This document provides an overview of human resource management (HRM), including its definition, functions, scope, objectives, and changing trends. Key points include: HRM aims to optimize human resources/employees to achieve organizational and individual goals. It involves planning, organizing, and developing employees while aligning HR policies with business strategies. The main functions of HRM are planning, staffing, developing, maintaining, and evaluating human resources. HRM also manages relationships, change, and the overall HR system. The scope of HRM ranges from entry-level HR specialist roles to mid-level HR manager roles to executive-level HR head roles. HRM must address changing trends like increased globalization, diversity

1. HUMAN RESOURCE
MANAGEMENT
Semester VI
Subject code: SET6B

2. UNIT 1 - Syllabus
Introduction to HRM
• Definition and Scope of HRM
• Functions of HRM
• Role of HRM in the organisation
• Changing trends and Challenges in HRM

3. MEANING
• HRM is a an aspect and process which aims to
optimize the human resources i.e. the employees
of the organization to achieve goals and
individual goals
• Emphasis on – people are the asset to the
business
• Aim – organizational success
• Employee’s aim – apt compensation for the
service rendered and ensure career growth,
satisfaction

4. • Human resource includes all the experience,
skills, knowledge, judgment and creativity
belonging to the organisation along with the
means of organising, structuring and rewarding
these capabilities.
• Human resource management involves all
management decisions and practices that directly
affect or influence the people or the ‘human
resource’ who works for the organisation and this
resource in particular needs to be nurtured.

5. DEFINITION
• Edwin Flippo defines HRM as- “planning, organizing,
directing, controlling of procurement, development,
compensation, integration, maintenance and
separation of human resources to the end that
individual, organizational and social objectives are
accomplished”.
• Ivancevich and Glueck – “Human resource
management is the function performed in
organizations’ that facilitate the most effective use of
people (employees) to achieve organizational and
individual goals”.

6. • The National Institute of Personal Management (NIPM)
of India defined human resources – personal
management as
• “that part of management which is concerned with
people at work and with their relationship within an
enterprise. Its aim is to bring together and develop into
an effective organization of the men and women who
make up enterprise and having regard for the well –
being of the individuals and of working groups, to
enable them to make their best contribution to its
success”.

7. Nature of HRM
• People related functions – hiring, training, performance
review etc
• Building of human capital – skills, capabilities, knowledge
etc.
• Alignment of HR policies and practices with organization's
strategies
• Formulate business strategies
• Administrative to strategic role of HRM
• Focus – people make difference
• Rationale – “machines wont replace us, they will force us to
evolve

8. • Universal
• Dynamic
• Comprehensive
• Integrating mechanism
• Strategic function
• Development oriented

9. Personnel management
• PM – labour as a tool whose behaviour could
be manipulated for organization’s benefit;
limited scope
• HRM – view people as asset ad promote
mutuality – mutual goals, mutual respect,
mutual rewards and mutual responsibilities

10. OBJECTIVES OF HRM
OBJECTIVES
OF
HRM
SOCIETAL – to be ethically and socially
responsible to the needs of the society
and minimize negative impact of such
demands upon the organization
ORGANIZATIONAL – to recognize the
role of HRM in brining about
organizational effectiveness
FUNCTIONAL – to maintain the
departments contribution at a level
appropriate to the organization's needs
PERSONAL – to assist employees in
achieving their personal goals and
enhance their contribution to
organizations goals

11. HR OBJECTIVES
• Primary objective is to ensure availability of a competent and
willing workforce to an organization
1. Facilitate organizational goal setting
2. Making competent and motivated employees available for
the organization at all times
3. Align HR policies and practices with organizations strategies
4. Change agent
5. Build a culture-embedded organization
6. Ensure good work climate for the employees – desirable,
rewarding and fulfilling
7. Develop leadership In employees and develop the
organization as a preferred place to work
8. Make the organization contribute to sustainable
development

12. SCOPE OF HRM
The National Institute of personnel Management, Calcutta
has specified the scope of HRM as follows:
• 1. The Labour or Personnel Aspect: This is concerned with
manpower planning, recruitment, selection, placement,
transfer, promotion, training and development, lay-off and
retrenchment, remuneration, incentives, productivity, etc.
• 2. Welfare Aspect: It deals with working conditions, and
amenities such as canteen, crèches, rest and lunch rooms,
housing, transport, medical assistance, education, health
and safety, recreation facilities, etc.
• 3. Industrial Relations Aspects: This covers union-
management relations, joint consultation, collective
bargaining, grievance and disciplinary actions, settlement
of disputes, etc.

13. HR position in organization falls under HR
specialist, HR manager and HR head.
Scope of HRM
HR Specialist
HR Manager HR Head
HR shared
services expert
HR Business
partner

14. ● HR Specialist: entry level for HRM, roles such as
interviewer, compensation analyst, benefits, co-ordinator,
job analyst and trainer.
● HR Manager: administers and co-ordinates programs. Top
ranking personnel. Head functional personnel at a
corporate level and formulate policies
● HR Head: Top level executive, usually the vice president,
linking corporate policy to HR strategy.

15. ● HR business partner: they engage in discussions with top executives on
how the organization can evolve or change to realise a strategy. They
garner support to realise goals. They help to:
○ Evolve an organizational culture to convert strategy into action
○ Learn to diagnose organizational problems
○ Identify and prioritize the initiatives and ensure implementation.
● HR Shared services expert: is a process expert and is able to leverage
operational knowledge to optimise HR functioning. Required services are
delivered electronically to any location. A help desk system.

16. FUNCTIONS OF HRM
● Henry Mintzberg identified 10 functions that managers play
in an organization.
○ Monitor, disseminator, spokesperson, figure head, leader,
liaison, entrepreneur, disturbance handler, resource
allocator, negotiator.
INFORMATIONAL
ROLE
• Monitor
• Disseminator
• Spokesperson
INTERPERSONAL
ROLE
• Figurehead
• Leader
• Liaison
DECISIONAL
ROLE
• Entrepreneur
• Disturbance
handler
• Resource
allocator
• negotiator

17. Functions of HR:
○ Planning – future employee forecast in light of
mission, identify strength and weakness, culture,
leadership etc.
○ Staffing – recruit people with appropriate skills, job
analysis, interviewing (psychologist) etc.
○ Developing – analyse specific and general learning
requirements, identify key skills and competencies
○ Monitoring – reward system design and
administration

18. ○ Maintaining – welfare of employees, safety,
workplace environment etc.
○ Managing relationships – among the employees,
grievance redressal, unions, contracts and
negotiations
○ Managing change – communicating vision, setting
expectations for performance , develop capability to
recognize the people and reallocate resources
○ Evaluating – designing the process and procedures to
measure, evaluate and communicate about the
entire HR system to the organization

19. PLANNING
ACQUISITION
UTILIZATION
MAINTENANCE
DEVLOPMENT
EXIT

20. Human resource functions
• HR planning
• Human resource acquisition – recruitment, selection,
induction
• • Human resource utilisation – direction, leadership,
placement, performance planning, performance
appraisal.
• Human resource Maintenance/Sustenance –
compensation, welfare, benefits.
• Human resource Exiting – Retrenchment, dismissal,
retirement.
• Human resource development – organization and
employees

21. New age functions
• Career planning
• Strategic HRM
• Vision building
• Leadership
• Function evaluation
• Communication – open feedback channels
• Data analytics
• Talent management
• Employee retention

22. Changing trends in HRM
• Strategic HRM
• Job enrichment and job enlargement
• Centralization Vs. Decentralization
• Human capital management
• Achievement orientation
• Innovation and creativity
• Management of change

23. Changes in HRM
Changes in HRM
Economic and
business
environment
Socio–
cultural
environment
Overall
discipline of
HRM
Political –legal
Technological
changes
Psychological
(in terms of
profession)
Demographic
changes

24. • Economic and business environment
1. Globalization
2. Venturing into new business
3. Increasing complexities of work
4. Higher competition
5. Customer orientation
6. Specialization and niche creation Vs. profit
making
7. Organizational restructuring – merger,
downsizing

25. • Socio-cultural
1. Diversity
2. Multiculturalism
3. Work Ethics
• Psycho-social
1. Openness to experience
2. Flexibility and adaptability
3. Cultural consciousness and sensitivity
4. Paternity leave

26. • Psychological and work aptitude
1. Focus on career development
2. Internal motivation of work vs. external motivation
3. Self-actualization needs
4. Autonomy
5. Merit over hierarchy
6. Focus on diversifying and widening the skill set
7. Work-life balance
8. Reward expectations changes – leisure, gift
cards/memberships etc

27. • Demographic changes
1. Younger population
2. Increase in women population
3. Employees entering the work from varied
disciplines
4. Mixed population

28. Technological
1. Automation
2. Artificial intelligence
3. Data analytics
4. Performance management system is more
vibrant
5. Digital communication
6. Remote working

29. • Political – legal
1. Corporate laws
2. Conducive business environment
3. Regional balance
4. Corporate social responsibility
5. Diplomacy

30. Challenges in HRM
• Managing workforce diversity
• Empowerment of employees
• Employee motivation and relationship management
• Leadership
• Quality of work life - A sensible integration of job
career and family life and leisure time.
• Training needs
• Outsourcing
• Retention
• Difficulty in integrating HR policies with business
strategy.

31. ● Inability of HR to think strategically in a business perspective
● Lack appreciation for value of HR
● Line managers think they’re HR but focus more on technical issues
● Problem quantifying HR programs, HR functions can be abstract
● Human assets are not owned by organizations
● Non-availability of HR staffs, failure to integrate
● Failure to understand sustainable needs, inadequate assessments
● Disconnect between HR and employees.
● Inadequate allotment of resources for optimum functioning