Professional Documents
Culture Documents
Unit 1
Unit 1
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ASSISTANT PROFESSOR
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INTRODUCTION
Human resource management is defined as a set of
policies, practices and programmes designed to
maximize both the personal and organizational
goals.
Acc to Flippo : HRM is the planning, organizing,
directing and controlling of the procurement,
development, compensation and maintenance of
human resource to the end that individual,
organizational and societal objectives are
achieved.
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HUMAN CAPITAL
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CONCEPT OF HRM:
It is dependent in terms of its proactive approach to managing
people in the organization.
Karen Legge states: - HR policies should be integrated with
strategic business planning & used to reinforce appropriate
culture.
HR is valuable & a source of competitive advantage.
HR can be tapped most effectively by mutually consistent
policies, which promote commitment
HRM is concerned with competing for and competing on HR.
Competing for HR involves recruiting and employing right
personnel and competing on HR involves developing, retaining
and integrating personnel to achieve competitive advantage.
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FEATURES OF HRM
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Personnel management
Personnel management is the part of management, which
is concerned with people at work and with their
relationship within an enterprise. Its aim is to bring
together and develop into an effective organization of the
men and women who make up an enterprise and have
regard for the well being of the individuals and of
working groups to enable them to make their best
contributions to its success.
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OBJECTIVES OF HRM
Ensures effective utilization of human resources.
To establish and maintain an adequate organizational
structure of relationships among all the members of
organization by dividing organization tasks into
functions, positions & job and by defining clearly
responsibility, accountability, authority for each job.
To generate maximum development of human
resources within the organization by offering
opportunities for advancement to employees through
training and education.
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FUNCTIONS OF HRM
Managerial Functions
Planning: - It is necessary to give the organization its goals and
directions to establish best procedures to reach the goals. Personnel
planning involves: -
Supply and demand forecast for each job category.
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Organizing: - Developing organization structure to carry out
various operations.
Grouping of personnel activity
individuals.
Delegation of authority according to the tasks assigned.
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Operative Functions
Tasks specifically entrusted to the personnel department.
Employment: - It involves recruitment, selection, and placement
etc of the personnel. Before these processes are performed it is
better to determine the manpower requirements both in terms of
number & quality.
Development: - Follow up of employment function. Development
is required to increase their skills in doing their jobs and in
satisfying their growth needs.
Compensation: - Concerned with the determination of adequate
and equitable remuneration in the organization for their contribution
to the organizational goals. Factors to be taken into consideration
are basic needs, requirements of jobs, legal provisions regarding
minimum wages, capacity of an organization to pay, wage level
afforded by competitors etc.
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Advisory Functions
Top Management: Advices top management in
formulation and evaluation of personnel programmes,
policies and procedures.
Departmental Heads: Offers advice on matters
pertaining to manpower planning, job analysis & design,
recruitment, selection, placement, training etc.
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ROLE OF HR MANAGER
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CORPORATE IMPORTANCE:
Motivating and retaining the required talent by effective
human resource policies such as human resource planning,
recruitment, selection, placement, orientation,
compensation and promotion etc.
b) Proper utilization of the available human resources.
c) Developing the necessary skills through training and
development, performance appraisal etc among the
employees.
d) Establish the willing co-operation of employees through
motivation and participation.
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SOCIAL IMPORTANCE:
Human Resource Management has a great importance for the
society to enhance the dignity of labor in the following ways:
a) Providing better employment that fulfills the social and
seekers.
National importance:
Effective utilization of Human Resource helps in exploitation
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COMPETITIVE CHALLENGES AND HRM
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COMPETITIVE CHALLENGES AND HRM
Ongoing studies of the most pressing competitive issues
facing firms is conducted by:
To Gauge the knowledge and skill base of foreign workforce, to figure out how
best to hire and train them.
Adjust compensation plans—receive fair and equitable pay as per the living
cost of different countries.
CHALLENGE2: EMBRACING NEW TECHNOLOGY
work environment
leadership
opportunities to contribute
Job enlargement
Job enrichment
Satisfied employees are merely happy or content with their jobs and the
status quo. For some, this might involve doing as little work as possible.
Employee satisfaction…
only deals with how happy or content employees are.
covers the basic concerns and needs of employees.
does not address employees’ level of motivation or involvement.
Employee Engagement Framework
DEVELOPMENTAL LEADERSHIP
Developmental leadership is the process of
equipping people with the knowledge, skills, and
opportunities they need to grow, develop, change,
and become more effective (Hudson, 1999).
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Personal accountability
Demonstrate personal accountability for their own behaviour, actions and
results including the policies, procedure and plans they advocate and
implement.
Trustworthiness
Build relationships based on trust, respect , character and integrity.
Employee advocacy
Develop others to assume new roles and responsibilities which is
essentially a growth and development strategy.
Employee self esteeming
Creating work climates in which employees feel good about themselves,
their experiences, skills and abilities.
Performance Partnership
Develop performance initiatives that benefits the organization and its
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10 PRINCIPLES OF DEVELOPMENTAL LEADERSHIP
PSYCHOLOGICAL CONTRACT
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PSYCHOLOGICAL CONTRACT
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PSYCHOLOGICAL CONTRACTS AT DESIGN FABRICATIONS
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For the past five years, employees of Design Fabrications have been allowed to
leave work early every Wednesday afternoon, either to attend the local football
match or to avoid the ensuing traffic jams. This arrangement has always been
‘understood’ and never written down, so that it’s become an unwritten custom.
Following a management buy-out, employees feared that the new Senior
Management Team (SMT) would rescind this arrangement, so the local branch of
the Designers’ Union requested that this traditional practice should be formally
written into the terms and conditions of employment. In the teeth of growing
competition and a downturn in the economy, SMT felt unable to make this blanket
commitment, because they felt it would reduce the company’s competitiveness.
Instead, therefore, they asked line managers to meet their teams, and explain the
reasons why this would not be a good move if jobs were to be kept reasonably
secure.
However, SMT indicated that local agreements could be made on a case-by-case
basis, depending upon how the order book was looking. Following discussions
between managers, individuals and work teams, this arrangement was accepted
throughout the company.
By acknowledging the existence of the old psychological contract and by clearly
explaining why it needed to be renegotiated, managers were able to create a new
psychological contract that was healthy, understood and observed by all parties. 61
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DIFFERENT KINDS OF CONTRACT AT WORK
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Psychological contracts are shaped by the assumptions that people make about their
relationships with each other at work. These often-untested assumptions have a
strong influence on their performance and their behaviours towards each other.
Rousseau (2004) distinguishes between transactional contracts and relational
contracts, which overlap with, and ideally complement, each other.
Transactional contracts- Transactional contracts are essentially what we know as
standard, written contracts of employment. They are usually agreed when someone
joins a particular organisation, and they contain specific clauses that cover formal
terms and conditions of service, including remuneration and other rewards
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PSYCHOLOGICAL CONTRACT
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IMPACT OF BUSINESS RESTRUCTURING ON HRM
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HR PLANNING
RECRUITMENT & SELECTION
TRAINING & DEVELOPMENT
EMPLOYEE BENEFIT PROGRAMS
COMMUNICATION
TECHNOLOGY & OUTSOURCING
DECISIONS
STUDYING LEGAL POSITIONS
STUDYING SYSTEMATIC PROBLEMS
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