Module 1- Introduction to Human Resource Management

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    MODULE 1- INTRODUCTION TO

    HUMAN RESOURCE

    MANAGEMENT

    MBA 2ND TRIMESTERMs. Anubha

    Faculty HR

    ARIMT

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    DEFINITION

    The planning, organizing, directing and controlling of the

    procurement, development, compensation, integration,

    maintenance and reproduction of human resources to the end that

    individual, organizational and societal objectives are

    accomplished.

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    CHARACTERISTICS OF HUMAN

    RESOURCE MANAGEMENT

    Comprehensive function

    People oriented

    Action oriented

    Individual oriented

    Development oriented

    Continuous function

    Future oriented

    Challenging function

    Staff function

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    OBJECTIVES OF HUMAN RESOURCE

    MANAGEMENT

    To help the organization attain its goals by providing well trained

    and well motivated employees.

    To employ the skills and knowledge of employees efficiently and

    effectively

    To enhance job satisfaction and self actualization of employees byencouraging and assisting every employee to realize his/her full

    potential

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    To establish and maintain productive , self respecting and

    internally satisfying working relationships among all the members

    of the organization.

    To bring about maximum individual development of members of

    the organization. To bring about maximum individual development of members of

    the organization by providing opportunities for training and

    advancement

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    To develop and maintain a quality work life which makes

    employment in the organization a desirable personal and social

    situation.

    To maintain high morale and good human relations within the

    organization. To recognize and satisfy individual needs and group goals by

    offering appropriate monetary and non monetary incentives.

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    SCOPE OF HRM

    The labor or Human Resource Aspect: it is concerned with man

    power planning, recruitment, selection, placement, induction

    etc.

    The Welfare aspect: this aspect is concerned with working

    conditions and amenities such as canteens, crches, rest rooms,wash rooms, etc.

    The Industrial Relations Aspect: this is concerned with the

    companys relations with the employees. It includes union

    management relations, joint consultation, negotiation, collective

    bargaining.. Etc.

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    DIFFERENCE BETWEEN PERSONNEL

    MANAGEMENT AND HRM

    PM HRM

    Careful delineation of written

    contracts

    Monitoring Indirect communication

    Pay is based on fixed grades

    Aim to beyond contract

    Nurturing Direct communication

    Pay is performance related

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    TRADITIONS IN PERSONNEL MANAGEMENTWelfare Up to 1920s Personnel Management

    as a personal service to

    employees, who are the

    clients of personnel officer

    Employment

    management

    Up to 1930s Emphasized the control of

    numbers and budgets

    and placed stress on

    economic efficiency

    Bureaucratic 1914 to present The personnel

    administrator typical of

    many large organizations

    operates a

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    Before1890

    Industrial

    technologies

    Disciplinary systems

    1900-1910 Employee well

    being

    Health and safety programs

    1920s Task Design

    / Efficiency

    Time & motion studies

    Employee counseling &

    testing

    1930s Union of workforce

    Passage of labor

    laws

    Communication programs

    Anti Union campaigns

    TIME PERIOD

    HR Focus

    HR Activity

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    1940s Employee benefits

    and compensation

    Wage increases

    Cost of living adjustments

    1950s Employee

    relations/Specializ

    ed functions

    Training & Development

    Separate divisions within personnel

    established

    1960s Employee

    Participation

    Employee

    Involvement/Management by

    Objectives

    1970s Government

    interventions

    Employee rights issues now

    regulated in areas of discrimination,

    safety and health etc.

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    THE FOMBRUN, TICHY AND DEVANNA MODEL

    OF HRM (FOMBRUN ET AL.,1984)

    Perormance

    Human resourcedevelopment

    Appraisals

    Rewards

    selection

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    THE HARVARD MODEL OF HRM (BEER ET AL.,1984)

    STAKEHOLDER

    INTEREST

    SHAREHOLDERS

    MANAGEMENT

    EMPLOYEE GROUPS

    GOVERNMENT

    COMMUNITY

    UNIONS

    Situational factors

    Workforce

    characteristics

    Business Strategy

    Management philosophy

    Labor market

    Unions

    Task technologyLaws and societal values

    HRM Policy

    Choices

    EmployeeInfluence

    Human Resource-

    flows

    Reward systems

    Work systems

    HR Outcomes

    Commitment

    Competence

    Congruence

    Cost

    effectiveness

    Long term

    Consequences

    Individual

    Well being

    Organizational

    Effectiveness

    Societal

    Well being

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    THE GUEST MODEL OF

    HRM,1997HRM

    STRATEGY

    HRM

    PRACTICES

    HRM

    OUTCOMES

    BEHAVI

    OUROUTCO

    MES

    PERFOR

    MANCEOUTCO

    MES

    FINANCI

    ALOUTCO

    MES

    Differenti-

    ation ( Inno

    vation

    Focus

    (Quality)

    Cost

    (Cost-red-

    -ction)

    Selection

    Training

    Appraisal

    Rewards

    Job design

    Involvement

    Status and

    Security

    Commit-

    -ment

    Quality

    Flexibility

    Effort/

    Motivation

    Cooperatio

    n

    Involvement

    Organiza-

    -tional

    citizenship

    High:

    Productivity

    QualityInnovation

    Low:

    AbsenceLabor

    turnover

    Conflict

    Customer

    complaints

    Profits

    ROI

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    CHANGING FOCUS & PRIORITIES OF HR

    AUTHOR KEY CONCEPT HR PRIORITIES

    Lawler(1995)

    HR is a major player

    In creatingorganizational

    capability

    Development of

    people and

    organizations

    Leveraging

    competencies

    Managing learning

    linkages

    Leadership

    development

    Building

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    Ulrich, Brock bank,

    Yeung,&Lake(1993)

    HR has a new

    strategicagenda

    External customer

    satisfaction

    Management of

    change

    Teamwork capability

    Culture and systems

    to support Total Quality

    Management

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    Towers

    Perrin(1992)

    HR actions gain

    importance for

    creatingcompetitive

    advantage

    Business

    directions,problems, and

    plans

    Rewarding

    employees forcustomer service

    and quality

    Identify high

    potential

    employees early

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    Schuler(1990)

    HR issues are

    people relatedbusiness issues

    Managing for

    employee

    competence

    Managing workforce

    diversity

    Managing

    competitiveness

    Managing for

    globalization

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    Geer glades (1990) HR areas have

    great impact onorganizational

    performance

    Leadership

    Organizational

    cultureStrategy in the

    management of HR