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It is a really important for me to spend more time with my people. We have had a number of HRD consultants, but HRD initiatives are time consuming & one has to be patient for cultural & mind set changes.


According to Rama Chandran,MD,Philips India My human Resource Department is the centre of competence

A.F.Ferguson & Co Arvind Mahajan,Director The only way you can be different is in a way you manage people

Brian Friedman
It is important to realize that employees are your greatest asset. Unlike other assets, people are the only asset which does not, depreciate over time. On the contrary the more you use them ,the better they get over time. Their value keeps on appreciating with the passage of time(on his visit to India --- 1998)

At Hindustan Lever the accent is on hiring people who are even better than the ones at HLL. HLL now is a people & strategy company.

Marico industries: Harsh Mariwala,owner I am very sensitive about losing star performers. If the guy is valuable ,we give him far higher remuneration to keep him happy.

America ErickMayer created history on 25.5.2001 by becoming the first blind person to scale Mount Everest. Erick at 32 who lost his eyes sight due to generative disease at the age of 13 ,set foot on the 8848 meter peak along with 17 other members of an expedition team after an unsuccessful attempt earlier due to bad weather conditions

An hour before Erick Brand ford Bull earned the distinction of being the oldest climber to set foot atop the worlds highest peak at the age of 65 along with his son.


Human Resources: People with

required skills to make an organisation are generally referred to as human resources







Meaning of Human resources According to Leon.C.Megginson,the term HR can be thought of as the total knowledge ,skills, creative abilities, talents & aptitudes of an organization's workforce ,as well as the value ,attitudes & beliefs of the individuals involved.


In simple sense HRM means employing the people ,developing their resources ,utilising,maintaining & compensating their services in tune with the job & organisational requirements with a view to contribute to the goals of the organisation,individual & the society..


Definition In short: HRM may be defined as the art of Procuring, Developing, Motivating and Maintaining competent workforce to achieve the goals of an organisation in an effective and efficient manner.

HRM is the art of managing people at work in such a manner that they give their best to the organisation. HRM is concerned with the most effective use of people to achieve the goals of an organizational & individual goals.

Michael.J.Jucius defined Personnal Management as the field of management which has to do with palnning,organising,directing & controlling the functions of procurring the functions of procuring,developing ,maintaining & utilizing a labour force,such that the 1.Objectives for which the company is established are attained economically & effectively. 2.Objectives of all levels of personnel are served to the highest possible degree. 3.Objectives of society are duly considered are served.

Meaning of HRD:
Human resource is an important resource in an organization. Human resource is utilized in the best possible way to reach organizational goals. The enhancement of the utilization value of human resource depends on the important of the human resource aspects like, skill, knowledge, creative abilities and talents in accordance with the changing requirement of groups, organizations and society at large. This is the essence of Human Resources Development; therefore human resources development improves the utilization value of an organization.


centre. Located at Peshawar . To develop the managerial and technical skills of community members. To design & implement the managerial and technical capacity building training of community members, identified by their respective community

HRD is mainly concerned with developing the skills, knowledge, and competencies of people and it is people oriented concept. HRD can be applied both for the national level and organization level. HRD is not essentially training and development. HRD is having broader meaning apart from training and development. T.Venkateswara Rao has worked extensively on HRD. He defines HRD in the organizational context as a process by which the employees of an organization are helped in a continuous,

planned way to acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles. Develop their general capabilities as individuals and discover and exploit their own inner potentials for their own / or organizational development purposes. Develop an organizational culture in which superior-subordinate relationship, team work and collaboration to the professional well-being, motivation & pride of employees.

HRD from the organizational point of view is a process in which the employees of an organizational are helped/ motivated to acquire and develop technical, managerial and behavioral knowledge, skills and abilities. And mould the values, beliefs and attitudes necessary to perform present and future roles. By realizing the highest human potential with a view to contribute positively to the organizational, group, individual & social goals. Information technology is extensively used in HRD.

Features of HRD
HRD is a systematic and planned approach for the development of individual in order to achieve organizational, group & individual goals. HRD is a continuous process for the development of techniques, managerial, behavioral & conceptual skills & knowledge. HRD develops the skills and knowledge not only at the individual level, but also at dyadic level, group level and organizational level.

HRD is multi-disciplinary. It draws inputs from engineering, technology, psychology, anthropology, management, commerce, economics, medicine etc HRD comprises of techniques & processes. They include performance appraisal, training, management development, career planning and development, organization development, counseling, social & religious programmes, employee involvement / workers participation, quality circles etc HRD is essential not only for manufacturing and service industry but also for information technology industry.

Need for HRD

Changes in economic policies: (LPG) Changing job requirements: dynamic jobs Need for multi-skilled human resource: cost reduction Organizational viability & transformation process: changing as per the environment Technological advances: latest machines Organizational complexity: complex products & manufacturing technology Human relations: respecting human relations , in the changing environment.

Role of training in HRD

HRD plays vital role in Human resources management process. Training plays the most important role in the HRD. Training helps the organization to impart basic technical skills and knowledge to the employees. Technical skill is the basic component of human resource that is most essential for employee performance. No organization can get a candidate who exactly matches with the job and the organizational requirements. Hence training is important to develop the employee and make him suitable to the job.

Job and organizational requirements are dynamic. They are changed from time to time in view of technological advancement and trends. Hence total quality management (TQM) is essential in the world of Globalization and competition in a continuous manner. TQM can be achieved by training the employees continuously. Trained employees are the assets of a company.

Hence training is very important and contributes to the HRD, which in turn contributes to the organizational efficiency, productivity, progress and development to a greater extent. Thus training plays an important role in the framing of HR policies and objectives & strategies.

Hence HRD strategies in the era of Globalization in India would be listed as below 1. Right sizing of employees 2. Empowerment of employees 3. Competence building 4. Commitment building 5. TQPM (total quality & productivity management) 6. Continuous improvement process (CIP) 7. Developing value system 8. Creating learning organizations 9. Developing the skills of adoptability 10. Encouraging creativity & innovation


Role of HRD Manager:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. HR Manager has a versatile role in an organization . these include HR planning Recruitment Selection Placement Induction & recreation Performance appraisal Training & development Career planning Organizational development Compensation Social & cultural performance Quality circles Team work Coordination with top management & workers

Objectives of HRM. Organization of HRM. Strategic HRM. Employment. Development. Wage & salary administration. Maintenance. Motivation. Industrial Relations. Participative management. Recent developments in HRM

Nature of HRM

EMPLOYEE HIRING Industrial relations

Employee remuneration

Scope of HRM

Employee maintenance

Employee motivation

HRM can be defined as managing (Planning,organising,directing,& controlling)the functions of employing,developing & compensating human resources resulting in the creation & development of human relations with a view to contribute proportionately to the organisational ,individual &social goals.

Features Of HRM
1. Human resource management is concerned with employees both as individuals & as a group in attaining goals. 2. It is concerned with the development of human resources. 3. HRM covers all levels(low,middle,&top)& categories(unskilled,skilled,technical,profes sional,clerical&mangerial) of employees.

4. It applies to the employees in all the types of organizations in the world like Industry Service. Commerce. Economic. Social. Religious. Political & government depts

5.HRM is continuous & never ending process.

6.It aims at attaining the goals of: Organisation. Individual. Society 7.HRM is a responsibility of all line mangers & a function of staff mangers in an organisation..

8.It is concerned mostly with managing human resources at work.

9.HRM is the central subsystem of an organisation & it permeates all types of functional management namely
Production Management Marketing Management. & Financial Management

10.HRM aims at securing unreserved cooperation from all employees in order to attain predetermined goals.

History of HRM
1800-early 1900 Scientific Management Movement Focus on processes, cost reduction and pay for performance Job simplification and focus on rules Human Relations Model 1920-1940s View from employees perspective Focus on social environment working conditions, supervisors style, mgmt philosophy

History of HRM
HRM Movement started back in the 1900present Increase of HR department responsibilities from strictly admin to include: legal compliance, performance appraisals, recruitment, screening, corporate change etc. Closer examination of worker motivation beyond previous two based on nature and scope of job, social influences, compensation, incentive systems, organizational culture, climate supervisors style, and individual needs and values


Meaning and Definition of PM

E.B FLIPPO- The personnel function is concerned with the procurement development,compensation ,integration, and maintainance of personnel of an organisation for the purpose of contributing toward the accomplishment of that organisations major goal. Hence Pm is planning organising,directing and controlling of the functions.

It is that part of mangement funtion which is primarily concered with human relationships with in the organisation.

Differences B/w Personnel management & HRM

PM Personnel means persons employed. PM views man as an economic man who works for money or salary. It is narrow in scope HRM HRM treats people as human beings having economic ,social,& psychological needs It is broader in scope

Dimension Beliefs & assumptions Guide to management Behaviour referrent Managerial Tack v/s Labour Nature of relations Conflict



Clear rules, Business procedures need Norms/customs Values/Mission Monitoring Pluralist Nurturing Unitarist

Institutionalized De-emphasized

Strategic Aspects

Key relations
Corporate plan Speed of decision

Labour management Marginal to


Central to Fast

Line management Management Role Transactional Transformation al Leadership Direct Low Facilitation

Communication Indirect Standardization High Prized management skills Negotiation

Key Levers Selection Pay Conditions Job Categories Separate, Marginal Test Job Evaluation fixed Grades) Separately Negotiated Many Integrated, Key Task Performance Related Harmonization Few Increased Flow Team Work

Communicatio Restricted Flow n Job Design Division of labour


Controlled Access

Learning Companies

Function of personnel department

MANAGERIAL FUNCTIONS 1. Planning 2. Organising 3. Directing 4. Motivating 5. Controlling


1. Procurement 2. Development 3. Compensation 4. Integration 5. Maintenance 6. Records, Research and Audit

1. It manages Ms(Man,Money,Material,Machine)efficiently and effectively. 2. It is essential for cost reduction(time and money). 3. It controls wastage of resources and activities of production. 4. No organisation can function without human resources. 5. The success of organisation is is determined by the quality of HR.

Difference between PM and HRM

PM It is the management of employees skills(talent,abilities) Employees is treated as economic man Employees is viewed as commodity or tool Employees is treated as cost center.

1. It is management of people employed 2. Employees are treated as social man 3. Employees are viewed as resources. 4. Employees are treated as profit center.

2. 3.


Difference between PM and HRM

PM 5.They are used for organisational benefit. 6.It was considered as an auxiliary function. 7.It includes division of labour. 8.Decision making is slow. 9.Indirect communication.

5.They are used for mutual benefit. 6.It is strategic management function. 7.It includes teamwork 8.Decision making is fast. 9.Direct communication

Primary Functions of HRM

1. 2. 3. 4. 5. 6. 7. Human resource planning Equal employment opportunity Staffing (recruitment and selection) Compensation and benefits Employee and labor relations Health, safety, and security Human resource development

Secondary HRM Functions

1. Organization and job design 2. Performance management/ performance appraisal systems 3. Research and information systems

Functions of HRM
HRM Concerned with two sets of functions 1. Managerial Functions 2. Operative Functions

Managerial Functions Planning: Recruitment,Selection & training Organinsing: Grouping Personnel activities, Assignment, & Delegation: Authority. Directing: Supervising, Guiding & Motivating the Personnel. Controlling: Measuring Employees Performance, Correcting negative deviations & assuring accomplishment of Plans.





Human Relations

Effectivenes Of HRM

HR Planning Recruitment Selection

Per.App. Training MDP

Job Evaluation Wage & Salary Admn.


Job Satisfaction Labour turnover Absenteeism Productivity

Induction & Orientation

Career Planning

Bonus Fringe Benefits Social Security Measures

HRM as a Central Subsystem








MANEGERIAL FUNCTIONS. 1.Planning. 2.Organising. 3.Directing. 4.Controlling

OPERATIVE FUNCTIONS 1.Employment. 2.HRD. 3.Compensation. 4.Huamn Relations. 5.Industrial Relations. 6.Recent Trends in HRM

1.Planning. It is predetermined course of action. Planning pertains to formulating strategies of personnel programmes & changes in advance that will contribute to the organisational goals. In other words it involves planning of human resources requiremnets,selection,training.

2.Organising An organisation is a means to an end. It is essential to carry out the determined course of action. Complex relationships exist b/w the specialized & general departments as many top managers are seeking the advice of the personnel manager Thus an organisation establishes relationships among the employees so that they can collectively contribute to the attainment of company goals.

3.Directing Execution of plan. The basic function of personnel management at any level is motivating,commanding,leading,& activating people. The willing & the effective co-operation of employees for the attainment of organisational goals is possible through proper direction.

4.Controlling Controlling involves checking, verifying, & comparing the actuals with the plans,identifiaction of deviations if any & correcting of identified deviations. Thus action & operation are adjusted to predetermined plans & standards through control.

The operative functions of HRM are related to specific activities of personnel management namely Employment. Development. Compensation. Relations

Operative Functions
1.Employment First operative function of HRM. Employment is concerned with securing & employing the people possessing the required kind & level of human resources necessary to achieve the organisational objectives. It covers functions such as Job Analysis. Human Resource planning. Recruitment.

Selection. Placement . Induction. Internal Mobility

HRP It is a process for determination & assuring that the organisation will have an adequate no of qualified persons, available at proper times ,performing jobs which would meet the needs of the organisation& which provide satisfaction for the individual involved.

Recruitment: It is a process searching for prospective employees & stimulating them to apply for jobs in an organisation. Selection: It is process of ascertaining the qualifications ,experiences,skills,knowledge etc of an applicant with a view to appraising his/her suitability to a job. Placement: It is a process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching employee specifications with job requirements.

Induction & Orientation: These are the techniques by which anew employee is rehabilitated in the changed surrounding & introduced to the practices,policies,purposes & people of the organisation.

HRD: It is a process of improving,moulding,& changing the skills, knowledge, creative ability,aptitude,values, commitment etc based on the present & future requirements








Performance Appraisal It is a systematic evaluation of individuals with respect to their performance on the job & their potential for development.
Training: It is a process of imparting to the employees technical & operating skills & knowledge. Management Development It is a process of designing & conducting suitable executive development programmmes so as to develop the managerial & human relations skill of employees.

Career Planning: It is planning of ones career & implementation of career plans by means of education,training,job search & acquisition of work experience. It includes internal & external mobility. Internal mobility includes vertical & horizontal movement of an employee within an organization. It consists of transfer, promotion, demotion.

Transfer It is a process of placing employees in the same level jobs where they can be utilised more effectively in consistence with their potentialities & needs of the employees & the organization. Promotion-- deals with upward reassignment given to a n employee in the organization to occupy higher position which commands better status keeping in view the HR of the employees & the job requirements.

Demotion: It deals with downward reassignment to an employee to an employee in the organization Change & organization development: Change implies the creation of imbalances in the existent pattern or situation. OD is a planned process designed to improve organizational effectiveness & health through modifications in individual & group behavior culture & systems of the organization using knowledge & technology of applied behavioral sciences.

Job evaluation It si a process of determining relative worth of jobs. Select suitable job evaluation techniques. Classify jobs into various categories. Determining relative worth of jobs. Wage & salary administration This is a process of developing & operating a suitable wage & salary programme.It covers Conducting wage & salary survey.

Determining the wage & salary rates based on various factors. Administering wage & salary programmes. Evaluating its effectiveness. Incentives: It is a process of formulating ,administering,& reviewing the schemes financial incentives in addition to regular payment of wages & salary.

It includes: Formulating incentive payment schemes. Helping functional mangers on the operation. Review them periodically to evaluate effectiveness Bonus: It includes payment of statutory bonus according to the payment of Bonus act 1965.

Fringe Benefits: These are the various benefits at the fringe of the wage. Management provides these benefits to motivate the employees & to meet their lifes contingencies. These benefits include Disablement benefit. Housing Facilities. Educational facilities to employees & children. Canteen Facilities. Recreational facilities.

Conveyance facilities. Credit facilities. Legal clinics. Medical, maternity facilities. Welfare facilities. Company Stores.
Social security Measures


It is a process of interaction among human beings. Human Relations is an area of management in integrating people into work situations in a way that motivates them to work together productively ,co-operatively& with economic ,psychological & social satisfaction. It includes the following Motivating the employees. Boosting Employee morale. Developing the communication skills.

Developing the leadership skills. Redressing employee grievances properly . Counseling the employees. Providing a comfortable work environment . Improving quality of work life.

Industrial Relations refers to the study of relations among employees employer,govt,& trade unions. It includes the following: Indian Labour Market. Trade Unionism. Collective bargaining. Industrial conflicts. WPM. Quality circles.

Recent trends in HRM

Quality of work life. Total quality in HR. HR accounting. HR audit. Research.

1. 2. 3. 4.

6. 7.






HRM Policy: A policy is a plan of action. Brewster & Rich bell defined HRM Policies as set of proposals & actions that act as a reference point for managers in their dealings with employees. Personnel policies constitute guides to action. They furnish general standards or bases on which decisions are reached.

Their genesis lies in an organization s values,philosophy,concepts & principles Personnel policies guide the course of action intended to accomplish personnel objectives. What is HRM Procedure? Policies are general instructions where as procedures are specific applications. A procedure is a course of action. It prescribes the specific manner in which apiece of work is to done.

Procedures are Action guidelines". They are generally derived from policies . Policies define a broad field, procedures show a sequence of activities within that area. The emphasis is on chronological, stepby step sequence of required actions. The basic purpose of a procedure is to spell out clearly the way one is to go about doing something.

Comparison b/w Policies & Procedures

Policies are general instructions where as procedures are specific applications Policies define a broad field, procedures show a sequence of activities within that area The emphasis is on chronological, step-by step sequence of required actions A procedure is a course of action. It prescribes the specific manner in which apiece of work is to done. Procedures are Action guidelines". They are generally derived from policies . The basic purpose of a procedure is to spell out clearly the way one is to go about doing something.

Personnel Programmes

Personnel Programmes are complex sets of goals ,policies,procedures,rules,steps to be taken ,resources to be employed & other elements necessary to carry out a given course of action. Rules & programmes are aids to policy\.

LINE & STAFF RELATIONSHIPS. The relationship with which the mangers in an organization deal with one another are broadly classified as 1.Line Relationship. 2.Staff Relationship
Operating mangers/Departments---Line Service Departments---- Staff Line & Staff are characterized by relationship but not by departments.

Line relationship

The relationship existing b/w 2 managers due to delegation of authority & responsibility & giving or receiving instructions or orders is called line relationship. Line refers to those positions of an organization which have responsibility ,authority & are accountable for accomplishment of primary objectives. Line authority represents series of authority & responsibility delegating down the management hierarchy.

Line authority











The relationship b/w 2 mangers is said to be a staff relation ,when it is created due to giving & taking advice ,guidance ,information, help or assistance in the process of attaining organizational goals. Staff mangers analyze problems ,collect information,& develop alternative suggestions Help line mangers to make right decisions quickly.

Staff control is monitoring& reporting which brings the results of information to the a attention of the line mangers for action by the line. Thus they reduce the workload of the line mangers & allow them to concentrate on their operative issues.

HR Manger plays a vital role in the modern organization. He plays various strategic roles at different levels in the organization. The roles of the HR manager includes roles of conscience,counsellor,company spokesman, problem solver & a change agent. The Conscience Role:

Conscience role is that of a humanitarian who reminds the management of its morals & obligations to its employees.
The Counselor

Employees who are dissatisfied with the present job approach the personnel manger for counseling. Employees facing various problems like martial .health,children eduaction,mental,physical & career also approach the personnel managers. The Personnel Manager counsels the employees & offers suggestions to solve problems of the employees.

The Mediator As a mediator the personnel manger plays the role of a peace maker. He settles the disputes b/w the employees & the management. He acts as a communication link b/w both of them.
The spokesman He is a frequent spokesman or representative of the company.

The problem Solver He acts as a problem solver with respect to the issues that involve human resources management & overall long range organizational planning. The Change agent He acts as a change agent & introduces changes in various existing programmes.

HR MANAGER Roles also include: 5Cs & 5 Rs Conscience CounsellerChange Agent Champion reminding the Mgmt. of its morals and obligations to its employees. Personal & official problems Facilitating change Employeess voice

Communication Empathetic, Mediator settling the disputes betwn Labor & Management.

5 Rs HR Role & Responsibilities

Resourcing Recruiting the right talent

Retaining the talent

Restructuring Down sizing & Right sizing Retraining

Duties and responsibilities of a HR manager:

1. 2.


6. 7. 8. 9. 10.

Providing purposeful direction to the firm. Managing survival and growth. Maintaining firms efficiency in terms of profits generation. Meeting the challenge of increasing competition, change and technology. Managing for innovation. Building human organization. Retaining talent and creating sense of loyalty. Sustaining leadership effectiveness. Maintaining balance between creativity and conformity. Learning new management techniques.










T& D








Personnel attributes Intelligence. Educational skills. Discriminating skills. Executing skills. Experience. Training. Professional attributes. Qualifications.

The HR Environment & Challenges

Economic Technological Political Social Demographic

Demographic Legal Cultural

Objectives--- are the predetermined goals to which individual or group activity in an organization is directed. Objectives of personnel management are influenced by social objectives,organisational objectives, functional objectives. Objectives of various organizations: 1.Economic Institutions--- To earn profits. 2.Educational Institutions to impart education.





The fundamental objective of any organization is survival . The objectives of HRM are as follows: To create & utilize an able & motivated workforce, To accomplish the basic organiosational goals. To establish & maintain sound organisational structure. Develop desirable working relationships among all the members of the organisation.

. 5. To secure the integration of individual & groups within the organization coordination of the individual & group goals with those of the organization. 6. To create facilities & opportunities for individual or group development so as to match with the growth of the organization.

7.To attain an effective utilization of human resources in the achievement of organisational goals. 8. To identify & satisfy individual & group needs by providing adequate & equitable wages ,incentives, employee benefits,& social security & measures for challenging work,prestige,recognition,,security,status.

Objectives Of HRM




Objectives of HR Management

Mission - to improve production contribution of individuals while attempting to attain other societal and individual employee objectives

Objectives of HR Management

Organizational - need to focus on companies needs and goals 1st before HRs Societal - need to respond to needs and changes of society, while minimizing the neg. impact on the organization

Objectives of HR Management

Employee objectives - assist employees in meeting their objectives along with the organizational ones Example - 1997 Flood

HR Responsibilities

Can include:

Job analysis Labour planning Selecting employees Orientation Training Compensation management Counseling Communications Performance appraisals Health & safety

HR Department Sets policies normally in writing Monitors trends Offers advice Performs additional research Act as change agent

Strategic HR Management

Need to have an HR strategy to have direction and game plan must encompass the large picture for the Co. priorities, mission

To be effective must obtain, develop, maintain, retain the right combination of worker to facilitate these such goals

Strategic HR Management

Provide environment scanning information about competitors policies/programs Aid in determining companys strengths and weaknesses

Aid companys in preparing for their strategic plans i.e.. expansion, cost cutting measures, mergers etc.

Proactive HR Management

Strategic approach helps to ID & anticipate problems B4 damage is caused production maintained or interruptions reduced

Process of HRM: [A person is an identifiable flow of interrelated events moving toward some good purpose or end]
A process includes a flow of inputs (material, energy or information). A processor or transforming mechanism (a massive or the human being doing the work) and a flow of outcomes or outputs (the product or serious and wast). This process system may also have a mechanism of feedback.

Various process of personnel management is as fallows: The leadership process includes in influencing the individual and group behavior toward achievement of organization goals. It is concerned with traits, philosophy and behavior of the leader, the characteristics of subordinates and the superiors. The justice determination process is concerned with the giving of awards and penalties to the employees in proportion to their relative contribution to the output this provide for equal treatment to all and a fair compensation for the work

The task specialization process is the division of the total task into individual jobs. It consists of setting of organization objectives, job designing, job description and performance standards and training, job specification and work. The staffing process is the more complex process, involving manpower planning, authorization, staffing, developing sources for recruitment, evaluation of applicants, employment decisions offers, indention and orientation, transfer, promotions, demotions and separations etc

The performance appraisal process is concerned with continuous evaluation of the employees work for the purpose of promotion, pay rises, transfer, training etc. Training and development process which aims at correcting the quality of work of the individual through T & D Programmes, employee counseling, offering suggestions etc.

Compensation and reward process determines the mechanism and form for giving financial and non financial rewards, brings benefits etc. for employee motivation. Collective bargaining process is process that determines the relationships between the union and the employer in regard to wages, benefits and working conditions etc. Organization development process is the systematic, integrated and planned approach to improve the organizational effectiveness it is designed to solve the problems at all levels.

From the above, it is obvious that HRM is a major component of the management process and has roots and branches extending throughout and beyond each organization. Personnel manager responsibilities include planning for people, organizing, staffing, directing, developing and controlling the people.

HR Audit

Evaluates the HR departments effectiveness Involves 3 areas: Strategic effectiveness Legislative compliance Effectiveness and costliness of programs Often compared to other organizations plus cost vs. benefit analysis

Organization of HR Department
Lg Company HR Department President/CEO VP HR

Manager Employment

Manager Compensation

Manager Training

Manager Safety

Manager Union




safety specialist

employee counsellors

-many HR duties are assumed by management -HR dept size grows as these duties increase -HR dept increases in size as need grows -specialization also increases with size of dept

Service Role of HR Department

Exists to serve internal customers (managers, employees and organization) normally has an advisory role can also have authority to make decisions if permitted by Co. these can include decisions normally made by operations and/or decisions in certain areas for efficiency and consistence (ie benefits)

HRM Professional

Provincial certification (CHRP) certified HR professional Also Canadian certification (CCHRA) national body plus various degrees with HR specialty

Economic Challenges
A specific countrys economic conditions Global Trade international trade, global economy expansion of Canadian Co to other countries and labor markets

Labour Market Conditions & Labour Unions

Labour Market where an organization recruits employees from Local economic conditions Local climate Is our workforce unionized?

HR & Productivity
Outsourcing is becoming increasing popular assists in decreasing inputs and increase flexibility decreases no of permanent workers just contract as required

HR & Productivity
Can help increase productivity by ensuring workers are happy involves: finding better/more efficiency ways to meet objectives working on improving quality of life retraining and outplacement

Computerization - increased flex., when & where work is done decreases geographical barriers New issues arising: Concerns over data control Rights to privacy Using technology to monitor employees Use of HRIS systems to aid HR departments

Changing Work Force

2 main categories of workers ID:
information workers: data use, transmission, and those who produce the data (fastest growing segment) non-information workers: those working in mfg and service sector

Significant portion of work force in service sector = 86%

Demographic Challenges
Refers to the composition of the workforce increased no of women in the workplace (70% of employment growth) Increased no of immigrants coming to Canada Aging workforce

Demographic Challenges
Need for increased accessibility for disabled persons Shift in worker focus and changes in attitudes towards work life balance

Cultural Challenges
ethnic diversity - Can a cultural mosaic bringing additional challenges and opportunities

Internal Environment
Organizational culture = values beliefs and assumptions positive culture = retention and recruitment success Organizational Climate = atmosphere of organization

Question bank
1.Expalin the meaning of HRM? 2.What are the functions of HRM? 3.Explain the scope of HRM? 4.What are the essential qualities of an HR manager? 5.Discuss the role of HRM department in the changing environment? 6.Discuss the various factors that affect formulation of HR policies in a company?

7.Define HRM? 8.Mention any three distinguishing features of HRM v/s personnel management? 9.clarify FIVE operative functions of HRM /personnel management? 10.Give a brief account of any FIVE functions of an HRD a manager? 11.Expalin Human Resource manageemnt?(HRM) 12.What are the objectives of Human Resource Management? 13.What are the future challenges of HRM?

14.What is HRM?How does it relate to management? 15.How does the external environment influence HRM within an organisation? 16.State the changes in the concept of employee that has led to the emergence of HRM? 17.How does HRM differ from personnel mangement? 18.Discuss the impact of technological ,political,legal,& cultural factors on HRM functions?

19.Discuss the emerging role of an HR manager?