Unit 1Perceptivein Human Resource Management
Human Resource Management
Human Resource Management is the process of efficiently achieving the objectives
of the organization with and through people.
It involves all management decisions and practices that directly affect or influence the
HR who works for the organizations.
It is concerned with the people s dimension in management.
It can be defined as a process of procuring, developing, motivating and maintaining
competent HR in an organization so that goals can be achieved in an efficientand
Organization is made up of 4 resources.
Men,Material, money & machinery.Only one out of them is living & others are non
It is the people who make use of non human resources.Hence people are the most
significant resources in an organization.
For any organization, proper management of human resources is very important for
its growth, survival, profitability, competitiveness, and flexibility in adapting to
Business houses are made or broken in the long run not by markets or capital,
patents or equipments, but by men. -L.F.Urwick
Organizations are made and staffed by people. Without people organizations can not
exist. Organization is nothing without human resources.
On an average 25% of production cost and 40% of selling cost constitute the HR cost
in a manufacturing organization. Thus the business success depends on how best
they bring right kind of people, develop them and maintain them.
Human resources are heterogeneous in the sense that they differ inpersonality,
emotions, values,attitudes motives etc.Theirbehaviouris unpredictable.
While other resources depreciate HR appreciate with time.Better educated, more
skilled, better aware of their interest and rights are also some distinguishing features
HRM practices canbring an important practical difference in terms of three key
organizational outcomes productivity, quality of work life, and profit.
These features makeit difficult for managers to use them in efficient and effective
Highly complex and competitive business environment makes attracting andretaining
qualifiedand competent employees very difficult and challenging for the managers.
The need of the new perspective is to have right people for right jobs.
This Mantra offers the organization a competitive edge or core competency to
survive and thrive in the competitive world.
HRM is an art of managing people at work in such a manner that they give their best
to the organization.
The Importance of HRM
Prior to the mid-60 s personnel department in organizations were perceived as the
health and happiness crew . There primary focus was either paper compliance or
The rapid change in the legal landscape, the workforce, and a emphasis on
productivity changed theHR function
Today HRM must balance two primary responsibilities: being a strategic partner with
business, and a representative of employees.