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Nature and Scope
of HRM
Prof.Sujeesha Rao
 Introduction
 Meaning & Definition of HRM
 Scope of HRM
 Differences between PM & HRM
 The Nature of employment relationship
 HRM-Functions & Objectives
 Evolution of HRM in India
 Why Study HRM?
Prof.Sujeesha Rao
Introduction
 Challenges faced by organizations
 Global competitiveness – implications on HR
 Work force diversity
 Ethical issues
 Advances in technology and communication
 Sensitive approach to environment
 Shift in employees need for meaningful work
Prof.Sujeesha Rao
What is HRM?
•HRM is concerned with the people’s dimension
in the organization
•Facilitating the competencies and retention of
skilled force
• Developing management systems that
promote commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.
Prof.Sujeesha Rao
Definition
•HRM refers to acquisition, retention, motivation and
maintenance of Human Resources in an organization.
•HRM is the planning, organising, directing & controlling
of the procurement, development, compensation
integration, maintenance and separation of human
resources to the end that individual, organizational and
social objectives are accomplished.
Prof.Sujeesha Rao
Scope of HRM
 Very Vast
 Covers all major
activities in the
working life of a
worker
-from time an
individual enters
into an
organization until
he or she leaves
comes under the
purview of HRM
Prospects
of HRM
HRM
Nature of
HRM
Industrial
Relations
Employee
Maintenance
Employee
Hiring
Employee
&
Executive
Remuner
ation
Employee
Motivation
Differences between PM &
HRMDimension Personnel Management Human Resources Management
1. Employment Contract Careful delineation of written
contracts
Aim to go beyond contract
2. Rules Importance of guiding clear rules Can do outlook, impatience with
rule
3. Behaviour referent Norms/customs/practices Values/mission
4. Managerial task Monitoring Nurturing
5. Management Role Transactional Transformational leadership
6. Communication Indirect Direct
7. Conflict handling Reach temporary truce Manage climate & culture
8. T&D Controlled access to courses Learning organization
9. Focus of attention for
interventions
Personnel procedures Wide ranging cultural, structural
& personnel strategies
10. Shared interests Interests of the org. are
uppermost
Mutuality of interests
Prof.Sujeesha Rao
The Nature of the Employment
Relationship
Prof.Sujeesha Rao
Functions
Functions of HRM include:
• Facilitating the retention of skilled and competent
employees
• Building the competencies by facilitating continuous
learning and development
• Developing practices that foster team work and
flexibility
• Making the employees feel that they are valued and
rewarded for their contribution
• Developing management practices that endanger high
commitment
• Facilitating management of work force diversity and
availability of equal opportunities to all.Prof.Sujeesha Rao
Functions of HR
MANAGERIAL
FUNCTIONS
Planning
Organising
Directing
Controlling
OPERATIVE
FUNCTIONS
Staffing
Development
Compensation
Motivation
Maintenance
Integration
Emerging Issues
Prof.Sujeesha Rao
Operative functions of HR
STAFFING Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility
DEVELOPMENT
Competency profiling, Training and
development, Performance &
potential management, Career
management, 360 degree feedback
COMPENSATION
& MOTIVATION
Job design, Work scheduling, Job
evaluation, Compensation
administration, Incentives and
benefits
Prof.Sujeesha Rao
Operative functions of HR (contd.)
MAINTENANCE
Health, Safety, Welfare,
Social security
INTEGRATION
Employment relations, Grievance,
Discipline, Trade unions,
Participation, Collective
bargaining
EMERGING
ISSUES
HRIS, HR audit, HR scorecard,
International HRM, Workforce
Diversity
Prof.Sujeesha Rao
Objectives of HRM
 Societal objectives
To be ethically & socially responsible to the needs of
the society while minimizing the negative impact of
such demands upon the organization
 Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
 Functional objectives
To maintain the department’s contribution at a level
appropriate to the organization’s needs
 Personal objectives
To assist employees in achieving their personal
goals in a manner that their personal goals enhance
the individual’s contribution to the organization
Prof.Sujeesha Rao
HRM and 3 P’s
• People – core strength of an organization
Any resource can be replaced but not HR
• Processes – evolve over a period of time
IT enabled environment facilitates engineering
effortlessly
• Performance – the pillars of performance are
people and IT
Organizational performance in terms of value
creation and return on investment
Prof.Sujeesha Rao
Evolution of HRM in India
 Welfare (1920s-1930s)
 Administration (1930s-
1940s)
 Employee relations (1940-
1960s)
 Functional expertise (1970s-
1980s)
 Business partner / player
(1990s)
Prof.Sujeesha Rao
Why Study HRM?
 Taking a look at people is a rewarding
experience
 People possess skills, abilities and aptitudes
that offer competitive advantage to any firm
 No computer can substitute human brain, no
machines can run without human intervention
& no organization can exist if it cannot serve
people’s needs.
 HRM is a study about the people in the
organization-how they are hired, trained,
compensated, motivated & maintained.
Prof.Sujeesha Rao
THANK YOU
Prof.Sujeesha Rao

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Chp 1 introduction to hrm

  • 1. Nature and Scope of HRM Prof.Sujeesha Rao
  • 2.  Introduction  Meaning & Definition of HRM  Scope of HRM  Differences between PM & HRM  The Nature of employment relationship  HRM-Functions & Objectives  Evolution of HRM in India  Why Study HRM? Prof.Sujeesha Rao
  • 3. Introduction  Challenges faced by organizations  Global competitiveness – implications on HR  Work force diversity  Ethical issues  Advances in technology and communication  Sensitive approach to environment  Shift in employees need for meaningful work Prof.Sujeesha Rao
  • 4. What is HRM? •HRM is concerned with the people’s dimension in the organization •Facilitating the competencies and retention of skilled force • Developing management systems that promote commitment • Developing practices that foster team work • Making employees feel valued and rewarded. Prof.Sujeesha Rao
  • 5. Definition •HRM refers to acquisition, retention, motivation and maintenance of Human Resources in an organization. •HRM is the planning, organising, directing & controlling of the procurement, development, compensation integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished. Prof.Sujeesha Rao
  • 6. Scope of HRM  Very Vast  Covers all major activities in the working life of a worker -from time an individual enters into an organization until he or she leaves comes under the purview of HRM Prospects of HRM HRM Nature of HRM Industrial Relations Employee Maintenance Employee Hiring Employee & Executive Remuner ation Employee Motivation
  • 7. Differences between PM & HRMDimension Personnel Management Human Resources Management 1. Employment Contract Careful delineation of written contracts Aim to go beyond contract 2. Rules Importance of guiding clear rules Can do outlook, impatience with rule 3. Behaviour referent Norms/customs/practices Values/mission 4. Managerial task Monitoring Nurturing 5. Management Role Transactional Transformational leadership 6. Communication Indirect Direct 7. Conflict handling Reach temporary truce Manage climate & culture 8. T&D Controlled access to courses Learning organization 9. Focus of attention for interventions Personnel procedures Wide ranging cultural, structural & personnel strategies 10. Shared interests Interests of the org. are uppermost Mutuality of interests Prof.Sujeesha Rao
  • 8. The Nature of the Employment Relationship Prof.Sujeesha Rao
  • 9. Functions Functions of HRM include: • Facilitating the retention of skilled and competent employees • Building the competencies by facilitating continuous learning and development • Developing practices that foster team work and flexibility • Making the employees feel that they are valued and rewarded for their contribution • Developing management practices that endanger high commitment • Facilitating management of work force diversity and availability of equal opportunities to all.Prof.Sujeesha Rao
  • 11. Operative functions of HR STAFFING Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility DEVELOPMENT Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback COMPENSATION & MOTIVATION Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits Prof.Sujeesha Rao
  • 12. Operative functions of HR (contd.) MAINTENANCE Health, Safety, Welfare, Social security INTEGRATION Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining EMERGING ISSUES HRIS, HR audit, HR scorecard, International HRM, Workforce Diversity Prof.Sujeesha Rao
  • 13. Objectives of HRM  Societal objectives To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization  Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness  Functional objectives To maintain the department’s contribution at a level appropriate to the organization’s needs  Personal objectives To assist employees in achieving their personal goals in a manner that their personal goals enhance the individual’s contribution to the organization Prof.Sujeesha Rao
  • 14. HRM and 3 P’s • People – core strength of an organization Any resource can be replaced but not HR • Processes – evolve over a period of time IT enabled environment facilitates engineering effortlessly • Performance – the pillars of performance are people and IT Organizational performance in terms of value creation and return on investment Prof.Sujeesha Rao
  • 15. Evolution of HRM in India  Welfare (1920s-1930s)  Administration (1930s- 1940s)  Employee relations (1940- 1960s)  Functional expertise (1970s- 1980s)  Business partner / player (1990s) Prof.Sujeesha Rao
  • 16. Why Study HRM?  Taking a look at people is a rewarding experience  People possess skills, abilities and aptitudes that offer competitive advantage to any firm  No computer can substitute human brain, no machines can run without human intervention & no organization can exist if it cannot serve people’s needs.  HRM is a study about the people in the organization-how they are hired, trained, compensated, motivated & maintained. Prof.Sujeesha Rao