HRM CONCEPT

PERSONNEL MANAGEMENT

Traditionally the term personnel management was used to refer to

the set of activities concerning the workforce which included
staffing, payroll, contractual obligations and other administrative
tasks.
In this respect, personnel management encompasses the range of
activities that are to do with managing the workforce rather than
resources.
Personnel Management is more administrative in nature and the
Personnel Managers main job is to ensure that the needs of the
workforce as they pertain to their immediate concerns are taken
care of.
Further, personnel managers typically played the role of mediators
between the management and the employees and hence there was
always the feeling that personnel management was not in tune
with the objectives of the management.

PERSONNEL FUNCTIONS
1.

2.

3.

4.

5.

The procurement function- obtaining of a proper kind

and number of personnel necessary to accomplish an
organizations goals.
The development function- personnel development of
employees, training.
The compensating function- securing adequate and
equitable remuneration to personnel.
The Integration function- an integration of human
resources with organization through job enlargement, job
evaluation, variable compensation plans, disciplinary
action programs.
The maintenance function- maintaining the physical
conditions of employees (health and safety measures) and
employee service programs.

HRM

Human resource management is concerned with the development and

implementation of people strategies, which are integrated with corporate
strategies, and ensures that the culture, values and structure of the
organization, and the quality, motivation and commitment of its members
contribute fully to the achievement of its goals.

Definition: HRM is the process of acquiring, training, appraising, and

compensating employees, and of attending to their labor relations, health
& safety, and fairness concern.

HUMAN RESOURCE MANAGEMENT

With the advent of resource centric organizations in recent decades, it has

become imperative to put people first as well as secure management
objectives of maximizing the ROI (Return on Investment) on the resources.

This has led to the development of the modern HRM function which is
primarily concerned with ensuring the fulfillment of management
objectives and at the same time ensuring that the needs of the resources are
taken care of.

In this way, HRM differs from personnel management not only in its
broader scope but also in the way in which its mission is defined.

HRM goes beyond the administrative tasks of personnel management and

encompasses a broad vision of how management would like the resources
to contribute to the success of the organization.

CHARACTERISTICS OF HRM

Human Resources are heterogeneous.(Different people, different

personalities, different needs, attitudes and values).

Human resources are dynamic and behave differently.(They react to

the same situation in quite different ways).

HR are the most important element in an organization. The effective

utilization of all other resources depend upon the quality of HR.

The term HR is wider than the term Personnel. HR include all

dynamic components of all the people at all levels in the
organization, whereas personnel means the employees working in
the organization.

OBJECTIVES OF HRM

To help organization attain its goals by providing well trained and well
motivated employees.

To employ the skills and knowledge of employees efficiently and

effectively, i.e., to utilize HR effectively.

To enhance job satisfaction of employees by encouraging and assisting

every employee to realize his full potential.

To establish and maintain productive, self-respecting and internally

satisfying working relationship among all the members of the
organization.

To bring about maximum development of individuals by providing

opportunities for training and development.

To maintain high morale and good HR within the organization.

To help maintain ethical policies and behavior inside and outside the
organization.

To recognize and satisfy individual needs and group goals by offering

appropriate monetary and non-monetary incentives.

IMPORTANCE OF HRM
As managers none of us would like to make the following mistakes:

To hire the wrong person for the job.

To experience high turnover .

To find our people not doing their best.

To waste time with countless and useless interviews.

To be quoted under bad example of unsafe practices.

To have some of your employees think their salaries are unfair and
inequitable relative to others in the organization.

To allow a lack of training to undermine your department's effectiveness

To commit any unfair labor practices .

HISTORY OF HRM
The Industrial Revolution

Trade Unionism
Scientific Management
Industrial Psychology
HR Movement
Behavioral Science
Employee
Welfare

The Industrial Revolution: Development of Machinery, Linking

power to machines, establishing factories etc.

Trade Union: Workers formed their unions to improve their lots so

that management could be forced to redress grievances.

Scientific Management: F.W. Taylor: (a) development of a true

science.(b) Scientific selection and training of workers.(C)
Friendly cooperation between management and workers.(d)
Development of every worker to hid fullest potential .

Industrial Psychology: It stressed on matching of employees skills

with job. Contributions made to analyze the jobs in terms of their
mental and emotional requirement and development of testing
devices.

HR Movement: Researches focused on the attitude and feelings of

workers and their influence on productivity. The role of informal
groups in industry were highlighted. It was suggested that
interpersonal relationships should be improved.

Behavioral Science: Research in anthropology , sociology,

psychology, etc. has provided the subject matter for HRM.
Behavioral Science era led to the development of new techniques
of motivation and leadership e.g., employee participation, 2 way
communication, management by objectives etc.

Employee welfare: With the dawn of welfare era, scope of HRM

increased. It is not only concerned now with recruitment,
selection, and training of employees. It manages employee
benefits programmes and industrial relations system in industry.

EVOLUTION OF HRM

The commodity concept

The factor of production concept

The paternalistic concept (Fatherly figure)

The Humanitarian concept(Employees right to be protected by

employer as human being)

The HR Concept (Valuable assets)

The Emerging Concept (Employees are considered as partners in

the industry)

LINE & STAFF ASPECT OF HRM

Line manager:- Gives Orders

Staff Manager:- Gives Advice

HR Managers Duties
A line function

Staff function
(assist and advise)

A coordinate
function

THE HARVARD MODEL OF HUMAN

RESOURCE MANAGEMENT

MAJOR FUNCTIONS OF THE

HRM
Staffing
Training and Development
Motivation
Maintenance

FUNCTIONS OF HRM

Managerial
Function

Planning

Organizing

Directing

Operative
Function

Procurement
Development
Compensation
Integration

Controlling
Maintenances

PROCUREMENT
Job Analysis
HR Planning
Recruitment
Selection
Placement
Induction
Transfer
Promotion
Separation

DEVELOPMENT
Performance Appraisal

Training

Executive Development
Career Planning &
Development

COMPENSATION
Job Evaluation

Wage & Salary Administration

Bonus & Incentives

Payroll

INTEGRATION
Motivation
Job Satisfaction
Grievance Redressal
Collective Bargaining
Conflict Management
Employees Partiicipation
Discipline

MAINTENANCE
Health
Safety
Social Security
Welfare Schemes
HR Records
HR Research
HR Audit

EMPLOYMENT / STAFFING

Staffing - Process through which organization ensures it always has

proper number of employees with appropriate skills in right jobs at right
time to achieve organizational objectives.

Job analysis - Systematic process of determining skills, duties, and

knowledge required for performing jobs in organization.

Human resource planning - Systematic process of matching the internal

and external supply of people with job openings anticipated in the
organization over a specified period of time .

Recruitment - Process of attracting individuals on a timely basis, in

sufficient numbers, and with appropriate qualifications, to apply for jobs
with an organization.

Selection - Process of choosing from a group of applicants the individual

best suited for a particular position and the organization .

JOB ANALYSIS

The process whereby jobs are investigated in sufficient detail to

enable(a)recruitment of people (b)assessment of the
performance of people who are already working.
Job analysis identifies the following information:

Detailed breakdown of the duties involved in a position.

Skills, knowledge, attitudes and experience a person should

bring to the position.

Environment condition of the job.

JOB ANALYSIS IS OF TWO FORMS:

Job Description

Critical skills required for the job

Tasks or performance standard,

Responsibilities and disciplinary procedures
Service condition of the job
Pay rates

Job Specifications

Describes the requirements of the person for the job

Abilities
Educational qualifications
Special physical and mental skills
Training
Experience and others

RECRUITMENT

Initial attraction & screening of applicants.

Internal Sources
Job Posting
Succession Plans
Referrals
External Sources
Ads
Job Placement Agencies
Internet
Placement through Colleges and Universities

SELECTION
Application Evaluation Methods of Selection :

Interviews

Tests

Background Investigations

Medical Tests

Hiring
This is the process of appointing the person selected for a particular job.

Induction
Introducing the employee to the organization and the organizations culture.
Introducing the employee to his/her job.

TRAINING & DEVELOPMENT

Employee training

Designed to assist employees in acquiring better skills for their current

jobs.

Employee development

Designed to help organization to ensure that it has the necessary talent

internally for meeting the future human resource needed.

Organization Development

Deals with facilitating systemwide change in the organization.

Career development

Designed to assist employees in advancing their work lives. However, it

is a responsibility of the individual, not of the organization (employee
centered).

TRAINING AND DEVELOPMENT

Training - Designed to provide learners with knowledge and skills

needed for their present jobs

Development - Involves learning that goes beyond today's job; it has

more long-term focus

Career development - Formal approach used by organization to ensure

that people with proper qualifications and experiences are available
when needed

Organization development - Planned process of improving organization

by developing its structures, systems, and processes to improve
effectiveness and achieving desired goals

Performance management - Goal-oriented process directed toward

ensuring organizational processes are in place to maximize productivity
of employees, teams, and ultimately, the organization
Performance appraisal - Formal system of review and evaluation of
individual or team task performance

MOTIVATION

An employees intrinsic enthusiasm about and drive to accomplish work.

Maintenance-retention of productive employees

Welfare Administration

Medical facilities

Canteen facilities

Housing facilities

Transport facilities

Recreation facilities

Loan facilities

Educational facilities

Various Incentive schemes/clear view of retirement benefit

HEALTH AND SAFETY ADMINISTRATION

Employees who work in safe environment and enjoy good health are
more likely to be productive and yield long-term benefits to
organization.

Safety - Involves protecting employees from injuries caused by workrelated accidents.

Health - Refers to employees' freedom from illness and their general

physical and mental well being.

Employee assistance programs

Medical

Dental

Accidental

Educational

Retirement

COMPENSATION

Direct Financial Compensation - Pay that person receives in form of

wages, salaries, bonuses, and commissions.

Indirect Financial Compensation (Benefits) - All financial rewards not

included in direct compensation such as paid vacations, sick leave,
holidays, and medical insurance.

Nonfinancial Compensation - Satisfaction that person receives from

job itself or from psychological and/or physical environment in which
person works.

MAINTENANCE

It is concerned with protecting and promoting the physical and

mental health of employees. For this , several types of fringe
benefits such as housing, medical aid, educational facilities,
conveyance facilities etc. are provided.

Social security measures are provided such as; PF, Pension plans,
gratuity, maternity benefits disablement allowances, group
insurance etc.

The Changing Environment of

HRM

GLOBALIZATION TREND
Companies dealing across the nation : Sony, Apple, Nike, Mercedes
Benz, Infosys, TCS etc.
More
Globalization

Do things
better &
Less
Expensive

More
Competition

Make
employees
more
productive

More
pressure to
be world
class

GLOBALIZATION BRINGS BOTH

BENEFITS AND THREATS.
Benefits to the consumer: Variety of products and services at
low cost (Ex: From computer to car).
Threat: More competent and knowledgeable people required,
Outsourced from other countries.
Ex: Indian IITS, Engineers move abroad for projects.

TRENDS IN THE NATURE OF WORK

High- Tech Job: Ex-Skilled machinist required.

Service Jobs: More intellect people required.

Knowledge work and Human Capital: The knowledge, education,

training, skills, and expertise of a firms worker.
(Management Guru Peter Drucker predicted several years ago,
the center of gravity in employment is moving fast from manual
and clerical workers to knowledge workers).

Nature of work and facilities provided.(Ex: Same Software

implication in two different banks but results came different ).

Work Force
Background.

Demographic

Trends:

Age,

Education,

Family

THE CHANGING ROLE OF HRM

Strategic HRM
Creating High-Performance Work system

Managing technology

HR POLICIES
What is a Policy:

A policy is a predetermined course of action established as a guide toward

accepted objectives and strategies of the organization.

A vision is formulated, business processes are analyzed, and policy and

procedure systems to support the vision are born. As policies and
procedures are written, approved, published, and implemented, the
companys vision is articulated.

WHY DEVELOP A POLICY MANUAL

Policy manuals are developed to help staff and management teams run the
organization.

In best use situations, policies play a strategic role in an organization.

They are developed in light of the mission and objectives of the company
and they become the media by which managements plans, rules, intents,
and business processes become documented and communicated to all staff.

Carefully drafted and standardized policies and procedures save the

company countless hours of management time.

The consistent use and interpretation of such policies, in an evenhanded

and fair manner, reduces management's concern about legal issues
becoming legal problems.

OBJECTIVES

To provide fair, acceptable & efficient leadership

To provide an opportunity for expansion & voice in management

To strengthen & appreciate the human assets continuously by providing

training & developmental programs

To provide facilities & conditions of work & creation of favorable

atmosphere for maintaining stability of employment

To attain an effective utilization of human resources in the achievement

of organizational goals, etc

VARIOUS TYPES OF POLICIES

Employment Policies
These are the policies that guide hiring practices, orientation of new
employees, compliance with employment laws, and confidentiality.
Employment Status & Records
These are the policies that define such issues as employment
classifications, access to personnel files and guidance on how
background checks and performance reviews are to be performed.
Employee Benefits
These are policies that explain employee benefits such as insurance,
vacations, holidays, leave, and employee reimbursements.
Payroll
These are policies that are related to salary and wage administration
including deductions, pay advances, and time keeping.

Workplace Guidelines
These policies are quite varied and their purpose range from defining
certain work arrangements such as flex time and telecommuting to offering
guidelines on the use of company assets and record retention.
Employee Conduct
These policies are guidelines that control employer behavior and conduct
on the job. The mainstay of this section is a code of conduct but also
important are policies regarding substance abuse, smoking, harassment,
and workplace violence.
E-Policies
These policies guide staff in the use of the organizations information
technology. Policies defining acceptable and prohibited activities and use
of e-mail and the Internet make up a majority of these policies

H
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