RVU Part 1
RVU Part 1
RESOURCE
MANAGEMENT
Part One: Introduction to Human
Resource Management
19
1.1. Nature and Scope of HRM
6. Why is HRM Important to an Organization?
The role of human resource managers has changed.
HRM jobs today require a new level of
sophistication.
Employment legislation has placed new
requirements on employers.
Jobs have become more technical and skilled.
Traditional job boundaries have become blurred
with the advent of such things as project teams and
telecommuting.
Global competition has increased demands for
productivity.
20
1.1. Nature and Scope of HRM
Why is HRM Important to an Organization?
(cont’d…)
The Strategic Nature – HRM must be
a strategic business partner and represent
employees.
forward-thinking, support the business strategy,
and assist the organization in maintaining
competitive advantage.
concerned with the total cost of its function and
for determining value added to the organization.
21
1.1. Nature and Scope of HRM
Why is HRM Important to an Organization?
(cont’d…)
HRM is the part of the organization
concerned with the “people” dimension.
HRM is both a staff, or support function that
assists line employees, and a function of
every manager‟s job.
HRM Certification
Colleges and universities offer HR programs.
22
1.1. Nature and Scope of HRM
Structure of HR
Structure of organization depend on whether
organization is small or large
In small organization there is no need to have
separate department to deals with activities relating
to people
Many small organizations even do not have
personnel managers
Outsourcing to firms specializing in managing
accounts, pensions, funds and health & care
1.2. Organizing the Human Resource Function
Issues in HR Organizations
Earlier, in personnel department employee with little knowledge and
competencies were placed
The responsibility was to arrange tours, picnics, and retirement/farewell parties
Now focus has changed, HR department has key place in overall organizations
Contrary to small-sized company, in large scale organization there is big
department heading by Manager/Director
Outsourcing or Subcontracting: Transfer activities to specialist
organizations
Reasons: restructuring, downsizing, growth in business, and decline in
business
Benefits: Cost efficiency and Access to expertise
Part One: Introduction to Human
Resource Management