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An Introduction to Human Resource Management: Stages and
growth in HRM; the concept of HR and its Objectives; Scope and
functions of HR; Challenges in HRM; HRM in changing scenario;
Roles and Responsibilities of HR Managers and Structure of the
HRM – Meaning

Human resource management is a process of bringing

people and organizations together so that the goals of
each are met.
Human Resource Management – DEFINITION

– It is the Process of acquiring, training,

appraising and Compensating, maintaining labour
relations, health and safety, and fairness concerns.
History of HRM

The industrial revolution
• The industrial revolution began in Great Britain in the late eighteenth century and spread to America in early
nineteenth century.
• The industrial revolution gave rise to the factory system.
• The factory system:
• Greatly expanded production and created a new class of workers and managers
• Led to the shift from an agricultural based society to an industrial and manufacturing based society
• Gradually replaced the self-employed house-holds and handcraft
• Created a class of permanent wage earners
• Brought together many workers
• Brought rationalization of work and division of labour
Scientific Management
• The scientific management movement originated in America’s business and engineering schools in the late 1880s as
an effort to understand human behaviour in the workplace.
• The key representative of the scientific management movement is Fredrick Taylor who endeavored to develop
theories of work organizations, which would improve effectiveness and raise productivity.
Trade Union Movement Era:
• Collective bargaining, unfair labor practices, grievance handling, disciplinary procedures,
pay and benefits
Human Relations Movement
• Hawthorne experiments by Elton Mayo demonstrated that employee productivity was
affected not only by the way the job was designed and employee economically rewarded but
also by certain social and psychological factors. Includes supervisory training programs,
strengthen bonds between labor and management and counseling programs
Human Resources Approach
• Pet Milk theory that happy workers are productive workers or happy cows give more milk was rejected.
Workers are unique with their own needs and motivation levels. This Approach assumes that job is the
primary source of satisfaction and motivation to the employees. Emphasis on individual involvement in the
decisions were made in the organization.
• Theory Y- Most people can exercise a great deal more self-direction, self-control and creativity than are required
in their current jobs.
• Manager’s job is to use untapped human potential.
• Manager should create a healthy, safe and convenient environment.
• Manager should provide self-direction to the subordinates.
• Expanding subordinates influence Work satisfaction
HR as a Business Function
• An HR function is available in an organization, responsible for managing employee data, takes care of payroll, time and
attendance and the setting of company policies.

• The role is largely that of Personnel Administration focused on Compliance both internal & external, and on Management
of employee records.

HR as a Business Partner
• As a Business Partner, the role of HR is to meet the “existing business needs” of the organization so that the organization
could grow at a measurable rate.

• At this stage of evolution, the focus of the HR shifts to competency based Recruitment, Total Compensation, Employee
Development, Communication and Organization Design.

HR as a Strategic Partner
• Organizations that view their HR as a strategic business partner believe in full maturity of their HR function. Such
organizations are focused on attaining leadership positions rather than an year-on-year growth. Bottom-line and top-line
growth are expected to be achieved automatically.

• As a strategic partner HR uses a variety of automation tools for Learning Management, Performance Management,
Compensation Planning, Recruitment and On-boarding, Succession Planning, Alignment and Employee feedback.
Labour welfare measures in Tata steel
Objectives of HRM
Cascio identifies two objectives

• The Broad Objective

• The Broad objective of HRM is to optimise the usefulness of all workers in the

• The Special Objective

• The Special objective of HRM department is to help line managers to manage
workers effectively
Functions of HRM
Managerial Function
• Planning:
Deals with planning of manpower to overcome the future crisis
• Organising:
Grouping of HR activities, assigning different groups of activities
to different individuals and delegation of authority.
• Directing:
This involves supervising and guiding the personnel. To execute
plans, direction is essential, it also consists of motivation and
• Controlling:
It helps in measuring the employees performance, correcting negative
deviations and assuring an efficient accomplishment of plans.
Operational function
• Procurement Function: It is all about procuring and employing people
• Development Function: It is a process of improving, molding, changing
and developing the employees
• Motivation and Compensation: Inspires people to give their best to the
organization through the use of intrinsic and extrinsic
• Maintenance Function: It aims at protecting and preserving the physical
and psychological health of employees through various welfare measures
• Integration Function: Integrate the goals of an organization with
employee aspirations through various programmes
• Emerging Issues: Depends on refining HRM practices to changing
Challenges in HRM
• Challenges at Organisational level
• Integration of HR planning with corporate plan
• Motivating executives
• Wage settlements and executives salaries
• Integration of change techniques
• Maintaining a young and productive organisation
• Keeping IR from conflict to cooperation
• Developing Organisational culture
• Challenges at Workplace level and
• Adaptation of technological change
• Problem of non-performers and managerial competence development
• Management of grievances
• Emergence of socio-psychological needs
• HRM as a growing concern for managers
• Challenges at HR department level
• Process-orientation
• Concern with strategy and proactive approach
• Research orientation
• Developing HR Policies
• A Matrix Organisation
HRM in changing scenario
• It act as a Key to Competitive advantage
• It as to be linked to environmental changes
• Globalisation
• Technological change
• Increased Litigation
• Changing nature of workforce
Roles and Responsibilities of HR
• Administrative:
• Policy maker
• Administrative expert
• Advisor
• Housekeeper
• Counsellor
• Welfare officer
• Legal consultant
• Operational
• Recruiter
• Trainer developer and motivator
• Coordinator
• Mediator
• Employee Champion
• Strategic
• Change Agent
• Strategic partner