INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT
What is Human Resource
Management?
What is HRM?
◦ Organization’s methods and procedures for
managing people to enhance skills and
motivation
◦ Activities to enhance the organization’s
ability to attract, select, retain and motivate
people

 Thegoal: make workers more satisfied and

productive
 Every manager must be concerned
with people, whether or not there is
a human resources department
 HRM components
Acquisition
Planning
Recruiting
Employee socialization

Development
Training
Management development

Motivation
Job design
Performance evaluation
Rewards
Compensation
Discipline

Maintenance
Safety &health
Employee/labour relations
 Competitive Advantage
Through People
Viewing the work force as an asset,
not an expense
The result:
◦ Harder work, from increased involvement
and commitment
◦ Smarter work, through enhanced skills
and competence
High performance work systems
Traditional HR Functions
Distinguishing HRM and PM
Dimension Personnel/IR HRM
Beliefs and assumptions
1. Contract Careful delineation of Aim to go 'beyond
written contracts contract'
2. Rules Importance of devising 'Can-do' outlook;
clear impatience with
rules/mutuality 'rule'
3. Guide to Procedures 'Business need'
management
action

4. Behaviour referent Norms/custom and Values/mission

practice
5.Managerial task Monitoring Nurturing
vis a vis labour
6. Nature of relations Pluralist Unitarist
 Strategic aspects
Personnel /IR HRM

6. Key relations Labour Customer

management

7. Speed of decision Slow Fast

 Line management
Personnel / IR HRM

8. Management role Transactional Transformational

leadership

9. Key managers Personnel/IR specialists General/business/line

managers

10. Communication Indirect Direct

11. Standardisation High Low

12. Prized management Negotiation Facilitation

skills
 Key Levers
Personnel / IR HRM
13. Selection Separate, marginal Integrated, key task
task
17. Communication Restricted flow Increased flow
18. Job design Division of labour Teamwork
19. Conflict handling Reach temporary Manage climate and
truces culture
20. Training and Controlled access to Learning companies
development courses
The Context of HRM
The HR Functions
Importance of HRM
 Importance of HRM
Attract and retain talent
Train people for challenging roles
Develop skills and competencies
Promote team spirit
Good HR Practices help
Develop loyalty and commitment
Increase productivity and profits
Improve job satisfaction
Enhance standard of living
 Image and Quality of
HR/Personnel Manager
 Image and Quality of
HR/Personnel Manager
 Fairness and firmness

 Tact and resourcefulness 

 Sympathy and consideration 

 Knowledge of labor and other terms 

 Broad social outlook

 Academic qualifications
 Functions of HRM
P/HRM

Managerial Operative Functions

functions:
Procurement Development: Motivation and Maintenance: Emerging
Integration:
Compensation: Issues:
 Functions of HRM
P/HRM

Managerial Operative Functions

functions:
Procurement Development: Motivation and Maintenance: Emerging
– Planning Integration:
Compensation: Issues:
Job Analysis Training Grievances
Job design Health Personnel
HR planning Executive records
Work Discipline
– Organizing Recruitment development
scheduling Safety Personnel
Teams and
Selection Career teamwork audit
Motivation
planning Personnel
Placement Job evaluation Welfare Collective
Succession research
– Directing bargaining
Induction Performance HR
planning and potential Social Participation
Internal accounting
appraisal security
mobility Human Empowerment HRIS
– Controlling resources Compensation
development administration Trade unions Job stress
strategies Mentoring
Incentives Employers’
benefits and associations International
services HRM
Industrial
relations
HRM as a central subsystem in an
organization
Product
Subsystem

HR Subsystem
Procurement
Finance Training Marketing
Subsystem Compensation Subsystem
Appraisal
Rewards

Technical
Subsystem
 A Brief History of HRM
 HRM can be traced to England, where craftspeople
organized guilds
 They used unity to improve working conditions

 The Industrial Revolution in the 18th century laid the

basis for a new, complex industrial society
 Changing work conditions, social patterns, and labor
created a gap between workers and owners
 During the world wars era, scientific management,
welfare work, and industrial psychology merged
A Brief History of HRM
 Frederick W. Taylor, the father of scientific
management, summarized scientific management as:
 Science

 Harmony

 Cooperation

 Maximum output

 Industrial psychology, initiated in 1913, focused on:

 The worker

 Individual differences

 The maximum well being of the worker

A Brief History of HRM
 The Hawthorne studies (1924 to 1933):
 Were to determine the effects of
illumination on workers and their output
 Rather, it pointed out the importance of
social interaction on output and satisfaction
 Until the 1960s, the personnel function was concerned
only with blue-collar employees
 File clerk, house-keeper, social worker, firefighter, and
union trouble defuser
Evolution of the Personnel Function
Concept What is it all about?

The Commodity Labour was regarded as a commodity to be bought and sold.

concept Wages were based on demand and supply. Government did
very little to protect workers.

The Factor of Labour is like any other factor of production, viz, money,
Production concept materials, land, etc. Workers are like machine tools.

The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room
will have a positive impact on workers’ productivity

The Paternalistic Management must assume a fatherly and protective attitude

concept/ Paternalism towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.

Cont…
Evolution of the Personnel Function
The Humanitarian To improve productivity, physical, social and psychological
concept needs of workers must be met. As Mayo and others stated,
money is less a factor in determining output, than group
standards, group incentives and security. The organization is a
social system that has both economic and social dimensions.

The Human Resource Employees are the most valuable assets of an organization.
concept There should be a conscious effort to realize organizational goals
by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a

company. They should have a feeling that the organization is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.
Objectives of HRM