Unit - 1

Introduction to HRM

Contents

HRM: Concept & Its Definition

Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM vs. HRD
Limitations of HRM
Challenges before HRM

BBA Semester - III

H.R.M & OB

Human Resources
Are an organisations greatest assets
All other resources get connected through men
To make them deliver they need to be
Properly selected
Properly trained
Properly motivated

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Definitions of HRM
Byers & Rue: HRM is the function facilitating the most
effective use of people to achieve both organisational
and individual goals
Michael Jucious: HRM is that field of management
which deals with planning, organising & controlling the
functions of procuring, developing, maintaining and
utilising a labour force such that organisational &
individual goals are fulfilled

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HRM is
Process of acquiring, training, appraising and
compensating employees such that they are
motivated to achieve both the organisational and
individual goals

BBA Semester - III

H.R.M & OB

Till now

HRM: Concept & Its Definition

Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM vs. HRD
Limitations of HRM
Challenges before HRM

BBA Semester - III

H.R.M & OB

Importance of HRM
Importance of human resources can be
discussed at four levels:

Corporate
Professional
Social
National

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Corporate
HRM can help an enterprise in the following
ways:

Attracting talent through effective HRP

Developing necessary skills & attitude with training
Securing cooperation through motivation
Retaining talent through the right policies

BBA Semester - III

H.R.M & OB

Professional
HRM helps improve quality of work life and
contributes to growth in the following ways:

Opportunities for personal development

Motivating work environment
Proper allocation of work
Healthy relationships between individuals & groups

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Social
Society benefits from good HRM in many ways:

Good employment opportunities

Development of human capital
Generation of income & consumption
Better lifestyles

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National
Drivers of development of a country
Deliver economic growth

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H.R.M & OB

Till now

HRM: Concept & Its Definition

Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM vs. HRD
Limitations of HRM
Challenges before HRM

BBA Semester - III

H.R.M & OB

Functions of HRM
The process of HRM consists of 4 basic
functions:

Acquisition of human resources

Development of human resources
Motivation of human resources
Maintenance of human resources

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Acquisition Function
Process of identifying and employing people
possessing required level of skills

Job Analysis
HRP
Recruitment
Selection

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Development Function
Process of improving, moulding and changing
the skills, knowledge and ability of an employee
Employee Training
Management Development
Career Development

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Motivation Function
Process of integrating people into a work
situation in a way that it encourages them to
perform / deliver to the best of their ability
Understanding needs
Designing motivators
Monitoring

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Maintenance Function
Process of providing employees the working
conditions that help maintain their motivation
and commitment to the organisation
Satisfaction Levels
Retention

BBA Semester - III

H.R.M & OB

Till now

HRM: Concept & Its Definition

Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM vs. HRD
Limitations of HRM
Challenges before HRM

BBA Semester - III

H.R.M & OB

Organisation of HRM Department

DIRECTOR
(HRD)

MANAGER
(PERSONNEL)

MANAGER
(ADMINISTRATION)

HR PLANNING

WELFARE

TRAINING &
DEVELOPMENT

RECRUITMENT
&
SELECTION

LEAVE RECORDS

PERFORMANCE
APPRAISAL

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MANAGER
(HRD)

H.R.M & OB

Role of HR Manager

Job Design / Job Analysis

Human Resource Planning
Recruitment & Selection
Training & Development
Performance Appraisal
Compensation / Benefits
Personnel Information Systems
Employee Motivation / Assistance

BBA Semester - III

H.R.M & OB

Till now

HRM: Concept & Its Definition

Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM vs. HRD
Limitations of HRM
Challenges before HRM

BBA Semester - III

H.R.M & OB

HRM vs. HRD

HRM is the process of effectively employing
people in an organisation
HRD is the process of training & development of
employees to make them effective
HRD is an important subset of HRM

BBA Semester - III

H.R.M & OB

Till now

HRM: Concept & Its Definition

Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM vs. HRD
Limitations of HRM
Challenges before HRM

BBA Semester - III

H.R.M & OB

Limitations of HRM

HRM only a support function!

Training programs only a cost!
Not an as & when needed function!
Not specifically qualified / trained people!
Inadequate information systems / records!
Misunderstood as HRD!

BBA Semester - III

H.R.M & OB

Till now

HRM: Concept & Its Definition

Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM vs. HRD
Limitations of HRM
Challenges before HRM

BBA Semester - III

H.R.M & OB

Challenges before HRM

Globalisation (More productivity)

Technological Trends (New skill set)
Increasing Service Sector (Customer Interface)
Working Trends (9 to 9!)
Demographic Trends (Young India!)

BBA Semester - III

H.R.M & OB

Summary (Unit 1)

HRM: Concept & Its Definition

Importance of HRM
Functions of HRM
HRM Department: Organisation & Role
HRM vs. HRD
Limitations of HRM
Challenges before HRM

BBA Semester - III

H.R.M & OB