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INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT

 Any Industrial or commercial organization exist


because of people
Organization goals material resource + human

resource
Human resource is a human capital consisting of 3 types
of capital:
1.intellectual capital - knowledge & skills
2.Social capital – network of relationships
3.Emotional capital – confidence, ambition
 Only with the help of human resource we can activate
the other resources in the organization .
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Introduction to HRM

 HRM is competing on human resources. competing for


human resources involves recruiting and employing right
personnel and
 competing on human resources involves developing,
retaining, and integrating personnel to achieve
competitive advantages.
 A part of management discipline or process
 It is a continuous process
 Concerned with the people
 Directed towards achievement of objectives
 Universal existence-for all departments
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Meaning & definition of HRM
 According to Invancevich & Glueck, “ HRM is
concerned with the most effective use of people
to achieve organisational & individual goals”.
 Human Resource Management is the process
of acquiring, training, appraising, and
compensating employees and attending to their
labor relations, health and safety, and fairness
concerns.

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Definition of HRM

 According to Flippo, “ HRM is the planning,


organising, directing, & controlling of the
procurement, devolopment, compensation,
integration, maintenance & separation of human
resources to the end that individual, organisational
& social objectives are accomplised”.

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SCOPE OF HRM

 Personnel aspect: This is concerned with manpower


planning, recruitment, selection, placement, transfer,
promotion, training and development, remuneration etc.

 Welfare aspect: It deals with working conditions and


amenities such as canteens, crèches, rest and lunch
rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities, etc.

 Industrial relations aspect: This covers union-


management relations, collective bargaining, grievance
and disciplinary procedures, settlement of disputes, etc.
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OBJECTIVES OF HRM

 To help the organization reach its goals


 To employ the skills and abilities of the workforce
efficiently
 To provide the organization with well-trained and
well-motivated employees
 To increase to the fullest the employee’s job
satisfaction and self-actualization
 To develop and maintain a quality of work life
 To communicate HR policies to all employees
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Importance of HRM

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7
Importance of HRM
(1) People is the key factor of production.
(2) Productivity is the key to measure a nation’s
economic growth potential, and labor quality is the
key to improving productivity.
(3) Competition today is the competition for talents.
(4) Since man is the most uncontrollable and
unpredictable variable of all production variables,
organizational success depends on the
management of people.
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Organization and individual

(1) Organization needs: Profits, productivity and


markets.
(2) Individual needs: Maslows Need Hierarchy
Physiological needs, security, belonging, self-
respect and self-actualization.
(3) Coordinating organization and individual needs:
goal of HRM.
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People and productivity

(1) Productivity: the measurement of economic growth


potential.
(2) Productivity formula: input : output
(3) Measurement of productivity:
a. Productivity of worker is the output per hour.
b. Productivity of equipment is the output per every
dollar invested.
c. Productivity of energy is the output per every unit of
energy consumed.
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Employee quality and productivity

(1) Employee skill determines productivity.


Man and tools.
(1) Employee motivation affects productivity.
Willingness to perform.
(1) Employee creativity and initiatives improve
productivity.
innovation is the key to improvement.
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EVOLUTION OF HR MGMT

 SCIENTIFIC MANAGEMENT
– Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth

 INDUSTRIAL/ORGL PSYCHOLOGY
– Munsterberg, Scott, Cattell

 HUMAN RELATIONS MOVEMENT


– Hawthorne Studies, Mayo, Follett, Lewin

 GROWTH OF GOVERNMENTAL REGULATIONS


– Wages (1930s), Unionization (1940s), Employment (1960s)

 PROFESSIONALIZATION OF HR MANAGEMENT
– Professional HR Societies & HRCI (Certification Institute)
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Key Words :

management process
The five basic functions of planning, organizing,
staffing, leading, and controlling.

human resource management


The policies and practices one needs to carry out
the “people” or human resource aspects of a
management position, including recruiting,
screening, training, rewarding, and appraising.
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Key Words :

authority
The right to make decisions, direct others’ work, and give
orders.

line manager
A manager who is authorized to direct the work of
subordinates and responsible for accomplishing the
organization’s goals.

staff manager
A manager who assists
Copyright © 2005 by South-Western, and
a division of Thomson advises
Learning. line managers.
All rights reserved.
Key Words :

line authority
The authority exerted by a personnel manager by
directing the activities of the people in his or her
own department and in service areas (like the
plant cafeteria).

implied authority
The authority exerted by a personnel manager by
virtue of others’ knowledge that he or she has
access to top management (in areas like testing
and affirmative action).
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Key Words :

functional control
The authority exerted by an HR manager as coordinator
of personnel activities.

employee advocacy
HR must take responsibility for clearly defining how
management should be treating employees, make sure
employees have the mechanisms required to contest
unfair practices, and represent the interests of
employees within the framework of its primary obligation
to senior management.
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Key Words :

globalization
The tendency of firms to extend their sales or
manufacturing to new markets abroad.

competitive advantage
Any factors that allow an organization to
differentiate its product or service from those of its
competitors to increase market share.

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Key Words :
cost leadership
The enterprise aims to become the low-cost
leader in an industry.

differentiation
A firm seeks to be unique in its industry along
dimensions that are widely valued by buyers.

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