Elements of Human Resource Management

Prof. Rajasshrie


Organizations are not mere bricks, mortar, machineries or inventories. They are people. It is people who manage organization. People with required skills to make an organization are generally referred as human resources HRM is concerned with human beings in an organization.  

Meaning of HRM 

Human Resource Management is all about
Getting the people who can make an organization Enabling those people to acquire required capabilities to make a successful organization Motivating them to contribute their resources continuously for running the organization successfully 

Human Resource Management means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement with a view to contribute to the goals of the organization, individual and society

HRM ² Definition. 

³HRM is 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´ Edwin B. Flippo


HRM is series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objective

Evolution / Development of HRM 

HRM, a relatively new term emerged during the 1970s. Many people continue to refer to the discipline by its older and more traditional titles, such as personnel management or personnel administration. Aftermath of the second world war and country¶s political independence witnessed increased awareness and expectation of workers.  

During the 1960s, the personnel function began to expand beyond the welfare aspect, with labor welfare, IR and personnel administration integrating into the emerging profession called personnel management. In 1980 professional began to talk about technologies and more emphasis on efficiency Humanized Personnel Management is the cru of Human resource management  

Evolution of HRM in India
Period 1920 - 1930 1940 ± 1960 1970 - 1980 Development Status Beginning Struggling for recognition Emphasis Welfare, statutory, paternalism Introduction of techniques Status Clerical Administrative Managerial

Achieving Regulatory, sophistication imposition of standards on other functions Promising Human Values, productivity through people



Personnel Management 

Dale Yoder - ³Personnel Management is that phase of management which deals with the effective control and use of manpower as distinguished from other sources of power.´ M. W. Cumming - ³Personnel Management is concerned with the obtaining of the best possible staff for an organization and having got them, looking after them so that they want to stay and give their best to the jobs´ 

Human Resource Management and Personnel Management 

There is confusion in the term of HRM and PM. It should be remembered that personnel practices have attained a more crucial role as a result of the emergence of human resource philosophy. Humanized personnel management is HRM   

Human Resources consist of people, and personnel management is responsible for managing people. Therefore, there cannot be any human resource management without personnel management in it. HRM has emerged as a philosophy out of personnel function. Personnel management cannot be isolated from Human Resource Management  

Sl. No.


Personnel Management

Human Resource Management


Employment contract Rules Guide to management action Behavior referent Managerial Task Key relations Initiatives Speed of decision Managerial role Communication

Careful delineation of written contracts Importance of devising clear rules Procedures

Aim to go beyond contract Can do outlook, impatience with rule Business Need




Norms / Customs and Values and mission practices Monitoring Labor management Piecemeal Slow Transactional Indirect Nurturing Customer Integrated Fast Transformational leadership Direct

5 6 7 8 9


Sl. No. 11 12 13 14 15 16 17 18 19 20

Dimension Prized management skills Selection Pay Conditions Labour management Job categories Job design Conflict handling Training & Development Focus of attention fro interventions

Personnel Management Negotiation Separate, marginal task Job evaluation ( Fixed Grades)

Human Resource Management Facilitation Integrated, key task Performance related

Separately negotiated Harmonization Collective bargaining contracts Many Division of labour Reach temporary truce Controlled accesses to courses Personnel procedures Individual contracts Few Team work Manage climate and culture Learning companies Wide-ranging cultural, structural and personnel strategies

Sl. No. 21

Dimension Respect for employees

Personnel Management Labour is treated as a tool which is expendable and replaceable

Human Resource Management People are treated as assets to be used for the benefit of an organization, its employees and the society as a whole Mutuality of interests


Shared interests

Interests of the organization are uppermost

Objectives of HRM 

Societal Objectives
To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization For example ± the society may limit HR decision through laws that enforce reservation in hiring and laws that address discrimination, safety or other such areas of societal concern. 

Organizational Objectives
To recognize the role of HRM in bringing about organizational effectiveness 

Functional Objectives
To maintain the department¶s contribution at a level appropriate to the organization¶s need 

Personal Object
To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual¶s contribution to the organization

Functions of HR 

Societal Objectives
Legal compliance Benefits Union ± Management relations 

Organizational Objectives
Human Resource Planning Employee Relations Selection Training & Development Appraisal Placement Assessment 

Functional Objectives
Appraisal Placement Assessment 

Personal Objectives
Training & Development Appraisal Placement Compensation Assessment

Qualities of HR Manager 

Fairness and firmness He/she should be fair in matters of promotions, demotions, transfer, layoff and be firm in enforcing discipline 

Tact and resourcefulness He should be tactful in dealing with difficult situation Resourceful means he should have an open mind, objectivity and adjustability to tackle a difficult matter from different angles 

Sympathy and consideration Must have sympathetic attitude towards employee demands Must tampered with consideration for others 

Knowledge of labor and other terms
should possess sound knowledge of constitution and acts that influence labour interest 

Broad social outlook
Social responsibility of business must have social outlook and contributes towards betterment of quality of life of the other employees 

must have competence to perform activties, ready to face adverse situation in adverse situation 

Academic Qualification
Needs to be well educated with degree in HR and experienced

Role of HR Manager 

HR Manager plays major and vital role in Modern Organization. HR manager include roles at different levels in the organization

The Conscience Role 

Reminds management of its moral and obligations to its employees

The Counsellor 

Counseling the employees who are facing problem personal and official problems

The mediator 

As a mediator he should resolve the disputes between employee and the management

The Spokesman 

He is a frequent spokesman for or representative of the company

The Problem Solver 

Problem solver with respect to the issues that involve human resource management and overall long range organizational planning

The change Agent 

Act as change agent and introduce changes in various existing programmes 

As a specialist
Should handle all the HR functions like recruitment, training, HR policy implementation etc. 

AS a source of help
He should maintain relation and reputation so that employees should feel free to ask for help from hem 

As a change agent
He should be familiar with different disciplines like management, technology, sociology, psychology and organization behavior. And with this knowledge he should try to bring positive changes in organization 

AS a controller
Advice on different function and control all these functions

Structure of HRM Department
HRM in Small ±Scale Unit

Owner / Manager

Owner / Manager

Sales Manager

Office Manager


Personnel Assistant

Chairman and Managing Director

Production Manager

Director Finance

Director Personnel / HRM

Director Marketing

Director R&D

HRM in a Large Scale Unit

Modern Organization HRM Dept. - Large Company
Vice President - HR
Administrative Assistant

Wage / Salary Administration

Director ± Training & Development

Administrative Director Benefit Services

Administrative Director Employee Health Services Recruitment & Placement

Manager Employee Relation Services

Manager Labor Relations

Modern Organization HRM Dept. - Large Company
Manager, Labor Relations & Human Resource Human Resource Administrative Coordinator Senior Human Resource Coordinator

Human Resources Coordinator

Office Generalist

Duties and responsibilities of HR Manager
HR Manager has very wide work profile 

HR Manager is a generalist who administer and co-ordinates all the functions of HRM HR Manager is top-ranking person at a organization and expected to know about all the areas of HRM HR Manager has to look after the implementation of the HR policies at the facility and advice line managers on HR issues  

HR Manager has to look after management process functions 

Develop and establish rules and regulation Forecast the plan 

Giving each subordinate a specific task Delegating authority to subordinates 

Determine the type of people to be hired Selecting Setting performance standards Compensating employees Evaluating performance Counseling employees Training and development of employees 

Getting others to get the job done, maintaining moral and motivating subordinates 

Setting standards Checking performance up 

Human Resource Management is the process of acquiring, training, appraising and compensating employees & attending their labor relations, health and safety and fairness concerns 

Some Human aspect functions are
Conducting job analyses Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries Providing incentives and benefits Appraising performance Communicating Training and development Building employee commitment


To provide equal opportunity and affirmative action To take care of Employee Health and safety To handling grievance and labor relation  

Role of HRM in developing Human Relation 

HRM plays the most crucial role in management of organization and even in developing human relation Man vis-à-vis Machine
Most of the problems in organizational sections are human and social rather than physical, technical and economic. HRM take care of Human resource and treat their as human being  

Training and Development
HRM provide maximum opportunities for personal development through T & D It also help in providing healthy relation between different work group by training counseling and mentoring which provide better work environment with every one Training on stress, self-development and soft-skill helps them to be good human being and help them to achieve their goals 

provide suitable and most productive employment which help employees to bring their psychological satisfaction During Manpower planning it correct the errors of wrong postings and proper reallocation of work HRM helps individuals to achieve their goals while the organizational growth is happening   

Employee welfare
HRM provide different welfare facilities like canteen, library, House etc. HRM tries to help policies and procedures with the mutual consent of employee and employer It tries to provide satisfactory solutions for the employee problems 

Fair Treatment, ethics and justice
To provide equal opportunity and affirmative action To take care of Employee Health and safety To handling grievance and labor relation   

Labour Relations 

Grievance handling policy and procedures are developed, after finding out the nature and causes of grievances and locating most delicate areas of dissatisfaction Rules and regulations are framed for the maintenance of discipline in the organization and proper system of reward and punishment is developed 

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