What is the Scope and Significance of HRM

7/30/2019 What is the Scope and Significance of HRM

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1. What is the scope and significance of HRM?

Scope:

HRM in Personnel Management, HRM in Employee Welfare, HRM in Industrial Relations

Significance:

Organisational, Social, Professional

2. Explain the journey from personal to HRM?

a. The modern view of human resource management first gained prominence in 1981 with itsintroduction on the prestigious MBA course at Harvard Business School. The Harvard MBA

provided a blueprint for many other courses throughout North America and the rest of the world,

making its interpretation of HRM particularly influential (Beer et al, 1984; Guest, 1987; Poole,

1990). Simultaneously, other interpretations were being developed in Michigan and New York.

b. These ideas spread to other countries in the 1980s and 1990s, particularly Australia, New Zealand,

parts of northern Europe - especially the UK, Ireland and Scandinavia - and also South and South-

East Asia and South Africa. Today, the HRM approach is influential in many parts of the world.

3. The guest model.

Another HR Model was developed by David Guest in 1997 claims to be much superior to

other models.

This model claims that the HR Manager has specific strategies to begin with, which

demand certain practices and when executed, will result in outcomes. Theses outcomes

include behavioral, performance related and financial rewards.

4. roles and responsibility of a HR manager.1. Human Resource Man as an Intellectual : The basic skill

in the human resource field as compared to technologists or

financial experts is the skill to communicate, articulate, understand

and above all, to be an expert when it comes to putting policies and

agreements in black and white. The personnel mans skill lies in his

command over the language. A personnel man has to deal with

employees and he must possess the skills of conducting fruitful and

systematic discussions and of communicating effectively. He

should also be in a position to formulate principles and foresee theproblems of the organisation. This means that he would require the

mental ability to deal with his people in an intelligent manner as well

as to understand what they are trying to say..

2. Human Resource Man as an Educator : It is not enough

that a human resource man has command-over the language,

which, however, remains his primary tool. He should be deeply

interested in learning and also in achieving growth. Basically,

human beings like to grow and realise their full potential. In order to

harmonise the growth of individuals with that of the organisation, a


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personnel administrator must not only provide opportunities for his

employees to learn, get the required training and assimilate new

ideas but also he himself should be a teacher. A personnel man

who simply pushes files and attends labour courts for conciliation

purposes and other rituals of legal procedure for the settlement of

industrial disputes is not a personnel administrator of the future.

3. Human Resource Man as a Discriminator : A human

resource administrator must have the capacity to discriminate 16between right and wrong, between that which is just and unjust and

merit and non-merit. In other words, he should be a good judge

when he sits on a selection board, a fair person when he advises

on disciplinary matters and a good observer of right conduct in an

organisation.

4. Human Resource Man as an Executive : The human

resource man must execute the decisions of the management and

its policies with speed, accuracy and objectivity. He has to

streamline the office, tone up the administration and set standards

of performance. He has to coordinate the control functions in

relation to the various other divisions and, in doing so he should be

in a position to bring unity of purpose and direction in the activities

of the personnel department. He must ask relevant questions and

not be merely involved in the office routine whereby the status quo

is maintained. He should have the inquisitiveness to find out causes

of delay, tardy work and wasteful practices, and should be keen to

eliminate those activities from the personnel functions which have

either outlived their utility or are not consistent with the objectives

and purposes of the organisation.5. Human Resource Man as a Leader : Being basically

concerned with people or groups of people, and being placed in the

group dynamics of various political and social functions of an

organisation, a Human resource man must not shirk the role of

leadership in an organisation. He, by setting his own example and

by working towards the objectives of sound personnel manageme

Overall Responsibilities

Human resource managers have strategic and functional responsibilities for all of the HR disciplines. A human resource

manager has the expertise of an HR generalist combined with general business and management skills. In large

organizations, a human resource manager reports to the human resource director or a C-level human resource executive.

In smaller companies, some HR managers perform all of the department's functions or work with an HR assistant or

generalist that handles administrative matters. Regardless of the size of department or the company, a human resource

manager should have the skills to perform every HR function, if necessary.

Compensation and Benefits

Human resource managers provide guidance and direction to compensation and benefits specialists. Within this

discipline, human resources managers develop strategic compensation plans, align performance management systems

with compensation structure and monitor negotiations for group health care benefits. Examples of human resource


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manager responsibilities include monitoring Family and Medical Leave Act compliance and adherence to confidentiality

provisions for employee medical files. Human resource managers for small companies might also conduct open

enrollment for employees' annual elections pertaining to health care coverage.

Training and Development

Employee training and development includes new hire orientation, leadership training and professional development

seminars and workshops. Human resource managers oversee needs assessments to determine when training is

necessary and the type of training necessary to improve performance and productivity. Human resource managers

responsible for conducting needs assessment have a hands-on role in evaluating overall employee performance to decide

if the workforce would benefit from additional training and orientation. They examine employee performance records to

identify areas where employees could improve through job skills training or employee development, such as seminars or

workshops on leadership techniques.They also play an integral role in implementing employee development strategy and

succession planning based on training and professional development. Human resource managers responsible for

succession planning use their knowledge of employee development, training and future business needs to devise career

tracks for employees who demonstrate the aptitude and desire for upward mobility.

Employee Relations

Although the employee relations specialist is responsible for investigating and resolving workplace issues, the human

resource manager has ultimate responsibility for preserving the employer-employee relationship through designing an

effective employee relations strategy. An effective employee relations strategy contains specific steps for ensuring the

overall well-being of employees. It also ensures that employees have a safe working environment, free from discrimination

and harassment. Human resource managers for small businesses conduct workplace investigations and resolve

employee complaints. Human resource managers may also be the primary contact for legal counsel in risk mitigation

activities and litigation pertaining to employee relations matters. An example of risk mitigation handled by a human

resource manager includes examining current workplace policies and providing training to employees and managers on

those policies to minimize the frequency of employee complaints due to misinterpretation or misunderstanding of

company policies.

Recruitment and Selection

Human resource managers develop strategic solutions to meet workforce demands and labor force trends. An

employment manager actually oversees the recruitment and selection processes; however, an HR manager is primarily

responsible for decisions related to corporate branding as it relates to recruiting and retaining talented employees. For

example, a human resource manager in a health care firm might use her knowledge about nursing shortages to develop a

strategy for employee retention, or for maintaining the current staffing levels. The strategy might include developing an

incentive program for nurses or providing nurses with cross-training so they can become certified in different specialties to

become more valuable to the organization. Corporate branding as it relates to recruitment and retention means promoting

the company as an employer of choice. Human resource managers responsible for this usually look at the recruitment and

selection process, as well as compensation and benefits to find ways to appeal to highly qualified applicants.

HR planing with examplesAccording to Wikstrom, Human Resource Planning consistsof a series of activities, viz.,

(a) Forecasting future manpower requirements, either in terms

of mathematical projections of trends in the economic environmentand developments in industry, or in terms of judgemental estimates

based upon the specific future plans of a company;

(b) Making an inventory of present manpower resources and

assessing the extent to which these resources are employedoptimally;

(c) Anticipating manpower problems by projecting present


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resources into the future and comparing them with the forecast of

requirements to determine their adequacy, both quantitatively andqualitatively; and

(d) Planning the necessary programmes of requirements,

selection, training, development, utilisation, transfer, promotion,

motivation and compensation to ensure that future manpowerrequirements are properly met.

Recruitment: process and method

Recruitment process

[edit]Job analysis

The starting point to a recruitment effort is to perform a job analysis and/or in some cases a task analysis, to document

the actual or intended requirements of the job. From these the relevant information is captured in such documents as job

descriptions and job specifications. Often a company will already have job descriptions that represent a historical

collection of tasks performed. Where already drawn up, these documents need to be reviewed or updated to reflect

present day requirements. Prior to initiating the recruitment stages a person specification should be finalised to provide

the recruiters commissioned with the requirements and objectives of the project.[1]

[edit]Sourcing

Sourcing is the use of one or more strategies to attract or identify candidates to fill job vacancies. It may involve internal

and/or external advertising, using appropriate media, such as local or national newspapers, specialist recruitment media,

professional publications, window advertisements, job centres, or in a variety of ways via the internet. Alternatively,

employers may use recruitment consultancies to find otherwise scarce candidates who may be content in their current

positions and are not actively looking to move companies may be proactively identified. This initial research for so-called

passive candidates, also called name generation, results in a contact information of potential candidates who can then be

contacted discreetly to be screened and approached.[1]

[edit]Screening and selectionSuitability for a job is typically assessed by looking for relevant skills, knowledge, aptitude, qualifications and educational

or job related experience. These can be determined via: screeningrsums (also known as CVs); job

applications; interviews. More proactive idenification methods

include psychological, aptitude, numeracy and literacy testing. the testimony of references, Many recruiters and agencies

use applicant tracking systems to perform the filtering process, along with software tools forpsychometric testing. In many

countries, employers are legally mandated to ensure their screening and selection processes meet equal opportunity and

ethical standards.[1]

In addition to the above selection assessment criteria, employers are likely to recognise the value of candidates who also

have the so-called 'soft skills', such as interpersonal or team leadership and have the ability to reinforce the company

brand through their behaviour in front of customers and suppliers. Multinational organisations and those that recruit from a

range of nationalities are also concerned candidates will fit into the prevailing company 'culture'.[2]

[edit]Lateral hiring

"Lateral hiring" refers to a form of recruiting; the term is used with two different, almost opposite meanings. In one

meaning, the hiring organization targets employees of another, similar organization, possibly luring them with a better

salary and the promise of better career opportunities. An example is the recruiting of a partner of a law firm by another law

firm. The new lateral hire then has specific applicable expertise and can make a running start in the new job. In some

professional branches such lateral hiring was traditionally frowned upon, but the practice has become increasingly more

common. An employee's contract may have a non-compete clause preventing such lateral hiring.
http://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=2http://en.wikipedia.org/wiki/Job_analysishttp://en.wikipedia.org/wiki/Task_analysishttp://en.wikipedia.org/wiki/Job_descriptionhttp://en.wikipedia.org/wiki/Job_descriptionhttp://en.wikipedia.org/wiki/Person_specificationhttp://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=3http://en.wikipedia.org/wiki/Sourcing_(personnel)http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=4http://en.wikipedia.org/wiki/Job_(role)http://en.wikipedia.org/wiki/Skillhttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Aptitudehttp://en.wikipedia.org/wiki/Genuine_Occupational_Qualificationhttp://en.wikipedia.org/wiki/Screening_Resumeshttp://en.wikipedia.org/wiki/Application_for_employmenthttp://en.wikipedia.org/wiki/Application_for_employmenthttp://en.wikipedia.org/wiki/Job_interviewhttp://en.wikipedia.org/wiki/Psychological_testshttp://en.wikipedia.org/wiki/Employment_testinghttp://en.wikipedia.org/wiki/Numeracyhttp://en.wikipedia.org/wiki/Literacyhttp://en.wikipedia.org/wiki/Applicant_tracking_systemhttp://en.wikipedia.org/wiki/Psychometric_testinghttp://en.wikipedia.org/wiki/Equal_opportunityhttp://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Recruitment#cite_note-1http://en.wikipedia.org/wiki/Recruitment#cite_note-1http://en.wikipedia.org/wiki/Recruitment#cite_note-1http://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=5http://en.wikipedia.org/wiki/Law_firmhttp://en.wikipedia.org/wiki/Non-compete_clausehttp://en.wikipedia.org/wiki/Non-compete_clausehttp://en.wikipedia.org/wiki/Law_firmhttp://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=5http://en.wikipedia.org/wiki/Recruitment#cite_note-1http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Equal_opportunityhttp://en.wikipedia.org/wiki/Psychometric_testinghttp://en.wikipedia.org/wiki/Applicant_tracking_systemhttp://en.wikipedia.org/wiki/Literacyhttp://en.wikipedia.org/wiki/Numeracyhttp://en.wikipedia.org/wiki/Employment_testinghttp://en.wikipedia.org/wiki/Psychological_testshttp://en.wikipedia.org/wiki/Job_interviewhttp://en.wikipedia.org/wiki/Application_for_employmenthttp://en.wikipedia.org/wiki/Application_for_employmenthttp://en.wikipedia.org/wiki/Screening_Resumeshttp://en.wikipedia.org/wiki/Screening_Resumeshttp://en.wikipedia.org/wiki/Genuine_Occupational_Qualificationhttp://en.wikipedia.org/wiki/Aptitudehttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Skillhttp://en.wikipedia.org/wiki/Job_(role)http://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=4http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Sourcing_(personnel)http://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=3http://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-0http://en.wikipedia.org/wiki/Person_specificationhttp://en.wikipedia.org/wiki/Job_descriptionhttp://en.wikipedia.org/wiki/Job_descriptionhttp://en.wikipedia.org/wiki/Task_analysishttp://en.wikipedia.org/wiki/Job_analysishttp://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=2


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In another meaning, a lateral hire is a newly hired employee who has no prior specific applicable expertise for the new job,

and for whom this job move is a radical change of career. An example is the recruiting of a university professorto

become chairman of the board of a company.

[edit]Onboarding

For more details on this topic, see onboarding.

"Onboarding" is a term which describes the process of helping new employees become productive members of an

organization. A well-planned introduction helps new employees become fully operational quickly and is often integratedwith a new company and environment. Onboarding is included in the recruitment process for retention purposes. Many

companies have onboarding campaigns in hopes to retain top talent that is new to the company; campaigns may last

anywhere from 1 week to 6 months.

What is on the job and off the job training.ON-THE-JOB TRAINING is given at the work place by superior in relatively short period of time. This type

of training is cheaper & less time-consuming. This training can be imparted by basically four methods: -

Coaching is learning by doing. In this, the superior guides his sub-ordinates & gives him/her jobinstructions. The superior points out the mistakes & gives suggestions for improvement.

Job Rotation: - In this method, the trainees move from one job to another, so that he/she should be ableto perform all types of jobs. E.g. In banking industry, employees are trained for both back-end & front-end jobs. In case of emergency, (absenteeism or resignation), any employee would be able to perform

any type of job.

OFF THE JOB TRAINING: - is given outside the actual work place. Lectures/Conferences:- This approach is well adapted to convey specific information, rules, procedures

or methods. This method is useful, where the information is to be shared among a large number of

trainees. The cost per trainee is low in this method.

Films: - can provide information & explicitly demonstrate skills that are not easily presented by other

techniques. Motion pictures are often used in conjunction with Conference, discussions to clarify &

amplify those points that the film emphasized. Simulation Exercise: - Any training activity that explicitly places the trainee in an artificialenvironment that closely mirrors actual working conditions can be considered a Simulation. Simulation

activities include case experiences, experiential exercises, vestibule training, management games & role-play.

Cases: -present an in depth description of a particular problem an employee might encounter on the job

The employee attempts to find and analyze the problem, evaluate alternative courses of action & decidewhat course of action would be most satisfactory.

Concept and significance of performance appraisal.

The process by which a manager or consultant (1) examines and evaluates an employee's work behavior by comparing it with preset

standards, (2) documents the results of the comparison, and (3) uses the results to provide feedback to the employee to show

where improvements are needed and why.

Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired.

It is said that performance appraisal is an investment for the company which can be justified by following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. Inthis regards, inefficient workers can be dismissed or demoted in case.
http://en.wikipedia.org/wiki/University_professorhttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=6http://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/wiki/Onboardinghttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/manager.htmlhttp://www.businessdictionary.com/definition/consultant.htmlhttp://www.businessdictionary.com/definition/examine.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/work.htmlhttp://www.businessdictionary.com/definition/behavior.htmlhttp://www.businessdictionary.com/definition/documents.htmlhttp://www.businessdictionary.com/definition/result.htmlhttp://www.investorguide.com/definition/comparison.htmlhttp://www.businessdictionary.com/definition/use.htmlhttp://www.businessdictionary.com/definition/provide.htmlhttp://www.businessdictionary.com/definition/feedback.htmlhttp://www.businessdictionary.com/definition/improvements.htmlhttp://www.businessdictionary.com/definition/appraisal.htmlhttp://www.businessdictionary.com/definition/employed.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/training.htmlhttp://www.businessdictionary.com/definition/training.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/employed.htmlhttp://www.businessdictionary.com/definition/appraisal.htmlhttp://www.businessdictionary.com/definition/improvements.htmlhttp://www.businessdictionary.com/definition/feedback.htmlhttp://www.businessdictionary.com/definition/provide.htmlhttp://www.businessdictionary.com/definition/use.htmlhttp://www.investorguide.com/definition/comparison.htmlhttp://www.businessdictionary.com/definition/result.htmlhttp://www.businessdictionary.com/definition/documents.htmlhttp://www.businessdictionary.com/definition/behavior.htmlhttp://www.businessdictionary.com/definition/work.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/examine.htmlhttp://www.businessdictionary.com/definition/consultant.htmlhttp://www.businessdictionary.com/definition/manager.htmlhttp://www.businessdictionary.com/definition/process.htmlhttp://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/w/index.php?title=Recruitment&action=edit&section=6http://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/University_professor


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2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possiblethrough performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages whichincludes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. Thecriteria should be merit rather than seniority.

3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame trainingpolicies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed forefficient employees. It also helps in framing future development programmes.

4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selectionprocedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure.Future changes in selection methods can be made in this regard.

5. Communication: For an organization, effective communication between employees and employers is very important. Through

performance appraisal, communication can be sought for in the following ways:a. Through performance appraisal, the employers can understand and accept skills of subordinates.b. The subordinates can also understand and create a trust and confidence in superiors.c. It also helps in maintaining cordial and congenial labour management relationship.d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons

efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him toimprove his performance in the future.

What is the Scope and Significance of HRM

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