Human Resource Management

Reference Book:
1. Human Resource management
By Gary Dessler (9th Edition)

2. Managing Human Resources

By Wayne F. Cascio (5th Edition)
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19-08-14

What is HRM

Human: It refers to the work force or human capital of an organisation.

Resource: It refers to limited availability. (both quality and quantity)

Management: It refers to maximisation or proper utilisation or to make best

use of that limited resource in an organization.

Definitions of HRM
The selection, training and management of human resource of the organization
to make it competitive.
To make human resource knowledgeable and skilful for doing complex tasks in
an effective and efficient manner.
The process of hiring and developing employees, so that they become more
valuable for the organization.

 Human Resource (HR) management deals with the design of formal systems
in an organization to ensure the effective and efficient use of human talent to
accomplish organizational goals (Gary Dessler)

HRM is an art or science?

It is the art and science of managing organizations people to achieve specific

business objectives.
Why it is called a science?
Science includes different techniques, formulas, strategies and methods
based on research and analysis
HRM is called a science, because it includes different techniques, formulas,
strategies and methods, which are developed by experts on the basis of research
and analysis.
Why it is called an art?
Art is the selection and application of these techniques, strategies and methods
according to different situations
HRM as an art means the customized application of this knowledge in diversified
situations.
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26-08-14

Why HRM is required?

We as a customer go to organizations either to buy products or

services.
We go to them because their products / services satisfy our wants/
needs.
Need:

Want:
And this is the reason for the existence of these organizations
because we demand their product / services.
Hotels, Airlines, Computers, Automotive, Hospitals, Universities
etc.
Being a customer, we expect continuity in their quality of product
/ services.
To continuously provide qualitative products/services is too large
a work and too complex a task to be performed by one person.
So lot of people are brought together and each of them is assigned
a part of the total task.
Activities of this multi-disciplined team need to be coordinated for
best possible outcome.
Therefore, management of human resource is required to ensure
the continuity in qualitative delivery of products/services to
customers.
Technology, raw materials, information can be duplicated
anywhere, but the most unique and critical element, which is unique
to every organization and nation is its workforce.
What is the importance of HRM?
Organizations are made of people and without people they cannot exist.

1. Mr. Konosuke Matsushita, founder of a giant electronics firm that sell

their products under the name of National, Panasonic said in 1950s,
I told my employees that when your customers ask from you, what your company
make, tell them that Matsushita is making human beings, we also make electrical
appliances but first and foremost, our company makes human beings

2. Thomas Watson Jr, Chairman, IBM, 1952-1971

All the value of this company is in its people. If you burned down all my plants
and I just keep my people and my information files, I shall soon be as strong as
ever. Take my people away, and I might never recover

3. Alfred Sloan (1875-1966), Chairman and CEO of General Motors

and great professional manager of our time He is a graduate of MIT in
1895. In 1952, Sloan foundation sponsored MIT school of Industrial
management with the purpose of producing an ideal manager. After
sometime, it was renamed as Sloan school of management.

In his book My years with General Motors written in 1950s but published in
1964, mostly emphasized that companies success is based on increasing the
organizational efficiency.
The tree of organizational efficiency comprises of many branches:
o To reduce the costs
o To increase productivity
o To move ahead of competitors
o To avail opportunities
o To overcome challenges
o To manage change by the organization
o To improve culture of organization

Interestingly, all the above mentioned branches are rooted in the human resource of
any organization.

4. In 21st century, organizations and economies will be more exposed to

global competitions (because world has now become a global village) in
which one of the decisive factors will be human resource, which is cheap,
skilful and creative.
HR Challenges

1.

Globalization:

Due to globalization, world is shrinking and businesses

are carried out without borders.

Availability of economical and skilful globalized

workforce increases the competition among human capital. (
How to train our own team up to the level of globalized
available workforce)

Both from selling and buying perspective,

HR managers are required to firstly identify the related

skills and then develop those skills among the workforce.

2.

Technology

Fast pace of new technological advancements in every

field put a great challenge to HR mangers

To constantly improve the skills level of their people

according to new technical requirements of latest equipments.

How to dispose of the workforce? We should formulate

some HR channels


To plan their excellent placements that are skilful but no
more required by organizations due to automation.

3.

Change

Constant changes in every field create lot of stress

among individuals related to their careers, job opportunities,
business development, customer satisfaction, quality controls
and cost effectiveness.

To enhance the ability of an organization to anticipate

and respond to these changes taking place in its internal and
external environments and enabling employees at all levels to
cope up with these changes. (Is it advisable to make engine
strong or provide small wheels on all compartments. It means to
make selected managers skilful enough or enhance the skill
level of all employees)

4.

Knowledge Management

Creation, Transfer and Application of knowledge among

people for the competitive advantage of organization.

Capture of tacit and explicit knowledge of people before

they move on to other organizations.

5.

Cost Control

6.

To reduce business costs in order to be competitive

Organizational Restructuring


In order to be competitive, many organizations
restructure themselves due to which job requirements need to
be redesigned; as a result, people get affected. Some of the
salient reasons for organizational restructuring are:
To remove several layers of management in order to
reduce costs.
Mergers with other organizations. (What is the
difference between Collaboration, Alliance and Merger?)
Closing down of facilities due to economic difficulties
Outsourcing of works due to feasible opportunities