Concepts of

HRM
 HRM is basically a search for “best
practices” to generate high levels of
employee commitment and performance.
• Rational or economic view of
employment
• Social or psychological view of
employment
 Definition
• “HRM is the process of acquiring, training,
appraising, and compensating employees, and
attending to their labor relations, health, safety
and fairness concerns. -Dessler.
• “Personnel Management is the planning,
organizing, directing, and controlling of the
procurement, development, compensation,
integration and maintenance and separation of
human resources to the end that individual and
societal objectives are accomplished.”…
Edwin B. Flippo
 The Term ‘Human Resource
Management’
• The changes of 1970 brought about the
changes in term from personnel management
to Human Resource Management.
It was because of :
• Technological changes
• Declining importance of trade unionism
• Shift from industrial to service sector
employment.
 Cont……
• Growing competition
• Globalization of economies.
 Difference between hrm
and personnel management
On the basis of HRM PERSONNELL
MANAMENT
FOCUS Development in Organizational
individuals interest

Philosophy Humanization of Managing personnel

management

Nature of Function Part and parcel of Staff function

every line function

Pervasiveness Concern of all Concern of the

managers (top to personnel managers
bottom)

Motivation Concentrates on Concerned only for

 Evolution of HRM
• The industrial revolution
• Trade unions
• Scientific management
• Industrial psychology
• Human relation movement
• Behavioral science
 Nature of HRM
1. Inherent part of Management
2. Pervasive Function
3. Basic to all Functional area
4. People centered
5. Personnel activities or Functions
6.Continuous process
7. Based on human relation
 Scope of HRM
1.Man power planning
2.Recruitment, selection and placement
3.Training and development
4. Performance appraisal
5. Motivation of workers (monitory or non
monitory)
6. Remuneration of employees
7. Social security
8. Review and audit of personnel policies,
procedures and practices
 Recruitment or Selection of
Downsizing Employees

HR Planning Orientation

Competent
High-Performing Training and
Workers Development

Compensations Performance
and Benefits Appraisals

Safety and
Health
 The
The Staffing
Maintenance
Function
Function

Human
Resource
Management

The Training &

The Motivation
Development
Function
Function
 Objectives of HRM
• To create and utilize an able and motivated workforce, to
accomplish the basic organizational goals.

• To establish and maintain sound organizational structure and

desirable working relationships among all the members of the
organization.

• To secure the integration of individual or groups within the

organization by co-ordination of the individual and group
goals with those of the organization.

• To create facilities and opportunities for individual or group

development so as to match it with the growth of the
organization.
 Objectives of HRM
• To attain an effective utilization of human resources in the
achievement of organizational goals.

• To identify and satisfy individual and group needs by

providing adequate and equitable wages, incentives, employee
benefits and social security and measures for challenging
work, prestige, recognition, security, status.

• To maintain high employee morale and sound human relations

by sustaining and improving the various conditions and
facilities.

• To strengthen and appreciate the human assets continuously by

providing training and development programs.
 Objectives of HRM
• To consider and contribute to the minimization of socio-
economic evils such as unemployment, under-employment,
inequalities in the distribution of income and wealth and to
improve the welfare of the society by providing employment
opportunities to women and disadvantaged sections of the
society.

• To provide an opportunity for expression and voice to

workers’ demands.

• To provide fair, acceptable and efficient leadership.

• To provide facilities and conditions of work and creation of

favorable atmosphere for maintaining stability of employment.
 Functions of Human Resource
Manager
Functions of Human Resource Manager

Operative:
1.Employment
Managerial
2.Training &
1. Planning Development Advisory:
2.Organizing 3.Remuneration 1.Advice to top
3.Directing 4. Working management
Condition
4.Controlling 2. Advice to
5. Motivation departmental
6. Personnel heads
records
7. Industrial
Relations
8. Separation
 Role of HR Manager
Personnel Role Welfare Role Clerical Role First-Fighting Legal
Role

Advisory: Advising Research in Personnel Time Keeping Grievance handling

mgrs. on effective & Organizational
use of HR. Problems.

Manpower Planning: Managing services: Salary & wage admin: Settlement of dispute
Recruitment, canteen, transport, incentives etc.
selection etc. medical etc.

Trg. & Development Group Dynamics: Maintenance of HR Discipline

Group counseling, records Maintenance
Motivation,
leadership,
Trends in HRM
• People centric organisations
• Six Sigma practices
• BPR
• Outsourcing
• Flexitime
• Employee leasing
• Job Sharing
• Telecommuting
• Compressed Workweek
• Abbreviated schedule
• Retention strategy
 Impact of flexible work
arrangements

• Produces measurable improvements in

individual and team performance;
• Reduce stress on employees and more fully
engage them in accomplishing organization
goals;
• Strengthen a results-focused, inclusive
management culture.