An orgn is made up of 4 resources

Men
Material
Money Non Living
Machinery

It is the human that make use of non human
resources.

L. F. Urwick had remarked that

Business houses are made or broken in
the long run not by markets or capital,
patents or equipments, but by men.
As Peter F. Drucker also says

Men, of all the resources available to
man, can grow and develop.
is the effective management of people at
work
The goal: make workers more satisfied and
productive
When an organization is concerned about people,
its total philosophy, culture, and orientation reflect
it
Every manager must be concerned with
people, whether or not there is a human
resources department
It is important to
remember that
the people who do
the work and
create the ideas
allow the
organization to
survive
Changes experienced by organizations:
Growing global competition
Rapidly expanding technologies
Increased demand for individual, team, and
organizational competencies
Faster cycle times
Increasing legal and compliance scrutiny
Higher customer expectations
The mechanized, routine-oriented
workforce is giving way to a knowledge-
based workforce
HRM is process of making the efficient
and effective use of human resources so
that the set goals are achieved.
Acc to Flippo
Personnel mgmt or say HRM is the
planning, organizing, directing or
controlling of the procurement,
development, compensation,
integration, maintenance & separation of
HR to the end that individual, orgnl &
social objectives are achieved.
Acc. To Decenzo & Robbins
HRM is concerned with the PEOPLE DIMENSION in
management. Since every orgn is made up of
people, acquiring their services, developing their
skills, motivating them to higher levels of
performance and ensuring that they continue to
maintain their commitment to the organisation are
essential to achieve organizational objectives. This
is true regardless to the size of the organization,
government, business, education, health,
recreation, or social action.
Acc to Leon C. Megginson
From the national point of view, Human
resources are Knowledge, skills ,
creative abilities, talents and attitude
obtained in the population.
Whereas
From the view point of Individual
enterprise, they represent the total of
the inherent abilities, acquired
knowledge and skills as exemplified in
the talents and aptitude of its
employees.
Now human resources are considered
as HUMAN CAPITAL, which can be
classified into 3 categories
Intellectual Capital
Social Capital
Emotional Capital
Intellectual Capital consists of
specialized knowledge, tacit knowledge
and skills , cognitive complexity , and
learning capacity.


Social capital is made up of network of
relationships, sociability and
trustworthiness.
Emotional capital consists of self
confidence, ambition & courage, risk
bearing ability & resilience.
In that way, Human Resources refer to
both QUALITATIVE & QUANTITATIVE
aspects of employees working in an
organisation.
Fairness and firmness

Tact and resourcefulness

Sympathy and consideration

Knowledge of labor and other terms

Broad social outlook

Others and Academic qualifications
Importance of HRM
attract and retain talent
train people for challenging roles
develop skills and competencies
promote team spirit
develop loyalty and commitment
increase productivity and profits
improve job satisfaction
enhance standard of living
Good HR Practices help
Functions of HRM
Planning
Organizing
Directing
Controlling
Operative Functions
P/HRM
Managerial
functions:
Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal
mobility
Development:
Training
Executive
development
Career
planning
Succession

planning
Human
resources
development
strategies
Motivation and
Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services
Maintenance:
Health
Safety
Welfare
Social security
Integration:
Grievances
Discipline
Teams and
teamwork
Collective
bargaining
Participation
Empowerment
Trade unions
Employers
associations
Industrial
relations
Emerging
Issues:
Personnel
records
Personnel
audit
Personnel
research
HR
accounting
HRIS
Job stress
Mentoring
International
HRM
HRM as a central subsystem in an
organization
Product
Subsystem
HR Subsystem
Procurement
Training
Compensation
Appraisal
Rewards
Marketing
Subsystem
Finance
Subsystem
Technical
Subsystem
Objectives of HRM
Objectives of the HRM Function
Increasing employees job satisfaction and self-
actualization
Employees must feel that the job is right for their
abilities and that they are being treated equitably
Satisfied employees are automatically more productive
However, unsatisfied employees tend to be absent
and quit more often and produce lower-quality work
Both satisfied and dissatisfied employees can perform
equally in quantitative terms
Objectives of the HRM Function
Quality of work life (QWL) is a general concept that
refers to several aspects of the job, including:
Management and supervisory style
Freedom and autonomy to make decisions on the job
Satisfactory physical surroundings
Job safety
Satisfactory working hours
Meaningful tasks
The job and work environment should be structured to
meet as many workers needs as possible
Objectives of the HRM Function
Communicating HRM policies to
all employees:
HRM policies, programs, and procedures must be
communicated fully and effectively
They must be represented to outsiders
Top-level managers must understand what HRM can
offer
Objectives of the HRM Function
Maintaining ethical policies and socially responsible
behavior:
HRM managers must show by example that HRM
activities are fair, truthful, and honorable
People must not be discriminated against
Their basic rights must be protected
These principles should apply to all activities in the
HRM area
Objectives of the HRM Function
Managing increased urgency and faster cycle times:
Firms are placing a growing emphasis on:
Increasing customer service
Developing new products and services
Training and educating technicians, managers,
and decision makers
Shorter cycle times mean less time to:
Train, educate, and assign managers
Recruit and select talented people
Improve the firms image
Learning provides a framework for decreasing
cycle time


HRMs Place in Management
The HR department must be a proactive, integral part
of management and strategic planning
Ascertain specific organizational needs for the
use of its competence
Evaluate the use and satisfaction among other
departments
Educate management and employees about the
availability and use of HRM services
HRM strategic plans must build on the firm's strengths
HRM
ACQUISITION
HRP,
Recruitment,
Selection
Placement
MAINTAINANCE
Remuneration
Motivation
Health & safety
Social Security
IR
Performance
Appraisal
DEVELOPMENT
Training
Career development
Organisational Dev
Internal Mobility
CONTROL
HR Audit
HR Accounting
HRIS
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
Personnel departments were created to deal with:
Drastic changes in technology
Organizational growth
The rise of unions
Government intervention
concerning working people
Around the 1920s, more organizations
noticed and acted on employee-management conflict
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
concept

Labour was regarded as a commodity to be bought and sold.
Wages were based on demand and supply. Government did
very little to protect workers.

The Factor of
Production concept
Labour is like any other factor of production, viz, money,
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
concept/ Paternalism

Management must assume a fatherly and protective attitude
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
The Humanitarian
concept

To improve productivity, physical, social and psychological
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
concept

Employees are the most valuable assets of an organization.
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.
Evolution of the Personnel Function
Personnel Function in India;
Changing Scenario
Period Emphasis Status Roles

1920 30 Welfare management Clerical Welfare
Paternalistic practices administrator


1990s Incremental productivity Proactive, Developer
onwards gains through human growth-oriented Counsellor
assets Coach
Mentor
Problem solver
1940 60 Expanding the role to cover Administrative Appraiser
Labour, Welfare, Industrial Advisor
Relations and Personnel Mediator
Administration Legal advisor
Fire fighting

1970 80 Efficiency, effectiveness Developmental
Change agent
dimensions added
Integrator
Emphasis on human
Trainer

values, aspirations,
Educator
Dimensions Personnel
Mgmt.
HRM
a. Nature of
relations
Pluralist Unitary
b. Perception
of Conflict
Conflict is
institutionalized
Conflict is
Pathological
c. Contract Emphasis on
compliance
Beyond
Contract
Commitment
d. Role of
procedures
Rules
dominated
Culture &
values
dominated
e. Planning
perspective
Ad hoc,
reactive
Integrated,
proactive
f. Level of trust Low High
g. Key relation Labour-
management
Customer
h.
Managements
Role
Transactional Transformatio
nal
i. Acceptability
of Unions
Acceptable Not desirable
j. Basis of job
design
Division of
labour
Teams
k. Key People PM/IR
Specialists
Line people &
General
Managers
l. Skill
acquisition
Training &
development
Learning
organization
m. Reward
Management
Standardized
job evaluation
Performance
related