Human Resource
Management
UNIT-I
INTRODUCTION
❖Concepts
❖Significance
❖Objectives
❖Scope
❖Functions
❖Changing role of HR manager
Continuation
❖ HRM Policies
❖ Impact of Environment on HRM
❖ HRD : Concepts, Scope, Objectives
❖ Brief Introduction Of Techniques
of HRD
What is
Human Resource
Management
Human Resource management
A human resource is one person within a company's
overall workforce, with each person lending their
skills and talents to the organization to help it
succeed. Any person willing to trade their labor,
knowledge, or time for compensation in an effort to
improve the organization is a human resource. It
doesn't matter if they're part-time, full-time .
According to Leon C.Megginson,
The term human resources can be thought of as the
total knowledge , skills, creative abilities, talents,
competencies and aptitudes of an Organisation’s
work force , as well as the value ,
attitudes,commitments, and beliefs of the
individuals involved.
Management has been defined by Mary Parker
Follett as , “the art of getting things done through
people.”
According to Michael J.Jucius defined
Human Resource Management as “the field of
management which has to do with planning,
organising, directing and controlling the functions
of procuring, developing, maintaining and utilising
a labour force.
Human Resource in an organisation mean
technical skills and soft skills of economic, social,
physiological, and psychological and spiritual
beings.
Economic : People are economic beings as
they need money in exchange of their
resources.
Social: People prefer to work in groups
and teams. They expect their social needs
to be met at work place.
physiological : people need to maintain
their health and expect the basic needs.
psychological : people expect their
psychological needs like recognition ,
achivement and a challenging job.
spiritual: people are spiritual beings as
they normally prefer to do good for
others and society at large.
SIGNIFICANCE OF HRM
Human resources in the Nation’s well-being
Man vis-à-vis Machine
HRM and General Management
Human Resource System is a Central Sub-System
Human Resource accounting
Human Resource and Market economy
Knowledge and Competitive Advantage
Products and Human Resources
Production and Human Resources
Marketing and Human Resources
HR: As distinctive competitive advantage
Organisational Structure and Human resources
OBJECTIVES OF HRM
Objectives are pre-determined goals to which individual or group activity in an
organisation is directed . Objectives of human resource management are influenced
by organisational objectives and individual and social goals.
Objectives of HRM may be as follows:
To create and uutilise an able and motivated workforce,
To establish and maintain sound organisation structure
To secure the integration of individual and groups with in the organisation
To create facilities and opportunities for individual or group development
To attain an effective utilisation of human resources in the achievement of
organisational goals
To identify and satisfy individual and group needs by adequate and equitable
wages.
To maintain high employee morale and sound human relations
To strengthen and appreciate the human assets
To provide an opportunity for expression and voice in management
To provide fair , acceptable and efficient leadership
To create a favourable atmosphere for maintaining stability of employment.
SCOPE OF HRM
Scope:
The scope of HRM is,
indeed, very vast and
wide. It includes all
activities starting from
manpower planning till
employee leaves the
organisation. Accordingly,
the scope of HRM
consists of acquisition,
development,
maintenance/retention,
and control of human
resources in the
organisation .
It has, therefore, been rightly observed by Peter
Drucker that “Management is a multipurpose on which
has three jobs, two of which are directly related to
personnel- Managing a business, managing managers,
and managing workers and the work”.
They not only help in determining the rules of the
organization but also play a powerful role in
interpreting and applying the rules of the system
itself. They are expected to enjoy the confidence of
both management and employees, which is crucial for
effective and efficient operations of the business
organization.
The focus of HRM is on people at work. It is indeed a
wide area and covers a broad spectrum of activities. A
manager, whether he is in charge of production or a
marketing function deals with human beings and gets
his job done through and with people.
1. Human Resource Planning (HRP):
It is the first step of human resource management. HRP is a process
through which the company makes an assessment of the present
manpower-the number of people employed, number of post vacant,
whether there is excess or shortage of staff and prepares plans and
policies to deal with them accordingly. It also estimates the future man
power requirement. It matches the supply and availability of manpower
with the company’s purpose and makes the best person available for the
job.
Job Analysis:
An important task of HRM is job analysis. It provides the basis for
recruitment, training and development of staff. Every job is analysed to
identify the inherent requirement of the job – “what the job demands of a
worker”. Job analysis provides a detailed picture of the nature of job, the
skill and abilities required to perform the job, the duties and
responsibilities of the worker required for the job.
3. Job Evaluation:
It forms the basis of wage and salary determination. Different jobs are
compared and evaluated to determine the relative importance of different
jobs within the organization. The jobs are compared, graded and ranked.
Job evaluation determines how much pay to be affixed to the particular
job on the basis of their importance in the organisation functioning. This
helps to determine a fair wage and salary and to determine a rational pay
structure.
4. Recruitment and Selection:
The company on the basis of human resource planning and
job analysis identifies the requirement of personnel and
explores different internal and external sources from where
manpower can be acquired. This process is called
recruitment. The right person is selected and put to work.
5. Performance Appraisal:
It is a systematic method of evaluating the performance
of employees. This helps to assess the efficiency, strength
and weakness of the employees. It is a controlling process
whereby the employees’ performance is matched with the
standard level of performance and remedial measures
taken in case actual performance does not meet the
standard.
6. Training and Development:
Human resource management is concerned with
arrangement of training and development programme for
the newly appointed staff as well as for existing employees.
This helps to enhance the qualitative and quantitative
performance of the work force.
7. Employee Compensation:
Human resource management performs the function of
determining the pay structure for different employees on
the basis of qualification, efficiency, experience, nature of
the job. It also determines rewards and incentives to be
paid for their contribution towards the organisation.
8. Employee Motivation:
Motivation of employees is essential for retention and
sustenance of employees within the organisation.
Motivation plays an important role in management of
personnel. It helps to improve productivity of personnel.
There are different ways by which employees may be
encouraged. Recognition and reward for performance,
promotion, pay-hike, and other monetary and
non-monetary rewards motivate the employees.
9. Employee Welfare:
Human resource management focuses on the welfare of
employees by providing canteen facilities, creches, rest and
lunch rooms, housing, transport, medical assistance,
education, health and safety, medical care, sickness
benefits, recreation facilities.
10. Industrial Relation:
Labour unrest, conflicts between the work
groups and between workers and management
over issues like low wage, bad work environment
are common problems that must be handled
carefully by establishing a balance between the
worker’s interest and interest of the organisation
and management. Human resource management
considers establishment and maintenance of
harmonious and cordial relation between
employer and employees.
Functions Of HRM
The Changing Role of HR
Manager
HRM POLICIES, PROCEDURES AND
PROGRAMMES
HRM POLICY: A policy is a plan of action.
Brewster and Richbell defined HRM policies as, “a set
of proposals and action that act as a reference point
for managers in their dealings with employees “.
Need for HRM Policies:
Consider the favouritism and discrimination in
treating the employees
Minimise the favouritism and discrimination in
treating the employees
Ensure that the action will be continued though the
managers in key jobs
Have standards of performance
Create and develop employee enthusiasm and loyalty.
HRM PROCEDURE:
Policies are general instructions where procedures
are specific applications. A procedure is a well
thought out course of action. It prescribes the specific
manner in which a piece of work is to be done.
Procedures are called ‘action guidelines’. They are
derived from policies. Procedures show a sequence of
activities with in that area.
HRM PROGRAMM:
HR programmes are complex sets of goals, policies,
procedures, rules, steps to be taken, resources to be
employed, and other elements necessary to carry out
a given course of action. It can be said that rules and
programmes are aids to policy.
IMPACT OF ENVIRONMENT ON
HRM
Environment means surrounding. Business
environment means the factors/activities
those surround/encircle the business. In
other words, the factors that affect or
influence the business.
William F.Glueck defines the term
environmental analysis as,” the process by
which strategists monitor the economic,
government/legal, market/competitive,
supplier/technological, geographic and social
settings to determine opportunities and
threats to their firms”.
Business environmental
factors boardly divided into
External Factors and Internal
Factors
Human Resource
Development
Concept: “Human Resource Development (HRD) is
a process of developing skills, competencies, knowledge and
attitudes of people in an organization.” The people become
human resource only when they are competent to perform
organizational activities.
According to T.V.Rao; “HRD in the organizational context is a
process in which the employees of an organization are
continuously helped in a planned manner to –
1. Acquire or sharpen their capabilities that are required to
perform various functions associated with their present or
expected future roles;
2. Develop their general capabilities as individuals, so as to
discover and exploit their inner potentials for their own or
organizational development purposes;
3. Develop organization culture in which superior subordinate
relationships, team work and, collaboration among sub-units
is strong and contributes to the professional well-being,
motivation and pride of employees.”
SCOPE OF HRD
Human resource management (HRM) deals with procurement,
development, compensation, maintenance and utilization of human
resources. HRD deals with efficient utilization of human resources and it
is a part of HRM.
The scope of HRD includes:
1. Recruitment and selection of employees for meeting the present and
future requirements of an organization.
2. Performance appraisal of the employees in order to understand their
capabilities and improving them through additional training.
3. Offering the employees’ performance counselling and performance
interviews from the superiors.
4. Career planning and development programmes for the employees.
5. Development of employees through succession planning.
6. Workers’ participation and formation of quality circles.
. Employee learning through group dynamics and empowerment.
8. Learning through job rotation and job enrichment.
9. Learning through social and religious interactions and programmes.
10. Development of employees through managerial and behavioural
skills.
OBJECTIVES OF HRD
The objectives of HRD are:
To prepare the employee to meet the present and changing
future job requirements.
To prevent employee obsolescence.
To develop creative abilities and talents
To prepare employees for higher level jobs
To impart new entrants with basic HRD skills and Knowledge
To develop the potentialities of people for the next level job.
To aid total quality management.
To promote individual and collective morale, a sense of
resposibility, co-operative attitudes and good relationships.
To broaden the minds of senior mangers by providing them with
opportunities for an interchange of experiences with in and
outside.
To ensure smooth and efficient working of the organisation.
To provide comprehensive frame work for HRD.
To enhance organisational capabilities.
To create a climate that enables every employee to deliver,
develop and use his/her capabilities toa fuller extent in order to
further both individual and organisational goals.
TECHNIQUES OF HRD
Techniques of HRD are also called HRD methods, HRD instruments, HRD
mechanisms, or HRD sub- systems. They include:
Performance appraisal
Potential appraisal
Career planning
Career development
Employee training
Executive development
Organisation change
Organisational development
Social and cultural programmes
Worker’s participation in management
Quality circles
Employee counselling
Team work
Monetary rewards
Non-monetary rewards
Grievance mechanism
Thank you
