CHAPTER 1

INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT

Human Resources
HR is the total knowledge, skills, creative abilities,
talents and aptitudes of an organisations workforce
as well as the values, attitudes and beliefs of the
individuals involved.

Essence of HRM
Human resource management is the effective use of
human resources in order to enhance organizational
performance

Evolution of HRM Concept

Labour / Manpower denotes physical abilities &
capacities of employees commodity - wages based
on demand & supply
Personnel persons employed in service employees
as a whole
HR- denotes resources of all the people who
contribute their services to the attainment of
organisational goals

Evolution of HRM
Period

Emphasis

status

Roles

1920-30

Welfare management
Paternalistic practices

Clerical

Welfare administrator
Policeman

1940-60

Expanding the role to cover

labor, welfare, industrial
relations and personnel
administration

Administrative

Appraiser
Advisor
Mediator
Legal advisor
Fire fighting

1970-80

Efficiency, effectiveness
dimensions added emphasis
on human values, aspirations,
dignity, usefulness

Developmental

Change agent
Integrator
Trainer
Educator

1990-2000

Incremental productivity gains

through human assets

Proactive, growth- Developer

oriented
Counselor
Coach
Mentor
Problem solver

Post 2000

Aggressive cost cutting in

order to compete in a global
environment

Fight for survival to

live for another day

Compete with the best

and win

Importance of HRM
HR most important resource
Put other resources to proper use
Helps transform lifeless factors of production into
useful products
Capable of enlargement produce extraordinary
things when inspired (Competitive Advantage)
Can help organisation achieve results quickly,
efficiently & effectively

Objectives of HRM

Maximize the return on investment from the

organization's human capital and minimize
financial risk
To align the capabilities and behaviors of
employees with the short-term and long-term
goals of the organisation

OBJECTIVES OF HRM
Personal
Objectives

Societal
Objective

Objective
of
HRM

Functional
Objective

Organizational
Objective

Objectives of HRM
Societal objectives
To be ethically & socially responsible to the needs of the society
while minimizing the negative impact of such demands upon the
organization
Organizational objectives
To recognize the role of HRM in bringing about organizational
effectiveness
Functional objectives
To maintain the departments contribution at a level appropriate
to the organizations needs
Personal objectives
To assist employees in achieving their personal goals in a
manner that their personal goals enhance the individuals
contribution to the organization

Scope of HRM
Prospects
of HRM

Nature of
HRM

Industrial
Relations

HRM

Employee
Maintenance

Employee
Motivation

Employee
Hiring

Employee
&
Executive
Remunerat
ion

Very vast
Covers all major
activities in the
working life of a
worker - from time an
individual enters into
an organization until
he or she leaves,
comes under the
purview of HRM

Human Resource Management Functions

HRM Challenges
With the ongoing changes in Human Resources Management (HRM), its
important that managers, executives and HR employees, specifically, be
aware of the challenges that todays HRM team may face. While there
are certainly other issues, these are common to most any type business or
size of company and having policies in place to ensure these challenges
are met head-on can make the workplace more settled and peaceful for
everyone.

1.
2.
3.
4.
5.

Workplace diversity
Change management
Compensation and benefits
Recruiting skilled employees
Training and development.

1. Workplace diversity. This may consist of issues involving age,

education, ethnicity, gender, income, marital status, physical
limitations, religion, sexual orientation, or any number of other
things. Understanding the challenges that may be faced by the
interaction of any of these diverse groups, as well as the required
openness of the company toward such groups, will help HR personnel
provide assistance in training employees to work with those they may
consider different, accept that such workers may be present in the
business, and agree to treat each other respectfully, even if they never
come to agree with each other over various issues.
2. Change management. This is another challenge that more and
more HR departments are facing. Being able to deal with their own
changing roles in corporate society, in addition to the changes to other
jobs, the overlapping responsibilities, and more. Understanding that
change is required is the first step toward accepting the change.

3. Compensation and benefits. With a slow economy and tightening

corporate purse-strings, the issue of compensation and employee benefits is
one that almost every business must deal with. The key is to present
mandatory changes in such a way that employees can accept, if not necessarily
agree with them while providing non-monetary morale boosting incentives
whenever possible to make the changes less traumatic.
4. Recruiting skilled employees. In an era of rising unemployment, it
would seem that finding qualified workers would be easier than ever. But
thats seldom the case. Many industries are facing dire needs for employees
with acceptable skills and the required training or degree. This applies not
only to management, but also to technology and other fields as well, causing
many employers to search outside their local marketplace for workers who can
do the jobs they need filled.
5. Training and development. This is another challenge that HR managers
and personnel must deal with more frequently. With the need to cut training
costs, training itself often suffers. Yet the skills an employee needs must still
be taught. Many companies are meeting this challenge by providing eLearning
opportunities that allow employees to receive the training they need without
the expenses associated with travel, on-site trainers, hours away from their
jobs and high-priced materials.