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Human Resource Management
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Organizational Goals Financial Resources Human Resources
Physical Resources Human Resources Organizational Goals
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WHAT IS HR????? Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy. Other terms sometimes used include "manpower", "talent", "labor" or simply "people". Organizations are composed of people and these people represent one of the organizations most valuable assets. But the resource is seldom given any importance because the organization does not own people like its other capital and physical assets.
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What is HRM? The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. A management function that helps managers recruit, select, train and develop members for an organization. HRM may be defined as a set of policies, practices and programs designed to maximize both personal and organizational goals.
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"I believe the real difference between success and failure in a corporation can be very often traced to the question of how well the organization brings out the great energies and talents of its people." Thomas J. Watson, Jr. (Thomas J. Watson, Jr., was chairman and chief executive officer during IBM's most explosive period of growth. He led the company from the age of mechanical tabulators and typewriters into the computer era. During his leadership, IBM grew from a medium-sized business to one of the dozen largest industrial corporations in the world. When Mr. Watson became Chief Executive Officer in 1956, IBM employed 72,500 people and had a gross income of $892 million. When he stepped down in 1971, employees numbered more than 270,000 and gross revenue was $8.3 billion. Fortune magazine once called him "the greatest capitalist who ever lived."}
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And I'd say one of the great lessons I've learned over the past couple of decades, from a management perspective, is that really when you come down to it, it really is all about people and all about leadership. Steve Case {Stephen McConnell "Steve" Case (born August 21, 1958) is an American businessman best known as the co-founder and former chief executive officer and chairman of America Online (AOL). Since his retirement as chairman of AOL Time Warner in 2003,[3] he has gone on to build a variety of new businesses through his investment company Revolution. In addition, he serves as chair of the Case Foundation run by his wife Jean Case. In early 2011, he was selected by President Barack Obama to serve as Chairman of the Startup America Partnership [4] and named to the President’s Council on Jobs and Competitiveness. [5] Steve Case is also a frequent guest on CNBC's Squawk Box and appeared on August 24, 2011 to discuss his initiatives to spur high growth entrepreneurship and job creation on behalf of the Startup America Partnership and the President's Council on Jobs and Competitiveness}
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Nature of HRM Integral part of process of management
Comprehensive Function Pervasive Function People Oriented Based on human relations Continuous process Science as well as art Interdisciplinary Basic to all functional areas
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Employee Hiring Employee motivation Employee Maintenance
Scope of HRM Introduction to HRM Employee Hiring Employee motivation Employee Maintenance Industrial Relations Prospects of HRM
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Industrial Relation Aspect
Scope of HRM Industrial Relation Aspect Welfare Aspect Personnel Aspect
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Objectives of HRM Personnel Objectives Functional Objectives
Organizational Objectives Societal Objectives
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Functions of HRM: objectives
Societal Objectives Legal Compliance Union-Management Relations
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Functions Employee Relations Selection Appraisal Placement Assessment
Organizational Employee Relations Selection Appraisal Placement Assessment
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Policies, Principles and Procedures
Policy : A plan of action.. A statement of action committing management to a general course of action. Principle: fundamental truth established by research, investigation and analysis….guide the managers in formulating policies, programs and procedures. Procedures: a method for carrying out a policy….
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Importance of HRM Importance for organization Importance for employees
Importance for society.
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Limitations of HRM Lack of Top Management Support
Improper Implementation Inadequate Development Programs Inadequate Information
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Systems approach to HRM
An enterprise cannot work in isolation. Has to adjust its working to suit the environment. Subsystems: Departments that are created in an organization to carry out its business effectively.
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Important Subsystems HR system Production System Finance System
Marketing System Research and development System
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Place Of HR Department Size Matters!!!! In case of a small unit…………
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Small unit owner Production manager Sales Manager Office Manager
Personnel assistant Accountant
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Large Unit Chairman Director Production Director Finance Director HRM
Director Marketing Director R&D
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HRM Environment Proactive not Reactive………
Factors affecting HRM Environment External Environment Internal Environment
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External Environment Economic Factors Political – Legal Factors
Social and Cultural Factors Technological Factors Unions Professionalism GLOBALIZATION SUPPLIERS CUSTOMERS COMPETITORS
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ORGANIZATIONAL CULTURE ORGANIZATIONAL CONFLICT
Internal Environment MISSION POLICIES ORGANIZATIONAL CULTURE ORGANIZATIONAL CONFLICT
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Human Resource Planning
What??? When??? Where???? HOW???
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HRP…… The process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Right Number and Right Kind of people Right Places Right Time to do things which result in both the organization and individual receiving maximum benefit.
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Objectives of HRP Assessing manpower Assessing skill requirement.
Anticipating shortage and surplus of staff. Controlling wage and salary costs Optimum use of HR
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Process of HRP Analysis of objectives and strategic plans of the company Preparing manpower inventory Manpower forecasting Manpower plans Appraisal of manpower planning
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Analysis of objectives and strategic plans
Must be integrated with other business policies. Analysis of each plan into sub-plans and detailed program.
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Preparing manpower inventory
Manpower inventory: refers to assessment of present and potential qualifications of present employees. Avoid situation of over/under staffing. Analysis of current manpower supply. By Department By Function By Occupation By Qualification… Helps to find out gaps…
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Manpower Forecasting Analysis of staff during past 5 years resignation
Employment Trends resignation retirement Replacement Needs Utilization of existing manpower productivity
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Manpower Forecasting Absenteeism Expansion and Growth Work Study
A situation when person fails to come for work when he is scheduled for work. Absenteeism Timely steps needed. Expansion and Growth Workload analysis to be done. Work Study
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Manpower Plans Decide required number of people.
Develop programs and strategies. Development plans are designed
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Training and Development Plans
Not only for new employees but also for the old ones. Tapping of talent required. The organization has no choice whether to provide training or not…..but the only choice is to decide the method/ technique of training.
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Types of HRP Short Term HRP - to match the individuals with the job.
Long Term HRP – to fulfill future vacancies.
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Benefits of HRP Reduced Labor Costs. Optimum Utilization of manpower
Identification of Gaps in existing manpower. Improvement in overall business planning. Career Succession Planning Creates awareness in an organization. Growth of Organization Beneficial to the country.
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