hrm

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2.  Organization is a group of people established either
formally or informally for the attainment of certain
objectives.
 So, people are the foundation of any organization.
 In societal context, organization need people and
people need organization.
 It is people who staff, lead and control organizations.
 Persons involved in an organization are referred as
human resource.
 Simply, the overall management of such personnel in
an organization is called human resource management
(HRM). 2

3.  In organizational context, the personnel involved in
different activities of an organization are the human
resources of that organization.
 Such type of personnel (referred as human resources)
have one thing common i.e. fulfillment of their assigned
duties & responsibilities in order to achieve the
organizational goal and objectives.
 People become human resource when they involved in
any organization with physical strength, energy and
competencies. Competencies consists of knowledge,
skill, attitudes and potential for growth.
 Human resources are effectively mobilized by the
organization for the achievement of desired results.
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4.  An essential function of management; and also
an important part of every manager’s job.
 HRM is concerned with managing people in
organizations.
 It is concerned with philosophy, principles,
policies and practices related to human aspect
of management.
 It aims at achieving organizational objectives
through the efficient and effective mobilization
of human resources.
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5. According to Donnelly and Gibson,
 HRM is the process of accomplishing organizational
objectives by acquiring, retaining, terminating,
developing and properly using the human resources
in an organization.
According to Gary Dessler,
 HRM refers to the policies and practices involved in
carrying out the people or human resource aspects of
a management position, including recruiting,
screening, training, rewarding and appraising.
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6.  Human Resource Management (HRM) is a
process concerned with the management of
personnel along with their energies and
competencies for the achievement of
organization objectives by the process of
acquiring, developing and utilizing such
personnel.
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7.  A number of academics and practitioners in the past
have contributed a great deal to the development of
HRM.
 The history of its development goes back to the early
management pioneers, Robert Owen (1771 – 1858) and
Charles Babbage (1792 – 1871).
 Similarly, other developments such as the industrial
revolution, the principles of scientific management,
the classical organization theory and more recently,
the behavioral science movement and the
organization development movement have influenced
the development of personnel management and
HRM.
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8.  The trend of the development of HRM in the
past can be explained through following
periods.
 Early Scientific Management
 Scientific Management
 Human Relations Movement
 The New HRM Era
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9.  The history can be traced back to the Origin of
Personnel Management. In the beginning of 18th
century, many masons, carpenters, leather
workers and people of other crafts organized
themselves into guilds.
 In the later part of 18th
century, the Welfare
Concept was developed by some prominent
family business houses in the UK.
 Industrial Revolution started from the late 18th
century. Labor was treated as commodity to be
bought or sold. There was strict system of
punctuality and rigorous working rules.
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10.  F.W. Taylor invented principles of scientific
management in the 19th
century.
 He suggested to plan work and gave methods to
maximize productivity and minimize
inefficiencies.
 In his studies, he explained less about
humanization of workplaces and focused more
on output from the workers.
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11.  Elton Mayo and Fritz Roethlisberger
investigated the causes of low productivity
different from Taylor’s perspective.
 The Hawthorne studies (1927 – 1932) laid the
foundation for the human relations movement
and explain why human elements are
important to rise productivity.
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12.  It was by 1920s, personnel management began to
taught at university level in US.
 At the period of 1920s, a number of large companies
established personnel departments.
 During 1930 – 1950, many instances of exploitation
of labor appeared.
 Subsequently, a labor relations movement in the
form of Labour Unions and collective bargaining
emerged and remained successful during 1935 –
1960.
 Personnel department started to work in
collaboration with union representatives.
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13.  The HRM era, began in 1950s, comprises
 the work of pioneers,
 human capital concept,
 concept of corporate culture and
 the new HRM.
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14. The Work of Pioneers
 Peter F. Drucker is the main inventor of HRM
concept. He had suggested how an effective
management contributes to direct all managers
towards a common goal.
 Douglas McGregor emphasized the strategic
importance of personal policies and their
integration with business objectives.
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15. Human Capital Concept
 T. Schulz invented human capital theory and
cited example of how qualified and committed
human resources contributed in the post war
economy of Germanny and Japan.
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16. Concept of Corporate Culture
 The book “The art of Japanese Management”
by R. Pascale and A. Athos in 1981 stated that
shared values of management and workers are
the secret of Japanese Management.
 The book “In search of excellence” written by
T.J. Peters and R. Waterman in 1982 named 43
successful companies in the U.S. that were
driven by the managers’ values and achieved
productivity by paying close attention to the
needs of their people.
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17. The New HRM
 Traditional American personnel management and
industrial relation systems were challenged by the
process of globalization, rapid technological advances,
shorter product lifecycles and changing customers and
investors demands.
 Many US industries were facing the under-utilization
and unemployment of human resources.
 The reasons for such problems were: adverse union-
management relations, low employee motivation &
trust in management, hierarchical management,
restrictive work practices and, finally, resistance of the
employees towards change to cope with the
competitive environment.
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18.  Promoted by this challenges, American business has
begun to place greater emphasis on the management of
human resources to improve productivity and quality and
thus to be competitive internally and externally.
 In academic literature, at least, the terms ‘personnel
management’ and ‘personnel administration’ have been
virtually replaced by the term ‘HRM’.
 In UK, the concept of HRM arrived around 1985 – 86,
when the British industry was suffering from restructuring
effects due to recession & loss of competitiveness.
 Anti-union legislation of the Thatcher government
encouraged firms to introduce new labor practices and re-
order their collective bargaining arrangements.
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19. Human Focus
 People concern, develops & utilize human potential,
regard people as an important asset of organization
Management Function
 Applies mgmt principles & functions, perform by all
level of managers
Dynamic
 Affected by changes in envn (political-legal,
economic, socio-cultural & technological)
Mutually oriented
 Mutuality between employer and employees.
Continuous-ongoing activity
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20.  Human Resource Planning
 Recruitment & Selection
 Performance Management
 Training and Development
 Employee – Management Relation
 Management Information System
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21.  The process of HRM involves attracting,
developing and maintaining a talented and
energetic workforce.
 The basic goal of HRM is to build organizational
performance capacity by raising human capital,
to ensure that highly capable and enthusiastic
people are always available.
 The 3 major responsibilities of HRM are
A. Attracting a quality workforce
B. Developing a quality workforce
C. Maintaining a quality workforce 21

22. Attracting a quality workforce
 Involves human resource planning, employee
recruitment and selection.
Developing a quality workforce
 Involves employee orientation, training &
development and performance appraisal
Maintaining a quality workforce
 Involves career development, work life
balance, compensation and benefits, retention
and turnover, and labor-management relations.
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23.  Human Resource Planning
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 Recruitment
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 Selection.
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25.  Induction/orientation
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 Training and Development
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 Performance Appraisal
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26.  Career Development
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 Work-life Balance
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 Compensation and Benefits
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 Retention and turnover
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 Labor-management Relations
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28.  Human Resource Planning
 Acquisition of Human Resources
 Utilization of Human Resources
 Development of Human Resources
 Maintenance of Human Resources
 Control of Human Resources
 Harmonious Employer-Employee Relationship
 Attainment of organizational objectives
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29. Process
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Input Output
• Human energy
& competencies
• Organizational
Plan
• HR Plan
• HR Inventory
• Job Analysis
• Human energy
& competencies
• Organizational
Plan
• HR Plan
• HR Inventory
• Job Analysis
• Acquisition
• Development
• Utilization
• Maintenance
• Acquisition
• Development
• Utilization
• Maintenance
Organizational
• Goals achievement
• Quality of work life
• Productivity
• Readiness for change
Personal
• Commitment
• Competence
• Congruence
Organizational
• Goals achievement
• Quality of work life
• Productivity
• Readiness for change
Personal
• Commitment
• Competence
• Congruence
Feedback

30.  Globalization
 Technological Advances
 Nature of work
 Size & composition of the workforce.
 Rising employees' expectations
 Life-style changes
 Less attached/temporary employees
 New HRM concerns
 Learning organizations
 Impact of new economic policy.
 Political ideology of the Government.
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31. Issues of HRM in Nepal
 Corporate Planning and Objectives
 Human Resource Planning
 Recruitment, Selection and Placement
 Employee training and development
 Performance Evaluation
 Salary and other benefits
 Job Design
 Employee Relations
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32.  HRM in Nepal is mainly concerned with utilizing
human energies.
 It is least concerned with developing human
competencies and potential for growth of
employees.
 Its focus is on achieving organizational goals
without much regard to personal goals of
employees.
 HRM has not assumed a strategic role in
Nepalese management.
 People are not considered as a source of32

33.  HRM is not given a strategic role. It lacks clear cut
vision, mission and goals.
 The attitudes of top management are not favorable
towards HRM. Human resources are viewed as a cost
rather than assets by management.
 HRM is considered as a firefighting job to deal with
labor grievance and indiscipline.
 Line managers do not feel ownership for HRM.
 Lack of mutual trust between labor and management.
 Multiplicity of unions, union challenges,
politicialization of unions and negative attitude of
management towards labor unions. 33

34.  HR aspects are not considered in policy and
plan formulation.
 Human resource development has remained an
area of low priority. This has retarded
professionalism in HRM. Performance based
HRM practices are lacking.
 Legal framework has remained weak and
largely welfare oriented.
 HRM is short range oriented. It is least
concerned with future potential development
of employees. 34