This document provides an introduction to human resource management (HRM). It defines HRM and discusses its key characteristics, including that it deals comprehensively with people at all levels of an organization. The document outlines the significance of HRM for enterprises, professionals, society, and nationally by helping organizations attract and develop talent, increase productivity and economic growth. Finally, it distinguishes HRM from traditional personnel management, noting HRM is more modern, flexible, long-term focused and treats people as an asset rather than cost.

1. Module 1
An introduction
SARATH, Ist M.com, Post Graduate department of commerce, St. Stephens College

2. Module 1 Introduction 2

3. Module 1 Introduction 3
Human resource – characteristics
 Human resource of an organization are the product of their biological
inheritance and interactions with the environment.
 Human resource are heterogeneous
Human resource are dynamic and behave differently
They are the most important element in an organization
They have greatest potential to develop and grow
The term human resource is wider than the term personnel

4. Module 1 Introduction 4
HRM - Concept and definition
“The planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and reproduction of human resource to the end
that individual, organizational and societal objectives accomplished”
Flippo
“That field of management which has to do with planning, organizing and controlling the
functions of procuring, Developing, maintaining and utilizing a labour force, such that the
(a)Objectives for which the company is established are attained economically and effectively;
(b)Objectives of all levels of human resources are served to the highest possible degree; and
(c)Objectives of society are duly coincided and served
Michale J. Jucius

5. Module 1 Introduction 5
Characteristics of HRM
o Comprehensive function applicable in all levels and cover all type of peoples.
o People oriented it deals with peoples
o Action oriented focused on action rather than procedure
o Individual oriented it focuses on individuals
o Development oriented aims at developing individuals potential
o Pervasive function applicable in all and every spears of an organization
o Continuous function an endless function

6. Module 1 Introduction 6
Characteristics of HRM
o Nervous system similar to nervous system in the body
o Future oriented for the future development of an organization
o Challenging function due to dynamic nature of peoples
o Science as well as art organized body guided by principles, and handling people which is creative art
o Young discipline recent origin by 19th century
o Interdisciplinary has got knowledge from various fields (sociology, anthropology, economics)

7. Module 1 Introduction 7
Significance of HRM
1. For an Enterprise. Helps in attaining goals in following ways
 Attracting and retaining required talents via planning, placement, recruitment,
selection , orientation etc.
 Developing skills and attitude among employees via training, development,
performance appraisal
 Securing willing cooperation via motivation, participation, grievance handling.
 Utilizing effectively available human resource
 Ensuring that it I'll have a competent and dedicated employees

8. Module 1 Introduction 8
Significance of HRM
2. Professional significance.
Effective management of HR result in improving quality of life & create healthy working
environment. It contributes to professional growth in following ways,
 Providing maximum opportunities for personal development of each employees.
 Maintaining healthy relationship among individuals, and different work group.
 Hike in salary and increase consumption power
 Improve social status

9. Module 1 Introduction 9
3. Social Significance
Sound HRM has a significant role in society as it enhance dignity of human labour
o Healthy environment provide Socio-psychological satisfaction of workers
o Maintaining balance between job seekers and job availability i.e. employment opportunities
o Optimum utilization of scares resources
o Improving the reputation of a concern
Significance of HRM

10. Module 1 Introduction 10
Significance of HRM
4. National Significance
It has got some national importance because.
 Creation of employment
 Increases consumption and standard of living
 Increases per capita income
 Maintaining surplus BoP
 Increases GDP
 Improve Happiness Index
 Improve growth rate
 Increase FDI & FII
Balance Of Payment account. A
systematic recording of
economic transaction between
Indian residents and residents
in the rest of the world.
Currency outflow is treated as
debit and inflow as credit.

11. Module 1 Introduction 11
Significance of HRM
 Improving CSR activities
 Maintaining tax compliance
 Reducing public expenditure there by reducing fiscal deficit in budget
and implementing FRBM Act.
 Boom in Stock market
 Expansion of business
 Spread of Business in rural area and result in rural development

12. Module 1 Introduction 12
Personnel Management & HRM
o Many people interchangeably use HRM and Personnel management are one and the same,
but they are not.
o Management experts opinions that HRM is an ‘old wine in the new bottle’
Personnel Management
‘ It is an administrative function of an organization that exists to provide the personnel needed
for organizational activities and to manage the general employee-employer relationship’
 Its main focus is towards management trade union relations
 policies are formulated mainly for people at lower levels of the organization

13. Module 1 Introduction 13
Personnel Management & HRM
Personnel Management Human Resource Management
Conventional system of manpower management Modern system of manpower management
Follow bureaucratic approach and rigid in
nature
Follow people oriented management and flexible
in nature
Consider people as a variable cost and aims at
minimizing it
View people as a resource and tries for its
optimum utilization
Persuades peoples to comply with rules and
regulations.
Enhances workers participation through team
work
Plans for short term and is reactive Plans for long term and is proactive
Limited with its functions of recruitment and
administration
Concerned with performing all levels of
manpower management.