HRM.pptx

ORGANIZATION DEVELOPMENT (OD)
IS A DELIBERATELY PLANNED,
ORGANIZATION-WIDE EFFORT TO
INCREASE AN ORGANIZATION'S
EFFECTIVENESS AND/OR
EFFICIENCY.
OD THEORISTS AND
PRACTITIONERS DEFINE IT IN
VARIOUS WAYS.
ITS MULTIPLICITY OF DEFINITION
REFLECTS THE COMPLEXITY OF
THE DISCIPLINE AND IS
RESPONSIBLE FOR ITS LACK OF
UNDERSTANDING.

FOR EXAMPLE, VASUDEVAN HAS
REFERRED TO OD BEING ABOUT
PROMOTING ORGANIZATIONAL
READINESS TO MEET CHANGE, AND
IT HAS BEEN SAID THAT OD IS A
SYSTEMIC LEARNING AND
DEVELOPMENT STRATEGY INTENDED
TO CHANGE THE BASICS OF BELIEFS,
ATTITUDES AND RELEVANCE OF
VALUES, AND STRUCTURE OF THE
CURRENT ORGANIZATION TO BETTER
ABSORB DISRUPTIVE TECHNOLOGIES,
SHRINKING OR EXPLODING MARKET
OPPORTUNITIES AND ENSUING
CHALLENGES AND CHAOS.

IT IS WORTH UNDERSTANDING
WHAT OD IS NOT.
IT IS NOT TRAINING, PERSONAL
DEVELOPMENT, TEAM
DEVELOPMENT, HRD (HUMAN
RESOURCE DEVELOPMENT), L&D
(LEARNING AND DEVELOPMENT)
OR A PART OF HR ALTHOUGH IT
IS OFTEN MISTAKENLY
UNDERSTOOD AS SOME OR ALL
OF THESE.

OD INTERVENTIONS ARE ABOUT
CHANGE SO INVOLVE PEOPLE - BUT
OD ALSO DEVELOPS PROCESSES,
SYSTEMS AND STRUCTURES.
THE PRIMARY PURPOSE OF OD IS
TO DEVELOP THE ORGANIZATION,
NOT TO TRAIN OR DEVELOP THE
STAFF.

OBJECTIVE OF OD
THE OBJECTIVE OF OD IS:
TO INCREASE THE LEVEL OF INTER-
PERSONAL TRUST AMONG
EMPLOYEES.
TO INCREASE EMPLOYEES' LEVEL
OF SATISFACTION AND
COMMITMENT.
TO CONFRONT PROBLEMS INSTEAD
OF NEGLECTING THEM.
TO EFFECTIVELY MANAGE
CONFLICT.

TO INCREASE COOPERATION AND
COLLABORATION AMONG THE
EMPLOYEES.
TO INCREASE THE ORGANIZATION'S
PROBLEM SOLVING.
TO PUT IN PLACE PROCESSES THAT
WILL HELP IMPROVE THE ONGOING
OPERATION OF THE ORGANIZATION
ON A CONTINUOUS BASIS.
AS OBJECTIVES OF
ORGANIZATIONAL DEVELOPMENT
ARE FRAMED KEEPING IN VIEW
SPECIFIC SITUATIONS, THEY VARY
FROM ONE SITUATION TO ANOTHER.

IN OTHER WORDS, THESE
PROGRAMS ARE TAILORED TO MEET
THE REQUIREMENTS OF A
PARTICULAR SITUATION.
BUT BROADLY SPEAKING, ALL
PROGRAMS TRY TO ACHIEVE THE
FOLLOWING OBJECTIVES:
MAKING INDIVIDUALS IN THE
ORGANIZATION AWARE OF THE
VISION OF THE ORGANIZATION.
HELPS IN MAKING EMPLOYEES
ALIGN WITH THE VISION OF THE

ENCOURAGING EMPLOYEES TO
SOLVE PROBLEMS INSTEAD OF
AVOIDING THEM.
STRENGTHENING INTER-
PERSONNEL TRUST,
COOPERATION, AND
COMMUNICATION FOR THE
SUCCESSFUL ACHIEVEMENT OF
ORGANIZATIONAL GOALS.

ENCOURAGING EVERY
INDIVIDUAL TO PARTICIPATE IN
THE PROCESS OF PLANNING,
THUS MAKING THEM FEEL
RESPONSIBLE FOR THE
IMPLEMENTATION OF THE PLAN.
CREATING A WORK ATMOSPHERE
IN WHICH EMPLOYEES ARE
ENCOURAGED TO WORK AND
PARTICIPATE ENTHUSIASTICALLY.

REPLACING FORMAL LINES OF
AUTHORITY WITH PERSONAL
KNOWLEDGE AND SKILL.
CREATING AN ENVIRONMENT OF
TRUST SO THAT EMPLOYEES
WILLINGLY ACCEPT CHANGE.
ACCORDING TO ORGANIZATIONAL
DEVELOPMENT THINKING,
ORGANIZATION DEVELOPMENT
PROVIDES MANAGERS WITH A
VEHICLE FOR INTRODUCING
CHANGE SYSTEMATICALLY BY
APPLYING A BROAD SELECTION OF
MANAGEMENT TECHNIQUES.

THIS, IN TURN, LEADS TO
GREATER PERSONAL, GROUP,
AND ORGANIZATIONAL
EFFECTIVENESS.

HRD STRATEGIES FOR LONG
TERM PLANNING AND GROWTH

• IN TODAY’S FAST CHANGING,
CHALLENGING AND
COMPETITIVE ENVIRONMENT
HRD HAS TO TAKE A PROACTIVE
APPROACH THAT IS TO SEEK
PREVENTIVE CARE IN HUMAN
RELATIONS.

• USING HRD STRATEGIES
MAXIMIZATIONS OF EFFICIENCY
AND PRODUCTIVITY COULD BE
ACHIEVED THROUGH
QUALITATIVE GROWTH OF
PEOPLE WITH CAPABILITIES AND
POTENTIALITIES TO GROW AND
DEVELOP.

• HRD IS ALWAYS A FUNCTION OF
PROPER UTILIZATION OF
CREATIVE OPPORTUNITIES AND
AVAILABLE ENVIRONMENT
THROUGH ACQUISITION OF
KNOWLEDGE, SKILLS AND
ATTITUDES NECESSARY FOR
PRODUCTIVE EFFORTS.

• LONG-TERM GROWTH CAN ALSO
BE PLANNED BY CREATING
HIGHLY INSPIRED GROUPS OF
EMPLOYEES WITH HIGH
ASPIRATIONS TO DIVERSIFY
AROUND CORE COMPETENCIES
AND TO BUILD NEW
ORGANIZATIONAL RESPONSES
FOR COPING WITH CHANGE.

• A PROACTIVE HRD STRATEGY
CAN IMPLEMENT ACTIVITIES
THAT ARE GEARED UP AND
DIRECTED AT IMPROVING
PERSONAL COMPETENCE AND
PRODUCTIVE POTENTIALITIES OF
HUMAN RESOURCES.

FOLLOWING STRATEGIC CHOICES CAN
BE CONSIDERED WHICH WOULD HELP
TODAY’S ORGANIZATIONS TO SURVIVE
AND GROW.
• CHANGE MANAGEMENT: MANAGE
CHANGE PROPERLY AND BECOME AN
EFFECTIVE CHANGE AGENT RATHER
THAN BEING A VICTIM OF CHANGE
ITSELF.
• VALUES: ADOPT PROACTIVE HRD
MEASURES, WHICH ENCOURAGE
VALUES OF OPENNESS, TRUST,
AUTONOMY, PROACTIVITY AND
EXPERIMENTATION.

• MAXIMIZE PRODUCTIVITY AND
EFFICIENCY:
• THROUGH QUALITATIVE GROWTH
OF PEOPLE WITH CAPABILITIES
AND POTENTIALITIES TO GROW
AND DEVELOP THRIVE TO
MAXIMIZE PRODUCTIVITY AND
EFFICIENCY OF THE
ORGANIZATION.

• ACTIVITIES DIRECTED TO
COMPETENCE BUILDING:
• HRD ACTIVITIES NEED TO BE
GEARED UP AND DIRECTED AT
IMPROVING PERSONAL
COMPETENCE AND PRODUCTIVE
POTENTIALITIES OF MANPOWER
RESOURCES.

• HUMAN RESOURCE
MANAGEMENT, TRAINING AND
DEVELOPMENT IS THE FIELD
WHICH IS CONCERNED WITH
ORGANIZATIONAL ACTIVITY AIMED
AT BETTERING THE PERFORMANCE
OF INDIVIDUALS AND GROUPS
INORGANIZATIONAL SETTINGS.
• IT HAS BEEN KNOWN BY SEVERAL
NAMES, INCLUDING HUMAN
RESOURCE DEVELOPMENT,
AND LEARNING AND
DEVELOPMENT.

• HARRISON OBSERVES THAT THE
NAME WAS ENDLESSLY DEBATED
BY THE CHARTERED INSTITUTE
OF PERSONNEL AND
DEVELOPMENT DURING ITS
REVIEW OF PROFESSIONAL
STANDARDS IN 1999/2000.

• "EMPLOYEE DEVELOPMENT" WAS
SEEN AS TOO EVOCATIVE OF THE
MASTER-SLAVE RELATIONSHIP
BETWEEN EMPLOYER AND
EMPLOYEE FOR THOSE WHO
REFER TO THEIR EMPLOYEES AS
"PARTNERS" OR "ASSOCIATES"
TO FEEL COMFORTABLE WITH.

• TRAINING AND DEVELOPMENT
(T&D) ENCOMPASSES THREE
MAIN ACTIVITIES: TRAINING,
EDUCATION, AND DEVELOPMENT.
• GARAVAN, COSTINE, AND
HERATY, OF
THE INTERNATIONAL INSTITUTE
OF MARKET RESEARCH AND
ANALYTICS, NOTE THAT THESE
IDEAS ARE OFTEN CONSIDERED
TO BE SYNONYMOUS.

• HOWEVER, TO PRACTITIONERS,
THEY ENCOMPASS THREE
SEPARATE, ALTHOUGH
INTERRELATED, ACTIVITIES:
• TRAINING: THIS ACTIVITY IS BOTH
FOCUSED UPON, AND EVALUATED
AGAINST, THE JOB THAT AN
INDIVIDUAL CURRENTLY HOLDS.
• EDUCATION: THIS ACTIVITY
FOCUSES UPON THE JOBS THAT
AN INDIVIDUAL MAY POTENTIALLY
HOLD IN THE FUTURE, AND IS
EVALUATED AGAINST THOSE JOBS.

• DEVELOPMENT: THIS ACTIVITY
FOCUSES UPON THE ACTIVITIES
THAT THE ORGANIZATION
EMPLOYING THE INDIVIDUAL, OR
THAT THE INDIVIDUAL IS PART OF,
MAY PARTAKE IN THE FUTURE,
AND IS ALMOST IMPOSSIBLE TO
EVALUATE.

MANAGEMENT OF
ORGANIZATIONAL CHANGE

ORGANIZATIONAL
CHANGE
MANAGEMENT
• ORGANIZATIONAL CHANGE
MANAGEMENT (OCM) IS A
FRAMEWORK FOR MANAGING THE
EFFECT OF NEW BUSINESS
PROCESSES, CHANGES IN
ORGANIZATIONAL STRUCTURE OR
CULTURAL CHANGES WITHIN AN
ENTERPRISE.

• SIMPLY PUT, OCM
ADDRESSES THE PEOPLE
SIDE OF CHANGE
MANAGEMENT.

• A SYSTEMATIC APPROACH TO
OCM IS BENEFICIAL WHEN
CHANGE REQUIRES PEOPLE
THROUGHOUT AN
ORGANIZATION TO LEARN NEW
BEHAVIORS AND SKILLS.

• BY FORMALLY SETTING
EXPECTATIONS, EMPLOYING
TOOLS TO IMPROVE
COMMUNICATION AND
PROACTIVELY SEEKING WAYS TO
REDUCE MISINFORMATION,
STAKEHOLDERS ARE MORE
LIKELY TO BUY INTO A CHANGE
INITIALLY AND REMAIN
COMMITTED TO THE CHANGE
THROUGHOUT ANY DISCOMFORT
ASSOCIATED WITH IT.

SUCCESSFUL OCM
STRATEGIES INCLUDE:
• AGREEMENT ON A COMMON VISION
FOR CHANGE -- NO COMPETING
INITIATIVES.
• STRONG EXECUTIVE LEADERSHIP TO
COMMUNICATE THE VISION AND
SELL THE BUSINESS CASE FOR
CHANGE.
• A STRATEGY FOR EDUCATING
EMPLOYEES ABOUT HOW THEIR DAY-
TO-DAY WORK WILL CHANGE.

• A CONCRETE PLAN FOR HOW TO
MEASURE WHETHER OR NOT THE
CHANGE IS A SUCCESS -- AND
FOLLOW-UP PLANS FOR BOTH
SUCCESSFUL AND
UNSUCCESSFUL RESULTS.
• REWARDS, BOTH MONETARY AND
SOCIAL, THAT ENCOURAGE
INDIVIDUALS AND GROUPS TO
TAKE OWNERSHIP FOR THEIR
NEW ROLES AND
RESPONSIBILITIES.

HUMAN RESOURCE
MANAGEMENT
AND PRODUCTIVITY

• HUMAN RESOURCE
MANAGEMENT (HRM, OR
SIMPLY HR) IS
THE MANAGEMENT PROCESS OF
AN ORGANIZATION'S WORKFORC
E, OR HUMAN RESOURCES.

• IT IS RESPONSIBLE FOR
THE ATTRACTION, SELECTION, T
RAINING,ASSESSMENT,
AND REWARDING OF
EMPLOYEES, WHILE ALSO
OVERSEEING
ORGANIZATIONAL LEADERSHIP A
ND CULTURE AND ENSURING
COMPLIANCE
WITH EMPLOYMENT AND LABOR
LAWS.

• IN CIRCUMSTANCES WHERE
EMPLOYEES DESIRE AND ARE
LEGALLY AUTHORIZED TO HOLD
A COLLECTIVE BARGAINING
AGREEMENT, HR WILL ALSO
SERVE AS THE COMPANY'S
PRIMARY LIAISON WITH THE
EMPLOYEES' REPRESENTATIVES
(USUALLY A TRADES UNION).

• HR IS A PRODUCT OF THE HUMAN
RELATIONS MOVEMENT OF THE
EARLY 20TH CENTURY, WHEN
RESEARCHERS BEGAN
DOCUMENTING WAYS OF CREATING
BUSINESS VALUE THROUGH THE
STRATEGIC MANAGEMENT OF THE
WORKFORCE.

• THE FUNCTION WAS INITIALLY
DOMINATED BY TRANSACTIONAL
WORK, SUCH
AS PAYROLL AND BENEFITS ADMI
NISTRATION, BUT DUE
TO GLOBALIZATION, COMPANY
CONSOLIDATION,
TECHNOLOGICAL ADVANCEMENT,
AND FURTHER RESEARCH,

• HR NOW FOCUSES ON
STRATEGIC INITIATIVES
LIKE MERGERS AND
ACQUISITIONS, TALENT
MANAGEMENT, SUCCESSION
PLANNING, INDUSTRIAL AND LAB
OR RELATIONS,
AND DIVERSITY AND INCLUSION.

PRODUCTIVITY
• PRODUCTIVITY IS THE RATIO
OF OUTPUT TO INPUTS IN
PRODUCTION; IT IS AN AVERAGE
MEASURE OF THE EFFICIENCY
OF PRODUCTION.
• EFFICIENCY OF PRODUCTION
MEANS PRODUCTION’S CAPABILITY
TO CREATE INCOMES WHICH IS
MEASURED BY THE FORMULA REAL
OUTPUT VALUE MINUS REAL INPUT
VALUE.

• INCREASING NATIONAL
PRODUCTIVITY CAN RAISE LIVING
STANDARDS BECAUSE MORE REAL
INCOME IMPROVES PEOPLE'S
ABILITY TO PURCHASE GOODS AND
SERVICES, ENJOY LEISURE,
IMPROVE HOUSING AND
EDUCATION AND CONTRIBUTE TO
SOCIAL AND ENVIRONMENTAL
PROGRAMS.
• PRODUCTIVITY GROWTH ALSO
HELPS BUSINESSES TO BE MORE
PROFITABLE.

• ECONOMIC GROWTH IS DEFINED
AS A PRODUCTION GROWTH OF
AN OUTPUT OF A PRODUCTION
PROCESS.
• IT IS USUALLY EXPRESSED AS A
GROWTH PERCENTAGE
DEPICTING GROWTH OF THE
REAL PRODUCTION OUTPUT.

• THE REAL OUTPUT IS THE REAL
VALUE OF PRODUCTS PRODUCED
IN A PRODUCTION PROCESS AND
WHEN WE SUBTRACT THE REAL
INPUT FROM THE REAL OUTPUT
WE GET THE REAL INCOME.

• THE REAL OUTPUT AND THE
REAL INCOME ARE GENERATED
BY THE REAL PROCESS OF
PRODUCTION FROM THE REAL
INPUTS.
• THE REAL PROCESS CAN BE
DESCRIBED BY MEANS OF THE
PRODUCTION FUNCTION.

• THE PRODUCTION FUNCTION IS
A GRAPHICAL OR
MATHEMATICAL EXPRESSION
SHOWING THE RELATIONSHIP
BETWEEN THE INPUTS USED IN
PRODUCTION AND THE OUTPUT
ACHIEVED.

• BOTH GRAPHICAL AND
MATHEMATICAL EXPRESSIONS
ARE PRESENTED AND
DEMONSTRATED.
• THE PRODUCTION FUNCTION IS
A SIMPLE DESCRIPTION OF THE
MECHANISM OF PRODUCTION
GROWTH.

• REAL PRODUCTION GROWTH
CONSISTS OF TWO
COMPONENTS.
• THESE COMPONENTS ARE A
CHANGE IN PRODUCTION INPUT
AND A CHANGE IN
PRODUCTIVITY.

• PERFORMANCE APPRAISAL IS A
METHOD OF EVALUATING THE
BEHAVIOUR OF EMPLOYEES IN
THE WORK PLACE NORMALLY
INCLUDING BOTH THE
QUANTITATIVE AND
QUALITATIVE ASPECTS OF JOB
PERFORMANCE.
• PERFORMANCE REFERS TO THE
DEGREE OF ACCOMPLISHMENT
OF THE TASKS THAT MAKE UP
AN INDIVIDUAL’S JOB.

• IT INDICATES HOW ELL AN
INDIVIDUAL IS FULFILLING THE
JOB DEMANDS.
• EVERY ORGANIZATION HAS TO
DECIDE UPON THE CONTENT TO BE
APPRAISED BEFORE THE
PROGRAMME IS APPROVED ON THE
BASIS OF JOB ANALYSIS.
• THE CONTENT TO BE APPRAISED
MAY VARY WITH THE PURPOSE OF
APPRAISAL AND TYPE AND LEVEL
OF EMPLOYEES.

• THE KEY FACTOR IN AN
ORGANIZATION TO SUPPORT AN
EFFECTIVE PERFORMANCE
APPRAISAL SYSTEM IS AS
FOLLOWS:
• ORGANIZATIONAL PLANNING
BASED ON POTENTIALITIES OF
HUMAN RESOURCES.
• HUMAN RESOURCE PLANNING
BASED ON WEAKNESS,
STRENGTHS AND POTENTIALITIES
OF HUMAN RESOURCES.

• ORGANIZATIONAL EFFECTIVENESS
THROUGH PERFORMANCE
IMPROVEMENT.
• FIXATION AND REFIXATION OF
SALARY, ALLOWANCES, INCENTIVES
AND BENEFITS.
• ORIGINAL PLACEMENT OR
PLACEMENT ADJUSTMENT
DECISIONS.
• IDENTIFYING TRAINING AND
DEVELOPMENT NEEDS AND TO
EVALUATE EFFECTIVENESS OF
TRAINING AND DEVELOPMENT.

• NEEDS AND TO EVALUATE
EFFECTIVENESS OF TRAINING
AND DEVELOPMENT
PROGRAMMES
• CAREER PLANNING AND
DEVELOPMENT AND MOVEMENT
OF EMPLOYEES.

• OBJECTIVES OF PERFORMANCE
APPRAISAL SYSTEM :-
PERFORMANCE APPRAISAL AIMS
AT ATTAINING THE DIFFERENT
PURPOSES. THEY ARE :
• TO CREATE AND MAINTAIN A
SATISFACTORY LEVEL OF
PERFORMANCE.
• TO CONTRIBUTE TO THE EMPLOYEE
GROWTH AND DEVELOPMENT
THROUGH TRAINING, SELF AND
MANAGEMENT DEVELOPMENT
PROGRAMMES.

• TATA POWER AIMS AT EMPLOYEE
DEVELOPMENT THROUGH
PERFORMANCE APPRAISAL.
• TO HELP THE SUPERIORS TO HAVE
A PROPER UNDERSTANDING
ABOUT THEIR SUBORDINATES.
• TO GUIDE THE JOB CHANGES WITH
THE HELP TO CONTINUOUS
RANKING.
• TO FACILITATE FAIR AND
EQUITABLE COMPENSATION
BASED ON PERFORMANCE.

• TO FACILITATE FOR TESTING AND
VALIDATING SELECTION TESTS,
INTERVIEW TECHNIQUES
THROUGH COMPARING THEIR
SCORES WITH PERFORMANCE
APPRAISAL RANKS.
• TO PROVIDE INFORMATION FOR
MAKING DECISIONS REGARDING
LAY-OFF, RETRENCHMENT ETC. AS
IN THE CASE OF HYUNDAI
ENGINEERING.

SOURCES OF ERROR IN
PERFORMANCE APPRAISAL:
• RATING BIASES: IT IS A
SUBJECTIVE MEASURE OF RATING
PERFORMANCE WHICH IS NOT
VERIFIABLE BY OTHERS AND HAS
THE OPPORTUNITY FOR BIAS.
• THERE RATER BIASES INCLUDE: A)
THE HALO EFFECT B) THE ERROR
OF CENTRAL TENDENCY C) THE
LENIENCY AND STRICTNESS
BIASES D) PERSONAL PREJUDICE
AND E) THE RECENCY EFFECT.

• HALO EFFECT: IT IS THE
TENDENCY OF THE RATERS TO
DEPEND EXCESSIVELY ON THE
RATING OF ONE TRAIT OR
BEHAVIOURIAL CONSIDERATION IN
RATING ALL OTHER TRAITS OR
BEHAVIOURAL CONSIDERATIONS.
• ONE WAY OF MINIMIZING THE
HALO EFFECT IS APPRAISING ALL
EMPLOYEES BY ONE TRAIT
BEFORE GOING TO RATE THEM ON
THE BASIS OF ANOTHER TRAIT.

• THE ERROR OF CENTRAL
TENDENCY:
• SOME RATERS FOLLOW PLAY
SAFE POLICY IN RATING BY
RATING ALL THE EMPLOYEES
AROUND THE MIDDLE POINT OF
THE RATING SCALE AND THEY
AVOID RATING THE PEOPLE AT
BOTH THE EXTREMES SCALE.

• THEY FOLLOW PLAY SAFE
POLICY BECAUSE OF
ANSWERABILITY TO THE
MANAGEMENT OR LACK OF
KNOWLEDGE ABOUT THE JOB
AND PERSON HE IS RATING OR
HAS LEAST INTEREST IN THE
JOB.

• THE LENIENCY AND
STRICTNESS: THE LENIENCY
BIAS CROPS WHEN SOME RATERS
HAVE A TENDENCY TO BE
LIBERAL IN THEIR RATING BY
ASSIGNING HIGHER RATES
CONSISTENTLY.
• SUCH RATINGS DO NOT SERVE
ANY PURPOSE.
• EQUALLY DAMAGING IS
ASSIGNING CONSISTENTLY LOW
RATES.

• PERSONAL PREJUDICE: IF THE
RATER DISLIKES ANY EMPLOYEE
OR ANY GROUP, HE MAY RATE
THEM AT THE LOWER END, WHICH
MAY DISTORT THE RATING
PURPOSE AND AFFECT THE
CAREER OF THESE EMPLOYEES.

• THE RECENCY EFFECT: THE
RATERS GENERALLY REMEMBER
THE RECENT ACTIONS OF THE
EMPLOYEE AT THE TIME OF
RATING THEM ON THE BASIS OF
THESE RECENT
ACTIONS FAVOURABLE OR
UNFAVOURABLE-RATHER THAN
ON THE WHOLE ACTIVITIES.

ORGANIZATION OF PERSONNEL
FUNCTION

WHAT IS PERSONNEL
FUNCTION?
• PERSONNEL FUNCTION IN AN
ORGANISATION IS TO MANAGE
AND MOTIVATE PEOPLE IN THE
WORKPLACE.

• IT IS NOWADAYS BEING
REPLACED BY HUMAN
RESOURCE MANAGEMENT,
BECAUSE IT IS SEEN AS A
METHOD OF RUNNING AN
ORGANISATION'S ISSUES, AS ITS
MAIN CONCERN IS ON
ORGANISATIONAL ISSUES
RATHER THAN PERSONAL
DEVELOPMENT NEEDS.

PERSONNEL FUNCTIONS
• THE TERM PERSONNEL
DEPARTMENT REFERS TO THE
FUNCTION OF THE ORGANISATION
THAT IS RESPONSIBLE FOR THE
MANAGEMENT AND MOTIVATION
OF PEOPLE IN THE WORKPLACE.
• INCREASINGLY TODAY THE TERM
HUMAN RESOURCE MANAGEMENT
HAS COME TO REPLACE
PERSONNEL -

• BECAUSE PERSONNEL
MANAGEMENT IS SEEN AS AN
OLD FASHIONED WAY OF
MANAGING PEOPLE, GIVING
PRIORITY TO ORGANISATIONAL
RATHER THAN INDIVIDUAL
DEVELOPMENT NEEDS.

• TYPICALLY PERSONNEL WORK IS
CONCERNED WITH:
1. THE RECRUITMENT AND
SELECTION OF NEW EMPLOYEES,
E.G. HELPING TO PREPARE JOB
ADVERTISEMENTS AND JOB
DESCRIPTIONS FOR NEW POSTS,
AND HELPING TO ORGANISE THE
INTERVIEW PROCESS.

• 2. THE INDUCTION OF NEW
EMPLOYEES WHERE THEY ARE
INTRODUCED TO THE COMPANY,
AND ASPECTS OF THE JOB THEY
WILL BE DOING AS WELL AS
ESSENTIAL REQUIREMENTS
SUCH AS HEALTH AND SAFETY
TRAINING.

• 3. TRAINING AND DEVELOPMENT.
• TRAINING FOCUSES ON THE NEEDS
OF THE ORGANISATION WHEREAS
DEVELOPMENT IS MORE
CONCERNED WITH IDENTIFYING
AND MEETING THE NEEDS OF
INDIVIDUAL EMPLOYEES.
4. ORGANISING THE APPRAISAL
PROCESS TO IDENTIFY
DEVELOPMENT NEEDS OF
EMPLOYEES.

• 5. REPRESENTING THE
ORGANISATION AS A GO
BETWEEN ON DISCIPLINARY
ISSUES E.G. WHEN A WORKER
HAS CONTINUOUSLY BEEN LATE
FOR WORK.
• DISMISSING AND MAKING
WORKERS REDUNDANT WHERE
NECESSARY.

• 6. MANAGING PAYMENT SYSTEMS,
ALTHOUGH THIS WILL PROBABLY
BE THE RESPONSIBILITY OF A
SEPARATE PAYROLL SECTION.
•
7. TAKING RESPONSIBILITY FOR
THE MOTIVATION OF EMPLOYEES
BY OUTLINING MOTIVATIONAL
WORK PRACTICES.

• 8. ORGANISING THE
TERMINATION OF WORK, AND
RETIREMENT OF EMPLOYEES, AS
WELL AS JOB REDUNDANCIES
WHERE APPROPRIATE.

• NOWADAYS THE EMPHASIS IS ON
THE HUMAN RESOURCES
DEPARTMENT PROVIDING A
SERVICE, WHICH ENABLES MANY
OF THE ACTIVITIES TO BE
CARRIED OUT BY RELEVANT
DEPARTMENTS WITHIN AN
ORGANISATION BUT WITH
SUPPORT AND GUIDANCE FROM
HUMAN RESOURCES.

MANPOWER PLANNING MEANS
PLANNING MEANS DECIDING
THE NUMBER AND TYPE OF
THE HUMAN RESOURCES
REQUIRED FOR EACH JOB,
UNIT AND THE TOTAL
COMPANY FOR A PARTICULAR
FUTURE DATE IN ORDER TO
CARRY OUT ORGANIZATIONAL
ACTIVITIES.

MANPOWER PLANNING MAY BE
VIEWED AS FORESEEING THE HUMAN
RESOURCES REQUIREMENT OF AN
ORGANIZATION AND THE FUTURE
SUPPLY OF HUMAN RESOURCES AND
(I) MAKING NECESSARY
ADJUSTMENTS BETWEEN THESE TWO
AND ORGANIZATIONAL PLANS AND (II)
FORESEEING THE POSSIBILITY OF
DEVELOPING THE SUPPLY OF
MANPOWER RESOURCES IN ORDER TO
MATCH IT WITH THE REQUIREMENTS
BY INTRODUCING NECESSARY
CHANGES IN THE FUNCTIONS OF
HUMAN RESOURCES MANAGEMENT.

JOB ANALYSIS IS THE IMPORTANT
PROCESS OF IDENTIFYING THE
CONTENT OF A JOB IN TERMS OF
ACTIVITIES INVOLVED AND
ATTRIBUTES NEEDED TO PERFORM
THE WORK AND IDENTIFIES MAJOR
JOB REQUIREMENTS.
JOB ANALYSIS WAS
CONCEPTUALIZED BY TWO OF THE
FOUNDERS
OF INDUSTRIAL/ORGANIZATIONAL
PSYCHOLOGY, FREDERICK
TAYLOR AND LILLIAN MOLLER
GILBRETH IN THE EARLY 20TH
CENTURY.

JOB ANALYSES PROVIDE
INFORMATION TO ORGANIZATIONS
WHICH HELPS TO DETERMINE
WHICH EMPLOYEES ARE BEST FIT
FOR SPECIFIC JOBS.
THROUGH JOB ANALYSIS, THE
ANALYST NEEDS TO UNDERSTAND
WHAT THE IMPORTANT TASKS OF
THE JOB ARE, HOW THEY ARE
CARRIED OUT, AND THE
NECESSARY HUMAN QUALITIES
NEEDED TO COMPLETE THE JOB
SUCCESSFULLY.

A JOB DESCRIPTION IS A LIST THAT
A PERSON MIGHT USE FOR
GENERAL TASKS, OR FUNCTIONS,
AND RESPONSIBILITIES OF A
POSITION.
IT MAY OFTEN INCLUDE TO WHOM
THE POSITION REPORTS,
SPECIFICATIONS SUCH AS
THEQUALIFICATIONS OR SKILLS
NEEDED BY THE PERSON IN THE
JOB, OR A SALARY RANGE.

A JOB DESCRIPTION IS A LIST THAT
A PERSON MIGHT USE FOR
GENERAL TASKS, OR FUNCTIONS,
AND RESPONSIBILITIES OF A
POSITION. IT MAY OFTEN INCLUDE
TO WHOM THE POSITION REPORTS,
SPECIFICATIONS SUCH AS
THEQUALIFICATIONS OR SKILLS
NEEDED BY THE
PERSON IN THE JOB, OR
A SALARY RANGE.

JOB DESCRIPTIONS ARE
USUALLY NARRATIVE, BUT SOME
MAY INSTEAD COMPRISE A
SIMPLE LIST OF COMPETENCIES;
FOR INSTANCE, STRATEGIC
HUMAN RESOURCE
PLANNING METHODOLOGIES MAY
BE USED TO DEVELOP
A COMPETENCY
ARCHITECTURE FOR AN
ORGANIZATION, FROM WHICH
JOB DESCRIPTIONS ARE BUILT AS
A SHORTLIST OF COMPETENCIES.

JOB DESCRIPTIONS ARE USUALLY
NARRATIVE, BUT SOME MAY
INSTEAD COMPRISE A SIMPLE
LIST OF COMPETENCIES; FOR
INSTANCE, STRATEGIC HUMAN
RESOURCE
PLANNING METHODOLOGIES MAY
BE USED TO DEVELOP
A COMPETENCY
ARCHITECTURE FOR AN
ORGANIZATION, FROM WHICH
JOB DESCRIPTIONS ARE BUILT AS
A SHORTLIST OF COMPETENCIES.

AN INCENTIVE PROGRAM IS A
FORMAL SCHEME USED TO
PROMOTE OR ENCOURAGE
SPECIFIC ACTIONS OR BEHAVIOR
BY A SPECIFIC GROUP OF PEOPLE
DURING A DEFINED PERIOD OF
TIME.

INCENTIVE PROGRAMS ARE
PARTICULARLY USED
IN BUSINESS MANAGEMENT TO
MOTIVATE EMPLOYEES, AND IN
SALES TO ATTRACT AND RETAIN
CUSTOMERS. SCIENTIFIC
LITERATURE ALSO REFERS TO
THIS CONCEPT AS PAY FOR
PERFORMANCE.

MONETARY INCENTIVES
INCENTIVES, WHICH ARE DIRECTLY
OR INDIRECTLY ASSOCIATED WITH
MONETARY BENEFITS, ARE CALLED
MONETARY INCENTIVES.

THEY ARE ALSO KNOWN AS
FINANCIAL INCENTIVES.
MONETARY INCENTIVES
FULFILL NOT ONLY
PHYSIOLOGICAL NEEDS BUT
ALSO THE NEED FOR SOCIAL
STATUS AND POWER, E.G.-
WAGES AND SALARIES, BONUS
PROFIT-SHARING, LEAVE WITH
PAY, MEDICAL
REIMBURSEMENT, HOUSING
FACILITY, PENSION ETC.

MONETARY INCENTIVES ARE
FINANCIAL BENEFITS PAID TO
WORKMEN IN RECOGNITION OF
THEIR OUTSTANDING
PERFORMANCE.
THE PRIMARY ADVANTAGE OF
INCENTIVES IS THE INDUCEMENT
AND MOTIVATION FOR HIGHER
EFFICIENCY AND GREATER OUTPUT.
BUT WITH FIXED REMUNERATION,
IT IS DIFFICULT TO MOTIVATE
EMPLOYEES.

INCREASED EARNINGS WOULD
ENABLE THE EMPLOYEES TO
IMPROVE THEIR STANDARD OF
LIVING AND HELP THE
ORGANISATION TO IMPROVE THEIR
PRODUCTION CAPACITY.
THEY ALSO HELP IN REDUCED
SUPERVISION, BETTER
UTILIZATION OF EQUIPMENT,
REDUCED SCRAP, EDUCED LOST
TIME, REDUCED ABSENTEEISM AND
INCREASED OUTPUT.

MONETARY INCENTIVES CAN
BE CLASSIFIED INTO:
(I) DIRECT OR FINANCIAL
INCENTIVES,
(II) INDIRECT OR SEMI-
FINANCIAL INCENTIVES

INCENTIVE PLANS ARE USED TO
MOTIVATE EMPLOYEES TO INCREASE
PRODUCTION. ACCORDING TO THE
BUSINESS RESOURCE BUSINESS
TOWN, EMPLOYEES GIVEN AN
INCENTIVE PLAN TEND TO FEEL
MORE ATTACHED TO THE
COMPANY'S SUCCESS AND MAY
WORK HARDER TO HELP ACHIEVE IT.
INCENTIVES CAN COME IN MANY
FORMS. BEFORE YOU FORMULATE
YOUR MOTIVATIONAL PROGRAM, IT
WOULD HELP TO UNDERSTAND
DIFFERENT TYPES OF INCENTIVE
PLANS.

STOCK OPTIONS
A STOCK OPTION IS AN INCENTIVE
OFFERED TO EMPLOYEES THAT
WANT TO INVEST THEIR MONEY
INTO THE COMPANY STOCK BY
PURCHASING STOCK WITH PRE-TAX
MONEY.
ACCORDING TO HR GUIDE,
EMPLOYEES THAT PARTICIPATE IN A
STOCK OPTION INCENTIVE PLAN
ARE ABLE TO DEFER PAYING INCOME
TAX ON THE GAINS REALIZED BY
THEIR STOCK PURCHASES UNTIL
THE STOCK IS SOLD.

THE COMPANY ITSELF DOES NOT
GET ANY KIND OF TAX BREAK BY
OFFERING A STOCK OPTION
INCENTIVE, BUT IT DOES REAP
THE BENEFITS OF SELLING MORE
STOCK.

PROFIT SHARING
ACCORDING TO BUSINESS TOWN,
PROFIT SHARING IS ANOTHER
INCENTIVE PLAN DONE WITH
PRE-TAX DOLLARS.
THE COMPANY SETS ASIDE A
PORTION OF THEIR PRE-TAX
PROFITS AND DISTRIBUTES THAT
MONEY TO THE EMPLOYEES.

IN MOST CASES, AN EMPLOYEE
MUST QUALIFY TO RECEIVE
PROFIT SHARING BY MEETING
COMPANY PERFORMANCE
METRICS, AND BY HAVING A
PREDETERMINED AMOUNT OF
SERVICE IN WITH THE COMPANY.

SOME COMPANIES OFFER TO PLACE
THE PRE-TAX DOLLARS INTO THE
EMPLOYEES' COMPANY
RETIREMENT PLANS, SO IT CAN
ADD TO FUTURE FUND GROWTH.
COMPANIES MAY ALSO DEVELOP A
PROFIT SHARING PERCENTAGE
BASED ON THE AMOUNT OF TIME
WORKED FOR THE COMPANY, THE
POSITION HELD WITHIN THE
COMPANY OR A COMBINATION OF
BOTH CONDITIONS.

RELATED READING: EXAMPLES OF
LONG-TERM INCENTIVE PLANS
PERFORMANCE UNITS
ACCORDING TO THE SOCIETY FOR
HUMAN RESOURCE MANAGEMENT,
ONE TYPE OF INCENTIVE PLAN FOR
EXECUTIVES IS KNOWN AS THE
PERFORMANCE UNIT.
IN THE EXECUTIVE'S AGREEMENT
THERE IS A SCHEDULE OF
FINANCIAL MILESTONES THAT THE
COMPANY MUST ACHIEVE FOR THE
EXECUTIVE TO GET AWARDED A PRE-
DETERMINED AMOUNT OF UNITS.

THE AMOUNT OF A PERFORMANCE
UNIT VARIES BY COMPANY.

PERFORMANCE UNITS ARE PAID
OUT BASED ON A SCHEDULE
AGREED TO BY THE EXECUTIVE
AND THE COMPANY.
BONUS PAY
THE BONUS PAY STRUCTURE IS
COMMON IN PROFESSIONS SUCH
AS SALES, MARKETING AND
PRODUCTION.

WHEN THE EMPLOYEES REACH A
PREDETERMINED GOAL, THE
COMPANY MAY CREATE AN
INCENTIVE PLAN THAT PAYS A
BONUS FOR GOING BEYOND THAT
GOAL.
FOR EXAMPLE, IF A
MANUFACTURING PLANT HAS A
GOAL OF 100 UNITS IN A MONTH,
THE COMPANY MAY OFFER TO PAY
EACH EMPLOYEE A BONUS FOR
EACH UNIT MANUFACTURED
BEYOND 100 IN THAT MONTH.

JOB ENRICHMENT IS AN ATTEMPT
TO MOTIVATE EMPLOYEES BY GIVING
THEM THE OPPORTUNITY TO USE THE
RANGE OF THEIR ABILITIES.
IT IS AN IDEA THAT WAS DEVELOPED
BY THE
AMERICAN PSYCHOLOGIST FREDERIC
K HERZBERG IN THE 1950S.
IT CAN BE CONTRASTED TO JOB
ENLARGEMENT WHICH SIMPLY
INCREASES THE NUMBER OF TASKS
WITHOUT CHANGING THE
CHALLENGE.

AS SUCH JOB ENRICHMENT HAS
BEEN DESCRIBED AS 'VERTICAL
LOADING' OF A JOB, WHILE JOB
ENLARGEMENT IS 'HORIZONTAL
LOADING'. AN ENRICHED JOB
SHOULD IDEALLY CONTAIN:
A RANGE OF TASKS AND
CHALLENGES OF VARYING
DIFFICULTIES (PHYSICAL OR
MENTAL)
A COMPLETE UNIT OF WORK - A
MEANINGFUL TASK
FEEDBACK, ENCOURAGEMENT AND
COMMUNICATION

JOB ENRICHMENT IS DEFINED AS
A WAY TO MOTIVATE EMPLOYEES
BY GIVING THEM MORE
RESPONSIBILITIES AND VARIETY
IN THEIR JOBS.

THE IDEA WAS FIRST DEVELOPED
BY AMERICAN PSYCHOLOGIST
FREDERICK HERZBERG IN THE
1950S AND STATES THAT A WELL
ENRICHED JOB SHOULD CONTAIN
A RANGE OF TASKS AND
CHALLENGES OF VARYING
DIFFICULTIES, MEANINGFUL
TASKS, AND FEEDBACK,
ENCOURAGEMENT, AND
COMMUNICATION.

WHILE MONEY IS ONE WAY TO
MOTIVATE EMPLOYEES MORE
AND MORE WORKERS WANT TO
BE APPRECIATED FOR THE WORK
THEY DO.
ALLOWING EMPLOYEES TO HAVE
MORE CONTROL OVER THEIR
WORK TAPS INTO THEIR
NATURAL DESIRE TO SUCCEED.

JOB SATISFACTION IS HOW
CONTENT AN INDIVIDUAL IS WITH
HIS OR HER JOB.
SCHOLARS AND HUMAN RESOURCE
PROFESSIONALS GENERALLY MAKE
A DISTINCTION
BETWEEN AFFECTIVE JOB
SATISFACTION AND COGNITIVE JOB
SATISFACTION.

AFFECTIVE JOB SATISFACTION IS
THE EXTENT OF PLEASURABLE
EMOTIONAL FEELINGS
INDIVIDUALS HAVE ABOUT THEIR
JOBS OVERALL, AND IS
DIFFERENT TO COGNITIVE JOB
SATISFACTION WHICH IS THE
EXTENT OF INDIVIDUALS’
SATISFACTION WITH PARTICULAR
FACETS OF THEIR JOBS, SUCH AS
PAY, PENSION ARRANGEMENTS,
WORKING HOURS, AND
NUMEROUS OTHER ASPECTS OF
THEIR JOBS.

MORALE (ALSO KNOWN
AS ESPRIT DE CORPS(FRENCH
PRONUNCIATION: [ƐSPʀI DƏ KƆʀ]))
IS THE CAPACITY OF A GROUP'S
MEMBERS TO MAINTAIN BELIEF
IN AN INSTITUTION OR GOAL,
PARTICULARLY IN THE FACE OF
OPPOSITION OR HARDSHIP.

MORALE IS OFTEN REFERENCED BY
AUTHORITY FIGURES AS A
GENERIC VALUE JUDGMENT OF
THE WILLPOWER, OBEDIENCE,
AND SELF-DISCIPLINE OF A GROUP
TASKED WITH
PERFORMING DUTIES ASSIGNED BY
ASUPERIOR.
ACCORDING TO ALEXANDER H.
LEIGHTON, "MORALE IS THE
CAPACITY OF A GROUP OF PEOPLE
TO PULL TOGETHER PERSISTENTLY
AND CONSISTENTLY IN PURSUIT OF
A COMMON PURPOSE".

IN HUMAN
RESOURCES CONTEXT, TURNOVER
OR STAFF TURNOVER OR LABOUR
TURNOVER IS THE RATE AT WHICH
AN EMPLOYER LOSES EMPLOYEES.
SIMPLE WAYS TO DESCRIBE IT ARE
"HOW LONG EMPLOYEES TEND TO
STAY" OR "THE RATE OF TRAFFIC
THROUGH THE REVOLVING DOOR“.
TURNOVER IS MEASURED FOR
INDIVIDUAL COMPANIES AND FOR
THEIR INDUSTRY AS A WHOLE.

IF AN EMPLOYER IS SAID TO HAVE
A HIGH TURNOVER RELATIVE TO
ITS COMPETITORS, IT MEANS
THAT EMPLOYEES OF THAT
COMPANY HAVE A SHORTER
AVERAGE TENURE THAN THOSE
OF OTHER COMPANIES IN THE
SAME INDUSTRY.

HIGH TURNOVER MAY BE HARMFUL
TO A COMPANY'SPRODUCTIVITY IF
SKILLED WORKERS ARE OFTEN
LEAVING AND THE WORKER
POPULATION CONTAINS A HIGH
PERCENTAGE OF NOVICE
WORKERS.
COMPANIES ALSO OFTEN TRACK
TURNOVER INTERNALLY ACROSS
DEPARTMENTS AND DIVISIONS OR
OTHER DEMOGRAPHIC GROUPS
SUCH AS TURNOVER OF WOMEN
VERSUS TURNOVER OF MEN.

CONTEXTUAL
1) THE NATURE OF INDUSTRY .
2) MANAGERIAL AND TECHNOLOGICAL
TALENT AVAILABILITY .
3) RELIANCE OF MNC ON HOME
COUNTRY MARKETS .
4) INTERNATIONAL EXPERIENCE OF THE
FIRM
5) METHOD OF BUSINESS
DEVELOPMENT .
6) TECHNOLOGY AND THE NATURE OF
PRODUCTS .
7) ORGANIZATIONAL CULTURE .

DIFFERENCES BETWEEN
INTERNATIONAL AND
DOMESTIC HRM
1) MORE ACTIVITIES .
2) MORE EXPERTISE AND
KNOWLEDGE .
3) MORE INVOLVEMENT .
4) HANDLE WIDE NATURE OR ISSUES
AND PROBLEMS .
5) MANAGE MORE EXTERNAL
PRESSURES AND RESPONSIBLITY .

6) CHANGE IN EMPHASIS .
7) STRATEGIC AND
COORDINATION ROLE .
8) MORE RISK MANAGEMENT .
9) MORE PUBLIC RELATIONS
WORK .

IHRM PRACTICES OF HIGH
ACHIEVING FIRMS .
1) HIRING THE RIGHT PEOPLE
2) INCENTIVE PAY
3) EMPLOYEE OWNERSHIP
4) TRAINING AND SKILL
DEVELOPMENT
5) CROSS - UTILIZATION AND CROSS -
TRAINING
6) SYMBOLIC EGALITARIANISM
7) WAGE COMPRESSION

CHALLENGES TO
EFFECTIVE GLOBAL
HRM VARIATION TO
DIVERSITY

HUMAN RESOURCE MANAGEMENT
- NATURE, SCOPE, OBJECTIVES AND
FUNCTION

• HUMAN RESOURCES MAY BE
DEFINED AS THE TOTAL
KNOWLEDGE, SKILLS, CREATIVE
ABILITIES, TALENTS AND
APTITUDES OF AN
ORGANIZATION’S WORKFORCE,
AS WELL AS THE VALUES,
ATTITUDES, APPROACHES AND
BELIEFS OF THE INDIVIDUALS
INVOLVED IN THE AFFAIRS OF
THE ORGANIZATION.

• IT IS THE SUM TOTAL OR
AGGREGATE OF INHERENT
ABILITIES, ACQUIRED
KNOWLEDGE AND SKILLS
REPRESENTED BY THE TALENTS
AND APTITUDES OF THE
PERSONS EMPLOYED IN THE
ORGANIZATION.
• THE HUMAN RESOURCES ARE
MULTIDIMENSIONAL IN NATURE

• FROM THE NATIONAL POINT OF
VIEW, HUMAN RESOURCES MAY BE
DEFINED AS THE KNOWLEDGE,
SKILLS, CREATIVE ABILITIES,
TALENTS AND APTITUDES
OBTAINED IN THE POPULATION;
WHEREAS FROM THE VIEWPOINT OF
THE INDIVIDUAL ENTERPRISE, THEY
REPRESENT THE TOTAL OF THE
INHERENT ABILITIES, ACQUIRED
KNOWLEDGE AND SKILLS AS
EXEMPLIFIED IN THE TALENTS AND
APTITUDES OF ITS EMPLOYEES.

HUMAN RESOURCE
MANAGEMENT: DEFINED
• HUMAN RESOURCE
MANAGEMENT HAS COME TO BE
RECOGNIZED AS AN INHERENT
PART OF MANAGEMENT, WHICH
IS CONCERNED WITH THE
HUMAN RESOURCES OF AN
ORGANIZATION.

• ITS OBJECTIVE IS THE
MAINTENANCE OF BETTER
HUMAN RELATIONS IN THE
ORGANIZATION BY THE
DEVELOPMENT, APPLICATION
AND EVALUATION OF POLICIES,
PROCEDURES AND PROGRAMS
RELATING TO HUMAN
RESOURCES TO OPTIMIZE THEIR
CONTRIBUTION TOWARDS THE
REALIZATION OF
ORGANIZATIONAL OBJECTIVES.

• IN OTHER WORDS, HRM IS
CONCERNED WITH GETTING
BETTER RESULTS WITH THE
COLLABORATION OF PEOPLE.
• IT IS AN INTEGRAL BUT
DISTINCTIVE PART OF
MANAGEMENT, CONCERNED
WITH PEOPLE AT WORK AND
THEIR RELATIONSHIPS WITHIN
THE ENTERPRISE.

• HRM HELPS IN ATTAINING
MAXIMUM INDIVIDUAL
DEVELOPMENT, DESIRABLE
WORKING RELATIONSHIP
BETWEEN EMPLOYEES AND
EMPLOYERS, EMPLOYEES AND
EMPLOYEES, AND EFFECTIVE
MODELING OF HUMAN
RESOURCES AS CONTRASTED
WITH PHYSICAL RESOURCES.

• IT IS THE RECRUITMENT,
SELECTION, DEVELOPMENT,
UTILIZATION, COMPENSATION
AND MOTIVATION OF HUMAN
RESOURCES BY THE
ORGANIZATION.

HUMAN RESOURCE
MANAGEMENT:
EVOLUTION
• THE EARLY PART OF THE CENTURY
SAW A CONCERN FOR IMPROVED
EFFICIENCY THROUGH CAREFUL
DESIGN OF WORK.
• DURING THE MIDDLE PART OF THE
CENTURY EMPHASIS SHIFTED TO
THE EMPLOYEE’S PRODUCTIVITY.

• RECENT DECADES HAVE
FOCUSED ON INCREASED
CONCERN FOR THE QUALITY OF
WORKING LIFE, TOTAL QUALITY
MANAGEMENT AND WORKER’S
PARTICIPATION IN MANAGEMENT.
• THESE THREE PHASES MAY BE
TERMED AS WELFARE,
DEVELOPMENT AND
EMPOWERMENT.

HUMAN RESOURCE
MANAGEMENT: NATURE
• HUMAN RESOURCE MANAGEMENT
IS A PROCESS OF BRINGING
PEOPLE AND ORGANIZATIONS
TOGETHER SO THAT THE GOALS OF
EACH ARE MET.
• THE VARIOUS FEATURES OF HRM
INCLUDE:
• IT IS PERVASIVE IN NATURE AS IT
IS PRESENT IN ALL ENTERPRISES.

• ITS FOCUS IS ON RESULTS
RATHER THAN ON RULES.
• IT TRIES TO HELP EMPLOYEES
DEVELOP THEIR POTENTIAL
FULLY.
• IT ENCOURAGES EMPLOYEES
TO GIVE THEIR BEST TO THE
ORGANIZATION.
• IT IS ALL ABOUT PEOPLE AT
WORK, BOTH AS INDIVIDUALS
AND GROUPS.

• IT TRIES TO PUT PEOPLE ON
ASSIGNED JOBS IN ORDER TO
PRODUCE GOOD RESULTS.
• IT HELPS AN ORGANIZATION
MEET ITS GOALS IN THE FUTURE
BY PROVIDING FOR COMPETENT
AND WELL-MOTIVATED
EMPLOYEES.
• IT TRIES TO BUILD AND MAINTAIN
CORDIAL RELATIONS BETWEEN
PEOPLE WORKING AT VARIOUS
LEVELS IN THE ORGANIZATION.

• IT IS A MULTIDISCIPLINARY
ACTIVITY, UTILIZING KNOWLEDGE
AND INPUTS DRAWN FROM
PSYCHOLOGY, ECONOMICS, ETC.

HUMAN RESOURCE
MANAGEMENT: SCOPE
• THE SCOPE OF HRM IS VERY WIDE:
1. PERSONNEL ASPECT-THIS IS
CONCERNED WITH MANPOWER
PLANNING, RECRUITMENT,
SELECTION, PLACEMENT,
TRANSFER, PROMOTION, TRAINING
AND DEVELOPMENT, LAYOFF AND
RETRENCHMENT, REMUNERATION,
INCENTIVES, PRODUCTIVITY ETC.

• 2. WELFARE ASPECT-IT DEALS
WITH WORKING CONDITIONS
AND AMENITIES SUCH AS
CANTEENS, CRECHES, REST AND
LUNCH ROOMS, HOUSING,
TRANSPORT, MEDICAL
ASSISTANCE, EDUCATION,
HEALTHAND SAFETY,
RECREATION FACILITIES, ETC.

• 3. INDUSTRIAL RELATIONS
ASPECT-THIS COVERS UNION-
MANAGEMENT RELATIONS,
JOINT CONSULTATION,
COLLECTIVE BARGAINING,
GRIEVANCE AND DISCIPLINARY
PROCEDURES, SETTLEMENT OF
DISPUTES, ETC.

HUMAN RESOURCE
MANAGEMENT: BELIEFS
• THE HUMAN RESOURCE
MANAGEMENT PHILOSOPHY IS
BASED ON THE FOLLOWING
BELIEFS:
• HUMAN RESOURCE IS THE MOST
IMPORTANT ASSET IN THE
ORGANIZATION AND CAN BE
DEVELOPED AND INCREASED TO
AN UNLIMITED EXTENT.

• A HEALTHY CLIMATE WITH VALUES
OF OPENNESS, ENTHUSIASM,
TRUST, MUTUALITY AND
COLLABORATION IS ESSENTIAL
FOR DEVELOPING HUMAN
RESOURCE.
• HRM CAN BE PLANNED AND
MONITORED IN WAYS THAT ARE
BENEFICIAL BOTH TO THE
INDIVIDUALS AND THE
ORGANIZATION.

• EMPLOYEES FEEL COMMITTED
TO THEIR WORK AND THE
ORGANIZATION, IF THE
ORGANIZATION PERPETUATES A
FEELING OF BELONGINGNESS.
• EMPLOYEES FEEL HIGHLY
MOTIVATED IF THE
ORGANIZATION PROVIDES FOR
SATISFACTION OF THEIR BASIC
AND HIGHER LEVEL NEEDS.

• EMPLOYEE COMMITMENT IS
INCREASED WITH THE
OPPORTUNITY TO DIS¬COVER
AND USE ONE’S CAPABILITIES
AND POTENTIAL IN ONE’S WORK.
• IT IS EVERY MANAGER’S
RESPONSIBILITY TO ENSURE
THE DEVELOPMENT AND
UTILISATION OF THE
CAPABILITIES OF
SUBORDINATES.

HUMAN RESOURCE
MANAGEMENT: OBJECTIVES
• • TO HELP THE ORGANIZATION
REACH ITS GOALS.
• TO ENSURE EFFECTIVE
UTILIZATION AND MAXIMUM
DEVELOPMENT OF HUMAN
RESOURCES.
• TO ENSURE RESPECT FOR
HUMAN BEINGS. TO IDENTIFY AND
SATISFY THE NEEDS OF
INDIVIDUALS.

• TO ENSURE RECONCILIATION OF
INDIVIDUAL GOALS WITH THOSE
OF THE ORGANIZATION.
• TO ACHIEVE AND MAINTAIN HIGH
MORALE AMONG EMPLOYEES.
• TO PROVIDE THE ORGANIZATION
WITH WELL-TRAINED AND WELL-
MOTIVATED EMPLOYEES.
• TO INCREASE TO THE FULLEST
THE EMPLOYEE’S JOB
SATISFACTION AND SELF-
ACTUALIZATION.

• TO DEVELOP AND MAINTAIN A
QUALITY OF WORK LIFE.
• TO BE ETHICALLY AND SOCIALLY
RESPONSIVE TO THE NEEDS OF
SOCIETY.
• TO DEVELOP OVERALL
PERSONALITY OF EACH EMPLOYEE
IN ITS MULTIDIMENSIONAL
ASPECT.
• TO ENHANCE EMPLOYEE’S
CAPABILITIES TO PERFORM THE
PRESENT JOB.

• TO EQUIP THE EMPLOYEES WITH
PRECISION AND CLARITY IN
TRANS¬ACTION OF BUSINESS.
• TO INCULCATE THE SENSE OF TEAM
SPIRIT, TEAM WORK AND INTER-TEAM
COLLABORATION.

HUMAN RESOURCE
MANAGEMENT:
FUNCTIONS
• IN ORDER TO ACHIEVE THE ABOVE
OBJECTIVES, HUMAN RESOURCE
MANAGEMENT UNDERTAKES THE
FOLLOWING ACTIVITIES:
1. HUMAN RESOURCE OR
MANPOWER PLANNING.
2. RECRUITMENT, SELECTION AND
PLACEMENT OF PERSONNEL.

• 3. TRAINING AND DEVELOPMENT
OF EMPLOYEES.
4. APPRAISAL OF PERFORMANCE
OF EMPLOYEES.
5. TAKING CORRECTIVE STEPS
SUCH AS TRANSFER FROM ONE
JOB TO ANOTHER.
6. REMUNERATION OF
EMPLOYEES.
7. SOCIAL SECURITY AND WELFARE
OF EMPLOYEES.

• 8. SETTING GENERAL AND
SPECIFIC MANAGEMENT POLICY
FOR ORGANIZATIONAL
RELATIONSHIP.
9. COLLECTIVE BARGAINING,
CONTRACT NEGOTIATION AND
GRIEVANCE HANDLING.
10. STAFFING THE ORGANIZATION.
11. AIDING IN THE SELF-
DEVELOPMENT OF EMPLOYEES AT
ALL LEVELS.

• 12. DEVELOPING AND MAINTAINING
MOTIVATION FOR WORKERS BY
PROVIDING INCENTIVES.
13. REVIEWING AND AUDITING
MAN¬POWER MANAGEMENT IN THE
ORGANIZATION
14. POTENTIAL APPRAISAL.
FEEDBACK COUNSELING.
15. ROLE ANALYSIS FOR JOB
OCCUPANTS.
16. JOB ROTATION.
17. QUALITY CIRCLE, ORGANIZATION
DEVELOPMENT AND QUALITY OF
WORKING LIFE.

HUMAN RESOURCE
MANAGEMENT: MAJOR
INFLUENCING FACTORS
• IN THE 21ST CENTURY HRM WILL
BE INFLUENCED BY FOLLOWING
FACTORS, WHICH WILL WORK AS
VARIOUS ISSUES AFFECTING ITS
STRATEGY:
• SIZE OF THE WORKFORCE.
• RISING EMPLOYEES’
EXPECTATIONS

• • DRASTIC CHANGES IN THE
TECHNOLOGY AS WELL AS LIFE-
STYLE CHANGES.
• COMPOSITION OF WORKFORCE.
NEW SKILLS REQUIRED.
• ENVIRONMENTAL CHALLENGES.
• LEAN AND MEAN
ORGANIZATIONS.
• DOWNSIZING AND RIGHTSIZING
OF THE ORGANIZATIONS.
• CULTURE PREVAILING IN THE
ORGANIZATION ETC.

• TO CONCLUDE HUMAN RESOURCE
MANAGEMENT SHOULD BE LINKED
WITH STRATEGIC GOALS AND
OBJECTIVES IN ORDER TO
IMPROVE BUSINESS
PERFORMANCE AND DEVELOP
ORGANIZATIONAL CULTURES THAT
FOSTER INNOVATION AND
FLEXIBILITY.

• ALL THE ABOVE FUTURISTIC
VISIONS COUPLED WITH
STRATEGIC GOALS AND
OBJECTIVES SHOULD BE BASED
ON 3 H’S OF HEART, HEAD AND
HAND I.E., WE SHOULD FEEL BY
HEART, THINK BY HEAD AND
IMPLEMENT BY HAND.

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