HUMAN RESOURCE MANAGEMENT

Unit-1
Concepts, Objectives, Functions of HRM
Evolution of HRM
HRM in the Indian Scenario

Dr Sunil Kant Mishra

Associate Professor
An organisation is consist of -----
• Non-Human Resources
 Money
 Material
 Machines
 Methods
These resources have Capacity to work and their utilization
depends upon the ability of Human.

• Human Resources
Human has Capacity to work.
It also have Willingness to work which make it different and more
complex from Non-Human Resources.
 An organisation’s success depends
upon the skills and willpower of its
HUMAN resources. Motivated Men
will certainly brings happiness to all-
Organisation, Individual and Society.
 Understanding Human
• It is a living organism.
• It has physical attributes made up of Flush & Bones,
and Special parts of body required for performing
special task.
• It has Mental ability to observe, gather information,
analyze it and come at the conclusion/ decision.
• It has positive as well negative traits of personality.
Creativity, Love, Feelings, Hatred, Anger, happiness,
weeping, emotions etc.
‘The Man come at Work Place in totality with Body,
Mind and Soul’
 What is Management
• Management is an art and science of optimum
utilisation of limited resources of an organisation
to achieve objectives in efficient and effective way.
Optimum Utilisation
Utilising the resources keeping in view the capacity of
resources, re-building the resources and
sustainability.
Resources
They are limited including the Men at work.
Money, Material, Methods, Machines and Men
 OBJECTIVES

Organisational

Individaul

Social

Organisational objectives can be achieved

only when individual and social are kept
in mind.
Efficient Way: ‘Doing things Right’

Efficiency is a quantitative measures.

Productivity and profitability should be achieved.
Maximum Production at Minimum Cost

Effective Way: ‘Doing Right Things’

It is qualitative measures.
Planning and Strategy
Lesser Efforts, Lesser Time. Lesser Fatigue
Sustainability Approach
Understanding Resource Approach
• It is Limited
• It is Valuable
• It is Precious
• It is dealt with Security
• It is insured for uncertainty and future losses.
We have seen that the Non-Human
Resources have been treated well
and organisations treat these
resources valuable, precious and
with careful handling.
BUT
The Human Resources have got
attention in the recent years.
Are Human Resources get attention in the organisation ?

• Men at work were neglected in earlier periods.

• Slavery system is one of the example of treatment of
men at Work.
• Due to the ill treatment of Men at work, several
revolution had taken place in the past in the various
corner of the world.
• Punishment had been adopted as a mean to take work
from Labourer.
• Men at work were not taken as valuable, precious
resources and requiring security.
• It was the last quarter of previous centaury when men
at Work started getting attention for increasing the
productivity and profitability.

• Behavioural Approach/ Human Relation Theory has

advocated that productivity can improved further by
providing conducive human relation environment in
the organisation.
• Now, organisation recognizes their Human
Resources.
• Successful organisation gives credit of their success
to their dedicated Work force.
What is Human Resource Management
• Prof. M. J. Jucius
“The field of management which has to do with
planning, organizing , directing and controlling various
operative functions of procuring , developing , maintaining
and utilizing a labour force , such that the:
(a) objectives, for which the company is established are
attained economically and effectively
(b) objectives of all levels of personnel are served to the
highest possible degree: and
(c) objectives of the community are duly considered and
served”
 As per the definition of Jucious, the HRM is
the process of applying managerial functions
over its operative functions to achieve
organisational objectives.
Managerial Functions Operative Functions Objectives
Planning Procuring

Organising Developing To achieve objectives of

Company, all levels of
Directing Maintaining employees and
community
Controlling Utilising
Edward Flippo
“ Personnel Management is the
planning organising , directing and controlling
of the procurement, development ,
compensation, integration, maintenance and
separation of human resources to the end that
individual, organizational and societal
objectives are accomplished.”

Flippo also focuses on the lines of Jucious.

Peter F. Drucker
“Human Resource Management is the
management of workers and work.”

E.F.L. Breach
“Human Resource Management is that part
of management process which is primarily
concerned with the human constituents of an
organization.”
 Conclusion
HRM is the process of applying managerial
functions over operative functions to manage
the men at work to help in achieving
organisational objectives.
 Concepts / Nature of HRM
• It is concerned with managing people at work.
• It is concerned with employees both as an individual as
well as a group.
• It is concerned with helping the employees to develop
their potentialities and capacities to the maximum
possible extent to help them in achieving optimum
satisfaction from jobs.
• It is inherent in all organisation
Small, medium and large
Business and social organisation
• It is of continuous nature.
• It attempt to get willing cooperation from employees.
Personal
Objectives
Objectives of HRM

Societal
Objectives
 Societal objectives

To be ethically and socially responsible to the needs

and challenges of the society while minimising the
negative impact of such demands upon the
organisation.

Organisational objectives

To recognise the role of HRM in bringing about

organisational effectiveness. The HRM is not an end
in itself. It is only a mean.
 Functional objectives

To maintain the department’s contribution at a

level appropriate to the organisation’s needs.

Personal Objectives

To assist employees in achieving their personal

goals, at least insofar as these goals enhance the
individual’s contribution to the organisation.
 Functions OF HRM
Managerial Functions
Planning, Organising , Directing, Co-ordinating and Controlling
Operative Functions
HR Acquisition
HR Planning
Recruitment
Selection
Placement
Induction
HR Development
HRD System
Training and management development
Organisation Development
Appraisal and Compensation
Performance appraisal
Compensation
Incentives and benefits
Integration and Maintenance
Integration of HR
Motivation
Communication
Empowerment
Participation
HR Mobility
Safety and Health
Stress management
Industrial Relations
IR System, Grievence Redressal, Management of disputes
Supporting Functions
HR Information system
HR Records
HR Research
HR Audit system
HR Valuation system
Advisory Functions
Advice to top management
Advice to departmental heads
 Evaluation of HRM
The modern HRM has emerged through many stages
namely-
• Pre-Industrial Revolution Stage
• The Industrial Revolution stage
• Scientific Management Stage
• Trade Unionism Stage
• Human Relation Stage
• Human Resource Stage
• Human Capital / Talent Management stage
 Evolution of Concept ofHRM
The term ‘HRM’ is of new origin which has emerged during 1970s.
Earlier it was referred to Labour Management, Staff Management,
Personnel Management, Personnel Administration etc.
The approach to men at work may be broadly categorised as follows:

• The Commodity Approach

• The Factor of Production Approach
• The Paternalistic Approach
• The Humanitarian Approach
• The Behavioural Human Resource Approach
• The Emerging Concepts
Management Stage Concept of HRM Status of HR

Pre-Industrial The Commodity Labour was considered as a commodity

Revolution Stage Approach to be bought and sold
Under Guild
System
The Industrial The Factor of Workers were treated like ‘machine
Revolution stage Production tools’. Achieving production target was
Approach more important than satisfaction of men
Scientific Employees were considered a mere
Management Stage operator of machines
The Paternalistic
Trade Unionism Stage Approach Collective bargaining has became a tool
in the hand of labours. Welfare schemes
were introduced
Human Relation Stage The Humanitarian Employees needs-Physical, social and
Approach psychological, got attention
Human Resource The Behavioural Motivation, Communication, group
Stage Human Resource dynamics, organizational conflicts.
Approach Integration of organisational and
individual interest got attention
Human Capital The Emerging Retaining and maintaining talent
Management/ Talent Concepts management .
Management
 Evaluation of HRM in India
• Nowdays, the term HRM is used widely in
industry circles.

• The welfare of workers in the managementof

business enterprises has been in existence
since ages.
 HRM in Ancient India
• Kautilya’s Arthshastra states that there
existed a sound base for systematic
management of resources as early as the 4th
Centaury BC. The government then took an
active interest in the operation of public and
private enterprises and provided systematic
procedures for regulating employer-employee
relationship.
 HRM outside India: Early Phase
Period Particulars Principles of HRM
1800 BC Babylonion Code of Minimum and incentive wage plans
Hamburabi
1650 BC Chinese Principle of division of labour
1250 BC Moses Span of management and related
concepts
400 BC Chaldeans Incentive wage plans
400 BC Chinese Labour turnover
 HRM in India in 20 Century th

Period Development Outlook Emphasis Status

status
1920-1930 Beginning Pragmatism Statutory, welfare, Clerical
of capitalists parentalism
1940-1960 Struggling for Technical, Introduction of Administrativ
recognition legalistic techniques e
1970-1980 Achieving Professional Regulatory, confirming, Managerial
sophistication Legalistic imposition of
Impersonal standards on other
functions
1990s------ Promising Philosophical Human values Executive
Productivity through
People
 Important milestones
Year Mile stone of HRM Key recommendation
1920 State intervention To protect the interest of workers because of the difficult
conditions which followed the Ist World War
1931 Royal Commission Appointment of Labour-Welfare Officer
1948 Factories Act Appointment of Welfare Officer made compulsory in
factories employing 500 or more workers

1950s Establishment of National Institute of labour Management, Mumbai and Indian

Institute of Personnel Management, KolKota

1960s Personnel function expanded beyond the welfare aspects-focus toward

professionalism, IR, Personnel administration
1970s Welfare aspect shifted toward development aspect of employees. HRD, HR New
challenges, new technologies
1980s Two professional bodies IIPM and NILM merged in 1980 to form new body ‘National
Institute of Personnel Management
1990s Emphasis shifted to Human values and productivity through people
21st 21st Century have witnessed changing demographics shortage of skilled and talented
Century Human resource. Acquire high place in Corporate planning and strategy.
Thank you

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