This document discusses the concepts of human resource management. It begins by defining human resources as people who are willing and able to contribute to organizational objectives. It then defines human resource management as being responsible for managing human energy and competencies to achieve organizational goals through employee satisfaction and effective use of employee talents. The document outlines the nature of HRM as having a human focus, being a management function, and having a continuous commitment to adapting to changes. It also discusses the objectives, functions, evolution from personnel management, system, importance, environment, and ethical issues of human resource management.

1. CONCEPT OF HUMAN
RESOURCE
MANAGEMENT
Presented By:
RUPESH
NYAUPANE

2. WHAT IS HUMAN RESOURCE?
Human resources are people who are ready, willing and have ability to
contribute to organizational objective.
Human resource include all people who do the work of a company at various
jobs..
Human resources refers to the individuals within the firm.
It was traditionally called labor, one of three factors of production.
Labor – Human Resource – Human Capital

3. HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is responsible for the
people dimension of an organization.
It is concerned with the management of human energy and
competencies.
Human Resource Management is based in the efficient
utilization of employees in achieving two main goals:
 to effectively make use of the talents and abilities of
employees to achieve the operational objectives
 to ensure that the individual employee is satisfied with both
the working environment and the compensation and
benefits that he or she receives

4. DEFINITIONS
 Human resource management is a process concerned with
management of human energies and competencies for achieving
organizational objectives through acquisition, development,
utilization and maintenance
 To be competitive, organizations in the 21st
century will need to
invest heavily in their human resources. – Charles R. Greer
 Human Resource Management is the organizational function that
deals with issues related to people such as compensation, hiring,
performance management, organization development, safety,
wellness, benefits, employee motivation, communication,
administration, and training.

5. NATURE OF HRM
Human Focus:
 Focuses on people possessing energy and Competencies.
 Develops and utilizes Human potential
Management Function
 Concerned with Management function of staffing necessary for
functional area like marketing, production and finance
Pervasive Function
 Concerned with all level of Management ( Top, middle and lower)
Continuous Commitment
 Not a one time activity
Dynamic
 Adapts to the changing environment
System
 System consisting of Acquisition, Development, Utilization and
Maintenance functions
Mutuality Oriented: Mutuality between employers and employees

6. OBJECTIVE OF HRM
Goal Achievement
 Personal goals, HRM goals, Organizational goals and societal
goals
Goal Harmonization: Individual goals with Organizational goals
Productivity Improvement
Structure Maintenance
Efficiency Improvement
Change Management
Quality of Work life

7. FUNCTION OF HRM
Function help organization to achieve objective of HRM
The major functions or components of HRM are
 Acquisition Function: It ensures right number of employees at
the right place at the right time.
 Activities: HR Planning, Job Analysis, Recruitment,
Selection, Socialization
 Development Function: It ensures the employee have proper
competencies to handle jobs
 Activities: Analyzing development needs, Employee
training, Management development, Career development

8. CONDT.
Utilization Function: It ensures willingness of
employees for increasing productivity
Activities: Motivation, Performance appraisal,
Compensation management
Maintenance Function: It is concerned with retention of
competent employees in the organization. Activities in
HRM concerned with maintaining employees
commitment and loyalty to the organization
Consists of Employee discipline, Labor relations,
Employee welfare.

9. HRM EVOLVED FROM PERSONNEL MGMT.
Dimension Personnel Management HRM
Focus People as an input in the
production process
People as strategic resource in
the organization
Scope Concern of personnel
department
Concern of all levels of
managers
Function Routine Strategic
Means Emphasis on rules,
regulations, procedures,
practices
`Emphasis on human energy
and competencies
Ends Employee satisfaction Achieving organizational goals
through employee satisfaction
Interest Organization interest is
uppermost
Harmony in interest of
organization and individual
Outcome Satisfied personnel
Increased production
Committed human resources
Increased productivity
HRM is not Personnel Management. Major differences are:
Source: Dynamics of Human Resource Management , Dr. Govind Ram Agrawal, 2008

10. HRM SYSTEM
HRM operates as a system consisting of subsystems
which are integrated to each other to achieve a common
goal.
HRM system consists of input process, output and
feedback and operates within internal and external
environment.

11. INPUTS
Inputs are the components that should be taken into
consideration. They are:
Organizational Plan: Basis for Human Resource
Planning, Organization goal help determine HR
requirement.
HR Plan: HR Plan ensures the organization have right
people and its number in right time.
HR Inventory: Stock of Human Resource that
organization have.
Job Analysis: Determining the tasks that make up a job
and skills, abilities required to accomplish the job
Labor Market: Source of External supply of HR

12. PROCESS
1. Acquisition
2. Development
3. Utilization
4. Maintenance

13. OUTPUT
Broadly two types of Outputs
Organization related Outputs
Goal Achievement, Quality of work life, Productivity,
Profits, Readiness for change
Employee related Outputs
Commitment, Competence, Congruence

14. FEEDBACK AND ENVIRONMENT
Feedback: Based on output effectiveness, provides
information to redesign HR inputs and processing and
also helps to take corrective actions.
Environment: Environment can be of two types
Internal Environment: They can be organizational
goals, policies, structure, reward system, organization
culture
External Environment: They are PEST
Political, Economical, Socio cultural and
Technological

15. WHY HRM IS IMPORTANT TO ALL
MANAGERS
Hire the wrong person for the job
Experience high turnover
Have your people not doing theirs best
Have your company taken to court because of discriminatory
action
Have your company cited under federal occupational safety
laws for unsafe practices
Have some employees think their salaries are unfair and
inequitable compared to other organization
Allow a lack of training to undermine your department’s
effectiveness
Commit any unfair labor practices
Source: Dessler, 2006

16. IMPORTANCE OF HR
Getting Results
Mistake Avoidance
Environmental Adaptation
Improved QWL
Commitment
System Maintenance

17. ENVIRONMENT OF HRM IN NEPAL
HRM system is open to environmental factors
which influence HRM decisions and activities.
They are rapidly changing and they influence
the ability of organization to achieve goal.
Before formulating HRM goals and strategy,
managers should scan the environmental factors
which are complex and critical.

18. EXTERNAL ENVIRONMENTAL
FACTORS IN NEPAL
Political and Legal : They are the country’s law and
political condition. Managers should consider following
factors
Political System
Political intervention and Politics-Business Interlink
Labor Laws affecting the interests of employees,
Business laws
Policies regarding equal employment opportunities,
quotas in employment for women, disadvantaged and
indigenous people

19. ECONOMIC FACTORS
Economic factors that affects HRM are
Globalization: Tendency of firms to extend theirs
sales, ownership and manufacturing to new markets
abroad. Globalization means more competition which
means lower cost. Thus, we should make employees
more productive.
Demographics: Concerned with population and
distribution. They affect the size, composition and
location of work force.
Economic Condition: Level of income, the stage of
business cycle, level of inflation, fiscal policy of
government.

20. SOCIAL CULTURAL FACTORS
Social Forces
Social Norms: They affect attitudes and expectation
towards organization.
Lifestyle: Pattern of living reflected in activities,
interests and opinions.
Change in life style have resulted in shorter work
weeks, flexible working hours, paid holidays
Cultural Forces: It is knowledge about customs,
traditions, vales, religion, language and work of art and
architecture.
It has been handed over by generation to generation

21. TECHNOLOGICAL FORCES
It consists of skills, methods, systems and
equipment.
The scale and pace of technological
advancement determine all the four aspect of
HRM
It determines the job requirements concerning
the elimination of old job, creating the new jobs
and increasing the professionalism in existing
job.

22. INTERNATIONAL PERSPECTIVE OF
HRM
Due to Globalization HR managers have found challenges in
acquiring, developing, motivating and maintaining human
resources.
It is difficult because human resources come form different
backgrounds
Challenges in managing HR internationally are
Diverse Workforce: Consists of home country and host country
and third country employees
Cultural Diversity
Changing Environment
New HRM Skills: International HRM managers needs new
skills to handle conflicts and industrial relations
Social Responsibility: Should be socially responsible in host
country

23. ETHICAL ISSUES IN HRM
Obeying the law is mandatory, but acting ethically goes
beyond mere compliance with the law.
It is personal belief regarding right and wrong or good
and bad.
HR ethics refers to the standards of behavior that guide
HR managers to conduct work.
They are shaped by ethical standards of HR managers,
action of peers and top Management, Organizational
culture, organizational environment and societal forces

24. ETHICAL ISSUES
Social Responsibility: Do what is good to society
Employee treatment: Transparency should be
maintained in HR matters, treat all the employees fairly
 Employee Behavior: Should treat organization
ethically by avoiding conflict, dishonesty and secrecy
leakage
Stakeholder treatment : Stakeholders can be customers,
competitors, suppliers, labor unions. Organization and
employees should treat them ethically.
Ethics Training
Two way communication: HRM should facilitate two
way communication as it helps employees express their
feeling about ethical matters

25. STRATEGIC HUMAN RESOURCE
MANAGEMENT
Strategic Human Resource Management
HR strategies refers to the specific human resource
course of action the company pursues to achieve its aim
Formulating and executing HR systems—HR policies
and activities—that produce the employee competencies
and behaviors the company needs to achieve its strategic
aims.

26. THANK YOU