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What does it mean HRM?

HRM is a management function concerned with hiring,motivating and maintaing people in the organisation .It focuses on the people in the organisation.

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Personnel vs. HRMPersonnel management HRMTime and planning

perspective

Short term, reactive, ad

hoc, marginal

Long term, proactive,

strategic, integrated

Psychologicalcontract

Compliance Commitment

Control system External controls Self-control

Employee relations

perpective

collective, low trust individual, high trust

Preferred structures Bureaucratic/mechanistic,

centralised, formal roles

developed, flexible

roles

Roles Specialist Integrated

Evaluation criteria Cost minimization Maximum utilisation3

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The cycle of personnelPlanning

Recruiting & Selection

Career planningAppraisal

Rewarding

Performance

Development & Training

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HRM function has four key

objectives:Staffing objectives

Performance objectivesChange-management objectives

Administration objectives

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Functions of HRMFunctions of HRM

Managerial Functions Operative FunctionsPlanning Employment

Organizing HRD

Directing Compensation

Controlling Human Relations

Industrial Relations

T and D

Recent Trends in HRM6

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HRM in a small-scale unitOwner/Manager

Production Sales Office Accountant

Manager Manager Manager

Personnel

Assistant

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HRM in a large-scale unitChairman and Managing Director

Director Director Director Director Director

Prod. Finance Personnel/HRM Mktg. R&D

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Manage

r

personn

el

Manager Admn

Manager HRD

Appraisal T&D

Manager IR

HRP hiring Grievance HandlingCompensation

PR Canteen Medical Welfare Transport l

e

L

e

g

a

l

Legal

Composition of HR Dept

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HRM as a Central Sub-System

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Finance Marketing Materials

Technology HRM Information

Production

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Strategic HRMThe linking of human resources with

strategic goals and objectives in order

to improve business performance anddevelop organizational culture thatfoster innovation and flexibility

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Assessing HR Effectiveness

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Diagnostic Measures of HR

Effectiveness

HR expense per employee

Compensation as a percent ofexpenses

HR department expense as a

percent of total expenses

Cost of hires

Turnover rates

Absenteeism rates

Workers compensation per

employee

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HRD CLIMATE

O

C

TA

P

A

CE

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THANKS