Introduction to HRM

Chapter-1

Chapter Outline

A brief History Strategic Importance of HRM HRM and Organizational Effectiveness Objectives of the HRM Function Who perform HRM Activities HR department Operations

A Brief History

History of HRM can be traced to England. Where masons, carpenters, leather workers and other craftspeople organized themselves into guilds. They used their unity to improve their work conditions.

Indian Scenario and HRM

In the 50s,

There were strong belief that employees were recruited not to question why but only to doand-die.

In the 60s,

Terms like manpower, staff and personnel came to be used and instead of controlling the employees ,it became more and more acceptable to manage personnel as studies revealed that productivity of the workers could be improved if they were organized for the work.

In the 70s,

People realized that beyond a point ,productivity depended on people. Worker started demanding whatever they expected from the employers over and above their salaries. Personnel came to be called Human Resources

At the same time,

Experts observed that there were some strategic challenges of current times such as accelerating rates of change in all aspects of business

Increasing competition Globalization Technological change Changing work culture and so on.

Now we are visualizing the possibility of a global village.

But , are challenge?

we

prepared

for

ensuing

Hierarchy, Status, authority, responsibility and accountability are structural concepts. But in the Indian context,emotions,feelings,empathetic perceptions, impressions and the affective components have influenced people more than anything else.

On 0ther hand Mangers feel they only should Think and let workers do. The idea that boss is always right still persists.

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A good HRM environment ensures harmony between the boss and the subordinates. However, a healthy corporate philosophy ensuring uniform policies at all levels of an organization is necessary for good HRM.

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In the 21st centaury,

The HRM strategies in India has to focus on better individual-organization interface and greater emphasis on organizational effectiveness than on personal success.

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Therefore,

We can conclude that HRM is more crucial today for the success of any organization than ever before. Since then Workers must no longer be seen as liability, but as a key resource which needs to be carefully nurtured and constantly developed through Training and Development (T & D), transformational learning and so on..

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Strategic Importance of HRM

HRM Strategies are integrated within he organization, HRM plays a major role in clarifying the firms human resource problems and develops solutions to them. It is oriented towards action, the individual, worldwide interdependence, and the future. The main responsibility for managing human resources in a traditional arrangement rests with specialists in a division ( large companies) or team.
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Traditional HRM and Strategic HRM characteristics

Traditional HRM Responsibility for human Resources and Management Specialists Strategic HRM Line managers Improved understanding and strategic use of human assets Lead,Inspire,Underst and Short, intermediate, long term

Objective

Better Performance

Role of HRM area

Responds to needs

Time Focus

Short-term results

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Control

Rules,Policicies,Posit ion power

Bureaucratic,topdown,centralization

Flexible, based on human resources Open, participative, empowerment

Culture

Major Emphasis

Following the rules

Developing People

Accountability

Cost centers

Investment in Human Assets

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HRM and Organizational Effectiveness

Three Crucial elements are needed for firms to be effective:

Mission and Strategy Organizational Structure, and HRM

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Objectives of the HRM Function

Helping the organization reach its goals Employing the skills ad abilities of the workforce efficiently. Providing the organization with well-trained and wellmotivated employees. Increasing the fullest the employees job satisfaction and selfactualization. Developing and maintaining a quality of work life that makes employment in the organization desirable. Communicating HRM policies to all employees. Helping to maintain ethical policies and socially responsible behavior. Managing change to the mutual advantage of individuals,groups,the enterprise, and the public.

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To be a strategic business contributor, HR management must enhance organizational performance, expend human capital and be cost effective. Why?

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