Nature and Scope of HRM

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

HRM can be primarily described to consist of four essential functions namely:

Acquiring Developing Motivating Retaining

HRM refers to acquisition, development, motivation and retention of Human Resources in an organization.

Acquiring:

The acquisition function starts with planning for a number and categories of employees required and ends with staffing.

Developing:

Development function has four dimensions namely Employee Training, Management Development, Career Development followed by Succession Planning.

Motivating:

Involves identifying the individual motivational needs of employees and finding them ways to motivate them.

Retaining:

Aims at providing conducive work environment to the employees and nurturing them to make them feel committed and psychologically attached to the organization.

It helps the organisation to reach its goal

To employ the skills and abilities of the workforce efficiently

To provide the organisation with well trained and well motivated employees To provide job satisfaction to employees To develop and maintain a quality of work life To communicate HR policies to all the employees

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

Personnel Aspect: Manpower Planning, Recruitment, Selection, Training, Performance Appraisal, Compensation etc.

Scope Of HRM

Welfare Aspect: Working Conditions, Amenities such as canteen, housing facility, medical assistance, health and safety, recreational facility etc. Industrial Relations Aspect: Settlement of disputes, union management relations, grievance and disciplinary procedure etc.

Dimension
1. 2. 3. 4. 5. 6.

Personnel Management

Human Resources Management

Behaviour referent Norms/customs/practice Values/mission s Managerial task Monitoring Nurturing Management Role Communication Conflict handling T&D Transactional Indirect Reach temporary truce Controlled access to courses Interests of the org. are uppermost Transformational leadership Direct/Open Manage climate & culture Learning organization Mutuality of interests

7. Shared interests

HRM
Managerial Functions Operative Functions
Procurement

Planning
Organizing Directing Controlling

Development
Motivation & Compensation

Welfare
Integration Emerging Issues

Procurement

Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits

DEVELOPMENT

COMPENSATION & MOTIVATION

MAINTENANCE

Health, Safety, Welfare, Social security Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining HRIS, HR audit, Counseling, Mentoring, International HRM.

INTEGRATION

EMERGING ISSUES

Welfare (1920s-1930s) Administration (1930s- 1940s) Employee relations (19401960s) Functional expertise (1970s1980s) Business partner / player (1990s)

For Discussion

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.