Chapter–01, Lesson-02

Introduction to Human Resource Management

 Learning outcomes

1. Explain the principles human resource management is and

how it works in the management process.
2. Illustrate the human resources approaches and model
applied in different organizations.
3. Competitive advantages model of human resources
management.
 Lesson contents
1. Principles of  Human Resource Management
2. Approaches to  Human Resource Management
3. Harvard Model of  Human Resource Management
4. Toyota Model of  Human Resource Management
5. Competitive Advantage Model of  Human Resource Management
 Principles Human Resource
Management
Human Resource Principles are a fundamental truth established by
research, investigation, and analysis. The following can also be
considered as the principles of Human Resource Management;
1. Principle of Individual Development: To offer an equal
opportunity to every employee so as to realize his/her potential and
capability.
2. Principle of the Scientific Selection: To place the right individual
in the right job.
3. Principle of the Free Flow of Communication: To open &
encourage upward, downward, formal as well as informal
communication.
4. Principle of the Participation: To associate with employees at
each and every level of decision making.
 Continued
5. Principle of a Fair Remuneration: To pay fair and equitable
wages & salaries to talented employees.
6. Principle of an Incentive: To review the performances of the
employees and rewarding them accordingly.
7. Principle of the Dignity of Labor: To treat each and every
employee with respect and dignity.
8. Principle of Labor-Management co-operation: To promote
industrial relations and labor laws.
9. Principle of Team Spirit: To ensure co-operation & teamwork
amongst the employees.
10. Principle of Contribution to National Prosperity: To provide
a higher work purpose to all the employees and to contribute to the
national prosperity and integrity.
 Approaches to Human Resource
Management
There are many different approaches to human resource
management. Human resource Management may be discussed
from the different approaches. These approaches define HRM
from different perspectives.

1. Strategic approach.

2. Management approach.
3. Human resource approach.
4. Commodity approach.
5. Proactive approach.
6. Reactive approach.
7. System approach.
 Harvard Model of  Human Resource
Management
The analytical framework of the ‘Harvard model’ offered by Beer et
al .consists six basic components:
Situation factors
Stakeholder interests
HRM policy choices
HR outcomes
Long-term consequences
Feedback loop through which the output flow directly into the
organization and to the stakeholders.
 Toyota Model of  Human Resource
Management
The framework of HRM of Toyota understands widely of four goals
are described as follows;
1. The objective of organizing integration.
2. The objective of commitment.
3. The objective of the flexibility and the adaptability.
4. The objective of quality.
 Competitive Advantage Model of  Human
Resource Management
Achieving competitive success through people requires a basic
change in how managers think about their employees and how they
view the working relationship. For gaining competitive advantage
through people,
Professor Pfeffer of Harvard University suggested few HRM
guidelines and these are listed below:
Employment security.
Selective recruiting.
High and lucrative wages.
Incentive pay.
 Continued
Employee ownership.
Employee empowerment and participation.
Information sharing.
Training and development of skills.
Treat people with respect and dignity.
Wage compression.
Promotion from within.
KEY TERMS
Principles
Approach
Model
Harvard
Toyota
Competitive Advantage
Strategic HRM
 Any Confusion?????
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