Organizational

Behavior
UNIT 5: HUMAN RESOURCE MANAGEMENT
Overview of Human Resource Management -
Voluntary Industrial Relations - Power, Politics and
Incentives.
Human Resource (Personnel) Management
Resources may be defined as
Means of supplying a want or a stock that can be drawn
upon.
Human Resource Management – Meaning:
Resources of a factory - 4 M
Man, Machine, Material and Money.
To organize and to manage the proper utilization of these
resources towards the objectives of an enterprise is the
main objective of Human Resource Management (HRM).
 Aim of Human Resource Management

➢ Attracting
➢ Motivating and
➢ Retaining
effective and efficient employees to develop a highly
competent and committed smoothly functioning work
force.
 Human Resource Management Contd …

Conventional Definition:
Human resource management is molding of the human
resources in such a fashion that the goals of the
organisation are met and at the same time the need and
satisfaction of all the employees at all the levels is
attained to the highest possible level.
 Human Resource Management Contd …

Contemporary (Modern) Definition 1:

Human Resource (Personnel) Management is the
planning, organizing, directing and controlling of the
procurement, development, compensation, integration,
maintenance, and separation of human resources to
the end that individual, organizational and societal
objectives are accomplished.
 Human Resource Management Contd …

Contemporary (Modern) Definition 2:

Human resource management (HRM) is the effective
management of people at work. HRM examines
what can or should be done to make working people
more productive and satisfied.
Functions of Human Resource Management

1.Planning: Determination in advance of a personnel

programme that will contribute to goals established for the
enterprise.
2.Organising: Designing the structure of relationships among
jobs, personnel and physical factors.
3.Directing: Getting people to work willingly and effectively.
4.Controlling: Regulating activities in accordance with the
personnel plan formulated on the basis of fundamental
organizational goals.
 Role of Human Resource Management

1. HR Planning:
A. Job analysis, evaluation and rating
B. Human resource inventory, accounting and audit
C. Demand and supply forecasting
 Role of Human Resource Management Contd…

2. Procurement / Acquisition / Employment / Hiring

(Recruitment and Selection):

A. Relevant hiring qualifications

B. Preferred sources for recruitment

C. Choosing appropriate selection tools / methods

D. Ensuring ‘Best Fit’ between jobs and candidates

Role of Human Resource Management Contd…

3. Development (Skill enhancement for appropriate Work

Performance):
A. Bases / Competencies for employees’ career
progression
B. Decision on appropriate mix of ‘On-the-Job’ and ‘Off–
the–Job’ Training
C. Delivery of non–executive and executive level training
programmes
D. Other support for employee development like
opportunity to work on ‘Cutting Edge Technology
Projects’
Role of Human Resource Management Contd…

4. Compensation (Financial and Non-Financial Rewards)

A. Appropriate compensation (Wage and Salary) structure
benchmarked to industry norms and sufficient to keep
employees motivated towards achieving organizational
goals.
B. Other reward schemes like opportunity to work on
preferred projects, bonus, leave travel allowance,
interest free loans etc.
C. Newer / Novel ways of Compensating Employees.
 Role of Human Resource Management Contd…

5. Integration(Harmony between individual and organizational

interests):
A. Designing of systems that automatically recognizes good
performers
B. Delegation of authority and responsibility with a view to
develop a sense of ownership
C. Empowerment
D. Gender issues
Role of Human Resource Management Contd…

6.Maintenance (Retention of able and willing

employees):
A. Employee services to be provided
B. Systems design to keep attrition rate below industry
norms
Role of Human Resource Management Contd…

7. Separation (Parting of ways in the most amicable

manner):
A. Ensure smooth processing of resignations,
retirements, terminations and death cases.
B. Voluntary Retirement Schemes
C. Mechanism to learn from separations, e.g. exit
interviews
 Quiz 2

1. Conventional definition of HRM? (1.5 pts)

2. Contemporary definition of HRM? (1.5 pts)
3. List and Explain the functions of HRM? (2 pts)