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DEFINITIONS: –
Human resources management is the art of procuring, development
retaining the employee in the organization by integrating both the
individual goals as well as the organizational goals.”

“Human resource management is a management function that helps

managers plans, recruits, select, train, develop, remunerate and
maintain member for an organization.”

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NATURE: –
Concerned about people.
Application of management functions and principles.
Applicable to all business and non-business organisation.
Decision should be
•integrated
•consistent
•influence rhe effectiveness of an organisation

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 Nature of
HRM
Prospects Employee
of hrm Hiring

Human
Resources
Employee&
Industrial management Execution
relations remuneration

Employee Employee
Maintenance Motivation

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COMPONENT: –
Recruitment
Recruitment
&
& Selection
Selection

Labor
Labor Training
Training &
&
Relations
Relations Development
Development

Performance
Performance
Pay
Pay &
& Appraisal
Appraisal &
&
Rewards
Rewards Feedback
Feedback

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BASIS PERSONNEL HUMAN RESOURCE
MANAGEMENT MANAGEMENT

Employment contract Stick to Terms And Comparative flexible

condition change according to
need and time

Rules& regulation Clear defined HR Can do outlook

policies and rules ,impatient with rules
and policies.
Guide to the Action as per laid down Identify the business
management need and act
accordingly
Behavior referent Need oriented End oriented

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BASIS PERSONNEL HUMAN RESOURCE
MANAGEMENT MANAGEMENT

Managerial task Monitoring Nurturing

Key relation Treated as tools Treated as customer

Incentives Piece- meal Integrated

Speed of decision Slow fast

Management Role Transactional Transformational

Communication Indirect Direct

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Pay Retention Job evaluation Performance related
Fix grades

Structure Narrow structure Broad structure

Focus Focuses on Focuses on both

organizational goals individual and
organizational goals

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 PERSONAL
OBJEC-
-TIVES

FUNCTIONAL
OBJECTIVES

ORGANISATIONAL
OBJECTIVES

SOCIETAL OBJECTIVES

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HRM OBJECTIVES SUPPORTING FUNCTIONS

1. Societal objectives  Legal compliance

 Benefits
 Union management relation

2.Organisational objectives  Human resources planning

 Employee relations
Selection
Training and development
Appraisal
Placement
Assessment

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3.funtional
 objectives  Appraisal
Placement
Assessment

4.Personal objectives  Training and development

 Appraisal
Placement and compensation
Assessment

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HRM Environment can be classified into –
 External forces
 Internal forces

External Factors are those factors which are beyond the control of
organization. Some of the factors affecting HRM decisions are:

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Economic factors : Economic factors like boom, recession,
depression will also affect HRM decisions.

 Competitors : Competitors policies like salary, wages will affect

HRM decisions.

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Technological forces : Technology changes at a very fast speed
and new people having the required knowledge are required for
the company. Here HR manager has to make a decision whether
to train existing people or to recruit.
Technology also leads to decrease in dependence on manpower.

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Internal factors are those factors which are present inside the
organisation, organisation do have partial or full control over
these factors. Some of the internal factors areas follows:
Recruitment : The recruitment policy of an organisation specifies the objectives of
recruitment and provides a framework for implementation of recruitment programme.
It may involve procedures of filling up vacancies with best qualified people.

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 1. Organizational Objective
2.Government policies.
3.Preferred sources of recruitment.
4.Need of the organization.
5.Recruitment costs and financial implications.

Type of work : Type of work should be considered by HR manager to know whether

to employee skilled, unskilled or semi skilled personnels.

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Cost : Organizations always try to employ that source of recruitment
which will bear a lower cost of recruitment to the organization for each
candidate.
Growth and expansion : Organization will employ or think of
employing more personnel if it is expanding it’s operations.

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