Organizational behavior is the study of how people respond in an organization. It can also be used as a motivational tool. The nature of organizational behavior includes sociology, social psychology, sociology, economics, political science, and anthropology. The scope is to study emotions, organizational development, management of conflict, and the impact of personality on performance.
Human Resource Management (HRM) is a strategic and pervasive function focused on effectively managing people within an organization to achieve both organizational and individual goals. Nature of HRM The nature of HRM is people-oriented and development-oriented. It is not merely an administrative function but a comprehensive, continuous, and future-focused process. It is pervasive, meaning it exists in every department and at every level of management. HRM treats people as a valuable asset and seeks to maximize their potential, encouraging high performance through motivation, skill development, and creating a positive, harmonious work environment. Scope of HRM The scope of HRM is vast and covers the entire employee lifecycle, typically segmented into three main areas: Personnel Aspect: This includes core functions like workforce planning, recruitment and selection, placement, performance appraisal, training and development, and compensation management (wages, salaries, and benefits). Employee Welfare Aspect: This focuses on working conditions and amenities, such as health, safety, medical assistance, housing, and social security. Industrial Relations Aspect: This involves maintaining healthy relationships between management and employees/unions, handling grievances, and ensuring legal compliance with labor laws.
Every business environment has a different nature and scope. External environmental factors can help or harm the organization. For example, a bottled water company in a hot climate will be more successful.
Business policy sets forth the scope of how decisions are handled in an organization. It must be specific, reliable, simple, flexible, clear, appropriate, inclusive, and stable.
Organisational behaviour is the study and application of knowledge about how people,individuals and groups act in organisations.
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