Chapter 1

Introduction to Human
Resource Management

Learning Outcome:

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.

Is there a difference between

HR & HRM?

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.

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.

Is human resource (HR)

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.

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, safety measures, etc.

Scope of human resource

management (contd.)

Industrial relations aspect deals with union

management
bargaining,
actions, etc.

relations
grievance

like
and

collective
disciplinary

Difference between HRM and

PM
Better Performance leads to Job Satisfaction?
OR
Job Satisfaction leads to Better Performance?

HRM is proactive in nature while PM is reactive.

HRM is a resource-centered activity whereas PM is

a employee-centered activity.

HRM

emphasizes

on

flexible,

open-ended

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.

HRM seeks to develop the competencies of the

employees on a sustained basis while PM is a
regular,
function.

status

quobased

administrative

Human Resource Management

Performanc
e Growth

Qualities of an HR manager

Knowledge

Intelligence

Communication skills

Objectivity and fairness

Leadership and motivational qualities

Emotional maturity and

Empathy

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 (HPWS).

Growing need for measurement tools to evaluate HR

programmes.