This document discusses the principles of human resource management systems. It defines an HR system as a unified whole composed of interrelated parts that work together to achieve common goals. The key components of an HR system are input (e.g. employee skills, market conditions), processes (e.g. acquisition, development, motivation), and output (e.g. goal achievement). An effective HR system ensures it acquires the right employees, develops their competencies, motivates them to perform well, and retains top talent so the organization can achieve its goals. The document outlines the functions, responsibilities and environmental factors that influence HR systems.

1. Principles of Management
Boston International CollegeKAMAL SUBEDI
BBA-1st semester A
Human Resources
Management
System
1

2. 2
A system is a unified whole composed of interrelated and
interacting part to achieve common goals. Human resource
management is an open system. It consists of input,
processing. Output and feedback component. It has both
internal and external environment.
Or
Human resource management refers to the policies, practices,
and systems that influence employees’ behavior, attitudes, and
performance.
Human Resource Management System

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(1) People is the key factor of production.
(2) Productivity is the key to measure a nation’s economic
growth potential, and labor quality is the key to
improving productivity.
(3) Competition today is the competition for talents.
(4) Since man is the most uncontrollable and unpredictable
variable of all production variables, organizational
success depends on the management of people.
The importance of HRM-System

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a. Analysis and design of work
b. HR Planning
c. Recruiting
d. Training and development
e. Compensation
f. Performance management
g. Employee relations
Function of HRM-System

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• Employment and recruiting
• Training and development
• Compensation
• Benefits
• Employee Services
• Employee and community relations
• Personnel records
• Health and safety
• Strategic planning
Responsibilities of HRM-System

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HRM-System
Fig: HRM-System
Organizational
interest groups
• Management
• Government
• Shareholder
• Trade unions
• Community
Environmental Factor
• Laws and policies
• Workforce features
• Technology
• Societal values
• Economic factors
HRM-Process
• Acquisition
• Development
• Maintenance
• Motivation
• Goal Achievement
• Commitment
• Competencies
• Congruence
• Cost effectiveness
HRM-Outcomes

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• Input
• Process
• Output
Elements of HR-System

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Elements of HR-System
Input
• Human qualities
• Knowledge, skill and attitudes
• Experiences
• Physical and mental abilities
• Organization’s business strategy
• Labor market and technology
• Labor union and legislation

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• Human energy and competency:
• Energy is represented by physical strength. Competencies are
represented by skills, knowledge, experience, potential for
growth etc.
• Organizational Plan:
• The human resource management system is guided by
organizational plan. These input components are very essential
to support human resource management system. Organizational
plan consists of overall organizational goals and targets.
• Human Resource Plan:
• Human resource plan is also the important input component.
It is the process of making plan of future human resources. It is
also the process of marketing future, human resource demand
and supply.

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•Human Resource (management) Inventory:
• Management inventory represent inventory of current human
resources available in the organization. Management inventory
is an important component of making human resource plan.
•Job Analysis:
• Job analysis specifies job requirement, qualification and skills
for various jobs. It mainly consists of job description and job
specification.
•Labor Market:
• Labor market serves as the major source of supply for human
resource. It may be schools, colleges, universities, training
institutions, manpower agents etc.

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Elements of HR-System
Process
• Acquisition
• Development
• Motivation
• Maintenance
Output
• Goal Achievement

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• Acquisition:
•Acquisition ensures right number of people at right place and at
the right time in the organization. Acquisition mainly consists of
recruitment (identifying potential candidates), selection (selecting
the best candidates and rejecting the wrong one), socialization
(adaptation of new employees in the organization.)
• Development:
•Development ensures competencies of employees to handle job.
It is also the process of training and developing the employees. It
mainly consists of training, management development, career
development and interpersonal development.
Process

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• Motivation:
•Motivation ensures willingness of employees for doing job
effectively. The employees should be motivated toward their
jobs in order to increase productivity and efficiency.
Motivation consists of need, satisfaction, job design,
performance appraisal and reward management.
• Maintenance:
•Maintenance ensures retention of employees in the
organization. Highly qualified manpower should be retained
(hold) in the organization. Maintenance involves compensation
management, employees’ discipline, grievances (hopeless)
handling and employees’ welfare.
Process

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• Goal Achievement:
•This refers to overall organizational goal achievement. The
goal of societal well-being is also one of the goals of
organization.
Output

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