INTRODUCTION

TO
HUMAN RESOURCE MANAGEMENT

UNIT : 1
 ‘EMPLOYEES ARE THE MOST IMPORTANT ASSET
OF THE ORGANIZATION’

HRM defined as

“HRM is management function concerned with hiring ,

motivating and maintaining people in an organization. It
focuses on people in organization”
 Human Resource Management
Definition:

The process of attracting, developing and

maintaining a talented and energetic workforce to

support organisational mission, objectives and

strategies.
 HRM: PEOPLES DIMENSIONS IN ORGANIZATIONS

 HRM: the application of management functions and principles

related to employees

 HRM functions applicable every where (not for profit and profit
driven organizations)

 Employees decisions are integrated

 Employee decision brings effectiveness/efficiency in

organization

 HRM includes all major activities in professional life of a worker

 All activities from employee entry to managing performance and

training until he or she leaves
Management of work force of an organisation i.e. how to
manage the different people working together in a organisation.

HRM is a management function that helps managers recruit, train

and develop members for an organisation.
EVOLUTION OF HR MGMT

SCIENTIFIC MANAGEMENT
Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth

INDUSTRIAL/ORGL PSYCHOLOGY
Munsterberg, Scott, Cattell

HUMAN RELATIONS MOVEMENT

Hawthorne Studies, Mayo, Follett, Lewin

GROWTH OF GOVERNMENTAL REGULATIONS

Wages (1930s), Unionization (1940s), Employment (1960s)

PROFESSIONALIZATION OF HR MANAGEMENT
Professional HR Societies & HRCI (Certification Institute)
 FUNCTIONAL AREAS WITHIN HR

EMPLOYMENT / STAFFING : Recruitment, Selection

TRAINING AND DEVELOPMENT: Appraisal, Education &

Development

COMPENSATION: Salaries, Wages & Benefits, Incentive Plans

EMPLOYEE RELATIONS: Grievance Resolution, Union

Relations

HR PLANNING AND RESEARCH: Forecasting, Job Analysis

Attitude Surveys, Validation
Studies
 HRM ACTIVITIES
 HR Planning
 Job Analysis and Design
 Recruitment and Selection
 Training and Development
 Remuneration
 Welfare
 Safe and Healthy Work Environment
 Industrial relations
 EMPLOYMENT / STAFFING

Staffing - Process through which organization ensures it always has proper

number of employees with appropriate skills in right jobs at right time to
achieve organizational objectives

Job analysis - Systematic process of determining skills, duties, and

knowledge required for performing jobs in organization

Human resource planning - Systematic process of matching the internal and

external supply of people with job openings anticipated in the organization over
a specified period of time .

Recruitment - Process of attracting individuals on a timely basis, in sufficient

numbers, and with appropriate qualifications, to apply for jobs with an
organization

Selection - Process of choosing from a group of applicants the individual best

suited for a particular position and the organization
 TRAINING AND DEVELOPMENT

• Training - Designed to provide learners with knowledge and skills needed for their
present jobs

• Development - Involves learning that goes beyond today's job; it has more long-term
focus

• Career development - Formal approach used by organization to ensure that people

with proper qualifications and experiences are available when needed

• Organization development - Planned process of improving organization by

developing its structures, systems, and processes to improve effectiveness and
achieving desired goals

• Performance management - Goal-oriented process directed toward ensuring

organizational processes are in place to maximize productivity of employees, teams,
and ultimately, the organization

• Performance appraisal - Formal system of review and evaluation of individual or

team task performance
 COMPENSATION

Direct Financial Compensation - Pay that person receives in

form of wages, salaries, bonuses, and commissions.

Indirect Financial Compensation (Benefits) - All financial

rewards not included in direct compensation such as paid
vacations, sick leave, holidays, and medical insurance.

Nonfinancial Compensation - Satisfaction that person receives

from job itself or from psychological and/or physical
environment in which person works.
 SAFETY AND HEALTH

 Employees who work in safe environment and enjoy good

health are more likely to be productive and yield long-
term benefits to organization.

 Safety - Involves protecting employees from injuries

caused by work-related accidents

 Health - Refers to employees' freedom from illness and

their general physical and mental well being
 EMPLOYEE AND LABOR RELATIONS

Private-sector union membership has fallen from 39 percent in

1958 to 7.8 percent in 2005.

Business is required by law to recognize a union and bargain with

it in good faith if the firm’s employees want the union to represent
them

Is the function of HR to control workers, or to help them and act

as their advocate?

Resolving personnel grievances and disagreements fairly in both

union and union-free environments
 SCOPE OF HRM

 Introduction to HRM

 Employee Hiring

 Employee Remuneration

 Employee Motivation

 Employee Maintenance

 Industrial Relations

 Prospects of HRM
 SCOPE OF HRM

Introduction
of
Prospects of Employee
HRM
HRM Hiring

Employee
Career Remuneration
Development HRM

Employee
Employee Motivation
IR Maintenance

Source: Aswathappa, 2008, p.6

 THE SEMANTICS

There two terms

 PM (Personnel Management )

 HRM (Human Resource Management )

 PM and HRM are different in scope and orientation

 HRM is broad concept

 PM and HRD (Human Resource Development) are part of HRM

 Differences Between HRM and PM
Dimensions Personnel Mgmt HRM

Employment contract Care full delineation of written Aim to go behind contract

contracts (indicate the exact position of )
Rules Importance of devising clear rules Can do outlook, impatience with rule

Guide to management action Procedures Business need

Behaviour referent Norms ,customs and practices Values and mission

Managerial task labor Monitoring Nurturing (care for and protect )

Speed of decision Slow Fast

Management role Transactional Transformational leadership

Communication Indirect Direct

Selection Separate ,marginal task Integrated, key task

Labour management Collective barraging contracts Individual contracts

Job categories and grade Many Few

Job design Division of labour Team work

Conflict handling Reach temporary truce Manage climate and culture

 OBJECTIVES OF HRM

The main objective of HRM is to ensure the availability of

willing and competent force to an organization.

There are other objective of HRM , namely:

 Societal objectives

 Functional objectives

 Organizational objectives

 Personal objectives
HRM FUNCTIONS AND OBJECTIVES

Societal Objectives

Organizational
Objectives

Functional
Objectives

Personal
Objectives
SOCIETAL OBJECTIVES:

• To be ethically and socially responsible to the needs and

challenges of the society while minimizing the negative
impact of such demands upon the organization.

• The failure of organizations to use their resources for the

society’s benefit in ethical way may lead to restrictions.

• For example, the society may limit HR decisions through

laws that enforce reservation in hiring and laws that
address discrimination, safety or other such areas of social
concern.
 ORGANIZATIONAL OBJECTIVES:

• To recognize the role of HRM in bringing about

organizational effectiveness.

• HRM is not an end itself. It is only a means to assist the

organization with its primary objectives.

• Simply stated, the department exist to serve the rest of the

organization.
 FUNCTIONAL OBJECTIVES:

 To maintain department contribution in organizational

effectiveness.
 HR department services must fit into the organizational
needs.

PERSONAL OBJECTIVES:

To assist employees in achieving their personal goals, at

least in so far as these goals enhance the individual’s
contribution to the organisation
 OBJECTIVES OF HRM

SOCIETAL OBJECTIVES: To be socially responsible to

the needs of the society.

ORGANISATIONAL OBJECTIVES: To recognize the role

of HRM in bringing about organisational effectiveness.

FUNCTIONAL OBJECTIVES: To maintain department’s

contribution at a level appropriate to the organization's needs.

PERSONAL OBJECTIVES: To assist employees in

achieving their personal goals, at least in so far as these goals
enhance the individual’s contribution to the organisation.
 FUNCTIONS OF HR

MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
Planning Staffing
Development
Organising
Compensation
Directing
Motivation
Controlling Maintenance
Integration
 OPERATIVE FUNCTIONS OF HR

STAFFING Job analysis, HRP, Recruitment,

Selection, Placement, Induction,
Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

Job design, Work scheduling, Job

COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
 OPERATIVE FUNCTIONS OF HR
(CONTD.)

Health, Safety, Welfare

MAINTENANCE

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation
 SCOPE OF HRM

Labour or Personnel aspect – Recruitment, Selection,

Transfer, Promotion etc.

Welfare aspect – Housing, Lunch room, Health and

Safety, Transport, education etc.

Industrial relation aspect – Union Management relations,

Negotiation, Grievance handling etc.
HRM ENVIRONMENT -
EXTERNAL

Technology

Professionalism Economic

HRM

Social & cultural Political & legal

Union
 HRM ENVIRONMENT - INTERNAL

Policies

HRM
Organisational
Mission
Conflict
 HRM POLICIES

Policy – is predetermined course of action established to

guide the performance of work towards accepted
objectives.

Importance :

(1) Clear Thinking

(2) Uniformity & Consistency of Admin.
(3) Sense of Security
(4) Control