Chapter 1

Introduction to Human
Resource Management
 After reading this chapter, you
should be able to:
 Understand the meaning of human
resources.
 Define the objectives, scope and functions of
Human Resource Management.
 Differentiate between Human Resource
Management (HRM) and Personnel
Management (PM).
 Enumerate the qualities of HR managers.
 Discuss the future role of Human Resource
Management.
Human resources: meaning

Human resources means the

collection of people and their
characteristics at work. These are
distinct and unique to an organization
in several ways.
Why and how human
resources (HR) are superior to
physical resources
 HR alone appreciates over a period.
 HR achieves in higher performance

output than its actual input.

 HR brings value to all other assets.

 Operational flexibility is possible with

HR.
Human resource management:
meaning
Human resource management is
concerned with policies and practices
that ensure the best use of the human
resources for fulfilling the
organizational and individual goals.
Functions of human resource
management
Operative functions of HRM
Scope of human resource
management
 Personnel or labour aspect deals with
HR planning, recruitment, selection,
placement, training and development,
remuneration, etc.
 Welfare aspect deals with working

conditions and amenities such as

canteen, rest-rooms, etc.
Scope of human resource
management (contd.)
 Industrial relations aspect deals with
union–management relations like
collective bargaining, grievance and
disciplinary actions, etc.
Scope of human resource management (contd.)

The scope of Human Resources Management

extends to:
 All the decisions, strategies, factors,
principles, operations, practices, functions,
activities and
methods related to the management of people
as employees in any type of organization.
 All the dimensions related to people in their
employment relationships, and all the
dynamics that
flow from it
 Personal Management
 Personnel management can be defined as obtaining, using and
maintaining a satisfied workforce. It is a significant part of
management concerned with employees at work and with their
relationship within the organization.

 According to Flippo, “Personnel management is the planning,

organizing, compensation, integration and maintainance of people
for the purpose of contributing to organizational, individual and
societal goals.”

 According to Brech, “Personnel Management is that part which is

primarily concerned with human resource of organization.”
Difference between HRM and
PM
 HRM is proactive in nature while PM is
reactive.
 HRM is a resource-centred activity

whereas PM is a employee-centred
activity.
 HRM emphasizes on flexible, open-

ended contracts but PM emphasizes

the strict observance of defined rules,
procedures and contracts.
Difference between HRM and
PM (contd.)
 HRM views better performance as a
cause of job satisfaction whereas PM
considers job satisfaction as a source
of better performance.
 HRM seeks to develop the

competencies of the employees on a

sustained basis while PM is a regular,
status quo–based administrative
function.
Qualities of an HR manager

 Knowledge
 Intelligence

 Communication skills

 Objectivity and fairness

 Leadership and motivational qualities

 Emotional maturity and

 Empathy
The future role of HRM

 Change in the nature of work.

 Widening scope of HR activities.

 Greater emphasis on HRIS.

 Change in labour market conditions.

 Increasing importance of high

performance work systems (HPWS).

 Growing need for measurement tools

to evaluate HR programmes.
 Nature of HRM
 1. HRM Involves the Application of Management
Functions and Principles. The functions and principles are
applied to acquiring, developing, maintaining and providing
remuneration toemployees in organization.
 2. Decision Relating to Employees must be Integrated.
Decisions on different aspects of employees must be
consistent with other human resource (HR) decisions.
 3. Decisions Made Influence the Effectiveness of an
Organization. Effectiveness of an organization will result in
betterment of services to customers in the form of high
quality products supplied at reasonable costs.
 4. HRM Functions are not Confined to Business
Establishments Only but applicable to nonbusiness
organizations such as education, health care, recreation and
like.
Objectives of HRM
 1) Human capital : assisting the organization in obtaining
the right number and types of employees to fulfill its
strategic and operational goals
 2) Developing organizational climate: helping to create a
climate in which employees are encouraged to develop and
utilize their skills to the fullest and to employ the skills and
abilities of the workforce efficiently
 3) Helping to maintain performance standards and increase
productivity through effective job design; providing
adequate orientation, training and development; providing
performance-related feedback; and ensuring effective two-
way communication.
 4) Helping to establish and maintain a harmonious
employer/employee relationship
 5) Helping to create and maintain a safe and healthy work
environment
6) Developing programs to meet the economic,
psychological, and social needs of the employees and
helping the organization to retain the productive
employees
7) Ensuring that the organization is in compliance with
provincial/territorial and federal laws affecting the
workplace (such as human rights, employment equity,
occupational health and safety, employment standards,
and labour relations legislation). To help the organization
to reach its goals
8) To provide organization with well-trained and well-
motivated employees
9) To increase the employees satisfaction and self-
actualization
10) To develop and maintain the quality of work life
11) To communicate HR policies to all employees.
12) To help maintain ethical polices and behavior.
The above stated HRM objectives can be summarized under
four specific objectives: societal, organizational, and
functional and personnel.
1) Societal Objectives: seek to ensure that the organization becomes
socially responsible to the needs and challenges of the society while
minimizing the negative impact of such demands upon the organization.
The failure of the organizations to use their resources for the society’s
benefit in ethical ways may lead to restriction.
2) Organizational Objectives: it recognizes the role of HRM in bringing
about organizational effectiveness. It makes sure that HRM is not a
standalone department, but rather a means to assist the organization with
its primary objectives. The HR department exists to serve the rest of the
organization.
3) Functional Objectives: is to maintain the department’s contribution at a
level appropriate to the organization’s needs. Human resources are to be
adjusted to suit the organization’s demands. The department’s value
should not become too expensive at the cost of the organization it serves.
4) Personnel Objectives: it is to assist employees in achieving their
personal goals, at least as far as these goals enhance the individual’s
contribution to the organization. Personal objectives of employees must be
met if they are to be maintained, retained and motivated. Otherwise
employee performance and satisfaction may decline giving rise to
employee turnover.
Role of HRM
Pat Mc Lagan has suggested nine roles that are played by HR practitioners
1. To bring the issues and trends concerning an organization’s external
and internal people to the attention of strategic decision makers and to
recommend long term strategies to support organizational excellence and
endurance.
2. To design and prepare HR systems and actions for implementation so
that they can produce maximum impact on organizational performance
and development.
3. To facilitate the development and implementation of strategies for
transforming one’s own organization by pursuing values and visions.
4. To create a positive relationship with the customer’s by providing them
with the best services; to utilize the resources to the maximum and to
create commitment among the people who help the organization to meet
the customers needs whether directly connected or indirectly connected
to
the organization.
5. To identify the learning needs hence to design and develop structured
learning programmes and materials to help accelerate learning for
individuals and groups.
6. To enable the individuals and groups to work in new
situations and to expend \and change their views so that
people in power move from authoritarian to participative
models of leadership.
7. To help employees to assess their competencies, values
and goals so that they can identify, plan and implement
development plans.
8. He also assists the individual employee to add values in the
workplace and to focus on the interventions and interpersonal
skills for helping people change and sustain change.
9. He assesses the HRD practices and programmes and their
impact and to communicate results so that the organization
and its people accelerate their change and development.
According to Dave Ulrich HR play’s four key roles.
1. Strategic Partner Role-turning strategy into
results by building organizations that create value;
2. Change Agent Role- making change happen,
and in particular, help it happen fast
3. Employees Champion Role—managing the
talent or the intellectual capital within a firm
4. Administrative Role—trying to get things to
happen better, faster and cheaper.
 Case Study
 On October 3, 2003, Anant Dalvi and Akhtar Khan, who worked as
contract workers in Tata Electric Company until they were laid off in
1996, doused themselves with kerosene and set themselves ablaze
even as their co-workers protested before the company’s offices. While
Dalvi died on the spot, Khan died a few days later.
 The Tata Electric Company said they were no longer on their payroll and
were not permanent workers. Employees union had taken up their case
and filled petition in the Labour Court before their contracts were
terminated. The court directed the company not to terminate their
services without following the due process of law. Despite this their
services were terminated on June 30, 1996.
 The company union promised the workers that they would renegotiate.
Yet on the night before they killed themselves when Khan and Dalvi
spoke to the union leader Shinde, they were told that nothing more could
be done for them. It is this that led them to take their lives. Dalvi has
been in service as apeon for17 years and Khan had been employed for
19 years. But their services were not regularized. Such workers draw
salary much less than the permanent employees.