HR-Session 1 Overview of HRM
- 2. Objectives • After completing this session, you will be able to: – Define Human Resource Management – Examine the nature of HRM in organisations – Describe the scope and importance of Human Resource Management – Explain important terminologies
- 3. Topics • Following are the topics covered in this session: – Understanding HRM and its nature – Scope and importance of HRM in organisations – Important terminologies to know – Summary
- 4. Understanding HRM and its Nature In this module, we will define HR and discuss how it is important in an organisation..
- 5. Understanding HRM and its Nature • Human Resource Management (HRM) is the ever dynamic field in the management of businesses and organisations, today. • HRM is exciting and challenging and deeply satisfying if handled well. • A career in HRM is a rewarding experience. • A HR professional deals directly with people and for people.
- 6. Introduction (Contd.) • HR is a challenging profession as it deals with people of diverse nature. • Different people are different due to various reasons such as: – Economic – Cultural – Political – Gender – Age • All employees of an organisation need to be managed towards achieving a common purpose. • The people are the single most important resource in any company. • Even though organisations need resources like machines and computers, it is still the people who will be using them.
- 7. Human Beings as Resources • A resource is any article or thing of a limited availability that helps to produce goods that have economic value. • Human beings are considered as resources as they have the ability to change raw materials into valuable resources that have economic value. • This means human efforts can create or build something of value. • Human resources are those skills, energies, talents, abilities and knowledge that are used for the production of goods or services.
- 8. Definition of Human Resource Management • If an organisation has to use the skills and talents of all the people employed, it has to manage and co- ordinate them in a proper way. • Hiring and maintaining employees is the primary function of an organisation. • HRM can be defined as the management function of recruitment, selection, training and development of the people in an organisation. • The Human Resources Management role helps an organisation to reach its goals by: – Hiring the best talents – Overseeing their training and development – Motivating – Evaluating performance – Providing suitable compensation
- 9. Nature of HRM • HR supports the management in all its activities. • Managing human resources means helping the managers of a company to • Recruit and select the right persons • Train and develop employees • Keep the employees motivated and satisfied • HRM is concerned with people’s dimensions in organisations.
- 10. Elements that Constitute the Nature of HRM • It’s the people – Companies are built of people and not of machines, walls and stocks. – It’s the people who staff and manage the companies. • It’s the application of management principles. – Principles regarding attracting, developing, maintaining and suitably rewarding people have to be applied in a scientific and appropriate manner.
- 11. Elements that Constitute the Nature of HRM • It’s making integrated decisions. – Decisions on the many different aspects of employment and employment life must be consistent with the other HR decisions. It should also be in line with the company objectives. • It’s influencing the effectiveness of the company – Decisions must influence the effectiveness of the company in terms of bettering the services to customers in the form of high quality products at reasonable cost. • So the nature of HRM consists of a set of functions and activities that are designed and applied to maximize the company’s objectives in the most effective manner. • At the same time it must ensure that their people too are benefited and satisfied. •
- 12. Scope and Importance of HRM In this topic, we will discuss the scope of HR function and its importance at the organisational level.
- 13. Scope and Importance of HRM • The scope of HR is vast and it is challenging. • HRM is concerned with the management of a company’s most valued assets - the people. • HRM is a threefold function. They are as follows: – 1. Bring talent into the organisation – 2. Develop the talent in the organisation – 3. Motivate talent as high performers
- 14. Scope (Contd.) • The HR needs to perform functions involving: – Employees – Management – Business goals – The functions can be categorized in the following way: – Recruitment and Selection – Induction – Training and Development – HR system and Procedures – Performance Management System
- 15. Scope (Contd.) • These functions can be expanded into these following activities: – HR Planning – Job Analysis and Design – Recruitments – Interviews and Selection – Induction / Orientation – Remuneration and Rewards – Performance Appraisal and Job Evaluation – Training and Development – Motivation – Policy Making – Administration and Implementation of Rules and Regulations – Organisational Development – Benchmarking with Best Practices
- 16. Scope (Contd.) • HRM has become strategic due to accelerating rate of transformation of the: – Economy – Corporate cultures – Legal environment – Perceptions of the workforce
- 17. Importance at Organisational Level • Firstly, it is continuous role. Right from the time a person joins the organisation till his/her leaving, the HR department is actively involved. • The purpose of HR is to sustain the goals of the organisation. • The HR is regularly monitoring and making periodic checks on the activities of the employees for regulation and problem solving. • The HR is referred to as the eyes and ears of the company • It is the HR who values the people and who works towards creating competitiveness well as compassion at the work place • The HR design policies and procedures for organisations and thus become partners in the business of the organisation.
- 18. Importance at Organisational Level • The HR benchmarks for best practices and infuses them within their own company • The HR continuously strives to optimise resources for mutual benefit • Lastly HR is the single point of contact for all employees in the organisation.
- 19. Important Terminologies to Know In this topic, we will look at some important terminologies related to HR.
- 20. What are the Different Terminologies? • Some of the frequently used terms in HR are: – Industrial Relations Management – Labour Relations Management – Personnel Management – Personnel Administration – Human Resource Development – Human Capital Management
- 21. Industrial Relations • After the industrial revolution, there was a growing need to hire huge numbers of employees to work at the factories. • With the number of workers increasing, issues regarding their rights subsequently emerged. • This lead to the formation of trade unions. • After the trade union movement, there was need to regulate the issues of the employees. • This gave birth to Industrial Relations Management.
- 22. Industrial Relations (Contd.) • Some functions of Industrial Relations Management are: – Man hours regulation – Making job duties, – Dealing(bargaining) with various job authorities, – Grievance handling – Non exploitative wages and salary administration
- 23. Personnel Management • With the processes and management getting more scientific because of researchers like Frederick Taylor and Abraham Maslow, Industrial relations made some major and evolutionary changes. • The thoughts that were raised on that research, led to the scope evolving into a more human outlook. • Now planning was the result of co operation between management and workers and every administrative policy or procedure laid down was done scientifically. • The function of looking into the employees’ betterment came to be called as Personnel Management. • This function is also called Personnel Administration
- 24. Human Resource Development • The term, Human Resource Management or HRM came into existence only in the 1970s. • This was due to a shift in professional values from concern for welfare to a focus on efficiency. • Another term that evolved subsequently was Human Resource Development. • HRD focuses on those activities that are only related to employee development.
- 25. Summary • In this module we have learnt; – Human Resource Management can be defined as the management function of recruitment, selection, training and development of the people in the organisation. – The four elements that constitute the nature of HRM – HRM is a threefold function. – Some HRM functions are: Human resource planning, job analysis and design, recruitments, interviews and selection, induction, remuneration, performance appraisals and job evaluation and training.
- 26. Congratulations! You have successfully completed the session ‘Overview of HRM.’