HUMAN RESOURCE
MANAGEMENT
HUMAN RESOURCE MANAGEMENT
• Human Resource (HR) management deals with the design of formal
systems in an organization to ensure the effective and efficient use of
human talent to accomplish organizational goals.
• Human resource management is the process of acquiring, training,
appraising, and compensating employees, and attending to their
labor relations, health and safety, and fairness concerns.
Importance of Human Resource Management
Managers don’t want:
• To have employees not doing their best.
• To hire the wrong person for the job.
• To experience high turnover of employees.
• To have company in court due to discriminatory actions.
• To let a lack of training undermine department’s effectiveness.
• To commit any unfair labor practices.
HR & COMPETITIVE ADVANTAGE
• People offer skills, capabilities & knowledge which help execute firm’s
strategies successfully.
• By aligning human resources plans to business plans that help
accomplish business objectives.
• HR has active role in policy formulation, mediating employee
grievances, monitoring compliance with employment laws and
enforcing codes of conduct.
• Organisational designs do not remain static
HR & COMPETITIVE ADVANTAGE
• Organisational designs do not remain static over a period of time.
Environmental changes compel organisations redesign their structures.
• Change management is critical to the success of any firm.
• The three
strategies that help
an organisation
achieve
competitive
advantage are:
• Innovation—being
the unique
producer
• Quality—
delivering high
quality goods and
services
• Cost leadership—
leveraging on all
possible means to
save on cost.
• HRM moulds
behaviours of
employees to suit
each of the these
strategies
SCOPE & NATURE OF HRM
The nature of human resource management is people-centred and relevant in all
types of organisations.
• HRM concern with building of human capital.
• HRM necessitates alignment of HR policies and practices with the organisation’s
goals—both corporate as well as functional.
• HRM involves in implementing management principles in the organisation.
• HRM assumes that it is the people who make the difference. They alone are
capable of generating value and adding to the competitive advantage to
organisations.
• HR activities are not the sole responsibility of the HR specialists. Line managers
are equally responsible for carrying out the activities.
• HR functions are not confined to business establishments only.
Objectives of HRM
• Societal Objectives: seek to ensure that the organization
becomes socially responsible to the needs and challenges
of the society while minimizing the negative impact of
such demands upon the organization.
• Organizational Objectives: it recognizes the role of HRM
in bringing about organizational effectiveness. It makes
sure that HRM is not a standalone department, but
rather a means to assist the organization with its primary
objectives.
• Functional Objectives: is to maintain the department’s
contribution at a level appropriate to the organization’s
needs. The department’s value should not become too
expensive at the cost of the organization it serves.
• Personnel Objectives: it is to assist employees in
achieving their personal goals, at least as far as these
goals enhance the individual’s contribution to the
organization. Personal objectives of employees must be
met if they are to be maintained, retained and motivated.
HRM FUNCTIONS
• Planning: Preparing forecasts of future HR
needs in the light of an organisation’s
environment, mission and objectives
• Staffing: Obtaining people with the
appropriate skills, abilities, knowledge .
• Developing: Analysing learning
requirements to ensure that employees
possess the knowledge and skills to perform
satisfactorily in their jobs or to advance in
the organisation.
• Motivating: The design and administration
of reward systems. HR practices include job
evaluation, performance appraisal, pay and
benefits.
HRM FUNCTIONS
• Maintaining: The administration and
monitoring of workplace safety, health,
and welfare policies .
• Managing relationships: Encompasses a
range of employee
involvement/participation schemes in
non-union or union work places.
• Managing change: This involves helping
others to envision the future.
• Evaluating: Designing the procedures
and processes for measuring.
