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CHAPTER ONE

An Over View Of Human Resource

Management
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Human Resource Management

 Management : the process of reaching organizational
goals by working with and through people and other
resources.
 Management-implies achieving goals with effective and
efficient use of organizational resources.
 Organizational resources can be grouped into four major
categories:
 Human resources
 Financial resources
 Physical/material resources
 Information resources etc.
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People as human assets are the “glue” that

holds all the other resources
There are some significant differences of
labor as compared to other factors of
production (land, capital and
entrepreneurship).
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 Significant differences of labor

1. Human resources of an organization can be
motivated.
2. It is the only factor of production which produces
more than its input.
3. Human resources can produce synergic effect.
4. Labor is mobile.
5. It is the only resource which gains more
knowledge and skilled in the long run, where as
other factors goes on depleting.
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Definition of Human resource Management

Human resource
1. Refers to the knowledge, skills, creative abilities, talents,
and aptitudes obtained in the population (from the
national point of view).
2. HR refers to the sum total of the inherent abilities,
acquired knowledge and skills as represented in the
talents and aptitudes of its employees (from view point
of individual enterprise).
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Human resource management

 HRM- utilization of human resources to achieve
organizational objectives.
 Function of all organizations which provides for effective
utilization of human resources to achieve both the
objectives of the organization on one hand and the
satisfaction and development of employees on the other
hand (Glueck, 1992).
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 HRM is the process of acquiring, training, appraising, and

compensating employees and attending to their labor
relations, health and safety, and fairness concerns (Gary
Dessler, 2004).
• In defining and studying human resources management
some points need to be emphasized:

 HRM is concerned with the people dimension of

the organizational management.
 HRM is a pervasive activity, meaning a universal
activity in any type of organization
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HRM is said to be the most important (critical)

element in an organization since people make
the decisions concerning all other
organizational resources.
Therefore, getting and keeping good people is
critical to the success of every organization,
whether profit or non-profit, public or private.
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Factors Contributing to the Growing Importance of HRM
1. Accommodation to workers' needs- instituting such programs as flexible work
schedules, parental leave, child-care and elder-care assistance, and job sharing.
2. Increased complexity of the Manager’s job-foreign competition, new
technology, expanding scientific information, and rapid change.
Executives need assistance from the human resource department in matters
of recruitment, performance evaluation, compensation, and discipline.
3. Legislation and litigation
• Four areas that have been influenced most by legislation include equal
employment, Compensation, safety, and labor relations
4. Consistency
• Consistency is particularly important in compensation and promotion decisions.
5. Expertise
6. Cost of Human Resource
The largest single expense in most organizations is labor cost, which is
often considerably higher than the necessary because of such problems as
absenteeism, tardiness, turnover and discrimination
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Importance of HRM
1.Helps you get results - through others.
2. Helps you avoid common personnel mistakes
Hiring the wrong person for the job.
Experiencing high turnover.
Finding employees not doing their best.
Having your company taken to court because of your
discriminatory actions.
Committing any unfair labor practices.
3. Helps you to gain Competitive Advantage
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Major Human Resource Management Functions:

An over view

1.Human Resource Planning (HRP) is the process of

systematically reviewing human resource requirements to
ensure that the required numbers of employees, with the
required skills, are available when they are needed.
 HRP is the process of matching the internal and external
supply of people with job openings anticipated in the
organization over a specified period of time.

2. Job analysis: The analysis used to determine the

tasks and the necessary credentials (education,
experience etc) for a particular position.
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A. Job description: A written description of a management

position, covering title, duties and responsibilities.
B. Job specification: A written description of the
education, experience, and skills needed to perform a job
or fill a position effectively.
3. Recruitment and selection
 Recruitment is the process of attracting individuals in
sufficient numbers and encouraging them to apply for jobs
with the organization.

 Selection is the process of choosing from a group of

applicants the individuals best suited for a particular
position.
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4. Orientation and induction

It is the beginning of a continuous socialization

process that builds employee’s relationship,
attitudes and commitment to the company.
When a new person joins the organization he feels
strange, shy and nervousness. He is totally a
stranger to the people, workplace and environment.

Induction leads to reduction of such anxieties,

frustration etc of the new employee and reduces
reality shock
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5. Training and Development

 Training is a process designed to maintain or improve
performance (and skills) in the present job.
 Development is a programme designed to develop skills
necessary for future work activities. It is designed to
prepare employees for promotion.
6. Compensation Administration
 refers to the administration of every type of reward that
individuals receive in return for their services.
7. Performance Evaluation
 a formal system of periodic review and evaluation of an
individual's job performance
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8. Integration and maintenance

1. Integration is concerned with the attempt to effect a
reasonable reconciliation of individual, societal and
organizational interests. It deals with the problems
related to such as grievances, disciplinary action and
labor unions, human relations, reduce absenteeism,
increase morale etc.
2. The maintenance function deals with sustaining and
improving the conditions that have been established.
Specific problems of maintaining the physical
conditions of employees like health and safety
measures
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9. Safety and Health

 Safety involves protecting employees from injuries caused by work-related

accidents.
 Health refers to the employees’ freedom from illness and their general physical
and mental well-being
10. Promotions, transfers, demotions and separations
 High performers may be promoted or transferred to help them develop their
skills, while low performers may be demoted, transferred to less important
positions, or even separated.
11. Human Resource Research
 Human resource research is a systematic gathering, recording, analyzing, and
interpretation of data for guiding human resource management decisions.

 Finally Other areas such as employee and labor relations, collective bargaining,
employee rights and discipline, and retirement are also concerns of human resource
management.
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Objectives of HRM
1. Organizational Objectives
 Acquiring right man for the right job at right time in
right quantity, developing through right kind of training,
utilizing the selected workforce, and maintaining the
workforce is the organizational objectives of HRM
2. Functional Objectives
 HRM performs so many functions for other departments
3. Personal Objectives
 Creating work-life balance for the employees is a
personal objective
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4. Societal Objectives
 HRM must see that the legal, ethical, and social
environmental issues are properly attended to.
 Equal opportunity and equal pay for equal work are
the legal issues not to be violated

Personnel Management and Human Resource

Management
 Main difference between personnel management and
human resource management is that the former is the
traditional approach the latter represents the modern
approach toward managing people in an enterprise.
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THEIR DIFFERENCE
Personnel management Human resource management
The Scope of Services
SPECIFIC BROADER
Difference in Approach to attach much importance to gives importance to values and
norms, customs and mission.
established practices,
Dealing with day-to-day issues; but
Strategic nature dealing with day to day issues proactive, integrated with other functions

reactive, short term long term and strategic

Based on compliance/agreement
Psychological contract on the part
of the employee
Minimizing cost of human
Criteria for success resource
Based on seeking willing
commitment of the employee
commitment of the employee
Control of HR costs, but also
maximum utilization of human
resource over long term
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Future Challenges of HR Managers

1. Increasing Size of Workforce
 The management of increased workforce might create new problems and
challenges as the workers are becoming more conscious of their rights.
2.Increase in Education Level
 Educated consumers and workers will create very tough task for the future
managers.
3. Technological Advances
 The problem, of unemployment resulting from modernization will be solved
by properly assessing manpower needs and training of redundant employees in
alternate skills.
4. Changes in Political Environment - There may be greater Government‘s
interference in business to safeguard the interests of workers, consumers and the
public at large.
5. Increasing Aspirations of Employees - The workers are becoming more aware of
their higher-level needs and this awareness would intensify further in the
future workers.
6. Changing Psychosocial System - future management would be required to ensure
effective participation of lower levels in the management of the organization system
despite traditional bureaucratic organizations.
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7. Computerized Information System - The use of electronic

computers for the collection and processing of data and the direct
application of computers in the managerial decision making process.
8. Mobility of Professional Personnel - Organizations will expand
the use of ―boundary agents whose primary function will be
achieving coordination with the environment. One interesting
fact will be an increase in the mobility of various
managerial and professional personnel between
organizations.
9. Changes in Legal Environment -It is the duty of the human
resource or personnel executive to be aware of these changes
and to bring about necessary adjustments within the
organizations so that greater utilization of human resources can be
achieved.
10. Management of Human Relations
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New Role of Human Resource Management

 Facilitator of Change
 An Integrated Approach to Management
 Mediator
 Forster more cross-functional teamwork for self-
development.
 Regularly expose employees to new people and
idea is to stimulate innovation.
Replace top-down assessment processes with self
assessment techniques and measure performance
in term of results
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THE
END