Human resource management basics

1. HUMAN RESOURCE
MANAGEMENT

2. Meaning and Definition
• Human resource is the wealth of a nation and an organisation . Human resource is
the total knowledge ,abilities ,skills ,talents and aptitude of an organisation’s
workforce.
• Human resource management is that process of management which develops and
manages the human elements of an organisation.
• According to Flippo, “ human resource management is the planning , organising ,
directing , and controlling of the procurement ,development ,compensation,
integration, maintenance and separation of human resources to the end that
individual, organisational and societal objectives are accomplished “.
• HRM can be defined as a process of procuring, developing and maintaining
competent human resources in the organisation so that goals of an organisation are
achieved in an effective and efficient manner .

3. IMPORTANCE OF HRM
• To maintain quality of work life .
• To increase productivity and profit .
• To attract and retain the best people in the organisation to accomplish goals of company .
• To focus on motivation of employees by providing financial and non- financial incentives .
• Effective and efficient HRM promotes teamwork and team spirit among employees
• HRM helps to ensure excellent growth opportunities to all employees and executives by
ensuring effective training and development .
• In order to make use of latest technology , recruitment and placement of right type of
human resource is facilitated by HRM .

4. Importance of HRM contd..
• Globalisation has increased the size and operations of organisations . Effective
and professional management of human resources are essential in the context of
globalisation .
• The effectiveness with which human resources are sourced ,developed and utilised
determines the success of organisations .
• The HR Manager acts as a consultant and mediates to sort out the issues and
conflicts between employees and employer . The disputes and grievances among
employees are also resolved through HR Department .
• It helps an organisation meet its goals in future by ensuring availability of
competent and well motivated employees .

5. SCOPE OF HRM
The scope of HRM includes all activities starting from manpower planning till
separation of employees . It is concerned with the personnel aspect , welfare
aspect and industrial relations aspect . The scope of HRM is very wide and it
includes :
• HR Planning (HRP)
• Job analysis
• Job evaluation
• Recruitment and selection
• Training and development
• Employee compensation

6. Scope of HRM Cont….
• Employee motivation
• Employee welfare
• Career development
• Labour relations
• Organisational development
• HR Information system
• HR Audit
• Quality of work life
• Conducting research .

7. OBJECTIVES OF HRM
The objective of HRM is to ensure the availability of competent and willing
workforce to organisation as well as to meet the needs ,expectations and dignity of
employees with a concern for the socio-economic values of the society. Specific
objectives are :
• To achieve the organisational goals by proper utilisation of human resources.
• To integrate individual and group goals within an organisation .
• To manage human resources in an ethical and socially responsible manner.
• To ensure compliance with legal and ethical standards .
• To create opportunities and facilities for individual and group development .
• To develop and maintain healthy relation between management and employees .

8. Objectives of HRM contd ….
• To provide an opportunity for employees to participate in management .
• To ensure healthy and hygienic working conditions.
• To motivate and to maintain high morale among employees.
• To promote leadership abilities and team spirit among the employees and
executives of the organisation .
• To improve the quality of professional life in the organisation.
• Managing change.

9. EVOLUTION OF THE CONCEPT OF HRM
• The commodity concept
• Factor of production concept
• Paternalistic approach
• Humanitarian concept
• Behavioural human resources concept
• Emerging concept of partners in the progress of organisation.

10. HISTORY OF MODERN HRM
1 )Early philosophy (Before 1900)
The history of modern HRM began with the efforts of Robert Owen, founder of
HRM. He eliminated child labour and emphasised the need for healthy working
conditions. He is the author of book “A New View of Society “
2 )Efficiency and Productivity Movement (1900-1920)
Taylor’s Scientific Management Thought was accepted during this period .
3)Period of Welfarism and Industrial Psychology (1920-1930)
During this period ,staff line organisation became the basis of HRM .HRM began to be
realized as a profession and a specialist’s function .

11. History of Modern HRM contd..
4) Period of Human Relations (1930 -50)
As a result of Hawthorn Experiments during this period , the commodity
concept of labour changed to social concept .
5) Modern Times (after 1950)
It is the period up to current times , highlighting the concept of industrial
democracy . Now HRM is recognised as a profession and focuses more
on development aspects of human resources .

12. Approaches to HRM
• Strategic approach
• Management approach
• Human resource approach
• Commodity approach
• Proactive approach
• Reactive approach
• System approach

13. Personnel Management vs HRM
• Personnel management tends to follow a rule based system offering standard benefits
and training ,rewarding employees annually provided that their performance is
satisfactory .It approaches problems reactively.
• Human resource management chooses to honour their employees with attractive
benefits and perks .It thrives on proactivity, any circumstances that could result in a
dispute is prevented through proper training, communication and management.
• Personnel management focuses on the maintenance of all personnel and administrative
systems , whereas human resource management has a more strategic approach ,
forecasting the organisation’s needs and continuously monitoring and adjusting all
systems.

14. COMPARISON OF PERSONNEL MANAGEMENT AND HRM
Basis of comparison Personnel Management HRM
Approach Traditional Modern
Treatment of manpower Like machines Asset
Type of function Routine function Strategic function
Basis of pay Job evaluation Performance evaluation
Role of management Transactional Transformational
Communication Indirect Direct
Management actions Procedure Business needs
Decision making Slow Fast