Introduction to Human Resource Management

MBA, Winter 2010

Ace Institute of Management
What do we basically need to run an organization?
 Please speak up……..

Money can be raised. Equipment & technology – well these things

can be duplicated. Human capital in fact is the only area where
companies can really differentiate themselves.

We can buy more beautiful and efficient aeroplanes, we can

develop more sophisticated computer systems, but the difference
between failure and success will be determined by the ability to
create the service mindedness, the professionalism and the
management capabilities in our people.

What do you think is the edge that Ace Institute of Management

has over many other academic institutions in the country?
Since humans are the key determinants of organizational success,
managing people properly is one of the most critical
responsibilities of management.

This leads to a discipline commonly referred to as Human

Resource Management.
What is Human Resource Management, basically?
• Human Resource Management (HRM) is a general term
used to describe a variety of functions aimed at
effectively managing an organization's employees or
"human resources"

• HRM professionals oversee the "people" side of an

organization including compensation and benefits, career
development, training, hiring, and many other functions.

• The goal of HRM is to assist organizations meet their

objectives by attracting and retaining qualified
employees, and managing them effectively while
ensuring that the organization complies with all
appropriate labor laws.
 HRM Components

ACQUISITION DEVELOPMENT
• HR Planning • Training
• Recruitment • Development
• Selection •Career
• Socialization Management

MAINTENANCE MOTIVATION
• Safety & Health • Job Design
•Performance
•Employee/
Evaluation
Labor Relations •Compensation
Management
 Human Resource Management

PEOPLE ARE NOT RESOURCES

 PEOPLE ARE NOT RESOURCES
I certainly would not feel good about these. Would you?
• We have five resources on that project.
• Four resources are being assigned to the new venture.
• We are hiring two more resources this quarter.
A resource can be measured, divided, moved, sold, exploited,
traded.
Would a person like to be measured, divided, moved, sold,
exploited and so on?

Calling people "resources" objectifies them. It implies having or

needing a certain control over them. It implies currency: I'll give
you one resource, you give me two.
We are humans. Are we objects? Can others truly control us?
 PEOPLE ARE NOT RESOURCES

• People are more than their monetary value

• People these days are really smart and independent. They

understand their own value. And it is their value that they
are offering to the organization.

• They are perfectly capable of relocating this value, i.e.,

themselves, right out of an organization and over to a
competitor.
 PEOPLE ARE NOT RESOURCES

The actual resource is peoples’ willingness to dedicate their

energies on the organization’s behalf, for its betterment.
 So what’s the bottom-line?

• Treating people more as humans than as resources

• An optimal fit between individual and organizational goals

• Win win situation