HRM CH 1

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HUMAN RESOURCE MANAGEMENT

Chapter-1 (HRM-AN OVERVIEW )


for MBA, III Semester

Instructor:
Isubalew Daba Ayana
(Msc, MBA, Ph.D. Candidate)
Great Land College,
Nekemte, Ethiopia
CONTENTS
Definition of HRM
Managerial Functions
Operative Functions
Objectives of HRM
Nature of HRM
Scope of HRM
Importance of HRM

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DEFINITION OF HRM
Personnel management /Human resource
Management is a process of planning,
organizing, directing and controlling of
procurement, development, compensation,
integration, maintenance and separation of
human resource to the end that individual,
organizational and social objectives are
accomplished

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MANAGERIAL FUNCTIONS

PODCO
• Planning,
• Organizing,
• Directing/Leading,
• Controlling

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OPERATIVE FUNCTIONS

PDCMIS
• Procurement,
• Development,
• Compensation,
• Maintenance,
• Integration
• Separation HRM Chapter one 5
HRM

• It is possible to divide the term into its subparts


and understand it in simply way.
• Human – We people, who have skills,
knowledge and abilities.
• Resource – The bundle of assets belongs to
organization at a particular point of time
• Management – coordination and control of
both human and non human resources to
achieve the goals and objectives of enterprise.
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Objectives of Human Resource
Management
• To help the organization reach its goals.
• To help the organization in effective utilization of available
man power.
• To provide organization with well trained employees.
• To Communicate HR Policies to all the employees
• To strengthen and appreciate the human assets continuously
by providing training and development programs.
• To develop and maintain a quality of work life
• To equip the employees with precision/accuracy/ and clarity
in transaction of business.
• To be Ethically and Socially Responsive to the needs of
Society HRM Chapter one 7
Nature of Human Resource Management
• HRM is individual oriented
• HRM is People Oriented
• It is pervasive/universal/ in nature as it is present in all enterprises.
• It is Integrative Mechanism
• HRM is action Oriented
• Its focus is on results rather than on rules.
• HRM is Development Oriented
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It is a multidisciplinary activity, utilizing knowledge and inputs
drawn from psychology, economics, etc.
• It is a Continuous Function
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Scope of Human Resource Management
• Personnel Aspect: This is concerned with manpower
planning, recruitment, selection, placement, transfer,
promotion, training and development, layoff and
retrenchment, remuneration, incentives, productivity etc.
• Welfare Aspect: It focuses on working conditions and
amenities such as canteens, crèches, rest and lunch rooms,
housing, transport, medical assistance, education, health
and safety, recreation facilities, etc.
• Industrial Relations Aspect: This aspect concentrates on
union-management relations, joint consultation, collective
bargaining, grievance and disciplinary
procedures, settlement of disputes, etc.
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Importance of Human Resource
Management
At Enterprise Level
• Good Human Resource Practices can help in attracting and
retaining the best people in an organization
• It helps in training the people for challenging roles,
developing the right attitude towards the company and job.
At the Individual level
• It promotes team work and team spirit among employees
• It offers excellent growth opportunities to the people who
have the potential to rise
• HRM allows people to work with diligence and
commitment
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Importance of Human Resource
Management
At the Society Level
• Employment opportunities multiply
• Scarce talents are put to be best use. Companies that pay
and treat people well always race ahead of others and
deliver excellent results.
At the National Level: effective use of human resources help
in exploitation of natural, physical and financial resources
in a better way. People with right skills and proper
attitudes and appropriate values help the nation to get
ahead and compete with the best in the world leading to
better standard of living and better employment.
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End of the chapter One
Thank you for your attention

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