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  1. 1. Concept Of HRM-“HRM” is art of Managing people at work insuch a way that they give their best for theorganization for achieving the goal.”“HRM is the planning ,organizing, directing& controlling of the procurement,development, compensation, integration,maintenance & separation of humanresource to the end that individual ,organizational and social objectives areaccomplished. “ Proff.Rahul Manajre
  2. 2. Evolution Of HRM:-Commodity Approach:- Worker is treated as commodity.The factor of production concept:- Labour is like any otherfactor of production e.g. money, material, machineWelfare Approach :- welfare approach like safety ,lunch, restroom etc.Protective Concept :- Mgmt. must assume protective attitudetowards employee it means satisfying various needs ofemployees.The Humatarion concept:- To improve productivity socialand psychological needs of workers must be satisfied.Human Resource Concept:- Employees are most valuableassets of organization.Emerging concept:- Employee should accept as a partner inorganizations progress. Proff.Rahul Manajre
  3. 3. Scope of HRM:- Scope of HRM is indeed very Vast & wide it includes all activities starting form man power planning Personal aspects:- This is concern with the manpower planning, recruitment, selection, placement, etc Welfare aspects:- working conditions & amenities such canteen, rest & lunch, education, health & safety etc. Industrial aspects:- This covers Union Mgmt., Collective bargaining etc.AND OTHERS ARE Control:-HR Audit, HR Accounting, HRIS Acquisition:-HR Planning, Recruitment, Selection etc. Maintenance:- Remuneration, Motivation, Health & Safety etc. Development:- Training & development, Career Planning, OD etc. Proff.Rahul Manajre
  4. 4. Objective Of HRM Primary Objective:- To provide competent & motivated workforce to the organization. Social Objective:- HRM being ethically & socially responsible for the needs and challenges of society. Organizational Objective:- To establish and maintain sound organizational structure and desirable working relationship between employees. Functional Objective:- To attain & effective utilization of human resource in the achievement of organizational goal & providing training & development program. Personal Objective:- To identify & satisfy individual & group needs. Proff.Rahul Manajre
  5. 5. HR PROCESSProff.Rahul Manajre
  6. 6. HR PROCESS1.Recruitment & Selection2.Placement & Induction3.Training & Development4.Performance Management5.Compensation Management6.Maintenance Proff.Rahul Manajre
  7. 7. Role of HR Administrative Role Operational Role Strategic Role Proff.Rahul Manajre
  8. 8. Administrative Role Policy Maker:- Formation of policies e.g. recruitment, training & development, performance appraisal, compensation etc. Administrative Expert:-Record keeping e.g. Personal files, company documents etc. Advisor:- Maintaining employee relations, training & development, selection etc. Counselor:- Career planning, personal help etc. Welfare Officer:- Canteen, hospital, education etc. Proff.Rahul Manajre
  9. 9. Operational Role Recruiter Trainer Co-ordinator Mediator Proff.Rahul Manajre
  10. 10. Strategic Role Strategy Formulation Strategy Selection Strategy Implementation Proff.Rahul Manajre
  11. 11. HR should define an organization architecture i.e. itshould identify the underlying model of the company’sway of doing businessHR needs to be accountable for conducting anorganizational audit.Hr as a strategic partner is to identify methods forrenovating the parts of organizational structure.HR must take stock of its own work and set clearpriorities. Proff.Rahul Manajre
  12. 12. Business Strategies Corporate level strategy SBU level strategy Functional level strategy Proff.Rahul Manajre
  13. 13. Business Strategies Stability strategy:-i. Maintenance of status queii. Sustainable growth Growth strategy:-i. Mergersii. Takeoveriii. Joint Ventures Retrenchment strategy:-i. Turn Aroundii. Liquidation Proff.Rahul Manajre
  14. 14. Linking Business strategy and HR strategy In many companies HR manager is responsible for strategic mgmt. process.A. EmploymentB. DevelopmentC. CompensationD. Industrial RelationE. Organizational Culture Proff.Rahul Manajre
  15. 15. TQM And HRMTQM:-TQM is a continuous process of improvement for individuals, group of people and the total organization.Principles of TQM:-a. Delight the customerb. Management by factc. People based managementd. TQM is continuous process Proff.Rahul Manajre
  16. 16. Following forces shape the HRM towards TQM Economic liberalization announced by government of INDOA in 1991 Opening Indian economy for the rest of world Focusing on private sector to restructuring and developing Indian economy Successful organizations proactively and systematically understand and respond to current and future customer needs The IT revolution is replacing the core competencies Proff.Rahul Manajre
  17. 17. HR Strategy to TQM The HR plans can be four typesa. Strategic-high profile i.e. Change agentb. Strategic-low profile i.e. Hidden persuaderc. Operation-high profile i.e. Internal contractord. Operation-low profile i.e. Facilitator Proff.Rahul Manajre
  18. 18. HR Policies TheHR policy manual is a companion volume to the employee handbook. HRpolicy helps organization to maintain good work culture within the organization Proff.Rahul Manajre
  19. 19. HR policies mainly focus on :- Recruitment, selection & placement Training & manpower development Performance Mgmt. Termination of employee Compensation Transfer & Promotion Complaints & Grievance procedure Employee benefits Conducts , Discipline & apple rule Employee health & Safety Internal Communication Other Personnel policies and procedure Proff.Rahul Manajre
  20. 20. HR Audit HR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution. Proff.Rahul Manajre
  21. 21. Scope of Audit Audit of all the HR function. Audit of managerial compliance of personnel policies, procedures and legal provisions. Audit of corporate strategy regarding HR planning, staffing, IRs, remuneration and other HR activities. Audit of the HR climate on employee motivation, morale and job satisfaction. Proff.Rahul Manajre
  22. 22. Benefits of HR Audit It helps to find out the proper contribution of the HR department towards the organization. Development of the professional image of the HR department of the organization. Reduce the HR cost. Motivation of the HR personnel. Find out the problems and solve them smoothly. Provides timely legal requirement. Sound Performance Appraisal Systems. Systematic job analysis. Smooth adoption of the changing mindset. Proff.Rahul Manajre
  23. 23. HUMAN RESOURCE ACCOUNTING HRA is an attempt to identify and record investment made in the human resources. Its an information system reporting the cost and value of the human factor to the organization According to Woodruff Jr., VP of R.G. Barry Corporation U.S.A, “HRA is an attempt to identify and report investment made in human resources of an organization that are not accounted for under conventional accounting practice. Its an information system that tells the management what changes over time are occurring to the human resources of the business”. Proff.Rahul Manajre
  24. 24. Characteristics Of HRA Itsa system of accounting in which identification of human resources is made. Investment made in human resources is recorded. Measurement of costs and values are made. Changes occurring in human resources over a period of time are also recorded. Communicates information through financial statements to interested parties Proff.Rahul Manajre
  25. 25.  Helps the management to gain knowledge of the various aspects of employees which is necessary to take vital decisions for the progress of the organization. HRA is a part of MIS. Joint efforts of behavioral scientists, accountants and managements are needed for the working and development of HRA. Proff.Rahul Manajre
  26. 26. Objectives Of HRA Proper management of human resources Improvement of human resources. Depicting the true value of the organization. Provides quantitative information on human resources which helps the managers and investors in making decisions. HRA communicates the worth of human resources to the organization and to the public. Proff.Rahul Manajre
  27. 27. Methods/Models Of HRA Historical Cost Method: Actual cost incurred for recruiting, hiring, training and developing the human resources of the organization are capitalized and amortized over the expected useful life of the human resources. Replacement Cost Method: This is the measure of the cost to replace a firm’s existing human resources. This method has the advantages of adjusting the human value of price trends in the economy Proff.Rahul Manajre
  28. 28.  Opportunity Cost Method: In this method, the human resource of an organization has to be valued on the basis of the economist’s concept of opportunity cost which is value of benefit foregone by putting it to present use. Proff.Rahul Manajre
  29. 29. Work-Life Balance Policies Part-time employment Job Share Annualised salary Flexi-time Contract Employment Planned Career Breaks Voluntary-reduced working time Occasional working at home Proff.Rahul Manajre