1 MANAGING PEOPLE Introduction to Human Resource Management MATHISHA HEWAVITHARANA Managing Human Resources MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered Marketer 14 th edition (UK), Practicing Marketer (SL), ACMA, CGMA CIMA (UK), DBF (IBSL), AIB (IBSL), Bohlander • Snell MSLIM(SL), PowerPoint Presentation by Charlie Cook Head of Branches - Siyapatha Finance PLC The University of West Alabama
Chapter Contents Summarized Chapter Contents: 1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM 2 – 2
Chapter Contents Summarized Chapter Contents: 1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM 2 – 3
Introduction to HRM What is Human Resource management (HRM): • Human : refer to the skilled workforce in the organization. • Resource : refer to limited availability or scarce. • Management : refer to maximize or proper utilization and make best use of limited and a scarce resource. Human resource management is the process of proper and maximize utilization of available limited skilled workforce. The core purpose of the human resource management is to make efficient use of existing human resource in the organization. 2 – 4
Introduction to HRM What is Human Resource management (HRM): Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM is the Managerial utilization of the Efforts, Knowledge, Capabilities & Committed Behaviors which people contribute to an Authoritatively Co-ordinated Human Enterprise as part of an Employment Exchange to carryout work, tasks in a way which enables the enterprise to continue in to the future. 2 – 5
Introduction to HRM What is Human Resource management (HRM): Human resource management (HRM), also called personnel management , consists of all the activities undertaken by an enterprise to ensure the effective utilization of employees toward the attainment of individual, group, and organizational goals. 2 – 6
Chapter Contents Summarized Chapter Contents: 1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM 2 – 7
Introduction to HRM origin of HRM: Frederick Taylor, known as the father of scientific management, played a significant role in the development of the personnel function in the early 1900s. In his book, Shop Management, Taylor advocated the "scientific" selection and training of workers. He also pioneered incentive systems that rewarded workers for meeting and/or exceeding performance standards. Although Taylor's focus primarily was on optimizing efficiency in manufacturing environments, his principles laid the ground-work for future HRM development. 2 – 8
Introduction to HRM origin of HRM: Study of Work Efficiency at the Hawthorne works of the Western Electric Company During 1924 – 1932 which realized that people are more sensitive towards the attention paid to them and the work place relationships than the work place physical conditions. This realized the importance of “People oriented Management” for the first time hence given more value for the people factor than the task. 2 – 9
Chapter Contents Summarized Chapter Contents: 1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM 2 – 10
Introduction to HRM Milestones of HRM: 1890-1910 Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive- based compensation systems to motivate employees. 1910-1930 Many companies establish departments devoted to maintaining the welfare of workers. The discipline of industrial psychology begins to develop. Industrial psychology, along with the advent of World War I, leads to advancements in employment testing and selection. 1930-1945 The interpretation of the Hawthorne Studies' begins to have an impact on management thought and practice. Greater emphasis is placed on the social and informal aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to increase their productivity. 2 – 11
Introduction to HRM Milestones of HRM: 1945-1965 In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater emphasis on collective bargaining and labor relations within personnel management. Compensation and benefits administration also increase in importance as unions negotiate paid vacations, paid holidays, and insurance coverage. 1965-1985 The Civil Rights movement in the U.S. reaches its apex with passage of the Civil Rights Act of 1964. The personnel function is dramatically affected by Title VII of the Civil Rights Act , which prohibits discrimination on the basis of race, color, sex, religion, and national origin. In the years following the passage of the CRA, equal employment opportunity and affirmative action become key human resource management responsibilities. 2 – 12
Introduction to HRM Milestones of HRM: 1985-present Three trends dramatically impact HRM. The first is the increasing diversity of the labor force, in terms of age, gender, race, and ethnicity. HRM concerns evolve from EEO and affirmative action to "managing diversity." A second trend is the globalization of business and the accompanying technological revolution. These factors have led to dramatic changes in transportation, communication, and labor markets. The third trend, which is related to the first two, is the focus on HRM as a "strategic" function. HRM concerns and concepts must be integrated into the overall strategic planning of the firm in order to cope with rapid change, intense competition, and pressure for increased efficiency. 2 – 13
Chapter Contents Summarized Chapter Contents: 1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM 2 – 14
Introduction to HRM Scope of HRM: The scope of Human Resource Management refers to all the activities that come under the area of Human Resource Management. Key Areas of HRM ; Human Resource Planning Job Analysis & Design Recruitment & Selection Orientation & Induction Training & Development Performance Appraisals Compensation & Remuneration Employee Motivation Employee Welfare Employee Health & Safety 2 – 15
Chapter Contents Summarized Chapter Contents: 1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM 2 – 16
Introduction to HRM Functions of HRM: Human Resource Planning A Process in which , an organization attempts to estimate the demand for labor and evaluate the size, nature & sources of supply which will be required to meet the demand of the organization. Job Analysis & Design The process of describing the nature of a job and specifying the human requirements, such as skills, and experience needed to perform it. The relevant jobs will be designed accordingly. 2 – 17
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