HRM Topic 1

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Topic 1.

FR A M E W O RK O F H U M A N R ES O U R C E
M A N A GE M E N T
Introduction to HRM and framework
HRM and SHRM
Models of SHRM
Introduction to HRM and framework

Who Is More Important To A Company: Its


Customers Or Its Employees?
CHAPTER 1

FRAMEWORK OF HUMAN RESOURCE


MANAGEMNET

"you must treat your employees with respect and


dignity because in the most automated factory in
the world, you need the power of human mind. That
is what brings in innovation. If you want high
quality minds to work for you, then you must
protect the respect and dignity. “

Mr N.R. Narayana Murthy, Founder of Infosys Ltd


HUMAN RESOURCE MANAGEMENT (HRM)

Edwin Flippo defines- HRM as “planning,


organizing, directing, controlling of procurement,
development, compensation, integration ,
maintenance and separation of human resources to
the end that individual, organizational and social
objectives are achieved.” 

10/10/12
HUMAN RESOURCE MANAGEMENT (HRM)

According to Decenzo and Robbins,


 “HRM is concerned with the people dimension” in
management. Since every organization is made up of
people, acquiring their services, developing their
skills, motivating them to higher levels of
performance and ensuring that they continue to
maintain their commitment to the organization is
essential to achieve organisational objectives.
This is true, regardless of the type of organization –
government, business, education, health or social
action”.
10/10/12
HUMAN RESOURCE MANAGEMENT (HRM)

1. Organizational effectiveness (HRM makes a significant impact on


firm performance)
2. Human capital management (HC is the prime asset – the aim is to
develop the inherent capacities of people)
3. Knowledge management (support the development of firm-specific
knowledge)
4. Reward management (enhance motivation, job engagement)
5. Employee relations (harmonious relationship between partners)
6. Meeting diverse needs (stakeholders, workforce)
7. Bridging the gap between rhetoric and reality (HRM is to bridge
the gap – and to ensure that aspirations are translated to effective
action
The link between HRM and firm performance
Scope Of HRM

Introductio
Prospects n of
Employee
of HRM
Hiring
HRM

Employee
Career Remuneration
Development HRM

Employee
Employee Motivation
IR Maintenance

Source: Aswathappa, 2008, p.6


HRM FUNCTIONS AND OBJECTIVES

Societal Objectives

Organizational
Objectives

Functional
Objectives

Personal
Objectives

Source: Aswathappa, 2008, p.8


HRM Functions and Objectives

Societal objectives: Societal objectives of HRM make sure that the


organization is socially and ethically responsible. example:
Organizations to be ethical in recruitment, to minimize the
discrimination against hiring based on ethnicity, race, and
religion etc.

Organizational objectives : To determine the role of HRM in


organizational effectiveness.

Personal objectives :To assist employees in achieving their


personal/individual goals.

Satisfied employees excellent services excellent


organizational performance
HRM Functions and Objectives

HRM Objectives Supporting Functions


Societal Objectives Legal compliance
Benefits
Union-Management relationship
Organizational Human Resource Planning
Objectives Employee Relations
Training and Development
Performance Appraisal
Placement
Functional Objectives Performance Appraisal
Placement
Personal Objectives Compensation
Training and Development
Performance Appraisal
Placement
Source: Aswathappa, 2008, p.10
HR policies

Video
Traditional HR versus Strategic HR
4–
22

Copyright © 2002 South-Western. All rights


reserved.
Effective HR Strategy Formulation and
Implementation

Organizational Consistency Environment


Strategies
Fit Fit

Consistency
Consistency

Improved
HR Strategies Firm
Performance

Fit Fit
Organizational Organizational
Characteristics Consistency Capabilities
SHRM MODELS
THE HARVARD FRAMEWORK

Stakeholder
interests:
• shareholders
• management
• employees
• government
• unions
HRM policy HR outcomes: Long-term
choices: consequences:
• commitment  individual well-
• employee influence
Situational factors: • human resource • competence being
• workforce • Organizational
flow • cost-effectiveness
characteristics • reward systems effectiveness
• business • work systems • societal well-
strategy and being
conditions
• management
philosophy
• labour market
• unions
• task technology
• laws and social
values

Source: M Beer et al, Managing Human Assets, The Free Press, 1984

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