CHAPTER 1

 Human Resource Management (HRM) is the

function within an organization that focuses on
recruitment of, management of, and providing
direction for the people who work in the
organization.
 Human Resource Management is the
organizational function that deals with issues
related to people such as compensation, hiring,
performance management, organization
development, safety, wellness, benefits,
employee motivation, communication,
administration, and training.
 “HRM is the planning , organizing , directing and
controlling of the procurement ,
development ,compensation , integration,
maintenance and separation of human
resources to the end that
individual , organizational and social objectives
are accomplished .
 HRM is the process of acquiring , training ,
appraising and compensating employees and
attending to their labour relations , health and
safety
 Pervasive force
 Action oriented
 Individual oriented
 People oriented
 Future oriented
 Development oriented
 Integrating mechanism
 Auxiliary services
 Procurement
 Training & Development
 Job Analysis & Job Description
 Remuneration
 Personnel Records.
 Welfare & Industrial Relations.
 To help the organization reach its goals.
 To employ the skills and abilities of the
workforce efficiently.
 To provide the organization with well trained &
well motivated employees.
 To increase to the fullest the employee’s job
satisfaction and self actualization.
 To develop and maintain QWL(quality of work
life).
 To communicate HR policies to all employees.
 To be socially and ethically responsive to the
needs of society.
 To ensure effective utilization and maximum
development of human resources.
 To ensure respect for human beings. To
identify and satisfy the needs of individuals.
 To ensure reconciliation of individual goals
with those of the organization.
 To achieve and maintain high morale among
employees.
 Maintaining a balance between the jobs
available and the job seekers according to the
qualification and needs.
 Providing suitable and most productive
employment.
 Making maximum utilization of resource.
 Helping people to take their own decisions in
their interest.
 Maintaining the dignity of employees as a
human being.
 Providing maximum opportunities for
personal development.
 Providing healthy relationships between
different work groups.
 Securing willing cooperation of the employees
for achieving goals of the enterprise and
fulfilling their own social and other
psychological needs of recognition, affection,
belongingness, esteem and self actualization.
 HRM is concerned with employees both as
individuals and as groups in attaining goals.
 HRM is concerned with development of
human resources i.e. knowledge, skills,
capabilities , attitudes.
 HRM covers all levels (low, middle,& top)
and categories( unskilled, skilled, technical,
professional, managerial) of employees .
 HRM applies to all types of organizations in
the World.
 HRM is a responsibility of all line managers
and a function of staff managers in an
organization.
 HRM is the central subsystem of an
organization.
 HRM aims at securing co-operation from all
employees in order to attain predetermined
goals
 HRM is a continuous and never ending
process.
 SHRM or Strategic human resource
management is a branch of Human resource
management or HRM.
 Definition –

Strategic human resource management can be

defined as the linking of human resources with
strategic goals and objectives in order to
improve business performance and develop
organizational culture that foster innovation,
flexibility and competitive advantage.
 It helps analyze the opportunities and threats
that are crucial, from the point of view of the
company.
 It is possible to develop strategies and have a
vision for the future.
 Development and maintenance of competency
among employees, is the most important
benefit offered by strategic HRM.
 It helps determine the weaknesses and
strengths of the company, thereby enabling the
management to take appropriate measures.
 The attrition rate can be reduced, if strategic
HRM is implemented properly. It also
performs the important task of motivating
employees.
If implemented efficiently, strategic human
resource management helps in improving the
productivity of employees and utilizes their
expertise in meeting the company goals.
Administrative role
 Policy maker

 Administrative expert

 Advisor

 Housekeeper

 Counselor

 Welfare officer

 Legal consultant
Operational role
 Recruiter

 Trainer, Developer, Motivator

 Coordinator

 Mediator

 Employee advocates

 Job Analyzer

 Job evaluator
 Problem solving Techniques.
 Intelligence
 Sense of Vocation.
 Leadership Qualities.
 Integrity.
 Cooperation.
 Coordination.
 Feedback.
- 'Minimum wage rate' and 'Incentive wage
plans' – by Moses around 1800 B.C.
- Principle of 'Division of labour' was originated
in China in 1650 B.C.
- 'Span of management' and related concepts of
organization were understood by Moses
around 1250 B.C.
- Kautilya, in India, in his book ‘Arthashastra’
made reference to various concepts like job
analysis, selection procedures, executive
development, incentive system and performance
appraisal.
- However the foundations of modern concepts of
HRM date back to the era of industrial revolution
when large scale production was taken up due to
invention of steam engine and machines and
problems were felt in dealing with the workers.
1. The Industrial Revolution.
2. Scientific management
3. Trade Unionism
4. Human Relations Movements
5. Human Resources Approach
• Personnel management is more administrative
in nature, dealing with payroll, complying with
employment law, and handling related tasks.
• Human resources, on the other hand, is
responsible for managing a workforce as one of
the primary resources that contributes to the
success of an organization .
• PM focuses on Employee relations.
• HRM focuses on Partnerships with internal
and external customers.
• PM is traditional, routine, maintenance-
oriented, administrative function whereas
HRM is continuous, on-going development
function aimed at improving human processes.
• PM is reactive, responding to demands as and
when they arise. HRM is proactive,
anticipating, planning and advancing
continuously. 
• PM is the exclusive responsibility of the
personnel department. HRM is a concern for all
managers in the organization and aims at
developing the capabilities of all line managers
to carry out the personnel functions. 
• The scope of PM is relatively narrow with
a focus on administering people. The scope of
HRD views the organization as a whole and
lays emphasis on building a dynamic culture. 
• Important motivators in PM are compensation,
rewards, job simplification and so on. HRM
considers work groups, challenges and
creativity on the job as motivators.