HUMAN RESOURCE

MANAGEMENT
Meaning and Definitions
Human Resources
1. Michael J.Jucius has defined human
resources as “a whole consisting of
inter-related, inter-dependent and
interacting physiological,
psychological, sociological and ethical
components”
2. From the national point of view,
human resources are knowledge,
skills, creative abilities, talents and
attitudes obtained in the population;
whereas from the view- point of the
individual enterprises, they represent
the total of the inherent abilities,
acquired knowledge and skills as
exemplified in the talents and aptitude
of its employees.
-Leon.C.Megginson
3. Human resources are human capital and are
categorized into intellectual capital, social
capital and emotional capital.
 Intellectual capital consists of specialised
knowledge, tacit knowledge and skills,
cognitive complexity and learning capacity.
 Social capital is made up of network of
relationships, sociability and trustworthiness.
 Emotional capital consists of self-confidence,
ambition and courage, risk-bearing ability
and resilience.
- Sumantra Ghosal
Human Resource Management

1. “Personnel management is the

planning, organising, directing and
controlling of the procurement,
development, compensation,
integration, maintenance and
separation of human resources to the
end that individual, organisational and
social objectives are accomplished”.
-Flippo
2. HRM is defined as the part of
management which is concerned with
people at work and with their relationship
within an enterprise. Its aim is to bring
together and develop into an effective
organisation of the men and women who
make up an enterprise and having regard
for the well-being of the individuals and
of working groups, to enable them to
make their best contribution to its
success.
-National Institute of Personnel Management (NIPM)
3. HRM is concerned with the people
dimension in management. Since every
organisation is made up of people,
acquiring their services, developing their
skills, motivating them to higher levels of
performance and ensuring that they
continue to maintain their commitment to
the organisation are essential to
achieving organisational objectives. This
is true, regardless of the type of
organisation – government, business,
education, health, recreation or social
action.
- Decenzo and Robbins
DIFFERENCE BETWEEN PERSONNEL
MANAGEMENT AND HUMAN RESOURCE
MANAGEMENT

 3 main differences,
1. HRM emphasizes not just on rule
and contract but beyond them
2. HRM focuses on strategy
3. It focuses on individualization of
employee relations
DIMENSION PM HRM
Employment contract written Beyond it
Rules Devising Do outlook
Guide to mgt action Procedures Business need
Behaviour referent norms Values/mission
Mgrl. task monitoring nurturing
Key relations Labour mgt customers
initiatives piecemeal Integrated
Speed of decision slow Fast
Mgt role transactional Transformational
Skill acquisition T&D Learning orgn.
communication indirect Direct
Reward mgt. Std job evaluation Performance related
Prized mgt skills negotiation Facilitation
OBJECTIVES OF HRM
 The primary objective - to ensure the availability of
right people for right jobs
Sub objectives are,
1. To provide competent and motivated employees to
achieve goal
2. To utilise human resources effectively
3. To increase employee’s job satisfaction and self
actualisation
4. To develop and maintain QWL
5. To maintain ethical policies and behaviour
6. To maintain cordial relations between employees and
management
7. To reconcile individual/group goals with organisational
goals
HRM Objectives Supporting functions
1. Social objectives 1. Legal compliance
2. Benefits
3. Union-mgt relations

2. Orgnl. Objectives 1. HR Planning

2. Employee relations
3. Selection
4. T&D
5. Appraisal
6. Placement
7. Assessment

3. Function objectives 5,6,7 of above

4. Personal objectives 4,5,6,7 and

compensation
SCOPE OF HRM

ACQUISITION
CONTROL
HR planning
HR audit,
Recruitment
HR accounting
Selection
HRIS
Placement
HRM
MAINTENANCE
Remuneration DEVELOPMENT
Motivation Training
Health & safety Career development
Social security Internal mobility
Industrial relations
Performance appraisal
FUNCTIONS OF HRM
 1. MANAGERIAL FUNCTIONS
 2. OPERATIVE FUNCTIONS
 Planning

1. MANAGERIAL Organising
FUNCTIONS

Directing

Controlling
 Job analysis, HR planning,
recruitment, selection, placement,
induction, transfer, promotion,
separation

PA, Trg., Exe Devt.,

Procurement career planning and devt.

Job evaluation, wage and salary

OPERATIVE Admn., bonus and incentives,
FUNCTIONS Development
payroll

Motivation, JS,greivance
Compensation
redressal, collective bargaining,
Conflict Mgt., emp participation,
Integration discipline

Maintenance Health, safety, social security,

Welfare schemes, personnel
records, research and audit
EVOLUTION OF HRM
Period Devt. Outlook Emphasis Status
status
1920-30s Beginning Pragmatism Statuory, Clerical
of capitalists welfare,
paternalism
40s-60s Struggling Technical, Introduction Administ
for legalistic of rative
recognitio techniques
n
70s-80s Impressin Professional Regulatory Manager
g with , legalistic, conformance ial
sophisticat impersonal , standards
ion on functions
1990s Promising philosophica Human executiv
l values, e
productivity
thru people
ENVIRONMENT OF HRM
 Affects HR activities
 Two types: internal and external
environments
 INTERNAL ENVIRONEMENT
1. Unions
2. Organisational culture and conflict
3. Professional bodies
 EXTERNAL ENVIRONMENT
1. Economic
2. Political : legislature, executive,
judiciary
3. Technological
4. Demographic
Strategic HRM
 A strategic look at HR functions in line
with the business functions of an
organisation.
 1. analyse the opportunities and
threats in the external environement
 2. formulate strategies using SWOT
 3. Implement
 4. evaluate and control activities to
ensure the achievement of objectives.
HUMAN RESOURCE POLICIES
 Policy is a plan of action
 It is a statement of intention committing
the management to a general course of
action
 Expresses the philosophy and principles
 Different from principle or objective
 Objective : it is the intention of the
company to provide a safe plan and a
healthy working condition
 But policy statement is very specific.
 Eg: to institute every practical
method for engineering safety into
our process and equipment, to
provide protective clothing where
necessary, to train employees in safe
operating procedures.
 But not to spell out procedure. The
procedure is a method for carrying
out a policy.
 Policy of hiring people
 Policy on terms and conditions of
employment
 Policy on medical, housing, transport,
uniform, allowances, training and
development
Formulating policies
 5 sources
1. Past practice
2. Practices in rival coys
3. Attitudes and philosophy of founders
and top mgt.
4. Attitudes and philosophy of MM,LM.
5. Knowledge and experience gained
 Stable, but not rigid.
 Reflect the goals and values of the
organization.
Principles
 Policy is a guideline and principle is
the truth based on research.
Principles guide to formulate policies,
programmes, procedures and
practices.
HR principles are,
1. Principle of individual devt.
2. Principle of scientific selection
3. Principle of free flow of commn.
4. Principle of participation
5. Principle of fair remuneration
6. Principle of incentive
7. Principle of dignity of labour
8. Principle of labour mgt cooperation
9. Principle of team spirit
10. Principle of contribution to national
prosperity
HR COMPETENCY MODEL
BUSINESS MASTERY
•Business acumen
•Customer orientation
•Knowledge
•External relations

PERSONAL CREDIBILITY
•Competence
•Credentials
•Trust
•Ethical conduct
HR MASTERY •courage
•Staffing CHANGE MASTERY
•PA •IP skills
•Reward sys •Problem solving
•Commn. •Reward sys
•Orgn. design •innovation
Skills of a HR manager

 technical, cognitive and interpersonal

skills
 common, empathy, tolerance,
pleasant, confident, love
 Know HR policies, practice
 Multi-knowledgeable ,
 Play strategic role