Human Resource Management

THE MOST VALUABLE ASSETS OF A 20TH-CENTURY COMPANY WERE ITS PRODUCTION EQUIPMENT. THE MOST VALUABLE ASSET OF A 21ST-CENTURY INSTITUTION, WHETHER BUSINESS OR NON-BUSINESS, WILL BE ITS KNOWLEDGE WORKERS AND THEIR PRODUCTIVITY." (DRUCKER 1999, P135)

Why do people make the difference?

People drive the organizational system. People are essential in realizing high performance

aspirations.
Organizations that manage people well , also succeed

economically.
People are key to organizational success or failure. Investing in people produces future returns. Hiring and retaining talented people are essential for

competitiveness in the 21st century.

Why do people make the difference?

Building high performance work environments depends on

having people with the following qualities:

Work ethic Ambition and energy Motivation Outlook Curiosity Judgement and maturity.

Knowledge Creativity Sincerity Collaborativeness Integrity

A Definition of Human Resource Management

Human Resource Management (HRM)

Human Resources
The term human resources implies the total

knowledge , skills , creative abilities, talents and aptitude of an organisations workforce, as well as the value , attitude and beliefs of the individuals involved.

14

Copyright Houghton Mifflin Company. All rights reserved.

Human Resource Management

HRM is the comprehensive set of managerial activities and

tasks concerned with developing and maintaining a qualified workforce (human resources) in ways that contribute to organizational effectiveness.
HRM is that part of management process which develops

and manages the human element of the enterprise considering their resourcefulness in terms of total knowledge, skills, creative abilities, talents, aptitudes and potentialities for effectively contributing to the organizational objectives.

Definitions
According to Dessler, Human resource management is the

process of acquiring, training, appraising, and compensating employees, and attending to their labour relations, health, safety and fairness concerns.
According to Flippo, Human resource 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, organizational, and social objectives are accomplished.

Characteristics of HRM

Comprehensive Function People-oriented Action-oriented Individual-oriented Development-oriented Pervasive Function Continuous Function Future- oriented Challenging Function Inter-disciplinary Staff Function Nervous System

Importance of HRM
At the enterprise level

At the individual level

At the society level At the national level

HRM Functions
Managerial Functions Planning Procurement Job Analysis Organizing HR Planning Recruitment Selection Controlling Placement Induction Internal Mobility Separation Developme nt Training Executive Development Career Planning

HRM
Operative Functions
Compensati on Job Design Work Scheduling Job Evaluation Performance & Potential Appraisal Compensation Administratio n Incentives Benefits & Services Maintenan ce Health Integratio n Motivation Discipline Safety Teams & Team Work Collective Bargaining Emerging Issue Personnel Records HR Audit

Directing

HR Accounting
HRIS

Succession Planning
Human Resource Dev. Strategies

Welfare

Participatio n
Empowerm ent Trade Unions Grievances Industrial Relations

Job Stress
Counseling Mentoring Internation al HRM

Social Security

History of HRM

The Industrial Revolution Scientific Management Trade Unionism

Human Relations Movement

Human Resource Approach

Evolution of the concept of HRM

The Commodity concept

The Factor of Production concept

The Goodwill concept The Paternalistic concept

The Humanitarian concept

The Human resource concept The Emerging concept

Evolution of HRM
Period
1920 - 30 1940 - 60

Emphasis
Welfare Management Paternalistic Practices Industrial Relations

Status
Clerical Administrative

Role
Welfare

administrator
Appraiser Mediator Legal

Advisor agent

1970 - 80 1990onwards

Emphasis on human values, aspiration, dignity, usefulness. Incremental productivity gains through human assets

Developmental
Proactive, Growth-oriented

Change Trainer

Counsellor Mentor

HRM & PM
Personnel Management

HRM
Proactive Strategic Role Service Focus Teamwork People as assets

Administrative Role Reactive Production Focus Individuals praise or Rewards People as expenses