Definition, Evolution, Objectives,

Scope and Functions of HRM

Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA,
PhD(Mgt)
Professor
Al-Qurmoshi Institute of Business
Management, Hyderabad - 500005

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

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

Evolution of HRM
Concept
Labour / Manpower denotes physical

abilities & capacities of employees

commodity - wages based on demand &
supply
Personnel persons employed in service
employees as a whole
HR- denotes resources of all the people who
contribute their services to the attainment of
organisational goals

Evolution of HRM in India

Welfare (1920s-1930s)

Administration (1930s1940s)

Employee relations (19401960s)

Functional expertise (1970s1980s)

Business partner / player

(1990s)

Importance of HRM
HR most important resource
Put other resources to proper use
Help transform lifeless factors of production

into useful products

Capable of enlargement produce
extraordinary things when inspired
Can help organisation achieve results quickly,
efficiently & effectively

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

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

Human Resource Management

Functions

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