HRM an introduction

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Human Resource Management – An Introduction
Dr. Smita Choudhary
Faculty HR & OB

SMU Learning Centre, Alwar LC Code
03034
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Contents
•Introduction to Human Resource Management
•Concept of Human Resource Management
•Scope of Human Resource Management
•History of Human Resource Management
•Function of Human Resource Management
•Role of HR Executives
•Summary
•Check Your Learning
•Activity

SMU Learning Centre, Alwar LC Code 03034
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Objectives
After studying this chapter, you will be
able to------
• Describe the concept of HRM
• Define the scope of HRM
• Describe the history of HRM
• Explain the functions of human resource
• Recognize the role of HR executives

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Introduction
• Every organization is essentially a blend of material and Human Resource
(HR).
• Human Resource refers to the knowledge, education, skills, training and
ability of the members of the organization. Human resources are the most
valuable and unique assets of an organization.
• Even though specific human resource functions/activities are the
responsibility of the human resource department, the actual management of
human resources is the responsibility of all the managers in an organization.
• The scarcity of talented resources and the growing expectations of the
modern day worker have further increased the complexity of the human
resource function.

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Concept of Human Resource Management
• Today’s organizations constantly mould itself to meet the
business challenges despite economic, political and social
patterns in which it exists.
• The efforts made by organizations to sustain business metrics
like revenue, profits and growth, market share is possible only
through the people in the organization who work towards
making this happen within the enterprise.
• According to Fisher, Schoendfelt and Shaw in their book “Human
Resources Management,“ HRM involves all management
decisions and practices that directly affect or influence the
people or Human resources who work for the organisation”.

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A human resource manager has to build an
effective workforce, handle the
expectations of the employees and ensure
that they perform at their best.
Some of the Objectives of HRM
The objectives of HRM can be classified into
the following:
•To act as a link between the top
management and the employees.
•To arrange and maintain adequate
manpower inventory, which in turn,
ensures the smooth working of the
organisation.
•To help keep up ethical values and
behaviour amongst employees both within
and outside the organisation.
A human resource manager has to build an
effective workforce, handle the
expectations of the employees and ensure
that they perform at their best.
Some of the Objectives of HRM
The objectives of HRM can be classified into
the following:
•To act as a link between the top
management and the employees.
•To arrange and maintain adequate
manpower inventory, which in turn,
ensures the smooth working of the
organisation.
•To help keep up ethical values and
behaviour amongst employees both within
and outside the organisation.

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• The scope of HRM is wide and far-reaching.
• An understanding of HRM is important to anyone who is employed in an
organisation.
• HR issues become important wherever there is a group of workers. Staffing is
performed by all the managers as a managerial function, either directly or
indirectly through HR department.
• All managers are, in this way, HR managers, since they get involved in HR
activities such as selecting, training, inducting, compensating and motivating
the employees along with industrial relations activities.
• Scope of HRM can be classified under the following heads:
 HRM in personnel management
 HRM in employee welfare
 HRM in industrial relations
• The scope of HRM is wide and far-reaching.
• An understanding of HRM is important to anyone who is employed in an
organisation.
• HR issues become important wherever there is a group of workers. Staffing is
performed by all the managers as a managerial function, either directly or
indirectly through HR department.
• All managers are, in this way, HR managers, since they get involved in HR
activities such as selecting, training, inducting, compensating and motivating
the employees along with industrial relations activities.
• Scope of HRM can be classified under the following heads:
 HRM in personnel management
 HRM in employee welfare
 HRM in industrial relations
Scope of Human Resource Management

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Scope of Human Resource Management

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History of Human Resource Management
• There is a vast difference between modern HRM and the personnel management
that was prevalent decades ago.
• By the end of the twentieth century, the managerial philosophy that had defined
the personnel function had undergone radical changes.
• There are various approaches:
 Scientific management approach: Fredrick Taylor, who is widely
considered to be the father of scientific management, focused on motions that
were required for each job, the tools used and the time needed to accomplish
each task.
 Human relations approach: The Hawthorne studies conducted during the
1930 and 1940s, forced organizations to shift their attention from scientific
management approach to human relations approach.
• It was recognized that treating employees with respect would improve employee
satisfaction and help in achieving higher productivity.
• Human resources approach: Human resources treat people as resources, rather than
factors of production, or as human beings who act on the basis of emotions alone.

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Some of the principles of human resource approach are:
•Employees are assets to an organisation.
•Policies, programmes and practices must cater to the needs
of employees and should help them in their work and in their
personal development.
•Employee rewards may be monetary such as hike in salary or
increments or it may be non-monetary such as change in
designation, status, fringe benefits, etc.
History of Human Resource Management

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Function of Human Resource Management
•Human resource management involves blending the traditional
administrative functions along with the changing concepts of employee
welfare in the organisation.
•The retention of employees is dependent on how they are perceived and
treated in the organisation based on their performance, abilities and skills.
•The extent of activities carried out by the HR is dependent on the size and
scope of the organisation, the nature of operations and the attitude of
management towards the employees.
•HRM functions can be broadly classified into the following two
categories:
• Managerial functions
• Operative functions

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Managerial functions of HR department
•Planning – Future course of action; it also includes identifying human resource
requirements and forecasting personnel needs.
•Organizing – Division of labor; assignment of responsibility is part of the
organization's functions.
•Staffing – It is the process of obtaining and maintaining capable and competent
personnel in various positions at all levels, i.e., manpower planning, recruitment,
selection, placement and induction.
•Directing – It is the process of directing all the available resources towards the
common organizational goals.
•Controlling – It is the measurement and rectification of activities to ensure that the
events conform to plans.

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Operative functions of HR department: Operative functions of HR
department are those core functions that only the HR department is assigned
to perform. These functions are:
Employment
Employment is the first operative function of HRM. This involves procuring and
employing individuals with suitable knowledge, skills, experience and aptitude
necessary to perform various jobs.
The various functions of employment are:
•Job analysis
•HR planning
•Recruitment
•Selection
•Placement
•Induction

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HR development
•HR development concentrates on developing the workforce so that both the
employees and the organisation in turn can achieve their goals.
•This includes functions starting with evaluating the performance of the employees,
providing necessary training and development programmes to fill the gaps between
current performances to the optimum performance of employees.
HR development involves functions such as:
•Performance appraisal – This is the process of evaluating the performance of an
employee on the job and developing a plan for the employee’s improvement.
•Training – Training is the systematic development of knowledge, skills and attitudes
required to perform a given task or job successfully, in an individual.
•Management development – It is the concept of developing the employees of an
organisation to meet future changes and challenges.
•Career planning and development – Career planning and development refers to
identifying one’s career goals and formulating plans for achieving them through
various means such as education and work experience.

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Compensation
•It includes all the rewards that an employee receives during the course of his
or her job–for his or her contributions to the organisation. It includes:
Job evaluation – It is a systematic determination of the value of each
job in relation to other jobs in the organisation, in the industry and in
the market.
Wage and salary administration – It is the process of formulating
and operating a suitable wage and salary programme.
Incentives – These are the rewards that an employee earns in addition
to regular wages or salary based on the performance of the individual,
the team or the organisation.
Fringe benefits – These are monetary and non-monetary benefits
given to employees during their employment and sometimes, also in
the post-employment period.

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Employee relations
•It deals with the employees, in the organisational context, as a social
group that contributes to the organisation. It includes:
Increasing employee productivity.
Keeping the employees satisfied and motivated.
Developing team building, team management, leadership skills in
employees.

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Role of HR Executives
• Managing people is one of the biggest challenges for a manager. Few
of the reasons are:
Individuals differ from each other in terms of their values, attitudes,
beliefs and culture. This leads to a very complex situation.
The stimulating and motivational factors might not be the same for
all employees.
• It is important to understand the individual needs of the employees
and cater to those needs.
• This involves taking up different roles by the HR.
• The specialist role of HR manager includes:

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• Service provider – Management needs to gather information such as
market statistics, pay rates and labor laws and legislations from the market
as well as from their competitors before making decisions on various
employee related issues.
• Managing Administrative expert – The administrative role involves
record keeping and legal compliance.
• Facilitator – They act as a facilitator when training and development
actions are planned and conducted and when performance appraisals are
done.
• Consultant – While supervising the employees, managers face many
problems.
• Auditor – HR specialists are responsible for ensuring that all members of
the management perform their respective roles efficiently and also ensures
that there is effective use of the human resources of the organisation.

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• Change agent – It is the HR that helps organisations to implement
changes and help employees adapt to changes.
• Employee advocate – HR employees are the link between the top
management and the employees. The concerns of the employees are
first reported to the HR personnel. They report these issues to the top
management and try to resolve the issues.
HR in any organisation has multiple roles to play. No HR can perform
just one role. They may have to perform all the mentioned roles at
different stages in their career as HR personnel.

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• Human resource management is one of the most complex and challenging
field of management study. It mainly deals with people dimension in
management.
• The primary objective of HRM is to take care of the work life of employees
even while ensuring their best possible cooperation for achieving the
organisational goals and objectives.
• The scope of HRM can be divided into HRM in personnel management, HR
in employee welfare, HR in industrial relations.
• Basically, HRM includes the four functions of acquiring, developing,
motivating and managing the human resources. HRM functions are broadly
classified into two categories – managerial and operative functions.
• Managerial functions include planning, organising, directing and controlling.
• The specialist role of the HR professional takes a number of roles, which is
that of an auditor, service provider, administrative expert, facilitator,
consultant, the change agent and employee advocate.
Summary

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Thanks

HRM an introduction

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