HRM Def

 Human Resources : It comprises of the total skills, knowledge, creative ability, aptitude
of the work force as well as the attitudes, values, beliefs of individuals involved

 Management: The art of getting things done through people,it includes the functions of
planning, organising, directing and controlling the resources in an organisation.

 Human Resource Management : HRM is managig(planning, organising, directing and

controlling)the functions of Employing, Developing and Compensating Human
Resources to achieve organisational and individual goals

 The process of hiring and developing employees so that they become more valuable to
the organization.Human Resource Management includes
conducting job analyses, planning personnel needs, recruiting the right people for the job,
orienting and training, managing wages and salaries, providing benefits and incentives,
evaluating performance, resolving disputes, and communicating with all employees at all
levels. Examples of core qualities of HR management are extensive knowledge of
the industry, leadership, and effective negotiation skills.

 HRM is the process of managing people in organizations in a structured and thorough

manner. This covers the fields of staffing (hiring people), retention of people, pay and
perks setting and management, performance management, change management and
taking care of exits from the company to round off the activities.

 HRM encompasses the management of people in organizations from a macro perspective

i.e. managing people in the form of a collective relationship between management and
employees. HR function in contemporary organizations is concerned with the notions of
people enabling, people development and a focus on making the “employment
relationship” fulfilling for both the management and employees.
Objectives of HRM:

 Societal:- to be ethically and socially responsible, ensure that the organisation contributes
back to society through CSR and Corporate Governance

 Organisational:- maintain inter department relations, ensure organisational

effectiveness, handle the trade unions and maintain industrial peace.

 Functional:- Ensure there is the right person for the job, provide function specific
training, evaluate the performance of the department

 Personal:- assist employees in achieving their personal goals, provide a career path.

Functions:-

1. Managerial Functions

Planning:- It is the determination of personnel programmes and changes that will

contribute to the organisational goals, it involves planning of Human Resources,
requirements, recruitment, selection, training,etc

Organising:- It is essential to carry out the determined course of action, it establishes

relationships among the employees so that they can collectively contribute to the
attainment of company goals
 Directing:-it deals with motivating, commanding, leading and activating people

- Controlling:- It involves checking, verifying and comparing the actuals with the plans,
identification of deviations and correcting identified deviations

2. Operative Functions

- Employment :-

 Job Analysis,-The process of studying the job to develop a job description and job
specification
 Human Resource Planning- the process of forecasting the number of employees
required and number of employees available in an organization in a particular
year
 Recruitment,-the process of attracting candidates to apply for a vacancy in an
organisation
 Selection-the process of screening and choosing the ideal candidate for a position

- Human Resource Development:-

 Training-indicates imparting a particular skill to an employee

 Development- is an ongoing process generally for management level employees
 Performance Appraisal-the process of evaluating an employees work and
checking if the set goals have been achieved.
 Career Planning- the process of developing a career map for an employee
depicting a clear picture of the growth of an employee in an organization.

- Compensation:-

 Job Evaluation-the process of determing the worth of a job

 Wage and Salary Administration
 Incentive,Bonus
 ESOP-Employee stock option plan

- Human Relations:- Discipline, Industrial Peace and democracy

Difference Between Personnel Management and Human resource Management

Particular PM HRM
 Nature Administrative Wider Scope

Structure Functions Independently Alligned with Organisatio

Approach Pluralist Unitarist

Power Distribution Centralised Decentralised

Leadership Style Transactional Transformational

Communication Indirect Direct

Conflict Handling Manage Temporary Issues Find out root cause

1) Personnel management is a traditional approach of managing people in the organization.

Human resource management is a modern approach of managing people and their
strengths in the organization.

2) Personnel management focuses on personnel administration, employee welfare and labor

relation. Human resource management focuses on acquisition, development, motivation
and maintenance of human resources in the organization.

3) Personnel management assumes people as a input for achieving desired output. Human
resource management assumes people as an important and valuable resource for
achieving desired output.

4) Under personnel management, employees are provided with less training

and development opportunities. Under human resource management, employees are
provided with more training and development opportunities.
 5) In personnel management, decisions are made by the top management as per the rules
and regulation of the organization. In human resource management, decisions are made
collectively after considering employee's participation, authority, decentralization,
competitive environment etc.

6) Personnel management focuses on increased production and satisfied employees. Human

resource management focuses on effectiveness, culture, productivity and employee's
participation.

7) Personnel management is concerned with personnel manager. Human resource

management is concerned with all level of managers from top to bottom.

Challenges of an HR Manager

 Employee Retention

 Work Life balance problems

 Recruiting the “Right Person for the Right Job”

 Trade unions

 Maintain a balance between Employees and Management

 Managing a Diverse Work Force

 Employee Engagement Activities

 Change Management

 Conflict Management

Evolution of HRM
 The evolution of the concept of Human Resource Management is presented below

Period before industrial revolution – The society was primarily an agriculture economy
with limited production. Number of specialized crafts was limited and was usually carried out
within a village or community with apprentices assisting the master craftsmen. Communication
channel were limited.

Period of industrial revolution (1750 to 1850) – Industrial revolution marked the

conversion of economy from agriculture based to industry based. Modernization and increased
means if communication gave way to industrial setup. A department was set up to look into
workers wages, welfare and other related issues. This led to emergence of personnel
management with the major task as

– Worker’s wages and salaries

– Worker’s record maintenance

– Worker’s housing facilities and health care

An important event in industrial revolution was growth of Labour Union (1790) – The
works working in the industries or factories were subjected to long working hours and very less
wages. With growing unrest , workers across the world started protest and this led to the
establishment of Labour unions. To deal with labour issues at one end and management at the
other Personnel Management department had to be capable of politics and diplomacy , thus the
industrial relation department emerged.
 Post Industrial revolution – The term Human resource Management saw a major
evolution after 1850. Various studies were released and many experiments were conducted
during this period which gave HRM altogether a new meaning and importance.

A brief overview of major theories release during this period is presented below

 Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the
evolution of scientific human resource management approach which was involved in

– Worker’s training

– Maintaining wage uniformity

– Focus on attaining better productivity.

 Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). –
Observations and findings of Hawthrone experiment shifted the focus of Human resource
from increasing worker’s productivity to increasing worker’s efficiency through greater
work satisfaction.

 Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of
needs ( 1954) – These studies and observations led to the transition from the
administrative and passive Personnel Management approach to a more dynamic
Human Resource Management approach which considered workers as a valuable
resource.

As a result of these principles and studies , Human resource management became

increasingly line management function , linked to core business operations. Some of the major
activities of HR department are listed as-

1. Recruitment and selection of skilled workforce.

2. Motivation and employee benefits

3. Training and development of workforce

4. Performance related salaries and appraisals.

Strategic Human Resource Management Approach

With increase in technology and knowledge base industries and as a result of global
competition , Human Resource Management is assuming more critical role today . Its major
accomplishment is aligning individual goals and objectives with corporate goals and objectives.
Strategic HRM focuses on actions that differentiate the organization from its competitors and
aims to make long term impact on the success of organization.