INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT
•According to Adi Godrej,

“all corporate strengths are

dependent on people.”
 Human Resource Management

• ‘The real sources of competitive leverage are

the culture and capabilities of your organization
that derive from how you manage your people.’
Human Resource Management
• “HRM is the function performed in
organizations that facilitates the most
effective use of people to achieve
organizational and individual goals.”
– Ivancevich and Glueck
 History of HRM - 1

• Scientific Management Approach (mid 1900s) –

– Study of motion and fatigue
– ‘one-best-way’ to accomplish the task
– Piece-rate system
– Welfare programmes
– Failed to bring behavioural changes and increase in
productivity
• Human Relations Approach (1930-40)
– Effect of social and psychological factors
– Relations and respect  High Productivity
History of HRM - 2

• Human Resources Approach (1970s)

– Principles
• Employees are assets
• Policies, programmes and practices - help in work and
personal development
• Conducive environment
Challenges of HRM

• Individuals differ from

one another
• Customization of
stimulation and
motivation
• Demanding personnel
 Scope of HRM

The scope of HRM is very wide.

The Indian Institute of Personnel Management has
specified the scope of HRM as follows:

Welfare
Personnel
Aspect
Aspect
Industrial
Relations
Aspect
Functions of HRM

A. Managerial Functions:
Planning, Organizing, Directing , Controlling
B. Operative Functions:
Procurement functions, Development
functions, Motivation & compensation,
Maintenance, Integration, & Separation.
Managerial Functions

• Planning – Determine the personnel prog regd

recruitment, selection, & training to achieve
desired objectives.
• Organizing – design structure of relationships
b/w jobs, personnel and physical factors.
• Directing – Getting people to do work willingly
& effectively thro supervision and guidance,
motivation & leadership.
• Controlling – ensure accomplishment of plans
correctly- measure performance thro review
reports, records etc.
Operative Functions

1. Procurement Function – concerned with

procuring & employing people with required
knowledge, skill and aptitude.
2. Development – Increase of skills, knowledge
abilities etc
3. Motivation & compensation – inspire people
to give best-through incentives & rewards
4. Integration – of goals thro progs, redressal,
negotiations.
5. Maintenance – protecting & preserving
physical and psychological health of
employees
6. Separation
Procurement Development Motivation & Integration Maintenance Separation
Compensat
ion

Job Analysis Training Job design Grievance Health & safety Retirement
redressal
HR Planning Executive Work scheduling Discipline Employee Layoff
development welfare

Recruitment Career planning Motivation Teams & Social security Outsourcing

& teamwork measures
development

Selection Human Resource Job evaluation Collective Discharge

development bargaining

Placement Performance Employee

appraisal participation
&
empowerme
nt
Induction & Compensation Trade unions &
orientation administrati associations
on

Internal Mobility Incentives & Industrial

benefits. relations
 PERSONNEL MGT HRM

Mgmt of people employed Mgmt of KSA, abilities, attititudes..

Man is an economic
resource/service exchanged Man is an economic, social &
for wage / salary psychological
Commodity that can be Treated as a valuable resource
purchased & used
Employees are cost centers, Profit centre- invest capital for
mgmt controls cost development & future use

Used organisational benefit Used for organisation, individual &

family benefit

Auxiliary function Strategic mgmt function

 OBJECTIVES OF HRM

1. Help the organisation reach its goals

2. Employ the skills & abilities of the workforce efficiently
3. Provide the organisation with well trained & motivated
employees
4. Increase to the fullest the employee's job satisfaction & self
actualization
5. Develop & maintain a quality of work life

6. Communicate HR policies to all employees.

7. Ethically & socially responsive to the needs of society.