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Definitions Human Resources: The knowledge ,skills ,creative abilities ,talents ,and aptitudes of an organizations workforce, as well as the values ,attitudes and beliefs of the individuals involved. Human Resource Management: A strategic and coherent approach to the management of an organisation`s most valued assets-the people working there who individually and collectively contribute to the achievement of its objectives.

Nature of HRM
Pervasive Force Action oriented Individually oriented People oriented Future oriented Development oriented Integrating Mechanisms Auxiliary Function

Scope of HRM
Personnel aspect:
This is concerned with manpower planning, recruitment , selection ,placement ,transfer ,promotion, training and development ,lay off and retrenchment ,remuneration , incentives etc. Welfare aspect: It deals with the working conditions and amenities such as canteens, crches ,rest and lunch rooms ,housing , transport ,medical assistance, education ,health etc. Industrial relations aspect: This covers union management relations, joint consultation, collective bargaining, settlement of disputes ,etc.

Objectives of HRM
To help the organization reach its goals. To employ the skills and abilities of the workforce

efficiently. To provide the organization with well trained and well motivated employee. To increase to the fullest the employees job satisfaction. To develop and maintain a quality of work life. To communicate HR policies to all employees. To be ethically and socially responsive to the needs of the society.

Functions of HRM

Systems Approach to HRM

Organizational Objectives and Goals Competition for HR Planning Compensation , Promotion Recruitment and Selection People and Skills Legal and regulatory environments

Performance Appraisal

Orientation and Training

History of HRM

Industrial Revolution Industrial Revolution consisted of the development of machinery, linking of power to machines and establishment of factory system and mass production. Characterized by rapid technological change and increased specialization. Increased mechanization made jobs routine and monotonous. Trade Unionism Workers formed their unions to improve their lot. The underlying philosophy was that through collective support management could be forced to redress their grievances.

History of HRM (Cont.)

Scientific Management

It led to professionalization of management, human

engineering, etc. The focus was more on technology and not on human factor in industry. Industrial Psychology Industrial Psychologists stressed matching employee skills with jobs. Advances took place in selection ,placement ,testing ,training, etc.

History of HRM(Cont.)
Human Relations Movement Hawthorne experiments and subsequent research focused attention on the attitudes and feelings of workers and their influence on productivity. Behavioural Sciences Research in behavioral sciences like anthropology, sociology, psychology, etc. has provided subject matter of human resource management. It led to the development of new techniques of motivation ,leadership, job enrichment, employee participation.

History of HRM (Cont.)

Human Resource Specialist and Employee Welfare With the dawn of welfare era ,scope of human resource management increased. It is not only concerned now with recruitment , selection and training of employees. It manages employee benefit programmes and industrial relations system in industry.

Evolution of the Concept of HRM

The Commodity Concept
Labour was regarded as a commodity to be bought and sold. Government did little to protect the interest of the workers. The Factor/Production Concept Labour is like any other factor of production ,viz money, materials ,land ,etc. Workers are like machines. The Goodwill Concept Welfare measures like safety ,first aid, lunch room, rest room will have a positive impact on workers productivity. The Paternalistic Concept

Evolution of the Concept of HRM(Cont.)

The Humanitarian Concept

To improve productivity , physical, social ,and psychological needs of the workers must be met. The Human Resource Concept Employees are the most valuable assets of an organization. The Emerging Concept Employees should be accepted as partners in the progress of a company. The focus should be on Human Resource development.

Growth of HRM in India

Period Emphasis Status Roles


Welfare Management , Paternalistic Practices Expanding the role to cover labour ,Welfare , Industrial Relations


Welfare administrator Policeman Appraiser Advisor Mediator Legal Advisor Fire Fighting Change Agent Integrator Trainer Educator




Emphasis on Developmental human values , aspirations , dignity, usefulness

Growth of HRM in India

1990-2000 Incremental productivity gains through human assets Proactive, growth-oriented Developer Counsellor Coach

Post 2000

Aggressive cost cutting in order to compete in a global environment

Fight for survival

Compete with the best and win

Difference between HRM and PM

Dimension 1. Employment Contract 2. Rules 3. Guide to management action 4. Behaviour referent 5.Managerial Task 6.Key Relations 7.Initiatives 8.Speed of Decision 9.Management Role Personnel Management Careful delineation of written contracts Importance of devising clear rules Procedures Norms/customs and practices Monitoring Labour Management Piecemeal Slow Transactional Human Resource Management Aim to go beyond contract Can do outlook , impatience with the rule Business Need Values/mission Nurturing Customer Integrated Fast Transformational Leadership




Difference between HRM and PM

Dimensions Personnel Management
Job Evaluation(Fixed Grades) Division of labour Labour is treated as a tool which is expendable and replaceable

Human Resource Management

Performance Related Team Work People are treated as assets to be used for the benefit of an organization ,its employees and the society as a whole. Mutuality of Interests

11.Pay 12.Job Design 13.Respect for employees

14.Shared interests

Interests of the organization are uppermost Precedes HRM Top-Down Centralized

15.Evolution 16.Organizing Principles

Latest in the evolution of the subject Bottom-up Decentralized