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Human Resource

 Management has been defined as
control and creation of a technological
and human environment that can
support optimum utilization of resources
and competencies for achieving
organizational goals.
HRM and 3 P’s

 People: It is now an established fact that

the core strength of any organization lie
in its human resources and all other
resources can be replaced except the
human resource.
 Processes: organizational processes
evolve over a period of time and they are
treated as permanent as it is believed
that whatever has worked in the past will
work in the future also.
 But in the fast changing world much emphasis
is laid on flexibility and adaptability. In the past
it was difficult to reengineer the processes but
in IT enabled environment reengineering is
easy .
 Performance: The existence of the organization
primarily depends on its ability to create value
and increase the ROI. The two pillars
supporting performance are people and IT.
Integrating both helps in improving the
performance of the organization at individual
and organizational levels.
What is Human Resource
 Human Resource Management is the process
of efficiently achieving the objectives of the
organization with and through people.

 It involves all management decisions and

practices that directly affect or influence the HR
who work for the organizations.-Beer
 It is the set of organizational activities directed
at attracting, developing rewarding and
maintaining an effective work force.
 It is concerned with the people’s dimension in
management. It is the process consisting of four
functions acquisition, development, motivation
and maintenance of HR. –Stephen Robbins
 It can be defined as a process of procuring,
developing, motivating and maintaining
competent HR in an organization so that goals
can be achieved in an efficient and effective

 HRM is the use of several activities to ensure

that HR are managed effectively for the benefit
of the individual society and the business.-
Randall S. Schuler
 Personnel management is the planning
organizing directing and controlling of the
procurement development compensation
integration and maintenance of people for the
purpose of contributing to organizational
individual and societal goals.- Edwin Flippo
Importance of Human Factor

 Organization is made up of 4 resources

namely ,Men, Material, money &
machinery.Only one out of them is living
& others are non living.
 It is the people who make use of non
human resources.Hence people are the
most significant resources in an
 For any organization, proper
management of human resources is very
important for its growth, survival,
profitability, competitiveness, and
flexibility in adapting to changing
 “Business houses are made or broken
in the long run not by markets or capital,
patents or equipments, but by men.”
L.F Urwick
 Organizations are made and staffed by
people. Without people organizations
can not exist..
 On an average 25% of production cost
and 40% of selling cost constitute the
HR cost in a manufacturing organization.
Thus the business success depends on
how best they bring right kind of people,
develop them and maintain them.
 For any organization acquiring the
services of its employees, developing
their skills and motivating them are
essential to achieve its objectives. Thus
the proper management of human
resources is very crucial for the
organization’s survival, growth,
profitability and flexibility in adapting to
changing environments.
Human Factor

 Human resources are heterogeneous in

the sense that they differ in
personality,emotions,values attitudes
motives etc.Their behavior is
 While other resources depreciate HR
appreciate with time. Better educated,
more skilled, better aware of their
interest and rights are also some
distinguishing features of HR.

 HRM practices can bring an important

practical difference in terms of three key
organizational outcomes productivity,
quality of work life, and profit.
 These features makes it difficult for
managers to use them in efficient and
effective manner.
 Highly complex and competitive
business environment makes attracting
and retaining qualified and competent
employees very difficult and challenging
for the managers.
 The need of the new perspective is to have
right people for right jobs.
 This perspective offers the organization a
competitive edge or core competency to survive
and thrive in the competitive world.
 HRM is an art of managing people at work in
such a manner that they give their best to the
Human Resource
 Four basic function of HRM
 Staffing (getting people)
 Training and development (preparing
 Motivation (stimulating them)
 Maintenance (keeping them)
Human Resource
 HRM can be viewed in one of two ways.
First, HRM is a staff, or support function
for the organization. Second, HRM is a
function of every Managers job.
The Dynamic Environment of
 Many events have shaped the HRM field.
 Work-force Diversity
 Changing Skills Requirements
 Corporate Rightsizing
 Continuous Improvement
 Decentralized work sites
 Employee Involvement
HRM Areas

 Employment-The main thrust of the

employment function is to promote the
activities of the staffing function. It is
important to note that the employment
specialist’s roles is not to make the hiring
decision, but to coordinate the effort with
line management.
HRM Areas

 The Training and Development section

of an organization is often responsible
for helping employees to maximize their
potential. More importantly the training
and development members are often
better known as the organizations
internal change agents.
HRM Areas

 Compensation and Benefits focus on

both the staffing side and the
maintenance portion of HRM. Offering a
competitive wage and benefit package is
a moving target. Determining what
different position on are worth to the
organization is as much a science as an
art. Yet often described as the most
objective area in a subjective field.
HRM Areas

 Employee Relations deals with maintenance

function. Primary function of ensuring open
commuinications permeates the organization.
Employee Relations Specialist ensures helps
employees understand policies and procedures.
 Labor Relations function is different than
Employee relations in that it is concerned with
the negotiation, interpretation, and compliance
with the labor contract. The latest trends in
Labor relations is interest based bargaining and
labor management groups.
 As we move into the different areas of
Human Resource Management we need
to understand that it is based on four
primary functions; staffing, training and
development, motivation, and
maintenance. All areas under HRM can
be aligned with one of this functions.

 Objectives are bench marks against

which actions are evaluated.
 The primary objective of HRM is to
ensure the availability of right people for
right jobs so as the organizational
objectives are achieved.
Sub Objectives
 To help the org. to attain its goals
effectively and efficiently by providing
competent and motivated employees.
Davis have classified the objectives of
HRM into 4 categories as
union objectives
 To be ethically & socially responsible to
the needs and challenges of the society
while minimizing the negative impact of
such demands upon the organization.
It includes:
 To provide more employment opportunities
 To provide maximum productivity
 To provide maximum material and mental
satisfaction to workforce.
 To control the wastage of effort
 To help maintain ethical policies and behavior
inside and outside organization.
 To establish and maintain cordial relations
between employees & mgt.
 To reconcile individual and group goals with
org. goals.
Organizational objectives
 To recognize the role of HRM in bringing about
organizational effectiveness.
It includes:
 To help the organization to reach its goals.
 To efficiently utilize the skills and abilities of the workforce
 To communicate HRM policies to every one in the
 To develop and maintain quality of work life.
 To provide well trained and well motivated employees to
the organization.
Functional objectives

To maintain the department’s contribution

at a level appropriate to the
organization’s needs.
Personal Objectives
To assist the employees in achieving their personal goals,so
that they enhance the individual’s contribution to the
It includes:
 To provide adequate compensation to employees.
 To provide job security
 To provide facilities for training and development
 To increase employees job satisfaction.
 To provide conducive working environment
Labor Union Objectives.

It Includes:
 To recognize the labor unions
 To establish the personnel policies in consultation with the
 To create congenial environment with unions so as to
maintain the spirit of self discipline and cooperation with
the management
 To utilize the available HR effectively.
 To increase the employee’s job satisfaction and self-
 To develop and maintain (QWL) which makes employment
in the organization a desirable personal and social situation.

 The scope of HRM is very vast.It

includes all activities starting from man
power planning till employees leave the
organization.The scope consists of
control of human resources in an
organization.national institute of
personnel mgt., Calcutta has specified
the scope as :
 1. The labour or personnel aspect: Manpower
planning, recruitment,selection,training,layoff &
retrenchment,remuneration,incentives etc.
 2. Welfare aspect: It deals with working
conditions,and amenities like canteen,cretch,
housing transport,education health & safety etc.
 3. Industrial relations aspect: union mgt.
Relations, collective bargaining, grievances,etc.
 HRM performs a number of functions and activities for the
achievement of the objectives of HRM.
They fall in to the following categories:
 Organizational planning and development
 Strategic HR planning
 Job Analysis
 Training & Development
 Compensation and benefits
 Performance appraisal
 Health and safety
 Union and employee relations
Functions of HRM according to
Edwin Flippo
 Managerial: Planning,

 Procurement: Job analysis,HR planning,
 Development: Training, executive development.
Career planning, performance management.
 Compensation: job evaluation, wage & salary
administration. Bonus & incentives payroll
 Integration: Motivation, job satisfaction, grievances
handling , collective bargaining,discipline,conflict mgt.
 Maintenance: safety, social security,welfare
schemes,personnel records, personnel
research,personnel audit.
 Decenzo and Robbins have categorized
the functions of HRM as :
Roles of HR Department

 Business Role- operational level,

managerial level, strategic level,
 Enabler Role
 Monitoring Role
 Innovator Role
 Adapter Role
Business Role

 Operational Level: The Hr deptt. takes care of

day to day operations, monitoring systems and
control systems. They also provide for specific
job skill training and plan career moves.

 Managerial level: The HR deptt. do validation of

all the HR activities. They also relate current
conditions and future potential and establish
general MDP.
 Strategic level: The HR deptt. get
involved in the broader long term and
strategic decisions of the organization.
 Enabler Role: HR deptt. enables the line
manager’s to make things happen.
 Monitoring Role: HR deptt. Is
responsible for ensuring that HR
activities are implemented fairly and
 Innovator Role: HR should provide up to
date application of current techniques
and develop and explore innovative
approaches to human resource
problems and concerns.
 Adaptor role: HR has to provide skills to
facilitate organizational change and to
maintain organizational flexibility and