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Chapter 1
Human Resource Management

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• HUMAN RESOURCE OR HUMAN RELATIO


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MANAGEMENT
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• Personnel Management is a function of


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managing people.
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• PM is also called HRM.

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• HRM is the effective use of human resources in


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to enhance organizational performance.


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• Activities an organization conducts to use its hu


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resource effectively
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• HRM proposes that people are a capital resourc


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(Human capital) and return on people is the


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measurable outcome.
 

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• Origins. - HRM-type themes, including ‘huma


capital theory’ and 'human asset accounting
be found in the literature from the 1970s.
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• The modern view of HRM gained prominenc


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1981 - introduction in the prestigious MBA c


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at Harvard Business School.


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• Simultaneously, other interpretations were b


developed in Michigan and New York

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What is HRM ?

• “HRM is the function performed in Organisations that facilit


the most effective use of people to achieve organizational a
individual goals”
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- Ivancevich & Glucck.


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§ HRM is “planning, organizing, directing and controlling of th


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procurement, development, compensation, integration,


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maintenance and reproduction of human resource to the en


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individual, organizational and societal objectives are


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accomplished,”
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- Flippo.
§ “ the management of human resources is viewed as a system
which participants seeks to attain both individual & group g
- Dale Yoder.

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Why care about HRM?


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Ø Impact on you as employees


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Ø Impact on you as managers


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Ø Potential future roles as HR professionals


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Ø Impact of HRM on organizations


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Nature of HRM
q A NATURE OF HRM – is to reflect its
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philosophy , a new outlook, approach and str


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which views an Organizations manpower


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resource and assets not as liabilities or


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hands.
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q Mechanization and IT have brought in


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humans with different attitudes and behavio


Organizations.
q HRM looks into the individual needs
motivates them to work. Human element
enterprise has paved the way for eff
management of the organization.
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Scope of HRM
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Just employment, maintenance of salary records


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enlarged to
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• Providing welfare
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• Performance Appraisal / Management


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• Human Relations
• Strategic HR
• Employee Involvement
• Industrial relation

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• It is pervasive in nature as it is present in all ente
• Its focus is on results rather than on rules.
• It tries to help employees develop their potentia
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• It encourages employees to give their best to the
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organization.
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It is all about people at work, both as individuals
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groups.
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• It tries to put people on assigned jobs in order to
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produce good results.
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• It helps an organization meet its goals in the futu
providing for competent and well-motivated em
• It tries to build and maintain cordial relations be
people working at various levels in the organizat
• It is a multi-disciplinary activity, utilizing knowled
inputs drawn from psychology, economics, etc.
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HRM People Functions Include:


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§ Performance Management
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§ Communication
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§ Training and Development


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§ Employee commitment
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§ Equal opportunity
§ Health and safety
§ Grievances/labor relations

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§ Job analysis
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§ Labour needs
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§ Recruitment
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§ Selection
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§ Orientation and training


§ Wages and salaries
§ Incentives and benefits
§
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HRM FUNCTIONS
Primary
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• Human resource planning


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• Equal employment opportunity


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• Staffing (recruitment and selection)


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• Compensation and benefits


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• Employee and labor relations


• Health, safety, and security
• Human resource development

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Secondary functions
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• Organization and job design


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• Performance management/ performance appr


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systems
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• Research and information systems


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Importance
attract and retain talent
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• train people for challenging roles


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• develop skills and competencies


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• promote team spirit


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• develop loyalty and commitment


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• increase productivity and profits


• improve job satisfaction
• enhance standard of living
• generate employment opportunities

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Functions of HRM

P/HRM
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Managerial Operativ
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functions:
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Procurement Development: Motivation and Maintenance:


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– Planning Integration:
Compensation:
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Job Analysis Training Grievances


Job design
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Health
HR planning Executive
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Work scheduling Discipline


development
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– Organising Recruitment
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Motivation Safety Teams and


Selection Career planning teamwork
Job evaluation
Placement Succession Welfare Collective
– Directing Performance and bargaining
Induction potential appraisal
planning Social security Participation
Internal Compensation
mobility Human administration Empowerment
– Controlling resources
development Incentives Trade unions
strategies benefits and
services Employers’
associations

Industrial
relations

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EVOLUTION OF HRM

The field of HRM evolved both in India and elsewhere over a nu


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years to present level of sophistication and use of proactive meth


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v The industrial revolution


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v Scientific management
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v Trade unionism
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v Human relations movement


v Human resources approach

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Objectives
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• Helping organisation to reach the goal


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• Efficiently employing the skills and abilities of the wo


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force
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• Providing Well trained and well motivated employee


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• Increasing employees’ job satisfaction and self actua


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• Achieving quality of work life


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• Communicating HRM policies to all Employees


• Maintaining Ethical policies and Socially responsible
behaviour
• Managing change
• Managing increased Urgency and Faster cycle time

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Evolution of the Personnel Functi

Concept What is it all about?


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The Commodity Labour was regarded as a commodity to be bought a


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concept were based on demand and supply. Government di


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protect workers.
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The Factor of Production Labour is like any other factor of production, viz, mo
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concept land, etc. Workers are like machine tools.


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The Goodwill concept Welfare measures like safety, first aid, lunch room, res
have a positive impact on workers’ productivity

The Paternalistic Management must assume a fatherly and protective at


concept/ Paternalism employees. Paternalism does not mean merely providin
it means satisfying various needs of the employees as
the requirements of the children.

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1-16

Evolution of the Personnel Func


The Humanitarian To improve productivity, physical, social and psycholo
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concept workers must be met. As Mayo and others stated, m


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factor in determining output, than group standards, gr


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and security. The organisation is a social system t


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economic and social dimensions.


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The Human Resource Employees are the most valuable assets of an orga
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concept should be a conscious effort to realise organisational go


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needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the


company. They should have a feeling that the organisatio
To this end, managers must offer better quality of wo
offer opportunities to people to exploit their potential f
should be on Human Resource Development.

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Principles of HRM
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• Principle of scientific selection


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Principle of employee development


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• Principle of labour management cooperatio


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• Principle of free flow of commutation


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• Principles of fair remuneration


• Principles of incentive
• Principles of dignity of labour
• Principle of participation
• Principle of team spirit
• Principle of contribution
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Shifts in HR management in In
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Traditional HR practice Emerging HR practice


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v Administrative role v
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Strategic role
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v Reactive v Proactive
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v Separate, isolated from v Key part of organisational


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company mission mission


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v Production focus v Service focus

v Functional organisation v Process-based organisati

v Individuals encouraged, v Cross-functional eams,

singled out for praise, rewards teamwork most important

v People as expenses
v People as key
investments/assets
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