Human Resource Management

Financial Resource

s

Physical Resources

Human Resourc

es

Organizational Goals

WHAT IS HR?????Human resources is the set of

individuals who make up the workforce of an organization, business sector or an economy.

Other terms sometimes used include "manpower", "talent", "labor" or simply "people".

What is HRM? The process of acquiring, training, appraising,

and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.

A management function that helps managers recruit, select, train and develop members for an organization.

HRM may be defined as a set of policies, practices and programs designed to maximize both personal and organizational goals.

"I believe the real difference between success and failure in a corporation can be very often traced to the question of how well the organization brings out the great energies and talents of its people."

Thomas J. Watson, Jr. 

And I'd say one of the great lessons I've learned over the past couple of decades, from a management perspective, is that really when you come down to it, it really is all about people and all about leadership. Steve Case

Nature of HRMIntegral part of process of managementComprehensive FunctionPervasive FunctionPeople OrientedBased on human relationsContinuous processScience as well as artInterdisciplinaryBasic to all functional areas

Scope of

HRM

Introduction to HRM

Employee Hiring

Employee motivation

Employee Maintenanc

e

Industrial

Relations

Prospects of

HRM

Scope of HRM

Industrial

Relation Aspect

Welfare Aspect

Personnel

Aspect

Objectives of HRMPersonnel Objectives

Functional Objectives

Organizational Objectives

Societal Objectives

Functions of HRM: objectivesSocietal Objectiv

esLegal

Compliance

Union-Manageme

nt Relations

Functions

Organizational

Employee Relations

Selection

Appraisal

Placement

Assessment

Policies, Principles and ProceduresPolicy : A plan of action.. A statement

of action committing management to a general course of action.

Principle: fundamental truth established by research, investigation and analysis….guide the managers in formulating policies, programs and procedures.

Procedures: a method for carrying out a policy….

Importance of HRM

Importance for organizationImportance for employeesImportance for society.

Limitations of HRMLack of Top Management Support

Improper Implementation

Inadequate Development Programs

Inadequate Information

Systems approach to HRMAn enterprise cannot work in isolation.Has to adjust its working to suit the

environment.Subsystems: Departments that are created

in an organization to carry out its business effectively.

Important Subsystems HR systemProduction SystemFinance SystemMarketing SystemResearch and development System

Place Of HR DepartmentSize Matters!!!!In case of a small unit…………

Small unit

owner

Production

manager

Sales Manager

Office Manager

Personnel

assistant

Accountant

Large Unit

Chairman

Director Productio

n

Director Finance

Director HRM

Director Marketin

g

Director R&D

HRM EnvironmentProactive not Reactive………Factors affecting HRM Environment

External Environment Internal Environment

External EnvironmentEconomic Factors

Political – Legal FactorsSocial and Cultural FactorsTechnological FactorsUnionsProfessionalism

SUPPLIERS

CUSTOMERS

COMPETITORSGLOBALIZATION

Internal Environment

MISSION

POLICIES

ORGANIZATIONAL CULTURE

ORGANIZATIONAL CONFLICT

Human Resource PlanningWhat??? When??? Where????

HOW???

HRP……The process by which a management

determines how an organization should move from its current manpower position to its desired manpower position.

Right Number and Right Kind of people Right Places Right Time to do things

which result in both the organization and individual receiving maximum benefit.

Objectives of HRPAssessing manpower

Assessing skill requirement.

Anticipating shortage and surplus of staff.

Controlling wage and salary costs

Optimum use of HR

Process of HRPAnalysis of objectives

and strategic plans of the

company

Preparing manpower inventory

Manpower forecasting

Manpower plans

Appraisal of manpower planning

Analysis of objectives and strategic plansMust be integrated with other business

policies.Analysis of each plan into sub-plans and

detailed program.

Preparing manpower inventoryManpower inventory: refers to assessment of

present and potential qualifications of present employees.

Avoid situation of over/under staffing.Analysis of current manpower supply. By

Department By Function By Occupation By Qualification…

Helps to find out gaps…

Manpower Forecasting• Analysis of staff during past 5 years

Employment Trends

• resignation• retirement

Replacement Needs

• Utilization of existing manpower

productivity

Manpower Forecasting• A situation when person

fails to come for work when he is scheduled for work.

Absenteeism

• Timely steps needed.Expansion and Growth

• Workload analysis to be done.Work Study

Manpower PlansDecide

required number of

people.

Develop programs

and strategies.

Development plans are designed

Training and Development PlansNot only for new employees but also for the

old ones.Tapping of talent required.The organization has no choice whether to

provide training or not…..but the only choice is to decide the method/ technique of training.

Types of HRPShort Term HRP - to match the individuals

with the job.Long Term HRP – to fulfill future vacancies.

Benefits of HRP Reduced Labor Costs.

Optimum Utilization of manpower

Identification of Gaps in existing manpower.

Improvement in overall business planning.

Career Succession Planning

Creates awareness in an organization.

Growth of Organization

Beneficial to the country.