UNIT I: Nature and Scope of Human

Resource Management

Course Instructor:
Asst. Professor Getachew Gobena
 HRM Meaning and Definition

•Human Resource Management is also a

function of management, concerned
with hiring, motivating and
maintaining people in an organization.

•It focuses on people in the organization.

•Order: HRM is placing right person from the right source,

to the right job, at the right time to perform the right job.
 Definition
 Human Resource Management is
series
a of integrated decisions that
form the employment relationship;
their quality contributes to the
ability of the organizations and the
employees to achieve their
objectives.
- Milkovich and Boudreau
 Definition
 Human Resource Management is concerned with
the people dimension in management. Since
every is made up of people,
acquiring
organizationtheir services, developing their
skills, motivating them to higher levels of
performance and ensuring that they continue to
maintain their commitment to the organization
are essential to achieving organizational
objectives. This is true regardless of the
type of organization – government,
business, education, health, recreation or
social action.
- David A. Decenzo and Stephen P. Robbins
 Definition
 Human Resource Management is
planning, organizing, directing the
controlling of the procurement,
and
development, compensation, integration,
maintenance and separation of
resources to the end that human individual,
organizational, and social objectives are
accomplished.
- Edwin B. Flippo
 Meaning & Definitions...
• HRM is the management function that deals with
recruitment, placement, training, development of
organization members.
• HRM is a process for staffing the organization and
sustaining high employee performance
• HRM be defined as all the can be defined as all the
practices , systems and procedures implemented to
attract, acquire, develop and manage human resources
to achieve the goals of an organization.
• Simply it is managing the employment Simply it is
managing the employment relationship
 HRM Meaning and Definition
 organizations does not only consist of building,
machines or inventories. It is people they manage
and staff of the organization
 HRM applies management principles in procuring,
developing, maintaining people in the organization.
 Aims at integrated decision making and decisions
on different aspects of employees are consistent
with other HR decisions
 HR Decisions must influence effectiveness of the
organization leading to better service to customer
and high quality product and services at
reasonable price.
 It is not confined to business establishment only,
HRM is applicable also to the non business
organization, like government department,
education, health care etc.
 HRM Functions and objectives
• HRM Functions
Human Resource Manager performs a number of
functions and sub functions for the achievement of
the objectives mentioned above. These functions
broadly fall under five classifications:
Employment
Wage and salary administration
Industrial relations
Organizational planning and development
Employee services
 HRM Functions
A. Employment – insuring that competent
personnel at reasonable cost fill the position
• Employment function includes sub functions such as:

1.Recruitment

2.Selection

3.Indoctrination/induction

4.Promotion

5.Transfer

6.Separation
 HRM Functions . . .
• B. Wage and Salary determinations; Ensuring that
employees are fairly and equitably compensated.

• 1. Employee classification

• 2. Rate determination

• 3. merit ratings

• 4. supplement compensation

• 5. work schedule control

 HRM Functions . . .
C. Industrial Relations; Ensuring that the working
relationships between management and employees
and the job satisfaction and work opportunities for
the organization personnel are developed and
maintained in the best interest of the organization
and its employees.
Includes:
1.Communications
2.Collective bargaining
3.Employee discipline
4.Personnel Research
 HRM Functions . . .
D. Organizational planning and development – Ensuring
that the organization is effectively organized and
capably staffed. Includes:

1. Organization Planning

2. Manpower development

3. Training
 HRM functions. . .
E. Employee services – Maintaining the general welfare
of employees on the job and assisting them with
problems related to their security and personnel well
being.
Includes;
1. Medical services
2. Recreation
3. Personnel services
4. Safety
5. Protection and security
 HRM Major Objectives
• a. Social Objectives
• Should recognize the changes in the nature of
employment contract
• Follow the social justice defined in the
constitution
• Objectives set out in the national economic plans
• Employer prerogatives according to legislation
limit
• Managerial discretion in personnel policies and
decisions
• Legal Complaints, Benefits, and Union –
Management Relations
 HRM objectives
• b. Organizational Objectives
• Organizational effectiveness by building up
employee motivation, commitment, role
effectiveness through sharing information,
regarding mutual rights, obligations, personnel
policies, procedures and practices.
• HRP, Employee Relations, Selection, T&D,
Appraisal, Placement and Assessment
 HRM objectives
c. Functional Objectives
• Initiating and formulating personnel policies
• Advising line managers
• Providing supports services such as recruitment,
selection, training and development and reward system
• Developing, collaborative and problem solving approach
• Motivating, controlling and providing feedback
d. Personal Objectives
• Assist employees in developing congruence between
individual goals and organizational objectives such as
high standard performance, satisfaction and quality of
life.
• Training and Development, Appraisal, Placement,
Compensation and Assessment
 Scope of HRM
Nature
Introduction

Prospects Procurement

HRM
Industrial
Remuneration
Relations

Maintenance Motivation
Shift towards HRD
 HRD and HR
HR can
be as Human
 termed
Resource Function or HRM Human
Resource Management

 HRD for Human Resource

Stands
Development
HRD and HR

HR is all encompassing HR includes HRD and more

HR goes far beyond the traditional Personnel function
HR is more proactive and change oriented
HR needs competencies of a different nature from
what the traditional personnel function required
 Importance of HRM
 Human Resource Management is important to all
managers despite their various functions because
of the following reasons-
 Hire the right person for the job Low attrition rate
 Ensure people do their best
 Time saved in not conducting useless interviews

Avoid legal action for any discrimination

Safety laws are not ignored

Equity towards employee in relation to salary etc.

Effective training

Avoid unfair labour practices
