Human Resource Management (HRM):

An Overview

Content:

•The Origins of HRM •Aims of HRM

•The Driving Forces for HRM•Issues of HRM

Defining HRM• According to Flippo, ‘Personnel Management, or say, human resources

management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end, that individual, Organizational and social objectives are accomplished”.

• HRM can be defined as a process of procuring, developing and maintaining competent resources in the organization so that goals of an organization are achieved in an effective and efficient manner. In other words HRM is an art of managing people at work in such a manner that they give best to the organization.

The Origins of HRM • Awareness regarding HRM was felt during the industrial revolution around 1850

in Western Europe and U.S.A.• HRM originated and can be classified as:• Trade Union Movement Era• Social Responsibility Era• Scientific Management Era• Human Relations Era• Behavioural Science Era• Systems Approach Era• Contingency Approach Era

The Origins of HRM Frederick W. Taylor, the father of scientific

management, summarized scientific management as: Science Harmony Cooperation Maximum output

Industrial psychology, initiated in 1913, focused on: The worker Individual differences The maximum well being of the worker

The Origins of HRM

Personnel departments were created to deal with: Drastic changes in technology Organizational growth The rise of unions Government intervention

concerning working people Around the 1920s, more organizations

noticed and acted on employee-management conflict

The Origins of HRM

The Hawthorne studies (1924 to 1933): Were to determine the effects of

illumination on workers and their output Rather, it pointed out the importance of

social interaction on output and satisfaction Until the 1960s, the personnel function was concerned

only with blue-collar employees File clerk, house-keeper, social worker, firefighter, and

union trouble defuser

Aims of HRM• HRM objectives are four fold• Societal Objectives: To be ethically and socially responsible to the needs and

challenges of the society while minimizing the negative impact of such demands upon the organization. Example - Legal compliance, union management, benefits

• Organizational Objectives: To recognize the role of HRM in bringing about organizational objectives. Example-HRP, Employee relation, Selection, TRD, PA etc

• Functional Objectives: To maintain the department’s contribution at a level appropriate to the organization’s needs. Ex-Recruitment, selection, PA etc

• Personal Objectives: To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual’s contribution to the organization. Ex-TRD, Placement, compensation, assessment

Aims of HRM Increasing employees’ job satisfaction and self-

actualization Employees must feel that the job is right for their

abilities and that they are being treated equitably Satisfied employees are automatically more productive

However, unsatisfied employees tend to be absent and quit more often and produce lower-quality work

Both satisfied and dissatisfied employees can perform equally in quantitative terms

Aims of HRM Quality of work life (QWL) is a general concept that

refers to several aspects of the job, including: Management and supervisory style Freedom and autonomy to make decisions on the job Satisfactory physical surroundings Job safety Satisfactory working hours Meaningful tasks

The job and work environment should be structured to meet as many workers’ needs as possible

Aims of HRM

Communicating HRM policies to all employees: HRM policies, programs, and procedures must be

communicated fully and effectively They must be represented to outsiders Top-level managers must understand what HRM can

offer

Aims of HRM

Maintaining ethical policies and socially responsible behavior: HRM managers must show by example that HRM

activities are fair, truthful, and honorable People must not be discriminated against Their basic rights must be protected

These principles should apply to all activities in the HRM area

Aims of HRM

Managing increased urgency and faster cycle times: Firms are placing a growing emphasis on:

Increasing customer serviceDeveloping new products and servicesTraining and educating technicians, managers,

and decision makers Shorter cycle times mean less time to:

Train, educate, and assign managers Recruit and select talented people Improve the firm’s image

Learning provides a framework for decreasing cycle time

• Forces

FIRMOrganization

Structure HRM

Mission andStrategy

Economic Forces

Political Forces

Cultural Forces

The Driving Forces for HRM

The Driving Forces for HRM• HRM has been driven by practitioners - people involved in practical

people management - and then attracted wider attention; or if it is a creation of academics and consultants

• The practitioners involved in the introduction of HRM are often line or general managers rather than personnel managers. Clearly, there are many 'stakeholders' in HRM:

• Managerialists (...)• Senior managers (...)• Academics (...)• The personnel profession

The Driving Forces for HRM• Speed of Expansionfast-developing economies put pressure on the human resource system and staff to plan, prepare and execute HR activities including preparing recruitment and selection strategies, sourcing talent and setting up local and companywide organizational structures.Changing Perception of Human Resourcesdesire for consistency in processes and activities like hiring, talent levels, employee training, compensation and motivation across boundaries. The varying employment laws around the world present challenges, but the goal is to achieve as much consistency as possible.

The Driving Forces for HRM• Culture and CommunicationClosely related factors of culture and communication are driving forces. Global companies typically want to respect and even take advantage of diverse cultures in their global locations. However, they also want to develop a consistent company culture by focusing on at least a few shared values. Communication using virtual technology causes many companies to structure around global functional teams. Accounting staff might collaborate across all global offices, for instance. To operate this way, virtual team training and diversity training are often necessary.

Issues of HRM

•The corporations of tomorrow•Information age•Diversity•Social Responsibility

Issues of HRM• CORPORATIONS OF TOMORROW:Future is a two fold effect: Generation of employment Industrial restructuring

• A majority of people will be connected to the IT infrastructure.• A learning culture will be festered by the technologies that serve,

entertain and help people to do the work.

Issues of HRM• INFORMATION AGE

• Information has heralded a new way of doing business.

• It has the power to change the well-trenched business paradigms to link and connect people and enable the exchange of products, services and capital.

Issues of HRM• SOCIAL RESPONSIBILITY

1. Acquisition of technology2. Adaptation of technology3. Utilization of technology4. Improvement and development of

technology

Issues of HRM

• Open communication with employees• Internal assessment : To communicate problems and issues with

management team.• External assessment : Personal relationship with other organizational

members and employees.• Projections : Economic development, demographic & tends of

biological & physical resources are also helpful to managers.• Improved training & development programs• Motivating through compensation & benefit practices.