Chapter 1

Introduction to Human Resource Management

Geeta Kanani

After reading this chapter, you should be able to:

Understand the meaning of human resources. Define the objectives, scope and functions of Human Resource Management. Differentiate between Human Resource Management (HRM) and Personnel Management (PM). Enumerate the qualities of HR managers. Discuss the future role of Human Resource Management.

Introduction

Human Resource Management (HRM) act as a catalyst for overall development of nations economy. HRM is a way of management that links people-related activities to the strategy of a business or organisation. HRM is often referred to as "strategic HRM". It has several goals: To meet the needs of the business and management (rather than just serve the interests of employees); To link human resource strategies / policies to the business goals and objectives; To find ways for human resources to "add value" to a business; To help a business gain the commitment of employees to its values, goals and objectives

Human Resource Management is An Art for Businesses, Science for Corporations, and a Subject for Others....

Human resources: meaning

Human resources means the collection of people and their characteristics at work. These are distinct and unique to an organization in several ways.

Why and how human resources (HR) are superior to physical resources
HR alone appreciates over a period. HR achieves in higher performance output than its actual input. HR brings value to all other assets. Operational flexibility is possible with HR.

Human resource management: meaning

Human resource management is concerned with policies and practices that ensure the best use of the human resources for fulfilling the organizational and individual goals.

Functions of human resource management

Operative functions of HRM

Scope of human resource management

Personnel or labour aspect deals with HR planning, recruitment, selection, placement, training and development, remuneration, etc. Welfare aspect deals with working conditions and amenities such as canteen, rest-rooms, etc.

Scope of human resource management (contd.)

Industrial relations aspect deals with unionmanagement relations like collective bargaining, grievance and disciplinary actions, etc.

Difference between HRM and PM

HRM is proactive in nature while PM is reactive. HRM is a resource-centred activity whereas PM is a employee-centred activity. HRM emphasizes on flexible, openended contracts but PM emphasizes the strict observance of defined rules, procedures and contracts.

Difference between HRM and PM (contd.)

HRM views better performance as a cause of job satisfaction whereas PM considers job satisfaction as a source of better performance.

Qualities of an HR manager
Knowledge Intelligence Communication skills Objectivity and fairness Leadership and motivational qualities Emotional maturity and Empathy

Line versus staff authority of HRM

The future role of HRM

Change in the nature of work. Widening scope of HR activities. Greater emphasis on HRIS. Change in labour market conditions. Increasing importance of high performance work systems Growing need for measurement tools to evaluate HR programmes.