Chapter One

MODULE NO. 1 :
INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
1) HR Management as a process
2) History of human resource management
3) Difference between personnel management and human resource management
4) Why do we call it as Human Resource Management
5) Human Resource Management functions
6) Objectives of Human Resource Management
7) Importance of Human Resource Management
8) Importance Human Resource Management to all managers
9) Human Resource Management Personnel

4-1
 HR Management as a Process
Human Resource Management is the process of hiring
to firing and motivating the employees in between. This
deals with different processes such as recruiting (can
be internal or external recruitment), selecting,
on-boarding which involves inducting employees,
providing orientation, imparting training and
development, evaluating and appraising the
performance of employees, deciding compensation
and providing benefits, motivating employees,
maintaining proper relations with employees and their
trade unions, ensuring employees safety, welfare and
health measures in compliance with labor laws.
Key Terms & 4-2
Definitions
3
 History of Human Resource
Management
19TH CENTURY

The history of Human Resource Management (HRM) begins around

the end of the 19th century, when welfare officers (sometimes called
‘welfare secretaries’) came into being. They were women and involved
with the protection of women and girls. Their creation was a reaction to
the:

• Influence of trade unions and the labor movement

• Campaigning of enlightened employers, often Quakers, for what
was called ‘industrial betterment’
• Harshness of industrial conditions

As the role grew there was some tension between the aim of moral
protection of women and children and the need for higher output.
 History of Human Resource
Management
20TH CENTURY

The First World War accelerated change in the development of

personnel management. Women were recruited in large numbers
to fill the gaps left by men going to fight. This meant reaching
agreement with trade unions (often after bitter disputes) about
‘dilution’– accepting unskilled women into craftsmen’s jobs and
changing manning levels.

Jobs with the titles of ‘Labor Manager’ or ‘Employment Manager’

were introduced to the engineering industry and other industries
where there were large factories. The role involved handling
absence, recruitment, dismissal and queries over bonuses.
Employers’ federations, particularly in engineering and shipbuilding,
negotiated national pay rates with the unions, but there were local
and district variations and there was plenty of scope for disputes.
 History of Human Resource
Management
By 1945, employment management and welfare work had become
integrated under the broad term ‘personnel management.

In the 1960s and 1970s employment started to develop significantly. At the

same time personnel techniques developed using theories from the social
sciences about motivation and organizational behavior.

Around the mid-80s, the term ‘Human Resource Management’

arrived from the USA. The term ‘Human Resources’ is an
interesting one; it seemed to suggest that employees were an
asset or resource-like machines, but at the same time HR also
appeared to emphasize employee commitment and motivation.
At Consensus HR, we always emphasize to clients the importance
of making the most of one of your most important business assets
and resources: your people.
 History of Human Resource
Management
Today’s HR activities

In today’s HR world we ensure that we cover a number of

specialist disciplines, including:

• Diversity (plus other aspects of employment law)

• Reward (including compensation, benefits, pensions)
• Resourcing (such as recruitment, disciplinary and
redundancy processes)
• Employee relations (including performance and absence
management)
• Organization development and design
• Learning and development
• Correcting systems, policies & procedures
 Difference between Personnel
Management and
Human Resource Management
Main principle of the Personnel management was
to extract work from an employee for the
remuneration paid.

• Employees during the Personnel management era

were not given high priority in decision making
process and weren't much allowed to interact with
management.
• More confined to the factories and the main focus
of the Personal manager was to see that everything
was in compliance with the labor laws or not but not
much emphasis made on the morale of employees.

Key Terms & 4-4

Definitions
 Difference between Personnel
Management and
Human Resource Management

• Employees were just treated as tools, obligation to

the organization but not as the asset of the
organization, besides they were seen as cost &
expenditure to company rather than capital and
investment.
• Personnel officers mostly used are disciplinary
oriented instead of flexible and interactive with
employees.

Key Terms & 4-4

Definitions
 Difference between Personnel
Management and
Human Resource Management
Main principle of the Human resource
management is to see what should be given to an
employee for extracting the desired work.

• HR Managers always encourage participation of

employees in decision making and their
suggestions are most valued.
• Sees employees from the perspective as most
valuable resources for the organization and they
consider their employees as assets and capital for
their organization.
• Flexibility in work, welfare and Work life balance to
employees is high priority for HR managers and
they show much more concern towards employee
issues.
 Difference between Personnel
Management and
Human Resource Management

• Adoption of new policies and optimization

methods by the HR manager are well
encouraged and swift.
• Motivating employees is a basic feature of
human resource management in contrast
with personal management.
 Why do we call it as
Human Resource Management?
Human: refers to the skilled workforce in an
organization.
Resource: refers to limited availability or
scarce.
Management: refers how to optimize and make
best use of such limited or scarce resource so
as to meet the organization goals and
objectives.
 Why do we call it as
Human Resource Management?
Evolution of an employee
Past Future

Work from 8 to 5 Work anytime

Work in an office Work anywhere and from anywhere

Use company equipment Use your own modern gadgets and requirements

Focused on inputs Focused on outputs

Climb the corporate ladder Create your own ladder for career

Pre-defined work Customized work

Hoards information Shares information

No voice Can become a leader

Focused on knowledge Focused on adaptive learning

 Human Resource Management Functions
HRM can be broken down into subsections, typically by pre-employment
and employment phases, with an HR manager assigned to each. Different
areas of HRM oversight can include the following:

Employee recruitment, onboarding and retention.

Talent management and workforce management.
Job role assignment and career development.
Compensation and benefits.
Labor law compliance
Performance management.
Training and development.
Succession planning.
Employee engagement and recognition.
Team building.
 Objectives of Human Resource
Management
Societal objectives: Measures put into place that responds to the ethical and
social needs or challenges of the company and its employees. This includes
legal issues such as equal opportunity and equal pay for equal work.

Organizational objectives: Actions taken that help to ensure the efficiency of

the organization. This includes providing training, hiring the right amount of
employees for a given task or maintaining high employee retention rates.

Functional objectives: Guidelines used to keep the HR functioning properly

within the organization as a whole. This includes making sure that all of HR’s
resources are being allocated to its full potential.

Personal objectives: Resources used to support the personal goals of each

employee. This includes offering the opportunity for education or career
development as well as maintaining employee satisfaction.
 Importance Human Resource Management
to All Managers
Why are these concepts and techniques important to all managers? ‘Perhaps it's easier
to answer this by listing some of the personnel mistakes you don't want to make while
managing. For example, you don't want to:

Hire the wrong person for the job.

Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your company taken to court because of discriminatory
actions
Have your company cited under federal occupational safety laws
for unsafe practices
Have some employees think their salaries are unfair and
inequitable relative to others in the organization
Allow a lack of training to undermine your department's
effectiveness
Commit any unfair labor practices
 Human Resource Management
Personnel
Strategic level

Chief Human Resource Officer (CHRO) is a corporate level officer,

responsible for formulating and executing human resource strategy in
match with overall organization's plan and strategic direction of the
organization, particularly in the areas of succession planning, talent
management, change management, executive compensation, and
organizational performance. He supervises industrial relations policies,
practices and operations of an organization. CHRO may also involve in
selection of board members of an organization.

Supervision level

HR Director belongs to top-level management, responsible for the

administration of all human resource activities and policies. The director
supervises employees' compensation, benefits, staffing, affirmative action,
employee relations, health and safety, and training and development
functions. They also oversee below mentioned professional human
resources staff.
 Human Resource Management
Personnel
Execution level

Recruiter (Hiring manager) is responsible filling vacancies by finding

right candidates and finally placing them in the job. The best recruiters can
woo even the most passive candidates, but should have the data needed to
influence their organization’s hiring strategy. They are part artists and part
scientists. Here are some tips to become best recruiter.
Supervision level

Trainers are responsible for imparting required skills for performing job
and updating new skills and knowledge for perfection and error free.

Safety officer sees and ensures the safety of employees at workplace.

The fact that is 1 in 4 workplace injuries are caused by overexertion.
According to [section 40B] of The Factories Act, 1948, there must be
Safety officer for thousand employees in an organization wherein
manufacturing does. The fundamental duty of safety officer is to instruct
workers about safety measures and precautions at workplace.
 Human Resource Management
Personnel
Execution level

Welfare officer is responsible to take care of the welfare of employees.

According to [section 49] of The Factories Act, 1948, Welfare officer must
be appointed for every 500 employees in the organization. They usually
deal with the task of solving day-to-day experiences of the industrial
workers. But this method is not so effective due to the dual responsibilities
on the welfare officers were basically appointed to deal with welfare
measures and their applications in the industry.

Conciliation officer is the personnel in-charged with the duty of

mediating in and promoting the settlement of industrial disputes. Generally
small and medium-sized organizations do not appoint consideration
officers; they refer settlement issues to separate conciliation officer
appointed by the government and the industrial disputes act 1947.

Payroll officer is the one who sees salaries, statutory payments &
deductions as taxes and other incentives.
 Human Resource Management
Personnel
Execution level

Counselor acts as friend for employees so as to resolve any dispute

and issues between employees. He also acts personal friend in giving
suggestions for personal issues which could hamper the efficacy at work
place.

Medical officer who is qualified doctor responsible for first aid, health
care and certification of fitness of employees for working or granting leaves.

Insurance officer who see the employees medical policy for securing
from diseases and personal accident policy for securing employees in case
of accidents so as avoid burden and risk on company.
 Human Resource Management
Personnel
Execution level

HR Generalist is responsible for all human resource activities for an

organization. He or She provides advice, assistance and follow-up on
organizational policies, procedures, and documentation. Coordinate the
resolutions of specific policy-related and procedural problems and inquiries.

HR Analyst is a challenging job generally appointed by huge

organizations where magnitude of HR issues is high. He is the one who
identifies burning issues and its causes with the help of available data and
information and if it unavailable, he is responsible for exploration and
collection of data and information could be with the support of Human
Resource Information Systems so as to analyze and draw a clear picture
of current scenario and help executives to tackle them. .
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