INTRODUCTION( CONCEPT, CHARACTERSTICS,

OBJECTIVES AND COMPONENTS OF HUMAN

RESOURCE MANAGEMENT)
 Concept of Human Resource
Management
 Human Resource management is the philosophy, process or
procedure, practices related to the management of productive human
resources in the organization.
 It is the management concept where employees are considered as the
most valuable resources and hired at their proper position to
accomplish the organizational goals.
 In this process of management, an organization initially acquires the
human resources or employees at various levels, develops their
overall skill apart from their qualification, motivates them positively in
the work environment and help organization work smoothly on
dynamic environment.
 Here, people and organization are brought together so that unity in
work done by various levels help to achieve the goals of the
organization in a effective and efficient manner.
 HRM System

 HRM system is a group of interrelated parts acting

together to meet the organizational goals through
efficiency and effectiveness of human resources of
the organization.
 Though HRM has a system consisting of Input,
Processing and Feedback associated with Human
Resources, it is itself a sub-system of an
organizational system.
 It has also a feedback mechanism and operates,
interacts with both internal and external
environment.
Cont…

 Input
 Objectives, strategies of the organization
 Plan, policies and procedures
 Organization structure
 Communication and decision making
 Environmental and social obligations
Cont…

 Processing
 Acquisition(HR planning, recruitment, selection,
employee socialization,etc)
 Development( Employee training, Management
Development, Career Development)
 Motivation(Job design, Performance evaluation
and reward, compensation, Discipline
 Maintainence ( Employee safety, employee/labour
relation, occupational health, employee retention,
etc)
Cont…

 Output
 Productivity
 Quality of work life
 Readiness of change
 Goal attainment
 Job satisfaction, etc
Characterstics of HRM

 Managing people
 Concerned with developing the employees
 Essential in all organizations
 Continuous in nature
 Pervasive
 Tool for human benefit
 Strategy focused
 Social and dynamic process
 Involvement of line managers
 An important component of management
 System based/focused
Cont…
 Managing people at work: Includes all level of employees such as
blue collared employees(ie, craftsmen, foremen, operatives,
labourers or low level workers) to white collared(ie, professional and
technical workers, managers, officials and proprietors, clerical
workers, doctors, engineers,etc), maintain the environment of
collaboration and are focused on goal achievement through active
involvement
 Concerned with developing employees: Developing skills,
potentialities and capacities to derive maximum satisfaction from
the job
 Essential in all organizations:Government organizations,
departments, NGO, industry, military organizations all require HRM
and recruitment, selection, development and best possible
utilization of Human resources
Cont…
 Continuous in nature: Since organization aims sustainable existence
with competitive environment, practice of HRM should be
continuously and not confined to one hour, one day or one week or
long gaps.
 Tool for human benefit: Offers benefits to organization and staffs
working in the organization, believes that people are not only
resources but means as well as ends. They are service provider as well
as service seekers.
 Strategy focused: HRM mobilizes human resources strategically in
order to gain competitive advantage by adopting suitable strategies
to be a head of competitors
 Social and dynamic process: Since organizations are social systems
and are committed to fulfill various social needs in dynamic
environment, HRM is social and dynamic process.
Cont…
 Pervasive: HRM is required in every levels of management. Cooperation and
coordination of top, middle and lower level employees provide a strong
foundation for efficiency and effectiveness of jobs done by the employees.
 Involvement of line managers: In recent years, HRM is not only the responsibility
of HR staff alone. Line managers also play an important role in formulating HRM
policies and practice. Such policies and practices of HRM are executed by the
active help of line managers.
 Important component of management: Being the only living resource, HRM
directs the other components of management such as financial, marketing,
information and communication, production and operation. It assists in successful
operation of other resources such as physical, informational and finance.
 System based/focused: HRM is the sub system of organizational system which
consists of processing activities such as acquisition, development, motivation and
maintenance which are required for creating synergetic effect in organizational
setting and are helpful for achieving the goals and objectives of the organization
efficiently and effectively.
Components of HRM

 Acquisition
 Human resource planning
 Recruitment and selection
 Employee socialization
 Development
 Employee training
 Management development
 Career Development
Cont…

 Utilization
 Job design
 Performance Evaluations
 Rewards
 Job evaluation
 Compensation/benefits
 Discipline
Cont…

 Maintenance
 Safety and health
 Employee/labour relation
Objectives of HRM

 Societal Objectives
 Organizational objectives
 Functional objectives
 Personal objectives
Cont…

 Societal objectives
 Legal compliance
 Benefits
 Union management relations
 Organizational objectives
 Human resource planning
 Employee relations
 Selection
 Training and development
Cont…

 Appraisal
 Placement
 Assessment
 Functional objectives
 Appraisal
 Placement
 Assessment
 Personal objectives
Cont…

 Training and development

 Appraisal
 Placement
 Compensation
 Assessment
Cont…

 In general Environment is the blend of all the components

surrounding the business organization that affect or influence its
operation and determine effectiveness.
 Environment is dynamic and changes according to time, it is also
complex and difficult to forecast.
 Human Resource Management Environment is the environment
which identifies the trend of human resources at the workplace
analyzing internal and external environmental components
affecting the operation of business or service directly or
indirectly.
 A profitable business organization of today may not be in the
same position in the future, if HR managers are unable to adapt
business operation according to the changing environment.
Cont…

 Globalization: Globalization means providing access for

buying and selling goods across nations. It can be stated as
follows:
 It means off- shoring of business from one country to
another to get advantage of low cost, low tax and skilled
manpower.
 Usually, developed countries such as US, Japan, UK ,etc are
off shoring their business to developing countries such as
India, China , Thailand Vietnam, Cambodia, Indonesia ,etc.
 This process directly or indirectly affects the HR practices
and HR policies of local organizations.
Cont…

 Globalization aims on delivering quality

goods and services at low cost by importing
raw material, technology and fixing
affordable price which helps to increase the
sales in the market.
 Only those firms can survive and get benefits
from globalization, which are able to employ
and retain qualified people.
Cont…

 Technological advances: Technology refers to

the process of making and using tools and
equipment plus knowledge used in the
process.
 Technological advances refers to the rapid
move of changing technology in dynamic
environment for ensuring efficiency in human
resources and effectiveness in work
performance.
Cont…

 Example of technological advancement are

specific HR activities such as benefits and
administration, employee communication,
employee record keeping, reward
management and training are currently
influenced by information technology.
Cont…
 Legal trends: Government rules and regulations affect the Human
Resource practices of any country.
 HR policies and practices are affected by the constitution, labor
and union laws and other legal documents.
 For example, in a country like USA, companies have relatively
more autonomy in regulating the HR practices. In the US,
employment relations are less regulated by the government
legislation than the Western European countries and developing
country like Nepal and India.
 The legal trends affect the human resources practices and
implementation which result in work efficiency and effectiveness.
 The good provision of law in recruitment and selection human
resources affect the work environment of any organization.
Cont…

 Work force diversity: Diversity is the differences that is

realized as a result of differences among people.
 Work force diversity is the blend of human resources from
various background in the work environment of the
organization
 The diversity in terms of age, gender, values and culture
impact the performance in the organizational environment.
 The organization which succeeds in management of human
resources properly on the basis of these diversities will be able
to achieve it’s objectives by efficiency and effectiveness.
 On contrary, those which fail in the management of diversities
among the employees show poor performance.
Cont…

 New concerns: The new concerns have brought

challenges in human resource management
today which can be enlisted as follows:
 Management of work teams
 Virtual employees
 Total quality management
 Reengineering
 Out sourcing
 Equality and inclusiveness
CONTEMPORARY HR ISSUES, CHALLENGES

 To accept globalization
 To work in complex environment of
organization
 To adapt as per technological change
 To address changing work force
 To adopt new concerns
 To cope with change management in the
organization
 To adopt flexible work shedule
Cont…

 To accept globalization: Globalization is the

process by which transactions of business
organizations have been globalized across
nations. Pressure may arise for the selection of
qualified employees who can speak languages and
culture, rules and regulations to work in different
countries. Similarly under this there is also a
challenge of providing special training to develop
the manager’s skill to work in international
standards and to motivate employees to work.
Cont…

 To work in complex environment of the

organization: Management of complexity
become challenge in Human resource
management since the modern organizations’
size and activities are continuously increasing.
To adopt new technology and manage the size
and varied nature of activities it is necessary to
hire such employees who are skillful in using
new technologies, have new thoughts and
show commitment at work place.
 To adapt as per technological change: Different
technologies born in organizational working
environment. They also result in changing job
designs. So, it is necessary to make the
organization adapt such change by increasing the
skills of human resources as per the change in the
technology so that the organization can compete
in the market successfully. For example, providing
training to old age employees, mechanization and
cut off of some labour forces,etc.
Cont…
 To address changing workforce: Despite different opportunities,
there are a number of challenges from increasing diversity at work
places. Such challenges are
 The need for providing family friendly work environment to
celebrate diversity
 Arranging diversity awareness programmes that help to come
together for people of different backgrounds, culture and values.
 Increasing racial, gender and ethnic complexities at work place
 Bringing together people of different skills and backgrounds to
solve complex business problems.
 Organizaing diversity management programme through
employee training and development to minimize the effect of
cultural and demographic diversity.
 To adapt new concerns: The big challenge in
human resource management from
organizational point of view is to adapt the
new concerns such as management of work
teams, technology based employees (ie,
virtual employees), total quality management
which has also become one of the major
problem in developing country like Nepal,
equality and inclusivess,etc.
Cont..

 To cope with change management in the organization:

The employees who worked for many years in the
organization try to protest against the changes that
occurs in the organizational environment. However,
organization cannot work against changes but have to
adjust as per that to make activities run smoothly in the
organization. To manage old employees with more
experience and less resistance to change is not easy
task.This can be solved by providing training,participation
and making such employees aware about their personal
benefits and organizational benefits resulting as a result
of such changes.
Cont…

 To adopt flexible work schedule: In this plan, employees

are allowed to choose their own arrival and departure
times within specified limits fixed by organization.
Basically, the work time is divided into two ie, core time
and flex time. During the core time all employees must
be present in the office but in flex time, employees are
free to select their own starting and departure time on
the basis of their convenience. To adopt such work
schedule has also become a challenge for modern
organizations as chances of carelessness may result and
devotion towards family and friends may increase.
Responsibilities of Human Resource
Managers
 Management of strategic human resources
 Management of administration of the
organization
 Management of employees
 Becoming a change agent
Cont…

 Management of strategic human resources: As human

resources are most valuable resources of an
organization, HR department has to work as a partner
with senior and line managers such as production and
marketing managers. This helps the organization
achieve organizational strategies and objectives. HR
managers have to take the following responsibilities to
the management of human resources:
a. Define an organizational architecture
b. Conducting an organizational audit
c. Working as strategic partner
Cont…

 Management of administration of the

organization: For decades, HR managers and
professionals have been recognized as
administrators responsible for recruitment and
selection, performance evaluation, payroll
management and health and safety
environment. Since environment is changing, HR
department has to change it’s role frequently.
Indeed, administrative role is important in a
different way rather than traditionally defined.
Cont…

 Management of employees: Employees are

becoming more demanding than before. They want
more and put less effort. Due to increasing
competition, prices of products and services including
necessities, the employees work at better scale.
Engaged employees believe that they are valued by
the company and therefore, share ideas, work harder
than the necessary minimum and relate better to
customers. The main responsibility of HR manager is
to ensure employees are engaged that they feel
committed to the organization and contribute fully.
Cont…

 Becoming a change agent: Nowadays, it is believed

that the primary difference between winners and
losers in business will be the ability to respond to the
pace of change. HR professionals have greater role
to work accepting the change. They can play role on
creating high performance teams, reducing cycle
time for innovation, or deploying new technology
timely. HR professional can work to make broad
vision statements, ask employees to work for the
vision and can take suggestions from the employees
on how to work to achieve it.
Contemporary HR issues and
challenges(Source:Asmita PUB
 Outsourcing HR activities
 Balancing work life and family life
 Making HR activities ethical
 Changes in employee expectations
 Problems created by BPO and CCs
 Partnership relationship with unions
 Corporate reorganizations
 Technology and self service HR
 Loss of joy and pleasure
 Changing Qualities of HR professionals
Cont…

 Outsourcing HR activities: Outsourcing offers competitive

advantage, helps to reduce costs, bring efficiency and
improve flexibility. It allows hiring specialized expertise from
outside which is also called sub-contracting.
 Balancing work life and family life: This issue arises
especially at work place if both husband and wife are
employed. This has become critical issue for both
employees as well as managers of HR department. The
numbers of women employee are expected to increase
throughout the world every year. To reduce the level of
stress, anxiety and depression (among employees) HR
managers need to introduce work life balance programmes.
Cont…

 Making HR activities ethical: There is another

major problem facing modern HR managers.
As we know that when players donot play well
the goal keeper will be in pressure. Similarly,
when top management does not implement
good corporate governance, HR department
will be in pressure. This is an opportunity as
well as challenge to the HR department.
 Change in employee expectation: