“Having good talent people in the organisation

was important yesterday, but today it is

critical !!”
 Unit 1: An Human
Resource Management
concept and context

Syllabus
 Concept of HRM
 Function of HRM
 Changing dimensions of HRM
 Changing role and challenges of HRM managers
 Essential skills for HR managers
 Purpose and structure of HR development
HRM as a shared functions
External and internal context of HRM
HRM in Nepalies context
 Human Resource
Management
Concept
Human Resource Management
(HRM) is concerned with
human dimension in
organizations.
The objective of HRM is to attain
maximum individual development,
desirable working relationship between
employers and employees and employees
and employees, and effective molding of
human resources as contrasted with
physical and other resources.
Major Definitions
“Human resource management refers
to the policies and practices one need
to carry out the ‘people’ or human
resource aspects of a management
position, including recruiting,
screening, training, rewarding and
appraising.”  Gary Dessler
“Human resource management is the
process of accomplishing
organizational objective by acquiring,
retaining, terminating, developing and
properly using the human resources in
organizations.”  Ivancevich,
Donnelly & Gibson
 Human Resource
Management
Concept
Human Resource Management
(HRM) is concerned with
human dimension in
organizations.
The objective of HRM is to attain
maximum individual development,
desirable working relationship between
employers and employees and employees
and employees, and effective molding of
human resources as contrasted with
physical and other resources.
Major Definitions
“Human resource management refers
to the policies and practices one need
to carry out the ‘people’ or human
resource aspects of a management
position, including recruiting,
screening, training, rewarding and
appraising.”  Gary Dessler
“Human resource management is the
process of accomplishing
organizational objective by acquiring,
retaining, terminating, developing and
properly using the human resources in
organizations.”  Ivancevich,
Donnelly & Gibson
 Concept of HRM
Two words : Human resource and management
So simply understanding it is the managing of
human resource in the organization.
Organization needs different resources (finance
resource, technological resource, etc.) to achieve
its goal.
Among them human resource is one of them.
With out human resource, no other resources have
use.
Means to bring the value of presence of other
resource resources also there is importance of
human resource.
So simply management is related to the five
basic functions.
Planning, organizing, staffing, leading, and
controlling.
And HRM is related to the policies and practices
involved in carrying out the ‘people’ or human
resource aspects of a management position,
including, training, rewarding, and appraising.
It is the process of acquiring, training, appraising,
and compensating employees, and of attending
to their labor relations, health and safety, and
fairness concerns.
 Human resources: Meaning

Human resources means the

collection of people and their
characteristics at work. These are
different and unique to an
organization in several ways.
 What is HRM?
 Human Resource Management is “the planning,

organizing, directing and controlling of the

procurement, development, compensation,
integration, maintenance and separation of human
resources to the end that individual, organizational,
and social objectives are accomplished.”
 Characteristics of HRM
• People oriented • Challenging
• Action- oriented function
• Individual- oriented • Science as well as
• Development – art
oriented • Staff function
• Continuous Function
• Future- oriented
CHARACTRISTICS OF HUMAN
RESOURCE MAMNAGEMENT
 Managing people at work
Management Function
Concerned with developing the
employees
Essential in all organizations
Continuous in nature
Flexible
Strategy focused
Universal function
Complex
Functions of human resource
management
Components of HRM/ Functions
of HRM

HRM
Functions
Human resource management
system
Every organization is established with
definite objectives.
And such organization has its own system
to achieve the objectives.
Production system, marketing system,
HRM system, etc.
HRM system, most important than of others
because in absence of this no other system
work properly.
HRM is a system composed of interrelated
and interacting parts to achieve desired
goals.
 Inputs Process
Output
• Skill and • Acquisition
• Goal
experience • Developme
Achievemen
• Policy and nt
t
goal of • Utilization
• QWL
organizatio • Maintenanc
• Ready to
n e
change
• Labor
• Productivity
union

Feed Back

Environmental Effect
• Internal Environment
• External Environment
1. Inputs
 This is the first component of HRM
system.
 It includes
a) Skills and experience of HR
b) Policies and goals of organization
c) Labor union
a) Skills and experience of HR
 In the HRM, skills and experience of HR is
used initially at inputs.
 This includes knowledge, experience,
tactfulness (cleverness), honesty of
employees.
 What type of knowledge, experiences,
skills, etc are needed, that type of
knowledge, skills, experience should be
used as input.
b) Policies and objectives of
organization
HR should be used according to the policies
and objectives of the organization.
So in HRM system policies and objectives of
the organization should be included as
input.
This also includes goals and strategies
(long term plans).
c) Labor union
Today in this democratic age, labor union is
considered as one of the important part.
In HRM, labor unions make great
effectiveness.
Today while managing human resources,
the ideas and values of labor unions should
be considered more importantly.
2) Process
It is the second step of HRM system.
Most important part of HRM system.
Human resource manager changes and
develops the knowledge, skills, capacity, of
the human resources (employees)
according to the need of the organization.
This includes the acquisition,
development, utilization and
maintenance of human resources in the
organization.
a) Acquisition
 To achieve the goals of the organization,
HR managers need to acquire excellent
i.e. high quality of HR.
 Human resources are acquired through
recruitment, selection, orientation and
socialization.
 These all programs of recruitment,
selection, etc should be run in effective
way.
 Then only right man in right place in
right time is possible.
b) Development
According to the necessity of the
organization, the abilities and skills of the
employees should be developed.
For this HR manager should run the
following programs:
i. Training
This include the skill development
programs of the employees.
ii. Management development
 Developing the managerial skills of
supervisors, managers is so called
c) Utilization
After providing training to the employees,
employees should be given certain
responsibilities.
Their skills and competencies should be
maximally used.
For this maximum utilization, proper
direction, motivation, remuneration,
performance appraisal should be done.
d) Maintenance
Skillful, experienced and loyal employees are
assets of the organization.
Organization should not allow them to leave the
organization for some reason.
By providing attracting incentives and benefits
organization can retain them.
For this following process are to be followed:
i. Career development
ii. Employee welfare
iii. Labor relation
3. Output
Ultimately effective HRM system results the
output.
This includes
i. Organizational goals/ Goal
achievement,
ii. QWL,
iii. Readiness for change, and
iv. Productivity.
i) Goal achievement
 From effective HRM system goal of the organization
can be achieved.
 This includes long and short term goals, personal
goal of the employee.
ii) QWL
 Time period/life that the employee spend in the
organization by doing the organizational work is
called work life.
 Quality working environment increases the QWL of
employees.
 Working environment should be clean, healthy and
safe.
iii) Readiness for change
Time is ever changing.
The environment of the organization also changes
continuously.
Employee should be always to get changed
according to the change in environment.
iv) Productivity
Employees working skills and productivity increases.
Effective organizational management system
provides high productivity to the organization.
For the success of the organization also productivity
is highly important.
4. Feedback
Feedback plays important role for the success of the
organization.
This component provides information about output
effectiveness.
It helps to redesign HRM inputs and processing.
How effective was HRM system? What were
the problems organization faced? Whether the
level of production was at satisfactory level?
All the information related to such problems are
collected and ideas about improvement is found out.
5. Environmental influences
Environment has direct effect on the HRM
system.
So the HRM system should be designed
according to the environment of the
organization.
i. Internal environment
 Environment inside the organization.
 Under the control of the organization.
 Includes structure, tradition, culture, rules
and regulation.
ii. External environment
 Not under the control of the organization.
 Provides both opportunities and
challenges for the organization.
 Political, economic, socio cultural,
technological, government policies, etc.
are some factors of external environment.
Developments in HRM Concepts

Stage 1: Stage 2:
Historical Origins Scientific
(Pre-Scientific Management Era
Management Era) (Early 1900s)

Stage 3:
Hawthorne
Studies and HR
Movement Era

Stage 4: Stage 5: The

New HRM -
Theory X and NHRM (Strategic
Theory Y Era HRM- SHRM) Era
Rising interest in HRM/Importance of
HRM
Why rising interest in HRM?
1. Increasing competition
2. Increasing size and complexity
3. Globalization
4. Technological change
5. Work force diversity
6. Management of change
7. Mistake avoidance
8. Organizational effectiveness
9. Total quality management
10. Growing legislation
11. Outsourcing
1. Increasing competition
 Organization are facing internal and
external competition.
 Product life cycles are getting shorter.
 People have become a source of
competitive advantage
 The interest is rising in innovative human
resource management policies and
practices to face the growing challenges
of competition.
2. Increasing size and complexity
Modern organization are increasing in size.
With the increase in size, complexities of
managing them are increasing.
Competent and committed human
resources are needed to cope with the
challenges of increasing size and
complexities.
This has led to rising interest in HRM.
3. Globalization
The rate of globalization has been
increasing.
It has facilitated trade with out borders.
Globalization has led to operations in
several countries.
To meet global requirements, HRM has to
think over its policies as well as practices.
Issues like selection of qualified employees
with language fluency to work in other
countries.
Their training to work in an international
Similarly, with a view to working in cross-
cultural and cross-country situations,
employees have to be familiar with the
country and its culture, such as, the way
people think, believe, and respect each
other and talk.
4. Technological change
Technology is changing rapidly.
Organizations must keep up pace with
technological changes and implement them
in the workplace.
Jobs need to be redesigned.
Human resources in organizations need to
acquire new competencies.
The need is growing for highly skilled
computer and information technology
friendly human resources.
5. Work force diversity
The composition of work force is rapidly
changing dramatically.
It is getting diverse.
Until the end of 1980s, workforce diversity
was understood just in terms of increasing
women participation at work and labor
market.
For different reasons, the movement of
workforces from different countries with
different
values and culture, education and
training
different race and religions are
participating in the same workplace.
Diversity increases problems, if it is not
properly and timely tackled by manager.
6. Management of change/change
management
The future belongs to those who can best
manage change.
Committed and competent employees are
essential to manage change.
HRM plays an important role in fostering
employee commitment to change.
The interest in HRM is increasing because it
enables organizations to better manage
change.
Employees need readiness to change.
7. Mistake avoidance
Managers like to avoid mistakes related to human
resource management.
Sources of mistakes are:
1. Wastage of time in recruitment interviews.
2. Hiring wrong person for the job.
3. High rate of employee turnover.
4. Poorly motivated subordinates who are not doing
their best
5. Lack of training and development for employees.
6. Rising employee grievances and labor disputes.
8. Organizational effectiveness
Organizational effectiveness is the degree
to which an organization achieves its
objectives.
It implies productivity improvements.
Employee behavior, abilities and
performance exert (apply/put) a major
influence on organizational effectiveness.
This has led rising interest in HRM.
9. Total quality management
It is continuously improving through
everyone’s involvement to satisfy
customers.
Organization is committed to continuous
quality improvements.
TQM has increased interest in HRM.
10. Growing legislation
The legislation concerning employment
matters is growing in recent years.
It provides various rights and protection
programmes for employees.
Employers are obliged to comply (fulfill)
with legal provisions.
HRM is responsible to ensure legal
compliance (fulfillment).
This has led rising interest in HRM.
11. Outsourcing
It is contracting out HR services previously
performed in house.
It is used to obtain specialized expertise at low cost.
The services that are subjects of outsourcing are:
Recruiting and selection
Training and management development
Employee benefits and services- health, canteen,
etc.
Administrative services, such as security, transport,
repair and maintenance, and computer oriented
jobs, etc.
 Changing Role and challenges
of HR Professionals
1. HR and improving productivity
2. HR and corporate strategy
3. HR and employee commitment
4. HR and transferring
knowledge
5. HR and service organization
6. HR and responsiveness
1. HR and improving productivity
Productivity is the quantity or volume of
product/service that an organization
provides.
It includes capital investment, innovation,
learning and an employee’s motivation.
Improvement in productivity is highly
important in today’s globally competitive
market environment.
In this respect, HR managers can play a
vital role in reducing costs and improving
quality of product and services.
The changing role of HR managers towards
productivity improvement are:
 Implementing employee participation
programs
 Fostering better communication system
 Developing better labor- management
relation
 Increasing training and development
programs
 Selection and retention of highly talented
and skillful employees communication etc.
2. HR and corporate strategy
A strategy is the company’s plan for how it will
balance its internal strengths and weaknesses with
external opportunities and threats in order to
maintain a competitive advantage
 success of a company’s strategy depends on:
 Strengthening organizational responsiveness
(awareness)
 Building committed work teams
 Involve HR manager in the earliest stages of
developing and implementing the firm’s strategic
plan, rather than letting HR just react to it.
3. HR and employee commitment
Commitment is a psychological state that
characterizes the employee’s relationship with the
organization.
“Committed employees are likely to remain in the
organization than are “uncommitted” employees.
HR manager has to play a key role in building
employee commitment.
According to Dessler, high commitment firms also
tend to engage in actualizing practices.
These practices aim to ensure their employees have
every opportunity to fully use all their skills and gifts
at work and become all they can be.
HR manager should:
 Establish career oriented performance
appraisal procedures
 Open job-posting and job transfer practices
 Create the feeling that organization cares
them
 Offer training programs, etc.
4. HR and transferring knowledge
HR manager should play a vital role to accumulate
(collect) and disseminate (spread) knowledge
quickly and efficiently throughout the organization.
Without this service people can not be competent
and productive.
It can also be explained as increase in the skills
and expertise of managers and employees.
Training and development plays an important role
in promoting transfer of knowledge.
For example, job rotation can also help transfer of
knowledge.
5. HR and Service organization
There are several similarities between
manufacturing and service industries.
But the differences are more than that.
Employee behavior is highly important in service
organizations like insurance companies, hotels,
banks, retail stores and consulting firms.
The very success of organization depends on the
employee motivation, skills and attitudes-and HR
management.
Therefore, HR managers play a vital role in service
organizations.
Research indicates that progressive HR
practices such as facilitating employees’
career progress, orientation program for
new task performance help to improve
employees’ customer service and quality
delivery.
In short, satisfied employees deliver high
quality service and high service generates
more profits.
6. HR and responsiveness
The role of HR managers are changing
every day.
One of those changes is creating
responsive (quick to respond) employees.
Responsive employees can adopt
organizational change, they can create new
ideas and deliver high quality services to
both organization and its customers.
HR manager can develop high
responsiveness in their employees through
building autonomous teams, equitable
Essential skill of HR
managers
Experts in multi-tasking

The Skill of Organising

The Art of Negotiation

Able to Communicate

A Motivational skill

Ethical and Discrete

Ability to Deal with Tough Times

Executing Change Management

.   
Problem Solving Skills
Human Resource Management Environment

External Environment

Internal Environment

Components of HRM
Environment
HRM in Nepal: A Macro
Perspective
HRM/HRD is relatively a new concept
to Nepalese organizations.
 Realization of Human Resource
Management
Recruitment and selection practice
Training and Development Practice
Performance appraisal practices
Compensation practices
Labor relation Practices
Emerging challenges To HRM
Globalization
Technological change
Workforce diversity
Detaching behavior of employee
Change management
Temporary workforce
Change management
Ethic and social responsibility
Group discussion
Current HRM practice in
Nepalese organization