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-Dr.T.Sumathi
Avinashilingam University
 Human Resource Management is the process of acquiring, training,
appraising, and compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.
 The comprehensive set of managerial activities and tasks concerned with
developing and maintaining a qualified workforce - human resources – in
ways at contribute to organizational effectiveness.
 The personnel function is concerned with the procurement, development,
compensation, integration and maintenance of the personnel of an
organization for the purpose of contributing toward the accomplishment of
that organization‘s major goals or objectives.‖ - Edwin B. Flippo.
 HRM involves management functions like planning, organizing,
directing and controlling.
 It involves procurement, development, maintenance and
management of human resource.
 It helps to achieve individual, organizational and social objectives.
 HRM is a mighty disciplinary subject. It includes the study of
management psychology communication, economics and sociology.
 It involves team spirit and team work.
The scope of HRM refers to all the activities that come under the banner of HRM. The activities are as
Follows:
 Human resources planning: – Human resource planning is a process by which the company to
identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to
deal with this excess or shortage.
 Job analysis design: – Another important area of HRM is job analysis. Job analysis gives a detailed
explanation about each and every job in the company. Based on this job analysis the company
prepares advertisements.
 Recruitment and selection: – Based on information collected from job analysis the company
prepares advertisements and publishes them in the news papers. A number of applications are
received after the advertisement is published, interviews are conducted and the right employee is
selected thus recruitment and selection are yet another important areas of HRM.
 Orientation and induction: – Once the employees have been selected an
induction or orientation program is conducted. The employees are
informed about the background of the company. They are told about the
organizational culture and values and work ethics and introduce to the
other employees.
 Training and development: – Every employee goes under training
program which helps him to put up a better performance on the job.
Training program is also conducted for existing staff that have a lot of
experience. This is called refresher training. Training and development is
one area were the company spends a huge amount.
 Performance appraisal: – Once the employee has put in around 1 year of
service, performance appraisal is conducted i.e. the HR department
checks the performance of the employee. Based on these appraisal
future promotions, incentives, increments in salary are decided.
 Compensation planning and remuneration: – There are various rules
regarding compensation and other benefits. It is the job of the HR
department to look into remuneration and compensation planning.
 Motivation, welfare, health and safety: – Motivation becomes important
to sustain the number of employees in the company. It is the job of the
HR department to look into the different methods of motivation. Apart
from this certain health and safety regulations have to be followed for
the benefits of the employees.
 Industrial relations: – Another important area of HRM is maintaining co-
ordinal relations with the union members. This will help the organization
to prevent strikes lockouts and ensure smooth working in the company.
1. Action Oriented: Human Resource management focuses attention on action, rather
than on record keeping, written procedures or rules. The problems of employees at
work are solved through rational policies.
2. Individuality Oriented: It tries to help employees develop their potential fully. It
encourages them to give out their best to the organization. It motivates employees
through a systematic process of recruitment, selection, training and development
coupled with fair wage and policies.
3. Integrating Mechanism: Human Resource Management tries to build and maintain
cordial relations between people working at various levels in the organization. In
short, it tries to integrate human aspects assets in the best possible manner in the service
of an organization.
4. Pervasive Force: Personnel Management is pervasive in
nature. It is present in all enterprises. It permeates all levels
of management in an organization.
5. Auxiliary Service: Personnel departments exist to assist and
advise the line or operating managers to do their personnel
work most effectively. Human Resource manager is a special
advisor.
 The Strategic Nature – HRM must be a strategic business partner
and represent employees. forward-thinking, support the business
strategy, and assist the organization in maintaining competitive
advantage.
 concerned with the total cost of its function and for determining
value added to the organization.
Functions of Human Resource Management
 Planning
 Organizing
 Directing
 Controlling
•A manager must plan ahead in order to get things done by his subordinates.
It is also important to plan in order to give the organization its goals.
•Also, planning helps establish the best procedures to reach the goals.
Further, some effective managers devote a substantial part of their time to
planning.
•With respect to the human resource department, planning involves
determining the personnel programs that can contribute to achieving the
organization’s goals.
•These programs include anticipating the hiring needs of the organization,
planning job requirements, descriptions, and determining the sources of
recruitment.
After the human resource manager establishes the objectives and develops plans
and programs to achieve them, he needs to design and develop the organization’s
structure to carry out the different operations. Developing the organization’s
structure includes:
 Grouping of personnel activity into functions or positions
 Assigning different groups of activities to different individuals
 Delegating authority according to the tasks assigned and responsibilities involved
 Coordinating activities of different employees
 The HR Manager can create plans, but implementing the plans smoothly depends
on how motivated the people are. The directing functions of HRM involve
encouraging people to work willingly and efficiently to achieve the goals of the
organization. In simpler words, the directing functions of HRM entail guiding and
motivating people to accomplish the personnel programs.
 The HRM can motivate the employees through career planning and
salary administration by boosting the employee’s morale, developing relationships,
providing safety requirements, and looking after the welfare of employees.
 In order to do this effectively, the HRM must identify the needs of the employees
and the means and methods to satisfy them. Motivation is a continuous process as
employees have new needs and expectations when the old ones are satisfied.
 Controlling is all about regulating activities in accordance with the plans
formulated based on the objectives of the organization. This is the fourth
function of the HRM and completes the cycle. In this, the manager observes
and subsequently compares the results with the set standards.
 Further, he corrects any deviations that might occur. Controlling is one of the
important functions of HRM as it helps him evaluate and control the
performance of the department with respect to different operative functions. It
also involves appraisals, audit, statistics, etc.
Meaning Of System
A SYSTEM IS A COLLECTION OF ELEMENTS OR COMPONENTS THAT ARE
ARE ORGANIZED FOR A COMMON PURPOSE.
Cleland And King ,”a System May Be Defined As An Assemblage Or Combination Of
Things Or Parts Forming A Complex Or Unitary Method
AN ORGANIZATION IS A SYSTEM HAVING
FOLLOWING CHARACTERISTICS:-
1. The System Is Goal Oriented
2. The Whole Is More Than The Sum Of All Parts Of The System
3. Subsystems Are Interrelated And Interdependent
4. A System Acts Upon Its Environment And Is Also Acted Upon By Its
Environment
Organization As System
 Open System
 ·A Business Organization Is An Open Adaptive System As It Influences And Is
Influenced By The External Environment Continuously
 · Receives Inputs From The Environment And Transform Them Into Output.
 In Order To Carry Out Its Operations Effectively A Business Generally Creates
Certain Departments Which Are Known As Subsystems.
The Important Subsystems:-
 1. Human Resource System:-dealing With Human Resources
 2. Production System:-production Function
 3. Finance System:-finance Function
 4. Marketing System:-marketing Function
 5. Research And Development
 The American Society For Training And Development(astd) Has Identified Th
Following Nine Areas Which Are The Spoke Of Wheels And Each Area
Contributes To Quality Of Work Life, productivity And Readiness To Change.
1. Training And Development
2. Organization And Development
3. Organization/Job Design
4. Human Resource Planning
5. Selection And Staffing
6. Personnel Research And Information System
7. Compensation/Benefits
8. Employee Assistance
9. Union Labour Relations
Thankyou

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HRM Unit 1

  • 2.  Human Resource Management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.  The comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforce - human resources – in ways at contribute to organizational effectiveness.  The personnel function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing toward the accomplishment of that organization‘s major goals or objectives.‖ - Edwin B. Flippo.
  • 3.
  • 4.  HRM involves management functions like planning, organizing, directing and controlling.  It involves procurement, development, maintenance and management of human resource.  It helps to achieve individual, organizational and social objectives.  HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology.  It involves team spirit and team work.
  • 5. The scope of HRM refers to all the activities that come under the banner of HRM. The activities are as Follows:  Human resources planning: – Human resource planning is a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage.  Job analysis design: – Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements.  Recruitment and selection: – Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important areas of HRM.
  • 6.  Orientation and induction: – Once the employees have been selected an induction or orientation program is conducted. The employees are informed about the background of the company. They are told about the organizational culture and values and work ethics and introduce to the other employees.  Training and development: – Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area were the company spends a huge amount.  Performance appraisal: – Once the employee has put in around 1 year of service, performance appraisal is conducted i.e. the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided.
  • 7.  Compensation planning and remuneration: – There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning.  Motivation, welfare, health and safety: – Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees.  Industrial relations: – Another important area of HRM is maintaining co- ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.
  • 8. 1. Action Oriented: Human Resource management focuses attention on action, rather than on record keeping, written procedures or rules. The problems of employees at work are solved through rational policies. 2. Individuality Oriented: It tries to help employees develop their potential fully. It encourages them to give out their best to the organization. It motivates employees through a systematic process of recruitment, selection, training and development coupled with fair wage and policies. 3. Integrating Mechanism: Human Resource Management tries to build and maintain cordial relations between people working at various levels in the organization. In short, it tries to integrate human aspects assets in the best possible manner in the service of an organization.
  • 9. 4. Pervasive Force: Personnel Management is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organization. 5. Auxiliary Service: Personnel departments exist to assist and advise the line or operating managers to do their personnel work most effectively. Human Resource manager is a special advisor.
  • 10.  The Strategic Nature – HRM must be a strategic business partner and represent employees. forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage.  concerned with the total cost of its function and for determining value added to the organization.
  • 11. Functions of Human Resource Management  Planning  Organizing  Directing  Controlling
  • 12. •A manager must plan ahead in order to get things done by his subordinates. It is also important to plan in order to give the organization its goals. •Also, planning helps establish the best procedures to reach the goals. Further, some effective managers devote a substantial part of their time to planning. •With respect to the human resource department, planning involves determining the personnel programs that can contribute to achieving the organization’s goals. •These programs include anticipating the hiring needs of the organization, planning job requirements, descriptions, and determining the sources of recruitment.
  • 13. After the human resource manager establishes the objectives and develops plans and programs to achieve them, he needs to design and develop the organization’s structure to carry out the different operations. Developing the organization’s structure includes:  Grouping of personnel activity into functions or positions  Assigning different groups of activities to different individuals  Delegating authority according to the tasks assigned and responsibilities involved  Coordinating activities of different employees
  • 14.  The HR Manager can create plans, but implementing the plans smoothly depends on how motivated the people are. The directing functions of HRM involve encouraging people to work willingly and efficiently to achieve the goals of the organization. In simpler words, the directing functions of HRM entail guiding and motivating people to accomplish the personnel programs.  The HRM can motivate the employees through career planning and salary administration by boosting the employee’s morale, developing relationships, providing safety requirements, and looking after the welfare of employees.  In order to do this effectively, the HRM must identify the needs of the employees and the means and methods to satisfy them. Motivation is a continuous process as employees have new needs and expectations when the old ones are satisfied.
  • 15.  Controlling is all about regulating activities in accordance with the plans formulated based on the objectives of the organization. This is the fourth function of the HRM and completes the cycle. In this, the manager observes and subsequently compares the results with the set standards.  Further, he corrects any deviations that might occur. Controlling is one of the important functions of HRM as it helps him evaluate and control the performance of the department with respect to different operative functions. It also involves appraisals, audit, statistics, etc.
  • 16. Meaning Of System A SYSTEM IS A COLLECTION OF ELEMENTS OR COMPONENTS THAT ARE ARE ORGANIZED FOR A COMMON PURPOSE. Cleland And King ,”a System May Be Defined As An Assemblage Or Combination Of Things Or Parts Forming A Complex Or Unitary Method AN ORGANIZATION IS A SYSTEM HAVING FOLLOWING CHARACTERISTICS:- 1. The System Is Goal Oriented 2. The Whole Is More Than The Sum Of All Parts Of The System 3. Subsystems Are Interrelated And Interdependent 4. A System Acts Upon Its Environment And Is Also Acted Upon By Its Environment
  • 17. Organization As System  Open System  ·A Business Organization Is An Open Adaptive System As It Influences And Is Influenced By The External Environment Continuously  · Receives Inputs From The Environment And Transform Them Into Output.  In Order To Carry Out Its Operations Effectively A Business Generally Creates Certain Departments Which Are Known As Subsystems. The Important Subsystems:-  1. Human Resource System:-dealing With Human Resources  2. Production System:-production Function  3. Finance System:-finance Function  4. Marketing System:-marketing Function  5. Research And Development
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  • 20.  The American Society For Training And Development(astd) Has Identified Th Following Nine Areas Which Are The Spoke Of Wheels And Each Area Contributes To Quality Of Work Life, productivity And Readiness To Change. 1. Training And Development 2. Organization And Development 3. Organization/Job Design 4. Human Resource Planning 5. Selection And Staffing 6. Personnel Research And Information System 7. Compensation/Benefits 8. Employee Assistance 9. Union Labour Relations