HUMAN RESOURCE

MANAGEMENT

Definitions
Human Resources:
The knowledge ,skills ,creative abilities
,talents ,and aptitudes of an organizations
workforce, as well as the values ,attitudes and
beliefs of the individuals involved.
Human Resource Management:
A strategic and coherent approach to the
management of an organisation`s most valued
assets-the people working there who
individually and collectively contribute to the
achievement of its objectives.

Nature of HRM
Pervasive Force
Action oriented
Individually oriented
People oriented
Future oriented
Development oriented
Integrating Mechanisms
Auxiliary Function

Scope of HRM
Personnel aspect:
This is concerned with manpower planning, recruitment ,
selection ,placement ,transfer ,promotion, training and
development ,lay off and retrenchment ,remuneration ,
incentives etc.
Welfare aspect:
It deals with the working conditions and amenities such
as canteens, crches ,rest and lunch rooms ,housing ,
transport ,medical assistance, education ,health etc.
Industrial relations aspect:
This covers union management relations, joint
consultation, collective bargaining, settlement of disputes
,etc.

Objectives of HRM
To help the organization reach its goals.
To employ the skills and abilities of the workforce

efficiently.
To provide the organization with well trained and
well motivated employee.
To increase to the fullest the employees job
satisfaction.
To develop and maintain a quality of work life.
To communicate HR policies to all employees.
To be ethically and socially responsive to the needs
of the society.

Functions of HRM

Systems Approach to HRM

Organizational
Objectives and
Goals
People and Skills

HR Planning
Compensati
on,
Promotion
Performanc
e Appraisal

Recruitment
and Selection

Orientation
and Training

Legal and regulatory

environments

Competition
for

Case let- 1
A large industrial group of several companies engaged
in manufacturing and marketing of various products has
several manufacturing units in various locations in
India. The various products of these companies had
been enjoying reasonably good market share, some of
them being leading brands during the past several
decades. However, most of these products have been
losing market share for the past two-three years. A few
of them in particular are threatening the survival of the
group itself. These companies which were established in
the 1960s have obsolete technology and a huge
surplus, largely unskilled and aging workforce.
Moreover, there are no clear-cut personnel policies and
even the personnel department is headless for over two
years.

Case let 1(Cont.)

Identify the major problem in the above

case.
How far the overhaul of the HR system can
bail out the group from the present crisis?
What role can a dynamic Human Resource
Manager play for revitalizing the industrial
group?

History of HRM

Industrial Revolution
Industrial Revolution consisted of the development of
machinery, linking of power to machines and
establishment of factory system and mass production.
Characterized by rapid technological change and
increased specialization.
Increased mechanization made jobs routine and
monotonous.
Trade Unionism
Workers formed their unions to improve their lot.
The underlying philosophy was that through collective
support management could be forced to redress their
grievances.

History of HRM (Cont.)

Scientific Management
It led to professionalization of management,
human engineering, etc.
The focus was more on technology and not on
human factor in industry.
Industrial Psychology
Industrial Psychologists stressed matching
employee skills with jobs.
Advances took place in selection ,placement
,testing ,training, etc.

History of HRM(Cont.)
Human Relations Movement
Hawthorne experiments and subsequent research
focused attention on the attitudes and feelings of
workers and their influence on productivity.
Behavioural Sciences
Research in behavioral sciences like anthropology,
sociology, psychology, etc. has provided subject
matter of human resource management.
It led to the development of new techniques of
motivation ,leadership, job enrichment, employee
participation.

History of HRM (Cont.)

Human Resource Specialist and Employee
Welfare
With the dawn of welfare era ,scope of human
resource management increased.
It is not only concerned now with recruitment ,
selection and training of employees.
It manages employee benefit programmes and
industrial relations system in industry.

Evolution of the Concept of HRM

The Commodity Concept
Labour was regarded as a commodity to be bought and
sold. Government did little to protect the interest of the
workers.
The Factor/Production Concept
Labour is like any other factor of production ,viz money,
materials ,land ,etc. Workers are like machines.
The Goodwill Concept
Welfare measures like safety ,first aid, lunch room, rest
room will have a positive impact on workers productivity.
The Paternalistic Concept

Evolution of the Concept of

HRM(Cont.)
The Humanitarian Concept

To improve productivity , physical, social ,and

psychological needs of the workers must be met.
The Human Resource Concept
Employees are the most valuable assets of an
organization.
The Emerging Concept
Employees should be accepted as partners in the
progress of a company. The focus should be on
Human Resource development.

Growth of HRM in India

Period

Emphasis

Status

Roles

1920-30

Welfare
Management ,
Paternalistic
Practices

Clerical

Welfare
administrator
Policeman

1940-60

Expanding the
role to cover
labour
,Welfare ,
Industrial
Relations

Administrative

Appraiser
Advisor
Mediator
Legal Advisor
Fire Fighting

1970-80

Emphasis on
human values ,
aspirations ,
dignity,
usefulness

Developmental

Change Agent
Integrator
Trainer
Educator

Growth of HRM in India

1990-2000

Incremental
Proactive,
productivity
growthgains through oriented
human assets

Developer
Counsellor
Coach

Post 2000

Aggressive cost Fight for survival Compete with

cutting in order
the best and
to compete in a
win
global
environment

Difference between HRM and PM

Dimension

Personnel
Management

Human Resource
Management

1. Employment
Contract

Careful delineation of
written contracts

Aim to go beyond
contract

2. Rules

Importance of
devising clear rules

Can do outlook ,
impatience with the
rule

3. Guide to
management action

Procedures

Business Need

4. Behaviour referent

Norms/customs and
practices

Values/mission

5.Managerial Task

Monitoring

Nurturing

6.Key Relations

Labour Management

Customer

7.Initiatives

Piecemeal

Integrated

8.Speed of Decision

Slow

Fast

9.Management Role

Transactional

Transformational
Leadership

10.Communication

Indirect

Direct

Difference between HRM and PM

Dimensions

Personnel
Management

Human Resource
Management

11.Pay

Job Evaluation(Fixed
Grades)

Performance Related

12.Job Design

Division of labour

Team Work

13.Respect for
employees

Labour is treated as a
tool which is
expendable and
replaceable

People are treated as

assets to be used for
the benefit of an
organization ,its
employees and the
society as a whole.

14.Shared interests

Interests of the
organization are
uppermost

Mutuality of Interests

15.Evolution

Precedes HRM

Latest in the
evolution of the
subject

16.Organizing
Principles

Top-Down
Centralized

Bottom-up
Decentralized