This document defines human resource management (HRM) and discusses its key aspects. HRM involves acquiring, training, appraising, and compensating employees to achieve organizational goals efficiently. The document outlines HRM functions like recruitment, training, performance management, and compensation. It discusses the importance of HRM at the enterprise, individual, societal and national levels. Finally, it covers the history, evolution, scope, policies and approaches of HRM.

1. It is defined as the art of procuring, developing and
maintaining competent workforce to achieve the
goals of an organization in an effective and efficient
manner.
It is the process of acquiring, training, appraising
and compensating employees and of attending to
their labor relations, health and safety and fairness
concerns.
HRM - Definition

2. Conducting the job analysis
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries
Providing incentives and benefits
Appraising performance
Conducting interviews, counseling, disciplining
Training and developing managers
Building employee commitment
It includes the personnel aspects of the
management job, like

3. Objectives of HRM
To help the organization reach its goals
To employ the skills and abilities of the work force
efficiently.
To provide the organization with well trained and well
motivated employees
To increase to the fullest the employee’s job satisfaction
and self actualization.
To develop and maintain quality of work life
To communicate the HR policies to all employees.
To be ethically and socially responsible to the needs of
society

4. Nature of HRM
Pervasive function
Action Oriented
Individual Oriented
People Oriented
Future Oriented
Development Oriented
Integrating Mechanism
Comprehensive function
Continuous function

5. The scope of HRM is Very wide
Personal Aspect: It is concerned with manpower
planning, recruitment, selection, placement, transfer,
promotion, training and development, lay off and
retrenchment, remuneration, incentives, productivity etc.
Welfare Aspect: It deals with working conditions and
amenities such as canteens, crèches, rest and lunch rooms,
housing, transport, medical assistance, education, health
and safety, recreation facilities etc.
Industrial Relations Aspect : This covers union –
management relations, joint consultation, collective
bargaining, grievance and disciplinary procedures,
settlement of disputes etc.
Scope

6. Importance of HRM
HRM helps an Organization and its people to realize
their respective goals in various ways. the same is
categorized in the following levels :
• At the Enterprise level
• At the Individual level
• At the Society level
• At the National level

7. At the enterprise level:
 Good HR practices help in attracting and retaining the best
people in the organization.
 It helps in training people for challenging roles, developing
right attitude towards the job and the company, promoting team
spirit, commitment etc.
At the individual level:
 It promotes team work and team spirit among employees.
 It offers excellent growth opportunities to people who have
potential to rise.
 It allows people to work with diligence and commitment.
At the society level:
 Employment opportunities multiply.
 Scarce talents are put to best use.
Importance of HRM

8. 1. At the Enterprise level
 Attracting and retaining the best people in the
Organization.
 Training people for challenging roles.
 Developing the right attitudes towards the job and the
Company.
 Promoting team spirit among employees.
 Developing loyalty and commitment through
appropriate reward schemes.
 Increase productivity and profits.

9. 2. At the Individual level
 It promotes teamwork and team spirit among
employees
 It offers excellent growth opportunities to people who
have the potential to rise
 It allows people to work with diligence and
commitment
 Develop skills
 Job Satisfaction

10. 3. At the Society level
Employment opportunities multiply
Enhance standard of living
Scarce talents are put to best use.

11. 4. At the National level
Effective use of human resources helps in
exploitation of natural, physical and financial
resources.
People with right skills and proper attitudes help
the nation to get ahead.
Compete with the best in the world leading to
better standard of living and better employment.
Industrial development.

12. Industrial Revolution: machines are brought in the production
process, rapid progress in technology, jobs were more
fragmented, specialization increased, but left workers with dull,
boring , monotonous jobs. Govt. did very little to protect the
interest of the workers
Scientific management: To improve efficiency and speed F W
Taylor advocated scientific management. Scientific management
is nothing but systematic analysis and breakdown of work into
its smallest mechanical elements and rearranging into most
efficient combination. Importance of training was also
identified.
History of Personal Management/
Human Resource Management

13. Trade Unionism: Workers joined hands to protect
against the exploitive tendency of employers and
unfair labour practices. TU tried to improve work
conditions, pay and benefits, disciplinary actions etc.
Human relations movement: After Hawthorne
experiments conducted by Elton Mayo, productivity
not only depends on rewards, and the job design but
also on certain social and psychological factors also..
Human relations movement led to the implementation
of behavioural science techniques in industry.

14. Human Resources approach: During early 60’s “pet
milk theory” of human relationist’s had been largely
rejected(happy workers are productive or happy cows
give more milk). It was recognized that workers are
unique and have individual needs. The trend move
towards treating employees as resources or assets
emerged.

15. 1920-1930
Welfare management
1940-1960
Personal management
1970-1980
Development phase
1991-
ownwards
Proactive- growth oriented phase
Evolution of HRM

16. Welfare phase- welfare management, maintaining
records of employees such as attendance, leave etc.
Roles: Welfare administrator, policeman
Personal management- Fire fighting stage- Employee
disputes, trade unions, decisions taken by top
management.
Roles: Advisor, mediator, legal advisor, fire fighting
Development phase- Importance given on efficiency
and effectiveness, emphasis on human values, dignity.
Hr manager does the role of change agent, trainer etc.
Growth oriented – employees are considered as assets.
Hr manager’s role- developer, counsellor, coach,
mentor, problem solver

17. Managerial Function Operative function Advisory
functions
Planning Acquisition Top Management
Organising Training &Development Department heads
Directing Motivation
Controlling Maintenance
Remuneration
Working conditions
Personnel records
Industrial relations
Separation
Functions of HRM

18. Operative functions of HR
STAFFING Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility
DEVELOPMENT
Competency profiling, Training and
development, Performance &
potential management, Career
management, 360 degree feedback
COMPENSATION
& MOTIVATION
Job design, Work scheduling, Job
evaluation, Compensation
administration, Incentives and
benefits

19. Operative functions of HR (contd.)
MAINTENANCE
Health, Safety, Welfare
INTEGRATION
Employment relations, Grievance,
Discipline, Trade unions,
Participation

20. HRM Environment - External
Professionalism
Social & cultural
Union
Political & legal
Economic
Technology
HRM

21. HRM Environment - Internal
Mission
Organisational
Conflict
Policies
HRM

22. HRM Policies
Policy – is predetermined course of action
established to guide the performance of work
towards accepted objectives.
Importance -:
(1) Clear Thinking
(2)Uniformity & Consistency of Admin.
(3)Sence of Security
(4)Control

23. Types of HR Policies
Originated policies – Made by top Management.
Appealed policies – Made on request to handle
certain situation, or if certain aspects are missing
in the main policy.
Imposed policies – Imposed by Govt & Legal
authorities.
General policies – Do not relate any issue, may
represent the priority of Top Mgmt. (WPM).
Specific Policy – Related to specific issues like
Recruitment, Transfer, Promotion etc.

24. 3 distinct functions of HR Managers
1. Line function: He directs the activities of the people
in his /her own departments
2. Co-ordinate function :Ensures that the line managers
are implementing the firms HR policies and practices
3. Staff Function :Assists in hiring, training, evaluating,
rewarding, counseling, promoting, and firing
employees. Administers various benefit programmes
HR manager’s Duties

25. Transactional HR group: Focuses on using centralized call
centers and outsourcing arrangements with
vendors(benefits advisors) to provide specialized support
in day to day transactional HR activities.
Corporate HR Group: Focuses on assisting top management
in big issues such as developing the long term strategic
plans on the company
Embedded HR group: Assigns HR generalists directly to
departments to provide localized HRM assistance to the
department needs.
The centers of expertise: Are specialized HR consulting
firms within the company, providing specialized assistance
in areas such as organizational change
New Approaches to Organizing HR

26. Global HRM
GHRM: utilization of global human resources to achieve
organizational objectives without regard to geographic
boundaries.
“Going Global” has a major impact on all HRM functions,
from planning, recruitment, and selection to compensation
and benefits, to human resource development, to safety
and health issues, to employee and labor relations. Each of
the various functions has an even greater impact on
organizational performance than in domestic companies.
Additional challenges include: political and legal factors,
cultural/language issues and maintaining corporate
identity/culture, economic factors, and labor-management
relations.

27. E-HR
E.HR: the application of conventional, web, voice and m-
technologies to improve HR administration, transactions
and process performance. “Speed” and “agility” have become
key words for HRM.
E-HR survey in 91 international organizations: 76% have
redesigned or introduced new HR technologies/systems in
the past year and 90% of the remaining expect to do so
within the coming year.
While very cutting edge, total e-HR is expensive and time
consuming. Many companies focus on recruitment, web
training and web approaches to reporting, appraisal, and
reporting.
1998: 17% of Fortune Global 500 companies recruited on the net;
1999, 45%
$1.7 billion on recruitment in 2003
Estimated 2.5 million resumes on the internet