HUMAN RESOURCE

MANAGEMENT
Module: 1
Why study HRM?
 “You can get capital and erect
buildings but it takes people to build a
business”
 Meaning & Definition

• Human resource management is the planning, organizing, directing, and

controlling of the procurement, development, compensation, integration,
maintenance and separation of human resource to the end that individual,
organizational and social objectives are accomplished.
 Nature of HRM
• When individuals come to work place, they come
with not only technical skills, knowledge etc. but
also with their personal feelings, perception,
desires, motives, attitude, values etc.
• Thus HRM does not mean management of only
technical skills but also other factors of human
resource.
 Scope of HRM
• The scope of HRM is indeed vast.
• All major activities in the working life of a worker
– from the time of his/her entry into a organization until he or she
leaves come under the preview of HRM
• Activities include like
– HRP, job analysis & design, recruitment & selection, orientation & placement,
training & development, performance appraisal & job evaluation, employee &
executive remuneration, motivation & communication, welfare, safety and health
and Industrial relations
 Nature & scope of HRD
• For many people HRD and HRM convey the
same meaning
• This may not be true.
• HRD is function more concerned with training
and development, career planning and
development, and organization development.
• HRD is therefore a part of HRM
 Difference between HRM and PM
• Personnel Management
– Management of people
– PM is treated as an economic man
– Employee is viewed as a
commodity
– Employees are treated as cost
centers
– Employees are used for
organizational benefit
– Personnel function is treated as
only an auxiliary
• Human Resource Management
– HRM is the management of
employees skills, knowledge,
abilities, talents etc
– Employee are also treated as social
and psychological man
– Employee is treated as resource
– Employees are treated as profit
centers
– Are used for mutual benefit of
organization and employees
– HRM is treated as strategic
management function
 HRM Functions
• The functions of HRM can be classified into two
categories
– Managerial functions
– Operative functions
 Managerial Functions
• Planning
• Organizing
• Directing
• Controlling
 Operative Functions
• Employment
– Job Analysis, Human Resource Planning, Recruitment,
Selection, Placement, Induction & Orientation
• Human Resource Development
– Performance appraisal, Training, Management Development,
Career planning and development, Organization development.
• Compensation
– Job evaluation, Wage and salary administration, Incentives,
Bonus, Fringe benefits.
 Operative Functions
• Human Relations
• Effectiveness of HRM
– Organizational health
– Human resource accounting
 Objectives of HRM
• Societal objectives:
– To be ethically and socially responsible to the needs
and challenges of the society while minimizing the
negative impact of such demands.
• Organizational Objectives:
– To recognize the role of HRM in bringing about
organizational effectiveness.
 Objectives of HRM
• Functional Objectives:
– To maintain the department’s contribution at a level
appropriate to the organization’s needs.
• Personal Objectives:
– To assist employees in achieving their personal goals,
at least insofar as these goals enhance the individual’s
contribution to the organization.
 HRM Policies, Procedures and
Programmes
• Policy
– A policy is a plan of action.
• Procedures
– Policies are general instructions where as procedures
are specific applications. It prescribes the specific
manner in which a piece of work is to be done.
 HRM Policies, Procedures and
Programmes
• Programmes are complex set of goals, policies,
procedures, rules, steps to be taken, resources to
be employed, and other elements necessary to
carry out a given course of action.
 Need for HRM Policies
• Consider the favouritism and discrimination in treating
the employees.
• Minimize favouritism and discrimination in treating the
employees.
• Ensure that the action will be continued though the
managers in key jobs are changing.
• Have standard performance.
• Create and develop employee enthusiasm and loyalty.
 Advantages of HRM Policies
• Delegation
• Uniformity
• Better control
• Standards of efficiency
• Confidence
• Speedy decisions
• Coordinating devices
 Characteristic of Sound HRM Policy
• Related to objectives
• Easy to Understand
• Precise
• Stable as well as flexible
• Based on facts
• Appropriate number
• Just, fair and equitable
• Reasonable
 Factors Influencing HRM
• Technological factors
• Human resource in the country
– Change in the structure of employment
– Changes in employee roles and their values
– Level of education
• Changing demands of employers
• Legal and governmental factors
• Employee’s organization
 Factors Influencing HRM contd….
• Customers
• Social factors
• Economic factors
• Political factors
 Line & Staff Relationship
• Line relationship:
– Relationship existing between two managers due to
delegation of authority and responsibility and giving
or receiving instructions or orders is called line
relationship.
 Line & Staff Relationship
• Staff relationship:
– The staff concept is probably as old as organization itself. It is
virtually impossible to busy line managers to perform all their
functions and concentrate on all activities including
management of the people in their respective departments.
– The relationship between two managers is said to be a staff
relation when it is created due to giving and taking advice,
guidance, information, help or assistance, counseling etc in the
process of attaining organizational goals.
 Line & Staff and HRM
• It is widely felt that “ Human resource
management is a line manager’s responsibility but
a staff function “.
• Line needs assistance in managing men.
• Human resource management is a staff function
 Challenges in HRM
• With the increase in competition, locally or globally, organizations
must become
– more adaptable
– Resilient (flexible)
– Agile (alert)
– and customer-focused to succeed.
• And within this change in environment, the HR professional has to
evolve to become a
– strategic partner, and a change mentor within the organization.
• In order to succeed, HR must be a business driven function with a
thorough understanding of the organization’s big picture and be
able to influence key decisions and policies.
1-18

Personnel Function in India; Changing

Scenario
Period Emphasis Status Roles
1920 – 30 Welfare management Clerical Welfare
Paternalistic practices administrator

1940 – 60 Expanding the role to cover Administrative Appraiser

Labour, Welfare, Industrial Advisor
Relations and Personnel Mediator
Administration Legal advisor
Fire fighting

1970 – 80 Efficiency, effectiveness Developmental Change agent

dimensions added Integrator
Emphasis on human Trainer
values, aspirations, Educator

1990s – Incremental productivity Proactive, Developer

onwards gains through human growth-oriented Counsellor
assets Coach
Mentor
Problem solver
1-19

Shifts in HR management in India

Traditional HR practice Emerging HR practice

 Administrative role  Strategic role

 Reactive  Proactive

 Separate, isolated from company  Key part of organisational mission

mission  Service focus

 Production focus  Process-based organisation
 Functional organisation  Cross-functional eams, teamwork
 Individuals encouraged, singled out most important

for praise, rewards

 People as expenses  People as key investments/assets
1-21

HRM in the new millennium

Composition of workforce
Equal pay for equal work
Breaking down of glass ceiling
Constitutional protection to minority groups
Importance to factors such as age, sex, religion, region, caste especially while dealing with
multifarious,
heterogeneous, culturally diverse work groups
 Employee expectations
Better educated, more knowledgeable, emotionally strong and demanding workforce
Demand for educated, trained, experienced and knowledgeable workers growing
Understand individual differences and develop appropriate policies to meet their growing
expectations. Cont…
1-23

HRM in the new millennium

 Changes in technology
Modernisation, computerisation, sophistication increasing by the day
Knowledge and skills need to be refined constantly
Training, retraining and mid-career counselling important
Equip employees so as to cope with dramatic challenges brought forward
by rapid advances in science and technology
  Life style changes
 Environmental challenges

Cont…
 HRM in the new
millennium
 Personnel function in future
Job redesign
Career opportunities
Productivity
Recruitment and selection
Training and development
Rewards
Safety and welfare       
1-23

HRM in the new millennium

 Changes in 21st century affecting HRM

HR as a springboard for success
Talent hunting, developing and retraining
Lean and mean organisations
Labour relations
Health and benefit programmes
 Assignment
• Role of Personnel Manager and HR manager
• Qualities of HR manager
• HR manager as a strategic partner