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Published by: brana456 on Oct 10, 2012
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UNIT – ILesson 1HRM – AN OVERVIEWLesson Outline
Nature of HRM
Definition of HRM
Development of HRM
Environment of HRM
Learning Objectives
After reading this lesson you should be able to
Understand the nature and scope of the HRM
Define HRM
Describe the development of HRM
Detail the environment of HRM
In all activities men and resources are involved. For a long time men or workers weretaken for granted. Greater accent was given to resources, production machinery and topmanagers. But at present in the modern large scale production of innumerable productswith a wide market, (where sky is the limit) in the last few decades the importance of human resources and their development has come to the fore. The importance of humanresources to any organization need not be over-emphasised. Human resource is the wealthof a nation and an organisation. The development process is wide and varied. In thislesson, let us understand the importance and concept of Human Resources Management.(HRM).
Human Resources
In the general parlance, human resources are people and their characteristics at work eitherat the national level or orgationsational level. Megginson has defined human resources asfollows:“From the national point of view, humanresources are knowledge, skills, creativeabilities, talents and attitudesobtained in the population; whereasfrom the viewpoint of the individual enterprisethey represent the total of the inherent abilities,acquired knowledge and skills as exemplifiedin the talents and aptitudes of its employers”Sumantra Ghosal considers human resources as human capital. He classifieshuman capital into three categories – intellectual capital, social capital and emotionalcapital. Intellectual capital consists of specialized knowledge, tacit knowledge and skills,cognitive complexity and learning capacity. Social capital is made up of network of relationships, sociability, and trustworthiness. Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability and resilience”.In simple words, HRM is a process of making the efficient and effective use of human resources so that the set goals are achieved.
Definition of HRM
According to Flippo, ‘Personnel Management, or say, human resourcesmanagement is the planning, organizing, directing and controlling of the procurement,development, compensation, integration, maintenance, and separation of human resourcesto the end, that individual, Organisational and social objectives are accomplished”.The National Institute of Personal Management (NIPM) of India has definedhuman resources – personal management as “that part of management which is concernedwith people at work and with their relationship within an enterprise. Its aim is to bringtogether and develop into an effective organization of the men and women who make upenterprise and having regard for the well – being of the individuals and of working groups,to enable them to make their best contribution to its success”.According to Decenzo and Robbins, “HRM is concerned with the peopledimension” in management. Since every organization is made up of people, acquiringtheir services, developing their skills, motivating them to higher levels of performance andensuring that they continue to maintain their commitment to the organization is essential toachieve organsational objectives. This is true, regardless of the type of organization –government, business, education, health or social action”.HRM can be defined as a process of procuring, developing and maintainingcompetent resources in the organization so that goals of an organization are achieved in aneffective and efficient manner. In other words HRM is an art of managing people at work in such a manner that they give best to the organisation.
Significance of HRM
Human resources are the most precious asset of an organization. They are theactivators of non-human resources, means for developing competitive advantages andsources of creativity. Ghoshal outlines the role of HRM in managing an organization inthe following lines.“Indian Companies have spruced up their strategic thinking; they have even moveda generation ahead with their organsations. But they still have managers who have beenshaped by old models. They are essentially a group of first generation managers whosedefinitions of roles and tasks, personal skills and competencies, ideas and beliefs aboutmanagement have been shaped by an earlier model. You cannot manage third generationstrategies with second generation organizations and first generation managers to meet theneeds of second generation organisations and third generations strategic thinking.

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