Human Resource

Management- Introduction
Introduction
Human Resource is concerned with
human beings in an organisation.
Acc. to new outlook, organization's
manpower is viewed as its resources
and assets.
When individuals come to workplace,
they come with not only technical
skills, knowledge, experience etc but
also with
personal feelings, perception, desires,
motives, attitude, values etc.

So HRM is management of various
aspects of human resources.
Human resource is the total knowledge,
abilities, skills, talents and aptitudes of
an organisations workforce.
The values, ethics, beleifs of the
individual working in an organisation also
form a part of human resource.
This resourcefulness of various people is
treated as human resource.
So, HRM is that process of management
which
develops & manages the human
element of organisation. It is not only
the management of skills but also the
attitudes & aspirations of people.
HRM- What it deals in
HRM a process of bringing people &
organization together so that the goals of
each are met.
Its an art of procuring, developing &
maintaining competent work force to
achieve the goals of an organization in an
effective & efficient manner.
Its concerned with most effective use of
people to achieve organizational &
individual goals, its a way of managing
people at work so that they give their best
to the organization.

5
Definition

HRM is the planning , organizing ,
directing and controlling of the
procurement , development ,
compensation , integration, maintenance
and separation of human resources to
the end that individual , organizational
and social objectives are accomplished .
Nature of HRM
Pervasive force
Action oriented
Comprehensive force
People oriented
Future oriented
Development oriented
Science as well as art
Integral part of management
Interdisciplinary functions
Continuous function
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 &
well motivated employees .
To increase to the fullest the employees job
satisfaction.
To develop and maintain Quality of work life.
To communicate HR policies to all employees
To manage human resources in an ethical and
socially responsible manner.
HISTORY OF HRM
(Stages to Modern HRM)
The Industrial Revolution- Rapid technology change
Trade Unionism- Workers join hands to protect them.
Scientific Management
To improve efficiency and speed- Breakdown of work, matching of
individuals, training of employees, Incentives
Human Relations Movement
Hawthorn Experiment came in to existence- Focus on attitudes and
feelings and their influence on productivity.
Behavioral Sciences
Hertzberg, Maslow, likert and other theories related with Motivation
and Leadership came into existence.
Human Resource Specialist & Employee Welfare
To manage employee benefit programmes and industrial relations system.
Evolution of the concepts of
HRM
The Commodity Concept
Labor was considered as a commodity to be bought
and sold. Wages were based on demand and supply.
The factor of Production Concept
Employees were considered a factor of production,
mere operators of machines.
The Paternalistic concept
Employers started providing welfare activities to
workers like health, pension, housing, insurance,
recreation. Collective bargaining came into being.
The Humanitarian Concept

To improve productivity, physical, social and
psychological needs of the employees must be
met.
The Human Resource Concept
It is based on the belief that employees are most
valuable assets of an organisation. Efforts were
made to integrate employees with the organisation
so that goals and aspirations could be achieved.

The Emerging Concept
It aims at creating a feeling among workers that
the organisation is their own. They shd be
accepted as partners in the progress of
organisation.

Growth phases of HRM
Welfare phase (1920s-1930s)

Administration phase(1930s-
1940s)

Employee relations phase (1940-
1960s)

Functional expertise phase (1970s-
1980s)

Business partner / player phase
(1990s)

Scope of HRM
The Personnel Aspect- Manpower
planning, recruitment, selection,
placement, induction, transfer,
promotion, demotion, termination,
T&D, W&S Administration, incentives,
lay off & retrenchment
The Welfare Aspect- Working
conditions, amenities like canteens,
creches, rest rooms, housing,
transport, education,
medical, health & safety, recreation &
cultural activities.
The Industrial Relations Aspect-
companys relations with employees,
union mgt relations, joint consultation,
negotiation, collective bargaining,
grievance handling, disciplinary
actions, settlement of industrial
disputes.
Importance of HRM
HRM in an organization helps in diverse ways
At enterprise level
Good HR practices helps in attracting & retaining
best people in the organization for better
productivity & planning process alerts company to
the kind of personnel required in an organization.
At individual level
It helps employees by; promoting teamwork & team
spirit among employees, providing growth
opportunities to its people by performance
appraisals & other basis, it allows people to work
with diligence & commitment.
Societal level
Society on a whole is a major beneficiary of good
HR practices, employee opportunities multiply,
scarce talents put to optimal use.
Personnel V/s HR
Personnel management is more
administrative in nature, dealing with
payroll, complying with employment law,
and handling related tasks.

Human resources, on the other hand, is
responsible for managing a workforce as
one of the primary resources that
contributes to the success of an
organization .
Functions of HRM
Managerial functions
Planning
Organizing
Directing
Controlling
Operative functions
Procurement
Development
Compensation
Integration
Maintenance
Emerging issues in
HRM
Managerial Functions
Planning This function deals with determination of the
future course of action to achieve. Planning of
personnel today prevents crisis tomorrow .
Organizing This function is concerned with proper
grouping and assigning of personnel activities and
delegation of authority.
Directing This function involves supervising and
guiding the personnel
Controlling this function is concerned with measuring
employees performance & correcting deviations
1. Procurement
Job Analysis
Human resource planning
Recruitment
Selection
Placement
Induction & Orientation
Internal Mobility
2. Development
Training
Executive Development
Career planning and Development
Human Resource Development
3. Compensation
Job evaluation
Work scheduling
Performance appraisal
Compensation administration (Wage &
salary administration)
Incentives & Benefits
Bonus
4.Maintenance
Employee Health and Safety

Employee Welfare

Social security

5.Integration
Making Groups
Sense of belongingness
Harmony of interests
Proper communication channel
Grievance redressal
Create good industrial relations


6. Emerging Issues
HR Audit
HR Accounting
HRIS
Stress and Counseling
QWL
Human Resource Research
IHRM
Challenges faced by HRM
Increasing size of workforce (as organization
are increasing in size & complicity no. of
people working increases & hence managing
the workforce become a serious problem &
challenging task, since the workers are more
conscious of their rights)
Changing psycho social system (earlier
traditional concept of being autocratic in
performing technical functions are now
transformed into democratic humanistic system
through human participation in technical
operations)
Satisfaction of higher level needs (evolving
appropriate techniques & strategies to motivate
workers & getting the work done)
Equalitarian Social System (organizations of
future will give a lower emphasis on hierarchical
structure & on a long run will eliminate these &
move towards equalitarian social system)
Technological advancements (unemployment
resulting from modernization & technological
advancements will be liquidated by properly
assessing man power needs & training of
redundant employees in alternate skills)
Computerized information system (it has an
increasing impact on co-ordination in various
strategic levels)
Change in legal environment (to meet with
increasing changes in the legal environments,
adjustments could be done by utilizing the HR
personnel)
Management of human relations (changes in the
system coupled with rising educational levels would
induce higher degree of participation in managerial
decisions)
Role of HR manager
Administrative roles

Operational roles

Strategic roles
Administrative roles
Policy maker formation of policies
governing talent acquisition,
retention, wage and salary
administration, welfare activities,
working conditions etc
Administrative expert information
processing and record keeping.
Advisor- advising ,suggesting, and
helping the line managers in
discharging the responsibilities .
House keeper manages the show
by recruiting , pre-employment
testing ,

reference checking ,time keeping
etc..
Counselor problems related to
professional and personal life will be
addressed
Welfare officer-provides and
maintains hospitals , canteens,
crches , educational institutes,
clubs, libraries etc
Legal consultant- plays a role of
grievance handling, settling of
disputes, disciplinary cases ,
collective bargaining etc..


Operational roles
Recruiter Talent acquisition
Trainer Helps in enhancing
knowledge and skills .
Coordinator linking pin between
various departments of an
organization.
Conflict handler


Strategic roles
Change agent HR manager helps to
replace
1. Resistance with resolve
2. Planning with results
3. Fear of change with excitement

Strategic partner Strategy formulation
and strategy implementation .

Qualities And Qualification of HR
Manager
Qualities
1. Personal attributes initiative, maturity
in judgment, analytical ability ,intellectual
integrity, knowledge of labour laws ,
understanding of human behaviour and
human needs .
Intelligence skills to communicate ,
articulate, moderate , command over
language , tact in dealing with people
etc..
Education skills
Executing skills

2. Experience and training

3. Professional attitudes HR
manager must be able to combine
social justice with a warm personal
interest in people which must be
secured by commonsense,
compassion and integrity.
Types of organizational structure
H R Department in Line Organizational
Structure
H R Department in Functional Organizational
Structure
H R Department in Line & Staff Organizational
Structure
H R Department in Divisionalised
Organizational Structure
H R Department in Matrix Organizational
Structure
HR management is a
line responsibility
and
a staff function
Staff relationship
Relationship existing between 2 or more
managers due to giving and taking advice,
guidance, information, assistance ,
counseling etc in the process of attaining
organization goals .
Staff managers analyse problems, collect
information and develop alternative
suggestions and help line managers to
make right decisions quickly.

Line relationship
Relationship existing between 2 or more
managers due to delegation of authority
and responsibility and giving or receiving
instructions or orders .
Generally exists between a superior and a
subordinate.
Line managers are completely responsible
and accountable for the results achieved
by the employees of respective
departments .

H R Department in Line
Organizational Structure
C.E.O.
H R Manager
Training Officer Employment Officer Wage & Salary Officer Welfare Officer
clerks
clerks clerks clerks
H R Department in Functional
Organizational Structure
C.E.O.
H R Manager
Training Officer Employment Officer Wage & Salary Officer Welfare Officer
clerks
clerks clerks clerks
H R Department in Line & Staff
Organizational Structure
C.E.O.
H R Manager
Training Officer Employment Officer Wage & Salary Officer Welfare Officer
clerks
clerks clerks clerks
Staff Function
Line Function
H R Department in Divisionalised
Organizational Structure
C.E.O.
H R Manager
Training Officer Employment Officer Wage & Salary Officer Welfare Officer
clerks clerks clerks clerks
H R Officer
(Northern Division)
H R Officer
(Southern Division)
H R Officer
(Eastern Division)
H R Officer
(Western Division)
H R Department in Matrix
Organizational Structure
C.E.O.
G.M.
H. R.
Department
Engineering
Department
Finance
Department
Marketing
Department
Project A
Project B
Project C
Personnel Policies
A policy is a predetermined course of
action established to guide the
performance of work towards the expected
objective.

Policy is a type of standing plan that
serves to guide subordinates in the
execution of their task.
Personnel or Labor or industrial relations
policy provides guidelines for a wide variety of
employment relationship in the organization. These
guidelines identifies the organizational intention in
Recruitment, Selection, Promotion, Development,
Compensation, Motivation & otherwise leading and
directing people in the working of the organization.
- Dale yoder
Essentials of a sound H R Policy
It should express the intention of top management.
It should represents the principles which will guide the
action.
It should be based on the objective of the organization.
It should be longlasting and realistic
It should be definite, positive and clear.
It should be brief, general and flexible,
It should be in written form.
It should be based on the careful analysis of facts and
information.
It should be fair and equitable.
It should be capable of being executed.

Formulation of Policy
Identify the Needs
Gathering Information
Examining policy Alternatives
Putting the policy in Written form
Getting Approval
Implementation
Evaluation and Appraisal
Types of Personnel Policy

Written and Unwritten Policy
General Policy
Specific Policy
Imposed Policy
Originated Policy
Appealed Policy

Types of personnel policies
Originated policies established by
top management so as to guide
executive thinking at various levels.
Appealed policies formulated to
meet the requirements of certain
peculiar situations which have been
not covered by the earlier policies
Imposed policies formed under
pressure from external agencies
such as government , trade unions
etc .

General policies- They reflect the
basic philosophy and priorities of
the top management .

Specific policies- They cover
specific issues such as hiring,
rewarding and negotiating .

Written and Implied policies
Procedures
Procedures are detailed statements describing
specifically how the policy is to be implemented .
Policies are implemented by procedures.
Procedures are derived from policies.
Chronological ,step-by-step sequence of
required action.
Policies define a broad field .Procedures show a
sequence of activities within that area
Multi purpose plan


Programmes
Programmes are complex sets of
goals , policies, procedures , rules ,
steps to be taken, resources to be
employed and other elements
necessary to carry out a given
course of action.

Single purpose plan