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Human Resource Management (BEBA55A) UNIT-1
Jawahar Science College, Block-14, Neyveli. Page 1 of 18
HUMAN RESOURCE MANAGEMENT (BEBA55A)
UNIT – I
INTRODUCTION
Modern organizational setting is characterized by constant changing relation to environmental
factors and human resources. As regard to the environmental factors, we find changes in the
operating organizational structure, the network of the working procedures, customs on norms
and the economic, political and the social patterns in which organizations exist. Moreover,
there is a constant change in human resources, the individuals are employed daily with new
creativity, ideas and experiences, while the existing workforce is also continuously changing
their ideas, attitudes and even values. These two dimensions reveal the following trends.
o Increased complexity of the organizations, employment and a clear hierarchy of
owners, managers and workers.
o Increased the number of employers, self-employed and enlarged size of workforce.
o Enhance the need of training in view of increased requirements of specialized skills.
o Public interventions and legal complications in employee and employer relationships.
o Enhanced training and development of managers and professionalization of
management education.
o Possibility of employment explosion in view of ever increasing size of workforce.
o Rising the formal level of education of rank and file employees who becoming
increasingly critical of management malpractice and errors.
o Rank and file employees rapidly growing demands in different employment situations.
o Recognizing of close relationships between profits and earnings and ability to manage
human resources.
Indeed these trends manifest themselves in problem areas as identified by the managers in
organizational settings. Although the change may provide solutions to some problems, it may
create several new ones. There is an urgent need to understand these problems, anticipate them
and to find solution to them. The responsibility to find out the solutions to these problems lies
with every manager who has prepared to deal with different change effectively through
educational and developmental programs. Obviously, every manager is responsible for
management of human resources of course with the advice and help of personnel department.
Human Resource Management (BEBA55A) UNIT-1
Jawahar Science College, Block-14, Neyveli. Page 2 of 18
Management of human resources is the essence of being manager who has to get things done
through the people without whom he can be a technician but not a manager. Thus, every
manager has to develop and maintain his competency in managing human resources, which
have assumed utmost significance in modern organizations.
What is Human Resource Management?
HRM is the study of activities regarding people working in an organization. It is a managerial
function that tries to match an organization‘s needs to the skills and abilities of its employees.
Definitions of HRM
Human resources management (HRM) is a management function concerned with hiring,
motivating and maintaining people in an organization. It focuses on people in organizations.
Human resource management is designing management systems to ensure that human talent is
used effectively and efficiently to accomplish organizational goals.
HRM is the personnel function which is concerned with procurement, development,
compensation, integration and maintenance of the personnel of an organization for the purpose
of contributing towards the accomplishments of the organization‘s objectives. Therefore,
personnel management is the planning, organizing, directing, and controlling of the
performance of those operative functions(EdwardB. Philippo).
According to the Invancevich and Glueck, ―HRM is concerned with the most effective use of
people to achieve organizational and individual goals. It is the way of managing people at work,
so that they give their best to the organization‖.
According to Dessler (2008) the policies and practices involved in carrying out the ―people‖
or human resource aspects of a management position, including recruiting, screening, training,
rewarding, and appraising comprises of HRM.
Nature of HRM
HRM is a management function that helps manager‘s to recruit, select, train and develop
members for an organization. HRM is concerned with people‘s dimension in organizations.
The following constitute the core of HRM
Human Resource Management (BEBA55A) UNIT-1
Jawahar Science College, Block-14, Neyveli. Page 3 of 18
1. HRM Involves the Application of Management Functions and Principles. The
functions and principles are applied to acquiring, developing, maintaining and
providing remuneration to employees in organization
2. Decision Relating to Employees must be integrated. Decisions on different aspects
of employees must be consistent with other human resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an
organization will result in betterment of services to customers in the form of high
quality products supplied at reasonable costs
4. HRM Functions are not confined to Business Establishments Only but applicable
to non-business organizations such as education, health care, recreation and like. HRM
refers to a set of programmes, functions and activities designed and carried out in order
to maximize both employee as well as organizational effectiveness.
SIGNIFICANCE/IMPORTANCE/NEED OF HRM
HRM becomes significant for business organization due to the following reasons.
1. Objective: - HRM helps a company to achieve its objective from time to time by creating a
positive attitude among workers. Reducing wastage and making maximum use of resources
etc.
2. Facilitates professional growth: - Due to proper HR policies employees are trained well
and this takes them ready for future promotions. Their talent can be utilized not only in the
company in which they are currently working but also in other companies which the employees
may join in the future.
3. Better relations between union and management:-
Healthy HRM practices can help the organization to maintain co-ordinal relationship with the
unions. Union members start realizing that the company is also interested in the workers and
will not go against them therefore chances of going on strike are greatly reduced.
4. Helps an individual to work in a team/group:- Effective HR practices teach individuals
team work and adjustment. The individuals are now very comfortable while working in team
thus team work improves.

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BEBA55A -UNIT I_1.pdf

  • 1. Human Resource Management (BEBA55A) UNIT-1 Jawahar Science College, Block-14, Neyveli. Page 1 of 18 HUMAN RESOURCE MANAGEMENT (BEBA55A) UNIT – I INTRODUCTION Modern organizational setting is characterized by constant changing relation to environmental factors and human resources. As regard to the environmental factors, we find changes in the operating organizational structure, the network of the working procedures, customs on norms and the economic, political and the social patterns in which organizations exist. Moreover, there is a constant change in human resources, the individuals are employed daily with new creativity, ideas and experiences, while the existing workforce is also continuously changing their ideas, attitudes and even values. These two dimensions reveal the following trends. o Increased complexity of the organizations, employment and a clear hierarchy of owners, managers and workers. o Increased the number of employers, self-employed and enlarged size of workforce. o Enhance the need of training in view of increased requirements of specialized skills. o Public interventions and legal complications in employee and employer relationships. o Enhanced training and development of managers and professionalization of management education. o Possibility of employment explosion in view of ever increasing size of workforce. o Rising the formal level of education of rank and file employees who becoming increasingly critical of management malpractice and errors. o Rank and file employees rapidly growing demands in different employment situations. o Recognizing of close relationships between profits and earnings and ability to manage human resources. Indeed these trends manifest themselves in problem areas as identified by the managers in organizational settings. Although the change may provide solutions to some problems, it may create several new ones. There is an urgent need to understand these problems, anticipate them and to find solution to them. The responsibility to find out the solutions to these problems lies with every manager who has prepared to deal with different change effectively through educational and developmental programs. Obviously, every manager is responsible for management of human resources of course with the advice and help of personnel department.
  • 2. Human Resource Management (BEBA55A) UNIT-1 Jawahar Science College, Block-14, Neyveli. Page 2 of 18 Management of human resources is the essence of being manager who has to get things done through the people without whom he can be a technician but not a manager. Thus, every manager has to develop and maintain his competency in managing human resources, which have assumed utmost significance in modern organizations. What is Human Resource Management? HRM is the study of activities regarding people working in an organization. It is a managerial function that tries to match an organization‘s needs to the skills and abilities of its employees. Definitions of HRM Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations. Human resource management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. HRM is the personnel function which is concerned with procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the organization‘s objectives. Therefore, personnel management is the planning, organizing, directing, and controlling of the performance of those operative functions(EdwardB. Philippo). According to the Invancevich and Glueck, ―HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization‖. According to Dessler (2008) the policies and practices involved in carrying out the ―people‖ or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of HRM. Nature of HRM HRM is a management function that helps manager‘s to recruit, select, train and develop members for an organization. HRM is concerned with people‘s dimension in organizations. The following constitute the core of HRM
  • 3. Human Resource Management (BEBA55A) UNIT-1 Jawahar Science College, Block-14, Neyveli. Page 3 of 18 1. HRM Involves the Application of Management Functions and Principles. The functions and principles are applied to acquiring, developing, maintaining and providing remuneration to employees in organization 2. Decision Relating to Employees must be integrated. Decisions on different aspects of employees must be consistent with other human resource (HR) decisions. 3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization will result in betterment of services to customers in the form of high quality products supplied at reasonable costs 4. HRM Functions are not confined to Business Establishments Only but applicable to non-business organizations such as education, health care, recreation and like. HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness. SIGNIFICANCE/IMPORTANCE/NEED OF HRM HRM becomes significant for business organization due to the following reasons. 1. Objective: - HRM helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastage and making maximum use of resources etc. 2. Facilitates professional growth: - Due to proper HR policies employees are trained well and this takes them ready for future promotions. Their talent can be utilized not only in the company in which they are currently working but also in other companies which the employees may join in the future. 3. Better relations between union and management:- Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced. 4. Helps an individual to work in a team/group:- Effective HR practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves.