Human Resource Management

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 According to L.F. Urwick, “Business houses are
made or broken in long run not by markets or
capital, patents or equipments but by men.”

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 Concept
• Human resource management means
management of people at work. HRM is the
process which binds people with
organizations and helps both people and
organization to achieve each others goal.
Various policies, processes and practices are
designed to help both employees and
organization’s to achieve their goal.

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 • Human Resources help in transforming the
lifeless factors of production into useful products.
• Human resources are valuable and a source of
competitive advantage.
• They are capable of enlargement i.e capable of
producing an output that is greater than the sum
of inputs.
• They can help an organization achieve results
quickly, efficiently and effectively.

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Meaning and Definitions of Human Resource
Management:
Human resource management is branch of
management that deals with people at work, it is
concerned with the human dimensions of
management of the organization.

According to Dessier, “Human resource

management is the process of acquiring,
training, appraising, and compensating
employees, and attending to their labour
relations, health, safety and fairness concerns.”

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Meaning and Definitions of Human Resource
Management

It is defined as the art of procuring,

developing and maintaining competent
workforce to achieve the goals of an
organization in an effective and efficient
manner.

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 Core Elements of HRM

Organizations ------ People ------ Management.

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 History of Human Resource Management

 Industrial revolution: Machines were brought into

production process, rapid progress in technology, jobs
were more fragmented, specialization increased, but
left workers with dull, boring , monotonous jobs. Govt.
did very little to protect the interest of the workers
 Scientific management: To improve efficiency and
speed, F W Taylor advocated scientific management.
Scientific management is nothing but systematic
analysis and breakdown of work into its smallest
mechanical elements and rearranging into most
efficient combination. Improtance of training was
also identified
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 Trade Unionism: Workers joined hands to protect
against the exploitive tendency of employers and
unfair labor practices. TU tried to improve work
conditions, pay and benefits, disciplinary actions
etc.
 Human relations movement: After Hawthorne
experiments conducted by Elton Mayo, it was
identified that productivity not only depends on
rewards, and the job design but also on certain
social and psychological factors also. Human relations
movement led to the implementation of behavioural
science techniques in industry.

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 Evolution of HRM Concept
Concept What is it all about?

The Commodity Labour was regarded as a commodity to be bought and sold.

concept Wages were based on demand and supply. Government did
very little to protect workers.

The Factor of Labour is like any other factor of production, viz,

Production concept money, materials, land, etc. Workers are like machine and
tools.

The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room
came into existence as it could have a positive impact on
workers’ productivity
The Paternalistic Management assumed a fatherly and protective attitude
concept/ Paternalism towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.

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 The Humanitarian To improve productivity, physical, social and psychological
concept needs of workers must be met. As Mayo and others stated,
money is less a factor in determining output, than group
standards, group incentives and security. The organization is a
social system that has both economic and social dimensions.

The Human Resource Employees are the most valuable assets of an organisation.
concept There should be a conscious effort to realise organisational goals
by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a

company. They should have a feeling that the organisation is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.

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FACTORS PERSONNEL HUMAN RESOURCES
M ANAGEM ENT MANAGEMENT

Approach Traditional Modern

Comparison Between Personnel
Focus Management
Organizational interest is and Human Resources
Development of the
important employee along with the
Management growth of the organization.
Meaning The aspect of management The branch of management
that is concerned with the that focuses on the most
work force and their effective use of the
relationship with the manpower, to achieve the
organization is known as organizational goals is
Personnel Management. known as Human Resource
Management.

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Treatment of manpower Machines or Tools Asset

Basis of Pay Job Evaluation Performance Evaluation

Communication Indirect/Restricted Direct

Decision Making Slow Fast

Goal accomplishment of accomplishment of

organization goals being organization and individual
emphasized goals

Concerned with Personnel management is Human resource

concerned with personnel management is concerned
manager with all level of managers
from top to bottom.

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Managerial Task Monitoring Nurturing

Job design Division of labour Teamwork

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 Corporate Objectives of HRM
 To procure right type of person for right job at right time.
 To employ the skills and abilities of the workforce
efficiently.
 To provide the organization with well trained and well
motivated employees
 To increase to the fullest the employee’s job satisfaction
and self actualization.
 To provide right kind of training to personnel to increase their
productivity.
 To ensure development of human resources by offering
opportunities for learning and advancement.
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• To identify and satisfy the needs of individuals
by offering various monetary and non
monetary rewards.
• To achieve and maintain high morale among
employees in the organization by securing
better relations.

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 Characteristics of HRM
• Comprehensive function.
• People oriented.
• Action oriented.
• Development oriented.
• Pervasive function.
• Continuous function.
• Future oriented.
• Challenging function.
• Science as well as art.
• Young discipline.
• Interdisciplinary.

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 Scope
The scope of HRM is Very wide
 Personnel Aspect: It is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion,
training and development, lay off and retrenchment,
remuneration, incentives, productivity etc.
 Welfare Aspect: It deals with working conditions and
amenities such as canteens, crèches, rest and lunch rooms,
housing, transport, medical assistance, education, health and
safety, recreation facilities etc.
 Industrial Relations Aspect : This covers union – management
relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes etc.

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 Functions of HRM

Managerial Functions

Operational functions

Advisory Functions

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 Managerial Function of HRM

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 Operational

Employee Relations,
Employment HR Development Compensation Mgt analytics and other
issues

Performance
HR Planning Job Evaluation
Appraisal

Recruitment Training Wage and Salary Admn

Management
Selection Incentives
Development

Career Planning
Placement Bonus
and Development

Induction Fringe Benefits

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 Advisory Function of HRM

Advisory Function

Advice to top Advice to

management departmental
heads

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 Importance of HRM
 At the enterprise level:

 Good HR practices help in attracting and retaining the

best people in the organization
 Developing the necessary skills and right attitude
amongst employees through training and promotion
practices.
 Securing willing cooperation of employees through
motivation, participation and grievance handling.
 Utilizing effectively the available human resources.
 Ensuring that the enterprise will have in future a team of
competent and dedicated employees.

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  At Individual level
Effective management of human resources helps to improve the
quality of work life. It permits team work among employees by
providing a healthy working environment. It contributes to
professional growth in the following ways:
1. Providing maximum opportunity for personal development of
each employee.
2. Maintain healthy relationship among individuals, and different
work groups.
3. Allocating work properly.
4. It offers excellent growth opportunities to people who have
potential to rise
5. It allows people to work with diligence and commitment.

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 At the society level:
Sound human resources management has a great
significance for the society. It helps to enhance the
dignity of the labour in the following ways:
 Provides suitable employment that provides social and
psychological satisfaction to people.
 Maintaining a balance between the job available and job
seekers in terms of numbers, qualification, needs and
aptitudes.
 Scarce talents are put to best use.

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 Roles of HR Manager
• Advisory role
• Decision making role
• Representative role
• Mediator role
• Leadership role
• Welfare role
• Problem solver
• Change agent
• Legal role
• Counselor
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 HR Management Competencies
• Quick decision maker
• Good listener
• Realistic
• Negotiation skills
• Conflict management
• Trust building
• Coaching
• Team building
• Motivation
• Political cultural awareness
• Influencing
• communication

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 Human capital in Organization
Human capital is the sum total of a person's
knowledge and skills that the company can
use to further its goals.

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 Organization & Responsibility of HR
department
1. Recruit candidates
2. Hire the right employees
3. Process payroll
4. Conduct disciplinary actions
5. Update policies
6. Maintain employee records
7. Conduct benefit analysis
8. Providing career growth
9. Offering continuing education
10. Training and supporting managers
11. Supporting health and wellness

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