Introduction • It is concerned with selection of right person, at the right place for the right job and management of people from Recruitment to Retirement. • Organizations are people oriented – acquiring their services, developing their skills , motivating them to higher levels of performance and – ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. Definition • HRM is planning, organizing directing and controlling of the procurement , development, compensation, integration, maintenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished. – Edwin Flippo
• “HRM is the function performed in organizations
that facilitates the most effective use of people to achieve organizational and individual goals.” – Ivancevich and Glueck Objectives of HRM a. Societal objectives: – Ensure that their orgn. manages human resources in an ethical and socially responsible manner – ensuring compliance with legal and ethical standards. – minimize the negative impact of societal demands upon the orgn. • Organizational objectives: – HR dept should focus on achieving goals of the orgn. – HR dept should recognize its role in bringing in organization effectiveness. – HRM is the means to assist the orgn. with its primary objective of ensuring satisfactory accomplishment of the objectives of orgn. • Functional Objectives: – The dept’s level of service must be tailored to fit the orgn’s. needs. – HRM should aim at providing the orgn. with well trained and well motivated employees – HRM should employ the skills and abilities of the workforce efficiently and aim at making people strengths productive and to benefit orgn. • Personnel Objectives: – HRM should increase employees job satisfaction – It should meet the self actualization needs of the employees – It should assist the employees in achieving the personal goals. – should maintain the Quality of work life Nature of HRM • Pervasive function: performed by all managers at various levels • Action oriented: employee problems are solved rationally • Individual oriented: • People oriented: optimum arrangement between individual, jobs, orgn. and environment • Future oriented • Development oriented: trg provided, job rotation • Continuous process • Interdisciplinary • Directed towards achievement of objectives • Comprehensive function: covers all type of individuals Scope of HRM • Personnel aspect: – is concerned with HRP, recruitment, selection, placement, transfer, promotion, T &D, layoff and retrenchment, remuneration, incentives • Welfare aspect: – deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing , transport, medical assistance, education, health and safety, recreation facility • IR aspect: – union mgt relations, collective bargaining, grievance and disciplinary procedures, settlement of disputes Importance of HRM • Good HR practices helps in attracting and retaining the best people in the orgn. • Helps people for challenging roles, developing right attitudes towards the job and the company, developing loyalty and commitment • It promotes team work and team spirit among employees • Offers excellent growth opportunities to people • Allows people to work with commitment • Employment opportunities multiply • Scarce talent are used to best use Functions of HRM • Managerial Functions: – Planning – Organizing – Directing – Controlling • Operations Functions: – Procurement function: job analysis, HRP, Recruitment, Selection, Placement, Induction and orientation, internal mobility – Development : training, executive development, career planning and development – Motivation and compensation: job design, work scheduling, motivation, job evaluation, performance appraisal, compensation administration, incentives and benefits – Maintenance : health and safety, employee welfare, social security measures – Integration function: grievance redressal, discipline, teams and teamwork, collective bargaining, employee participation and empowerment, trade union and employee association, IR – Emerging issues; HRIS, IHRM, HR accounting, stress and counseling Principles of HRM / 10 C Model Evolution of HRM • Various stages HRM – The Commodity Concept: • Guild system was in operation – It is closely knit group of workers, concerned with selecting, training, rewarding and maintaining workers – Industrial revolution gave rise to factory system • Place of work was shifted from residence to factory and the management became separate from ownership • Close relationship between employees and owners were broken • Labour began to considered as a commodity to be bought and sold • Wages were based on demand and supply • Govt. did little to protect the workers • The factor of production concept: – Employees are considered a factor of production just like land, materials and machines. – F W Taylor in his scientific management stressed proper selection and training of employees to maximise production. – Employees gained better working conditions and earnings. • Paternalistic approach: – Based on the belief that Management must assume fatherly and protective attitude towards employees. – Formed trade union – Due to all these, employers began welfare schemes like health facilities, housing facilities, group insurance scheme, recreation facilities – Both employer and employee both began to realize the importance • Humanitarian Concept • To improve productivity, physical, social and psychological needs musts be met – as elton mayo stated money is not a factor in determining output than group standard, group incentive and group security. • Behavioral Human Resource Concept: – Based on the belief that employees are asset of an orgn. – efforts should be made to integrate employees with orgn. so that orgnal. Needs and employees aspirations can be achieved. – shift to two way communication, management by objectives, role of informal groups etc. • Emerging concept: – Aims at creating a feeling among workers that the orgn. is their own. – employees should be accepted as partners in the progress of the orgn. – Better working life should be provided and offer opportunities to exploit their full potential – focus on HRD