(Perspective, Rules, Scope, Goals and Significance)

What is HRM?

• process of hiring and developing employees so that they become more valuable to the organization.

• process an organization undergoes to manage people in order to achieve its goals.

Perspectives

Which is

which?

1. Normative Perspectve• Hard HRM

-traditional approach-stresses the linkage of functional areas to corporate strategy

-views workforce as passive resources of the org. and can be dispose at will

• Soft HRM-modern approach-considers human capital as “asset” rather than “resources”

2. Critical Perspective

•Reaction against the normative perception•Claim to follow soft HRM policies when they actually enforces hard HRM•Interest of the organization always take priority over the individual employee.

3. Behavioral Perspective• Considers employees behavior as the

mediator between strategy and organizational performance.

• Control employees attitudes and behaviors to suit the various strategies adopted to attain the desired performance.

• Bases itself on the role behavior of employees instead of their skills, knowledge, and abilities.

4. Systems Perspective• Describes an organization in terms of input,

throughput, and output

INPUT – organized activities of employees

THROUGHPUT – transformation of energies within the system

OUTPUT – resulting product or service

5. Agency or Transaction Cost Perspective• Holds the view that the strong natural

inclination of people working in groups is to reduce their performance and rely on the efforts of others in the group.

• 2 Major Approaches to reduce conflicts1.) Monitor employee behavior, establish effective control system, and improve productivity2.) Provide employees with incentives

SCOPE

1. HRM in Personnel Management • includes human resources planning, training and

development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity

• Objective is to ascertain individual growth, development and effectiveness

• Also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, travelling policies and procedures etc.

2. HRM in Employee Welfare• Deals with working conditions and amenities at

workplace• Includes array of responsibilities and services

(safety services, health services, welfare funds, social security and medical services)

• Also relates to supervision, employee counseling, establishing harmonious relationships, education and training

3. HRM in Industrial Relations• Careful interactions with labor or employee

unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization

• Art and science of understanding employment relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes

GOALS

• Fundamental goals involve placing appropriate employees in open positions, promoting impartial and legal treatment of all workers and ensuing the company complies with applicable labor laws.

Objectives1. Recruiting and Hiring – develop company’s brand and attract quality employees2. Employee Benefits – Insurance and retirement

plan to retain and attract quality employees3. Recognition and Reward- Recognition and reward programs to retain high performers and to motivate employees4. Training and Development – Employees who

need more knowledge or skills to capably perform their duties or grow with the

company can benefit from professional development.

Objectives5. Legal Compliance – Interpreting federal, state

and local employment laws and ensuring the company adhere them

6. Goal Setting Standards – Establishing goal setting standards allows HR to monitor whether employees are meeting company standards7. Metrics and Reports – Uses HR metrics and

reports to measure the effectiveness of the department

SIGNIFICANCE

• Objective – helps a company to achieve its objective from time to time by creating a positive attitude among workers.

• Facilitates professional growth– Due to proper HR policies employees are trained well and this makes them ready for future promotions

• Better relations between union and management– Healthy HRM practices can help the organization to maintain co-ordinal relationships with the unions.

• .

SIGNIFICANCE

• Helps and individual to work in a team/group– Effective HR practices teach individuals team work and adjustment.

• Identifies person for the future– Since employees are constantly trained, they are ready to meet the job requirements.

• Allocating the jobs to the right person– If proper recruitment and selection methods are followed, the company will be able to select the right people for the right job.

RULES

• Title VII of the Civil Rights Act of 1964 and Civil Rights Act of 1991– Made illegal the discrimination against employees or potential

recruits for reasons of race, color, religion, sex, and national origin

– Forces employees to follow-and often-document-fairness practices related to hiring, training, pay, benefits, and virtually all other activities and responsibilities of HRM.

Major Purposes of Manpower Management

Acquisition Development Maintenance Utilization

Job AnalysisRecruitment

SelectionPlacement

Training and Development,Performance

Appraisal, Coping with

Changing Technology

Wage and Salary

Administration, Benefit and

Services, Labor Management

Relation, Collective

Bargaining, Discipline

Complaints and Grievances

Human Resource

Planning and Career

Development

To get the right person for the

right job

To get the most from the

employee

To retain the best workforce

To instill loyalty among the employees

Overall Objectives

Increasing Productivity

Objective Objective Objective Objective