2. WHAT IS HUMAN RESOURCE?
īHuman resources are people who are ready, willing and have ability to
contribute to organizational objective.
īHuman resource include all people who do the work of a company at various
jobs..
īHuman resources refers to the individuals within the firm.
īIt was traditionally called labor, one of three factors of production.
īLabor â Human Resource â Human Capital
3. HUMAN RESOURCE MANAGEMENT
īHuman Resource Management (HRM) is responsible for the
people dimension of an organization.
īIt is concerned with the management of human energy and
competencies.
īHuman Resource Management is based in the efficient
utilization of employees in achieving two main goals:
ī to effectively make use of the talents and abilities of
employees to achieve the operational objectives
ī to ensure that the individual employee is satisfied with both
the working environment and the compensation and
benefits that he or she receives
4. DEFINITIONS
ī Human resource management is a process concerned with
management of human energies and competencies for achieving
organizational objectives through acquisition, development,
utilization and maintenance
ī To be competitive, organizations in the 21st
century will need to
invest heavily in their human resources. â Charles R. Greer
ī Human Resource Management is the organizational function that
deals with issues related to people such as compensation, hiring,
performance management, organization development, safety,
wellness, benefits, employee motivation, communication,
administration, and training.
5. NATURE OF HRM
īHuman Focus:
ī Focuses on people possessing energy and Competencies.
ī Develops and utilizes Human potential
īManagement Function
ī Concerned with Management function of staffing necessary for
functional area like marketing, production and finance
īPervasive Function
ī Concerned with all level of Management ( Top, middle and lower)
īContinuous Commitment
ī Not a one time activity
īDynamic
ī Adapts to the changing environment
īSystem
ī System consisting of Acquisition, Development, Utilization and
Maintenance functions
īMutuality Oriented: Mutuality between employers and employees
6. OBJECTIVE OF HRM
īGoal Achievement
ī Personal goals, HRM goals, Organizational goals and societal
goals
īGoal Harmonization: Individual goals with Organizational goals
īProductivity Improvement
īStructure Maintenance
īEfficiency Improvement
īChange Management
īQuality of Work life
7. FUNCTION OF HRM
īFunction help organization to achieve objective of HRM
īThe major functions or components of HRM are
ī Acquisition Function: It ensures right number of employees at
the right place at the right time.
ī Activities: HR Planning, Job Analysis, Recruitment,
Selection, Socialization
ī Development Function: It ensures the employee have proper
competencies to handle jobs
ī Activities: Analyzing development needs, Employee
training, Management development, Career development
8. CONDT.
īUtilization Function: It ensures willingness of
employees for increasing productivity
īActivities: Motivation, Performance appraisal,
Compensation management
īMaintenance Function: It is concerned with retention of
competent employees in the organization. Activities in
HRM concerned with maintaining employees
commitment and loyalty to the organization
īConsists of Employee discipline, Labor relations,
Employee welfare.
9. HRM EVOLVED FROM PERSONNEL MGMT.
Dimension Personnel Management HRM
Focus People as an input in the
production process
People as strategic resource in
the organization
Scope Concern of personnel
department
Concern of all levels of
managers
Function Routine Strategic
Means Emphasis on rules,
regulations, procedures,
practices
`Emphasis on human energy
and competencies
Ends Employee satisfaction Achieving organizational goals
through employee satisfaction
Interest Organization interest is
uppermost
Harmony in interest of
organization and individual
Outcome Satisfied personnel
Increased production
Committed human resources
Increased productivity
HRM is not Personnel Management. Major differences are:
Source: Dynamics of Human Resource Management , Dr. Govind Ram Agrawal, 2008
10. HRM SYSTEM
īļHRM operates as a system consisting of subsystems
which are integrated to each other to achieve a common
goal.
īļHRM system consists of input process, output and
feedback and operates within internal and external
environment.
11. INPUTS
īInputs are the components that should be taken into
consideration. They are:
īOrganizational Plan: Basis for Human Resource
Planning, Organization goal help determine HR
requirement.
īHR Plan: HR Plan ensures the organization have right
people and its number in right time.
īHR Inventory: Stock of Human Resource that
organization have.
īJob Analysis: Determining the tasks that make up a job
and skills, abilities required to accomplish the job
īLabor Market: Source of External supply of HR
13. OUTPUT
Broadly two types of Outputs
īOrganization related Outputs
īGoal Achievement, Quality of work life, Productivity,
Profits, Readiness for change
īEmployee related Outputs
īCommitment, Competence, Congruence
14. FEEDBACK AND ENVIRONMENT
Feedback: Based on output effectiveness, provides
information to redesign HR inputs and processing and
also helps to take corrective actions.
Environment: Environment can be of two types
īInternal Environment: They can be organizational
goals, policies, structure, reward system, organization
culture
īExternal Environment: They are PEST
īPolitical, Economical, Socio cultural and
Technological
15. WHY HRM IS IMPORTANT TO ALL
MANAGERS
īHire the wrong person for the job
īExperience high turnover
īHave your people not doing theirs best
īHave your company taken to court because of discriminatory
action
īHave your company cited under federal occupational safety
laws for unsafe practices
īHave some employees think their salaries are unfair and
inequitable compared to other organization
īAllow a lack of training to undermine your departmentâs
effectiveness
īCommit any unfair labor practices
Source: Dessler, 2006
17. ENVIRONMENT OF HRM IN NEPAL
īHRM system is open to environmental factors
which influence HRM decisions and activities.
īThey are rapidly changing and they influence
the ability of organization to achieve goal.
īBefore formulating HRM goals and strategy,
managers should scan the environmental factors
which are complex and critical.
18. EXTERNAL ENVIRONMENTAL
FACTORS IN NEPAL
Political and Legal : They are the countryâs law and
political condition. Managers should consider following
factors
īPolitical System
īPolitical intervention and Politics-Business Interlink
īLabor Laws affecting the interests of employees,
Business laws
īPolicies regarding equal employment opportunities,
quotas in employment for women, disadvantaged and
indigenous people
19. ECONOMIC FACTORS
īEconomic factors that affects HRM are
īGlobalization: Tendency of firms to extend theirs
sales, ownership and manufacturing to new markets
abroad. Globalization means more competition which
means lower cost. Thus, we should make employees
more productive.
īDemographics: Concerned with population and
distribution. They affect the size, composition and
location of work force.
īEconomic Condition: Level of income, the stage of
business cycle, level of inflation, fiscal policy of
government.
20. SOCIAL CULTURAL FACTORS
īSocial Forces
īSocial Norms: They affect attitudes and expectation
towards organization.
īLifestyle: Pattern of living reflected in activities,
interests and opinions.
īChange in life style have resulted in shorter work
weeks, flexible working hours, paid holidays
īCultural Forces: It is knowledge about customs,
traditions, vales, religion, language and work of art and
architecture.
īIt has been handed over by generation to generation
21. TECHNOLOGICAL FORCES
īIt consists of skills, methods, systems and
equipment.
īThe scale and pace of technological
advancement determine all the four aspect of
HRM
īIt determines the job requirements concerning
the elimination of old job, creating the new jobs
and increasing the professionalism in existing
job.
22. INTERNATIONAL PERSPECTIVE OF
HRM
īDue to Globalization HR managers have found challenges in
acquiring, developing, motivating and maintaining human
resources.
īIt is difficult because human resources come form different
backgrounds
īChallenges in managing HR internationally are
īDiverse Workforce: Consists of home country and host country
and third country employees
īCultural Diversity
īChanging Environment
īNew HRM Skills: International HRM managers needs new
skills to handle conflicts and industrial relations
īSocial Responsibility: Should be socially responsible in host
country
23. ETHICAL ISSUES IN HRM
īObeying the law is mandatory, but acting ethically goes
beyond mere compliance with the law.
īIt is personal belief regarding right and wrong or good
and bad.
īHR ethics refers to the standards of behavior that guide
HR managers to conduct work.
īThey are shaped by ethical standards of HR managers,
action of peers and top Management, Organizational
culture, organizational environment and societal forces
24. ETHICAL ISSUES
īSocial Responsibility: Do what is good to society
īEmployee treatment: Transparency should be
maintained in HR matters, treat all the employees fairly
ī Employee Behavior: Should treat organization
ethically by avoiding conflict, dishonesty and secrecy
leakage
īStakeholder treatment : Stakeholders can be customers,
competitors, suppliers, labor unions. Organization and
employees should treat them ethically.
īEthics Training
īTwo way communication: HRM should facilitate two
way communication as it helps employees express their
feeling about ethical matters
25. STRATEGIC HUMAN RESOURCE
MANAGEMENT
Strategic Human Resource Management
īHR strategies refers to the specific human resource
course of action the company pursues to achieve its aim
īFormulating and executing HR systemsâHR policies
and activitiesâthat produce the employee competencies
and behaviors the company needs to achieve its strategic
aims.