Objectives • After completing this session, you will be able to: – Define Human Resource Management – Examine the nature of HRM in organisations – Describe the scope and importance of Human Resource Management – Explain important terminologies
Topics• Following are the topics covered in this session: – Understanding HRM and its nature – Scope and importance of HRM in organisations – Important terminologies to know – Summary
Understanding HRM and its Nature In this module, we will define HR and discuss how it is important in an organisation..
Understanding HRM and its Nature • Human Resource Management (HRM) is the ever dynamic field in the management of businesses and organisations, today. • HRM is exciting and challenging and deeply satisfying if handled well. • A career in HRM is a rewarding experience. • A HR professional deals directly with people and for people.
Introduction (Contd.) • HR is a challenging profession as it deals with people of diverse nature. • Different people are different due to various reasons such as: – Economic – Cultural – Political – Gender – Age • All employees of an organisation need to be managed towards achieving a common purpose. • The people are the single most important resource in any company. • Even though organisations need resources like machines and computers, it is still the people who will be using them.
Human Beings as Resources • A resource is any article or thing of a limited availability that helps to produce goods that have economic value. • Human beings are considered as resources as they have the ability to change raw materials into valuable resources that have economic value. • This means human efforts can create or build something of value. • Human resources are those skills, energies, talents, abilities and knowledge that are used for the production of goods or services.
Definition of Human Resource Management• If an organisation has to use the skills and talents of all the people employed, it has to manage and co- ordinate them in a proper way.• Hiring and maintaining employees is the primary function of an organisation.• HRM can be defined as the management function of recruitment, selection, training and development of the people in an organisation.• The Human Resources Management role helps an organisation to reach its goals by: – Hiring the best talents – Overseeing their training and development – Motivating – Evaluating performance – Providing suitable compensation
Nature of HRM • HR supports the management in all its activities. • Managing human resources means helping the managers of a company to • Recruit and select the right persons • Train and develop employees • Keep the employees motivated and satisfied • HRM is concerned with people’s dimensions in organisations.
Elements that Constitute the Nature of HRM • It’s the people – Companies are built of people and not of machines, walls and stocks. – It’s the people who staff and manage the companies. • It’s the application of management principles. – Principles regarding attracting, developing, maintaining and suitably rewarding people have to be applied in a scientific and appropriate manner.
Elements that Constitute the Nature of HRM • It’s making integrated decisions. – Decisions on the many different aspects of employment and employment life must be consistent with the other HR decisions. It should also be in line with the company objectives. • It’s influencing the effectiveness of the company – Decisions must influence the effectiveness of the company in terms of bettering the services to customers in the form of high quality products at reasonable cost. • So the nature of HRM consists of a set of functions and activities that are designed and applied to maximize the company’s objectives in the most effective manner. • At the same time it must ensure that their people too are benefited and satisfied. •
Scope and Importance of HRM In this topic, we will discuss the scope of HR function and its importance at the organisational level.
Scope and Importance of HRM • The scope of HR is vast and it is challenging. • HRM is concerned with the management of a company’s most valued assets - the people. • HRM is a threefold function. They are as follows: – 1. Bring talent into the organisation – 2. Develop the talent in the organisation – 3. Motivate talent as high performers
Scope (Contd.) • The HR needs to perform functions involving: – Employees – Management – Business goals – The functions can be categorized in the following way: – Recruitment and Selection – Induction – Training and Development – HR system and Procedures – Performance Management System
Scope (Contd.) • These functions can be expanded into these following activities: – HR Planning – Job Analysis and Design – Recruitments – Interviews and Selection – Induction / Orientation – Remuneration and Rewards – Performance Appraisal and Job Evaluation – Training and Development – Motivation – Policy Making – Administration and Implementation of Rules and Regulations – Organisational Development – Benchmarking with Best Practices
Scope (Contd.) • HRM has become strategic due to accelerating rate of transformation of the: – Economy – Corporate cultures – Legal environment – Perceptions of the workforce
Importance at Organisational Level• Firstly, it is continuous role. Right from the time a person joins the organisation till his/her leaving, the HR department is actively involved.• The purpose of HR is to sustain the goals of the organisation.• The HR is regularly monitoring and making periodic checks on the activities of the employees for regulation and problem solving.• The HR is referred to as the eyes and ears of the company• It is the HR who values the people and who works towards creating competitiveness well as compassion at the work place• The HR design policies and procedures for organisations and thus become partners in the business of the organisation.
Importance at Organisational Level • The HR benchmarks for best practices and infuses them within their own company • The HR continuously strives to optimise resources for mutual benefit • Lastly HR is the single point of contact for all employees in the organisation.
Important Terminologies to Know In this topic, we will look at some important terminologies related to HR.
What are the Different Terminologies? • Some of the frequently used terms in HR are: – Industrial Relations Management – Labour Relations Management – Personnel Management – Personnel Administration – Human Resource Development – Human Capital Management
Industrial Relations • After the industrial revolution, there was a growing need to hire huge numbers of employees to work at the factories. • With the number of workers increasing, issues regarding their rights subsequently emerged. • This lead to the formation of trade unions. • After the trade union movement, there was need to regulate the issues of the employees. • This gave birth to Industrial Relations Management.
Industrial Relations (Contd.) • Some functions of Industrial Relations Management are: – Man hours regulation – Making job duties, – Dealing(bargaining) with various job authorities, – Grievance handling – Non exploitative wages and salary administration
Personnel Management • With the processes and management getting more scientific because of researchers like Frederick Taylor and Abraham Maslow, Industrial relations made some major and evolutionary changes. • The thoughts that were raised on that research, led to the scope evolving into a more human outlook. • Now planning was the result of co operation between management and workers and every administrative policy or procedure laid down was done scientifically. • The function of looking into the employees’ betterment came to be called as Personnel Management. • This function is also called Personnel Administration
Human Resource Development • The term, Human Resource Management or HRM came into existence only in the 1970s. • This was due to a shift in professional values from concern for welfare to a focus on efficiency. • Another term that evolved subsequently was Human Resource Development. • HRD focuses on those activities that are only related to employee development.
Summary• In this module we have learnt; – Human Resource Management can be defined as the management function of recruitment, selection, training and development of the people in the organisation. – The four elements that constitute the nature of HRM – HRM is a threefold function. – Some HRM functions are: Human resource planning, job analysis and design, recruitments, interviews and selection, induction, remuneration, performance appraisals and job evaluation and training.
Congratulations! You have successfullycompleted the session ‘Overview of HRM.’