Human Resource

Management
Level lv Semester l

TCS 3131 Faculty of Technology

University of Ruhuna

S H A N I K A K U MA RA SI N G H E
BC O M ( S P E CI A L ) 1 ST CL A S S H O N O U RS ( S E U S L) ,
M SC I N M A N A G EM EN T ( U SJ P ) ( R EA D I N G )
 Chapter 1

Introduction to Human Resource

Management
 After studying this session successfully, you
should be able to:
•Define what Human Resource Management is.

Learning •Analyze the generic purpose, strategic goals,

Objectives objectives, and functions of HRM.
•Argue every manager is a human resource manager
•Explain the importance of HRM
 What is an organization?
A group of people who interact with each other for the purpose of
achieving a common goal.

1. A group of people
2. Common goal
3. Interactions

Characteristics
 What is
Management
?
Management is the
efficient and effective
utilization of resources to
achieve the goals of an
organization.
Today Human Resource Management
(HRM), which is a very significant
functional field of organizational
management, has evolved a very broad
and profound management branch.
It is HRM that deals with the
management of Human Resources.
HRM is also called by alternative names
such as Personnel Management (PM),
Manpower Management, People
Management, and Staff Management.
 Definition of HRM
“HRM is the efficient and
effective utilization of human
resources to achieve goals of an
organization.”
•Goals refer to desired targets to be achieved in the future.
•The basic goal of any organization should ideally be to serve
human society.
•If not, the existence of the organization will suffer or vanish
after a short period.
•Basic goal of an organization is to fulfill human needs and
upgrade the standard of living of people.
•The fulfillment of all human needs is impossible for an
organization.
•Therefore, what human need or needs to be fulfilled should be
defined.
•Thus, by fulfilling certain human need/ needs the organization
activates to enhance the level of welfare enjoyed by people.
•In order to achieve the above-mentioned basic goal, the organization establishes specific goals.

•An organization may establish one or several or all the goals mentioned below or other ones not
mentioned here:
• To increase the net assets of owners.
• To enhance employee welfare and development.
• To maximize customer satisfaction.
• To achieve cooperate growth.
• To maintain market share.
• To fulfill social responsibility.
• To achieve financial stability.
• To increase the quality of the product.
Human Resources (HR) are employees who
work for the organization being concerned.

It is not an exaggeration that HR is the

most significant resource compared with
other resources such as financial resources,
physical resources etc.
 1. It is animate, active, and living.
2. It has the ability to think, feel and react.
The overwhelming 3. Its value appreciates with the passage of time
significance of HR is (because of experience, training etc.).

due to its unique 4. It has the ability to influence on determining its cost.
characteristics, 5. It has the ability to organize (as unions, teams etc.)
which are: 6. Its behavior is complex and may be unpredictable.
7. It has the ability of creativity and innovation, which
cannot be found in any other resources.
8. It makes decisions in respect of all other resources.
Classroom Activity No. 01

Discuss
“Other resources make things
possible, but only human resources
make things happen”
 Efficiency
This is all about “doing things right”.
Efficiency is connected with the use of
inputs. If anything is done with minimum
use of resources with no wastage and
dumps, the way it is done is efficient.
 Effectiveness
It is about “doing the right
thing”. Effectiveness denotes
that resources must be used to
achieve intended objectives
within the intended time
constraints.
 2 Low Effectiveness 4 High effectiveness
High Efficiency High efficiency

Efficiency High Die Slowly Thriving/Growing

1. Low Effectiveness 3 High Effectiveness

Low Efficiency Low efficiency
Low Die Quickly/Soon Survival

Low High

Effectiveness
 Optimum use of employees by
Efficient eradicating or minimizing wastage.
utilization of HR It means utilizing the right
employee in the right number at
the right time at the right cost.
 Effective utilization of HR

Use of HR for organizational

effectiveness, which is the extent to
which organizational goals have been
realized. It involves the utilization of
employees to accomplish the goals of
the organization.
 Generic Purpose of HRM

The Generic Purpose of HRM is to

generate and retain an appropriate
and contented workforce, which gives
the maximum individual contribution
to the Organizational success.
Appropriate:

Competent: Knowledge, Skills, Attitudes

Motivated: Willingness to work

Committed: Emotional attachment with the organization

Job Involvement: Emotional attachment with the job

 Strategic
Goals of HRM
1. To Improve Employee
Productivity
2. Employee Development
3. To increase Quality of Work
Life (QWL)
4. To ensure Legal Compliance
5. To ensure Customer
Compliance
 Productivity:
Productivity is the relationship between the inputs and the outputs.

Productivity =Outputs/Inputs

Employee productivity= Employee Outputs/ Employee Inputs

= 10,000/100 =100

= 20,000/100= 200
To Improve
Employee
Productivity
•Employee productivity is the ratio
between employee outputs to employee
inputs.
•Employee productivity improvement
must be achieved for the progress of
success. Thus, productivity improvement
means doing better tomorrow than today.
 Employee
Development
Employee development refers to the provision
of opportunities as many as possible to
accomplish employees’ personal objectives,
and improvement of their career development
through the development of knowledge, skills,
and attitudes.
To Increase Quality of Work Life

•Quality of Work Life (QWL) refers to the favorableness or unfavourableness of a

job environment for the people working in an organization
• This is intended that the degree of employees’ participation or involvement in
making employment decisions is increased. Specially regarding the decisions
which affect them.
 To ensure legal
compliance
HRM in an organization
must be performed in
compliance with legitimate
provisions imposed by labor
laws.
 To Ensure Customers Compliance

HRM in an organization must be performed in

compliance with suggestions made by influential
customers.
 Objectives of HRM

To procure the right people, at the right time to do the

right job
To retain the more appropriate employees within the
organization (Pareto Principle, 80:20)
To control employee cost
To motivate employees
To get and improve employee commitment
 Functions of HRM

Job Design
Job Analysis
Human Power Planning
Recruitment
Selection
Hiring
Induction
Performance Evaluation
Pay Management
Incentives Management
Training and Development
Employee Movements
Welfare Administration
Safety and Health Administration
Discipline Administration
Grievance Handling
Labor Relations
Career Management
 Relationship among
HR functions

HRM functions are interrelated. For

example, pay management can be done
successfully by doing job analysis
successfully. Performance evaluation
gives inputs to perform the function of
training and development.
Relationship among HR
functions
Some HRM functions are
interdependent. Success of a one
function has a direct impact
determining the success of another
function.
Organizational Goals and Objectives

Generic Purpose of HRM

Strategic Goals of HRM

Objectives of HRM

Functions of HRM
 Responsibility of HRM

The responsibility of HRM functions

rests with every manager in the
organization.
Every manager has subordinates to be
managed.
Thus, HRM is the responsibility of all
those who manage people.
 Significance of HRM
•Human resources are the most important resource that
managers use to achieve organizational goals and
objectives
•Quality of other functional fields of management
heavily depends on the quality of HRM
•HRM is the responsibility of every manager in an
organization
•HRM contributes to organizational success and then
societal success
•Management of employees is more difficult than
managing other resources
Thank You