The document discusses the evolution of human resource management (HRM) from a personnel management perspective to a strategic approach. It outlines that organizations now view employees as human capital rather than a commodity. Effective HRM involves attracting, developing, and retaining talent to achieve organizational goals. The document also highlights the changing nature of HRM functions such as strategic planning, training, compensation to develop and maintain a skilled workforce in a rapidly changing environment.

2.  An orgn is made up of 4 resources
◦Men
◦Material
◦Money Non Living
◦Machinery
◦It is the human that make use of non human resources.

3.  L. F. Urwick had remarked that
“Business houses are made or broken in the
long run not by markets or capital, patents or
equipments, but by men.”
 As Peter F. Drucker also says
“Men, of all the resources available to man,
can grow and develop.”

4.  is the effective management of people at
work
◦ The goal: make workers more satisfied and productive
◦ When an organization is concerned about people, its
total philosophy, culture, and orientation reflect it
 Every manager must be concerned with
people, whether or not there is a human
resources department

5. It is important to
remember that
the people who do
the work and
create the ideas
allow the
organization to
survive

6.  Changes experienced by organizations:
◦ Growing global competition
◦ Rapidly expanding technologies
◦ Increased demand for individual, team, and
organizational competencies
◦ Faster cycle times
◦ Increasing legal and compliance scrutiny
◦ Higher customer expectations
 The mechanized, routine-oriented
workforce is giving way to a knowledge-
based workforce

7.  HRM is process of making the efficient and
effective use of human resources so that the
set goals are achieved.
 Acc to Flippo
“ Personnel mgmt or say HRM is the planning,
organizing, directing or controlling of the
procurement, development, compensation,
integration, maintenance & separation of HR
to the end that individual, orgnl & social
objectives are achieved.”

8.  Acc. To Decenzo & Robbins
“ HRM is concerned with the PEOPLE DIMENSION in
management. Since every orgn is made up of people,
acquiring their services, developing their skills,
motivating them to higher levels of performance and
ensuring that they continue to maintain their
commitment to the organisation are essential to achieve
organizational objectives. This is true regardless to the
size of the organization, government, business,
education, health, recreation, or social action.”

9.  Acc to Leon C. Megginson
“ From the national point of view, Human
resources are Knowledge, skills , creative
abilities, talents and attitude obtained in the
population.”
Whereas
“From the view point of Individual enterprise,
they represent the total of the inherent
abilities, acquired knowledge and skills as
exemplified in the talents and aptitude of its
employees.”

10.  Now human resources are considered as
HUMAN CAPITAL, which can be classified
into 3 categories
 Intellectual Capital
 Social Capital
 Emotional Capital
 Intellectual Capital consists of specialized
knowledge, tacit knowledge and skills ,
cognitive complexity , and learning capacity.

11.  Social capital is made up of network of
relationships, sociability and trustworthiness.
 Emotional capital consists of self confidence,
ambition & courage, risk bearing ability &
resilience.
 In that way, Human Resources refer to both
QUALITATIVE & QUANTITATIVE aspects of
employees working in an organisation.

12.  Fairness and firmness
 Tact and resourcefulness
 Sympathy and consideration
 Knowledge of labor and other terms
 Broad social outlook
 Others and Academic qualifications

13. Importance of HRM
attract and retain talent
train people for challenging roles
develop skills and competencies
promote team spirit
develop loyalty and commitment
increase productivity and profits
improve job satisfaction
enhance standard of living
Good HR Practices help

14. Functions of HRM
– Planning
– Organizing
– Directing
– Controlling
Operative Functions
P/HRM
Managerial
functions:
Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal
mobility
Development:
Training
Executive
development
Career
planning
Succession
planning
Human
resources
development
strategies
Motivation and
Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services
Maintenance:
Health
Safety
Welfare
Social security
Integration:
Grievances
Discipline
Teams and
teamwork
Collective
bargaining
Participation
Empowerment
Trade unions
Employers’
associations
Industrial
relations
Emerging
Issues:
Personnel
records
Personnel
audit
Personnel
research
HR
accounting
HRIS
Job stress
Mentoring
International
HRM

15. HRM as a central subsystem in an
organization
Product
Subsystem
HR Subsystem
Procurement
Training
Compensation
Appraisal
Rewards
Marketing
Subsystem
Finance
Subsystem
Technical
Subsystem

16. Objectives of HRM

17. Objectives of the HRM Function
 Increasing employees’ job satisfaction and self-
actualization
 Employees must feel that the job is right for their
abilities and that they are being treated equitably
 Satisfied employees are automatically more productive
 However, unsatisfied employees tend to be absent
and quit more often and produce lower-quality work
 Both satisfied and dissatisfied employees can perform
equally in quantitative terms

18. Objectives of the HRM Function
 Quality of work life (QWL) is a general concept that
refers to several aspects of the job, including:
 Management and supervisory style
 Freedom and autonomy to make decisions on the job
 Satisfactory physical surroundings
 Job safety
 Satisfactory working hours
 Meaningful tasks
 The job and work environment should be structured to
meet as many workers’ needs as possible

19. Objectives of the HRM Function
 Communicating HRM policies to
all employees:
 HRM policies, programs, and procedures must be
communicated fully and effectively
 They must be represented to outsiders
 Top-level managers must understand what HRM can
offer

20. Objectives of the HRM Function
 Maintaining ethical policies and socially responsible
behavior:
 HRM managers must show by example that HRM
activities are fair, truthful, and honorable
 People must not be discriminated against
 Their basic rights must be protected
 These principles should apply to all activities in the
HRM area

21. Objectives of the HRM Function
 Managing increased urgency and faster cycle times:
 Firms are placing a growing emphasis on:
 Increasing customer service
 Developing new products and services
 Training and educating technicians, managers,
and decision makers
 Shorter cycle times mean less time to:
 Train, educate, and assign managers
 Recruit and select talented people
 Improve the firm’s image
 Learning provides a framework for decreasing
cycle time

22. HRM’s Place in Management
 The HR department must be a proactive, integral part
of management and strategic planning
 Ascertain specific organizational needs for the
use of its competence
 Evaluate the use and satisfaction among other
departments
 Educate management and employees about the
availability and use of HRM services
 HRM strategic plans must build on the firm's strengths

23. HRM
ACQUISITION
HRP,
Recruitment,
Selection
Placement
MAINTAINANCE
Remuneration
Motivation
Health & safety
Social Security
IR
Performance
Appraisal
DEVELOPMENT
Training
Career development
Organisational Dev
Internal Mobility
CONTROL
HR Audit
HR Accounting
HRIS

24. A Brief History of HRM
 HRM can be traced to England, where craftspeople
organized guilds
 They used unity to improve working conditions
 The Industrial Revolution in the 18th century laid the
basis for a new, complex industrial society
 Changing work conditions, social patterns, and labor
created a gap between workers and owners
 During the world wars era, scientific management,
welfare work, and industrial psychology merged

25. A Brief History of HRM
 Frederick W. Taylor, the father of scientific
management, summarized scientific management as:
 Science
 Harmony
 Cooperation
 Maximum output
 Industrial psychology, initiated in 1913, focused on:
 The worker
 Individual differences
 The maximum well being of the worker

26. A Brief History of HRM
 Personnel departments were created to deal with:
 Drastic changes in technology
 Organizational growth
 The rise of unions
 Government intervention
concerning working people
 Around the 1920s, more organizations
noticed and acted on employee-management conflict

27. A Brief History of HRM
 The Hawthorne studies (1924 to 1933):
 Were to determine the effects of
illumination on workers and their output
 Rather, it pointed out the importance of
social interaction on output and satisfaction
 Until the 1960s, the personnel function was concerned
only with blue-collar employees
 File clerk, house-keeper, social worker, firefighter, and
union trouble defuser

28. Evolution of the Personnel Function
Concept What is it all about?
The Commodity
concept
Labour was regarded as a commodity to be bought and sold.
Wages were based on demand and supply. Government did
very little to protect workers.
The Factor of
Production concept
Labour is like any other factor of production, viz, money,
materials, land, etc. Workers are like machine tools.
The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room
will have a positive impact on workers’ productivity
The Paternalistic
concept/ Paternalism
Management must assume a fatherly and protective attitude
towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.
Cont…

29. The Humanitarian
concept
To improve productivity, physical, social and psychological
needs of workers must be met. As Mayo and others stated,
money is less a factor in determining output, than group
standards, group incentives and security. The organization is a
social system that has both economic and social dimensions.
The Human Resource
concept
Employees are the most valuable assets of an organization.
There should be a conscious effort to realize organizational goals
by satisfying needs and aspirations of employees.
The Emerging concept Employees should be accepted as partners in the progress of a
company. They should have a feeling that the organization is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.
Evolution of the Personnel Function

30. Personnel Function in India;
Changing Scenario
Period Emphasis Status Roles
1920 – 30 Welfare management Clerical Welfare
Paternalistic practices administrator
1990s – Incremental productivity Proactive, Developer
onwards gains through human growth-oriented Counsellor
assets Coach
Mentor
Problem solver
1940 – 60 Expanding the role to cover Administrative Appraiser
Labour, Welfare, Industrial Advisor
Relations and Personnel Mediator
Administration Legal advisor
Fire fighting
1970 – 80 Efficiency, effectiveness Developmental Change agent
dimensions added Integrator
Emphasis on human Trainer
values, aspirations, Educator

31. Dimensions Personnel
Mgmt.
HRM
a. Nature of
relations
Pluralist Unitary
b. Perception
of Conflict
Conflict is
institutionalized
Conflict is
Pathological
c. Contract Emphasis on
compliance
Beyond
Contract
Commitment
d. Role of
procedures
Rules
dominated
Culture &
values
dominated

32. e. Planning
perspective
Ad hoc,
reactive
Integrated,
proactive
f. Level of trust Low High
g. Key relation Labour-
management
Customer
h.
Management’s
Role
Transactional Transformatio
nal
i. Acceptability
of Unions
Acceptable Not desirable
j. Basis of job
design
Division of
labour
Teams

33. k. Key People PM/IR
Specialists
Line people &
General
Managers
l. Skill
acquisition
Training &
development
Learning
organization
m. Reward
Management
Standardized
job evaluation
Performance
related