6. Overview
•What is HRM?
•Hrm activities
•Scope of HRM
•Difference between HRM &
PM
•HRM objectives and functions
7. HUMAN RESOURCE MANAGEMENT (HRM)
HRM definition
“HRM is management function
concerned with hiring, motivating
& maintaining people in an
organization. It focuses on people
in organization”.
(Aswathappa, 2008, pg.5)
8. HRM: peoples dimensions in organizations
HRM: application of management functions & principles
related to employees
HRM functions applicable every where(not for profit & profit
driven organizations)
Employees decisions are integrated
Employee decision brings effectiveness/efficiency in
organization
HRM includes all major activities in professional life of a
worker
All activities from employee entry to managing performance &
training until he/she leaves
10. Scope of Hrm
• Introduction to HRM
• Employee hiring
• Employee remuneration
• Employee motivation
• Employee maintenance
• Industrial relations
• Prospects of HRM
11. Scope of HRM
Hrm
Prospects
of Hrm
IR
Career
Development
Introduction
of Hrm Employee
Hiring
Employee
Remuneratio
n
Employee
MotivationEmployee
Maintenance
Source: aswathappa, 2008, p.6
12. The semantics
There are 2 terms:
1.PM(personnel management)
2.HRM(human resource management)
• PM & HRM are different in scope &
orientation
• HRM is broad concept
• PM & HRD(human resource
development) are part of HRM
13. Differences between HRM and PM
Dimensions PM HRM
1.Employment contract Careful delineation of written
contracts
Aim to go behind contract
2.Rules Importance of devising clear rules Can do outlook, impatience with
rule
3.Guide to management action Procedures Business need
4.Behaviour referent Norms ,customs and practices Values and mission
5.Managerial task vis-à-vis labor Monitoring Nurturing
6.Speed of decision Slow Fast
7.Management role Transactional Transformational leadership
8.Communication Indirect Direct
9. Prized management skills Negotiation Facilitation
10.Selection Separate ,marginal task Integrated, key task
11.Labour management Collective barraging contracts Individual contracts
12.Job categories and grade Many Few
13.Job design Division of labour Team work
14.Conflict handling Reach temporary truce Manage climate and culture
14. Differences between HRM and PM
Dimensions PM HRM
15.Respect for employees Labour is used as tool which is
spendable and replaceable
Peoples are used as assets to be
used for benefit of organization
16.Shared interest Interest of organizations are
uppermost
Mutuality of interest
17.Evolution Precedes HRM Latest in evolution of subjects
18.Locus of control External Internal
19.Oganization principles Mechanistic
Top down
centralized
Organic
Bottom-up
Decentralized
20.Key relations Labour Management Customers
21.Initiatives Piecemeal Integrated
22.Pay Job evaluation Performance related
23.Training and development Controlled accessed to courses Learning companies
Source: Aswathappa, 2008, p.7
15. HRM functions & objectives
• The main objective of HRM is to ensure
availability of willing & competent force
to an organization
• There are other objectives of HRM too:
1.Societal objectives
2.Functional objectives
3.Organizational objectives
4.Personal objectives
17. HRM functions & objectives
1. Societal objectives:
• Societal objectives of HRM make sure that
organization is socially & ethically responsible
• Minimizing negative impact of societal
demands on organizations
• For example: EOE laws forces organizations
to be ethical in recruitment, to minimize
discrimination against hiring based on
ethnicity, race, religion, etc.
18. 2. Organizational objectives:
• To determine role of HRM in
organizational effectiveness
• Its purpose is to assist/serve
organization
• HR department also serve
other departments
19. 3. Functional objectives:
• To maintain departmental
contribution in organizational
effectiveness
• HR department services must
fit into organizational needs
20. 4. Personal objectives:
• To assist employees in achieving their
personal/individual goals
• Maximum contribution to organization
• Personal objectives are achieved when
employees are satisfied, motivated &
retained
• Satisfied employees give excellent
services& leads to excellent
organizational performance
21. HRM objectives Supporting functions
Societal objectives Legal compliance
Benefits
Union-management relationship
Organizational objectives Human resource planning
Employee relations
Training and development
Performance appraisal
Placement
Functional objectives Performance appraisal
Placement
Personal objectives Compensation
Training and development
Performance appraisal
Placement
Source: aswathappa, 2008, p.10
22. Organization of HR department
2 issues:
• HR department placement in overall setup
• Composition of HR department
Structure of HR:
• Structure of organization depend on whether organization
is small/large
• In small organization there is no need to have separate
department to deals with activities relating to people
• Many small organizations even don’t have personnel
managers
• Outsourcing to firms specializing in managing accounts,
pensions, funds & health & care
23. • Earlier, in personnel department
employee with little knowledge &
competencies were placed
• The responsibility was to arrange tours,
picnics & retirement/farewell parties
• Now focus has changed, HR department
has key place in overall organizations
• Contrary to small-sized company, in
large scale organization there is big
department heading by manager/director
24. HR in small scale unit
Source: aswathappa, 2008, p.10
Owner
Production
manager
Personnel
assistant
Office
manager
Accounts
manager
Marketing
managers
25. HRM in large scale
Source: aswathappa, 2008, p.11
Chairman
Deputy
director
training
Director
HRM
Director
R & D
Director
finance
Director
production
Deputy
director
recruitment
Deputy
director
promotions
26. Composition of HR & personnel department
Director
HRM
Director HRM
Manager
Personnel
Manager
Administration
Manager
Hrd
Manager IR
Hr
Planning
Hiring
Complaint
s
Compensati
on
Pr Canteen
Welfare Transport Legal
Source: aswathappa, 2008, p.12
27. Outsourcing HR activities
Outsourcing/subcontracting: transfer activities to
specialist organizations
Reasons:
•Restructuring
•Downsizing
•Growth in business
•Decline in business
Benefits:
•Cost efficiency
•Access to expertise
