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Human Resource Management
Lecture-01
10/10/12
Introduction to Course
Chapter 1. Understanding nature and Scope of HRM
Chapter 2. Human Resource Planning
Chapter 3. Job Analysis and Job Design
Chapter 4. Recruitment and Selection
Chapter 5. Training and development
Chapter 6. Performance Appraisal
Chapter 7. Compensation Management (components of
remuneration, incentives, benefits and services,
fringe benefits, perquisites, top executives
remuneration)
Introduction to Course
Chapter 8. Health and Safe Environment
Chapter 9. Managing Separations and Rightsizing
Chapter 10. Industrial Relations
Chapter 11. Equal Employment Practices in Pakistan
Chapter 12. International Human Resource Management
Chapter 13. Evaluating HR effectiveness
Lecture Overview
HRM Definition
Scope of HRM
Difference between HRM and PM
Functions of HRM Department
HRM Functions and Objectives
Human Resource Management
Reading Material
Gary Dessler : Human Resource Management
Publisher National Book Foundation
CHAPTER 1
UNDERSTANDING THE NATURE AND SCOPE
OF HRM
Lecture Overview
•What is HRM?
•HRM Activities
•Scope of HRM
•Difference between HRM and PM
•HRM Objectives and Functions
HUMAN RESOURCE MANAGEMENT (HRM)
HRM defined
According to Aswathappa,”HRM is management function concerned with
hiring , motivating and maintaining people in an organization. It focuses
on people in organization”
According to Gary Dessler, “ Human Resource Management refers to the policies
and practices one needs to carry out the people or human resource aspects of
management position including recruiting, screening, training, rewarding and
appraising.”
HRM: Peoples Dimensions In Organizations
• HRM: the application of management functions and principles
related to employees
• HRM functions applicable every where (not for profit and 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
and training until he or she leaves
HRM Activities
• HR Planning
• Job Analysis and Design
• Recruitment and Selection
• Training and Development
• Remuneration
• Welfare
• Safe and Healthy Work Environment
• Industrial relations
SCOPE OF HRM
1. Introduction to HRM
2. Employee Hiring
3. Employee Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM
Scope Of HRM
HRM
Prospects
of
HRM
IR
Career
Development
Introduction
of
HRM Employee
Hiring
Employee
Remuneration
Employee
Motivation
Employee
Maintenance
Source: Aswathappa, 2008, p.6
HRM concepts
People Management
The policies and practice which govern
how people are managed and
developed in organizations
Human Capital Management
An approach to obtaining, analyzing
and reporting on data which informs
the direction of value adding people
management strategic investment and
operational decisions at corporate
level and at the level of front line
management
Human Resources Management
The strategic and coherent approach
to the management the most of
organization’s most valued assets –
the people working there who
individually and collectively contribute
to the achievements of its objectives
Personnel Management
Personnel mmanagement is
concerned with obtaing, organizing
and motivating human resources
required by enterprise
The Semantics
• There are two terms:
1. PM (Personnel Management )
2. HRM (Human Resource Management )
• PM and HRM are different in scope and orientation
• HRM is broad concept
• PM and HRD (Human Resource Development) are part of HRM
Differences Between HRM and PM
Dimensions PM HRM
1.Employment contract Care full 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
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 the 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
Hard and Soft HRM
Hard (instrumental) PM approach:
• employees are viewed as a passive factor of production, an expense
• employees can be easily replaced and seen as disposable.
• Strategic, quantitative aspects of managing HRM as an economic factor
Soft (humanistic) HRM approach:
• stresses active employee participation
• gains employee commitment, adaptability and contribution of their
competences to achievement of organizational goals
• employees are valued as assets
• emphasizing communication, motivation and leadership
HRM Functions and Objectives
• The main objective of HRM is to ensure the availability of willing
and competent force to an organization
• There are other objective of HRM too
1. Societal objectives
2. Functional objectives
3. Organizational objectives
4. Personal objectives
HRM FUNCTIONS AND OBJECTIVES
Societal Objectives
Functional
Objectives
Personal
Objectives
Source: Aswathappa, 2008, p.8
Organizational
Objectives
HRM Functions and Objectives
1 Societal objectives
• Societal objectives of HRM make sure that the organization is
socially and ethically responsible
• Minimizing negative impact of societal demands on
organizations
• For example: EEO laws forces organizations to be ethical in
recruitment, to minimize the discrimination against hiring
based on ethnicity, race, and religion etc.
HRM Functions and Objectives
2 Organizational objectives
• To determine the role of HRM in organizational effectiveness
• Its purpose is to assist/serve organization
• HR department also serve other departments
HRM Functions and Objectives
3 Functional objectives
• To maintain department contribution in organizational
effectiveness
• HR department services must fit into the organizational
needs
HRM Functions and Objectives
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 and retained
• Satisfied employees excellent services excellent
organizational performance
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
HRM Functions and Objectives
Source: Aswathappa, 2008, p.10
Summary
•What is HRM?
•HRM Activities
•Scope of HRM
•Difference between HRM and PM
•HRM Objectives and Functions

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INTRODUCTION.ppt

  • 2. Introduction to Course Chapter 1. Understanding nature and Scope of HRM Chapter 2. Human Resource Planning Chapter 3. Job Analysis and Job Design Chapter 4. Recruitment and Selection Chapter 5. Training and development Chapter 6. Performance Appraisal Chapter 7. Compensation Management (components of remuneration, incentives, benefits and services, fringe benefits, perquisites, top executives remuneration)
  • 3. Introduction to Course Chapter 8. Health and Safe Environment Chapter 9. Managing Separations and Rightsizing Chapter 10. Industrial Relations Chapter 11. Equal Employment Practices in Pakistan Chapter 12. International Human Resource Management Chapter 13. Evaluating HR effectiveness
  • 4. Lecture Overview HRM Definition Scope of HRM Difference between HRM and PM Functions of HRM Department HRM Functions and Objectives Human Resource Management
  • 5. Reading Material Gary Dessler : Human Resource Management Publisher National Book Foundation
  • 6. CHAPTER 1 UNDERSTANDING THE NATURE AND SCOPE OF HRM
  • 7. Lecture Overview •What is HRM? •HRM Activities •Scope of HRM •Difference between HRM and PM •HRM Objectives and Functions
  • 8. HUMAN RESOURCE MANAGEMENT (HRM) HRM defined According to Aswathappa,”HRM is management function concerned with hiring , motivating and maintaining people in an organization. It focuses on people in organization” According to Gary Dessler, “ Human Resource Management refers to the policies and practices one needs to carry out the people or human resource aspects of management position including recruiting, screening, training, rewarding and appraising.”
  • 9. HRM: Peoples Dimensions In Organizations • HRM: the application of management functions and principles related to employees • HRM functions applicable every where (not for profit and 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 and training until he or she leaves
  • 10. HRM Activities • HR Planning • Job Analysis and Design • Recruitment and Selection • Training and Development • Remuneration • Welfare • Safe and Healthy Work Environment • Industrial relations
  • 11. SCOPE OF HRM 1. Introduction to HRM 2. Employee Hiring 3. Employee Remuneration 4. Employee Motivation 5. Employee Maintenance 6. Industrial Relations 7. Prospects of HRM
  • 12. Scope Of HRM HRM Prospects of HRM IR Career Development Introduction of HRM Employee Hiring Employee Remuneration Employee Motivation Employee Maintenance Source: Aswathappa, 2008, p.6
  • 13. HRM concepts People Management The policies and practice which govern how people are managed and developed in organizations Human Capital Management An approach to obtaining, analyzing and reporting on data which informs the direction of value adding people management strategic investment and operational decisions at corporate level and at the level of front line management Human Resources Management The strategic and coherent approach to the management the most of organization’s most valued assets – the people working there who individually and collectively contribute to the achievements of its objectives Personnel Management Personnel mmanagement is concerned with obtaing, organizing and motivating human resources required by enterprise
  • 14. The Semantics • There are two terms: 1. PM (Personnel Management ) 2. HRM (Human Resource Management ) • PM and HRM are different in scope and orientation • HRM is broad concept • PM and HRD (Human Resource Development) are part of HRM
  • 15. Differences Between HRM and PM Dimensions PM HRM 1.Employment contract Care full 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
  • 16. 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 the 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
  • 17. Hard and Soft HRM Hard (instrumental) PM approach: • employees are viewed as a passive factor of production, an expense • employees can be easily replaced and seen as disposable. • Strategic, quantitative aspects of managing HRM as an economic factor Soft (humanistic) HRM approach: • stresses active employee participation • gains employee commitment, adaptability and contribution of their competences to achievement of organizational goals • employees are valued as assets • emphasizing communication, motivation and leadership
  • 18. HRM Functions and Objectives • The main objective of HRM is to ensure the availability of willing and competent force to an organization • There are other objective of HRM too 1. Societal objectives 2. Functional objectives 3. Organizational objectives 4. Personal objectives
  • 19. HRM FUNCTIONS AND OBJECTIVES Societal Objectives Functional Objectives Personal Objectives Source: Aswathappa, 2008, p.8 Organizational Objectives
  • 20. HRM Functions and Objectives 1 Societal objectives • Societal objectives of HRM make sure that the organization is socially and ethically responsible • Minimizing negative impact of societal demands on organizations • For example: EEO laws forces organizations to be ethical in recruitment, to minimize the discrimination against hiring based on ethnicity, race, and religion etc.
  • 21. HRM Functions and Objectives 2 Organizational objectives • To determine the role of HRM in organizational effectiveness • Its purpose is to assist/serve organization • HR department also serve other departments
  • 22. HRM Functions and Objectives 3 Functional objectives • To maintain department contribution in organizational effectiveness • HR department services must fit into the organizational needs
  • 23. HRM Functions and Objectives 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 and retained • Satisfied employees excellent services excellent organizational performance
  • 24. 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 HRM Functions and Objectives Source: Aswathappa, 2008, p.10
  • 25. Summary •What is HRM? •HRM Activities •Scope of HRM •Difference between HRM and PM •HRM Objectives and Functions