This document entails human resource management (HRM) class notes which is a strategic approach to managing employees. and it involves the recruitment, selection, training, development, and management of employees.
HRM is the art of Procuring, developing and maintaining competent workforce
to achieve organisational goals effectively.
The process of employing people, developing their resources, utilising,
maintaining & compensating their service in tune with the job & organisational
requirements with a view to contribute to the goals of the organisation,
individual & the society.
DEFINITION
According to Wendell L French “ the human resource management refers to the
philosophy, policies, procedures, & practice related to the management of people
within an organisation.
According to Stephen P Robbins, HRM is a process consisting of the acquisition,
development, motivation & maintenance of human resources.
SCOPE OF HRM
The Scope of Human Resource management into the following aspects
1. The Personnel Aspect
This aspect of HRM is concerned with the manpower planning, recruitment,
selection, placement, induction, transfer, promotion, demotion, termination,
training & development, layoff & retrenchment, wage & salary administration,
incentives, productivity etc.
2. The Welfare Aspect:-
The welfare aspect is concerned with working conditions & amenities such as
canteens, crèches, rest rooms, lunch rooms, housing, transport, education,
medical help, health & safety, washing facilities recreation & cultural activities
etc.
3. The Industrial Aspect:-
This aspect is concerned with employees. It includes union management
relations, joint consultation, negotiating collective bargaining, grievance
handling, disciplinary actions, settlement of industrial disputes etc.
SANGEETHA . N SSCASC,
ASST. PROF. Page 1 TUMKURU.
, HRM IV SEM
BBM
IMPORTANCE OF HRM
1. Importance for the Organisation:-
HRM is important for the organisation to the following:
Good human resource practices help in attracting & retaining the best
people in the organisation.
In order to make use of latest technology the appointment of right type
of persons is essential. The right people can be fitted into new jobs
properly only if the management performs its HR function satisfactorily.
Globalisation has increased the size of the organisation who employ
thousands of employees in different countries. The performance of the
company depends upon the qualities of the people employed. This has
further increased the importance of HRM
HR planning alerts the organisation to the types of people it will need in
the short , medium & long run.
HR development is essential for meeting the challenges of future. The
importance of HRM has increased because of the shortage of really
managerial talent in the country.
2. Importance for the employees
HRM stress on the motivation of employees by providing them various
financial & non-financial incentives.
Right organisational climate is also stressed upon so that the employees can
contribute their maximum to the achievement of the organisational objectives.
Effective management of HR promotes team wok & team spirit among
employees.
It offers excellent growth opportunities to people who have the potential to rise.
It also encourages people to work with diligence & commitment.
3. Importance for the society:-
Good HR efforts lead to productivity gains (ration of output to input) to the
society, since it enables the managers to reduce costs, save scarce resources,
enhance profits & offer better pay, benefits & working conditions to employees.
SANGEETHA . N SSCASC,
ASST. PROF. Page 2 TUMKURU.
, HRM IV SEM
BBM
OBJECTIVES OF HRM
1) Societal Objectives :-
To manage human resources in an ethical & socially responsible
manner.
To ensure compliance with legal & ethical standards.
To minimise the negative impact of societal demands upon the
organisation.
2) Organisational Objective:-
HR department, like any other department in an organisation, should
focus on achieving the goals of the organisation first. If it does not meet
this purpose, the HR department cannot exist in the long run.
HR department should recognise its role in bringing about
organisational effectiveness.
HRM is not an end in itself. It is only a means to assist the organisation
with its primary objectives.
3) Functional Objectives:-
To maintain the HRM departments contribution at a level appropriate to
the organisation’s needs. Resources are wasted when HRM is either
more or less sophisticated to suit the organisation’s demands.
The department’s level of service must be tailored to fit the organisation
it serves.
HRM should employ the skills & abilities of the workforce efficiently.
It should aim at making the people’s strength more productive &
beneficial to the organisation.
HRM should aim at providing the organisation with well trained & well
motivated employees.
4) Personnel Objectives
HRM should increase employees job satisfaction to the fullest extent.
HRM should also meet the self actualisation needs of the employees. It
should stimulate every employee to achieve his potential.
HRM should assist the employees in achieving their personal goals, at
least in so far as these goals enhance the individual’s contribution to the
organisation.
HRM should develop & maintain a quality of work life. It makes
employment in the organisation a desirable, personal & social situation.
Organisational performance can never be improved without the quality
of work life.
SANGEETHA . N SSCASC,
ASST. PROF. Page 3 TUMKURU.
, HRM IV SEM
BBM
The HRM should also communicate HR policies to all employees. It
will help the HRM in tapping the ideas, opinions, feelings, & the views
of the employees.
PERSONNEL MANAGEMENT
Meaning:- it is the process of Planning, organising, compensation, integration &
maintenance o people for the purpose of contributing to organisational individual &
societal goals.
Personnel management can be defined as obtaining, using & maintaining a satisfied
workforce.
Definition:- Acc. to Flippo “ personnel management is the planning, organizing,
compensation, integration & maintenance of people for the purpose of contributing to
organisational, individual & societal goals.
Acc, to Brech “ personnel management is that part which is primarily concerned with
human resources of organisation.
DIFFERENCES BETWEEN PERSONNEL MANAGEMENT & HRM
PERSONNEL MANAGEMENT HRM
It is a traditional approach to managing It is modern approach to managing people
people in the organisation. in the organisation.
It focuses on personnel administration, It focuses on acquisition, development,
employee welfare, & labour relation. motivation & maintenance of HR in the
organisation.
It assumes people as input for achieving It assumes people as in important &
the desired output. valuable resource for achieving the
desired output.
It undertaken for employee satisfaction. It undertaken for goal achievement.
Job design is done on the basis of division Job design function is done on the basis
of labour. of group work/teamwork.
Employees are provided with less training Employees are provided with more
& development opportunities. training & development.
Decisions are made by the top Decisions are made collectively after
management as per the rules & regulation considering employee’s participation,
of the organisation authority, decentralization, competitive
environment etc.
It focuses on increased production & It focuses on effectiveness, culture,
satisfied employees productivity & employee’s participation.
It is concerned with the personnel It is concerned with all levels of managers
manager. from top to bottom.
It is a routine function. It is a strategic function.
SANGEETHA . N SSCASC,
ASST. PROF. Page 4 TUMKURU.
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