Human resource management involves continuous processes concerned with developing employees at all levels of an organization. It covers people-related functions like recruitment, training, compensation and benefits. The goal is to build human capital, align HR policies with business strategies, and help achieve individual, group and organizational goals. The scope of HRM includes personnel functions from hiring to separation. It also deals with employee welfare like facilities and amenities. Additionally, it covers labor-management relations through activities like collective bargaining and grievance procedures. HRM has evolved from early concepts in ancient India and labor commissions to incorporate functions like industrial relations, apprenticeships, and mandatory job vacancy notifications. It has expanded beyond its personnel management origins to place greater emphasis on

1. Human Resource
Management
Unit I

2. Nature of HRM
1. A continuous process
2. Concerned with employees: Consists of people-related functions
1. Doables: highly routinised
2. Deliverables: Building of Human Capital
3. Covers all levels and Categories of employees
4. Concerned with the development of human resources
5. Competitive Advantage through people
6. Alignment of HR policies and practices with organization's strategies
7. Applies in all types of organizations: Not confined to business
establishment
8. Application of management principles and functions: Secure cooperation
9. Not the sole responsibility of HR specialist
10. Helps in achieving individual, group, organizational and societal goals

3. Scope of HRM

4. Scope of HRM
The National Institute of Personnel Management has defined the scope as
follows:
• Personnel Aspect: concerned with functions ranging from manpower
planning to separation
– Manpower planning, recruitment, selection, placement, transfer, promotion, training
and development, layoff and retrenchment, remuneration, incentives, productivity
• Welfare Aspect: dealing with working conditions and amenities
– Canteens, crèches, rest and lunch rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities
• Industrial Relations Aspect: covers labor- management relations
– Union-management relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes

5. Evolution of HRM

6. Evolution of HRM
• Chanakya (400 BC)
• Royal Commission of Labor: 1929-31
• WW II
• Calcutta University: 1942
– Diploma in Social Welfare
• Industrial Dispute Act ’47
– IR Officers with Legal Background
• Factories Act ’48
– Welfare Officer (Section 49)
• Apprentices Act ‘61
• Employment Exchange (Compulsory Notification of Vacancies) Act ‘59

7. Personnel Management Versus HRM