INTRODUCTION

y HRM is of paramount importance for the success

of any organization y HRM are the wealth of the organization which help in achieving the goals of the organization y It is the process of management which develops and manages the human element of an enterprise. It is not only the management of the skills but also the aspirations and attitudes of the human resource

DEFINITION
According to Flippo HRM is the planning, organizing, directing and controlling the procurement, development, compensation, integration and maintenance of the human resources to the end that the individual, organizational and societal objectives are accomplished In simple words it is a set of policies, practices and programmes designed to maximize both personal and organizational goals

NATURE
The nature of HRM can be highlighted in the following features y Integral part of the process of management y Comprehensive function y Pervasive function y people oriented y Based on human relations y Continuous process y Science as well as art y Interdisciplinary

NEED / IMPORTANCE
y Better industrial relations y Develop organizational commitment y Coping with changing environment y Change in political philosophy y Reduce the pressure on employees caused by the

changing technology by giving them training

FUNCTIONS OF HRM
HRM has a crucial role to play in the organization like y Identifying and developing persons y retaining suitable persons y Creating a work culture in the organization y Educating the managerial persons y Conducting research on the aspirations and expectations of the employees y Developing a communication system in the organization y Increase organizational efficiency and employee productivity

In a broad manner the functions of HRM can be classified as 1)MANAGERIAL It consists of Planning, Organizing, directing, coordinating and controlling 2) OPERATIVE It consists of Procurement, development, compensation, integration and Maintenance

OBJECTIVES
y To make the organizational people to acquire the

power to perform the different types of work that come in their way y To develop the inner hidden talent of the employees y To develop team work among the workers and an organizational culture which will help the organization to be dynamic and vibrant y To provide opportunity to the employees to grow y To develop the capabilities of the employees according to the needs of the organization

PROCESSES
Process is an identifiable flow of inter related events moving towards some goal or purpose. The HRM processes are y Staffing y Task specialization y Justice determination y Leadership y Organizational development y Collective bargaining y Compensation and rewards y Training and development y performance appraisal

SYSTEMS APPROACH TO HRM

An enterprise cannot function in isolation. It is considered as a SYSTEM The enterprise has to consider its internal and external environment. The enterprise has to receive inputs and export output to the environment. It is the task of the manager to transform various inputs into outputs. In order to carry out the operation effectively the enterprise ( SYSTEM )is divided into different departments which are known as SUBSYSTEMS

The main SUBSYSTEMS are y HR system y Production system y Finance system y Marketing system y R&D system Each of this subsystem has further subsystem .For E.g. HR subsystem can be divided into Recruitment , selection, training and development, compensation, Employee welfare services etc.

STRUCTURE OF HR DEPARTMENT
Managing director

Production

Administration Personnel Marketing Finance

employment

Personnel and behavioral records

Health & safety

Training & develop ment

Labour relations

Wages & salary

ATTRITION
Attrition rate / churn rate/ labour turnover/ employee turnover It is the rate of employees leaving the organization within a certain period It is the rate at which employer gains and loses employees An organization should always try to maintain the attrition rate low

REASONS FOR ATTRITION

y Deliberately ruining the relationship y Persistently annoying the employee y Compelling offer from competitor firm y Expectation of employee is not shaped properly y Life cycle changes of employees are not managed y Developmental needs of employees beyond the

functional needs are not met y Wrong hire- Don t hire the best but hire the right person