HUMAN RESOURCE MANAGEMENT

SESSION SPRING SUMMER 2010-11

STRATEGIC IMPORTANCE OF HRM

It is no more merely filing, housekeeping and record keeping function. In strategic approach people management rests with all managers who deal with people, including line managers, apart from their regular job. This function is now linked to the corporate profit margin as against shortrun approach of focusing on recruitment or compensation, labour laws, performance evaluation.

STRATEGIC IMPORTANCE OF HRM- contd.

Todays HR Manager should have knowledge of finance, marketing and production. Today crucial importance of people has been realized by the organizations and HRM has become a major player in developing strategic plans. It is no more a cost centre but has become a profit centre.

STRATEGIC IMPORTANCE OF HRM-contd.

The strategic importance of HRM means that it should: Analyse and solve problems from profit-oriented not just service-oriented. Assessing and interpreting costs or benefits of productivity, salaries, recruitment, training, overseas relocation, etc. Preparing reports on HRM solutions to problems encountered by the firm. Training the human resource staff emphasizing contribution to the firms profits.

OBJECTIVES OF HRM

The contributions HRM makes to organization include the following: Helping the organization reach its goals Employing the skills and abilities of the workforce efficiently. Providing the organization with welltrained and well-motivated employees.

OBJECTIVES OF HRM-contd.

Increasing job satisfaction and selfactualization. Developing and maintaining a quality of work life that makes employees stay. Communicating HR Policies to employees Helping in maintaining ethical policies and socially responsible behavior Managing change to the mutual advantage of employees, groups, enterprise and public.

ENVIRONMENTAL INFLUENCES EXTERNAL

Government Law and Regulations The Union Economic conditions productivity and work sectors public, private, MNCs, etc. Competitiveness Composition and Diversity of work force women, younger employees, reservations

ENVIRONMENTAL INFLUENCES EXTERNAL-contd.

Geographic location of the organization urban, rural, education, behavioural factors, legal, policitical, economic factors, Globalization Technological advances Exporting Jobs Out-sourcing Constant improvements

ENVIRONMENTAL INFLUENCES INTERNAL

Strategy Goals Organization Culture Nature of the task knowledge of IT, degree of empowerment, unpleasantness, physical location of work, time, human interaction, variety in the task, etc. Work Group team, participative, clear group goals, sufficient resources to meet goals, members gives useful suggestions. Leaders style and experience.

REFERENCE

HUMAN RESOURCE MANAGEMENT BY JOHN M. IVANCEVICH TENTH EDITION