Uploaded by Shilpa Kundle

HRM 1-1

• Closed Akurdi plant and move to
Ramalinga Reddy
• Develop an HR Services Model (HRFO)
• For buss who cant afford HR dept
• Potential job hopper
• Suggesstion Scheme- 5,000 improvemnets per
British Airways
• Cut costs by 4.5 million
Narmada Fertilizers
• Savings of 65 lac pa
• Garment Units
Tata Electric Company
• Contract Workers for 17 and 19 years
• Most significant resource
• HR are heterogeneous
–Unique personality
–Different needs, attitudes and values
• HR are dynamic and behave
differently- same situation, different
• Effective utilization of all other
resources depends on quality of HR
Introduction to HRM
HRM has become significant due to
• Increase in complexity of org
• Rapid technological developments like
automation, comp
• Rise of professional and
knowledgeable workers
• Rapidly changing jobs and skills
• Social Significance- enhance dignity of
• National Significance- The effective
exploitation and utilization of a
nation’s natural, physical and financial
resources requires and efficient and
committed manpower
Human Resource Management is Defined as
the art of procuring, developing and
maintaining competent workforce to achieve
goals of an organisation in an effective and
efficient manner.
• it is the process of managing people in
organizations in a structured and thorough
HR Department
Nature of HRM
• Comprehensive Function:
– Concerned with managing people of all
types and at all levels
• Pervasive function :
– Spread through out the organization.
• Action oriented :
– Focuses on action rather than procedures
• Individually oriented :
– Pays attention towards individual
• People oriented:
– HRM is all about people at work. It tries to
co- ordinate the individual as well as group
activities towards attainment of
organizational goal.
• Future oriented :
– Provides competent and well motivated
• Development oriented :
– it focuses on employee development in the
organization as it motivates the employees to
perform better
• Continuous Function :
– Not one shot function
– Management of HR is never ending exercise
• Auxiliary services:
– apart from performing HR functions HRM
also plays role of special advisor in helping
other department in accomplishment of
their activities.
Challenging Function:
–Due to dynamic nature of people
–People cannot be treated like
• Staff Function
–Advisory in nature
Functions of HRM
• Managerial Functions: Planning,
Organizing, Directing , Controlling
• Operative Functions: Procurement
functions, Development functions,
Motivation & compensation,
Maintenance, Integration etc.
• Planning : Planning regarding recruitment,
selection and training of employees.
• Organizing : Organizing includes identification
and grouping of work activities
• Staffing - People could be the dynamic
elements of management so without proper
sort of people things will remain immaterial.
• Directing : it involves supervising and
guiding the personnel.
• Coordinating - Concerned with the
unifying action of a group of people
• Controlling :
– it comprises of measuring the
employees performance
–providing them feedback on their
Procurement function
• Job Analysis - Job analysis identify the nature of job
and what type of people required to perform these
job effectively.
• Recruitment - Recruitment is the process of
identifying prospective employees, stimulating,
encouraging them to apply for a particular job or jobs
in an organization.
• Selection - Selection is the process of examining the
applicants with regard to their suitability for the
given job and choosing the best from the suitable
• Human Resource Planning - Human resource
planning is the process of estimating the
present and future manpower requirements
of the organization.
• Placement -The selected candidates are
assigned to a specific job known as placement.
• Orientation/Induction - Orientation is the
process of introducing new employees to an
Development function
• Performance Appraisal - Performance Appraisal is a
systematic evaluation of present potential
capabilities of personnel.
• Training - Training is an organized procedure for
improving the knowledge and skill of the employees
for doing a particular job or for a definite purpose.
• Career planning and development - Career planning
and development involve the planning for the career
of employees and implementing these plans
Compensation functions
• Provides appropriate remuneration to
employees for their contribution to achieve
organizational objectives. It consists of the
following activities• Job evaluation - Job evaluation is a process of
determining the relative worth with of a job.
• Salary Administration - Salary Administration
is to determine the salary structure for various
jobs in the organization
• Maintenance function:
• Maintenance function is concerned with
promoting the physical and mental health of
employees by providing various facility and
social security.
• All the functions of Human Resource
Management are performed in conjunction
with each other.
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