Unit 1 - Introduction To HRM

INTRODUCTION TO
HUMAN RESOURCE MANAGEMENT

(HRM)
Unit - 1
Introduction to Human Resource Management (HRM)
What is HRM
 Greatest asset of an organization

 Source of competitive advantage
Definition :
Sum Total of aggregate of inherent abilities, acquired knowledge and skills
represented by the talents and aptitudes of persons employed in the organization.
What is HRM
Human Resource Management

Anything that is available Overall management of
Human beings
in a limited capacity the asset
Definition:
Process of proper and maximum utilization of the limited skilled workforce
available within an organization
Objective of HRM
To act as a link between top management and the

employees
To arrange and maintain adequate manpower

inventory, which in turn, ensures smooth working of
the organization
To offer training to develop skills, enhance

productivity and increase individual and organitional
performance to achieve desired results
Objective of HRM
To devise employee benefit scheme for improving

employee motivation and group morale, and
enhancing employer-employee cooperation
To enhance the quality of work life, which is the

employees perception of their physical and
psychological well-being at work
To help keep up ethical values and behavior

amongst employee both within and outside the
organization
Scope of HRM
1 Personnel
2 Employee
3 Industrial
Management Welfare Relations
Scope of HRM
 Manpower planning – Includes, recruitment, selection,

transfer and promotion
 Training and development
 Layoff
 Remuneration
Scope of HRM
 Canteen
 Creche facilities
 Facilities for rest and lunch
 Housing and accommodation
 Education
 Health and safety
 Recreation facilities
Scope of HRM
 Ensure cordial management relations
 Handle joint consultation with union or employees and

management
 Collective bargaining
 Handle grievance redressal and take disciplinary action when

required
 Settlement of dispute at the organizational - level

History of Human Resource Management (HRM)
Human Resource Management has evolved over the years.

Three Periods
1 2 3
• Pre- • Period of • Post-

Industrial Industrial Industrial
Revolution Revolution Revolution
Three Periods
 Economies of the world were primarily agrarian
 Production , mobility and means of communication were

limited
 Specialized crafts were limited and there was no mass

production of goods
Three Periods
 From 1750 – 1850, economies transformed from being

agriculture-based to industry based.
 Modernization and increased means of communication

gave way to industrial setup.
 Large number of people started working under one unit
 Department had to be set up to look into workers wages,

welfare and related issues
Three Periods
 Advancement in technology and communication led to

drastic change in Human Resource Management.
 Various studies and experiments on HRM were

conducted, giving it a new meaning and importance
 Administrative tasks gained strategic importance.

Approaches to HRM
• Scientific Management
1 Approach
• Human Relations
2 Approach
• Human Resources
3 Approach
Approaches to HRM
 Fredrick Taylor, the father of scientific management,

focused on the motion required for each job, tools used
and time needed to accomplish each task
 Fair performance standards were determined for each job

on the basis of such scientific data.
 These standards were used to ascertain wage payment

and incentives which were paid when output exceeded
standards.
 This approach was money oriented and focused only on

productivity ignoring the human aspect
Approaches to HRM
 Hawthorne studies conducted in the 1930’s and 1940’s

came up with the Human Relations Approach.
 The study suggested that human productivity was

influenced by job design, economic reward and social and
psychological factors.
 Feelings, emotions and sentiments of the employees were

greatly influenced by work conditions
 Treating employees with respect would improve employee

satisfaction and help in achieving higher productivity
 This led to organizations shifting from scientific

management approach to human relations approach
Approaches to HRM
Human resource approach treats people as resources rather

than factors of production.
Principles:
 Employees are assets to an organisation
 Policies, programmes, and practices must cater to the

need of employees
 It is necessary to create and maintain a supportive work

environment , to encourage the employees to develop
and harness their knowledge and skills for the benefit of
the organisation
Functions of Human Resource Management (HRM)
Human Resource Management involves blending traditional administrative functions with changing
concept of employee welfare in the organization
Introduction
• HRM operates in tune with other essential organizational

requirements and co-exists with the top management cadre
• HRM functions can be broadly classified into the following HRM

two categories Functions
Managerial
Functions
Operative
Functions
Managerial Function of HRM
Planning  Planning is essential for effective implementation and successful

achievement of targets
 HRM has to plan future course of action
 Must plan human resource requirement including decisions such as
hiring, promotion and transfer
Organizing
 Division of labour and assignment of responsibility
 Managers should ensure that the right person is placed at the right
job
Staffing  Planning manpower and finding prospective employees for

recruitment
 Selection process to choose deserving candidates and placing them

on the job
Directing
 Directing all available resources towards a common goal
 Ensuring individual goals are aligned to organization goal

Controlling  Measures whether human resources are working in the right

direction and meeting set targets
 Make rectifications of activities in case they are deviating from the

goals
 Timely interventions is necessary to ensure output is meeting

standards
Operative Function of HRM
Employment  Includes functions such as job analysis, human resource planning,

recruitment, selection, placement and induction
Human Resource Development
 Includes functions like performance appraisal, training and

development, career planning
 These activities develop employee loyalty and reduce attrition rates


 Include wages, salary, incentive, fringe benefits
Compensation  In the industrial era employees only expected a salary. Today, they
expect incentives and benefits
 Frame compensation in a way that it benefits the organization and

attracts and retains employees
Employee Relations
 Employee satisfaction is important for production and retention
 Conducting team-building activities
 Regular counselling on personal and professional grievances
 Ensuring work-life-balance
Separation  Involves termination of services of individual on the achievement of

superannuation, that is their retirement age, or other reasons.
 Dismissal or discharge due to disciplinary actions being taken against

the employee
 Employee voluntarily leaving organization due to personal reasons.
 Should be handled sensitively by HR managers

Role of Human Resource Executive
An HR Executives roles have evolved over the years. From being a personal manager to being a
strategic advisor to the organisations and having a seat at the table to making their words not just
being heard but also implemented. The role of an HR Executives have evolved over the years.
Challenges of HR Managers
• Managing people is one of the biggest challenges because individuals differ from
each other in terms of their values, attitudes, beliefs and culture.
• Factors that stimulate and motivate employees may not be the same.
• Each individual is unique and this makes the HR manager’s job challenging
Specialist Role of HR Executives
Service Provider
 HR Executives helps the management gather all information about market statistics, pay rate,
labour laws and legislations from the market as well as from competitors before making decisions
on employee related issues.
Administrative Experts
 HR Executives are in charge of record keeping and legal compliance. This includes maintaining all
records of employees and ensuring the organization and complies with statutory health, safety
and employee welfare measures.
Facilitator
 HR Executives acts as a facilitator when training and development actions are planned and
conducted and when performance appraisals are done
Consultant
 HR Executives have to smoothly resolve issues pertaining to lack of motivation, lack of training,
job misfit and grievances related to pay
Auditor
 HR Executives ensures that all members of the management perform their respective roles
efficiently and that there is effective use of the human resource of the organization. They audit
the performance of individual employees.
Change Agent
 Business operates in a dynamic environment where changes occur daily. HR Managers implement
these changes and help employees adapt to them without any hitches
Employee Advocate
 HR Executives are the link between the top management and the employees. They report
employee issues to the management and try to resolve them.
End of Unit 1

Unit 1 - Introduction To HRM

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Unit 1 - Introduction To HRM

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INTRODUCTION TO

HUMAN RESOURCE MANAGEMENT

 Greatest asset of an organization

Human Resource Management

To act as a link between top management and the

To arrange and maintain adequate manpower

To offer training to develop skills, enhance

To devise employee benefit scheme for improving

To enhance the quality of work life, which is the

To help keep up ethical values and behavior

 Manpower planning – Includes, recruitment, selection,

 Training and development

 Facilities for rest and lunch

 Housing and accommodation

 Health and safety

 Ensure cordial management relations

 Handle joint consultation with union or employees and

 Handle grievance redressal and take disciplinary action when

 Settlement of dispute at the organizational - level

Human Resource Management has evolved over the years.

• Pre- • Period of • Post-

 Economies of the world were primarily agrarian

 Production , mobility and means of communication were

 Specialized crafts were limited and there was no mass

 From 1750 – 1850, economies transformed from being

 Modernization and increased means of communication

 Large number of people started working under one unit

 Department had to be set up to look into workers wages,

 Advancement in technology and communication led to

 Various studies and experiments on HRM were

 Administrative tasks gained strategic importance.

 Fredrick Taylor, the father of scientific management,

 Fair performance standards were determined for each job

 These standards were used to ascertain wage payment

 This approach was money oriented and focused only on

 Hawthorne studies conducted in the 1930’s and 1940’s

 The study suggested that human productivity was

 Feelings, emotions and sentiments of the employees were

 Treating employees with respect would improve employee

 This led to organizations shifting from scientific

Human resource approach treats people as resources rather

 Employees are assets to an organisation

 Policies, programmes, and practices must cater to the

 It is necessary to create and maintain a supportive work

• HRM operates in tune with other essential organizational

• HRM functions can be broadly classified into the following HRM

Managerial Function of HRM

Planning  Planning is essential for effective implementation and successful

Managerial Function of HRM

Staffing  Planning manpower and finding prospective employees for

 Selection process to choose deserving candidates and placing them

 Ensuring individual goals are aligned to organization goal

Managerial Function of HRM

Controlling  Measures whether human resources are working in the right

 Make rectifications of activities in case they are deviating from the

 Timely interventions is necessary to ensure output is meeting

Operative Function of HRM

Employment  Includes functions such as job analysis, human resource planning,

Human Resource Development

 Includes functions like performance appraisal, training and

 These activities develop employee loyalty and reduce attrition rates

Operative Function of HRM

 Frame compensation in a way that it benefits the organization and