Course Title: Human Resource Management

Course Code: HRM-333

Program: BBA

Course Instructor: Md. Yeasir Arafat Bhuiyan

PhD Fellow (BUP)
Assistant Professor
Department of Business Administration
Prime University
Contact Number: 01870204082
E-mail: arafatprimes@gmail.com

Sheet No: 01
Introduction:
 Carnegie, the great U.S industrialist, understood the potential contribution of human
resource. He said, “take away all my machines, factory buildings, money, materials
and all the resources but leave me my manpower, I shall be able to rebuild my
business empire in a few years”
 Henry Ford (a pioneer in the field of management) as "take out my building, take out
my machines and all capital but leave my men with me, I will become Henry Ford
again."
 These lines say a lot about the importance of human resources for any organization.
The human resources refer to the qualities possessed by the workforce or employees
in an organization.
 These qualities include knowledge, values, skills, abilities, cognition, beliefs,
commitment, etc., possessed by the employees, without which any organization
cannot grow or achieve their objectives. In short, the efficiency and success of any
administrative system depends upon the cooperation of the human resources.

Definition of HRM:
 Gary Dessler as “The policies and practices involved in carrying out the 'people' or
human resources aspects of a management position, including recruiting, screening,
training and appraising“
 “Management of Human Resources is that functions of all enterprises which provides
for effective utilization of people to achieve both the objectives of the enterprise and
the satisfaction and development of the employees” Glueck.
 Concern of management is resource mobilization which can be ensured through
human resources.
 Allah the almighty, has endowed human beings with power inherent in them which if
nursed, nurtured, cultivated, developed can unveil the secrets of nature.
 Human beings become human resources when their skills and abilities are developed
to undertake some productive activities which are useful to them and to their society.
 Administrative or managerial skill formation occurs through training, education, and
development of the personnel.
 Training refers to imparting of job related skills and knowledge.
 Education involves acquisition of generalized knowledge, assisting in broadcasting
the horizon of mind.
 Development implies the growth and advancement of individual talents attitude and
personality traits for a more rewarding job (Habibullah, Administrative Capital
formation, COTA bulletin, GOB)
 Managerial skill is equated by some scholars with enriching managerial ingenuity.
 We may view human resource management as human capital formation.
 Capital is the produced means of production.
 A capital asset is something which can be used as instrument of production or
distribution.
 Administrative capital formation means formation or creation of skills, knowledge,
ideas, values and desires in the people posted in administrative or managerial
positions requiring serious contemplation.
 A person develops when he is inducted into the growth process. Social conditioning is
needed for fitting him into the organization. This growth process emanates from
contact with new ideas. (Schneider B. dilemma of management )
 None of the factors like capital, natural resources and international aid is more
important in the development process than the management of an efficient pool of
manpower.
 Two third of the year to year increases in productivity of the USA is attributable to
growth in human knowledge, ideas skills and ingenuity.
 “Manpower in the economic sense is the managerial, scientific, engineering, technical
craft, and other skills which are employed In creating, designing, developing,
managing, and operating productive and service enterprises and institutions” (wert)
 Apparently if we cannot manage our human resource appropriately we can hardly
develop anything of great significance.
 Sixty percent of economic growth of the west during recent decades resulted from the
effects of education and research.(American economic review)
 A well trained and well educated workforce is an nations greatest form of capital.
 Ingredients of our human resource like inherent abilities, skills, experience,
knowledge and other attributes are party wasted due to poor personnel practices.
 The education system in Bangladesh is oriented more to the perpetuation of traditional
values and skills rather than preparing students for changes.
Functions of HRM:
Human resource management performs quite a few useful functions in order to achieve its
objectives. These functions have been categorized by Decenzo and Robins as:
Four functions of HRM.
1. Acquisition
2. Development
3. Motivation
4. Maintenance
Acquisition: It starts with HR planning. It includes the estimation of demands and supplies of
labor. Acquisition also included the recruitment, selection and socialization of employees.
1. Human resource planning
2. Recruitment
3. Employee socialization
Development: it can be viewed along three dimensions. The first is employee training, which
emphasis skill development and changing of attitudes among workers. The second is
management development which concern itself primarily with knowledge acquisition and the
enhancement of an executive’s conceptual abilities. Third is career development, which is the
continual effort to match long term individual and organizational needs.
1. Employee training
2. Management development
3. Career development
Motivation: it creates an inner urge to perform and begins with the recognition that
individuals are unique and that motivation techniques must reflect the needs of each
individual.
1. Job design
2. Performance evaluations
3. Rewards
4. Job evaluation
5. Compensation/benefits
6. Discipline
Maintenance: the final function is maintenance. In contrast to the motivation functions,
which attempts to stimulate performance, the maintenance function is concerned with
providing those working conditions that employees believe are necessary in order to maintain
their commitment to the organization.
1. Safety and Health
2. Employee/ Labor relations
These functions are the result of many changed in management thought, society and the
workers themselves.

History of HRP:
 Management of Human resource as a subject of study even thought of relatively
recent origin, the concept upon which the theory is based, dated back to 400B.C.
(Chaldeans Inventive wage plans)
 Minimum wage and incentive wage plans were in Babylonian Codes of Hammurabi
around 1800B.C
 the Chinese as early as 1650 B.C had originated the principles of Division of
Labor(specialization)
 The span of management and the related concepts of organization were well
understood by Moses around 1200 B.C
 In India Kautilya observed a sound base for systematic management of human
resource as early as 4th century B.C
 Prior to industrial revolution the status of labor was extremely low and the human
relationships between the employer and the employees were characterized by slavery,
serfdom and the guild system.
 Slavery was based on negative incentive system and serfdom was based on positive
incentive system.
 However, both these systems were replaced with the growth of manufacturing and
commercial enterprises by the guild system involving master craftsman the
journeyman, and the apprentice. Guild system marked the beginning of Human
Resource Planning for selection, training, and development of workers and emergence
of collective bargaining for wages and working condition.
 The industrial Revolution followed the new economic doctrine of laissez-faire. New
industrial organizations were characterized by the factory system which deteriorated
the employer-employee relationship due to unhealthy work environment, long
working, hours, fatigue, monotony, strain, increased likelihood of accidents, etc.
  It is observed that great thrust had been given to personnel management functions by
business expansion, labor strategies and higher wage rates during World War 1 (1917)
 The great depression of 1920-21 threw with different areas of personnel
administration.
 By 1923 the profession had reached the stage of maturity, as organizations started
giving importance to it like other core functions that is production and marketing.
HRM versus Personnel Management:

HRM is a distinctive approach and it is possible to distinguish it from traditional personnel

management in three different ways as follows:
 The first approach is by simple re-titling of personnel management, as many
companies did by renaming their personnel department as HR department.
 The second approach is by re-conceptualizing and re-organizing personnel roles in
line with the conceptual framework of Harvard Business School (1985). Subsuming
personnel and labor relation activities in four policy areas like, employee influence,
human resource flow, reward systems and work systems, differentiating HRM from
personnel Management, UK that is employee relations, employee resourcing and
employee development.
 Thus it is apparent that HRM concept categories employee relations as a separate
strategic function, which falls under the traditional personnel management function.
 The third approach designates HRM as a distinctively different and new approach for
management. This approach integrates HRP into strategic management and
emphasizes on full utilization of human resources.

Objective of HRM:
 Helping the organization reach goal.
 Developing and maintaining a quality of work life.
 Effective utilization human resources.
 Providing the organization with well-trained and well-motivated employees.
 Increasing to the fullest the employee’s job satisfactions and self-actualization.
 Communicating HR policies to all employees.
 To help maintain ethical policies and behavior.

Principles of HRM:
  Putting right man in the right place by a careful program of selection procedure and
placement to make sure that the new recruit is physically, mentally and
psychologically fit for the job to be performed.
 Training the new recruits.
 Transforming the organization into a coordinated entity.
 Ensuring employee security.
 Supplying proper equipment and promoting right conditions.
 Ensuring production and distribution of superior quality goods and services.
 Rewarding star performers.
 Providing participation in decision making and ensuring transparency in
communication.

Importance of HRM:
 Finding developing and maintaining best qualified candidates: HRM has to ensure
that the best qualified candidates are selected.
 HR is the best of all resources: HR is now regarded as the most important of all
resource of an enterprise.
 Managing changes with people: HRM must be forward thinking.

HRM Practices in Bangladesh:

 We, in Bangladesh are given higher education in colleges and universities and job
training in training centers.
 There are now over 350 training institutes in Bangladesh to develop human resources.
 It seems a revolution has started in the education sector. Qudrat E Khuda commission
stressed job-oriented education so that productive activities can be promoted.
 People are getting exposed to foreign ideas through mass media and computer
technology.
 Review of existing literature tends to show that performance of organizations in all
sectors of Bangladesh is rather poor because of lack of skilled manpower.
 Sickness of schools colleges and public universities is reflected in poor performance
in public examinations.
 Most of the public sector managers have higher degrees but their education has very
little relevance to their managerial job.
 Bangladeshi managers prefer to cling to tradition bound techniques.
 Habibullah found that managers were utilizing less than 655 of their potential work
capacity.
 Labor relation has become bitter hampering discharge of normal managerial duties.
 In Bangladesh industries management philosophy is not clearly spelled out and
understood.
 Politicization has reduced the effectiveness of union leadership in educating and
training of the workers as effective partners of the production process.
 Lack of appropriate motivation makes mangers to avoid responsibility.
 One research study discussed how human development perspective is neglected.