INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT

I am convinced that nothing we do is more

important than hiring and developing people. At
the end of the day you bet on people, not on
strategies.
Lawrence ,GE
The key for us, number one, has always been
hiring very smart people.
Bill Gates, Microsoft

Definition
Human resource management is that part of
management concerned with people at work and
with their relationships within the organisation. It
seeks to bring together men and women who make
up an enterprise, enabling each to make his own
best contribution to its success both as an
individual and as a member of a working group.

-National Institute of Personnel Management of

India

History of HRM
Scientific Management Approach (mid 1900s)
F. W. Taylor

Study of time and motion

one-best-way to accomplish the task
Piece-rate system
Welfare programmes
Failed to bring behavioural changes and increase in
productivity

Human Relations Approach (1930-40)

Hawthorne experiment
Effect of social and psychological factors
Relations and respect High Productivity

History of HRM
Human Resources Approach (1970s)
Principles
Employees are assets
Policies, programmes and practices - help in work and
personal development
Conducive environment

Objectives/Purpose/Scope
To attain maximum individual development
To mould human resources effectively
To establish desirable working relationships
To ensure satisfaction of the workers
To establish and maintain a product and self
respecting relationship
To help organisation to achieve its goals
To maintain high morale and good human
relations

Challenges of HRM
Individuals differ from
one another
Customization of
stimulation and
motivation
Demanding personnel

Difference between HRM and

Personnel Management
HRM

Personnel Management

-Proactive Function
-HRM is the latest development
- Attached more importance to abilities
for employees
- -Works on basis of Integrated
initiatives
- -Speed of decision making is fast
- -Emphasises on the satisfaction of
higher needs for motivating people
- -Uses latest techniques for T&D

-Reactive Function
-PM precedes HRM
-Attached high importance to rules,
evaluation is within the framework of rules
-Works on the basis of piecemeal
initiatives
-Speed of decision making is slow
-Emphasis on economic rewards and
traditional job design for motivating people
- Uses outdated methods for T&D

Functions of HRM
Managerial Function
Operational Function
Managerial Functions
-Planning
-Organizing
-Staffing
-Directing
-Controlling

Functions of HRM
Operational
Employment

HR Development Compensation Mgt

Employee Relation

HR Planning Performance Appraisal Job Evaluation

Recruitment

Training

Wage and Salary Admn

Selection Management Development Incentives

Placement
Career Planning and DevelopmentBonus
Induction

Fringe Benefits

Emerging role or HRM

Value of Human Resource
Competitive advantage
Human Resource
Accounting It is
measurement of the cost
and value of people for an
organization

Challenges before HR Manager

Challenges relating to Recruitment, selection and
development of manpower.
Challenges relating to Industrial relations
Challenges relating to provision of welfare facilities
Challenges relating to manpower management
Challenges relating to expansion, modernisation
and automation
Challenges relating to Trade union activities
Challenges relating to execution of personnel
policies

Challenges to HR Professionals
Worker productivity
Quality improvement
The changing attitudes of
workforce
The impact of the government
Quality of work-life
Technology and Training

Some points to refresh

Mechanistic Vs organic organization

Formal and Informal Organizations
Tall and Flat Organizational Structures
Responsibility, Authority and Accountability
Line and Staff Functions