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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
Prospects
of HRM

Industrial
Relations

HRM

Employee
Hiring

Employee
&
Executive
Remuner
ation

Employee
Maintenance

Employee
Motivation

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



Nature of
HRM
Differences between PM &
HRM
Dimension

1. Employment Contract

Personnel Management

Human Resources Management

3.

Behaviour referent

Careful delineation of written
Aim to go beyond contract
contracts
Importance of guiding clear rules Can do outlook, impatience with
rule
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

Personnel procedures

Wide ranging cultural, structural
& personnel strategies
Mutuality of interests

2. Rules

9.

Focus of attention for
interventions
10. Shared interests

Interests of the org. are
uppermost
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

OPERATIVE
FUNCTIONS

Planning

Staffing
Development

Organising

Compensation

Directing

Motivation

Controlling

Maintenance

Integration
Emerging Issues
Prof.Sujeesha Rao
Operative functions of HR
STAFFING

DEVELOPMENT

COMPENSATION
& MOTIVATION

Job
analysis, HRP, Recruitment, Selecti
on, Placement, Induction, Internal
Mobility
Competency profiling, Training and
development, Performance &
potential management, Career
management, 360 degree feedback
Job design, Work scheduling, Job
evaluation, Compensation
administration, Incentives and
benefits
Prof.Sujeesha Rao
Operative functions of HR (contd.)
MAINTENANCE

INTEGRATION

EMERGING
ISSUES

Health, Safety, Welfare, Soci
al security
Employment
relations, Grievance, Discipline, T
rade
unions, Participation, Collective
bargaining

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 (1930s1940s)



Employee relations (19401960s)



Functional expertise (1970s1980s)



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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Nature and scope of 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 Prospects of HRM Industrial Relations HRM Employee Hiring Employee & Executive Remuner ation Employee Maintenance Employee Motivation 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   Nature of HRM
  • 7. Differences between PM & HRM Dimension 1. Employment Contract Personnel Management Human Resources Management 3. Behaviour referent Careful delineation of written Aim to go beyond contract contracts Importance of guiding clear rules Can do outlook, impatience with rule 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 Personnel procedures Wide ranging cultural, structural & personnel strategies Mutuality of interests 2. Rules 9. Focus of attention for interventions 10. Shared interests Interests of the org. are uppermost 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 DEVELOPMENT COMPENSATION & MOTIVATION Job analysis, HRP, Recruitment, Selecti on, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits Prof.Sujeesha Rao
  • 12. Operative functions of HR (contd.) MAINTENANCE INTEGRATION EMERGING ISSUES Health, Safety, Welfare, Soci al security Employment relations, Grievance, Discipline, T rade unions, Participation, Collective bargaining 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 (1930s1940s)  Employee relations (19401960s)  Functional expertise (1970s1980s)  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