BA CORE 5

CHAPTER 1

INTRODUCTIONT
O HUMAN
RESOUCEMANAG
EMENT
Prepared by: Novelyn Quillao
 Introduction
Every organization is essentially a combination of
physical and human resources (HR).

Physical resources refer to materials, money and machines pre- All organizational resources are important for achieving
arranged by the organization for production or trade. the objectives of an organization. In fact, the
effectiveness of an organization lies in the judicious
Human resources refer to the knowledge, education, skills, blending of the two resources to achieve optimum
training and proficiency of the competency.
members of the organization.

Introduction
Every organization is essentially a combination of
physical and human resources (HR).

Physical resources refer to materials, money and machines pre- Organizations are managed by people and through people. Without
arranged by the organization for production or trade. people, organizations can never exist
Human resources refer to the knowledge, education, skills,
People who make up the human resources of a company are
training and proficiency of the members of the organization.
unique and they can make or break an organization, depending
 upon their level of commitment, contribution and cooperation.

1
Definitions of
Human resources

Michael J. Jucius Leon C. Megginson

Human resources are “a whole consisting of inter-related, “From the national point of view, human resources are knowledge,
inter-dependent and interacting physiological, psychological, skills and attitude obtained in the population; while for individual
sociological and ethical components.” enterprises, they represent the total of the abilities, knowledge and skills of
its employees.”

Human resources are the only assets that

2 Human Resources appreciate over a period while
Uniqueness of
Further, human resources alone can produce an output larger than the input.
physical resources just depreciate with years. This is possible due to the creative skills of humans

Organizations require human resources of different types to There is a growing realization that the flexibility of an organization
operate all physical resources. Thus, they provide utility value depends more on people than on any technical factors.
to each one of the physical assets.
Definitions of
3
Human Resources Management
 Edwin B. Flippo Institute of Personnel Management (IPM)

Human resource management, is the planning, organizing, success.”

directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of
human resources to the end that individual, organizational and 4
social objectives are accomplished.”
HRM are part of management concerned with people at work and with
Definitions of
their relationships within an enterprise. Its aim is to bring together and
develop into an effective organization the men and women who make up an Human Resources
Management
enterprise and, having regard for the well-being of the individual and of
working groups, to enable them to make their best contribution to its
 David A. Decenzo and Stephen P. Robbins Institute of Personnel Management (IPM)

HRM is concerned with the people dimension in management. Since every organization—government, business, education, health, recreation, or social
organization is made up of people, acquiring their services, developing their action.”
skills, motivating them to higher levels of performance and ensuring that they
“Human resource management is a series of integrated decisions that
continue to maintain their commitment to the organization are essential to
form the employment relationship; their quality contributes to the ability
achieving organizational objectives. This is true, regardless of the type of
of the organizations and the employees to achieve their objectives.”

Objects of
5
 Human Resource Management

To act as a liaison between the manpower inventory, which, in turn, productivity and, most
top management and the ensures the smooth working of the importantly, increasing individual
employee organizationation Initiatives and organizational performance to
To arrange and maintain adequate To offer training as a way of achieve the desired results
developing skills, enhancing
Objects of
5
Human Resource Management
To devise employee benefit schemes for cooperation. and psychological well-being at work.
improving employee To ensure and enhance the quality of To help keep up ethical values and
motivation and group morale and work life, which refers to the behaviour amongst employees both
enhancing employer–employee employees’ perception of their physical within and outside the organization.

6 Management Personnel or Labour Aspect

Scope of
Human Resource
It deals with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development,
lay-offs and retrenchment, remuneration, incentives and
productivity.

Welfare Aspect

Concerned with the working conditions and with amenities

such as canteen, crèches, rest- and lunch rooms, housing,
 transport, medical assistance, education, health and safety, and
recreation facilities.

Relations Aspect
6
Scope of
Human

Resource Management Industrial

It pertains to union–management relations, joint
consultations, collective bargaining, grievance and
disciplinary actions, and settlement of disputes
Functions of
7
 Human Resource Management

Managerial Functions
the basic functions performed by the HR
managers in their capacity as managers or
heads of their own departments. . In fact,
all managers, irrespective of their
departments, perform these functions

Operative functions
Are specialized activities
performed
exclusively by the HR managers,
usually for all the departments.

Managerial Functions
PLANNING
 It is an effective tool to deal with the future. In this
context, accurate forecasting is vital to the success of
any plan.

The steps involved in planning are:

Establishing goals and objectives to be
achieved
Developing rules and procedures
Determining plans and forecasting techniques

Managerial Functions
ORGANIZING
Organizing is a process through which the firm establishes
its structure and determines the authority, responsibility
and accountability of each member in relation to the job.
Organizing involves:
Giving each member a specific tasks
Establishing departments and divisions
Delegating authority to the members
Establishing channels of authority and
 communication
Creating a system to coordinate the works of the
members

Managerial Functions
STAFFING
It deals with the creation and maintenance of
human resources through employment,
compensation, benefits, training and development, and
industrial relations measures.
Staffing involves:
Determining the type of people to be hired
Recruiting prospective employees and
selecting the best ones from them
Compensating the employees
Training and developing the employees
Setting performance standards and evaluating the
employees’ performance
Counselling the employees
 Managerial Functions
DIRECTING
Directing is the sum of several activities like
communication, leadership and motivation.
Aims at securing willing cooperation from the
individuals and the groups to achieve the
predetermined goals.
Directing involves:
Getting work done through subordinates Ensuring
effective two-way communication for the exchange
of information with the subordinates
Motivating subordinates to strive for better
performance
Maintaining the group morale

Managerial Functions
CONTROLLING
The process of checking the efficiency of the individuals and
the groups in fulfilling the plans and goals through follow-up
measures.

Controlling involves:
Establishment of standard performance
Measurement of actual performance
Comparison of actual performance with the
standard one to find the deviation
Initiation of corrective actions, if there are any
deviation

Operative Functions
PROCUREMENT
refers to a series of activities undertaken by the HR
managers for filling the present and future vacancies of
the organization

The activities include:

 Job analysis and designing - refers to
both the determination of specific
tasks and responsibilities connected to
a job and identifying the skills,
knowledge and abilities required for
the job holder.
HR Planning - involves choosing and
placing the right person at the right job
and at the right time.

Operative Functions
PROCUREMENT
refers to a series of activities undertaken by the HR
managers for filling the present and future vacancies of
the organization

The activities include:

Recruitment involves gathering a pool
of applicants from which suitable
employees may be selected.
 Selection involves screening, testing,
interviewing and hiring the most
suitable employees for the
organization.

Operative Functions
DEVELOPMENT
refers to both employees’ training and
management development.
HR managers are responsible for conducting and
supervising training and development
programmes for employees to increase the employees’
competencies in their job by improving their knowledge,
skills and abilities.
Training and development is widely accepted as a method
for enhancing the employee skills,
increasing the individual and organizational performance,
improving the employee morale, and achieving the business
growth and success.
 Operative Functions
COMPENSATION
Compensation refers to the determination of the pay
scale and other benefits for the employees
Establishing and maintaining the pay system of an
organization is one of the principal jobs of the HR
managers.
In addition, HR managers should regularly manage the
performance evaluation system of the organization, and
continuously design reward systems such as performance
linked incentive plans and bonus and flexible work schedules

Operative Functions
MAINTENANCE
aims at retaining efficient and experienced
 employees in the organization.
HR managers are responsible for offering a wide range
of HR programmes covering occupational safety, health
promotion and physical fitness, canteen facilities, recreation
activities,
transportation programmes, employee suggestion schemes,
career counselling and growth for creating a positive
work environment.

Operative Functions
INTEGRATION
It consists mainly of industrial relations and aims at
ensuring good relations between the
management and the employees
HR managers have to implement industrial
relations programmes that would ensure ethical and fair
treatment in disciplinary action,
grievance redressal, and career management
processes.
They should also counsel the employees and the
management to prevent and, when necessary, resolve
disputes over labor agreements or other labor relation
issues.
8 Human Resource management As a
Human Resource management As a Profession
Profession
Existence of an Ethical Code
Every member of a profession should observe a code of ethics prescribed by
An Organized Body of Knowledge his regulatory authority. The code lays down the duties, ethical norms, dos
HRM now has well-defined principles, concepts, theories and practices. and don’ts for the members.
There has been a tremendous increase in the knowledge about HRM in recent
years. An HR manager cannot perform his job effectively without proficiency Charging of Fees
in these concepts and principles. The main obligation of a professional is to serve the community. He must
not think in terms of
personal gain. He must not accept or offer any
Formal Education and Training improper gratification in any form or manner. HR managers are also
emerged to provide formalized education and training to the aspirants in HRM. expected to uphold the honor, integrity and dignity of the profession.
It endeavors to promote professionalism amongst its members.

8 9
Qualities of
Human Resources Manager
KNOWLEDGE INTELLIGENCE

Knowledge helps one gain respect. The HR manager must be an Intelligence means the mental ability to properly understand the
expert in his own field to gain the confidence and respect of his nature of the problem existing in a situation or event which may
subordinates. require a solution.

He must have a comprehensive knowledge of concepts, principles The HR manager should be able to understand the situation quickly
and theories relating to HRM and other related fields. and to act decisively before it becomes unmanageable
But, mere possession of this knowledge is inadequate; the HR He should also be able to properly examine the situation to
manager must have practical exposure to these concepts distinguish the real problems from the ones that are merely made to
and principles in real-life situations. appear important.

9 Human Resources Manager

Qualities of

COMMUNICATION SKILLS OBJECTIVITY AND FAIRNESS

He must have good communication skills to share his ideas and principles in real-life situations.
effectively with the employees and to persuade them to work
He should observe strict impartiality and honesty in all his transactions.
towards the organizational goals successfully.
He is required to act only on the basis of relevant facts and
to achieve better cooperation and unity.
information
But, mere possession of this knowledge is inadequate; the HR
He has a moral responsibility to protect the rights and privileges of
manager must have practical exposure to these concepts
the relatively weak workforce.

9 Human Resources Manager

Qualities of

To lead is to influence.
Leadership and Motivational Qualities EMOTIONAL MATURITY It is essential for the HR

manager to have emotional

The HR manager should possess the ability to influence the employees to strive
employees towards the achievement of goals and targets. maturity and tolerance in dealing with the employees

He should also be a good motivator. He must show parental care in attending to their needs.

He must have the necessary skills to constantly motivate the He should not have any ill-feelings towards any employee on the
basis of his past behavior.
 for better performance. He should always be rational and not emotional in his approach.

9 Human Resources Manager

Qualities of

EMPATHY

Empathy pertains to looking at events or situations from

the others’ point of view.
The HR manager should learn to view the issues affecting the
employees from their perspective too.
He should not only rely on his formal authority in dealing
with the employees’ grievances but use his informal
relationship as well in settling them
He should honour others’ opinions, sentiments, rights,
beliefs and values.

9 Line Versus
 in the process of acquiring, training and assessing the employees of their
Staff Authority of HRM own department.
Line managers handle all aspects of HR activities in small organizations.
While in large organizations, the top management normally
establishes an exclusive HR department to develop and manage HR
Staffing, which is one of the managerial functions, is generally
programmes and policies.
performed by all managers because the managers are normally involved

Line Versus
9
Staff Authority of HRM
The line managers in these firms seek the advice of the HR department in handling
labor-related matter
Gary Dessler classified the line managers’ responsibilities into:
Placing the right person on the right job
Starting new employees on the organization (orientation)
Training the employees for jobs that are new to them
Improving the job performance of each person
Gaining creative cooperation and developing smooth working relationships
 Interpreting the policies and procedures of the company
Controlling labor costs
Developing the abilities of each person
Creating and maintaining the department morale
Protecting the employees’ health and physical condition

Line Versus
9
Staff Authority of HRM
When an organization has separate functional HR departments, the HR
managers have to perform the task of line managers for their own department and act as staff
advisors for line managers of other departments.
Important terms concerned with line versus staff authority:
Authority- refers to the right to influence the activities of the subordinates or take decisions
concerning them and to issue instructions or orders pertaining to their work. Line Manager - directly
responsible for accomplishing the departmental goals and corporate objectives. (Ex. line managers are
production manager, purchase manager and sales manager.)
Staff Advisor - play an important role in advising and assisting the line managers in
accomplishing the basic goals. Theoretically, the suggestions given by the
staff advisor to the line managers may or may not be accepted by the latter

The Future Role of HRM

Change in the

Nature of WorkWidening Scope of HR Activities Change in Labor

Market Conditions

Increasing Importance of High Performance Work

Systems (HPWS)
Growing Need for
Measurement Tools to
Evaluate HR Programmes
BA CORE 5
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ForListeni
ng!