TOPIC 1:
GENERAL INTRODUCTION TO
HUMAN RESOURCES MANAGEMENT
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NATURE AND SCOPE OF HUMAN RESOURCE MANAGEMENT
• Organizations are made up of people and
function through people. Without people
organizations can not exist. The resources of
men, money, materials and machinery are
collected, coordinated and utilized through
people.
• These resources by themselves cannot fulfill
the objectives of an organization. They need
to be united into a team.
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• It is through the combined efforts of people that
material and monetary resources are effectively
utilized for the attainment of common objectives
. Without united human efforts no organization
can achieve its objectives.
• All activities of an organization are initiated and
completed by people who make organizations.
• Therefore, people are the most significant
resource of any organization. This resource is
called human resource and it is the most
important factor of production.
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Introduction to HRM
• Human resources is a modern terminology
for what traditionally used to be known as
personnel management or personnel
administration.
• Human resources management is concerned
with the activities which are intended to
facilitate the effective utilization of people in
the performance of organization.
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Defining Human Resources Management
• Is a managerial philosophy, policies, procedures
and practices related to effective management of
people for the purposes of facilitating the
achievement of results in work organizations.
• Is a set of management activities intended to
influence the effective utilization of human
resources in the performance of work
organizations.
• Refers to systems and employment practices used
to attract, motivate, develop and retain a firm’s
employees.
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Defining Personnel Management
• Is a series of activities which enable working
people and their employing organizations to
agree about the objectives and nature of their
working relationship, while
ensuring that
agreements are fulfilled.
• It refers to a traditional way of managing people
in organizations and it involved largely three basic
functions
of
recruiting,
training
and
compensation. These were performed as clerical
functions without regard for their functional
interrelationships with other functions.
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HRM Vs Personnel Management
• HRM is a modern terminology for what
traditionally used to be known as personnel
management.
• Traditionally, functions of managing people in
work organizations used to be known as personnel
management.
• They were organized as simple clerical functions
subordinated to a department such as accounting
or office management. The functions where
performed clerically without regarding their
contributions towards organizational objectives.
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cont…
• Personnel management was not regarded as a
strategic management function.
• HRM encompasses many more functions of
managing people than personnel management.
• It encompasses core functions as follows: HRP,
HRR, HRT&D, Compensation, HRH&S, Labour
relations
• Non core functions as Career planning and
development,
Motivation,
Communication,
Disciplining, HR Research, Accounting and
Auditing.
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Cont…
• HRM is consistent with the systems idea, because
its functions are increasingly directed towards
providing greater support to the achievement of
the organization objectives.
• HRM is more complex than personnel, it requires
rich understanding of the field of organization
behavior, organizational and environmental
diagnosis.
• HRM is proactive, while personnel management is
reactive
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FEATURES OF HRM
• HRs of an organization are the product of their
biological inheritance and interactions with the
environment. These traits influence their
performance, attitudes and behavior.
• HRs are heterogeneous. They consist of a large
number of individuals each having a unique
personality, different needs, attitudes and values.
Therefore organizations ought to pay attention to
their differences to maximize each one’s potential.
• HRs are dynamic and behave differently. They
react to same situations differently. Therefore it is
difficult to predict human behavior.
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cont…
• HRs are the most important elements in
organizations. Effective utilization of all other
resources depends upon the quality of human
resources.
• HRs have the greatest potential to develop and
grow if the right climate is provided to them. An
organization can survive and grow if it has the
right people at the right time and at right jobs.
• HR include all the dynamic components of all
people at all levels in the organization whereas
personnel means the employees working in the
organization.
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FUNCTIONS OF HUMAN RESOURCES MANAGEMENT
Core functions
• Planning
• Recruiting
• Training and
development
• Performance appraisal
• Compensation
• Health and safety
• Labour relations
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Non-core functions
• Career planning
• Motivation
• Communication
• Disciplining
• Maintenance of quality of
working life
• HR Accounting
• HR auditing
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WHAT ARE THE GOALS OF HRM?
HR measures of effectiveness
Employee Outcomes
Organizational Outcomes
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Motivation
Performance
Satisfaction
Attraction
Retention
Attendance
Timeliness
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Cost Reduction
Growth
Profitability
Service and product
Quality
Customer satisfaction
Productivity
Flexibility
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TYPES OF HUMAN RESOURCES JOBS
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HR Systems analyst
Counseling officer
Job analyst
HR planning officer
Registry clerks
HR recruitment officer
Orientation and
placement officer
• Training & Career
Development officer
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• Compensation officer
• Employees welfare
officer
• Health and safety
inspector
• HR research officer
• HR audit officer
• HR manager/Director
• Legal officer
• Labour relations officer
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ROLE OF HUMAN RESOURCES DEPARTMENT
• This is a service department that assists
subordinates, managers and organization in all
matters related to the effective HR management so
that they can willingly make maximum
contributions performance processes.
• It does not have a line authority over other
departments; instead it has staff authority over
them in relations to HR programmes.
• In this capacity, it largely operates as a coordinator,
consultant and advisor to management, unions,
and employees on all HR management activities.
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• Line authority
Refers to the ability of the human resources
department to command or require other
departments to carry out instructions related to
the mainstream tasks of the organization.
• Staff authority
Refers to the ability of the human resources
department to advise the staff, not to direct,
other departments as to how best they may
implement the organization’s policies and
procedures of managing human resources.
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• Though advisory, the staff authority of HR
department is powerful. A line manager is in
principle not obligated to take the advice given to
him or her by the HR department.
• In rejecting the advice, the line manager stands to
carry full responsibility for the outcomes such as
employee relations problems and strikes.
• To avoid such consequences, line managers usually
readily accept the advice given to them by the HR
department.
• As a result HR department exercises considerable
influence on the decisions of the line managers and
is highly respected in modern and successful work
organizations.
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MAJOR CHALLENGES FACING HRM
• Developing and implementing a “strategic
approach" that adds value to the success of the
entire organization.
• Decentralization of HR responsibilities to line
managers and employees.
• Leveraging workforce diversity to support product
and
service
development
for
diverse
customer populations.
• Maintaining compliance with local, state, federal
and international laws and regulations.
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