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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
effective manner.
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
changing conditions.
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
of HR.
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
company picnics.
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.
Four basic function of HRM
Staffing (getting people)
Training and development (preparing them)
Motivation(stimulating them)
Maintenance (keeping them)
HRM can be viewed in one of two ways. First, HRM is a staff, or support function for
the organization. Second, HRM is a function of every Managers job.
The Dynamic Environment of HRM
Many events have shaped the HRM field.
Work-force Diversity
Changing Skills Requirements
Corporate Rightsizing
Continuous Improvement
Decentralized work sites
Employee Involvement
HRM Areas
Employment:The main thrust of the employmentfunction is to promote the activities
of the staffing function. It is important to note that the employment specialist s roles
is not to make the hiring decision, but to coordinate the effort with line management.
TheTraining and Development section of an organization is often responsible for
helping employees to maximize their potential. More importantly the training and
development members are often better know as the organizations internal change
Compensation and Benefitsfocus on both the staffing side and the maintenance
portion of HRM. Offering a competitive wage and benefit package is a moving target.
Determining what different position on are worth to the organization is as much a
science as an art. Yet often described as the most objective area in a subjective field.
Employee Relationsdeals with maintenance function. Primary function of ensuring
opencommunicationspermeates the organization. Employee Relations Specialist
ensures helps employees understand policies and procedures.
Labor Relationsfunction is different than Employee relations in that it is concerned
with the negotiation, interpretation, and compliance with the labor contract. The
latesttrend in Labor relations isinterest based bargaining and labor management
As we move into the different areas of Human Resource Management we need to
understand that it is based on four primary functions; staffing, training and
development, motivation, and maintenance. All areas under HRM can be aligned
withone ofthese functions.
Objectives are bench marks against which actions are evaluated.
The primary objective of HRM is to ensure the availability of right people for right jobs
so as the organizational objectives are achieved.
Sub Objectives
To help the organisationto attain its goals effectively and efficiently by providing
competent and motivated employees.
Davis hasclassified the objectives of HRM into 4 categories as Societal,Organizational,
Personal,labour union objectives.
1.Societal:To be ethicallyand socially responsible to the needs and challenges of the
society while minimizing the negative impact of such demands upon the organization.
It includes:
To provide more employment opportunities
To provide maximum productivity
To provide maximum material and mental satisfaction to workforce.
To control the wastage of effort
To help maintain ethical policies and behaviourinside and outside organization.
To establish and maintain cordial relations between employeesandmanagement.
To reconcile individual and group goals withorganizationalgoals.
2.Organizational objectives:To recognize the role of HRM in bringing about
organizational effectiveness.
It includes:
To help the organization to reach its goals.
To efficiently utilize the skills and abilities of the workforce
To communicate HRM policies to every one in the organization
To develop and maintain quality of work life.
To provide well trained and well motivated employees to the organization.
Functional objectives:
To maintain the department s contribution at a level appropriate to the organization s
3.Personal Objectives:
To assist the employees in achieving their personal goals,so that they enhance the
individual s contribution to the organization.
It includes:
To provide adequate compensation to employees
To provide job security
To provide facilities for training and development
To increase employees job satisfaction
To provide conducive working environment
4.Labor Union Objectives:
It Includes:
To recognize the labor unions
To establish the personnel policies in consultation with the union
To create congenial environment with unions so as to maintain the spirit of self
discipline and cooperation with the management
To utilize the available HR effectively
To increase the employee s job satisfaction and self-actualization
To develop and maintain (QWL) which makes employmentin the organization a
desirable personal and social situation
The scope of HRM is very vast. It includesall activities starting from man power planning till
employees leave the organization. The scope consists of Acquisition, development,

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