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1. Contents to be discussed
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Definition of Human Resource and Human Resource
Management (HRM)
Why Employees are Superior to other Factors of
Production?
Functions of Human Resource Management (HRM)
Philosophy of HRM
Basic Principles of HRM
Approach to Human Resource Management (HRM)
Challenges of Modern Human Resource Management

2. Human resources are the personnel of a business or
organization, regarded as a significant asset in terms of
skills and abilities.
Human resources are the people who make up the
workforce of an organization, business sector, or
economy.
Human resource refers to the individuals or personnel
or workforce within an organization responsible for
performing the tasks given to them for the purpose of
achievement of goals and objectives of the organization.
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3. People are most valuable assets of an organization. It is
people not other things that make an organization
successful.
What is Management?
• Management is a process of getting things done through
others.
• Management is a set of activities consisting of planning,
organizing, leading and controlling.
Human Resource Management refers to the philosophy,
policies, procedures and practices that are related to the
management of people within an organization.
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4. According to Robbins & Decenzo (2010)
“HRM is a process of acquiring, retaining, developing,
terminating and properly using the human resources in an
organization”
According to Flippo (1980)
“HRM is planning, organizing, directing and controlling of
the procurement, development, compensation,
integration, maintenance & separation of human resources
to the end that individual, organizational and societal
objectives are accomplished.”
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5.  Labor is viewed as technical factor of production:
Employees are treated as a commodity and they can be bought
and sold. They are considered as cogs in the machine. They can
be hired and fired at will.
Labor is Viewed as Human Factors of Productions:
Labor has been viewed as a human factor with lot of positive
potentials. So they must be treated with respect and dignity.
People are asset not cost. Management must develop and
utilize the talent of people to achieve common goals.
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6.  Support the organization in achieving its objectives by
developing and implementing human resource (HR)
strategies that are integrated with the business strategy;
 contribute to the development of a high-performance culture;
 ensure that the organization has the talented, skilled and
engaged people it needs;
 create a positive employment relationship between
management and employees and a climate of mutual trust;
 encourage the application of an ethical approach to people
management.
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7. Functions of Human Resource Management
HR Managers are performing a variety of functions. The
functional areas of HR managers are changing as the time goes
on. The main functions of HRM includes:
Human Resource Planning (HRP);
Job Analysis;
Recruitment;
Selection;
Placement ;
Orientation;
Training & Development;
Job Evaluation;
Performance Appraisal &
Compensation.
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8. Human Resource Planning (HRP)
It is a process by which managers ensure that
they have the right number and kinds of
people in the right places at the right times,
who are capable of effectively and efficiently
completing the assigned tasks.
Job Analysis
Job analysis is the process of determining the
tasks of the job & the knowledge, skills and
abilities of an employee required to perform
the job.
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9. Recruitment
attracting
Recruitment is the process of finding &
qualified applicants to fill the vacant position.
Selection
Selection is the process of hiring the best candidate for
the job.
Placement:
Placement is the assignment or re-assignment of duties
to an employment.
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10.  Orientation
Orientation is a process of getting new employees
acquainted with the organization, its culture, rules-
regulation, objectives, supervisors and other employees.
Training & Development
Training is a process of increasing knowledge, skills &
abilities to do the job properly.
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11. Job Evaluation
Job evaluation is a process of determining the relative
value or worth of each job in relation to all other jobs
within an organization.
Performance Appraisal
Performance appraisal is a process of measuring the
actual performance comparing with the standard.
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12. Compensation
Compensation is the reward provided to the employees
in exchange for doing the job.
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13.  Human being is the best creature of Allah.
Management experts have tried to identify the basic
qualities possessed by a human being.
Human beings can think, imagine & feel;
Human beings can be motivated & stimulated;
Human beings have synergetic power;
People have desire for involvement &
 Of all the factors of production only people can perceive
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14. Human beings can think, imagine & feel:
Human beings can think, imagine and feel. They have
creative & innovative power. They have problem-solving
ability. People contribute to new ideas, which are the
foundation for any technological innovation.
 Human beings can be motivated & stimulated:
Human beings can be motivated & stimulated. Experts
believe that employee satisfaction leads to better
performance.
Happy workers are usually productive workers,
a motivated worker works hard.
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15. Human beings have synergetic power:
Synergy means the whole is greater than the sum of its
parts. Human beings can work together as a team and
team performance is usually greater than the
performance of individual.
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16. People have a desire for involvement:
They want to get involved in the relevant decisions. The
organization must provide them opportunities for meaningful
involvement.
 Of all the factors of production only people can perceive:
Perception is the unique way in which each person sees, organizes,
& interprets things. People look at the world and see things
differently.
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17. Deal with people as a complete individual
Treat all employees with justice
Do not underestimate the intelligence of other people
Reward should be earned, not to be given
Make people feel worthwhile and related
Supply employees with relevant information
Provide opportunities for growth
Focus on group interest
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18. Deals with people as a complete individual:
Consider employee as a whole person.
For example: The family life of an employee may have an
effect on his working life.
Treat all employees with justice:
There should be no discrimination in terms of gender, color,
race & religion.
For example: The selection & placement process should
be realized on the basis of equal opportunity principle.
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19.  Do not underestimate intelligence of other people:
People have lot of positive potentials. So, they should be
treated with respect & dignity. The objective of HR
manager is to make the best use of human talent.
Reward should be earned, not to be given:
Reward may be monetary and non-monetary. If it is given,
it becomes a gift or donation.
For example: Students should earn good grade through
hard work.
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20. Make people feel worthwhile and related:
People are the most valuable asset of an organization. Human beings
want to be appreciated and like to feel important for something they
have done well.
Supply employees with relevant information:
Secrecy may create confusion and misunderstanding. Information
should be shared with employees.
Provides opportunities for growth:
According to Herzberg, employee growth is a motivational factor. All
employees are expected to enhance knowledge, skills and
competencies.
Focus on group interest:
According to Fayol, one of the basic principles of management is the
subordination of individual interest to group interest.
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21. The word approach includes ideas or actions intended to deal
with a problem or situation. HRM may be discussed from the
different approaches. These approaches define HRM from the
different perspective:
Strategic Approach;
Human Resource Approach;
Commodity Approach;
Proactive Approach;
Reactive Approach &
System Approach.
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22. Strategic Approach:
Strategy is an action plan of doing
something. People are the strategic
assets of an organization. People
have core competencies, which are
the basis of gaining competitive
advantage.
Human Resource Approach:
People are human beings with a lot
of potentials and intellectual
abilities. It is important to treat
people with respect and dignity.
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23. Commodity Approach:
They are viewed
People are just like commodity.
as a cog of a
machine. People can be hired &
fired through money. There is a
saying, “Money is sweeter than
Honey”
Proactive Approach:
HR managers must anticipate
challenges or problems before they
arise. Prevention is better than
cure. The proactive approach will
save companies considerable time
& money in the short and long
run.
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24. Reactive Approach:
It occurs when decision makers respond to problem. Companies may
lose time & money if they take reactive approach.
System Approach:
A system is a set of interrelated or inter-connected elements or parts
working together or as a whole one. One part affects and be affected
by the another. HRM is a system which may have different parts such
as procurement, training, performance appraisal etc.
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25. Changing mix of workforce
Changing values of the workforce
Changing demands of employees
Introduction of new technology
Outsourcing
Changing demands of the environment
Discrimination
 Conflict resolution
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26. Changing Mix of Workforce
Workforce diversity means that organizations are becoming a
more heterogeneous mix of people in terms of gender, age, race,
ethnicity and gender orientation. Diversified workforce is also
an opportunity for an organization.
Unity in diversity is the new business song.
 Changing Values of the Workforce
New generation workforces are more educated & they prefer
challenging and difficult jobs. High expectation can produce
anger, frustration, disappointment and dissatisfaction if work
experiences do not live up to values and expectations.
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27. Changing Demands of Employees
Contemporary employees are not only happy with the money,
they demand more freedom and autonomy in the workplace.
They are more concerned about intrinsic motivational factors
such as challenging job, recognition & appreciation. They want
more time for leisure, recreation and self-development.
They would like to balance between work life & family life.
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Introduction of New Technology
New technology may lead to retaining or need to
workers with specialist skills. Former typists have
recruit
become
computer operators with the introduction of computer.
Telecommunicating and remote reporting relationships are
becoming norm rather than an anomaly.

28. Changing Market
Changes in the purchasing pattern of consumers may affect the
demand for labor. Changes in the economy can also affect
human resource planning. In recession, a business is likely to
reduce its workforce as demand for its products falls.
Outsourcing
It is the practice of hiring another firm to complete work that is
important and must be done efficiently. Outsourcing refers to
companies giving work to independent contractors outside the
company rather than in house employees. Organizations should
prefer outsourcing when outsourcing can ensure better
quality at lower cost.
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29. Discrimination
HR manager must create a workplace free from any kind of
discrimination. Since more employees are aware of their rights, a
modern HR department may need to handle a potential increase
in complaints about discrimination.
 Conflict Resolution
Interpersonal conflict between co-workers as well as disagreement
between employees and supervisors may happen for many
reasons. It is common for HR managers to investigate complaints
of verbal and physical harassment and they must need to resolve
conflicts before they become serious or harmful.
Is conflict always bad?
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