By: Dr.

Aniruddh Vijay
Module 1: Foundations and Principles of Managing People in
Organizations: Concepts and Perspectives; Contemporary issues and
challenges in managing human resources;
 Key Assumption

“EMPLOYEES ARE THE MOST IMPORTANT

ASSET OF THE ORGANIZATION”
 What is HRM?
• Human: people, us

• Resource: Assets/costs for organizations

• Management: Co-ordination and control to achieve set

goals

But humans, unlike other resources in the context of work and management, cause
problems.
 HUMAN RESOURCE MANAGEMENT

• The process of attracting, developing and maintaining a talented and energetic

workforce to support organisational mission, objectives and strategies
 Scope of HRM
✓Recruitment
✓Selection
✓Induction / Orientation
✓Training and Professional Development
✓Performance Appraisal and Management
✓Career Development
✓Quality of Work Life
✓Retention and Turnover
 Difference between HRM and PM
Basis Personnel Management
Meaning The aspect of management that is concerned
with the work force and their relationship
with the entity is known as Personnel
Management.
Human Resource Management
The branch of management that focuses on the
most effective use of the manpower of an entity, to
achieve the organizational goals is known as Human
Resource Management.

Approach Traditional Modern

Treatment of Machines or tools Asset

manpower

Type of function Routine function Strategic function

Labor Management Collective Bargaining Contracts Individual Contracts

Decision Making Slow Fast

Focus Primarily on activities like hiring, recruiting, Treat manpower of the organization as valued
training etc. assets, to be valued, used and preserved.
 Principles of Managing People
• Planning: In this stage, the planning related to tasks is formulated.

• Organizing: In this stage, whatever was planned in the planning stage, is allocated to each employee.

• Staffing: After organizing stage, most of the times an organization feels lack of adequate personnel,
lack of skilled personnel. Therefore, in this stage, activities such as recruitment and selection, training
and development etc. are focussed.

• Leading: Once you are clear on the staffing process, it is consequential to motivate and encourage
employees. Hence, under this stage, motivation is given utmost importance.

• Controlling: After planning, organizing, staffing, leading, it becomes important to check how well an
organization has achieved its goals. In this stage, evaluation of the performance is done and based on
that corrective measures are devised.
 Functions of HRM
• Managerial Functions:
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

• Operative Functions:
1. Procurement
2. Development
3. Compensation
4. Maintenance and motivation
5. Integration
6. Industrial relation
 Managerial Functions of HRM
1. Planning: It involves the process of predetermining the personnel programmes that are necessary to attain the organizational
goals.

2. Organizing: Organizing is a process through which the firm establishes its structure and determines the authority, responsibility
and accountability of each member in relation to the job.

3. Staffing: This function deals with the creation and maintenance of human resources through employment, compensation,
benefits, training and development, and industrial relations measures.

4. Directing: It involves the following activities:

• Getting work done through subordinates
• Ensuring effective two-way communication for the exchange of information with the
• Subordinates
• Motivating subordinates to strive for better performance
• Maintaining the group morale

5. Controlling: Controlling is the process of checking the efficiency of the individuals and the groups in fulfilling the plans and goals
through follow-up measures.
 Operative Functions of HRM
1. Procurement: Job analysis and design, human resource planning, recruitment,
selection, placement, orientation and socialization

2. Development: Career planning and development, workers’ training, executive

development, organizational development

3. Compensation: Job evaluation, performance evaluation, wages administration,

incentives and benefits

4. Maintenance and motivation: Employee well-being, social security, workers’

participation, motivation, job rotation, HR records research and audit, HR information
system

5. Integration: Industrial relations, discipline, grievance redressal, dispute settlement,

collective bargaining.
 Qualities of HR Manager
✓Knowledge: He must be an expert in his own field to gain the confidence and
respect of his subordinates

✓Intelligence: The HR manager should be able to understand the situation quickly

and to act decisively before it becomes unmanageable

✓Communication skills: He must have good communication skills to share his

ideas effectively with the employees and to persuade them to work towards the
organizational goals successfully

✓Objectivity and fairness: He is required to act only on the basis of relevant facts
and information
 Qualities of HR Manager

✓Leadership and motivational qualities: The HR manager should possess the

ability to influence the employees towards the achievement of goals and
targets. He should also be a good motivator

✓Emotional maturity: It is essential for the HR manager to have emotional

maturity and tolerance in dealing with the employees

✓Empathy: Empathy pertains to looking at events or situations from the others’

point of view. The HR manager should learn to view the issues affecting the
employees from their perspective too.
 Issues/ Challenges Related to HRM
1. Setting up an adequate internal environment

2. Coping up with the increasing workforces

3. Dealing with the legal environment

4. Maintaining a psychological State of employees

5. Keeping up with the technological advancements