INTRODUCTION TO HRM

Definition Of HRM
a)

HRM

is

the

organization

function

that

performed

facilitates

the

in

most

effective use of people (employees) to

achieve Organizational & individual goals.
b)

HRM is process consisting of four functions

-acquisition, development, Motivation &
maintenance of human resources.
( Decenzo & Robbins)

HISTORY OF HRM

Scientific management approach

Human Relations approach

Human Resources approach

1-15

Evolution of the HRM 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.

1-16

Evolution of the HRM Function

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 organisation is a
social system that has both economic and social dimensions.

The Human Resource

concept

Employees are the most valuable assets of an organisation.

There should be a conscious effort to realise organisational 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 organisation 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.

Difference between PM &

HRM
S.N
Parameters
o
1. Managers Task

PM

HRM

Monitoring

2.

Initiatives

Piecemeal

Nurturing
/Facilitator
Integrated

3.

Skills

Negotiator

Facilitation

4.

Policies

Controlling

Empowering

5.

Management Transactiona Transformatio

role/ Leadership
l
n

Difference between PM & HRM

(contd..)
S.N
o

Parameters

PM

HRM

6.

Administrative Task

Reactive

Proactive

7.

Pay

Job evaluation

Performance
based

8.

T&D

Controlled access Learning

to courses
Organization

9.

Communication

Restricted

Increased
flow/Direct

10.

Conflict handling

Temporary basis

Managing culture
& Climate

Functions of HRM

Managerial functions : planning

,organising ,staffing , leading and
controlling

Operative functions :

acquistion ,development ,motivation and

maintenance of hr

Managerial functions

Planning

Organizing

Staffing

Directing

Controlling

Operative Functions

Acquisition: Job analysis, HRP, Recruitment, Selection,

Placement, Induction.

Development: Competency profiling, Training and development,

Performance & potential management, Career management, 360
degree feedback

Motivation: Job design, Work scheduling, Job evaluation,

Compensation administration, Incentives and benefits

Maintenance: Health, Safety, Welfare, Social security,

Employment relations, Grievance, Discipline, Trade unions,
Participation, Collective bargaining

Competitive challenges and HR

1.
2.
3.
4.
5.
6.

Going global
Embracing new technology
Managing change and organisation
culture
Developing human capital
Responding to the market
Containing costs

Downsizing
Outsourcing and employee leasing
Enhancing productivity

Other challenges faced

7. Demographic and Employee concerns
Demographic changes

Diversity of backgrounds

Age distributions

Gender distribution

Rising level of education

8. Cultural changes

Concern for employee rights

Changing attitude towards work

Balancing work and family

Qualities of Human Resources

Managers
Responsibilities

Advice and
counsel
Service
Policy
formulation and
implementation
Employee
advocacy

Competencies

Business mastery
HR mastery
Change mastery
Personal
credibility

Human Resource
Competency Model

HRHR
Mastery
Mastery

Business
Business
Mastery
Mastery
Business
acumen

Business
acumen
Customer orientation
CustomerRelations
orientation
External
External Relations

Personal
Credibility
Trust

Change

Change
Personal
Mastery
Mastery
relationships
Staffing
Interpersonal
skills
Staffing

Interpersonal
skills
Lived values
Performance
appraisal
and
influence
Performance appraisal Courage
and influence
Rewards

system
Problem-solving
Rewards system
Problem-solvingskills
skills
Communication
Rewards
Communication
Rewardssystem
system
Organization
Innovation
design
creativity
Organization
Innovationand
design
and creativity

Source: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, Lower Cost, Higher Value: Human Resource Function in
Transformation. Reprinted with permission from Human Resource Planning, Vol. 17, No. 3 (1994). Copyright 1994 by The Human
Resource Planning Society.

Assignment 1
With business going global &
competition becoming intense today
HR has travelled a long way from its
conventional role as a support
function to being a strategic
business partner in the present
technology leveraged era. Discuss
this statement by citing suitable
examples.