Nature and Scope

of HRM

Introduction
Meaning & Definition of HRM
Scope of HRM
Differences between PM & HRM
The Nature of employment relationship
HRM-Functions & Objectives
Evolution of HRM in India
Why Study HRM?

Introduction

Challenges faced by organizations
Global competitiveness implications on HR
Work force diversity
Ethical issues
Advances in technology and communication
Sensitive approach to environment
Shift in employees need for meaningful work
What is HRM?
HRM is concerned with the peoples dimension
in the organization
Facilitating the competencies and retention of
skilled force
Developing management systems that
promote commitment
Developing practices that foster team work
Making employees feel valued and rewarded.
Definition

HRM refers to acquisition, retention, motivation and
maintenance of Human Resources in an organization.

HRM is the planning, organising, directing & controlling
of the procurement, development, compensation
integration, maintenance and separation of human
resources to the end that individual, organizational and
social objectives are accomplished.
Differences between PM &
HRM
Dimension Personnel Management Human Resources Management
1. Employment Contract Careful delineation of written
contracts
Aim to go beyond contract
2. Rules Importance of guiding clear rules Can do outlook, impatience with
rule
3. Behaviour referent Norms/customs/practices Values/mission
4. Managerial task Monitoring Nurturing
5. Management Role Transactional Transformational leadership
6. Communication Indirect Direct
7. Conflict handling Reach temporary truce Manage climate & culture
8. T&D Controlled access to courses Learning organization
9. Focus of attention for
interventions
Personnel procedures Wide ranging cultural, structural
& personnel strategies
10. Shared interests Interests of the org. are
uppermost
Mutuality of interests
Scope of HRM
Very Vast
Covers all major
activities in the
working life of a
worker
-from time an
individual enters
into an
organization until
he or she leaves
comes under the
purview of HRM

Prospects
of HRM
HRM
Nature of
HRM
Industrial
Relations
Employee
Maintenance
Employee
Hiring
Employee
&
Executive
Remuner
ation
Employee
Motivation
The Nature of the Employment
Relationship
Functions
Functions of HRM include:
Facilitating the retention of skilled and competent
employees
Building the competencies by facilitating continuous
learning and development
Developing practices that foster team work and
flexibility
Making the employees feel that they are valued and
rewarded for their contribution
Developing management practices that endanger high
commitment
Facilitating management of work force diversity and
availability of equal opportunities to all.
Functions of HR
MANAGERIAL
FUNCTIONS
Planning
Organising
Directing
Controlling
OPERATIVE
FUNCTIONS
Staffing
Development
Compensation
Motivation
Maintenance
Integration
Emerging Issues
Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility
DEVELOPMENT
Competency profiling, Training and
development, Performance &
potential management, Career
management, 360 degree feedback
COMPENSATION
& MOTIVATION
Job design, Work scheduling, Job
evaluation, Compensation
administration, Incentives and
benefits
Operative functions of HR (contd.)
MAINTENANCE
Health, Safety, Welfare,
Social security
INTEGRATION
Employment relations, Grievance,
Discipline, Trade unions,
Participation, Collective
bargaining
EMERGING
ISSUES
HRIS, HR audit, HR scorecard,
International HRM, Workforce
Diversity
HRM Practices
Strict and rigorous recruitment and
selection.
High level of training especially induction
training and on-the-job training.
Team working
Multi-skilling
Better management-worker
communication.

Use of quality circles and an emphasize
on right first time quality.
Single status symbols such as common
canteens and corporate uniforms.
Encouragement of employee
suggestions and innovations.
Objectives of HRM
Societal objectives
To be ethically & socially responsible to the needs of
the society while minimizing the negative impact of
such demands upon the organization
Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
Functional objectives
To maintain the departments contribution at a level
appropriate to the organizations needs
Personal objectives
To assist employees in achieving their personal
goals in a manner that their personal goals enhance
the individuals contribution to the organization

HRM and 3 Ps
People core strength of an organization
Any resource can be replaced but not HR
Processes evolve over a period of time
IT enabled environment facilitates engineering
effortlessly
Performance the pillars of performance are
people and IT
Organizational performance in terms of value
creation and return on investment
Evolution of HRM in India
Pre Industrial Era
(1400 A.D.-1700 A.D.)
Absence of any formal HRM
function
Cessation of feudalism
Shifts from agriculture to mixed
economy
Growth of towns and villages


Industrial Revolution and the
factory system (19th Century)
Industrial relations in UK late 18th century, USA
19th century, India second half of 20th century
Replacement of man by machine due to
industrialization
Factory system replaced the old cottage system
Emergence of factory new class of workers and
managers
Delegation of authority and assignment of
responsibilities


Three systems of HRM were developed recruitment of
workers, training of workers and control of workers but the
basic philosophy of managing the workers revolved around
master servant relationship
Trade Union Movement Era (Close to the
19
th
century)
Workers started to organize themselves based on their
common interests to form workers associations/trade unions
To safeguard themselves from long hours of work, poor
working conditions, employment of child labor, wages,
employee benefits etc.
They started using such weapons as strikes, slowdowns,
walkouts, boycotts etc. for the acceptance of their demands.

Social responsibility Era (Beg. Of 20
th

century)
Factory owners started adopting a more humanistic and
paternalistic approach towards workers.
o Scientific Management, welfare work
(1900-1920)
Scientific management improves inefficiencies through
reorganization of production and rationalization of work.
Scientific management principles relevant to management of
workers are as follows:
Job analysis, standardization, scientific selection and training
of workers, financial incentives, mental revolution.
Industrial psychology application of psychological principles
for improving working conditions

Human relation/ Industrial Psychology
Era (1930-1950)
Early focus of HRM was on increasing human relations
The emphasize was on increasing productivity through
discovering the needs of the workers
Under this approach the manager become responsible for
integrating employees into the work situation that would
motivate them
The concept of social system, informal organization, group
influence and non-logical behavior entered the field of
personnel
Behavioral Science Era (1950-60)
Behavioral scientists have been goal and efficiency oriented
and consider understanding of human behavior to be a major
means to the ends.
Major contributions of the behavioral scientists are in the
areas of motivation, leadership, communication, organizational
change and development, group dynamics.

Systems and contingency approach Era
(1960 onwards)
Management action is contingent on action outside the system
or subsystem as the case may be.
Organizational action should be based on the behavior of
action outside the system so that the organization in
integrated with the environment.
Because of a specific organization-environment relationship,
no action can be universal. It varies from situation to situation.
Human resource management era
(1980 onwards)
Industrial relation department came into existence
Personnel management to human resource management
Why Study HRM?
Taking a look at people is a rewarding
experience
People possess skills, abilities and aptitudes
that offer competitive advantage to any firm
No computer can substitute human brain, no
machines can run without human intervention
& no organization can exist if it cannot serve
peoples needs.
HRM is a study about the people in the
organization-how they are hired, trained,
compensated, motivated & maintained.


THANK YOU