a y s of h a pp in es

sss,
, gro w grain. If
ou want ten d
“If yyo e ss . If you
f h ap p in es s,
s , g ro w tr
arss o ap
ou want ten year
yyo
of h a p p in e ss , g ro w p eo p le.”
want 100 years ap
--- Chin nese Proverb

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 Contents to be
discussed
Definition of Human Resource and Human
Resource Management (HRM)
Why Employees are Superior to other
Factors of
Production?
Functions of Human Resource Management
(HRM)
Philosophy of HRM
Basic Principles of HRM
Approach to Human Resource Management
(HRM)
Challenges of Modern Human Resource
Management
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Human resources are the personnel of a business or
organization, regarded as a significant asset in terms of
skills and abilities.
Human resources are the people who make up the
workforce of an organization, business sector, or
economy.
Human resource refers to the individuals or personnel
or workforce within an organization responsible for
performing the tasks given to them for the purpose of
achievement of goals and objectives of the
organization.

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People are most valuable assets of an organization. It is people
not other things that make an organization successful.

Human Resource Management refers to the philosophy,

policies, procedures and practices that are related to the
management of people within an organization.

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According to Robbins & Decenzo
(2010)
“HRM is a process of acquiring, retaining, developing,
terminating and properly using the human resources in an
organization”

According to Flippo (1980)

“HRM is planning, organizing, directing and controlling of the
procurement, development, compensation, integration,
maintenance & separation of human resources to the end
that individual, organizational and societal objectives are
accomplished.”

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Labor is viewed as technical factor of
production:
They are treated as a commodity and they can be bought and
sold. They are considered as cogs in the machine. They can be
hired and fired at will.

Labor is Viewed as Human Factors of

Productions:
Labor has been viewed as a human factor with a lot of positive
potentials. So they must be treated with respect and dignity.
People are asset not cost. Management must develop and
utilize the talent of people to achieve common goals.

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 Functions of Human Resource Management

HR Managers are performing a variety of functions. The

functional areas of HR managers are changing as the time
goes on. The main functions of HRM includes:
Human Resource Planning (HRP);
Job Analysis;
Recruitment;
Selection;
Placement ;
Orientation;
Training & Development;
Job Evaluation;
Performance Appraisal &
Compensation.

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Human Resource Planning
(HRP)
It is a process by which managers ensure that
they have the right number and kinds of people
in the right places at the right times, who are
capable of effectively and efficiently
completing the assigned tasks.

Job Analysis
Job analysis is the process of determining the
tasks of the job & the knowledge, skills and
abilities of an employee required to perform
the job.

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Recruitment
Recruitment is the process of finding & attracting
qualify applicants to fill the vacant position.

Selection
Selection is the process of hiring the best candidate
for the job.

Placement:
Placement is the assignment or re-assignment of duties
to an employment.

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  Orientation
Orientation is a process of getting new employees
acquainted with the organization, its culture, rules-
regulation, objectives, supervisors and other employees.

Training & Development

Training is a process of increasing knowledge, skills &
abilities to do the job properly.

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Job Evaluation
Job evaluation is a process of determining the relative
value or worth of each job in relation to all other jobs
within an organization.

Performance Appraisal
Performance appraisal is a process of measuring the
actual performance comparing with the standard.

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Compensation
Compensation is the reward provided to the employees
in exchange for doing the job.

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Human being is the best creature of Allah. Management
experts have tried to identify the basic qualities possessed
by a human being.

Human beings can think, imagine & feel;

Human beings can be motivated & stimulated;
Human beings have synergetic power;
People have a desire for involvement &
 Of all the factors of production only people can perceive

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Human beings can think, imagine & feel:
Human beings can think, imagine and feel. They have creative &
innovative power. They have problem-solving ability. People
contribute to new ideas, which are the foundation for any
technological innovation.

 Human beings can be motivated &

stimulated:
Human beings can be motivated & stimulated. Experts believe
that employee satisfaction leads to better performance.
Happy worker usually productive workers,
a motivated worker works hard.  

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Human beings have synergetic power:
Synergy means the whole is greater than the sum of its parts.
Human beings can work together as a team and team
performance is usually greater than the performance of
individual.

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People have a desire for involvement:
They want to get involved in the relevant decisions. The
organization must provide them opportunities for meaningful
involvement.

 Of all the factors of production only people

can perceive:
Perception is the unique way in which each person sees, organizes,
& interprets things. People look at the world and see things
differently.
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Deal with people as a complete individual
Treat all employees with justice
Do not underestimate the intelligence of other people
Reward should be earned, not to be given
Make people feel worthwhile and related
Supply employees with relevant information
Provide opportunities for growth
Focus on group interest

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Deals with people as a complete
individual:
Consider employee as a whole person.
For example: The family life of an employee may have an effect
on his working life.

Treat all employees with justice:

There should be no discrimination in terms of gender, color, race
& religion.
For example: The selection & placement process should be
realized on the basis of equal opportunity principle.

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Do not underestimate intelligence of
other people:
People have a lot of positive potentials. So, they should be
treated with respect & dignity. The objective of HR manager is to
make the best use of human talent.

Reward should be earned, not to be

given:
Reward may be monetary and non-monetary. If it is given, it
becomes a gift or donation.
For example: Students should earn good grade through hard
work.

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Make people feel worthwhile and related:
People are the most valuable asset of an organization. Human beings
want to be appreciated and like to feel important for something they
have done well.

Supply employees with relevant information:

Secrecy may create confusion and misunderstanding. Information
should be shared with employees.

Provides opportunities for growth:

According to Herzberg, employee growth is a motivational factor. All
employees are expected to enhance knowledge, skills and
competencies.

Focus on group interest:

According to Fayol, one of the basic principles of management is the
subordination of individual interest to group interest.
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The word approach includes ideas or actions intended to deal
with a problem or situation. HRM may be discussed from the
different approaches. These approaches define HRM from the
different perspective:
Strategic Approach;
Human Resource Approach;
Commodity Approach;
Proactive Approach;
Reactive Approach &
System Approach.

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Reactive Approach:
It occurs when decision makers respond to problem. Companies may
lose time & money if they take reactive approach.

System Approach:
A system is a set of interrelated or inter-connected elements or parts
working together or as a whole one. One part affects and be affected
by the another. HRM is a system which may have different parts
such as procurement, training, performance appraisal etc.

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Changing mix of workforce
Changing values of the workforce
Changing demands of employees
Introduction of new technology
Outsourcing
Changing demands of the environment
Discrimination
 Conflict resolution

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Changing Mix of Workforce
The term we use for describing this challenge is workforce
diversity. Workforce diversity Diversified workforce is also an
opportunity for an organization.
Unity in diversity is the new business song.

 Changing Values of the Workforce

New generation workforces are more educated & they prefer
challenging and difficult jobs. High expectation can produce
anger, frustration, disappointment and dissatisfaction if work
experiences do not live up to values and expectations.

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Changing Demands of Employees
Contemporary employees are not only happy with the money,
they demand more freedom and autonomy in the workplace.
They are more concerned about intrinsic motivational factors
such as challenging job, recognition & appreciation. They want
more time for leisure, recreation and self-development.
They would like to balance between work life & family life.

Introduction of New Technology

New technology may lead to retaining or need to recruit
workers with specialist skills. Former typists have become
computer operators with the introduction of computer.
Telecommunicating and remote reporting relationships are
becoming norm rather than an anomaly.

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Changing Market
Changes in the purchasing pattern of consumers may affect the
demand for labor. Changes in the economy can also affect
human resource planning. In recession, a business is likely to
reduce its workforce as demand for its products falls.

Outsourcing
It is the practice of hiring another firm to complete work that is
important and must be done efficiently. Outsourcing refers to
companies giving work to independent contractors outside the
company rather than in house employees. Organizations should
prefer outsourcing when outsourcing can ensure better quality
at lower cost.

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Discrimination
HR manager must create a workplace free from any kind of
discrimination. Since more employees are aware of their rights, a
modern HR department may need to handle a potential increase
in complaints about discrimination.

 Conflict Resolution
Interpersonal conflict between co-workers as well as
disagreement between employees and supervisors may happen
for many reasons. It is common for HR managers to investigate
complaints of verbal and physical harassment and they must
need to resolve conflicts before they become serious or harmful.

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