mba 1st sem notes

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
 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
ation
Employee
Motivation

7. Differences between PM &
HRMDimension 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.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

10. Functions of HR
MANAGERIAL
FUNCTIONS
Planning
Organising
Directing
Controlling
OPERATIVE
FUNCTIONS
Staffing
Development
Compensation
Motivation
Maintenance
Integration
Emerging Issues
Prof.Sujeesha Rao

11. 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.Sujeesha Rao

12. 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.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 (1930s-
1940s)
 Employee relations (1940-
1960s)
 Functional expertise (1970s-
1980s)
 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

17. THANK YOU
Prof.Sujeesha Rao