INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT
What is Human Resource Management?
 Human resource (HR) management
 refers to the practices and policies one needs to carry
out to deal with the personnel aspects of the
management job
 Human resource management (HRM) is the effective
management of people at work
 The goal: make workers more satisfied and
productive
 When an organization is concerned about people, its
total philosophy, culture, and orientation reflect it
 Every manager must be concerned with people,
whether or not there is a human resources department



Scope of HRM
Importance of HRM
 attract and retain talent
 train people for challenging roles
 develop skills and competencies
 promote team spirit
 develop loyalty and commitment
 increase productivity and profits
 improve job satisfaction
 enhance standard of living
 generate employment opportunities
Good HR Practices help
Image and Quality of
HR/Personnel Manager
 Fairness and firmness

 Tact and resourcefulness

 Sympathy and consideration

 Knowledge of labor and other terms

 Broad social outlook

 Others and Academic qualifications
Functions of HRM
– Planning
– Organizing
– Directing
– Controlling
Operative Functions
P/HRM
Managerial
functions:
Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal
mobility
Development:
Training
Executive
development
Career
planning
Succession

planning
Human
resources
development
strategies
Motivation and
Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services
Maintenance:
Health
Safety
Welfare
Social security
Integration:
Grievances
Discipline
Teams and
teamwork
Collective
bargaining
Participation
Empowerment
Trade unions
Employers’
associations
Industrial
relations
Emerging
Issues:
Personnel
records
Personnel
audit
Personnel
research
HR
accounting
HRIS
Job stress
Mentoring
International
HRM
HRM as a central subsystem in an
organization
Product
Subsystem
HR Subsystem
Procurement
Training
Compensation
Appraisal
Rewards
Marketing
Subsystem
Finance
Subsystem
Technical
Subsystem
A Brief History of HRM
 HRM can be traced to England, where craftspeople
organized guilds
 They used unity to improve working conditions
 The Industrial Revolution in the 18th century laid the
basis for a new, complex industrial society
 Changing work conditions, social patterns, and labor
created a gap between workers and owners
 During the world wars era, scientific management,
welfare work, and industrial psychology merged
A Brief History of HRM
 Frederick W. Taylor, the father of scientific
management, summarized scientific management as:
 Science
 Harmony
 Cooperation
 Maximum output
 Industrial psychology, initiated in 1913, focused on:
 The worker
 Individual differences
 The maximum well being of the worker
A Brief History of HRM
 Personnel departments were created to deal with:
 Drastic changes in technology
 Organizational growth
 The rise of unions
 Government intervention
concerning working people
 Around the 1920s, more organizations
noticed and acted on employee-management conflict
A Brief History of HRM
 The Hawthorne studies (1924 to 1933):
 Were to determine the effects of
illumination on workers and their output
 Rather, it pointed out the importance of
social interaction on output and satisfaction
 Until the 1960s, the personnel function was concerned
only with blue-collar employees
 File clerk, house-keeper, social worker, firefighter, and
union trouble defuser
Evolution of the Personnel Function
Concept

What is it all about?

The Commodity
concept

Labour was regarded as a commodity to be bought and sold.
Wages were based on demand and supply. Government did
very little to protect workers.

The Factor of
Production concept
Labour is like any other factor of production, viz, money,
materials, land, etc. Workers are like machine tools.
The Goodwill concept

Welfare measures like safety, first aid, lunch room, rest room will
have a positive impact on workers’ productivity

The Paternalistic
concept/ Paternalism

Management must assume a fatherly and protective attitude
towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.

Cont…
The Humanitarian
concept

To improve productivity, physical, social and psychological
needs of workers must be met. As Mayo and others stated,
money is less a factor in determining output, than group
standards, group incentives and security. The organization is a
social system that has both economic and social dimensions.
The Human Resource
concept

Employees are the most valuable assets of an organization.
There should be a conscious effort to realize organizational goals
by satisfying needs and aspirations of employees.
The Emerging concept

Employees should be accepted as partners in the progress of a
company. They should have a feeling that the organization is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.
Evolution of the Personnel Function
Personnel Function in India;
Changing Scenario
Period Emphasis Status Roles

1920 – 30 Welfare management Clerical Welfare
Paternalistic practices administrator


1990s – Incremental productivity Proactive, Developer
onwards gains through human growth-oriented Counsellor
assets Coach
Mentor
Problem solver
1940 – 60 Expanding the role to cover Administrative Appraiser
Labour, Welfare, Industrial Advisor
Relations and Personnel Mediator
Administration Legal advisor
Fire fighting

1970 – 80 Efficiency, effectiveness Developmental
Change agent
dimensions added
Integrator
Emphasis on human
Trainer

values, aspirations,
Educator
Objectives of HRM
Objectives of the HRM Function
 HRM contributions to organizational effectiveness:
 Helping the organization reach its goals
 Employing workforce skills and abilities efficiently
 Increasing job satisfaction, self-actualization, and
quality of work life
 Communicating HRM policies to all employees
 Maintaining ethical policies and socially responsible
behavior
 Managing change to the mutual advantage of
individuals, groups, the enterprise, and the public
Objectives of the HRM Function
 Increasing employees’ job satisfaction and self-
actualization
 Employees must feel that the job is right for their
abilities and that they are being treated equitably
 Satisfied employees are not automatically more
productive
 However, unsatisfied employees tend to be absent
and quit more often and produce lower-quality work
 Both satisfied and dissatisfied employees can perform
equally in quantitative terms
Objectives of the HRM Function
 Quality of work life (QWL) is a general concept that
refers to several aspects of the job, including:
 Management and supervisory style
 Freedom and autonomy to make decisions on the job
 Satisfactory physical surroundings
 Job safety
 Satisfactory working hours
 Meaningful tasks
 The job and work environment should be structured to
meet as many workers’ needs as possible
Objectives of the HRM Function
 Communicating HRM policies to
all employees:
 HRM policies, programs, and procedures must be
communicated fully and effectively
 They must be represented to outsiders
 Top-level managers must understand what HRM can
offer
Objectives of the HRM Function
 Maintaining ethical policies and socially responsible
behavior:
 HRM managers must show by example that HRM
activities are fair, truthful, and honorable
 People must not be discriminated against
 Their basic rights must be protected
 These principles should apply to all activities in the
HRM area
Objectives of the HRM Function
 Managing increased urgency and faster cycle times:
 Firms are placing a growing emphasis on:
 Increasing customer service
 Developing new products and services
 Training and educating technicians, managers,
and decision makers
 Shorter cycle times mean less time to:
 Train, educate, and assign managers
 Recruit and select talented people
 Improve the firm’s image
 Learning provides a framework for decreasing
cycle time


HRM’s Place in Management
 The HR department must be a proactive, integral part
of management and strategic planning
 Ascertain specific organizational needs for the
use of its competence
 Evaluate the use and satisfaction among other
departments
 Educate management and employees about the
availability and use of HRM services
 HRM strategic plans must build on the firm's strengths