Nature and Scope of HRM

Prof.Heena Soni

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. Heena Soni

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. Heena Soni

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. Heena Soni

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. Heena Soni

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

ationEmployee Motivation

Differences between PM & HRM

Dimension 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. Heena Soni

The Nature of the Employment Relationship

Prof. Heena Soni

FunctionsFunctions 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. Heena Soni

Functions of HR

MANAGERIAL FUNCTIONS

Planning Organising

Directing Controlling

OPERATIVE FUNCTIONS

Staffing Development

Compensation Motivation

Maintenance Integration

Emerging IssuesProf. Heena Soni

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. Heena Soni

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. Heena Soni

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 objectivesTo recognize the role of HRM in bringing about organizational effectiveness

Functional objectivesTo maintain the department’s contribution at a level appropriate to the organization’s needs

Personal objectivesTo assist employees in achieving their personal goals in a manner that their personal goals enhance the individual’s contribution to the organization

Prof. Heena Soni

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.

Evolution of HRM in India Welfare (1920s-1930s)

Administration (1930s- 1940s)

Employee relations (1940-1960s)

Functional expertise (1970s-1980s)

Business partner / player(1990s)

Prof. Heena Soni

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. Heena Soni

THANK YOU

Prof. Heena Soni