Human Resource

“A whole consisting of interrelated, interdependent and

interacting physiological, psychological, sociological and ethical
components.”
---Michael J.Jucious

Human Resource represent the total of the inherent abilities,

acquired knowledge and skills as exemplified in the talents and
aptitude of its employee”

“Human Resource may be considered as Human Capital,

comprising of intellectual capital, social and emotional capital.”
Intellectual Capital
Specialized knowledge, tacit knowledge and skill, and learning capacity.
Social Capital
Network of relationships, sociability and trust-worthiness.
Emotional Capital
Self-confidence, ambition and courage and risk bearing ability and resistance
 Human Resource Department
HRM is a process for Making efficient and effective use of human
resource so that the set goals are achieved.

“HR is concerned with the people dimension in management.

Since ever organization is made of people, acquiring their
services, developing their skill, motivating them to higher levels
of performance and ensuring that they continue to maintain their
commitment to the organization are essential to achieving
organizational objectives”
---Deceuzu and Robbins
“HRM is that part of management which is concerned with people
at work and with their relationship within and enterprise. Its aim is
to bring together and develop into effective organization of men
and women who make up an enterprise and having regard for the
well-being of the individual and of the working group, to enable
them to make and the best contribution for its success.”
--The National Institute of Personnel Management of India
 Who Perform the Human Resource functions?
Small Organization Medium& large Organization

Operating Manager HR Generalist HR Specialist

Operating Manager

Operating Manager: Operating Manger who manages people directly

involved with the production of an organizations product or service (e.g.,
production manager in a manufacturing plant,laon manager in a bank).
HR Generalist: Person who devotes a majority of working time to
human resource issue but does not specialize in any specific areas.

HR Specialist: These specialist are trained in one or more specific areas

of human resource management (Labor Relation Specialist, Wage &
salary specialist)
 HRM Objectives

1 Societal objectives

• Societal objectives of HRM make sure that the

organization is socially and ethically responsible

• Minimizing negative impact of societal demands on

organizations

• For example: Laws forces organizations to be ethical in

recruitment, to minimize the discrimination against
hiring based on ethnicity, race, and religion etc.
 2. Organizational objectives
--To determine the role of HRM in organizational effectiveness
--Its purpose is to assist/serve organization
--HR department also serve other departments

3. Functional objectives
--To maintain department contribution in organizational effectiveness
-- HR department services must fit into the organizational needs

4.Personal objectives
--To assist employees in achieving their personal/individual goals
--Maximum contribution to organization
--Personal objectives are achieved when employees are satisfied,
motivated and retained
Satisfied employees =excellent services=excellent organizational performance
 Function of HRM
(1) Specific Service
•Maintaining employee record
•Handling initial phase of
employee of orientation

Human
Resource (2) Advice
Operating
•Disciplinary
Department Manager
matters
•Equal employment
opportunity matter

(3)Coordination
•Performance appraisal
•Compensation matter
 Human resource function
(1) Human resource planning, recruitment and selection
A. Conducting job analysis to establish the specific requirement of
individuals jobs within the organization.
B. Forecasting the human resource requirement the organization need
to achieve its objectives.
C. Developing and implementing a plan to meet these requirements.
D. Recruiting the human resources the organization requires to
achieve its objectives
E. Selecting and hiring human resources to fill specific jobs
within the organization
(2) Human Resource development
A. Orienting and training employee
B. Designing and implementing management and organization
development program.
C. Building effective team within organizational structure.
D. Designing system for appraising the performance of individual
employee
E. Assisting employees in developing career plan.
 (3) Compensation and Benefits
A. Designing and implementing compensational and benefit
system for all employees.
B. Ensuring that compensation and benefits are fair and
consistent.
(4) Safety and health
A. Designing and implementing programs to ensure employee
health and safety.
B. Providing assistance to employees with personal problem
that influence their work performance.
(5)Employee and labor relation
A. Serving as an intermediary between the organization and its
unions
B. Designing discipline and grievance handling system
(6) Human Resource Research
A. Providing human resource information base
B. Designing and implementing employee communication
system
 Challenges for Human Resource Manger
(1) Diversity in the workforce
(2) Regulatory change
--Safety and health--Equal employment Opportunity
--Pension reform--Environment--Quality of work life
(3) Structural Changes to Organization
Downsizing
Downsizing is laying off large number of managerial and other
employee.
Outsourcing :Outsourcing is subcontracting work to an outside
company that specializes in that particular type of work
(Retirement plan administration, Management Development
Administration),
Rightsizing :Rightsizing is the continuous and proactive
assessment of mission-critical work and its staffing
requirements.
Reengineering: Reengineering is a fundamental rethinking and
radical redesign of business process to achieve
dramatic improvement in cost, quality, service and speed.
(4) Technological and managerial changes within organization

Electronic Human Resource (eHR):Payroll system where

employees input hours worked and request for vacation
time and various aspects of benefit administration.
Telecommuting: Working at home by using an electronic linkup
with a central office.
Empowerment: Form of decentralization that involves giving
subordinates substantial authority to make decision.

Self-managed work team: Groups of peer that are responsible

for particular area or task.
 Human Resource Management tomorrow
--What are the goals of the organization over the next year,3
years ,5 years and 10 years?
--How would you describe the organization core business?
--How does your organization compare with competitors in
market share and customer service?
--Will the company be growing via merger and acquisition or
from internal growth?
--Will growth be local, national and local?
--Will growth be from expansion of current business or from
and expansion in scope?
--In stead of growth, will there be downsizing and if so why?
--What are the organization revenue objectives over the short
and long terms?
Model of HRM
 The Semantics
• There two terms

1. PM (Personnel Management )

2. HRM (Human Resource Management )

• PM and HRM are different in scope and orientation

• HRM is broad concept

• PM and HRD (Human Resource Development) are part of HRM

Dimensions PM HRM
1.Employment contract Care full delineation of written Aim to go behind contract
Differences Between HRM and PM
contracts

3.Guide to management action Procedures Business need

4.Behaviour referent Norms ,customs and practices Values and mission

5.Managerial task vis-à-vis Monitoring Nurturing

labor

6.Speed of decision Slow Fast

7.Management role Transactional Transformational leadership
8.Communication Indirect Direct
9. Prized management skills Negotiation Facilitation

10.Selection Separate ,marginal task Integrated, key task

11.Labour management Collective barraging contracts Individual contracts

12.Job categories and grade Many Few

13.Job design Division of labour Team work

14.Conflict handling Reach temporary truce Manage climate and culture
Dimensions PM HRM

15.Respect for employees Labour is used as tool which is Peoples are used as assets to be
Differences Between HRM and PM
spendable and replaceable used for the benefit of
organization

16.Shared interest Interest of organizations are Mutuality of interest

uppermost

17.Evolution Precedes HRM Latest in evolution of subjects

18.Locus of control External Internal

19.Oganization principles Mechanistic Organic
Top down Bottom-up
Centralized Decentralized

20.Key relations Labour Management Customers

21.Initiatives Piecemeal Integrated
22.Pay Job evaluation Performance related
23.Training and development Controlled accessed to courses Learning companies

Source: Aswathappa, 2008, p.7

Thanks to All