Module 1

Human Resource Management

 Introduction
• It is concerned with selection of right person, at
the right place for the right job and management
of people from Recruitment to Retirement.
• Organizations are people oriented
– acquiring their services, developing their skills ,
motivating them to higher levels of performance and
– ensuring that they continue to maintain their
commitment to the organization are essential to
achieving organizational objectives.
 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. – Edwin Flippo

• “HRM is the function performed in organizations

that facilitates the most effective use of people to
achieve organizational and individual goals.”
– Ivancevich and Glueck
 Objectives of HRM
a. Societal objectives:
– Ensure that their orgn. manages human resources
in an ethical and socially responsible manner
– ensuring compliance with legal and ethical
standards.
– minimize the negative impact of societal demands
upon the orgn.
• Organizational objectives:
– HR dept should focus on achieving goals of the
orgn.
– HR dept should recognize its role in bringing in
organization effectiveness.
– HRM is the means to assist the orgn. with its
primary objective of ensuring satisfactory
accomplishment of the objectives of orgn.
• Functional Objectives:
– The dept’s level of service must be tailored to fit
the orgn’s. needs.
– HRM should aim at providing the orgn. with well
trained and well motivated employees
– HRM should employ the skills and abilities of the
workforce efficiently and aim at making people
strengths productive and to benefit orgn.
• Personnel Objectives:
– HRM should increase employees job satisfaction
– It should meet the self actualization needs of the
employees
– It should assist the employees in achieving the
personal goals.
– should maintain the Quality of work life
 Nature of HRM
• Pervasive function: performed by all managers at various
levels
• Action oriented: employee problems are solved rationally
• Individual oriented:
• People oriented: optimum arrangement between individual,
jobs, orgn. and environment
• Future oriented
• Development oriented: trg provided, job rotation
• Continuous process
• Interdisciplinary
• Directed towards achievement of objectives
• Comprehensive function: covers all type of individuals
 Scope of HRM
• Personnel aspect:
– is concerned with HRP, recruitment, selection,
placement, transfer, promotion, T &D, layoff and
retrenchment, remuneration, incentives
• Welfare aspect:
– deals with working conditions and amenities such as
canteens, creches, rest and lunch rooms, housing ,
transport, medical assistance, education, health and
safety, recreation facility
• IR aspect:
– union mgt relations, collective bargaining, grievance and
disciplinary procedures, settlement of disputes
 Importance of HRM
• Good HR practices helps in attracting and retaining the
best people in the orgn.
• Helps people for challenging roles, developing right
attitudes towards the job and the company, developing
loyalty and commitment
• It promotes team work and team spirit among
employees
• Offers excellent growth opportunities to people
• Allows people to work with commitment
• Employment opportunities multiply
• Scarce talent are used to best use
 Functions of HRM
• Managerial Functions:
– Planning
– Organizing
– Directing
– Controlling
• Operations Functions:
– Procurement function: job analysis, HRP, Recruitment, Selection,
Placement, Induction and orientation, internal mobility
– Development : training, executive development, career planning
and development
– Motivation and compensation: job design, work scheduling,
motivation, job evaluation, performance appraisal, compensation
administration, incentives and benefits
– Maintenance : health and safety, employee welfare, social
security measures
– Integration function: grievance redressal, discipline, teams and
teamwork, collective bargaining, employee participation and
empowerment, trade union and employee association, IR
– Emerging issues; HRIS, IHRM, HR accounting, stress and
counseling
Principles of HRM / 10 C Model
 Evolution of HRM
• Various stages HRM
– The Commodity Concept:
• Guild system was in operation
– It is closely knit group of workers, concerned with selecting, training,
rewarding and maintaining workers
– Industrial revolution gave rise to factory system
• Place of work was shifted from residence to factory and the
management became separate from ownership
• Close relationship between employees and owners were broken
• Labour began to considered as a commodity to be bought and
sold
• Wages were based on demand and supply
• Govt. did little to protect the workers
• The factor of production concept:
– Employees are considered a factor of production
just like land, materials and machines.
– F W Taylor in his scientific management stressed
proper selection and training of employees to
maximise production.
– Employees gained better working conditions and
earnings.
• Paternalistic approach:
– Based on the belief that Management must
assume fatherly and protective attitude towards
employees.
– Formed trade union
– Due to all these, employers began welfare
schemes like health facilities, housing facilities,
group insurance scheme, recreation facilities
– Both employer and employee both began to
realize the importance
• Humanitarian Concept
• To improve productivity, physical, social and
psychological needs musts be met
– as elton mayo stated money is not a factor in
determining output than group standard, group
incentive and group security.
• Behavioral Human Resource Concept:
– Based on the belief that employees are asset of an
orgn.
– efforts should be made to integrate employees
with orgn. so that orgnal. Needs and employees
aspirations can be achieved.
– shift to two way communication, management by
objectives, role of informal groups etc.
• Emerging concept:
– Aims at creating a feeling among workers that the
orgn. is their own.
– employees should be accepted as partners in the
progress of the orgn.
– Better working life should be provided and offer
opportunities to exploit their full potential
– focus on HRD