chap-1 concept of hrm
TRANSCRIPT
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CHAPTER-1
CONCEPT OF HUMAN RESOURCE
MANAGEMENT
BBS 2NDYEAR
PREPARED BY: BIBEK KHADGI
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CONCEPT OF HRM
Human resource management is an essential and vitalmanagement function which is focused on people dimensionof an organization
Humans are also crucial resources like land, capital and
technology in absence of which all other resources may beuseless
Human resources are vital for achieving organizationalobjectives and better managed human resources achievebetter results.
So, human resource management is the function of managingthe human energy and competencies i.e. their Knowledge,Skills, Attitudes and Potential.
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Concept Contd
According to DeCenzo and Robbins Human resource
management is comprised of the acquisition, development,
motivation and maintenance functions.
Thus, HRM (Human Resource Management) can be defined as
the set of policies and practices concerned with managing the
human energies and competencies for achieving the
organizational objectives through proper acquisition,
development, utilization and maintenance of peoples of an
organization.
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CHARACTRISTICS OR NATURE OF HRM
Human Focus
It regards peoples as the vital resources and is focusedtowards several aspects of peoples.
It emphasize on human energies and competencies and
develop them
Management Function
Human resource is need of all organization
So, all organization needs to manage its human resourcesor employees
It is the staffing function of the management
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Characteristics Contd..
Pervasive Function Human resource management should be emphasized by all
managers but not only the HR managers
In addition, HRM is needed for all employees i.e. from
higher level to lower level employees The HRM responsibilities cannot be delegated to single
person
Continuous Commitment It is not one time and one shot activity
HRM needs to be carried out till the organization exists
It is concerned with present as well as future
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Characteristics Contd Dynamic
HRM should change with time and business environment It should adapt to political, legal, socio-cultural, economic,
technological and global environment changes
System
HRM follows the acquisition, development, utilization andmaintenance
Such functions needs to be carried out systematically and
sequentially
Mutually Oriented HRM promotes the mutual interest of employers and
employees
Such interests may be objectives, influence, respect,
rewards and responsibilities etc.
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OBJECTIVES OF HRM Goal Achievement
Personal Goals: HRM helps employees to achieve their
personal goals like financial soundness, compensation,
development, career advancement etc. It ensures
integration of personal with organizational goals
HRM Goals: HRM ensures proper, timely and effective
acquisition, development, utilization and maintenance ofcapable employees
Organizational goals: HRM ensures better employees in
organization which helps achieve the organizational goals
such as profit, survival, growth, quality, industrial peaceetc.
Societal Goals: In way of achieving organizational
objectives, HRM focuses in welfare of the employees,
creates employment opportunities which is socialresponsibilities.
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Goal Harmony: Effective HRM ensures the clear
understanding of the mutual goals of an organization and
individual employee. Mutual understanding makes it easy to
work out on those goals which are readily achieved. So, HRM
creates goal harmony.
Structure Maintenance: While organization manages its
human resource, it defines the organization structure and
positions of the employees in various tasks and jobs.
Productivity Improvement: HRM focuses on developing the
employee competencies, motivating them and rewarding
them based on their performance. In addition, HRM oversees
the welfare, safety and quality of life of the employees. It
makes the employee competent, satisfied and committed that
helps in improving the productivity.
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Efficiency Promotion: Since HRM develops the competencies
and makes proper utilization of HR, it cuts the cost for the
organization. Cost cuts promotes efficiency in jobs. Reducethe wastes.
Change Management: Generally, employees have tendency to
resist the changes. To prepare them adopt the changes, HRMplays vital role. HRM provisions for training and employee
development which brings readiness to change in employees.
Quality of Work Life: HRM considers the employees as thevaluable resources. HRM emphasize on the welfare and
development of the employees. Employees become satisfied
and motivated. Their goals are achieved and quality of work
life is improved.
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Functions of HRM (Components)
HRM is not one time activity. It lasts till the organization existsright from the entry of the employees to exit. HRM intends toacquire competent employees, develop them, use themproperly in obtaining organizational goals and retaining themin organization.
The major functions or components of the HRM are asfollows:
Acquisition
Development
Utilization
Maintenance
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Acquisition: It is concerned with staffing the organization thatensures right number of right kind of employees at right timein right job. Followings are the important steps of acquisition
function: Human resource planning: Predetermines the future need
of human resource
Job Analysis: It is formal and in depth study of jobs, its
requirements and determines qualification and skills forvarious jobs.
Recruitment: Preparing the pool of qualified candidatesfrom which the final employees are to be selected.
Selection: It is the process of choosing the qualified and
right candidates among the recruits.
Socialization: Preparing the employees to understand thejob environment and the organizational culture.
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Development: HRM focuses on developing the competencies
of individual employees so that they can perform the
designated tasks better. Followings are the steps in
development function of human resource management:
Analyzing Developmental Needs: Identifying the future
needs of human resource and their growth potential.
Employees needs to be developed in order to delegate
higher responsibilities.
Employee Training: Training should focus on developing
the job oriented skills required to perform present tasks. It
can be on the job and off the job.
Management Development: It targets to enhance the
managerial capacities in higher level employees. Useful for
succession planning.
Career Development: Understanding the career goal of
employees and making a path to reach that career goal.
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Utilization: Like any other resources, the human resources
should also be utilized productively for better performance
and increased productivity. Human resources can be utilizedefficiently through:
Motivation: Motivated employees put their best efforts
while doing their jobs.
Performance Appraisal: Employee performance can beevaluated whether or not it meets the standard
performance. Performance appraisal helps in finding out
the actual performance which can be used to utilized the
employees in better way.
Compensation Management: Effective utilization involves
the lowest cost and fair compensation structure for
employees. Compensation packages includes money,
promotion, benefits and services.
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Human Resource Management System
Human resource management has system characteristics thatconsists of input-processing-output and feedback
components.
HRM operates within internal and external environment
HRM system provides framework for integrating the variouscomponents within the HRM system.
HRM system entails that Human Resource Management
should not be a haphazard and unstandardized procedure
rather it should follow the certain standard steps making a
integrated system.
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Human Resource Management System
Inputs of HRM System
Organizational plan, HR plan, competencies, human energy
and abilities, human resource inventory and information,
job analysis, labor market etc. works as the input for HRM
system. All of these inputs for HRM system makes the
organization able to execute various HRM functions
effectively.
Processing of HRM System
The inputs of HRM system are processed by the
organization in carrying out various functions of HRM.
Such functions are acquisition, development, utilization
and maintenance of the employees.
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Outputs of HRM System
The outputs of the HRM system are categorized into two
major forms. Goals achievement, Quality of work life,Productivity, Profits, Readiness for change etc. are
organization related outputs. In other hand, Commitment,
Competence, Congruence, Cost effectiveness are
employee related output.
Feedback of HRM System
Feedback system of HRM provides in formation whether
the outcome from the HRM system is actually meeting thestandard and desired goals are achieved. If not, it assess
the problems that exist in the inputs and processing of the
HRM system. It resembles the control system of HRM.
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HRM Outcomes
Quality of Work Life
Quality of work life is the relationship between theemployees and total job environment. It is employees
perception of physical and psychological well being at
work.
Quality of work life can be ensured through autonomy injobs, recognition, rewards, belongingness of the
organization etc. These factors encourages freedom,
decision making power, higher responsibilities and
reputation etc. so that quality of work life improves.
Quality of work life is represented by equity in
compensation, safe and healthy working environment,
development of human capacities, social relevance and
responsibilities and total life space.
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Productivity
It is the efficiency relationship between the input and
output or ratio of input to output.
Productivity increases due to various components like
technology, innovation, learning, motivation and
performance - reward linkage.
Technology makes the production efficient while
innovation develops new products. Likewise, motivation
keeps the employees willing to work better.
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Readiness to Change
Generally, employees have tendency to resists the change.
They resist change due to fear of unknown, job security,
habitual resistance, misunderstanding, poor
communication, lack of involvement in decision making,
vested interest and other social factors.
However, HRM ensures proper awareness, education and
communication of change, itsneed, its process and other
various aspects. In addition. Employees are involved indecision making.
Key roles are given to employees and negotiation are
carried out through labor unions and whole organization.
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Challenges of HRM or Contemporary HRM
Issues
HRM operates in dynamic i.e. ever changing environment.
The environmental factors like Political-legal, Economic, Socio-cultural, and Technological (PEST) affects the HRM and poses
various challenges.
So, organization need to review and restructure its HRMpractices based on such changes in environment failing which
may degrade the productivity of an organization.
Some of the contemporary issues or challenges of the HumanResource Management are as follows:
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Globalization: Business organization are crossing the border
of one country. Organization are present in different countries
in search of new market, cheaper raw materials, labors etc.
So, as the business are growing global, the HRM practices
needs to be innovative to face such challenges.
Complexity: Modern organizations are complex. They operate
in various product and service ranges. Such a complex
operation of business requires proper management ofcompetent and committed human resource which is challenge
for human resource managers.
Technological Change: Technology is changing rapidly due to
which employees are required to have skills on using the newtechnology. This poses HRM a challenge to avoid the skill
deficiencies.
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Workforce Diversity: The composition of workforce is
becoming very vague and diverse in terms of age, gender,
skills, culture and ethnicity and others. Managing such
numerous aspects of the human resources or employees ischallenging tasks.
Less Attached Employees: Employees tends to be freelancer
and work independently. So, they are less attached to their
jobs i.e. less loyal and committed to the organization. Itcreates higher turnover rates that increases the costs for the
organization.
New HRM Concerns: HR outsourcing has been increasing,
social responsibility and total quality management hasincrease. New concerns like reservations, equal employment
opportunity etc. brings difficulties in managing the Human
resources.
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