1. Overview Nature and Scope of HRM Challenges in HRM An Investment Perspective of HRM Human Resource Planning Job Analysis and Job Design Recruitment and Selection Inducting and Placing New Hires Performance Appraisal Compensation Management (components of remuneration, incentives, benefits and services, fringe benefits, perquisites, top executives remuneration)

2. Overview Health and Safe Environment Managing Separations and Rightsizing Industrial Relations Trade Unions Resolving Disputes Labour Laws in Pakistan Equal Employment Practices in Pakistan International Human Resource Management Evaluating HR effectiveness

3. CHAPTER 1 UNDERSTANDING THE NATURE AND SCOPE OF HRM

4. Overview What is HRM? HRM Activities Scope of HRM Difference between HRM and PM HRM Objectives and Functions

5. 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”

6. 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

7. HRM Activities HR Planning Job Analysis and Design Recruitment and Selection Training and Development Remuneration Welfare Safe and Healthy Work Environment Industrial relations

8. SCOPE OF HRM 1. Introduction to HRM 2. Employee Hiring 3. Employee Remuneration 4. Employee Motivation 5. Employee Maintenance 6. Industrial Relations 7. Prospects of HRM

9. Scope Of HRM HRM Prospects of HRM IR Career Development Introduction of HRM Employee Hiring Employee Remuneration Employee Motivation Employee Maintenance Source: Aswathappa, 2008, p.6

10. The Semantics There two terms 1. PM (Personnel Management ) 2. HRM (Human Resource Management ) PM and HRM are different in scope and orientation HRM is broad concept PM and HRD (Human Resource Development) are part of HRM

11. Differences Between HRM and PM DimensionsPMHRM 1.Employment contract Care full delineation of written contracts Aim to go behind contract 2.Rules Importance of devising clear rules Can do outlook, impatience with rule 3.Guide to management action ProceduresBusiness need 4.Behaviour referentNorms,customs and practicesValues and mission 5.Managerial task vis-à-vis labor MonitoringNurturing 6.Speed of decisionSlowFast 7.Management roleTransactionalTransformational leadership 8.CommunicationIndirectDirect 9. Prized management skillsNegotiationFacilitation 10.SelectionSeparate,marginal taskIntegrated, key task 11.Labour managementCollective barraging contractsIndividual contracts 12.Job categories and gradeManyFew 13.Job designDivision of labourTeam work 14.Conflict handlingReach temporary truceManage climate and culture

12. Differences Between HRM and PM DimensionsPMHRM 15.Respect for employees Labour is used as tool which is spendable and replaceable Peoples are used as assets to be used for the benefit of organization 16.Shared interest Interest of organizations are uppermost Mutuality of interest 17.EvolutionPrecedes HRM Latest in evolution of subjects 18.Locus of controlExternalInternal 19.Oganization principles Mechanistic Top down centralized Organic Bottom-up Decentralized 20.Key relationsLabour ManagementCustomers 21.InitiativesPiecemealIntegrated 22.PayJob evaluationPerformance related 23.Training and developmentControlled accessed to courses Learning companies Source: Aswathappa, 2008, p.7

13. HRM Functions and Objectives The main objective of HRM is to ensure the availability of willing and competent force to an organization There are other objective of HRM too 1. Societal objectives 2. Functional objectives 3. Organizational objectives 4. Personal objectives

14. HRM FUNCTIONS AND OBJECTIVES Societal Objectives Functional Objectives Personal Objectives Source: Aswathappa, 2008, p.8 Organizational Objectives

15. HRM Functions and Objectives Societal objectives Societal objectives of HRM make sure that the organization is socially and ethically responsible Minimizing negative impact of societal demands on organizations For example: EOE laws forces organizations to be ethical in recruitment, to minimize the discrimination against hiring based on ethnicity, race, and religion etc.

16. HRM Functions and Objectives Organizational objectives To determine the role of HRM in organizational effectiveness Its purpose is to assist/serve organization HR department also serve other departments

17. HRM Functions and Objectives Functional objectives To maintain department contribution in organizational effectiveness HR department services must fit into the organizational needs

18. HRM Functions and Objectives Personal objectives To assist employees in achieving their personal/individual goals Maximum contribution to organization Personal objectives are achieved when employees are satisfied, motivated and retained Satisfied employees excellent services excellent organizational performance

19. HRM ObjectivesSupporting Functions Societal ObjectivesLegal compliance Benefits Union-Management relationship Organizational ObjectivesHuman Resource Planning Employee Relations Training and Development Performance Appraisal Placement Functional ObjectivesPerformance Appraisal Placement Personal ObjectivesCompensation Training and Development Performance Appraisal Placement HRM Functions and Objectives Source: Aswathappa, 2008, p.10

20. 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

21. 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

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

23. Organization Of HR Department HRM in large scale organization Chairman Deputy Director Training Director HRM Director R & D Director Finance Director Production Deputy Director Recruitment Deputy Director Promotions

24. Composition Of HR and Personnel Department Director HRM Manager Personnel Manager Administration Manager HRD Manager IR HR Planning Hiring Complaints Compensation PRCanteen WelfareTransport Legal

25. 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

26. Summary What is HRM? HRM Activities Scope of HRM Difference between HRM and PM HRM Objectives and Functions