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CHAPTER 1

CHAPTER 1. UNDERSTANDING THE NATURE AND SCOPE OF HRM. Lecture Overview. Organization of HR Department HR Policy Secrets of Best Employers Human Capital Management Jobs and Career in HRM. HUMAN RESOURCE MANAGEMENT (HRM). HRM defined as

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CHAPTER 1

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  1. CHAPTER 1 UNDERSTANDING THE NATURE AND SCOPE OF HRM

  2. Lecture Overview Organization of HR Department HR Policy Secrets of Best Employers Human Capital Management Jobs and Career in HRM

  3. HUMAN RESOURCE MANAGEMENT (HRM) HRM defined as “HRM is management function concerned with hiring , motivating and maintaining people in an organization. It focuses on people in organization” (Aswathappa, 2008, p.5)

  4. HRM: Peoples Dimensions In Organizations • HRM: the application of management functions and principles related to employees • HRM functions applicable every where (not for profit and profit driven organizations) • Employees decisions are integrated • Employee decision brings effectiveness/efficiency in organization • HRM includes all major activities in professional life of a worker • All activities from employee entry to managing performance and training until he or she leaves

  5. Organization Of HR Department Two issues • HR department placement in overall setup • Composition of HR department Structure of HR • Structure of organization depend on whether organization is small or large • In small organization there is no need to have separate department to deals with activities relating to people • Many small organizations even do not have personnel managers • Outsourcing to firms specializing in managing accounts, pensions, funds and health & care

  6. Organization Of HR Department • Earlier, in personnel department employee with little knowledge and competencies were placed • The responsibility was to arrange tours, picnics, and retirement/farewell parties • Now focus has changed, HR department has key place in overall organizations • Contrary to small-sized company, In large scale organization there is big department heading by Manager/Director

  7. Organization Of HR Department • HR in Small Scale Unit Owner Office Manager Accounts Manager Marketing Managers Production Manager Personnel Assistant Source: Aswathappa, 2008, p.10

  8. Organization Of HR Department • HRM in large scale organization Chairman Director HRM Director R & D Director Finance Director Production Deputy Director Recruitment Deputy Director Training Deputy Director Promotions Source: Aswathappa, 2008, p.11

  9. Director HRM Manager Personnel Manager HRD Manager IR Manager Administration HR Planning Hiring Complaints Compensation PR Canteen Welfare Transport Legal Composition Of HR and Personnel Department Director HRM Source: Aswathappa, 2008, p.12

  10. Outsourcing HR Activities Outsourcing or Subcontracting: Transfer activities to specialist organizations Reasons • Restructuring • Downsizing • Growth in business • Decline in business Benefits • Cost efficiency • Access to expertise

  11. HR POLICIES AND PRACTICES • A policy is plan of action • HR policies need to ensure consistency and uniformity in treating people (guideline to course of action) • It motivates employees and build loyalty • Benchmark to evaluate performance

  12. HR POLICY DOCUMENT

  13. HR POLICY DOCUMENT

  14. Task • Browse websites of different organizations and analyze their HR policy documents. Review critically differences and similarities in these policy manuals

  15. SECRETES OF BEST EMPLOYERS • Effected and committed leadership • Management of talent • Spotting and attracting talent • Setting high goals • Coaching and training • Effective appraisal and reward system • Building skills for future • Building growth into every job

  16. HUMAN CAPITAL MANAGEMENT(HCM) HRM is replaced by HCM • HRM is job of one department where as HCM responsibility of every employee • HCM attempts to measures cause and effect relationship between different programs and policies • Identify and develop future opportunities for employees (matching expectations with skills) • Continuously acquiring new skills • Still challenges ahead

  17. JOBS AND CAREER IN HRM • Generally three positions of HR • HR Specialist • HR Manager • HR Executive

  18. JOBS AND CAREER IN HRM • HR Specialist • Entry level position • HR specialist included in roles like interviewer , compensation analyst, and trainer • HR specialist provide HR services • Specialist does every thing for example orientation program, interview applicant, negotiation for contract and wage structure

  19. JOBS AND CAREER IN HRM • HR Manager • HR manager administrate and coordinate activities, programs, and policies • Top ranking person in HR department • Expected to have knowledge of all areas of HRM • Advise and oversee HR line managers (to make sure implementation of HR policies) • Translate organizational strategy into HR policies

  20. JOBS AND CAREER IN HRM • HR Executive • Top level HR executive (Vice President/DG) • Responsibilities • To link HR corporate strategy with HRM • Considering HR limitations/opportunities • Establishing HR Policies

  21. Summary Organization of HR Department HR Policy Secrets of Best Employers Human Capital Management Jobs and Career in HRM

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