Introduction to Human Resource Management (HRM)

• The training is delivered by IIPSM
• Further information is available at www.iipsmonline.com

The Big Picture of HRM Sessions

• 1st session: Introduction to HRM
• 2nd session: Processes in HRM and Organizational Structure
• 3rd session: Staffing and Employee Welfare
• 4th session: Conflict Management, Employee Discipline, and HRM in relation to the Law
• 5th session: Employee Training and Development, Psychological Theories of Motivation, and HRM during Recession
• 6th session: Industrial Relations, Industrial Dispute, Grievance Handling, Retention and Succession, and Staff Exit

Concept & Definition of HRM

• People are the most important resource within an organization
• Humans refers to the skilled workers in an organization
• Resources refers to scarce inputs for production, things necessary to achieve objectives
• Human resources are valuable, rare, inimitable, and irreplaceable
• Management is the proper and maximal utilization of limited, skilled workforce

Two Schools of Thought in HRM

• Traditional approach: HRM, views HRM as the structured management of people, emphasizes command and control
• Modern approach: HRM, a collective relationship between both management and employees

History of HRM

• First Phase: craftsmen/artisans in England organized into guilds to improve work conditions
• Robert Owen tried to improve the working and living conditions of workers
• Second Phase: Fredrick Taylor developed scientific management to determine fair performance standards using scientific data
• An employee was viewed as an economic man motivated by financial incentives, leading to lost job pride
• Third Phase: the labor welfare movement was initiated, human element was recognized, and employment departments emerged
• Fourth Phase: reaction against the dehumanization of scientific management, advocates that workers should be seen as more than just production factors (with desires, wants, etc.)
• Fifth Phase (Modern Period [1950-Present]): continued refinement, with organizations adopting a Human Resources approach where organizational goals and employee needs are mutually compatible

Objectives of HRM

• Defining an org structure that drives productivity
• Developing effective coordination and communication
• Allocating time to finding and developing the right staff
• Embracing ethical development

Scope of HRM

• Includes all activities under the HRM umbrella
• Personnel Management: Manpower planning, job role design, hiring, training, development, induction, orientation, employee productivity, transfer, promotion, compensation, layoff, and retrenchment
• Employee Welfare: actions taken for the comfort and improvement of employees (above wages)
• Industrial Relations: working relationships between employees, employers, and the government; promotes industrial democracy to protect the interests of employees and management

Importance of HRM for Organizational Success

• Goals and objectives achievement.
• Designing recruitment and training programs.
• Appraisal and evaluation.
• Maintaining smooth relationships.
• Improving the work atmosphere.
• Enhancing teamwork.
• Dispute resolution.
• Public relations and mediation.
• Employee selection.
• Maintaining costs related to management
• Minimizing employment recruitment costs.
• Planning for actions in a new direction.
• Reducing employee workload
• Organizational structuring

Functions of HRM

• Managerial Functions:
  • Planning: Determining organizational goals and policies.
  • Organizing: Structuring and allocating jobs.
  • Staffing: Selecting, training, promoting, and retiring employees.
  • Directing/Leading: Activating group efforts to achieve goals.
  • Controlling: Comparing performance against standards and taking corrective action.
• Operative Functions:
  • Procurement: Getting the right people and the right quantity into the organization.
  • Development: Improving employee skills, knowledge and behaviours.
  • Compensation: Job evaluation, wage and salary administration, bonuses, incentives -Maintenance: Protecting and promoting employees while at work.