Chapter 1

Introduction to Human
Resource Management
After studying this chapter, you should be able to:

1. Explain what human resource management is and how it

relates to the management process.
2. Give at least eight examples of how all managers can use
human resource management concepts and techniques.
3. Illustrate the human resources responsibilities of line and
staff (HR) managers.
4. Provide a good example that illustrates HR’s role in
formulating and executing company strategy.
 Human resources: meaning
Human resources means the collection of people and their
characteristics at work. These are distinct and unique to an
organization in several ways.
Why and how human resources (HR)
are superior to physical resources

• HR alone appreciates over a period.

• HR achieves in higher performance output than its
actual input.
• HR brings value to all other assets.
• Operational flexibility is possible with HR.
Human resource management: meaning

Human resource management is concerned with policies and

practices that ensure the best use of the human resources for
fulfilling the organizational and individual goals.
Functions of human resource
management
Operative functions of HRM
 Scope of human resource
management
• Personnel or labour aspect deals with HR planning,
recruitment, selection, placement, training and development,
remuneration, etc.
• Welfare aspect deals with working conditions and amenities
such as canteen, rest-rooms, etc.
• Industrial relations aspect deals with union–management
relations like collective bargaining, grievance and disciplinary
actions, etc.
 Qualities of an HR manager
• Knowledge
• Intelligence
• Communication skills
• Objectivity and fairness
• Leadership and motivational qualities
• Emotional maturity and
• Empathy
The future role of HRM
• Change in the nature of work.
• Widening scope of HR activities.
• Greater emphasis on HRIS.
• Change in labour market conditions.
• Increasing importance of high performance work systems
(HPWS).
• Growing need for measurement tools to evaluate HR
programmes.
Case Study
• Maxine Vincent- New HR manager of Developmental Technologies-
which was earlier part of the long distance service provider company
• Earlier she was assistant to the Vice President of HR
• New company have less resources
• They need to outsource certain HR functions
• What HR functions can be outsourced?
• What should be Maxine’s role as a strategic partner?
• STRATEGIC ROLE OF HR FUNCTION
• “ As a result of globalization and liberalization, HRM has
acquired strategic importance in organization” Discuss.
Strategic human resource management is a process of aligning
HR strategies with the business strategy to accomplish the
performance goals through the employees’ competency and
commitment.
Environment Scanning
Process
• Rakesh Iron and steel Company
• Workforce 18000
• 21% market share
• 4th position in the Industry
• Target: 3rd position in three years
• Second position in seven years

• Industry leadership in 10 years

Major change in strategy
• Transformation of business operations
• Primary strategy: Product differentiation
• Identified low value steel market: where competition was
negligible
• Expansion of product line with focus on consumers of low
value products
Measures announced
• Enhancement of product line by adding more varieties
• Huge investment
• New products
• Market response: positive
• Competitors: expansion
Changed strategy: low cost
strategy
• Aggressive in sale promotion measures
• Cost reduction in other areas
• What could have been the reason for the failure of the earlier
strategies of the factory?
• How do you foresee the future of new MD in the light of the
competition faced by the company?
• What would your proposal have been if you had been the HR
director of the company?