HUMAN RESOURCE

MANAGEMENT

Definition
HRM is the 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 B. Flippo

MEANING
HRM is defined as the process of acquiring,

training, and compensating employees, and of

attending to their labor relations, health and
safety and fairness concerns.
It is the art of procuring, developing and
maintaining competent workforce to achieve
the goals of an organization in an effective
and efficient manner.

NATURE
Pervasive Force- it is present in all

enterprises and permeates at all levels in an

organization.
Action Oriented- it focuses on action rather
than on record keeping.
Individually Oriented- it encourages each
member as an individual to develop their
potential fully.

Contd
People Oriented- it tries to put people on

assigned jobs in order to produce excellent

results.
Future Oriented- it prepares people for
current as well as future challenges.
Development Oriented
Integrating Mechanism- it tries to integrate
human assets in an organization.

Contd
Interdisciplinary Function- it utilizes

knowledge and inputs drawn from psychology,

sociology, anthropology, economics etc.
Continuous Function- it requires a constant
alertness and awareness of human relations
and their importance in every day operations.

Scope
Personnel Aspect

Contd
Personnel Aspects- it is concerned with

manpower planning, recruitment, selection,

placement, transfer, promotion, training &
development, layoff and retrenchment,
remuneration, incentives, productivity, etc.
Welfare Aspect- It deals with the working
conditions and amenities such as canteens,
rest and lunch rooms, housing, transport,
medical assistance, education, health &
safety, recreation facilities etc.

Contd
Industrial Relations Aspect- it covers union-

management relations, collective bargaining,

grievance and disciplinary procedures,
settlement of disputes, etc.

FUNCTIONS OF HRM
MANAGERIAL FUNCTIONS

Contd
MANAGERIAL FUNCTIONS

Procurement
Job Analysis
Human Resources planning (HRP)
Recruitment
Selection
Orientation
Internal Mobility

Development
Training
Career planning
HRD

Motivation &
Compensation
Job Design
Motivation
Job Evaluation
Performance Appraisal
Compensation Administration

Maintenance
Health & Safety
Employee welfare
Social Security Measures

Integration Function
Grievance Redressal
Discipline
Collective Bargaining
Employee Participation
Trade Unions

Emerging Issues
Human Resource Audit
Human Resource Research
Human Resource Accounting
HRIS

OBJECTIVES OF HRM
SOCIETAL OBJECTIVES

Contd
PERSONAL OBJECTIVES- These objectives

assist employees in achieving their personal

goals so as to enhance the individuals
contribution to the organization.
FUNCTIONAL OBJECTIVES- These objectives
remind HRM that it has only functional value
and should not become too expensive at the
cost of the organization it serves. It saves
resources from being wasted.

Contd
ORGANISATIONAL OBJECTIVES- They help to

recognize the role of HRM in bringing about

organizational effectiveness and to meet the
organizational goals .
SOCIETAL OBJECTIVES- These objectives seek
to ensure that the organization becomes
socially responsible and to manage human
resources in an ethical manner by compliance
with legal standards.

Contd
OTHERS
To help the organization reach its goals
To employ the skills and abilities of the

workforce
To provide the org. with well trained and well
motivated employees
To communicate HR policies to all employees
To increase the level of job satisfaction

DIFFERENCE BETWEEN PERSONNEL MANAGEMENT &

HRM
DIMENSIONS

PERSONNEL
MANAGEMENT

HUMAN
RESOURCE
MANAGEMENT

1) Employment
Contract

Careful delineation
of written contract

Aim to go beyond
contract

2) Rules

Importance of
devising clear rules

Can do outlook

3) Managerial Task
in relation to labor

Monitoring

Nurturing

4) Speed of
decision

Slow

Fast

5) Management
Role

Transactional

Transformational

Contd
DIMENSIONS

PM

HRM

6) Communication Indirect

Direct

7) Pay

Fixed grades

Performance
related

8) Job Design

Division of Labor

Teamwork

9) Respect for
Employees

Labor is treated as People are treated

a tool
as assets

10) Evolution

Precedes HRM

Latest in the
evolution

11) Conflict
handling

Reach temporary
truce

Manage climate
and culture

12) Organizational Centralized

Control

Decentralized

Internal Environment influence on HRM

CORPORATE MISSION, PHILOSOPHY & CULTURE
Who are we and what are we trying to accomplish?

CORPORATE STRATEGIES AND OBJECTIVES

Grand and Competitive Strategies

ORGANIZATION POLICIES AND PROCEDURES

Bureaucratic vs Organic? Is Discretion Encouraged?

TASKS, POSITIONS & WORK GROUPS

The Organizational Chart

LEADERSHIP STYLES

Environment of Human Resource Management

Customers

Safety and
Health

Competition

Co m
pen
sati
on

Human
Resource
Manageme
1
nt

Hu
m
De an
ve Re
lo s o
pm u
en rce
t

Other
Function
al Areas

1-25

Labor

Shareholder
s

Finance

ng

Operatio
ns

Unanticipated
Events

Legal Considerations

affi
t
S

and
y e e i on s
plo
t
Em r Rela
o
Lab

Economy

Marketi
ng

Society

Technology

EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT

Unions

Evolution of HRM:
Industrial Revolution
Trade Unionism
Social responsibility era
Scientific Management Era
Human Relations Era
Behavioural Science Era
System Approach Era
Contingency Approach Era

Industrial revolution
The seed of HRM were sown during Industrial
revolution 1850s in Western Europe and
USA.The wind gradually reached to India in
beginning of 20th century.During this period:Machines were bought in
Technology made rapid progress

Contd.
Workers were treated like machine tools
Employers were keen to meet production

targets rather than satisfy workers.

Govt. didi very little to protect the interests of
workers.

Trade Unionism:This was the period when state intervention to

protect the workers interest was felt
necessary. During this period:Workers started to form their associations.
Trade Union Act, 1926 was passed in India.

.
The basic philosophy was to safeguard
workers interest and to sort out their
problems like:Child labour
Long hours of work
Poor working conditions.
The unions used strikes,lockouts etc as
weapons for acceptance of their problems.

These activities of trade unions gave

rise to personnel practices such as:Collective bargaining
Grievances redrassal
Arbritration
Employee benefits programs
Installation of rational wage structures.

Social Responsibility era:Robert Owen,a British industrialist is considered

to be the first to adopt haumanistic and
paternalistic approach. He viewed that the
social and economic environment influence
the physical , mental and psychological
development of workers.

His philosophy was that owner is like a father

and worker is like a child.He practised the
following:Provision for reduced working hours
Housing facilities
Education of workers and their children
He admired for giving human treatment to

workers.

Scientific Management
era:This concept was introduced by Fredrick
Winslow Taylor in USA early in 20th
century.he developed following four
principles:Use of scientific methods in setting work
stds.
Scientific selection and placement of
workers best suited for the tasks. Also
provision for training.

Contd.
Clear cut division of work and responsibility

between management and workers.

Harmonious relations and close cooperation
with workers.
His study focused physical characteristics of the
human body as it responds to routine and
clearly defined jobs.

He developed following techniques for

the same:-Time study
Motion study
Standardization of tools, equipments and

machinery and working conditions

incentive wage plan with differential piece
rate of wages.

Human Relations era:This particular period focused on the

feelings,attitude and needs of the workers as
human beings.Between 1925 and 1935 Hugo
Munsterberg, a psychologist suggested the
use of psychology in selection, placement,
testing and training the employees in an
organisation.

Between 1924 to 1932,Elton Mayo conducted a series

of experiments at hawthorne plant of western electric
company in USA.main findings were:-

Physical environment should be good

Favourable attitudes of workers and work

team towards their work

Fulfillment of workers social and
psychological needs
Workers can be motivated through job
security,right to express their opinion on
matters related to them.

Behavioural science era:It was concerned with social and

psychological aspects of human behaviour.
Some of imp elements were:Individual behaviour is linked with group
behaviour
Informal leadership rather than formal
leadership
Motivation by self control and self
development
Improving efficiency through Self
operating

Systems approach era:

Technical subsystem : formal relationships.
Social subsystem : informal group relations
Power subsystem : exercise of power

Contingency approach
era:According to contingency,the best way to
manage varies with situation.
There may not be the universal way of
managing all the situations.
It is imperative for managers to analyse
different situations and then use the best
suitable in that particular situation.