What is Human Resource

Management (HRM)?
Human

resource management is the

effective use of human resources in order
to enhance organizational performance
HRM is the art of procuring, developing
and maintaining competent workforce to
achieve goals of an organisation in an
effective and efficient manner

Human Resources
HR is the total knowledge, skills, creative

abilities, talents and aptitudes of

an
organisations workforce as well as the values,
attitudes and beliefs of the individuals
involved

Meaning of HRM
To Select,
Develop,
Motivate and
Maintain human resources

Definition of HRM

It is define as a process of
bringing people and organization
together so that the goals of each
meet.

Nature of HRM
Action oriented, focus on
objectives
Development oriented
Continuous function
Future oriented
HRM is a process
People oriented
Multidisplinary

Broader Function
Human Resource Management
is a comprehensive function
because it is about managing
people in the organization. It
covers all types of people in the
organization from workers till
the top level management

People Oriented
Human resource is the
core of all the processes
of
human
resource
management. So HRM is
the process which brings
people and organizations
together so that their
goals can be achieved.

Action Oriented
Human resource management
believes in taking actions in
order to achieve individual and
organizational goals rather than
just keeping records and
procedures.

Development oriented
Development of
employees is an
essential function of
human resource
management in order
to get maximum
satisfaction from their
work so that they give
their best to the
organization.

Continuous Function

As human resource is a living factor among all

factors of production therefore it requires
continuous improvement and innovations in
order to get excellence. So it requires a constant
alertness and awareness of human relations and
there importance in every day to day operations.

Future Oriented

HRM is very important activity

which helps organization to
achieve its objectives in
future by providing well
motivated and competent
employees.

Conclusion
Broader Function
Think tank
Increase company performance.
Optimum use of human resource

Importance of HRM
Put other resources to proper use
Significance for an organisation
Professional significance
Social Significance
Help transform lifeless factors of production

into useful products

Can help organisation achieve results quickly,
efficiently & effectively

EVOLUTION OF INDUSTRIAL
REVOLUTION
(1) Industrial Revolution:
a. Adam Smith: specialization and division

of labor.
b. Robert Owens: Pioneer of HRM,
performance appraisal and pay for
performance (fair treatment of
employees)

HRM in India
References about Personnel management in

Artasastra which indicates job description of

supervisor and performance linked pay for
gold smiths
Tradional craftsman goods shipped to Europe
Master servant relationship in 17th centuary

Evolution
1828-Robert Owen father of co-operative

movement wrote a book titled as New view

society-Improving working conditions and work
life of labourers
After 1850 British rulers institutionalized for
running the government which leads to personnel
management system
1890 NMLokhande
1911 F W Taylor
1921-Hawthorn studies
1931-Role of Royal commission of labour
Industrial revolution
Awakwning of labour
Government attitude towards labour

1941-First tripartite labour conference

1948-Factories Act
Cultural and social changes
Changes in social value of labour
Changes in managerial value
1950-1969
III five year plans-Private and public sector

projects
1970- Militancy in textile sector in Mumbai
1980-Productivity agreements
1990Personnel management and IR in public
sector undertakings

After 1990 the emphasis is shifted to

human values and productivity through

people
Role of Public sector companies like BHEL,
SAIL and SBI
1995 Progressive efforts of in HR
1997- Focused on product and customer
Leading to customer satisfaction, bench
marking, Application TQM, core
competence, empowerment and learning

Transition of HRLabour relatios

Personnel management
Human resources management
Human capital management
Strategic HRM

HRM Environment - External

Technology

Professionalism

Economic

HRM
Social & cultural

Political & legal

Union

HRM Environment - Internal

Policies

HRM
Mission

Organisational
Conflict

Objectives of HRM
Maximize the return on investment

from the organization's human capital

and minimize financial risk
To align the capabilities and
behaviors of employees with the
short-term and long-term goals of the
organisation

Objectives of HRM
Societal objectives

To be ethically & socially responsible to the needs of

the society while minimizing the negative impact of
such demands upon the organization
Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
Functional objectives
To maintain the departments contribution at a level
appropriate to the organizations needs
Personal objectives
To assist employees in achieving their personal goals
in a manner that their personal goals enhance the
individuals contribution to the organization

Human Resource Management

Functions

On October 3, 2003, Anant Dalvi and Akhtar Khan, who worked

as contract workers in Tata Electric Company until they were
laid off in 1996, doused themselves with kerosene and set
themselves ablaze even as their co-workers protested before
the companys offices. While Dalvi died on the spot, Khan died
a few days later. The Tata Electric Company said they were no
longer on their payroll and were not permanent workers.
Employees union had taken up their case and filled petition in
the Labour Court before their contracts were terminated. The
court directed the company not to terminate their services
without following the due process of law. Despite this their
services were terminated on June 30, 1996. The company union
promised the workers that they would renegotiate. Yet on the
night before they killed themselves when Khan and Dalvi spoke
to the union leader Shinde, they were told that nothing more
could be done for them. It is this that led them to take their
lives. Dalvi has been in service as a peon for17 years and Khan
had been employed for 19 years. But their services were not
regularized. Such workers draw salary much less than the
permanent employees. This is an example of the problem that
comes under the purview of Human Resource Management- the
main concept elaborated in this chapter.

Objectives of HRM

Human capital : assisting the organization in obtaining the right

number and types of employees to fulfill its strategic and
operational goals
Developing organizational climate: helping to create a climate in
which employees are encouraged to develop and utilize their skills
to the fullest and to employ the skills and abilities of the workforce
efficiently
Helping to maintain performance standards and increase
productivity through effective job design; providing adequate
orientation, training and development; providing performancerelated feedback; and ensuring effective two-way communication.
Helping
to
establish
and
maintain
a
harmonious
employer/employee relationship
Helping to create and maintain a safe and healthy work
environment
To communicate HR policies to all employees.

HRM Objectives
HRM Objectives
Societal
Objectives

Supporting Functions
Supporting
Functions
Legal compliance
Benefits
Union- management
relations

Organizational Objectives

Human Resource Planning

Employee relations
Selection Training and
development Appraisal
Placement Assessment

Functional Objectives

Appraisal Placement
Assessment

Personal Objectives

Training and development

Appraisal Placement
Compensation Assessment

HRM in Global Setting

Human resource Planning

Recruitment
Staffing
Employee orientation
Performance appraisal
Training & development
Compensation

Scope of HRM
Prospect
s of HRM

Industria
l
Relation
s

Nature
of HRM

HRM

Employee
Maintenanc
e
Employe
e
Motivatio
n

Very vast
Covers all major
Employe
e
Hiring

Employe
e&
Executiv
e
Remune
ration

activities in the
working life of a
worker - from
time an individual
enters into an
organization until
he or she leaves,
comes under the
purview of HRM

Recruitment

Recruitment
The process by which a job vacancy

is identified and potential employees are

notified
The nature of the recruitment process
is regulated and subject to employment
law
Main forms of recruitment: through
advertising in newspapers, magazines,
trade papers and internal vacancy lists,
company websites

Recruitment
Job description outline of the role of

the job holder

Person specification outline of the
skills and qualities required of the post
holder
Applicants may demonstrate their
suitability through application form, letter
or curriculum vitae (CV)

Selection

Selection
The process of assessing candidates and

appointing a post holder

Applicants short listed most suitable
candidates selected
Selection process varies according to
organisation

Selection
Interview most common method
Psychometric testing assessing the

personality of the applicants will they fit in?

Aptitude testing assessing the skills of
applicants
In-tray exercise activity based around what
the applicant will be doing, e.g. writing a letter to
a disgruntled customer
Presentation looking for different skills as well
as the ideas of the candidate

Employment
Legislation

Discipline

Discipline
Firms cannot just sack workers
Wide range of procedures and steps in

dealing with workplace conflict

Informal meetings
Formal meetings
Verbal warnings
Written warnings
Grievance procedures
Working with external agencies

Development

Development
Developing the employee can be regarded as

investing
in a valuable asset
A source of motivation
A source of helping the employee fulfil potential

Training

Training
Similar to development:
Provides new skills for the employee
Keeps the employee up to date with changes in
the field
Aims to improve efficiency
Can be external or in-house

Rewards Systems

Rewards Systems
The system of pay and benefits used by the

firm to reward workers

Money not the only method
Fringe benefits
Flexibility at work
Holidays, etc.

Trade Unions

Trade Unions
Importance of building relationships with

employee representatives
Role of Trade Unions has changed
Importance of consultation and negotiation
and working with trade unions
Contributes to smooth change
management and leadership

Productivity

Productivity
Measuring performance:
How to value the workers contribution
Difficulty in measuring some types of output
especially in the service industry
Appraisal
Meant to be non-judgmental
Involves the worker and a nominated appraiser
Agreeing strengths, weaknesses and ways forward to

help both employee and organisation

Motivation
Motivating employees to perform up to their

potential is the key to maintaining a

productive, successful business
Ways in which you can motivate employees
Interact - Talk to your employees regularly
Recognition & Appreciation - A job well done
should be appreciated and encouraged
Pay them Right - Pay employees for what they
are worth and they will be happy to work.
New challenges - Give employees new and
interesting challenges to keep them stimulated
and learning