1. Unit-1:
Concepts & Components of HRM

2. Introduction
 HRM is an approach to management of
people, based on 4 fundamental principles –
1. People are most important asset – need to
manage them effectively
2. Link personal policies and procedures with
corporate objectives and strategic plans
3. Manage culture by changing & reinforcing
values, organizational climate and managerial
behavior
4. Integration and getting people work together
with the sense of common purpose

3. Concepts of HRM
 HRM is a specified field to develop programme,
policies and activities to promote the satisfaction of
both individual and organizational needs, goals and
objectives
 To shape an appropriate corporate culture, introduce
programmes (like improve communication systems,
involvement, commitment and productivity) to support
the core values to ensure success
 HRM is a proactive approach rather than reactive
 HRM techniques – manpower planning, selection,
performance appraisal, salary administration, training
and management development

4. Concepts of HRM
3 meaning attached to the concepts of HRM
–
1. People are valuable source – need to
invest time and effort in their
development
2. Adopt humanistic approach – cannot be
treated as material and resources
3. Do not focus only on individuals – but
also on social realities, units, processes,
teams, inter-teams and overall
organization

5. Concepts of HRM
 Traditional Personal management is non-strategic,
separate from business, reactive, short-term, and
unionized related. Attention was on personal
administration and management.
 Major attention of HRM is developing people and
their competencies.
 Personal management is curative, HRM is
preventive
 HRM emphasizes & incorporates on expectation
those are not fulfilled through personal
management – PMS, Potential, Development,
career planning, T&D, OD, Rewards, welfare etc

6. Objectives of HRM
 Societal Objectives – Socially and ethically
responsible for the needs & challenges of society
 Organizational Objectives – To bring about
organizational effectiveness. HRD exists to serve
the rest of the organization.
 Functional Objectives – To meet /suit
organizational needs and demands.
 Personal Objectives – To assist employees in
achieving their personal goal. To align individual
contribution to organization. Meet the objectives
by maintaining retaining and motivating.

7. Activity
List out the objectives of HR
department and their supporting
functions in your organization or an
organization with which you are
familiar

8. Objectives & Functions of HRM
S. No. HRM Objectives Supporting Functions
Legal Compliance
1 Societal Objectives Benefits
Union mgmt Relations
HR Planning
Employee Relations
Selections
2 Organizational Objectives T&D
Appraisal
Placement
Assessment
Appraisal
3 Functional Objectives Placement
Assessment
T&D
Appraisal
4 Personal Objectives Placement
Compensation
Assessment

9. Components of HRM
 Human Resource Organization
 Human Resource Planning
 Human Resource Development
 Human Resource Relationship
 Human Resource Utilization
 Human Resource Accounting
 Human Resource Audit

10. Components of HRM
 Human Resource Organization – Every aspect of the
organization, employment, motivation and management of
people to be integrated with strategic objectives of the
business and contribute to the successful achievement of
those objectives
 Human Resource Planning – forecasting of both supply
and demand for the future labor. How many people & what
type of expertise is needed at present & in future
 Human Resource Development – process by which the
employees of an organization perform a series of
organized activities. Helps to ensure that the organization
has the people with skills and knowledge it needs to
achieve its strategic objectives

11. Components of HRM
 Human Resource Relationship – handling employees
individually & collectively (especially unionized), increase
co-operation, trust & involvement.
 Human Resource Utilization – Achieve productivity
through people by treating them like adults, as partners,
with dignity& respect
 Human Resource Accounting – accounting for people,
measurement of cost & value of people to organization –
recruiting, selecting, T&D and judging their economic value
to the organization. Useful in managerial decision making
 Human Resource Audit – to access the effectiveness of
the HR function and to ensure regularity compliance.

12. Components of HRM
 Human Resource Systems –
o Recruitment management
o Information management – policies & practices to be
articulated and effectively communicated
o Training management – TNA, Training strategy
o Performance management – Performance appraisal,
potential appraisal & performance coaching/ counseling
o Reward management – Reward v/s contribution
o Career management – Career path
o Health and safety management – Healthy & safe env
o Discipline management – Foster positive behavior
o Culture management – Values, attitudes, rituals &
sanctions in an organization

13. Debate
Giving regular/futuristic training to
employees is an investment

14. Thank You