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Module 1
HRM - Overview
• HRM- Meaning and definition
• Features of HRM
• Importance of HRM
• Historical development of HRM
• Functions of HRM
• Challenges to HR professional
HR definition
• HR have been defined as the total of
knowledge, skills, creative abilities,
talents, and aptitudes of the
individuals in the enterprises, along
with the values, attitude and behavior
of the individuals.
Management Definition

• Management is the process of

efficiently getting activities completed
with and through other people.The
management process includes
planning, organizing,
staffing,directing and controlling
activities that take place to
accomplish objectives.
HRM Definition
• “HRM is the planning, organizing,
directing, and controlling of the
procurement, development,
compensation, integration and
maintenance of human resources to the
end that individual, organizational and
societal objectives are accomplished”.
» Flippo
Features of HRM
1.HR management is concerned with
managing people at work
2.HRM is concerned with employees,
both as individuals as well as group.
3.HRM is concerned with helping the
employees to develop their
potentials and capacities to the
maximum possible extent.
Features of HRM

4.HRM is inherent in all organizations

5.HRM is of continuous nature
6.HRM attempts to get the willing
cooperation of the employees for the
attainment of the desired goals.
Nature of HRM
• Pervasive force
• Action oriented
• Individual oriented
• People oriented
• Future oriented
• Development oriented
• Integrating mechanism
• Comprehensive function.
• Auxiliary services
• Inter disciplinary functions
• Continuous function
Significance of HRM
• Attract and retain talent.
• Identify and place them correctly
• Train people for challenging roles
• Develop skills and competencies
• Promote team spirit
• Develop loyalty and commitment.
• Increase productivity and profits through
Good HR practices help motivation
• Improve job satisfaction
• Enhance standard of living
Secondary Objectives of HRM
Personal objective
Functional objective
Organizational objective
Societal objective
Objectives of HRM
• To help the organization reach its goals
• To employ the skills and abilities of the work
force efficiently
• To provide the organization with well trained
well motivated employees
• To increase to the fullest the employees job
satisfaction and self actualization
• To develop and maintain quality of work life
• To communicate HR polices to all employees
• To be ethically and socially responsive to the
needs of the society.
Historical development of

The oldest art and

the newest profession
Evolution of HRM




1900 1940 1980

Evolution of HRM
• The industrial revolution.
• Scientific management.
• Trade unionism.
• Human relations movement. Hawthorne
• Human resource approach.
Period Emphasis Status Roles
1920-30 Welfare mgmt Clerical •Welfare administrator
Paternalistic practices •Policeman

1940-60 Expanding the role to Administrative •Appraiser

cover labor welfare, IR •Advisor
and personal •Mediator
•Legal advisor
•Fire fighting
1970-80 Efficiency, Developmental •Change agent
effectiveness •Integrator
dimensions added •Trainer
emphasis on human
values aspirations, •Educator
dignity usefulness

1990 Incremental Proactive, •Developer

onwards productivity growth oriented •Counselor
•Problem solver
Functions of HRM
Key Functions
Human Resource Planning

Recruitment & Selection

Compensation & Benefits

Performance Appraisals

Training & Development

Session 2

Evolution of HRM
HRM model
HRM policies and procedures and
Personnel vs. Human
Resource Management
• Personnel • Human Resource
Management Management
• Personnel means • Management of
persons employed. employees’ skills,
PM is the knowledge, abilities,
management of
people employed. talents, aptitudes,
creative abilities etc.
• Employee is treated
as an economic man • Not only as economic
as his services are man but also as
exchanged for social and
wage/salary psychological being.
Personnel vs. Human
Resource Management
 Employee is viewed • Employee is treated
as a commodity or as a resource.
tool or equipment, • Employees are
which can be treated as a profit
purchased or used. centre and
• Employees are therefore, invests
treated as cost capital for human
centre and therefore resource
management development and
controls the cost of future utility.
Personnel vs. Human
Resource Management
 Employees are used • Benefit of the
mostly for organization, along
organizational with employees and
benefits. their family is
• Personnel function considered.
is treated as only an • HRM is a strategic
auxiliary. management
HRM Model
• Refer HRM by P L RAO Pg no 7
HRM policies , procedures
and programmes
• A policy is a plan of action or decision

• Brewster and rich bell “A set of

proposals and actions that act as a
reference point for managers in their
dealings with employees”
HRM procedure
• A procedure is a well thought out
course of action
• Prescribes a specific manner in which a
piece of work is to be done.
• Action guidelines (rules & regulations).
• Steps and personnel responsible for
implementing the policies
Need for HRM policies
• Minimize favoritism and discrimination
in treating the employees
• Ensure that the action will be continued
through the managers in key jobs
• Have standards of performance
• Create and develop employee
enthusiasm and loyalty
Coverage of HRM policies
• Social responsibility
• Employment practices
• Promotion policies
• Development policies
• Relational policies.
Formulating Policies
• Organizational policies
• Past experience of the organization
• Existing practices in the other organization of the same nature
or in the same geographical area or in the entire nation.
• Attitudes, philosophies of the management at various levels,
employees, trade unions etc.

• Objective or Purpose
• Economics
• Acceptability
• Semantics/ Tone/ Clarity
Changing role of HR in view of
social factors
• A large number of environmental factors
influence the work of HR MANAGER
Business External
environment uncontrollable

Internal / controllable
Micro: Macro:
Vision , mission
Suppliers Technological
Customers Economic
Govt Legal
Intermediaries Social
• Job of the HR manger is to balance the needs
of the external environment to the internal
• Social factors :unemployment, cutting down
of jobs comparison of the products offered
• Govt factors : reservations, different laws
• Workforce diversity: age, gender, ethnicity
etc. young vs. old employees, minority groups