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Human Resource



and Importance-


•Difference between Personnel
Management and HRM- Strategic HRM•Role of HR Manager


What are Human Resources? • Human resources may be defined as the total knowledge. creative abilities. • It is the sum total or aggregate of inherent abilities. skills. acquired knowledge and skills represented by the talents and aptitudes of the persons employed in the organization. attitudes. as well as the values. talents and aptitudes of an organization's workforce. 2 . approaches and beliefs of the individuals involved in the affairs of the organization.

Understanding of HRM  HRM is a management function concerned with Hiring.  HRM is broad concept  Personnel Management (PM) & Human Resource Development are part of HRM.  It focuses on people in the organization. Motivating. and Maintaining people in the organization. 3 .

” 4 .HRM defined Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. their quality contributes to the ability of organizations and the employees to achieve their objectives. “It is a series of integrated decisions that form employment relationship.

Personnel Admin/ Mgmt. Personnel Management is the planning. compensation. directing and controlling of the procurement. organizational and social objectives are accomplished. maintenance and separation of human resources to the end that individual. integration. development. organizing. 5 .

 Employees are treated as profit centre and hence they invest in HRD  Employee is treated as a resource. aptitude.taking social and psychological factors in views. talents.both for organization and employees’ own 6 . abilities.  Employees are utilized for organizational benefit.  Employees are utilized for mutual benefit.  HRM is management of employees’ skills. PM is management of people  PM views man as an economic person  Employee is treated as cost centre and hence controls cost of “Personnel” in the organization  Employee is viewed as a tool or equipment which can be purchased and used. knowledge. creative abilities  HRM looks at him as a full person.

Rules Importance of devising clear rules Impatience with rules 3. Communication Indirect Direct Differences between HRM and PM 7 .Dimension Personnel Management Human Resource Management 1. Employment Contract Careful delineation of written contracts Aim is to go beyond the contract 2. Behavior Referent Norms/customs and practices Values/mission 5. Key Relations Labor Management Customer 7. Managerial Task vis-à-vis Labor Monitoring Nurturing 6. Management Role Transactional Transformational Leadership 10. Guide to Management Action Procedures Business need 4. Initiatives Piecemeal Integrated 8. Speed of Decision Slow Fast 9.

Focus of Attention for Interventions Personnel procedures Wide-ranging cultural. Job categories and Grades Many Few 17.Dimension Personnel Management Human Resource Management 11. Prized Management Skills Negotiation Facilitation 12. Selection Separate. Labor Management Collective-bargaining contracts Individual contracts 16. Conditions Separately negotiated Harmonization 15. Pay Job evaluation (fixed grades) Performance related 14. Conflict Handling Reach temporary truce Manage climate and culture 19. Job Design Division of labor Team Work 18. structural and personnel strategies 8 . marginal task Integrated. Training and Development Controlled access to courses Learning companies 20. Key task 13.

Organizing Principles Mechanistic Top-down Centralized Organic Bottom-up Decentralized 9 . Locus of Control External Internal 25. its employees and the society as a whole 22. Shared Interests Interests of the organization are uppermost Mutuality of interests 23. Respect for Employees Labor is treated as a tool which is expendable and replaceable People are treated as assets to be used for the benefit of an organization. Evolution Precedes HRM Latest in the evolution of the subject 24.Dimension Personnel Management Human Resource Management 21.

 10 . both as individuals and groups. Its focus is on results rather than on rules.Nature of HRM It is pervasive in nature as it is present in all enterprises. It is all about people at work. It encourages employees to give their best to the organization. It tries to help employees develop their potential fully.

Nature of HRM It tries to put people on assigned jobs in order to produce good results. 11 . It is a multidisciplinary activity. utilizing knowledge and inputs drawn from psychology. It tries to build and maintain cordial relations between people working at various levels in the organization. etc. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. economics.

grievance and disciplinary procedures. placement. Personnel aspectThis is concerned with manpower planning. Welfare aspectIt deals with working conditions and amenities such as canteens. settlement of disputes. etc. rest and lunch rooms. Industrial relations aspectThis covers union-management relations. 2. transport. 3. remuneration. joint consultation.Scope of HRM 1. etc. productivity etc. training and development. promotion. layoff and retrenchment. incentives. housing. 12 . recreation facilities. medical assistance. recruitment. health and safety. crèches. transfer. collective bargaining. education. selection.

Nature of HRM Industrial Relations Employee Hiring HRM Prospectus of HRM Remuneration Employee Maintenance Motivation 13 .

Minimizing the negative impact of such demands on organization.  Functional Objectives:To maintain the department’s contribution at a level appropriate to the organization's needs  Organizational Objectives:To recognize the role of HRM in bringing about organizational effectiveness.Objectives  Personnel Objectives:To assist employees in achieving their personal goals.  Societal Objectives:To be ethical and socially responsible to the needs and challenges of the society. 14 . these goals enhance the individual’s contribution to the organization.

Appraisal 2.Appraisal 6.Selection 4.HRM Objectives & Functions HRM Objectives Supporting Functions 1.Legal compliance 2.Union-Mgmt relation 2.T &D 5.Societal 1.Appraisal 3.Organisational 1.HR Planning 2.Functional 1.Assessment 4.T&D 2.Personnel 1.Compensation 5.Benefits 3.Placement 3.Placement 4.Employee relations 3. Placement 3.Assessment 15 .

Evolution of HRM Pre- industrial Revolution Industrial Revolution Emergence of Personnel Management Personnel Department Personnel Management as a mature field Evolution of HRM in India 16 .

several evils prevailed n factories system 17 . serfdom and guild system After Industrial RevolutionEmergence of new energy source &steam engine Cottage System Factories System.Pre & Post Industrial Revolution Prior to Industrial Revolution Low status to Labour Slavery. enhanced specialization However.freedom of contract.

Emergence of PM History of industrial development in US characterized by technology 1917.Large scale PM originated after WW-I Hawthorne studies gave a boost to the human relations movement Post great depression.II employers provided inducements to workers Other significant developments 18 . unionism and collective bargaining prevailed After WW.

80s.separate dept to handle them 1960s. & PM as a mature field Advent of Trade Unions.HR dept brought in top mgmt. for consultation Focus on mgmt of brain power instead of muscle power 19 .Personnel Dept.