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Nature and Scope

of HRM

Prof.Heena Soni
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. Heena Soni
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. Heena Soni
What is HRM?
HRM is concerned with the peoples 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. Heena Soni
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. Heena Soni
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
Differences between PM &
HRM
Dimension 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. Heena Soni
The Nature of the Employment
Relationship
Prof. Heena Soni
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. Heena Soni
Functions of HR
MANAGERIAL
FUNCTIONS
Planning
Organising
Directing
Controlling
OPERATIVE
FUNCTIONS
Staffing
Development
Compensation
Motivation
Maintenance
Integration
Emerging Issues
Prof. Heena Soni
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. Heena Soni
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. Heena Soni
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 departments contribution at a level
appropriate to the organizations needs
Personal objectives
To assist employees in achieving their personal
goals in a manner that their personal goals enhance
the individuals contribution to the organization

Prof. Heena Soni
HRM and 3 Ps
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.
Evolution of HRM in India
Welfare (1920s-1930s)

Administration (1930s-
1940s)

Employee relations (1940-
1960s)

Functional expertise (1970s-
1980s)

Business partner / player
(1990s)
Prof. Heena Soni
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
peoples needs.
HRM is a study about the people in the
organization-how they are hired, trained,
compensated, motivated & maintained.


Prof. Heena Soni
THANK YOU
Prof. Heena Soni