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UNIT 1, HRM CONCEPTS

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UNIT 1, HRM, ACC TO DAVV SYLLABUS

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UNIT 1, HRM CONCEPTS

  1. 1. HUMAN RESOURCE MANAGEMENT
  2. 2. HRM Concept  Definition  Concept  Evolution and Relevance  HRM Functions  HRM in India and Global Scenario  Human Resource Policies
  3. 3. What is Management???  It is the art of getting Work done through other People.  Management in business and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively.
  4. 4. What is HR????  Human resources is the set of individuals who make up the workforce of an organization, business sector, or economy. other terms sometimes used include "manpower", "talent", "labour", or simply "people".
  5. 5. HRM - Definition  It is defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.  “HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.”
  6. 6. 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. Core Elements of HRM Organizations ------People ------ Management. The HRM process consists of planning, attracting, developing, and retaining the human resources (employees) of an organization
  7. 7. Concept  Human resource management means management of people at work. HRM is the process which binds people with organizations and helps both people and organization to achieve each others goal. Various policies, processes and practices are designed to help both employees and organization’s to achieve their goal.
  8. 8.  Human resource management is branch of management that deals with people at work, it is concerned with the human dimensions of management of the organization. As organization consists of people, therefore acquiring them, developing their skills, providing them motivation in order to attain higher goal and ensuring that the level of commitment is maintained are the important activities.
  9. 9.  Human Resources help in transforming the lifeless factors of production into useful products.  They are capable of enlargement i.e capable of producing an output that is greater than the sum of inputs. Once they get inspired, even ordinary people can deliver extraordinary results.  They can help an organization achieve results quickly , efficiently and effectively.
  10. 10. Functions of HRM
  11. 11. Objectives:  To help the organization reach its goals.  To employ the skills and abilities of the work force efficiently  To provide the organization with well trained and well motivated employees  To increase to the fullest the employee’s job satisfaction and self actualization.  To develop and maintain a quality work Life.  To communicate HR policies to all employees  To be ethically and socially responsive to the needs of the society.
  12. 12. It includes the personnel aspects of the management job, like  Conducting the job analysis  Planning labour needs and recruiting job candidates  Selecting job candidates  Orienting and training new employees  Managing wages and salaries  Providing incentives and benefits  Appraising performance  Conducting interviews, counseling, disciplining  Training and developing managers  Building employee commitment
  13. 13. Scope The scope of HRM is Very wide  Personal Aspect: It is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity etc.  Welfare Aspect: It deals with working conditions and amenities such as canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities etc.  Industrial Relations Aspect : This covers union – management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes etc.
  14. 14. Objectives of HRM  To help the organization reach its goals  To employ the skills and abilities of the work force efficiently.  To provide the organization with well trained and well motivated employees  To increase to the fullest the employee’s job satisfaction and self actualization.  To develop and maintain quality of work life  To communicate the HR policies to all employees.  To be ethically and socially responsible to the needs of society
  15. 15. Importance of HRM  At the enterprise level: Good HR practices help in attracting and retaining the best people in the organization It helps in training people for challenging roles, developing right attitude towards the job and the company, promoting team spirit, commitment etc  At the individual level: It promotes team work and team spirit among employees It offers excellent growth opportunities to people who have potential to rise It allows people to work with diligence and commitment  At the society level: Employment opportunities multiply Scarce talents are put to best use.
  16. 16. History of Human Resource Management Industrial Revolution: machines are brought in the production process, rapid progress in technology, jobs were more fragmented, specialization increased, but left workers with dull, boring , monotonous jobs. Govt. did very little to protect the interest of the workers  Scientific management: To improve efficiency and speed F W Taylor advocated scientific management. Scientific management is nothing but systematic analysis and breakdown of work into its smallest mechanical elements and reaaranging into most efficient combination. Improtance of training was also identified
  17. 17.  Trade Unionism: Workers joined hands to protect against the exploitive tendency of employers and unfair labor practices. TU tried to improve work conditions, pay and benefits, disciplinary actions etc.  Human relations movement: After Hawthorne experiments conducted by Elton Mayo, productivity not only depends on rewards, and the job design but also on certain social and psychological factors also.. Human relations movement led to the implementation of behavioural science techniques in industry.
  18. 18.  Human Resources approach: During early 60’s “pet milk theory” of human religionist's had been largely rejected(happy workers are productive or happy cows give more milk). It was recognized that workers are unique and have individual needs. The trend move towards treating employees as resources or assets emerged.
  19. 19. Evolution of concept of HRM Concept What is it all about? The Commodity concept Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers. The Factor of Production concept Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools. The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers’ productivity The Paternalistic concept/ Paternalism Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children. Cont…
  20. 20. The Strategic Role Of Human Resources Management The Humanitarian concept To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organization is a social system that has both economic and social dimensions. The Human Resource concept Employees are the most valuable assets of an organisation. There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of employees. The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.
  21. 21. Relevance of HRM  Change Management  Competence  Commitment  Congruence of objectives  Motivation
  22. 22. Functions of HRM Managerial Planning Organizing Staffing Directing Controlling
  23. 23. Operational Employment HR Development Compensation Mgt Employee Relations HR Planning Recruitment Selection Placement Induction Performance Appraisal Training Management Development Career Planning and Development Job Evaluation Wage and Salary Admn Incentives Bonus Fringe Benefits
  24. 24. Human resource policies  Human resource policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance management, employee relations and resource planning.  Each company has a different set of circumstances, and so develops an individual set of human resource policies.
  25. 25.  Personnel Procedures : Sequence of Steps  Personnel Programs : A plan of Action  Personnel Practices : Style and Methods
  26. 26. Types of Policies i. Functional or Organizational – policies which are grouped for different categories of personnel eg- for the mgmt dealing with planning, organizing & controlling etc. ii. Centralized – are planned for companies with several locations and are formulated at the Head Office iii. Major Policy – pertain to overall objectives, procedures and control which affect an organization as a whole. They are formulated by the Board of Directors and framework is established within which major executives for the remaining policies necessary to carry out the major objectives of an organization. iv. Minor Policy- cover relationships in a segment of and organization with considerable emphasis on details and procedures.
  27. 27. HR Policies  Originated Policies – established formally by top management  Appealed Policies – formulated on requests of subordinates who want to know handle some situations.  Imposed Policies – An organization accepts these policies due to external agencies like govt. trade association . Eg.- Not to accept any one below the age of 14 according to the factories act.  General Policies – These policies do not relate to specific issues in particular  Specific Policies – Policies relating to specific issue like staffing compensation , collective bargaining etc.  Written or Implicit Policies – are inferred from behavior of managers.
  28. 28. CHARECTERSTICS  Related to Objectives  Easy to Understand  Precise  Stable as well as flexible  Based on Facts  Appropriate numbers  Fair and Equitable  Reasonable  Review

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