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HUMAN RESOURCE
 MANAGEMENT
    (HRM)
Introduction
                              2
 Organization is a group of people established either
    formally or informally for the attainment of certain
    objectives.
   So, people are the foundation of any organization.
   In societal context, organization need people and
    people need organization.
   It is people who staff, lead and control organizations.
   Persons involved in an organization are referred as
    human resource.
   Simply, the overall management of such personnel in
    an organization is called human resource management
    (HRM).
Who are Human Resource?
                             3

 In organizational context, the personnel involved in
  different activities of an organization are the human
  resources of that organization.
 Such type of personnel (referred as human resources) have
  one thing common i.e. fulfillment of their assigned duties
  & responsibilities in order to achieve the organizational
  goal and objectives.
 People become human resource when they involved in any
  organization with physical strength, energy and
  competencies. Competencies consists of knowledge, skill,
  attitudes and potential for growth.
 Human resources are effectively mobilized by the
  organization for the achievement of desired results.
Human Resource Management
                           4

 An essential function of management; and also an
  important part of every manager’s job.
 HRM is concerned with managing people in
  organizations.
 It is concerned with philosophy, principles, policies
  and practices related to human aspect of
  management.
 It aims at achieving organizational objectives
  through the efficient and effective mobilization of
  human resources.
Contd…
                          5

According to Donnelly and Gibson,
 HRM is the process of accomplishing organizational
  objectives by acquiring, retaining, terminating,
  developing and properly using the human resources
  in an organization.

According to Gary Dessler,
 HRM refers to the policies and practices involved in
  carrying out the people or human resource aspects of
  a management position, including recruiting,
  screening, training, rewarding and appraising.
6




 Human Resource Management (HRM) is a process
 concerned with the management of personnel
 along with their energies and competencies for the
 achievement of organization objectives by the
 process of acquiring, developing and utilizing such
 personnel.
Evolution of HRM
                           7

 A number of academics and practitioners in the past
  have contributed a great deal to the development of
  HRM.
 The history of its development goes back to the early
  management pioneers, Robert Owen (1771 – 1858) and
  Charles Babbage (1792 – 1871).
 Similarly, other developments such as the industrial
  revolution, the principles of scientific management,
  the classical organization theory and more recently,
  the behavioral science movement and the organization
  development movement have influenced the
  development of personnel management and HRM.
Contd…
                            8


 The trend of the development of HRM in the past

 can be explained through following periods.
      Early   Scientific Management
      Scientific   Management
      Human     Relations Movement
      The   New HRM Era
Early Scientific Management
                          9

 The history can be traced back to the Origin of
  Personnel Management. In the beginning of 18th
  century, many masons, carpenters, leather workers
  and people of other crafts organized themselves into
  guilds.
 In the later part of 18th century, the Welfare
  Concept was developed by some prominent family
  business houses in the UK.
 Industrial Revolution started from the late 18th
  century. Labor was treated as commodity to be
  bought or sold. There was strict system of
  punctuality and rigorous working rules.
Scientific Management
                          10


 F.W.    Taylor invented principles of scientific
  management in the 19th century.
 He suggested to plan work and gave methods to
  maximize productivity and minimize inefficiencies.
 In his studies, he explained less about humanization
  of workplaces and focused more on output from the
  workers.
Human Relations Movement
                          11

 Elton Mayo and Fritz Roethlisberger investigated the
  causes of low productivity different from Taylor’s
  perspective.
 The Hawthorne studies (1927 – 1932) laid the
  foundation for the human relations movement and
  explain why human elements are important to rise
  productivity.
The HRM Era
                            12
 It was by 1920s, personnel management began to
    taught at university level in US.
   At the period of 1920s, a number of large companies
    established personnel departments.
   During 1930 – 1950, many instances of exploitation
    of labor appeared.
   Subsequently, a labor relations movement in the
    form of Labour Unions and collective bargaining
    emerged and remained successful during 1935 –
    1960.
   Personnel department started to work in
    collaboration with union representatives.
Contd…
                               13


 The HRM era, began in 1950s, comprises

  the   work of pioneers,
  human    capital concept,
  concept   of corporate culture and
  the   new HRM.
14

The Work of Pioneers
 Peter F. Drucker is the main inventor of HRM
  concept. He had suggested how an effective
  management contributes to direct all managers
  towards a common goal.
 Douglas McGregor emphasized the strategic
  importance of personal policies and their integration
  with business objectives.
15

Human Capital Concept
 T. Schulz invented human capital theory and cited

 example of how qualified and committed human
 resources contributed in the post war economy of
 Germanny and Japan.
16

Concept of Corporate Culture
 The book “The art of Japanese Management” by R.
  Pascale and A. Athos in 1981 stated that shared
  values of management and workers are the secret of
  Japanese Management.
 The book “In search of excellence” written by T.J.
  Peters and R. Waterman in 1982 named 43
  successful companies in the U.S. that were driven by
  the managers’ values and achieved productivity by
  paying close attention to the needs of their people.
17

The New HRM
 Traditional American personnel management and
  industrial relation systems were challenged by the
  process of globalization, rapid technological
  advances, shorter product lifecycles and changing
  customers and investors demands.
 Many US industries were facing the under-utilization
  and unemployment of human resources.
 The reasons for such problems were: adverse union-
  management relations, low employee motivation &
  trust in management, hierarchical management,
  restrictive work practices and, finally, resistance of
18
 Promoted by this challenges, American business has
  begun to place greater emphasis on the management of
  human resources to improve productivity and quality
  and thus to be competitive internally and externally.
 In academic literature, at least, the terms ‘personnel
  management’ and ‘personnel administration’ have been
  virtually replaced by the term ‘HRM’.
 In UK, the concept of HRM arrived around 1985 – 86,
  when the British industry was suffering from restructuring
 effects due to recession & loss of competitiveness.
 Anti-union legislation of the Thatcher government
 encouraged firms to introduce new labor practices and
 re-order their collective bargaining arrangements.
Nature of HRM
                            19
Human Focus
 People concern, develops & utilize human potential,
  regard people as an important asset of organization
Management Function
 Applies mgmt principles & functions, perform by all
  level of managers
Dynamic
 Affected by changes in envn (political-legal, economic,
  socio-cultural & technological)
Mutually oriented
 Mutuality between employer and employees.
Continuous-ongoing activity
Components of HRM
                            20



 Human Resource Planning

 Recruitment & Selection

 Performance Management

 Training and Development

 Employee – Management Relation

 Management Information System
HRM Process
                          21

 The process of HRM involves attracting, developing
  and maintaining a talented and energetic workforce.
 The basic goal of HRM is to build organizational
  performance capacity by raising human capital, to
  ensure that highly capable and enthusiastic people
  are always available.
 The 3 major responsibilities of HRM are
D.Attracting a quality workforce
E.Developing a quality workforce
F.Maintaining a quality workforce
Contd…
                         22

Attracting a quality workforce
 Involves human resource planning, employee
  recruitment and selection.
Developing a quality workforce
 Involves   employee     orientation,  training  &
  development and performance appraisal
Maintaining a quality workforce
 Involves career development, work life balance,
  compensation and benefits, retention and turnover,
  and labor-management relations.
Attracting a quality workforce
                       23




 Human Resource Planning

               
 Recruitment

               
 Selection.

               
24
Developing a quality workforce
                          25




 Induction/orientation

           
 Training and Development

           
 Performance Appraisal

           
Maintaining a quality workforce
                       26

 Career Development
              
   Work-life Balance
              
   Compensation and Benefits
              
   Retention and turnover
              
   Labor-management Relations
              
Elements & Model of HRM
           27
Functions of HRM
                          28


 Human Resource Planning
 Acquisition of Human Resources
 Utilization of Human Resources
 Development of Human Resources
 Maintenance of Human Resources
 Control of Human Resources
 Harmonious Employer-Employee Relationship
 Attainment of organizational objectives
System Model of HRM
                           29

  Input             Process               Output

• Human energy                     Organizational
                   • Acquisition
& competencies                     • Goals achievement
• Organizational   • Development
                                   • Quality of work life
                   • Utilization
Plan                               • Productivity
• HR Plan          • Maintenance
                                   • Readiness for change
• HR Inventory                     Personal
• Job Analysis                     • Commitment
                                   • Competence
                                   • Congruence


                    Feedback
Challenges to HRM
                           30
 Globalization
 Technological Advances
 Nature of work
 Size & composition of the workforce.
 Rising employees' expectations
 Life-style changes
 Less attached/temporary employees
 New HRM concerns
 Learning organizations
 Impact of new economic policy.
 Political ideology of the Government.
Trends and Issues of HRM
                         31

Issues of HRM in Nepal
   Corporate Planning and Objectives

   Human Resource Planning

   Recruitment, Selection and Placement

   Employee training and development

   Performance Evaluation

   Salary and other benefits

   Job Design

   Employee Relations
Barriers to Development of HRM in
                   Nepal
                             32

 HRM in Nepal is mainly concerned with utilizing
    human energies.
   It is least concerned with developing human
    competencies and potential for growth of employees.
   Its focus is on achieving organizational goals without
    much regard to personal goals of employees.
   HRM has not assumed a strategic role in Nepalese
    management.
   People are not considered as a source of competitive
    advantage and important assets.
Contd…
                            33

 HRM is not given a strategic role. It lacks clear cut
    vision, mission and goals.
   The attitudes of top management are not favorable
    towards HRM. Human resources are viewed as a cost
    rather than assets by management.
   HRM is considered as a firefighting job to deal with
    labor grievance and indiscipline.
   Line managers do not feel ownership for HRM.
   Lack of mutual trust between labor and management.
   Multiplicity     of    unions,    union   challenges,
    politicialization of unions and negative attitude of
    management towards labor unions.
Contd…
                           34

 HR aspects are not considered in policy and plan
  formulation.
 Human resource development has remained an area
  of low priority. This has retarded professionalism in
  HRM. Performance based HRM practices are
  lacking.
 Legal framework has remained weak and largely
  welfare oriented.
 HRM is short range oriented. It is least concerned
  with future potential development of employees.

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1. introduction to hrm

  • 2. Introduction 2  Organization is a group of people established either formally or informally for the attainment of certain objectives.  So, people are the foundation of any organization.  In societal context, organization need people and people need organization.  It is people who staff, lead and control organizations.  Persons involved in an organization are referred as human resource.  Simply, the overall management of such personnel in an organization is called human resource management (HRM).
  • 3. Who are Human Resource? 3  In organizational context, the personnel involved in different activities of an organization are the human resources of that organization.  Such type of personnel (referred as human resources) have one thing common i.e. fulfillment of their assigned duties & responsibilities in order to achieve the organizational goal and objectives.  People become human resource when they involved in any organization with physical strength, energy and competencies. Competencies consists of knowledge, skill, attitudes and potential for growth.  Human resources are effectively mobilized by the organization for the achievement of desired results.
  • 4. Human Resource Management 4  An essential function of management; and also an important part of every manager’s job.  HRM is concerned with managing people in organizations.  It is concerned with philosophy, principles, policies and practices related to human aspect of management.  It aims at achieving organizational objectives through the efficient and effective mobilization of human resources.
  • 5. Contd… 5 According to Donnelly and Gibson,  HRM is the process of accomplishing organizational objectives by acquiring, retaining, terminating, developing and properly using the human resources in an organization. According to Gary Dessler,  HRM refers to the policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising.
  • 6. 6  Human Resource Management (HRM) is a process concerned with the management of personnel along with their energies and competencies for the achievement of organization objectives by the process of acquiring, developing and utilizing such personnel.
  • 7. Evolution of HRM 7  A number of academics and practitioners in the past have contributed a great deal to the development of HRM.  The history of its development goes back to the early management pioneers, Robert Owen (1771 – 1858) and Charles Babbage (1792 – 1871).  Similarly, other developments such as the industrial revolution, the principles of scientific management, the classical organization theory and more recently, the behavioral science movement and the organization development movement have influenced the development of personnel management and HRM.
  • 8. Contd… 8  The trend of the development of HRM in the past can be explained through following periods.  Early Scientific Management  Scientific Management  Human Relations Movement  The New HRM Era
  • 9. Early Scientific Management 9  The history can be traced back to the Origin of Personnel Management. In the beginning of 18th century, many masons, carpenters, leather workers and people of other crafts organized themselves into guilds.  In the later part of 18th century, the Welfare Concept was developed by some prominent family business houses in the UK.  Industrial Revolution started from the late 18th century. Labor was treated as commodity to be bought or sold. There was strict system of punctuality and rigorous working rules.
  • 10. Scientific Management 10  F.W. Taylor invented principles of scientific management in the 19th century.  He suggested to plan work and gave methods to maximize productivity and minimize inefficiencies.  In his studies, he explained less about humanization of workplaces and focused more on output from the workers.
  • 11. Human Relations Movement 11  Elton Mayo and Fritz Roethlisberger investigated the causes of low productivity different from Taylor’s perspective.  The Hawthorne studies (1927 – 1932) laid the foundation for the human relations movement and explain why human elements are important to rise productivity.
  • 12. The HRM Era 12  It was by 1920s, personnel management began to taught at university level in US.  At the period of 1920s, a number of large companies established personnel departments.  During 1930 – 1950, many instances of exploitation of labor appeared.  Subsequently, a labor relations movement in the form of Labour Unions and collective bargaining emerged and remained successful during 1935 – 1960.  Personnel department started to work in collaboration with union representatives.
  • 13. Contd… 13  The HRM era, began in 1950s, comprises  the work of pioneers,  human capital concept,  concept of corporate culture and  the new HRM.
  • 14. 14 The Work of Pioneers  Peter F. Drucker is the main inventor of HRM concept. He had suggested how an effective management contributes to direct all managers towards a common goal.  Douglas McGregor emphasized the strategic importance of personal policies and their integration with business objectives.
  • 15. 15 Human Capital Concept  T. Schulz invented human capital theory and cited example of how qualified and committed human resources contributed in the post war economy of Germanny and Japan.
  • 16. 16 Concept of Corporate Culture  The book “The art of Japanese Management” by R. Pascale and A. Athos in 1981 stated that shared values of management and workers are the secret of Japanese Management.  The book “In search of excellence” written by T.J. Peters and R. Waterman in 1982 named 43 successful companies in the U.S. that were driven by the managers’ values and achieved productivity by paying close attention to the needs of their people.
  • 17. 17 The New HRM  Traditional American personnel management and industrial relation systems were challenged by the process of globalization, rapid technological advances, shorter product lifecycles and changing customers and investors demands.  Many US industries were facing the under-utilization and unemployment of human resources.  The reasons for such problems were: adverse union- management relations, low employee motivation & trust in management, hierarchical management, restrictive work practices and, finally, resistance of
  • 18. 18  Promoted by this challenges, American business has begun to place greater emphasis on the management of human resources to improve productivity and quality and thus to be competitive internally and externally.  In academic literature, at least, the terms ‘personnel management’ and ‘personnel administration’ have been virtually replaced by the term ‘HRM’.  In UK, the concept of HRM arrived around 1985 – 86, when the British industry was suffering from restructuring effects due to recession & loss of competitiveness.  Anti-union legislation of the Thatcher government encouraged firms to introduce new labor practices and re-order their collective bargaining arrangements.
  • 19. Nature of HRM 19 Human Focus  People concern, develops & utilize human potential, regard people as an important asset of organization Management Function  Applies mgmt principles & functions, perform by all level of managers Dynamic  Affected by changes in envn (political-legal, economic, socio-cultural & technological) Mutually oriented  Mutuality between employer and employees. Continuous-ongoing activity
  • 20. Components of HRM 20  Human Resource Planning  Recruitment & Selection  Performance Management  Training and Development  Employee – Management Relation  Management Information System
  • 21. HRM Process 21  The process of HRM involves attracting, developing and maintaining a talented and energetic workforce.  The basic goal of HRM is to build organizational performance capacity by raising human capital, to ensure that highly capable and enthusiastic people are always available.  The 3 major responsibilities of HRM are D.Attracting a quality workforce E.Developing a quality workforce F.Maintaining a quality workforce
  • 22. Contd… 22 Attracting a quality workforce  Involves human resource planning, employee recruitment and selection. Developing a quality workforce  Involves employee orientation, training & development and performance appraisal Maintaining a quality workforce  Involves career development, work life balance, compensation and benefits, retention and turnover, and labor-management relations.
  • 23. Attracting a quality workforce 23  Human Resource Planning   Recruitment   Selection. 
  • 24. 24
  • 25. Developing a quality workforce 25  Induction/orientation   Training and Development   Performance Appraisal 
  • 26. Maintaining a quality workforce 26  Career Development   Work-life Balance   Compensation and Benefits   Retention and turnover   Labor-management Relations 
  • 27. Elements & Model of HRM 27
  • 28. Functions of HRM 28  Human Resource Planning  Acquisition of Human Resources  Utilization of Human Resources  Development of Human Resources  Maintenance of Human Resources  Control of Human Resources  Harmonious Employer-Employee Relationship  Attainment of organizational objectives
  • 29. System Model of HRM 29 Input Process Output • Human energy Organizational • Acquisition & competencies • Goals achievement • Organizational • Development • Quality of work life • Utilization Plan • Productivity • HR Plan • Maintenance • Readiness for change • HR Inventory Personal • Job Analysis • Commitment • Competence • Congruence Feedback
  • 30. Challenges to HRM 30  Globalization  Technological Advances  Nature of work  Size & composition of the workforce.  Rising employees' expectations  Life-style changes  Less attached/temporary employees  New HRM concerns  Learning organizations  Impact of new economic policy.  Political ideology of the Government.
  • 31. Trends and Issues of HRM 31 Issues of HRM in Nepal  Corporate Planning and Objectives  Human Resource Planning  Recruitment, Selection and Placement  Employee training and development  Performance Evaluation  Salary and other benefits  Job Design  Employee Relations
  • 32. Barriers to Development of HRM in Nepal 32  HRM in Nepal is mainly concerned with utilizing human energies.  It is least concerned with developing human competencies and potential for growth of employees.  Its focus is on achieving organizational goals without much regard to personal goals of employees.  HRM has not assumed a strategic role in Nepalese management.  People are not considered as a source of competitive advantage and important assets.
  • 33. Contd… 33  HRM is not given a strategic role. It lacks clear cut vision, mission and goals.  The attitudes of top management are not favorable towards HRM. Human resources are viewed as a cost rather than assets by management.  HRM is considered as a firefighting job to deal with labor grievance and indiscipline.  Line managers do not feel ownership for HRM.  Lack of mutual trust between labor and management.  Multiplicity of unions, union challenges, politicialization of unions and negative attitude of management towards labor unions.
  • 34. Contd… 34  HR aspects are not considered in policy and plan formulation.  Human resource development has remained an area of low priority. This has retarded professionalism in HRM. Performance based HRM practices are lacking.  Legal framework has remained weak and largely welfare oriented.  HRM is short range oriented. It is least concerned with future potential development of employees.