●

NATURE AND SCOPE

Human Resource Management is also a
function of management, concerned with
hiring, motivating and maintaining
people in an organisation.
It focuses on people in the organisation
 HRM Meaning and Definition
Organisations does not only consist of building,
machines or inventories. It is people they manage
and staff the organisation
 HRM applies management principles in procuring,
developing, maintaining people in the organisation.
 Aims at integrated decision making and decisions on
different aspects of employees are consistent with
other HR decisions
 HR Decisions must influence effectiveness of the
organisation leading to better service to customer
and high quality product and services at reasonable
price.
 It is not confined to business establishment only,
HRM is applicable also to the non business
organisation, like government department,
education, health care etc
What is HRM?
•HRM is concerned with the people’s dimension
in the organization
•Facilitating the competencies and retention of
skilled force
• Developing management systems that
promote commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.
Definition
HRM refers to acquisition, retention, motivation and
maintenance of Human Resources in an organization.

HRM is the planning, organising, directing & controlling

of the procurement, development, compensation
integration, maintenance and separation of human
resources to the end that individual, organizational and
social objectives are accomplished.
 Definition:

Human Resource Management is a

series of integrated decisions that
form the employment relationship;
their quality contributes to the
ability of the organisations and the
employees to achieve their
objectives.
- Milkovich and Boudreau
The Nature of the Employment
Relationship
 Introduction
Challenges faced by organizations and Environment of HRM
 Global competitiveness
 Sustainability
 Turbulent Environment (VUCA world)
 Work force diversity-new generation
 “Gig” Economy
 Impact of Social Media
 Advances in technology and communication, Digitisation
of Business and HR- HR in the Age of Disruption
 Ethical issues
 Talent Management and Retention
 Business Analytics- HR Analytics
 Employee Wellness
 Scope of HRM
Nature of
HRM

Prospects ● Very Vast

of HRM
Employee ● Covers all major
Hiring
activities in the
Industrial
working life of a
Relations Talent worker
HRM Managem
ent -from the time an
individual enters
Employee
into an
Maintenance
Employee
& Executive organization until
Remunerati
on he or she leaves
Employee
Motivation comes under the
purview of HRM
12/09/20
 Differences between PM & HRM
Dimension Personnel Management Human Resources Management

1. Employment Contract Careful delineation of written Aim to go beyond contract

contracts
2.Rules Importance of guiding clear rules Can do outlook, impatience with
rule
3. Behaviour referent Norms/customs/practices Values/mission
4. Managerial task Monitoring Nurturing
5. Management Role Transactional Transformational leadership

6.Communication Indirect Direct

7. Conflict handling Reach temporary truce Manage climate & culture
8. T&D Controlled access to courses Learning organization

9.Focus of attention for Personnel procedures Wide ranging cultural, structural

interventions & personnel strategies

10.Shared interests Interests of the org. are Mutuality of interests

uppermost
 Functions
Functions of HRM include:
• Facilitating the retention of skilled and competent
employees
• Building the competencies by facilitating continuous
learning and development
• Developing practices that foster team work and
flexibility
• Making the employees feel that they are valued and
rewarded for their contribution
• Developing management practices that engender high

commitment
• Facilitating management of work force diversity and
availability of equal opportunities to all.
Prof.Sujeesha Rao
 Functions of HR
MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
Staffing
Planning
Development
Organising Compensation
Directing Talent Management
Controlling Motivation
Maintenance
Integration
Industrial Relations
Emerging Issues
Compliance with
Labour Laws
 Operative functions of HR

STAFFING Job analysis, HRP, Recruitment,

Selection, Placement, Induction,
Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

Job design, Work scheduling, Job

COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
Prof.Sujeesha Rao
Operative functions of HR (contOd.)

Health, Safety, Welfare,

MAINTENANCE Social security

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation, Collective
bargaining

EMERGING HRIS, HR audit, HR scorecard,

International HRM, Workforce
ISSUES
Diversity,Digitisation, HR
Analytics, Talent management
 Objectives of HRM
● Societal objectives
To be ethically & socially responsible to the needs of the
society while minimizing the negative impact of such
demands upon the organization
● Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
● Functional objectives
To maintain the department’s contribution at a level
appropriate to the organization’s needs
● Personal objectives
To assist employees in achieving their personal goals in a
manner that their personal goals enhance the individual’s
contribution to the organization
HRM and 3 P’s
• People – core strength of an organization
Any resource can be replaced but not HR
• Processes – evolve over a period of time
IT enabled environment facilitates engineering
effortlessly
• Performance – the pillars of performance are
people and IT
Organizational performance in terms of value
creation and return on investment
 Evolution of HRM in India
 Welfare (1920s-1930s)

 Administration (1930s- 1940s)

 Employee relations (1940-1960s)

 Functional expertise (1970s-1980s)

 Business partner / player

(1990s)
 Talent Management/ Technology Enabled ( 2010-),

 Focus on Quality of Work, Work Life Balance

 Why Study HRM?
● Taking a look at people as the most valuable
resources is a rewarding experience
● People possess skills, abilities and aptitudes that
offer competitive advantage to any firm
● No computer can substitute human brain, no
machines can run without human intervention & no
organization can exist if it cannot serve people’s
needs.
● HRM is a study about the people in the organization-
how they are hired, trained, compensated, motivated
& maintained.
● All managers including Line Managers also perform
HR functions