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Contents
•HRM: Concept & Its Definition
•Importance of HRM
•Functions of HRM
•HRM Department: Organisation & Role
•HRM vs. HRD
•Limitations of HRM
•Challenges before HRM
1
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Human Resources…
•Are an organisation’s greatest assets
•All other resources get connected through
men
•To make them deliver they need to be –
–Properly selected
–Properly trained
–Properly motivated
2
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Definitions of HRM
•Byers & Rue: “HRM is the function facilitating the most
effective use of people to achieve both organisational
and individual goals”
•Michael Jucious: “HRM is that field of management
which deals with planning, organising & controlling the
functions of procuring, developing, maintaining and
utilising a labour force such that organisational &
individual goals are fulfilled”
3
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HRM is
•Process of acquiring, training, appraising
and compensating employees such that
they are motivated to achieve both the
organisational and individual goals
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Till now…
•HRM: Concept & Its Definition
•Importance of HRM
•Functions of HRM
•HRM Department: Organisation & Role
•HRM vs. HRD
•Limitations of HRM
•Challenges before HRM
5
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Importance of HRM
•Importance of human resources can be
discussed at four levels:
–Corporate
–Professional
–Social
–National
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Corporate
•HRM can help an enterprise in the
following ways:
–Attracting talent through effective HRP
–Developing necessary skills & attitude with
training
–Securing cooperation through motivation
–Retaining talent through the right policies
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Professional
•HRM helps improve quality of work life and
contributes to growth in the following
ways:
–Opportunities for personal development
–Motivating work environment
–Proper allocation of work
–Healthy relationships between individuals &
groups
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Social
•Society benefits from good HRM in many
ways:
–Good employment opportunities
–Development of human capital
–Generation of income & consumption
–Better lifestyles
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National
•Drivers of development of a country
•Deliver economic growth
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Till now…
•HRM: Concept & Its Definition
•Importance of HRM
•Functions of HRM
•HRM Department: Organisation & Role
•HRM vs. HRD
•Limitations of HRM
•Challenges before HRM
5
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Functions of HRM
•The process of HRM consists of 4 basic
functions:
–Acquisition of human resources
–Development of human resources
–Motivation of human resources
–Maintenance of human resources
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Acquisition Function
•Process of identifying and employing
people possessing required level of skills
–Job Analysis
–HRP
–Recruitment
–Selection
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Development Function
•Process of improving, moulding and
changing the skills, knowledge and ability
of an employee
–Employee Training
–Management Development
–Career Development
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Motivation Function
•Process of integrating people into a work
situation in a way that it encourages them
to perform / deliver to the best of their
ability
–Understanding needs
–Designing motivators
–Monitoring
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Maintenance Function
•Process of providing employees the
working conditions that help maintain their
motivation and commitment to the
organisation
–Satisfaction Levels
–Retention
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Till now…
•HRM: Concept & Its Definition
•Importance of HRM
•Functions of HRM
•HRM Department: Organisation & Role
•HRM vs. HRD
•Limitations of HRM
•Challenges before HRM
5
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Role of HR Manager
•Job Design / Job Analysis
•Human Resource Planning
•Recruitment & Selection
•Training & Development
•Performance Appraisal
•Compensation / Benefits
•Personnel Information Systems
•Employee Motivation / Assistance
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Till now…
•HRM: Concept & Its Definition
•Importance of HRM
•Functions of HRM
•HRM Department: Organisation & Role
•HRM vs. HRD
•Limitations of HRM
•Challenges before HRM
5
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HRM vs. HRD
•HRM is the process of effectively
employing people in an organisation
•HRD is the process of training &
development of employees to make them
effective
•HRD is an important subset of HRM
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Till now…
•HRM: Concept & Its Definition
•Importance of HRM
•Functions of HRM
•HRM Department: Organisation & Role
•HRM vs. HRD
•Limitations of HRM
•Challenges before HRM
5
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Limitations of HRM
•HRM only a ‘support function’!
•Training programs only a ‘cost’!
•Not an ‘as & when needed’ function!
•Not specifically qualified / trained people!
•Inadequate information systems / records!
•Misunderstood as HRD!
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Till now…
•HRM: Concept & Its Definition
•Importance of HRM
•Functions of HRM
•HRM Department: Organisation & Role
•HRM vs. HRD
•Limitations of HRM
•Challenges before HRM
5
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Challenges before HRM
•Globalization (More productivity)
•Technological Trends (New skill set)
•Increasing Service Sector (Customer
Interface)
•Working Trends (9 to 9!)
•Demographic Trends (Young India!)
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Summary (Unit – 1)
•HRM: Concept & Its Definition
•Importance of HRM
•Functions of HRM
•HRM Department: Organization & Role
•HRM vs. HRD
•Limitations of HRM
•Challenges before HRM