Understanding the

Nature and Scope

of
Human Resource Management

Human Resource Management, 5E 1

Learning Objectives
Understand the Nature, Scope and Objectives of
Human Resource Management.
Design an Organisation Chart for Human
Resource Management Function in a Typical
Industrial Establishment.
Understand the Personnel Principles and Policies.
Trace the Evolution of Human Resource
Management.
Understand Human Capital Management
Identify Jobs and Careers in HRM.
Human Resource Management, 5E 2
Meaning and Definition
People’s dimension
Organisational effectiveness

Scope of HRM
Enters
Works
Exits

Human Resource Management, 5E 3

 Nature of
HRM

Prospects Employee
of HRM Hiring

HRM
Employee &
Industrial
Executive
Relations Remuneration

Employee Employee
Maintenance Motivation

Human Resource Management, 5E 4

Difference between PM and
HRM Personnel Management
HRM
 Aim to go beyond contract
 Can do outlook, impatience with
 Careful delineation of written
rule
contracts  Business need
 Importance of devising clear rules
 Values/mission
 Procedures
 Norms/customs and practices  Nurturing
 Monitoring  Customer
 Labour management  Integrated
 Piecemeal  Fast
 Slow  Transformational leadership
 Transactional  direct
 Indirect  facilitation
 Negotiation  Integrated key tasks
 Separate, marginal task  Performance related
 Job evaluation

Human Resource Management, 5E 5

Difference between PM and HRM HRM
Personnel Management  harmonisation
 Separately negotiated
 Individual contract
 Collective bargaining contracts
 Few
 Many
 Team work
 Division of labour
 Manage climate and culture
 Reach temporary truce
 Learning companies
 Controlled access to courses
wide ranging culture, structural
personnel procedures and personnel strategies.
 Labour is treated as a tool which is  People are treated as assets to be
expendable and replaceable used for the benefit of an
 Interests of the organisation are organisation, its employees and the
uppermost society as a whole.
 Precedes HRM  Mutuality of interests
 external  Latest in the evaluation of the
subject
 internal

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Semantics – HRM vs. PM
Mutuality
Labour management
Legal compliance

HRD and IRM – What are they?

Segments of HRM

Human Resource Management, 5E 7

 Owner/Manager

Manager-
Manager-Personnel Manager-HRD Manager-IR
Administration

Appraisal Training & Development

PR Canteen Medical Welfare Transport Legal

HRP Hiring Grievances Handling Compensation

Human Resource Management, 5E 8

 Personal
Objectives

Functional
Objectives

Organisational
Objectives

Societal
Objectives

Human Resource Management, 5E 9

 Owner/Manager

Production Manager Sales Manager Office-Manager Accountant

Personnel Assistant

Human Resource Management, 5E 10

 Chairman and
Managing Director

Director Director Director Director Director

Production Finance Personnel/HRM Marketing R&D

Human Resource Management, 5E 11

Paradoxes in HRM
Only hype but low on content
Has grown from IR to PM to HRM. But HRM is
brilliant ambiguity.
HR Manager is change agent and transformationalist.
Finance overtakes personnel function.

Human Resource Management, 5E 12

Personnel Policies at ABB India
Role clarity
Empowerment
Take responsibility
Competence development
Clearly defined objectives for individual and the work
team

Human Resource Management, 5E 13

Personnel Policies at ABB India
The local unions as natural co-operation partners

Planning discussions held at least once a year

Internal mobility and employee development

Ethics, equal opportunities and an open and

honest exchange of thoughts and ideas

A strategic issue

Human Resource Management, 5E 14

1920s – 30s Pragmatism of
capitalists

1940s – 50s
Technical, legalistic

1970s – 80s
Professional, legalistic, impersonal

1990s
Philosophical

Human Resource Management, 5E 15

Jobs & Careers in HRM
HR Specialist
HR Manager
HR Executive

Why Study HRM?

Human Resource Management, 5E 16

Reality Check
It is good to read that people management has
matured from IR to PM to HRM to HCM. But has the
change been only cosmic or real? Have a debate.

Human Resource Management, 5E 17

Reality
Should thisCheck
happen? Would this happen? Could this
happen? How could all HR activities be outsourced?
Can a firm function with a HR department organised
on perfunctionary basis? Answer these questions.

Human Resource Management, 5E 18

Reality Check
Looking at the four models described in this section,
what similarities and dissimilarities do you notice
among them? What assumptions to they make? What
lessons do they carry to practising HR managers and
students of HRM?

Human Resource Management, 5E 19