervention concerning working people Around the 1920s, more organizations noticed and acted on employee-management conflict

A Brief History of HRM

The Hawthorne studies (1924 to 1933): Were to determine the effects of illumination on workers and their output Rather, it pointed out the importance of social interaction on output and satisfaction Until the 1960s, the personnel function was concerned only with blue-collar employees File clerk, house-keeper, social worker, firefighter, and union trouble defuser

Evolution of the Personnel Function


Concept The Commodity concept What is it all about? Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production concept


The Goodwill concept

Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.
Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.
Cont

The Paternalistic concept/ Paternalism

Evolution of the Personnel Function


The Humanitarian concept To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organization is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organization. There should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organization is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

Personnel Function in India; Changing Scenario


Period 1920 30 Emphasis Welfare management Paternalistic practices Status Clerical Roles Welfare administrator Appraiser Advisor Mediator Legal advisor Fire fighting 1940 60 Expanding the role to cover Labour, Welfare, Industrial Relations and Personnel Administration 1970 80 Efficiency, effectiveness Change agent dimensions added Emphasis on human Incremental productivity gains through human assets aspirations, values, Administrative

Developmental

Integrator 1990s onwards Trainer Proactive, growth-oriented Educator Developer Counsellor Coach Mentor Problem solver

Objectives of HRM

Objectives of the HRM Function

HRM contributions to organizational effectiveness: Helping the organization reach its goals Employing workforce skills and abilities efficiently Increasing job satisfaction, self-actualization, and quality of work life Communicating HRM policies to all employees Maintaining ethical policies and socially responsible behavior Managing change to the mutual advantage of individuals, groups, the enterprise, and the public

Objectives of the HRM Function

Increasing employees job satisfaction and selfactualization Employees must feel that the job is right for their abilities and that they are being treated equitably Satisfied employees are not automatically more productive However, unsatisfied employees tend to be absent and quit more often and produce lower-quality work Both satisfied and dissatisfied employees can perform equally in quantitative terms

Objectives of the HRM Function

Quality of work life (QWL) is a general concept that refers to several aspects of the job, including: Management and supervisory style Freedom and autonomy to make decisions on the job Satisfactory physical surroundings Job safety Satisfactory working hours Meaningful tasks The job and work environment should be structured to meet as many workers needs as possible

Objectives of the HRM Function

Communicating HRM policies to all employees: HRM policies, programs, and procedures must be communicated fully and effectively They must be represented to outsiders Top-level managers must understand what HRM can offer

Objectives of the HRM Function

Maintaining ethical policies and socially responsible behavior: HRM managers must show by example that HRM activities are fair, truthful, and honorable People must not be discriminated against Their basic rights must be protected These principles should apply to all activities in the HRM area

Objectives of the HRM Function

Managing increased urgency and faster cycle times: Firms are placing a growing emphasis on: Increasing customer service Developing new products and services Training and educating technicians, managers, and decision makers Shorter cycle times mean less time to: Train, educate, and assign managers Recruit and select talented people Improve the firms image Learning provides a framework for decreasing cycle time

HRMs Place in Management

The HR department must be a proactive, integral part of management and strategic planning Ascertain specific organizational needs for the use of its competence Evaluate the use and satisfaction among other departments Educate management and employees about the availability and use of HRM services HRM strategic plans must build on the firm's strengths

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