HUMAN RESOURCE
MANAGEMENT

HRM Concept
 Definition
 Concept
 Evolution and Relevance
 HRM Functions
 HRM in India and Global Scenario
 Human Resource Policies

What is Management???
 It is the art of getting Work done through other
People.
 Management in business and organizations is
the function that coordinates the efforts of people
to accomplish goals and objectives using
available resources efficiently and effectively.

What is HR????
 Human resources is the set of individuals who
make up the workforce of
an organization, business sector, or economy.
other terms sometimes used include
"manpower", "talent", "labour", or simply
"people".

HRM - Definition
 It is defined as the art of procuring, developing and
maintaining competent workforce to achieve the
goals of an organization in an effective and efficient
manner.
 “HRM is the function performed in organizations
that facilitates the most effective use of people to
achieve organizational and individual goals.”

Definition
• HRM is planning, organizing directing and controlling
of the procurement , development, compensation ,
integration, maintenance, and separation of
human resources to the end that individual,
organizational and social objectives are
accomplished.
Core Elements of HRM
Organizations ------People ------ Management.
The HRM process consists of planning, attracting,
developing, and retaining the human resources
(employees) of an organization

Concept
 Human resource management means
management of people at work. HRM is the
process which binds people with organizations
and helps both people and organization to
achieve each others goal. Various policies,
processes and practices are designed to help
both employees and organization’s to achieve
their goal.

 Human resource management is branch of
management that deals with people at work, it is
concerned with the human dimensions of
management of the organization. As organization
consists of people, therefore acquiring them,
developing their skills, providing them motivation
in order to attain higher goal and ensuring that
the level of commitment is maintained are the
important activities.

 Human Resources help in transforming the
lifeless factors of production into useful products.
 They are capable of enlargement i.e capable of
producing an output that is greater than the sum
of inputs. Once they get inspired, even ordinary
people can deliver extraordinary results.
 They can help an organization achieve results
quickly , efficiently and effectively.

Functions of HRM

Objectives:
 To help the organization reach its goals.
 To employ the skills and abilities of the work force
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 work Life.
 To communicate HR policies to all employees
 To be ethically and socially responsive to the needs of
the society.

It includes the personnel aspects of the
management job, like
 Conducting the job analysis
 Planning labour needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries
 Providing incentives and benefits
 Appraising performance
 Conducting interviews, counseling, disciplining
 Training and developing managers
 Building employee commitment

Scope
The scope of HRM is Very wide
 Personal Aspect: It is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion,
training and development, lay off and retrenchment,
remuneration, incentives, productivity 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, joint consultation, collective
bargaining, grievance and disciplinary procedures, settlement
of disputes etc.

Objectives of HRM
 To help the organization reach its goals
 To employ the skills and abilities of the work force
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 quality of work life
 To communicate the HR policies to all employees.
 To be ethically and socially responsible to the needs of
society

Importance of HRM
 At the enterprise level:
Good HR practices help in attracting and retaining the best
people in the organization
It helps in training people for challenging roles, developing
right attitude towards the job and the company, promoting
team spirit, commitment etc
 At the individual level:
It promotes team work and team spirit among employees
It offers excellent growth opportunities to people who have
potential to rise
It allows people to work with diligence and commitment
 At the society level:
Employment opportunities multiply
Scarce talents are put to best use.

History of Human Resource Management Industrial Revolution: machines are brought in the
production process, rapid progress in technology, jobs
were more fragmented, specialization increased, but left
workers with dull, boring , monotonous jobs. Govt. did
very little to protect the interest of the workers
 Scientific management: To improve efficiency and
speed F W Taylor advocated scientific management.
Scientific management is nothing but systematic
analysis and breakdown of work into its smallest
mechanical elements and reaaranging into most
efficient combination. Improtance of training was also
identified

 Trade Unionism: Workers joined hands to protect
against the exploitive tendency of employers and
unfair labor practices. TU tried to improve work
conditions, pay and benefits, disciplinary actions etc.
 Human relations movement: After Hawthorne
experiments conducted by Elton Mayo, productivity
not only depends on rewards, and the job design but
also on certain social and psychological factors also..
Human relations movement led to the implementation
of behavioural science techniques in industry.

 Human Resources approach: During early 60’s “pet
milk theory” of human religionist's had been largely
rejected(happy workers are productive or happy cows
give more milk). It was recognized that workers are
unique and have individual needs. The trend move
towards treating employees as resources or assets
emerged.

Evolution of concept of HRM
Concept What is it all about?
The Commodity
concept
Labour was regarded as a commodity to be bought and sold.
Wages were based on demand and supply. Government did
very little to protect workers.
The Factor of
Production concept
Labour is like any other factor of production, viz, money,
materials, land, etc. Workers are like machine tools.
The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room will
have a positive impact on workers’ productivity
The Paternalistic
concept/ Paternalism
Management must assume a fatherly and protective attitude
towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.
Cont…

The Strategic Role Of Human Resources Management
The Humanitarian
concept
To improve productivity, physical, social and psychological
needs of workers must be met. As Mayo and others stated,
money is less a factor in determining output, than group
standards, group incentives and security. The organization is a
social system that has both economic and social dimensions.
The Human Resource
concept
Employees are the most valuable assets of an organisation.
There should be a conscious effort to realise organisational goals
by satisfying needs and aspirations of employees.
The Emerging concept Employees should be accepted as partners in the progress of a
company. They should have a feeling that the organisation is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.

Relevance of HRM
 Change Management
 Competence
 Commitment
 Congruence of objectives
 Motivation

Functions of HRM
Managerial
Planning Organizing Staffing Directing Controlling

Operational
Employment HR Development Compensation Mgt
Employee
Relations
HR Planning
Recruitment
Selection
Placement
Induction
Performance
Appraisal
Training
Management
Development
Career Planning
and Development
Job Evaluation
Wage and Salary Admn
Incentives
Bonus
Fringe Benefits

Human resource policies
 Human resource policies are systems of codified
decisions, established by an organization, to
support administrative personnel functions,
performance management, employee relations
and resource planning.
 Each company has a different set of
circumstances, and so develops an individual set
of human resource policies.

 Personnel Procedures :
Sequence of Steps
 Personnel Programs :
A plan of Action
 Personnel Practices :
Style and Methods

Types of Policies
i. Functional or Organizational – policies which are grouped
for different categories of personnel eg- for the mgmt
dealing with planning, organizing & controlling etc.
ii. Centralized – are planned for companies with several
locations and are formulated at the Head Office
iii. Major Policy – pertain to overall objectives, procedures and
control which affect an organization as a whole. They are
formulated by the Board of Directors and framework is
established within which major executives for the remaining
policies necessary to carry out the major objectives of an
organization.
iv. Minor Policy- cover relationships in a segment of and
organization with considerable emphasis on details and
procedures.

HR Policies
 Originated Policies – established formally by top management
 Appealed Policies – formulated on requests of subordinates
who want to know handle some situations.
 Imposed Policies – An organization accepts these policies due
to external agencies like govt. trade association .
Eg.- Not to accept any one below the age of 14 according to
the factories act.
 General Policies – These policies do not relate to specific
issues in particular
 Specific Policies – Policies relating to specific issue like
staffing compensation , collective bargaining etc.
 Written or Implicit Policies – are inferred from behavior of
managers.

CHARECTERSTICS
 Related to Objectives
 Easy to Understand
 Precise
 Stable as well as flexible
 Based on Facts
 Appropriate numbers
 Fair and Equitable
 Reasonable
 Review