HUMAN RESOURCE

MANAGEMENT
MBA-G510
By
DR. ANUBHA DADHICH
 BACKGROUND
Human Resource Management (HRM) :
approach to managing people in any
organization.

Concerned with the people dimension in

management of an organization.

Organization is a body of people.

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 Significant activities
Acquisition
Development of skills,
Motivation for higher levels of attainments,
PMS
IDP/PDP
IR issues
Pay/health benefits/pension plans

All these activities fall in the domain of HRM

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 Meaning
Human Resource Management is responsible
for maintaining good human relations in the
organization.

It is also concerned with development of

individuals and achieving integration of goals
of the organization and those of the
individuals.

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 Definitions.1
Northcott considers human resource management as
an extension of general management, that of
prompting and stimulating every employee to make
his fullest contribution to the purpose of a business.
Human resource management is not something that
could be separated from the basic managerial
function. It is a major component of the broader
managerial function.

French Wendell, defines Human resource

management as the recruitment, selection,
development, utilization, compensation and
motivation of human resources by the organization.
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 Definitions2
Scott, Clothier and Spriegel have defined
Human Resource Management as that branch
of management which is responsible on a
staff basis for concentrating on those aspects
of operations which are primarily concerned
with the relationship of management to
employees and employees to employees and
with the development of the individual and the
group.

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 Definitions3
According to Edwin B. Flippo Human
resource management is the planning,
organizing, directing and controlling of the
procurement, development, resources to the
end that individual and societal objectives are
accomplished.
This definition reveals that human resource
(HR) management is that aspect of
management, which deals with the planning,
organizing, directing and controlling the
personnel functions of the enterprise.
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 HR FOR ALL MANAGERS
Lawrence Appley remarked: Management is
personnel administration.
Management is concerned with the efficient
and effective use of both human as well as
non-human resources.
Human resource management is only a part
of the management process.
Human resource management is inherent in
the process of management.
This function is performed by all the
managers
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 Nature Of The Human Resource
Management..1
Inherent Part of Management
Pervasive Function
Basic to all Functional Areas
People Centered:
(i) Blue-collar workers (i.e. those working on
machines and engaged in loading, unloading etc.)
and white-collar workers (i.e. clerical employees),
(ii) Managerial and non-managerial personnel,
(iii) Professionals (such as Chartered Accountant,
Company Secretary, Lawyer, etc.) and
nonprofessional personnel.
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 Nature Of The Human Resource
Management.2
Continuous Process
Based on Human Relations
Every person has different needs, perceptions
and expectations.
Due attention to these factors.
Require human relations skills to deal with the
people at work.
Human relations skills are also required in
training performance appraisal, transfer and
promotion of subordinates.

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 Personnel Management VS
Human Resource Management.1
Human Resource Management (HRM) differs
from Personnel Management (PM) both in
scope and orientation.
HRM views people as an important source or
asset to be used for the benefit of
organizations, employees and society.
Human resource management aims at
policies that promote mutuality-mutual goals,
mutual respect, mutual rewards and mutual
responsibilities.
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 Personnel Management VS Human
Resource Management..2
There are several similarities between Human
Resource Management (HRM) and Personnel
Management (PM)

(a) Both models emphasize the importance of

integrating personnel/HRM practices with
organizational goals.

(b) Both models vest Personnel/HRM firmly in line

management.

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 Personnel Management VS Human
Resource Management..3
(c) Both models emphasize the importance of
individuals fully developing their abilities for their
own personal satisfaction to make their best
contribution to organizational success.

(d) Both models identify placing the right people

into the right jobs as an important means of
integrating personnel/HRM practice with
organizational goals

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 Objectives
The objectives of Human Resource Management, in
an organization,:
is to obtain maximum individual development,
desirable working relationships between employers
and employees
employees and employees, and
to affect the moulding of human resources as
contrasted with physical resources.

The basic objective of human resource management is

to contribute to the realization of the organizational
goals.
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 HR Activities.1
(i) Human Resource Planning, i.e., determining the
number and kinds of personnel required to fill various
positions in the organization.

(ii) Recruitment, selection and placement of personnel, i.e.,

employment function.

(iii) Training and development of employees for their

efficient performance and growth.

(iv) Appraisal of performance of employees and taking

corrective steps such as transfer from one job to another.

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 HR Activities.2
(v) Motivation of workforce by providing
financial incentives and avenues of promotion.

(vi) Remuneration of employees. The

employees must be given sufficient wages
and fringe benefits to achieve higher standard
of living and to motivate them to show higher
productivity.

(vii) Social security and welfare of employees.

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 Functions
The main functions of human resource
management are classified into two categories:

(a) Managerial Functions and

(b) Operative Functions

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 Planning
Planning function of human resource
department pertains to the steps taken in
determining in advance personnel
requirements, personnel programmes,
policies etc.
After determining how many and what type of
people are required, a personnel manager
has to devise ways and means to motivate
them.

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 Organization
Human resource manager has to organize the operative
functions by designing structure of relationship among
jobs, personnel and physical factors.
So as to have maximum contribution towards
organizational objectives.

(a) preparation of task force

(b) allocation of work to individuals
(c) integration of the efforts of the task force
(d) coordination of work of individual with that of the
department.

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 Directing
Directing is concerned with initiation of
organized action and stimulating the people to
work.
The personnel manager directs the activities
of people of the organization to get its function
performed properly.
A personnel manager guides and motivates
the staff of the organization to follow the path
laid down in advance.

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 Controlling
It provides basic data for..
establishing standards,
makes job analysis and
performance appraisal, etc.

All these techniques assist in effective control

of the qualities, time and efforts of workers.

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 Operative Functions1
1. Procurement of Personnel : It is concerned with
the obtaining of the proper kind and number of
personnel necessary to accomplish organization
goals.

It deals specifically with such subjects as the

determination of manpower requirements, their
recruitment, selecting, placement and orientation,
etc.

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 Operative Functions.2
2. Development of Personnel : Development has to
do with the increase through training, skill that is
necessary for proper job performance.

In this process various techniques of training are

used to develop the employees.

Framing a sound promotion policy, determination of

the basis of promotion and making performance
appraisal are the elements of personnel
development function.

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 Operative Functions.3
3. Compensation to Personnel : Compensation means
determination of adequate and equitable remuneration
of personnel for their contribution to organization
objectives.
To determine the monetary compensation for various
jobs is one of the most difficult and important function of
the personnel management.
A number of decisions are taken into the function, viz.,
job-evaluation, remuneration, policy, inventive and
premium plans, bonus policy and co-partnership, etc.
It also assists the organization for adopting the suitable
wages and salaries, policy and payment of wages and
salaries in right time.
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 Operative Functions.4
4. Maintaining Good Industrial Relation

5. Record Keeping

6. Personnel Planning and Evaluation

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 To Summarize
The attainment of organizational objectives
depends, to a great extent, on the way in which
people are recruited, developed and utilized by
the management.

Therefore, proper coordination of human efforts

and effective utilization of human and others
material resources is necessary.

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