Lesson 1

Continuation….
Functions of HRM
• Strategic HR Management – HR Technology, HR matrix, HRP (staffing and
employee development)
• Equal Employment Opportunity - (EEO) laws and regulations affects all other HR
activities
• Staffing: provide a sufficient supply of qualified individuals to fill jobs in an organization.
• Talent Management and Development:
• Total Rewards: motivate personnel to achieve an organization‘s goals of productivity,
innovation and profitability
• Risk Management and Worker Protection: meeting legal requirements and being more
responsive to concerns for workplace health and safety along with disaster and recovery
planning.
• Employee and Labor Relations: relationship between managers and their employees
must be handled legally and effectively
EVOLUTION OF HUMAN RESOURCE MANAGEMENT
• Kautilya Artha Shastra - He says that government must provide a proper procedure for regulating employee and
employee relation
• Allaudin Khilji (medieval) - regulated the market and charged fixed prices and provided fixed salaries to their
people. This was done to fight inflation and provide a decent standard of living
• 1920 – trade union emerged - Many authors who have given the history of HRM say that HRM started because of
trade union and the First World War.
• Royal commission in 1931 - recommended the appointment of a labour welfare officer to look into the grievances
of workers
• The factory act of 1942 - made it compulsory to appoint a labour welfare officer if the factory had 500 or more
than 500 workers.
• The Second World War - created awareness regarding workers’ rights and 1940‘s to 1960‘s saw the introduction of
new technology to help workers.
• 1960‘s - (beyond welfare) combination of welfare, industrial relation, and administration together it was called
personnel management
• 70‘s the focus was on efficiency of labour
• 80‘s the focus was on new technology, making it necessary for new rules and regulations.
• 90‘s the emphasis was on human values and development of people and with liberalization and
changing type of working people became more and more important there by leading to HRM
which is an advancement of personnel management.
IMPORTANCE/SIGNIFICANCE OF HUMAN FACTOR
Proper utilization of other resources
 Help transform lifeless factors of production into useful products
Capable of enlargement
 Produce extraordinary things when inspired
 Can help organisation achieve results quickly, efficiently & effectively.
The secret of their success is
 The way they treat their employees‖ - Sony
Nestle CEO
 Every single person in the organization should ask himself or herself – is there anything I can
do to add a little more value to our organization‖
 How important are people treated in the Organization.‖
Organization
• Acquires the services from the Employees, Develop their Skills and motivate them to achieve
the organization objectives.
HR
 Productivity, Quality Work Life & Profit.
 The Enterprise is People‖,
Importance of Human Resource Management

a) Social Significance: Proper management of personnel, enhances their dignify by

satisfying their social needs.
• maintaining a balance between the jobs available and the jobseekers, according
to the qualifications and needs;
• providing suitable and most productive employment, which might bring them
psychological satisfaction;
• making maximum utilization of the resource in an effective manner and paying
the employee a reasonable compensation in proportion to the contribution made
by him;
• eliminating waste or improper use of human resource, through conservation of
their normal energy and health; and
• by helping people make their own decisions, that are in their interests.
b) Professional Significance: By providing a healthy working environment it
promotes teamwork in the employees.
• maintaining the dignity of the employee as a ‗human-being‘;
• providing maximum opportunities for personal development;
• providing healthy relationship between different work groups so that work is
effectively performed;
• improving the employees‘ working skill and capacity;
• correcting the errors of wrong postings and proper reallocation work.
c) Significance for Individual Enterprise:
i) creating right attitude among the employees through effective motivation;
ii) utilizing effectively the available human resources; and
iii) securing willing co-operation of the employees for achieving goals of the
enterprise and fulfilling their own social and other psychological needs of
recognition, love, affection, belongingness, esteem and self-actualization.
Activity:
• Case Study 1
• Case Study 2