Human Resource

Management
 Human Resource Management
Module-1
• Introduction to Human Resource Management-
Importance-Scope and Objectives. Evolution.
• Line and Staff aspects of HRM
• Role and Skills of Human Resources Managers
• Trends shaping HRM
• HR and Strategy
• Business integrated HRM
What are human resources?
• The term human resources may be defined as
the total knowledge, skills, creative abilities,
talents and aptitude of an organization's
workforce as well as the values, attitudes,
approaches and beliefs of the individual
involved in the affairs of the organisation.
• Various terms to represent human resources
are personnel, people at work, manpower,
staff and employees.
 Definition
• Edwin Flippo defies HRM as
“planning, organizing, directing, controlling
of procurement, development,
compensation, integration , maintenance
and separation of human resources to the
end that individual, organizational and
social objectives are achieved.”
 Definition
• According to French Wendell
“ personal management is the recruitment,
selection, development, utilization,
compensation and motivation of human
resources by the organisation.”
 Definition
• According to institute of personal
management (U.K), ‘ personnel
management is an integral but distinctive
part of management, concerned with people
at work and their relationships within the
enterprise.”
 Definition
• According to Dessler, Human resource
Management is the process of acquiring,
training, appraising, and compensating
employees, and attending to their labour
relations, health, safety and fairness
concerns.”
 Definition
• HRM is a distinctive approach to
employment management which seeks to
achieve competitive advantage through the
strategic deployment of a highly committed
and capable workforce, using an array of
cultural, structural and personnel
techniques.” 
Storey 1995
Human Resource Management (HRM)
• The focus is on managing people within the
organisation.
• It involves the productive use of people in
achieving the:
– Organisation’s strategic business objectives
– The satisfaction of individual employee needs
– Fulfilling the corporate social responsibility
 Importance of HRM
• HRM helps an organisation and its people to
realize their respective goals at the
following levels
– Organisational level
– Employee level
– Societal level
– National level
 Importance of HRM
• Organisational level:
– Attracting and retaining best talent
– Helps in training people for challenging roles,
promoting team spirit among employees,
develop loyalty and commitment through
appropriate reward schemes
• Employee level:
– Provides growth opportunities to people
– Allows people to work with commitment
 Importance of HRM
• Society level:
– More and more employment opportunities
– Scarce talents are put to best use.
– Productivity gains
• National level:
– Effective use of Human resources helps a nation
to get ahead and compete with the best in the
world leading to better standards of living and
better employment.
 Features of HRM
• It is concerned mostly with managing human resources
• Its concerned with the development of human resources.
• It is concerned with the employees both as individuals
and as a group in attaining goals
• It covers all levels of employees
• It applies to all types of organisation in the world.
• It aims at attaining the goals of the organisation,
individual and society in an integrated approach.
• It is a continuous process
• It is the central sub function of an organization
• It is a challenging job due to the dynamic nature of people.
 Nature of HRM
• Inherent part of management
• Pervasive function of management
• Basic to all functional areas
• People centered
• Continuous process
• Based on human relations
HRM Objectives

Societal objectives

Organization objectives

Functional objectives

Personal
objectives
 HRM Objectives
• The societal objectives of HRM seek to
ensure that the organization becomes
socially responsive.
• Societal objectives
• Legal compliance
• Benefits
• Union management relations
 HRM Objectives
• Organizational objectives make sure that HRM is
not a standalone department but rather a means to
assist the organization reach its primary objectives.
• Organizational objectives
– Human resource planning
– Employee relations
– Selection
– Training and development
– Appraisal
– Placement
 HRM Objectives
• Functional objectives remind the HRM that it
has only functional value and should not
become too expensive at the cost of the
organisation.
• Functional objectives
– Appraisal
– Placement
– Assessment
– compensation /rewards
– Recruitment
 HRM Objectives
• Personal objectives assist employees in
achieving their personal goals
• Personal objectives
– Training and development
– Appraisal
– Placement
– Compensation
 General Objectives of HRM
• To provide the organisation with well trained and well
motivated employees
• To attain effective utilization of human resources
• To identify and satisfy individual and organisational needs
• To maintain high employee morale
• To provide training and development
• To provide good facilities and conditions for work
• To develop and maintain quality of work life (QWL)
• To be ethically and socially responsible to the needs of society.
• Take care of human relationships-disciplinary procedure,
grievances, issues with trade unions
• Man power planning, recruitment, promotion, career
planning, salary administration, IR
 Specific objectives of HRM
• Effective utilization of HR
• Maintain organizational structure of relationships
through delegation of duties
• Development of HR
• Providing opportunities for advancement
• Ensuing services and welfare facilities
• Reconciliation of individual and organizational goals
• Satisfy individual needs
• Offering monitory and non monitory benefits
• Achieve and maintain high employee morale
• Ensuring better HR relations
 Functions of HRM
• Managerial Functions
• Operative Functions
• Advisory functions
 Functions of HRM
• Managerial functions
– Planning
– Organizing
– Directing
– Controlling
 Managerial Functions
• Planning Includes defining goals, establishing
strategy, and developing plans to coordinate
activities.
• Organizing involves what tasks are to be done, who is
to do them, how the tasks are grouped, who reports
to whom and where decisions are to be done
• Directing involves motivating employees, directing
others, influencing, guiding, supervising ,inspiring the
human resource to work enthusiastically.
• Controlling involves monitoring activities to ensure
they are being accomplished as planned and
correcting any significant deviations.
 Operative functions of
HRM
• related to the specific activities human
resource management.
– Procurement functions
– Training & Development functions
– Compensating functions
– Maintenance
– Motivation
– Personal records
– Industrial relations
– Separation
Procurement function

• It is concerned with the obtaining of a proper

kind and number of personal necessary to
accomplish an organizational task
• It deals with
– Manpower requirements
– Recruitment
– Selection
– Placement
– Induction
– Separation
Development functions

• Its concerned with the personal development

of employees by increasing their skills through
training
• It deals with various techniques like
– on the job training
– Holding seminars and conferences
– Providing educational and vocational counselling
– apprising employee potential
Compensating functions
• Its concerned with securing adequate and
equitable remuneration to personnel for their
contribution to the attainment of
organizational objectives
• It includes
– Rewards and remuneration
– Job analysis
– Job evaluation
– Fringe benefits
Maintenance(working conditions and
welfare)

• Working conditions influence the

motivation and morale of employees
• It includes
– Provisions for providing good working
conditions
– Cafeteria, restrooms, group insurance,
education for the children of employees,
recreational facilities etc.
Motivation

• HR managers helps various departmental

mangers to design a system of financial and
non-financial rewards to motivate the
employees
Personnel Records

• HR department maintains the records of

employees working in the organisation.
• Various records involving personnel
records, training records, achievement ,
transfer, promotion etc.
Industrial Relations

• It deals with the study of relations among

employees, employer, government and trade
unions
• It includes
– Trade unions
– Collective bargaining
– Industrial conflicts
– Workers participation in management
 Functions of HRM
• Advisory Role - Human resource
Manger has to offer advise to
– Top management
• Formulation and evaluation of personnel
programmes, policies and procedures
– Departmental heads
• Helps in matters such as manpower planning,
job analysis, recruitment, selection, placement,
training, performance appraisal etc
The Human Resource Management
System
 HR In Small Businesses
• Seldom Have a Formal HR Unit
• Other Managers Handle HR Functions
• Focuses on Hiring & Retaining Capable
Employees
The Human Resource Function In
A Small Business
The Human Resource Function In A
Medium-sized Business
 Traditional Human Resource
Functions In A Large-sized Firm
• Separate functions are often created
• Placed under an HR Manager
• Each HR function Must have a supervisor
and staff
• HR manager works closely with the top
management in formulating the policies.
 THE HUMAN RESOURCE
FUNCTIONS IN A LARGE FIRM
An Example Of A New & Evolving HR
Organization For Large Firms
 Evolution of the concept of
HRM
• Commodity Concept- Labour was regarded as
a commodity to be bought and sold

• The factor of production concept - Labour

was treated as any other factor of production

• The Goodwill Concept - Welfare measures like

safety, first aid, lunchroom were introduced
• The Paternalistic concept - Management
must assume a fatherly and protective
approach towards employees

• The Humanitarian Concept - To improve

productivity , social, psychological, physical
needs of the workers must be met
• The Human Resource Concept -
Employees are the most valuable assets of
an organisation

• The Emerging Concept - Employees should

be accepted as partners of the company.
Focus is on Talent Development
Differences Between
HRM and Personnel Management
• Both human resource management (HRM)
and personnel management focus on people
management
• Differences
– Nature of the relations
– Relation of power and management
– Leadership and management role
– Contract of the employment
– Respect for employees
 Nature of the relations
• In personnel • HRM through a shared
management, the focus is
more on individualistic
where individual interest
is more than group
interest.
• The relationship between
management and
employees are merely on
contractual basis where
one hires and the others
perform
vision between
management and staff
create a corporate vision
and mission which are
linked to business goals
and the fulfilment of
mutual interest where the
organization’s needs are
satisfied by employees
and employees‘ needs
are well-taken care by the
organization.
Relation of power and management

• The distribution of • Decentralization of

power in personnel power where the
management is power between top
centralized where the management is shared
top management has with middle and lower
full authority in management groups.
decision-making • This is known as
"empowerment"
Leadership and management role
• In PM leadership style is • In HRM leaders are
transactional.
transformational.
• The leader is merely a
• This leadership style
task-oriented person.
encourages business
• This leader focuses
objectives to be shared
more on procedures
by both employees and
that must be followed
ahead of human factors management.
such as personal
bonding, interpersonal
relationship, trust,
understanding,
tolerance and care.
Contract of the employment
• HRM, does not focus on
• In PM, employees onetime life-long
contract of contract where working
employment is clearly hours and other terms
written and employees and conditions of
employment are seen as
must observe strictly
less rigid.
the agreed
• The new "flexible
employment contract.
approach“ encourages
• The contract is so rigid employees to choose
that there is no scope various ways to keep
for further contributing their skills
modifications. and knowledge to the
organization.
 Respect for employees
• Labour is treated as a • People are treated as
tool which is assets to be used for
expandable and the benefit of the
replaced organization
 The role of personal
manager
• Personnel role
• Welfare role
• Clerical role
• Fire fighting role
 Personnel role
• Advisory role
• Man power planning
• Training & development
• Measurement and assessment of individual
and group Behaviour
 Welfare role
• Managing services of canteens, transport,
cooperatives
• Group counselling
• Motivation
• Leadership
• communication
 Clerical role
• Time keeping
• Salary and wage administration
• Maintenance of records
• Incentives
 Fire fighting role
• Grievance handling
• Settlement of disputes
• Handling disciplinary actions
• Collective bargaining
 Role of a HR Manager
• Man power planning Role
• Advisory Role
• Mediator Role
• Administrative Role
• Salary & wage Administration Role
• Time keeping Role
• Maintenance of records
• Grievance handling Role
 Duties and responsibilities of HR
manager
• Preparing and updating job analysis including
job description and job specification
• Helps line manager in planning for the human
resources
• Helps in searching & motivating prospective
employees to apply for job
• Doing selection process
• Conducting induction programmes
 Duties and responsibilities of HR
manager
• Identifying training needs
• Administering salaries of employees
• Introduce various techniques to motivate the
employees
• Maintain good relationship between employees,
employee groups, trade unions
• Solving employee problems and grievances
• Assisting line managers in organizing
promotion, transfer, demotions etc
 Skill set of HR Manger
• Organizational skill
• Decision-making skill
• Training and developmental Skill
• Budgeting skill
• Empathetic skill
• Communication skill
• Negotiation skill
• Team building skill
• Leadership skill
• Observing skill
 HRM Activities
• Human Resource Planning
• Job Analysis
• Recruitment
• Selection
• Orientation/Induction/ Socialization
• Human resource Development/Training & Development
• Performance appraisal/ Performance Management
• Compensation and Benefits
• Industrial Relations
• Career planning and development
• Grievances handling
• Separation process
 Trends in HRM
• Employee engagement to experience
• Advanced people analytics
• Appointment Of The Contingent Workforce
• Learning management systems
• Augmented reality and virtual reality
• Wider Shift From Automation To
Productivity Of HR Process
• Digitized HR processes
• Transformation of leadership
• Targeted recruitment
Line and staff
relationships
and
HRM
Line and staff relationships and HRM

• Line relationships: The relationship between two managers

due to delegation of authority and responsibility or issuing
or receiving instructions or orders is called line relationship
• superior--- subordinate relation
• It refers to those positions which has
– Responsibility
– Authority
– Accountability for accomplishing primary objectives
• Line manager has the power to make final operating
decisions
• Complete responsibility for the results
Line and staff relationships and HRM

• Staff Relations:- The relationship between

two managers due to giving and taking
advices, guidance, information, help or
assistance, offering suggestions, is called
staff relationship
• Staff relations help the line manager s to
take correct decisions quickly.
Human Resource Management is a Line
responsibility
• HRM is a line manager’s responsibility but a
staff function.
• The responsibility of line manager is to
attain effective goals of their respective
departments by proper management of
materials, machine, money and MEN(4 M’s).
• Personnel management is a responsibility of
all the line managers.
Human resource Management is a Staff
Function
• Line managers need Assistance in Managing
Men
• Personal managers are created for the
purpose of providing assistance, advice
information etc to the line managers in
order to relieve them from the burden of
management of personnel and allow them
to concentrate on their technical operations
Line and Staff structure
 Process of HRM
Step 1 ●
Employing people of required skills
Acquisition of HR

Step 2 ●

●
Employee training
Career development
Development of HR ●
Management development

Step 3 ●

●
Recognition
Reward

Motivation of HR ●
Praise of work

Step 4 ●
Good working conditions
Maintenance of HR
●
Retaining performing workers