Organization is a group of people established either
formally or informally for the attainment of certain
So, people are the foundation of any organization.
In societal context, organization need people and
people need organization.
It is people who staff, lead and control organizations.
Persons involved in an organization are referred as
Simply, the overall management of such personnel in
an organization is called human resource management
3. Who are Human Resource?
In organizational context, the personnel involved in
different activities of an organization are the human
resources of that organization.
Such type of personnel (referred as human resources) have
one thing common i.e. fulfillment of their assigned duties
& responsibilities in order to achieve the organizational
goal and objectives.
People become human resource when they involved in any
organization with physical strength, energy and
competencies. Competencies consists of knowledge, skill,
attitudes and potential for growth.
Human resources are effectively mobilized by the
organization for the achievement of desired results.
4. Human Resource Management
An essential function of management; and also an
important part of every manager’s job.
HRM is concerned with managing people in
It is concerned with philosophy, principles, policies
and practices related to human aspect of
It aims at achieving organizational objectives
through the efficient and effective mobilization of
According to Donnelly and Gibson,
HRM is the process of accomplishing organizational
objectives by acquiring, retaining, terminating,
developing and properly using the human resources
in an organization.
According to Gary Dessler,
HRM refers to 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.
Human Resource Management (HRM) is a process
concerned with the management of personnel
along with their energies and competencies for the
achievement of organization objectives by the
process of acquiring, developing and utilizing such
7. Evolution of HRM
A number of academics and practitioners in the past
have contributed a great deal to the development of
The history of its development goes back to the early
management pioneers, Robert Owen (1771 – 1858) and
Charles Babbage (1792 – 1871).
Similarly, other developments such as the industrial
revolution, the principles of scientific management,
the classical organization theory and more recently,
the behavioral science movement and the organization
development movement have influenced the
development of personnel management and HRM.
The trend of the development of HRM in the past
can be explained through following periods.
Early Scientific Management
Human Relations Movement
The New HRM Era
9. Early Scientific Management
The history can be traced back to the Origin of
Personnel Management. In the beginning of 18th
century, many masons, carpenters, leather workers
and people of other crafts organized themselves into
In the later part of 18th century, the Welfare
Concept was developed by some prominent family
business houses in the UK.
Industrial Revolution started from the late 18th
century. Labor was treated as commodity to be
bought or sold. There was strict system of
punctuality and rigorous working rules.
10. Scientific Management
F.W. Taylor invented principles of scientific
management in the 19th century.
He suggested to plan work and gave methods to
maximize productivity and minimize inefficiencies.
In his studies, he explained less about humanization
of workplaces and focused more on output from the
11. Human Relations Movement
Elton Mayo and Fritz Roethlisberger investigated the
causes of low productivity different from Taylor’s
The Hawthorne studies (1927 – 1932) laid the
foundation for the human relations movement and
explain why human elements are important to rise
12. The HRM Era
It was by 1920s, personnel management began to
taught at university level in US.
At the period of 1920s, a number of large companies
established personnel departments.
During 1930 – 1950, many instances of exploitation
of labor appeared.
Subsequently, a labor relations movement in the
form of Labour Unions and collective bargaining
emerged and remained successful during 1935 –
Personnel department started to work in
collaboration with union representatives.
The HRM era, began in 1950s, comprises
the work of pioneers,
human capital concept,
concept of corporate culture and
the new HRM.
The Work of Pioneers
Peter F. Drucker is the main inventor of HRM
concept. He had suggested how an effective
management contributes to direct all managers
towards a common goal.
Douglas McGregor emphasized the strategic
importance of personal policies and their integration
with business objectives.
Human Capital Concept
T. Schulz invented human capital theory and cited
example of how qualified and committed human
resources contributed in the post war economy of
Germanny and Japan.
Concept of Corporate Culture
The book “The art of Japanese Management” by R.
Pascale and A. Athos in 1981 stated that shared
values of management and workers are the secret of
The book “In search of excellence” written by T.J.
Peters and R. Waterman in 1982 named 43
successful companies in the U.S. that were driven by
the managers’ values and achieved productivity by
paying close attention to the needs of their people.
The New HRM
Traditional American personnel management and
industrial relation systems were challenged by the
process of globalization, rapid technological
advances, shorter product lifecycles and changing
customers and investors demands.
Many US industries were facing the under-utilization
and unemployment of human resources.
The reasons for such problems were: adverse union-
management relations, low employee motivation &
trust in management, hierarchical management,
restrictive work practices and, finally, resistance of
Promoted by this challenges, American business has
begun to place greater emphasis on the management of
human resources to improve productivity and quality
and thus to be competitive internally and externally.
In academic literature, at least, the terms ‘personnel
management’ and ‘personnel administration’ have been
virtually replaced by the term ‘HRM’.
In UK, the concept of HRM arrived around 1985 – 86,
when the British industry was suffering from restructuring
effects due to recession & loss of competitiveness.
Anti-union legislation of the Thatcher government
encouraged firms to introduce new labor practices and
re-order their collective bargaining arrangements.
19. Nature of HRM
People concern, develops & utilize human potential,
regard people as an important asset of organization
Applies mgmt principles & functions, perform by all
level of managers
Affected by changes in envn (political-legal, economic,
socio-cultural & technological)
Mutuality between employer and employees.
20. Components of HRM
Human Resource Planning
Recruitment & Selection
Training and Development
Employee – Management Relation
Management Information System
21. HRM Process
The process of HRM involves attracting, developing
and maintaining a talented and energetic workforce.
The basic goal of HRM is to build organizational
performance capacity by raising human capital, to
ensure that highly capable and enthusiastic people
are always available.
The 3 major responsibilities of HRM are
D.Attracting a quality workforce
E.Developing a quality workforce
F.Maintaining a quality workforce
Attracting a quality workforce
Involves human resource planning, employee
recruitment and selection.
Developing a quality workforce
Involves employee orientation, training &
development and performance appraisal
Maintaining a quality workforce
Involves career development, work life balance,
compensation and benefits, retention and turnover,
and labor-management relations.
23. Attracting a quality workforce
Human Resource Planning
28. Functions of HRM
Human Resource Planning
Acquisition of Human Resources
Utilization of Human Resources
Development of Human Resources
Maintenance of Human Resources
Control of Human Resources
Harmonious Employer-Employee Relationship
Attainment of organizational objectives
29. System Model of HRM
Input Process Output
• Human energy Organizational
& competencies • Goals achievement
• Organizational • Development
• Quality of work life
Plan • Productivity
• HR Plan • Maintenance
• Readiness for change
• HR Inventory Personal
• Job Analysis • Commitment
30. Challenges to HRM
Nature of work
Size & composition of the workforce.
Rising employees' expectations
Less attached/temporary employees
New HRM concerns
Impact of new economic policy.
Political ideology of the Government.
31. Trends and Issues of HRM
Issues of HRM in Nepal
Corporate Planning and Objectives
Human Resource Planning
Recruitment, Selection and Placement
Employee training and development
Salary and other benefits
32. Barriers to Development of HRM in
HRM in Nepal is mainly concerned with utilizing
It is least concerned with developing human
competencies and potential for growth of employees.
Its focus is on achieving organizational goals without
much regard to personal goals of employees.
HRM has not assumed a strategic role in Nepalese
People are not considered as a source of competitive
advantage and important assets.
HRM is not given a strategic role. It lacks clear cut
vision, mission and goals.
The attitudes of top management are not favorable
towards HRM. Human resources are viewed as a cost
rather than assets by management.
HRM is considered as a firefighting job to deal with
labor grievance and indiscipline.
Line managers do not feel ownership for HRM.
Lack of mutual trust between labor and management.
Multiplicity of unions, union challenges,
politicialization of unions and negative attitude of
management towards labor unions.
HR aspects are not considered in policy and plan
Human resource development has remained an area
of low priority. This has retarded professionalism in
HRM. Performance based HRM practices are
Legal framework has remained weak and largely
HRM is short range oriented. It is least concerned
with future potential development of employees.