HRM: Functions &

Context

Human Resource Management (HRM)

HRM is the process of identification, development and utilization of suitable personnel in conjunction with strategic objectives of the organisation and within the parameters of socio-legal framework of the organisation for achieving its mission, objectives and goals successfully. HRM refers to attracting , developing and maintaining an effective workforce. (Ronald J.Ebert & Ricky.W.Griffin, 2006) HRM is the integration of all processes, programmes and systems in an organisation that ensure staff are acquired and used in an effective way. (Stephen .P.Robbins)

HRM involves all management decisions and practices that directly affect the people who work for the organisation. ( Robert Krietner)
HRM refers to managing the employment relationship. (Shaun Tyson)
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Difference between HRM & HRD

HRD is a process in which employees of an organisation are helped in continous and planned way to sharpen their capabilities required to perform various roles, developing capabilities for their own and organisational development purpose, develop an org. culture in which superior subordinate relationship, teamwork, collaboration among subunits are strong and contribute to professional wellbeing, motivation and pride of employees.

HRD plays an important role in establishing and maintaining a healthy and enduring work culture.

Difference between P.M & HR

1. Focus 2.Belief: People are motivated by 3.Orientation: Maintenance oriented 4.Responsibility 5.Philosophy : Reactive Function 6.Aim : Tries to improve the efficiency of ppl 7.Scope 8.Considers People 9.Structure

The Human Resource Management Functions

Human Resource Managemen 1 t

Safety and Health

Staffing
Job Analysis Human Resource Planning (HRP) Recruitment Selection

Human Resource Development

Training Development Career Planning &Development Organizational Development

Compensation and Benefits

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

Employee and Labor Relations

Business required by law to recognize union and bargain with it in good faith if firms employees want union representation.

Private-sector union membership has fallen from 39 percent in 1958 to 9 percent today.
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Safety and Health

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

Human resource research is not a separate function. It pervades all HR functional areas.

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Interrelationships of HRM Functions

All HRM functions are interrelated. Each function affects other areas.

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The Dynamic Human Resource Management Environment :The context of HRM

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Environment of Human Resource Management

Unions
Legal Considerations

EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT

Society
Technology

Marketing

Operations

The Economy

Human Resource Managemen 1 t Finance

Shareholders

Safety and Health

Other Functiona l Areas

Customers

Competition

Labor Force

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Four major roles

1. Strategic Partner 2. Employee Champion 3. Change Agent 4. Administrative expert

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New Role for HR Professionals

1.Realigning the expectations of managers and employees in the organisation 2.Will communicate the need for change and its impact on the organisation 3.Will put in place reward system that takes into account team effort not individual effort 4.Monitoring how well employees are coping with employment changes
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Labor Force
Pool of individuals external to firm from which organization obtains its workers

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Legal Considerations
Federal, state and local legislation Court decisions Presidential executive orders
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Society
Social responsibility Implied, enforced or felt obligation of managers to serve or protect interests of groups other than themselves Ethics Discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation

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Ethics and HR Management

Discipline dealing with what is:
good & bad right & wrong

moral duty & obligation

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Unions
Group of employees who have joined together for purpose of dealing collectively with their employer

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Shareholders
Owners of a corporation Because they have invested money in a firm, they may at times challenge programs considered by management to be beneficial to the organization
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Customers
Because sales critical to firms survival, management must ensure employment practices do not antagonize the customers they serve

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Competition
In order to succeed, grow and prosper, a firm must be able to maintain a supply of competent employees.

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Technology
As technology changes: Certain skills no longer required New skills needed Necessitates some retraining of current workforce

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The Economy
In general, when economy is booming, it is often more difficult to recruit qualified workers.

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The Human Resource Function in a Large Firm

President and CEO
Vice President, Marketing Vice President, Operations Vice President, Finance Vice President, Human Resources

Manager, Training and Development

Manager, Compensation and Benefits

Manager, Staffing

Manager, Safety and Health

Manager, Labor Relations

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