This document provides an overview of the course "Management of Human Capital" including the course content which covers topics like human resource management, human resource planning, training, compensation, and human resource development. It then focuses on the first unit which discusses the meaning and definitions of human resource and human resource management. It explains the importance, objectives, functions, and processes of human resource management. It also describes the different approaches to HRM, organizational structure of an HR department, and the roles and responsibilities of a human resource manager.

1. MANAGEMENT OF HUMAN CAPITAL
UM19BC209
B.Com III Semester
Shwetha.S
Department of Commerce

2. MANAGEMENT OF HUMAN CAPITAL
COURSE CONTENT
 Unit-1: Human Resource Management
 Unit-2: Human Resource Planning
 Unit-3: Training And Induction
 Unit-4:Compensation And Rewards
 Unit-5: Human Resource Development
2

3. MANAGEMENT OF HUMAN CAPITAL
UNIT-1
HUMAN RESOURCE MANAGEMENT
Unit 1 Human Resource Management 3

4. MANAGEMENT OF HUMAN CAPITAL
INTRODUCTION TO HUMAN RESOURCE
 The personnel involved in different activities of
an organization are the human resources of
that organization.
 Such type of personnel referred as human
resources
Unit 1 Human Resource Management
4

5. MANAGEMENT OF HUMAN CAPITAL
MEANING OF HUMAN RESOURCE
• People become human resource when they
involved in any organization with physical
strength, energy and competencies.
Competencies consists of knowledge, skill,
attitudes and potential for growth.
Unit 1 Human Resource Management
5

6. MANAGEMENT OF HUMAN CAPITAL
DEFINITION OF HUMAN RESOURCE
According to Leon C.Megginson,
“ the total knowledge, skills ,creative abilities,
talents and aptitudes of an organisation’s
workforce, as well as the value attitudes and
beliefs of the individuals involved”.
Unit 1 Human Resource Management
6

7. MANAGEMENT OF HUMAN CAPITAL
INTRODUCTION TO HRM
Human: refers to the skilled workforce in an
organization.
Resource: refers to limited availability or scarce.
Management: refers how to optimize and
make best use of such limited or scarce resource
so as to meet the organization goals and
objectives.
Unit 1 Human Resource Management
7

8. MANAGEMENT OF HUMAN CAPITAL
MEANING OF HRM
• HRM is the planning, organising, directing
& controlling of the procurement,
development, compensation integration,
maintenance and separation of human
resources to the end that individual,
organizational and social objectives are
accomplished.
Unit 1 Human Resource Management
8

9. MANAGEMENT OF HUMAN CAPITAL
DEFINITION OF HRM
According to Gary Dessler,
 HRM refers to the policies and practices
involved in carrying out the people or human
resource aspects of a management position,
including recruiting, screening, training,
rewarding and appraising.
Unit 1 Human Resource Management
9

10. MANAGEMENT OF HUMAN CAPITAL
DEFINITION OF HRM
According to Edwin Flippo,
 Human Resource Management is “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 achieved.”
Unit 1 Human Resource Management
10

11. MANAGEMENT OF HUMAN CAPITAL
Human Resource Management is therefore focused on a number of
major areas, including:
• Recruiting and staffing
• Compensation and benefits
• Training and learning
• Labor and employee relations
• Organization development
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Unit 1 Human Resource Management 11

12. MANAGEMENT OF HUMAN CAPITAL
IMPORTANCE OF HRM
• To maintain quality of work life
• To increase productivity and profit
• To produce employees who are easily
adaptable to change
• To match demand and supply of human
resource
• To retain employees and motivate them to
accomplish company’s goal
Unit 1 Human Resource Management
12

13. MANAGEMENT OF HUMAN CAPITAL
IMPORTANCE OF HRM
• To recognize merit and contribution of
employee
• To create a feeling of belongingness and team
spirit in the employee
• To sustain business in the market
• To develop corporate image
• To resolve conflicts
Unit 1 Human Resource Management
13

14. MANAGEMENT OF HUMAN CAPITAL
UM19BC209
B.Com III Semester
Shwetha.S
Department of Commerce

15. MANAGEMENT OF HUMAN CAPITAL
OBJECTIVES OF HRM
Objectives
of HRM
Societal
Objectives
Personal
Objectives
Organisational
Objectives
Functional
Objectives
Unit 1 Human Resource Management 14

16. MANAGEMENT OF HUMAN CAPITAL
OBJECTIVES OF HRM
• Societal Objectives
HRM must see that the legal, ethical, and social environmental
issues are properly attended.
• Organisational Objectives
HRM is a means to achieve efficiency and effectiveness. It
serves other functional areas.
• Functional Objectives
HRM performs so many functions for other departments.
• Personal Objectives
To assist employees in achieving their personal goals, as these
goals enhance the individual contribution to the organisation. Unit 1 Human Resource Management 15

17. MANAGEMENT OF HUMAN CAPITAL
OBJECTIVES OF HRM
• Facilitate organisational goal setting.
• Making competent and motivated employees available
for organisation all the time.
• Align HR policies and practices with the organisation
strategies play the role of a change agent in order to
increase change in the organisation.
• Build an ethical and culture embedded organisation
• Make employees feel that there stay in the organisation
is desirable rewarding and fulfilling.
Unit 1 Human Resource Management 16

18. MANAGEMENT OF HUMAN CAPITAL
FUNCTIONS OF HRM
Functions
of HRM
Managerial Functions
 Planning
 Organising
 Directing
 Controlling
Operative Functions
 Employment
 HR Development
 Compensation
 Human Relations
 Industrial Relations
 Recent Trends in HRM
Unit 1 Human Resource Management
17

19. MANAGEMENT OF HUMAN CAPITAL
MANAGERIAL FUNCTIONS OF HRM
 Planning-HR manager is concerned, he/she is required
to determine in advance an HR programme that will
contribute towards the achievement of goals specified
for the organisation.
 Organising-Organising involves the establishment of an
organisation structure.
Unit 1 Human Resource Management
18

20. MANAGEMENT OF HUMAN CAPITAL
MANAGERIAL FUNCTIONS OF HRM
 Directing-The management is required to lead, guide,
motivate, supervise, communicate and inspire them
towards improved performance.
 Controlling-control consists in verifying whether
everything occurs in conformity with the plan adopted,
the instructions issued and the principles laid down. In
this way, controlling is a measuring and corrective
device.
Unit 1 Human Resource Management
19

21. MANAGEMENT OF HUMAN CAPITAL
OPERATIVE FUNCTIONS OF HRM
Unit 1 Human Resource Management
20
• Job analysis, HR Planning, Recruitment,
Selection,Placement, induction and internal
mobility
Employment
• Performance Appraisal, Training, Management
Development, Transfer, Promotion, Demotion,
Retention and Retrenchment Management
HR Development
• Job Evaluation, Wages an salary Administration,
Incentives, Bonus, Fringe benefits, Social
Security Measures.
Compensation
• Leadership skills, Redressing employee
grievances, reducing fatigue, monotony,
boredom , industrial accidents.
Human Relations
• Indian Labour market, Trade Unionism,
Collective Bargaining, Industrial conflicts,
Quality Circles.
Industrial Relations
• Quality of Work Life, Total Quality in Human
Resources, HR Accounting, Audit and Research
Recent Trends in
HRM

22. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Unit 1 Human Resource Management
Planning
Recruitment &
Downsizing
Selection
Orientation
Training and
Development
Performance
Appraisal
Compensation
and Benefits
Safety & Health
Competent High
Performing
Workers

23. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step-1 HR Planning- process of forecasting
firm future demand for and supply of right
people in the right number.
Unit 1 Human Resource Management

24. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step-2 Recruitment- process of searching the candidates
for employment and stimulating them to apply for jobs in
the organisation.
Downsizing- strategy reduces the size of a business to
improve its financial performance.
Unit 1 Human Resource Management

25. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step-3 Selection- is the process of picking or choosing the
right candidate, who is most suitable for a vacant job
position in an organisation.
Unit 1 Human Resource Management

26. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step-4 Orientation- refers to a part of the process of
assimilation of a new employee. It is part of a new
worker’s socialization process in a company or any
organization.
Unit 1 Human Resource Management

27. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step-5 Training and Development- Training refers to a
systematic setup where employees are instructed and
taught matters of technical knowledge related to their
jobs.
Development refers to the overall holistic and
educational growth and maturity of people in managerial
positions
Unit 1 Human Resource Management

28. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step-6 Performance Appraisal- Performance Appraisal is
the systematic evaluation of the performance of
employees and to understand the abilities of a person for
further growth and development.
Unit 1 Human Resource Management

29. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step-7 Compensation and Benefits- Compensation and
benefits refers to the compensation/salary and other
monetary and non-monetary benefits passed on by a
firm to its employees.
Unit 1 Human Resource Management

30. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step- 8 Safety and Health- This means making sure
that workers and others are protected from anything that
may cause harm, effectively controlling any risks to injury
or health that could arise in the workplace. Employers
have duties under health and safety law to assess risks in
the workplace.
Unit 1 Human Resource Management

31. MANAGEMENT OF HUMAN CAPITAL
PROCESS OF HRM
Step- 9 Competent and High Performing Workers
Unit 1 Human Resource Management

32. MANAGEMENT OF HUMAN CAPITAL
UM19BC209
B.Com III Semester
Shwetha.S
Department of Commerce

33. MANAGEMENT OF HUMAN CAPITAL
ORGANISATIONAL STRUCTURE OF HR DEPARTMENT
HR
Director
Recruitment
Job
Posting
Applicant
Sourcing
Interview
Arranging
Applicant
Choosing
Compensation &
Benefits
Job Evaluation
Attendance
Checking
Salary Policy
Administration
Insurance
Bonus
Managing
Employee
Relations
Strategy
Planning
Dispute
Resolution
Contract
Negotiation
Advisory
Services
Training &
Development
Training
Program
Leadership
Training
Promotion
Policy
Workforce
Safety
Security
Education
Emergency
Preparedness
Facility
Inspection
Assistant

34. MANAGEMENT OF HUMAN CAPITAL
ORGANISATIONAL STRUCTURE OF HR DEPARTMENT
HR Director
Recruitment
Job
Posting
Identifying Vacancy, Job
Analysis-Description,
Specification, Evaluation
Applicant
Sourcing
Searching right
candidate- Internal
Sources & External
Sources
Interview
Arranging
Screening &
shortlisting
Applicant
Choosing
Identifying
the best
candidate,
Assistant

35. MANAGEMENT OF HUMAN CAPITAL
ORGANISATIONAL STRUCTURE OF HR DEPARTMENT
HR
Director
Compensation
& Benefits
Job Evaluation
Systematic comparison value or
worth of a job- to determine
appropriate pay rate
Attendance Checking
Monitor attendance- employee
attendance reporting-increase
productivity and profit
Salary Policy
Administration
Equitable and systematic, position
description,Position evaluation, salary
structure, salary wage grades
Insurance
Employee benefitsretirement plans, health
life insurance, life insurance, disability
insurance, vacation, employee stock
ownership plans
Bonus Managing
Bonus plans or variable plan
schemes

36. MANAGEMENT OF HUMAN CAPITAL
ORGANISATIONAL STRUCTURE OF HR DEPARTMENT
HR Director
Employee
Relations
Strategy
Planning
Dispute
Resolution
Contract
Negotiation
Advisory
Services

37. MANAGEMENT OF HUMAN CAPITAL
ORGANISATIONAL STRUCTURE OF HR DEPARTMENT
HR Director
Training
Program
Leadership
Training
Promotion
Policy

38. MANAGEMENT OF HUMAN CAPITAL
ORGANISATIONAL STRUCTURE OF HR DEPARTMENT
HR Director
Workforce
Safety
Security
Education
Emergency
Preparedness
Facility
Inspection

39. MANAGEMENT OF HUMAN CAPITAL
UM19BC209
B.Com III Semester
Shwetha.S
Department of Commerce

40. MANAGEMENT OF HUMAN CAPITAL
APPROACHES TO HRM
• Focuses on people management programs and other
aspects that ensure employees add value to the
organization.
Strategic Approach
• Management is nothing but managing people in the
workplace
Management
Approach
• People are human beings with a lot of potentials and
intellectual abilities. It is important to treat people with
respect and dignity.
Human Resource
Approach
• People are a commodity. This approach views people as
economic man
Commodity
Approach
• HR managers must anticipate the challenges or problems
before they arise. Prevention is better than cure.
Proactive Approach
• It occurs when decision-makers respond to problems.
Companies may lose time and money if they take a reactive
approach.
Reactive Approach
• A system is a set of interrelated but separate elements or
parts working together for a common goal.
System Approach

41. MANAGEMENT OF HUMAN CAPITAL
HUMAN RESOURCE MANAGER
Human resource managers plan, direct and coordinate the
administrative functions of an organization.
They oversee recruiting, interviewing and hiring of new staff
as well as training for current staff.
Human resource managers play an important role in strategic
planning and serve as a liaison between administrative staff
and employees.

42. MANAGEMENT OF HUMAN CAPITAL
ROLE OF HUMAN RESOURCE MANAGER
HR
MANAGER
Conscience Role
It Is that of
humanitarian who
reminds the
management of it
morals and obligations
with employees.
Counselor
HR manager councils and
consult the employees
and offer suggestions to
solve or overcome the
problems.
Mediator
Settles the dispute
between employees
and the management
Spokesman
Representative of
the company
Problem Solver
With respect to the issues
that enables HRM and
overall long-range
organisational planning.
Change Agent
Introduces changes
in various existing
programs

43. MANAGEMENT OF HUMAN CAPITAL
ROLE OF HUMAN RESOURCE MANAGER
Role of Personnel
Manager
HR Role
Advisory- Advising
Management on
effective use of HR
Man Power Planning-
Recruitment,
Selection etc.
Training &
Development of line
men
Measurement of
assessment of individual
and group behaviour
Welfare Role
Research in personnel
and organisational
problems
Managing services
canteens, transport
cooperatives etc
Group dynamics-
Group Counselling
Motivation
Clerical Role
Time keeping
Salary and wage
administration,
incentives.
Maintenance of
Records
Fire Fighting Legal
Role
Grievance handling
Settlement of
Disputes
Handling Disciplinary
actions
Collective bargaining

44. MANAGEMENT OF HUMAN CAPITAL
UM19BC209
B.Com III Semester
Shwetha.S
Department of Commerce

45. MANAGEMENT OF HUMAN CAPITAL
HUMAN RESOURCE MANAGER
Human resource manager has two basic functions
• Overseeing the department functions
• Managing the employees
Human resource managers play an important role in strategic
planning and serve as a liaison between administrative staff
and employees.

46. MANAGEMENT OF HUMAN CAPITAL
RESPONSIBILITIES OF HUMAN RESOURCE MANAGER
• Set objectives for the HR team and track progress
• Design and implement company policies that promote a healthy
work environment
• Develop compensation and benefits plans
• Support and suggest improvements to the entire recruitment
process
• Host in-house recruitment events
• Discuss employees’ career development paths with managers
• Monitor HR metrics (e.g. turnover rates and cost-per-hire)
• Review departmental budgets
• Organize learning and development programs
• Ensure HR staff addresses employees’ requests and grievances
in a timely manner
• Maintain HR procedures that comply with labor regulations

47. MANAGEMENT OF HUMAN CAPITAL
DUTIES OF HUMAN RESOURCE MANAGER
 Correlating and planning to make the best use of the
employee talents and skills
 Administer the work of support staff and specialists of their
team
 Building a relationship between employee and organization
management
 Guide in helping their team in recruiting and hiring employee
workforce
 Moderate and act on employee benefit programs
 Avoiding and solving different types of conflicts arising in an
organization
 Consulting with department managers over important
organizational issues

48. MANAGEMENT OF HUMAN CAPITAL
CONTENT OF UNIT 1
• Human Resource- Meaning And Definition.
• Human Resource Management - Meaning And Definition
• Importance Of Human Resource Management
• Objectives Of Human Resource Management
• Functions Of Human Resource Management
• Process Of Human Resource Management
• Approaches To Human Resource Management
• Organizational Structure Of Human Resource Department
• Human Resource Manager: Meaning, Role Of HR Manager
• Duties Of HR Manager
• Responsibilities Of HR Manager.

49. THANK YOU
Shwetha.S
Department of Commerce
Swethas@pes.edu
08026600105