Concepts and perspectives in HRM

Prepared By:Amit shukla

1

What is Management

For the achievement of the business objective2

What is Human Resource?

• Total knowledge, skills, creative abilities, talents, and aptitudes of an organization’s workforce, as well as the values, attitudes and approaches and beliefs of the individuals involved in the affairs of the organization.

• It is the sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the person employed in an organisation.

3

Various terms used in this context• Personnel• People at work• Manpower• Staff • Employees• Human assets • Human capital

4

Elements of Human Capital• Human capital can be classified into following three

categories:-1. Intellectual Capital- Contains both the stock of knowledge ,

skills and expertise that all members of the organization collectively possess and that owned by the organization including patents, IT based knowledge, systems or specialized processes of work.

2. Social capital- structure, quality and flexibility of human relationship both inside and outside the company.

3. Emotional Capital- both individuals and companies need these. Individuals need self confidence courage and resilience to convert their knowledge and relationships into effective action.

5

Intellectual Capital Social concept Emotional concept

• Specialized Knowledge • Network of Relationships • Self Confidence

• Skills and expertise • Sociability • Ambition and Courage

• Cognitive Complexity • Trust-worthiness • Risk taking ability

• Learning capacity • Resilience

6

Defination

• Megginson has defined human resources as follows:“From the national point of view, human resources are knowledge, skills, creative abilities, talents and attitudes obtained in the population; whereas from the viewpoint of the individual enterprise they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employers”

7

• According to Flippo, “Personnel Management, or say, human resources management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end, that individual, Organisational and social objectives are accomplished”.

8

• According to Decenzo and Robbins, “HRM is concerned with the people dimension” in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization –government, business, education, health or social action”.

9

• HRM can be defined as a process of procuring, developing and maintaining competent resources in the organization so that goals of an organization are achieved in an effective and efficient manner. In other words HRM is an art of managing people at work in such a manner that they give best to the organisation.

10

HRM is all about

11

1-12

1

Human Resource

Management

Human Resource

Development

Com

pens

ation

Staffing

Employee and Labor

Relations

Safety and Health

Human Resource Management Functions

1-13

Staffing

• Job Analysis• Human Resource Planning• Recruitment

• Selection

1-14

Staffing (Cont.)

• Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives

• Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

1-15

Staffing (Cont.)

• Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time .

• Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization

1-16

Staffing (Cont.)

• Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization

1-17

Human Resource Development

• Training• Development• Career Planning

• Career Development• Organizational Development• Performance Management• Performance Appraisal

1-18

Human Resource Development (Cont.)

• Training - Designed to provide learners with knowledge and skills needed for their present jobs

• Development - Involves learning that goes beyond today's job; it has more long-term focus

• Career planning - Ongoing process whereby individual sets career goals and identifies means to achieve them

1-19

Human Resource Development (Cont.)

• Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed

• Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals

1-20

Human Resource Development (Cont.)

• Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization

• Performance appraisal - Formal system of review and evaluation of individual or team task performance

1-21

Compensation

Compensation - All rewards that individuals receive as a result of their employment

1-22

Compensation

• Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions.

• Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.

• Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

1-23

Safety and Health

Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

1-24

Safety and Health

• Safety - Involves protecting employees from injuries caused by work-related accidents

• Health - Refers to employees' freedom from illness and their general physical and mental well being

1-25

Employee and Labor Relations• Private-sector union membership has fallen from 39

percent in 1958 to 7.8 percent in 2005.• Business is required by law to recognize a union and

bargain with it in good faith if the firm’s employees want the union to represent them

• Human resource activity is often referred to as industrial relations

• Most firms today would rather have a union-free environment

1-26

Human Resource Research

• Human resource research is not separate function.

• It pervades all HR functional areas.