The document discusses the key resources that make up an organization - men, material, money, and machinery. It emphasizes that human resources are the most important as they utilize the non-human resources. Effective human resource management (HRM) is important for organizational success. HRM involves planning, organizing, directing, and controlling human resources to achieve individual, organizational, and social goals. It aims to provide a healthy work environment where people can utilize their talents fully while achieving organizational objectives. Proper leadership and management of human resources is essential to get the best performance from employees.

2.  An organisation is made up of 4 resources
Men
Material
Money Non Living
Machinery
It is the human that make use of non human resources.
Basic concept of HR

3. People can move mountains!
 Of all the resources
available to man, only
man can grow and
develop.
 If the skill and the will
are properly applied,
wonderful things can
happen

4.  Therefore, an organisation must provide a
healthy work climate where they can exploit
their talents fully while realising goals
assigned to them.
 Above all, to get the
best out of people,
they must be
managed well and
requires leadership.

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

6. © 2005 by Nelson, a division of
Thomson Canada Limited. 1–6
Competitive Advantage through People
 Sustained competitive advantage through people is
achieved if these human resources:
 Have value.
 Are rare and unavailable to competitors.
 Are difficult to imitate.
 Are organized for synergy.

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

8. Characteristics of HRM
Human Resources are heterogeneous
(Different people, different personalities, different needs, attitudes and values).
Human resources are dynamic and behave differently
(They react to the same situation in quite different ways).
HR are the most important element in an organization.
The effective utilization of all other resources depend upon the quality of HR.
The term HR is wider than the term Personnel.
HR include all dynamic components of all the people at all levels in the
organization, whereas personnel means the employees working in the
organization.

9. Authority- right to make decisions and give orders
Line Authority- It creates a superior –subordinate
relationship
Staff Authority- It creates an advisory relationship
HR managers are usually considered as staff managers,
since they assist and advise the line managers in areas
like recruiting, hiring and compensation.
Line And Staff Aspect Of HRM

10. HRM as a central department
Product
deptt.
HR deptt.
Procurement
Training
Compensation
Appraisal
Rewards
Marketing
deptt.
Finance
deptt.
Technical
deptt.
ORGANISATION

11. WHY HRM?
As managers none of us would like to make the following
mistakes:
To hire the wrong person for the job.
To experience high turnover .
To find our people not doing their best.
To waste time with countless and useless interviews.
To be quoted under bad example of unsafe practices.
To have employees think their salaries are unfair and inequitable
To allow a lack of training
To commit any unfair labor practices .

12. 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

13. Objectives 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
 communicate HR policies to all
 ethically and socially responsible
 help managers in faster cycle times (customer service, product changes, adaptation)
 Manage in shorter cycle times (in training, recruitment)

14.  At the enterprise level:
 attracting and retaining the required talent
 developing skills and right attitude towards job & co.
 dedicated and motivated employees
 ensuring a positive image inside and outside
 At the individual level:
 provides ample opportunities
 healthy relationships among individuals and team
 allocating work properly
 At the society level:
 employment opportunities multiply
 employee welfare
Importance of HRM

15. The scope of HRM is Very wide
 Personnel Aspect: It is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, t&d,
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 deals with co. relations
with employees. Covers union – management relations, joint
consultation, collective bargaining, grievance and disciplinary
procedures, settlement of disputes etc.
Scope

16. Functions of HRM
– Planning
– Organizing
– Directing
– Controlling
Operative Functions
HRM
Managerial
functions: Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal
mobility
Development:
Performance
appraisal
Training
Executive
development
Career
planning
Compensation:
Job evaluation
Wage and
salary
administration
Bonus and
incentives
Maintenance:
Health
Safety
Welfare
Social
security
HR records
HR audit
HR research
Integration:
Motivation
Job
satisfaction
Grievances
redressal
Discipline
Collective
bargaining
Participation
Conflict
management

17.  Industrial Revolution: Machines based production, rapid
progress in technology, jobs specialization increased, but
left workers with 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 HRM

18.  Trade Unionism: Workers joined hands to protect against
the exploitive tendency of employers and unfair labor
practices. TU tried to improve work conditions, pay and
benefits, disciplinary actions etc.
 Personnel management: Fire fighting stage- Employee
disputes, trade unions, decisions taken by top management.
 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.

19. Evolution of HRM
1920-1930
Scientific management
1940-1960
HRM
1970-1980
Development phase
1991-
ownwards
Personnel management
Welfare management

20. The Changing
Environment of
HRM

21. Changes experienced by organizations
 Going global, increase in size and complexity
 Facing competition
 Embracing technology like automation and
computerisation
 Increased demand for individual and organizational
competencies
 Faster cycle times
 Increasing legal and compliance scrutiny
 Higher customer, employee and society expectations
 Developing human capital
 Responding to the market
 Containing costs
The mechanized, routine-oriented workforce is giving
way to a knowledge-based workforce

22. Globalization Trend
Companies dealing across the nation : Sony, Apple, Nike, Mercedes Benz,
Infosys, TCS etc.

23. © 2005 by Nelson, a division of
Thomson Canada Limited. 1–23
Influence of Technology in HRM
 Human Resources Information System (HRIS)
 Computerized system that provides current and
accurate data for purposes of control and decision
making.
 Benefits:
 Store and retrieve of large quantities of data.
 Combine and reconfigure data to create new information.
 Institutionalization of organizational knowledge.
 Easier communications.
 Lower administrative costs, increase productivity, and
response times.

24. © 2005 by Nelson, a division of
Thomson Canada Limited. 1–24
Major Uses For
HR Information
Systems
Source: HR and Technology Survey,
Deloitte & Touche and Lawson
Software, 1998.
HRM 1

25. © 2005 by Nelson, a division of Thomson Canada Limited. 1–25
Demographic and Employee Concerns
The Diversity Challenge Age distribution
HRM 4

26. © 2005 by Nelson, a division of Thomson Canada Limited. 1–26
Gender Distribution Rising levels of edu

27. © 2005 by Nelson, a division of Thomson Canada Limited. 1–27
Cultural Changes
 Employee Rights
 Concern for Privacy
 Changing Attitudes
Towards Work
 Balancing Work and
Family

28. © 2005 by Nelson, a division of
Thomson Canada Limited. 1–28
Top Issues for Managers
in Balancing Work and Home
Executive recruiters say 80% of senior and mid management candidates
raised concerns about balancing work and home. Top issues:
Source: Association of Executive Search
Consultants (member survey). Used with
permission of the Association of Executive
Search Consultants, http://www.aesc.org.
Figure 1.8

29. © 2005 by Nelson, a division of
Thomson Canada Limited. 1–29
Overall Framework for HRM
Presentation Slide 1–1
COMPETITIVE
CHALLENGES
• Globalization
• Technology
• Managing change
• Human capital
• Responsiveness
• Cost containment
HR policy choices
• Procurement
• Development
• Compensation
• Integration
• Maintenance
STAKE HOLDERS
INTEREST
• share holders
• employees
• mgt
• Govt & community
• Union Figure 1.1
CONSEQUENCES
Individual well being
Org. well being
Societal well being

30. Thanks