2. Objectives
• After completing this session, you will be
able to:
– Define Human Resource
Management
– Examine the nature of HRM in
organisations
– Describe the scope and importance
of Human Resource Management
– Explain important terminologies
3. Topics
• Following are the topics covered in this
session:
– Understanding HRM and its nature
– Scope and importance of HRM in organisations
– Important terminologies to know
– Summary
4. Understanding HRM and its Nature
In this module, we will define
HR and discuss how it is
important in an organisation..
5. Understanding HRM and its Nature
• Human Resource Management (HRM) is
the ever dynamic field in the management
of businesses and organisations, today.
• HRM is exciting and challenging and
deeply satisfying if handled well.
• A career in HRM is a rewarding experience.
• A HR professional deals directly with
people and for people.
6. Introduction (Contd.)
• HR is a challenging profession as it deals with people of diverse
nature.
• Different people are different due to various reasons such as:
– Economic
– Cultural
– Political
– Gender
– Age
• All employees of an organisation need to be managed towards
achieving a common purpose.
• The people are the single most important resource in any company.
• Even though organisations need resources like machines and
computers, it is still the people who will be using them.
7. Human Beings as Resources
• A resource is any article or thing of a limited
availability that helps to produce goods that have
economic value.
• Human beings are considered as resources as
they have the ability to change raw materials into
valuable resources that have economic value.
• This means human efforts can create or build
something of value.
• Human resources are those
skills, energies, talents, abilities and knowledge
that are used for the production of goods or
services.
8. Definition of Human Resource Management
• If an organisation has to use the skills and talents of all the
people employed, it has to manage and co- ordinate them in a
proper way.
• Hiring and maintaining employees is the primary function of an
organisation.
• HRM can be defined as the management function of recruitment,
selection, training and development of the people in an
organisation.
• The Human Resources Management role helps an organisation to
reach its goals by:
– Hiring the best talents
– Overseeing their training and development
– Motivating
– Evaluating performance
– Providing suitable compensation
9. Nature of HRM
• HR supports the management in all its activities.
• Managing human resources means helping the
managers of a company to
• Recruit and select the right persons
• Train and develop employees
• Keep the employees motivated and satisfied
• HRM is concerned with people’s dimensions in
organisations.
10. Elements that Constitute the Nature of HRM
• It’s the people
– Companies are built of people and not of
machines, walls and stocks.
– It’s the people who staff and manage
the companies.
• It’s the application of management
principles.
– Principles regarding
attracting, developing, maintaining and
suitably rewarding people have to be
applied in a scientific and appropriate
manner.
11. Elements that Constitute the Nature of HRM
• It’s making integrated decisions.
– Decisions on the many different aspects of
employment and employment life must be consistent
with the other HR decisions. It should also be in line
with the company objectives.
• It’s influencing the effectiveness of the company
– Decisions must influence the effectiveness of the
company in terms of bettering the services to
customers in the form of high quality products at
reasonable cost.
• So the nature of HRM consists of a set of functions and
activities that are designed and applied to maximize the
company’s objectives in the most effective manner.
• At the same time it must ensure that their people too are
benefited and satisfied.
•
12. Scope and Importance of HRM
In this topic, we will discuss the
scope of HR function and its
importance at the
organisational level.
13. Scope and Importance of HRM
• The scope of HR is vast and it is
challenging.
• HRM is concerned with the
management of a company’s most
valued assets - the people.
• HRM is a threefold function. They are as
follows:
– 1. Bring talent into the organisation
– 2. Develop the talent in the organisation
– 3. Motivate talent as high performers
14. Scope (Contd.)
• The HR needs to perform functions
involving:
– Employees
– Management
– Business goals
– The functions can be categorized in
the following way:
– Recruitment and Selection
– Induction
– Training and Development
– HR system and Procedures
– Performance Management System
15. Scope (Contd.)
• These functions can be expanded into these following activities:
– HR Planning
– Job Analysis and Design
– Recruitments
– Interviews and Selection
– Induction / Orientation
– Remuneration and Rewards
– Performance Appraisal and Job Evaluation
– Training and Development
– Motivation
– Policy Making
– Administration and Implementation of Rules and Regulations
– Organisational Development
– Benchmarking with Best Practices
16. Scope (Contd.)
• HRM has become strategic due to
accelerating rate of transformation of the:
– Economy
– Corporate cultures
– Legal environment
– Perceptions of the workforce
17. Importance at Organisational Level
• Firstly, it is continuous role. Right from the time a person
joins the organisation till his/her leaving, the HR
department is actively involved.
• The purpose of HR is to sustain the goals of the
organisation.
• The HR is regularly monitoring and making periodic checks
on the activities of the employees for regulation and
problem solving.
• The HR is referred to as the eyes and ears of the company
• It is the HR who values the people and who works towards
creating competitiveness well as compassion at the work
place
• The HR design policies and procedures for organisations
and thus become partners in the business of the
organisation.
18. Importance at Organisational Level
• The HR benchmarks for best practices and
infuses them within their own company
• The HR continuously strives to optimise
resources for mutual benefit
• Lastly HR is the single point of contact for
all employees in the organisation.
19. Important Terminologies to Know
In this topic, we will look at
some important terminologies
related to HR.
20. What are the Different Terminologies?
• Some of the frequently used
terms in HR are:
– Industrial Relations Management
– Labour Relations Management
– Personnel Management
– Personnel Administration
– Human Resource Development
– Human Capital Management
21. Industrial Relations
• After the industrial revolution, there was a
growing need to hire huge numbers of
employees to work at the factories.
• With the number of workers
increasing, issues regarding their rights
subsequently emerged.
• This lead to the formation of trade unions.
• After the trade union movement, there was
need to regulate the issues of the
employees.
• This gave birth to Industrial Relations
Management.
22. Industrial Relations (Contd.)
• Some functions of Industrial Relations
Management are:
– Man hours regulation
– Making job duties,
– Dealing(bargaining) with various job
authorities,
– Grievance handling
– Non exploitative wages and salary
administration
23. Personnel Management
• With the processes and management getting more
scientific because of researchers like Frederick Taylor
and Abraham Maslow, Industrial relations made some
major and evolutionary changes.
• The thoughts that were raised on that research, led to
the scope evolving into a more human outlook.
• Now planning was the result of co operation between
management and workers and every administrative
policy or procedure laid down was done scientifically.
• The function of looking into the employees’
betterment came to be called as Personnel
Management.
• This function is also called Personnel Administration
24. Human Resource Development
• The term, Human Resource Management
or HRM came into existence only in the
1970s.
• This was due to a shift in professional
values from concern for welfare to a
focus on efficiency.
• Another term that evolved subsequently
was Human Resource Development.
• HRD focuses on those activities that are
only related to employee development.
25. Summary
• In this module we have learnt;
– Human Resource Management can be defined as the
management function of recruitment, selection, training and
development of the people in the organisation.
– The four elements that constitute the nature of HRM
– HRM is a threefold function.
– Some HRM functions are: Human resource planning, job
analysis and design, recruitments, interviews and
selection, induction, remuneration, performance appraisals and
job evaluation and training.
