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Unit I

According to Flippo, Human Resource

Management is the planning, organizing,
directing and controlling of the
procurement, development,
compensation, integration, maintenance,
and separation of human resource to the
end that individual, organization, and
social objectives are accomplished.
Industrial relation
Scientific Management
Trade union
Human Relation Movement
Human Resource Approach
Behavioural science Era

This technique in industry for the first time
which included supervisory training
programmes, emphasizing support and
concern for workers, programmes to
strengthen the bonds work and personal and
management and counselling programme
were encouraged to discuss both work and
personal problems with trained counsellors.
However, during early 60s the pet milk
theory, (advocating that happy workers are
productive workers or happy cows give more
milk) of human resource religionist had been
largely rejects.
The Human Resource Approach assumes that
the job or the task itself is the primarily
source of satisfaction and motivation to
Most people can exercise a great more self-
direction, self-control creativity than are
required in their current jobs.
To help in achievement of organizational goals.
To Employ skills and abilities of workforce
To provide organization with well trained and
well motivated employees.
To increase employees job satisfaction and self
To develop and maintain a quality of work life.
To communication HR policies to all employees.
To be ethically and socially responsive to needs
of society.

Inclusive growth refers to the pace and
pattern of growth which are interlinked
and must be addressed together. It means
with equal opportunities.
According to Ali and Zhuang, Growth
that not only creates new economic
opportunities but also one that ensures
equal access to the opportunities created
for all segment of society.
Higher job satisfaction More satisfied with their
Lower Turnover They will not leave the
Higher Productivity - Productivity in individual
because they are motivated and know that their
work will be appreciate.
Higher Employee Morale - Employee are more
likely to be happy with their work.
Improves Creativity and Innovation.
Improved Problem Solving-Two Type of problems
are occurring:
I) Reapplying a modified solution,
II) coming up with a creative solution to fix it.
Better Employee - Having problem solving
skills,encouraging,constant growth & improvement.

Affirmative Action refers to
positive steps taken by an organization to
seek qualified employees from under
represented groups in the workforce.
There are 3 steps an affirmative action plan:
Conducting a Utilization Analysis The 1

step Workforce relation to the pool of
qualified workers in the labor force.
Establishing Goals and Time Tables The
step is setting goals and time tables for
correcting under utilization.
Determining Action Options The final step
developing an affirmative action.

Role of Human Resource Manager

Administrative Roles Operational Roles Strategic Roles
i) Policy maker i ) Recruiter
ii) Administrative expert ii) Trainer developer, motivator
iii) Advisor iii) Co coordinator/linking pin
iv) Housekeeper iv) Mediator
v) Counselor v) Employee Champion
vi) Welfare officer
vii) Legal consultant

Administrative Roles:

The administrative roles of human
resources management include policy formulation
nance,welfare administration,legal compliance,etc.,
i) Policy maker:
The human resource manager helps
management in the information of policies
governing talent acquisition and retention, wage
and salary administration, welfare activities,
personnel records, working conditions etc.,
ii) Administrative expert:
The administrative role of an HR
manager is heavily oriented to processing and
record keeping.
For ex:-
Employee files,HR related databases,
processing employee benefit claims,
answering queries regarding leave,
transport and medical facilities.
It is said that personnel
management is not a line responsibility but
a staff function.
Personnel manager
performs his functions by
advising,suggestion,counselling and
helping the line manager in discharging
their responsibilities realting to grievance
redressal,employee selection and training.
iv) Housekeeper:
The administrative roles of a personnel
manager in managing the show include
recruting,pre- employment testing , reference
checking,employee surveys,time keeping, wage and
salary administration.
The personnel manager discusses various
problems of the employees relating to

vi) Welfare Officer:
Personnel manager is expected to be
the Welfare Officer of the company. As a
Welfare Officer he provides and maintains (on
behalf of the company)canteens, hospitals,
educational, institutes, clubs, libraries,
conveyance facility, co-operative credit
societies and consumer stores.

Vii)Legal Consultant:
Personnel manager plays a role
of grievance handling, settling of disputes,
handling disciplinary cases, doing collective
bargaining, enabling the process of joint
consultation, interpretation and implementation
of various labor laws, contacting lawyers
regarding court cases, filling suits in labor courts,
industrial tribunals, civil courts and the like.

Winning the war for talent has became an
important job of HR managers in recent times in view
of the growing competition for the people possessing
require knowledge, skills, and experience.
Trainer and motivator
HR managers have to find skill deficiencies from
time to time, offer meaningful training opportunities,
and bring out the latent potential of people through
intrinsic and extrinsic rewards which are valued by
Liaison officer/linking in
The HR manager is often deputed to act as a
linking pin between various division/departments
of an organization. To develop rapport with
divisional heads, using public relation an
communication skills.
The HR manager acts as a mediator in case of
friction between two employees, groups of
employees, supervisor and subordinates and
employees and management with the sole
objectives of maintaining industrial harmony.
Employee champion
HR manager have traditionally been viewed
as company morale officers or employee
Strategic partners
Change champion
Electronic Performance Support System(EPSS)
E- Payroll
E- Self Service Human Resource
E- Time and Labour
E- Enterprise Human Resource

E-recruitment maintain profiles, searches for
and refers jobs to colleagues and the follows the
recruitment process. It uses event driven applicant
tracking and manages position on multiple external
E-training provides a complete, scalable and
open infrastructure that allows organization to
manage, deliver, and track employee training
participation in online class room based

Electronic Performance Support System(EPSS)
EPSS will provide online coaching and
mentoring services. Managers and employees can
access organization knowledge through an EPSS
E- Payroll
E-payroll models automatically collect data
regarding employee attendance and work record
for the purpose of evaluating work performance.
E- Benefits
Employee benefit programme which may
involve transpiration medical and healthcare,
insurance, pension, profit sharing, and stock option
E- Self Service Human Resource
E-Self services HR models collect process
and manage all other kinds of data and
Ex: Employee democracy profile and addresses
recruitment, selection, and training development
E- Time and Labour
E- Time and Labour automates entire and
attendance records keeping process and operations
through an automatically virtual time card.
E- Enterprise Human Resource
E- Enterprise Human Resource series
provides a comprehensive solution for managing
applicant and employee information, paying
employees, and a tracking information that is as
easy to implement and to use as it powerful.

According to Ricbell, HR policies are a
set of proposal and action that as a reference
point for managers in their dealing with
Policies are statement of the organizations
overall purpose and its objectives in the various
areas with which its operations are concerned
with personnel, finance, production, marketing
and so on.
Types of HR policies
Originated policies
Appealed policies
Imposed policies
General policies
Specific policies
Implied policies
Written policies
Originated policies
Originated policies are established by top
management deliberately so as to guide executive
thinking at various levels.
Appealed policies
Appealed policies are formulated to meet the
requirements of certain peculiar situation which
have not been covered by the earlier policies. Such
requests usually came from subordinates who fail
to handle the cases based on guidance offered by
existing policies.
Imposed policies
Imposed policies are formed under pressure
from external agencies such as government, trade
association and unions.
General policies
General policies reflect the basic philosophy
and priorities of the top management in
formulating the board plan for mapping out the
organizations growth chat.
Specified policies
Specified policies cover specific issue such as
hiring, rewarding and bargaining. Such policies,
however should be in line with the while at work

Implied policies
Implied policies are those policies which
have not been formulated by a competent authority
and have no formal sanction. Such as dress code,
gentle tone while talking customers etc.,
Written policies
Written policies are explicitly stated formal
statement of managements intention. In other
words, written policies spell out managerial
thinking on paper so that there is very little room
for loose interpretation.
Identifying Need
Gathering Information
Examining policy Alteration
Putting the policy in writing
Getting Approval
Communicating the policy
Evaluating the policy
Identifying Need
If an organization des not have an appropriate
personal organization policy. Policy are require in
various areas of personnel management such as
hiring, training, competition, industrial relation,
Gathering Information
A committee or a specialist may be assigned
the task of collecting the require information from
inside and outside the organization.
1. Past practise in the organization
2. The attitude and philosophy of the top, middle
and lower lever management.
3. The knowledge and experience gained from
handling countless problems on a day to day
Examining policy alternatives
On the basis of date collection alternatives are
appraised in terms of their contribution to
organizational objectives. It is necessary to secure
active participation of those who are to use and
live with the policies.
Putting the policy in writing
the HR department can begin the actual work
of formulating the written expressions of the
company HR policy. while written the policy,
emotional phrases should be avoided.

Getting Approval
The HR department should sent the policy
draft to the top management for its approval. It is
the top management which has the final authority
to decide whether a policy adequately represents
the organizations objectives or not.
Communicating the policy
Getting approval, the policy should be
communicated throughout the organization.
Evaluating the policy
Any serious difficult with a policy along with
suggestions should be reported to the top
management. The management to decide whether
there is a need to re- state or re-formulate the
Laws of the country
Social values and customs
Management philosophy and values
Stages of development
Financial position of the organization
Union objectives and practices
Type of workforce
According to Flamholtz, Human
Resource Accounting is the measurement of
costs and value of the people for the
According to American Association
Committee, Human Resource Accounting is
the process of identification and measuring
data about human resource, and
communicating this information to interested
Monetary measurement
Non-Monetary measurement

Monetary Measurement
Replacement Cost Method Historical Cost Method
Capitalization of salary Method Opportunity Cost Method
Return on efforts Employee
Economic Valuation Method
Reward Valuation Method
Adjusted Discounted Future
Wages Method
Historical cost Method
The actual cost incurred on recruiting, selecting.
training., placing and developing the human resource
enterprise are capitalised and written off over the
expected useful life o human resource. This method is
simple to understand and easy to work out.
Replacement Cost method
the human resource of a company are to be valued
on the assumption as to what it will cost the concern if
existing human resource are required to be replaced
with other persons of equivalent experience and talent.

In replacement cost method the cost of recruiting,
selecting, training, developing, etc., Replacement
cost is analysed of either a personnel or a position
in an organization.
Opportunity cost method
The value of an employee is based on his
opportunity cost the price other division are
willing to pay for the service of an working in
another division of an organization. Thus, the
value of an employee would be high if he has
several alternative uses for employment in the
various division of a enterprise.

Capitalization of salary method
It is also known as the present value of the
future earning model. Division of employees into
homogenous groups. The basic employees division
include their age, designation, skill and task.
Determination of average annual earnings for each
group of employees.
Economic Valuation Method
Economic Valuation Method considers the
present worth of the employees future services
expected to be derived during their stay with the a
organization as he value of firms human resource.

Return on efforts employed method
This method measures the value of the firms
human resource on the basis of efforts made by the
individual for the organization benefits.
Adjusted discounted future wages model
This model related the value of human
resource on the basis of relative efficiency of an
organization in the industry expectation.
Reward valuation method
The method seeks to measure the value of
human resource on the basis of an employees value
to an organization at various service state that he is
expected to occupy during the span of his working
life with the organization.
Non-Monetary measurement

Non-Monetary measurement
Performance Evaluation
Skills Inventory
Attitude Measurement
Assessment of Potential
Subjective Expected Utility
Skills inventory
One of the most basic technique for the evaluating a
firms human resource is the capability or skills inventory. It
may identify education, knowledge, and experience in
addition to skills.
Performance evaluation method
there are several technique to facilitate performance
1. Rating
2. Ranking
3. Simple ranking
4. Alternation ranking
5. Paired comparison

Assessment of potential
Potential assessments are designed to determine a
persons capacity for development an promotion.
Attitude Measurement
Technique for the measurement of attitude are
designed primarily to obtain information about the
tendencies of people. By means of attitude survey,
organization may assess the attitudes of people towards
their job, pay, working condition. The responses may
be scaled:
1. Strongly agree
2. Agree
3. Undecided
4. Disagree and
5. Strongly disagree

Subjective expected Utility
The concept of subjective expected utility
combines two more fundamental notions: utility
and subjective probability.
These methods involve procedures for scaling
subjective magnitudes. They include paired
comparison. Rating methods and magnitude
An Audit is an examination and verification of
accounts and records.
Human Resource Audit is an important approach
to human resource planning. It is because if
correctly conducted , it can increase the
effectiveness of the design and implementation of
human resource policies, planning, and
According to Storey and sisson, Hr audit is
concerned with the gathering, anglicising,
information, and then deciding what action need to
be improve performance.

HR Audit is a tool to measure an employers
compliance with its legal obligation in managing
its workforce and chart any correction action that
might be needed.
HR Audit is an examination of the human resource
policies, practices, and systems of a firm to
eliminate deficiencies and improve ways to
achieve goals.
Time period
The Audits may first be divided into adhoc as
against periodic audits. In most organization there
are occasional audits but the modern trend a is
towards regularly schedule audits that is periodic
1. Internal audit- company's own staff as a part of
their control activities.
2. External Audit Outsiders specifically employed
for this purpose .

1. Compliance Audit - How well the organization
is complying with the relevant laws and
2. Best practices audit In this audit an
organization compare its HR practices to those of
best practices companies.
3. Strategic Audit An organization checks
whether its HR practices are helpful in achieving
organizational strategic goals by fostering the
required employee behaviour.
4. Function specific Audit- Audits here
concentrate on one or more specific human
resource management areas, such as
compensation, training, and development.
Methods of collecting HR audit

Interviews Observation Workshop Questionnaires

Analysis of records and Workshop method Task forces Method
Secondary data method
Interviews method Interviews allow the trainer to
meet employees face-to-face to discuss impressions of
Observation method The observation is workers
performance is evaluate through first hand observation
and analysis.
Questionnaires method Questionnaires may be
used for opinions of the employee on topics like
communication, satisfaction, job characteristics,
attitude, promotion, policies etc.,

Analysis of records and secondary data method
Various secondary sources of HR development data
such as training development programme conducted,
frequency of the programme, their duration, number of
participants evaluation and feedback of training, profile
of human resource.
Workshop method The human resource
development such as performance appraisal, potential
appraisal, counselling, coaching, and mentoring
programme etc., small and large groups are conducted
in SWOT analysis.
Taskforce method A task force can be constituted to
identify, evaluate and recommend an appropriate
solution to the identified HR development issue,
problem, strategies and concern.