Chapter I
Introduction to HRM
1.1 Introduction
1.2 Importance of HRM
1.3 HRM Process
1.4 Need for HR Policies
1.5 Functional Areas of HRM
1.6 Role of HR Manger
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Recent Development:-
• More emphasis is laid on the positive attitude of the candidate.
• Shift from IQ to EQ.
• Significance is shifted from skilled Employees to knowledgeable
employees.
• Careers in HRM.
• Environment of HRM.
• Balance score card.
• Human Resource Information system.
• Total Quality HRM
• HR Accounting, Audit and Research
1. Appley, Lawrence, Management in Action: The Art of Getting Things Done Through People, American
Management Association, New York, 1956, p. 19
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The Industrial Relation Practices in Selected Industrial Units of Ahmedabad and Anand Districts
2 Pigors, Paul and Myres, Charles A, Personnel Administration; A Point of view and Method, Mcgraw
Hills Books Company, Kagakusha Limited, Tokyo, 1961, Second Edition, 1961, Page No. 1
3
Flippo Edwin B, Personnel Management, Mc Graw Hill, New Delhi, 1980, p. 5
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4
Dunn, J.D and Stephens, EC Management of People, Mc Graw Hill Book Company, New York,
1972, p. 10
5
Spates, Thomas G. An Objective Scrutiny of Personnel Administration, American Management
Association, New York, 1944, p. 9
French, Wendell, The Personnel Management Process: Human Resources Administration,
Houghton Mifflin Company, New York, 1974, p. 3
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Human Resource
Development
Rewards
(Source: www.mhhe.com/aswathappa-hrm)
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Stakeholder interests
Shareholders
Management
Employee Groups
Government
Community & Unions Human Human Resource Long-Term
Resource Outcomes Consequences
Management Commitment Individual well-
Policy Choices Competence being
Employee Congruence Organizational
Situational Factors influence Cost-Effectiveness Effectiveness
Work Force Human Resource Societal well-
Characteristics Flow being
Business Strategy and
conditions
Management
Philosophy
Labour Market
Unions
(C) The Guest model was developed by David Guest in 1997, which
emphasizes the logical sequence of six components like HR strategy, HR
practices, HR outcomes, Behavioral outcomes, Performance results and
financial consequences as shown as below chart:
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Socio-economic
Technical
Political-legal
Competitive
Culture
Structure
Politics/leadership
Task-technology
Business outputs
Role
Objectives Definition
Product market Organization
Strategy and HR outputs
tactics
HR flows
Work systems
Reward systems
Employee relations
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In modern era the following HRM Model is popular as shown in chart 1.5
Chart 1.5: Common Current HRM Model (Corporate)
BOARD
Features:
- Silos within Silos External Services:
- Bureaucratically Consultant Suppliers etc.
Managed Chief Executive
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After considering all these models we can predict for future model as
shown in chart 1.6
BOARD
Chief Executive
External resources:
Outsourcing: Contracting in
External consultants
(Source: WWW.hrsgb.org.za)
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Owner /
Manager
Personnel
Assistant
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Chairman
And
Managing Director
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Nature of
HRM
Employee
Prospects Hiring
of
HRM
Human Resource
Management
Employee and
Industrial Executive
Relations Remuneration
Employee Employee
Maintenance Motivation
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8
T.V. Rao, Readings in Human Resource Development. Oxford and IBH Publishing Co. Pvt. Ltd,
New Delhi, 1991, p. 22
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9
Calhoon, R, Personnen Management and Supervision, Appleton Century Crafts, New York, 1967, Page
no. 27
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Goals HR
Activities
Organization Environment
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Allen, L.A, Management and Organization, Mc Graw Hill Book Company, New York, 1958, p. 28
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(B) Organizing:
After a course of action has been determined an organization should
be established to carry it out. According to J.L. Massie “An organization is a
structure and process by which a co-operative group of human beings
allocates its tasks among its members, identifies relationships and integrates
its activities towards common objectives”.11 This is done by designing the
structure of relationships among jobs, personnel and physical factors. An
organization is the wedding of authority and responsibility because, in its
essentials, it consists of the assignment of specific functions to designate to
have them carried out, and their accountability to management for the results
obtained. It seeks to achieve the maximum return with minimum effort by
decentralization whereby the power of decisions is brought down as near as
possible to the individual concerned. How far this can be done will depend
upon the top management’s philosophy and appreciation of the benefits
delegation and decentralization. In the words of Drucker “The right
organizational structure is the necessary foundation, without it the best
performance in all other areas of management will be inefficient and
frustrated”.12
(C) Directing:
Directing includes guiding, overseeing, inspiring and influencing the
subordinates to work in a way that is beneficial to the enterprise as well as
the community. Directing deals not only with the issuing of orders but also
with the acceptance and execution of these orders, by guiding and inspiring
the organization members. The directing function is also concerned with
leadership, communication, motivation and supervision so that the
11
Massie J.L, Essentials of Management, 1964, p.45
12
Drucker P. The Practice of Management, Harper and Brothers, New York, 1954, p. 13
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employees perform their activities in the most efficient manner possible. The
effective directing is an appreciation of human nature.
Directing is involved with getting persons together and asking them to
work willingly and effectively for the achievement of designated goals.
(D) Controlling:
Controlling is the act of checking, regulating and verifying whether
everything occurs in conformity with the plan that has been adopted, the
instructions issued and principles established.13 It is greatly concerned with
actions and remedial actions “It is not just store- keeping. It not just plotting
the course and getting location reports, but rather it is steering the ship.14 It
is through control that action and operation are adjusted to pre determined
standards, and its basis is information in the hands of the managers.15 “By
check, analysis and review the personnel department assists in realizing the
personnel objectives. Auditing training programmes, analyzing Labour
turnover records, directing morale surveys, conducting separation
interviews, interviewing new employees at stipulated intervals, comparing
various features of the programme with other organization programmes in
the area, industry and nation. These are some of the means for controlling
the management of personnel.
Operative Functions
The operative functions of personnel management are concerned with
the activities specifically dealing with procuring, developing, compensating,
integrating and maintaining an efficient work force. These functions are also
known as service functions.
13
Fayol, Henry, General and Industrial Management, Pitmn Publishing Corporation, New York, 1949, pp.
107-8
14
Fish, Holden and Smith, Top Management Score Organization and Control, P. 8
15
Sherwin, Douglass, “The Meaning of Control”, in Koontz, Harold and O’Donnell Cyril (Eds), Reading in
Management, 1959, p. 423
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(Source: http://www.rphrm.curtin.edu.au/2007/issuse2/india.html)
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The Counsellor:
Employees who are dissatisfied with the present job approach the
personnel manager for counselling. In addition, employees facing various
problems like material, health, children education/marriage, mental physical
and career also approach the personnel managers. The Personnel manager
counsels and consults the employees and offer suggestion to solve /
overcome the problem of the employees.
The Mediator:
As a mediator, the personnel manger plays the role of a peace-maker.
He settles the disputes between employees and the management. He acts as a
liaison and communication link between both of them.
16
Subba Rao P, Personnel and Human Resource Management, Himalaya Publishing House, Mumbai,
2000, pp. 26-27
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The Spokesman:
He is a frequent spokesman for or representative of the company.
The Problem-Solver:
He acts as a problem solver with respect to the issue that involves
human resource management and overall long range organizational
planning.
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(b) Manpower (b) Managing (b) Salary and wage (b) Settlement of
planning- Services Administration, Disputes.
Recruitment, Canteens, grain Incentives
Selection etc. Shops, transport
co-operative
cereals etc.
(c) Training and (c) Group dynamics- (c) Maintenance (c) Handling
Development of Group of records. disciplinary
Line men. Counseling, actions
Motivation,
Leadership,
Communication
etc.
(e) Joint
Consultation.
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