Human Resource

Management

Introduction

and Importance-

Evolution

Difference between Personnel

Management and HRM- Strategic HRMRole of HR Manager

What are Human

Resources?
Human resources may be defined as the

total knowledge, skills, creative abilities,

talents and aptitudes of an organization's
workforce, as well as the values, attitudes,
approaches and beliefs of the individuals
involved in the affairs of the organization.

It is the sum total or aggregate of inherent

abilities, acquired knowledge and skills
represented by the talents and aptitudes
of the persons employed in the
organization.
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Understanding of HRM
HRM

is a management function concerned

with Hiring, Motivating, and Maintaining
people in the organization.

It

focuses on people in the organization.

HRM

is broad concept

Personnel

Management (PM) & Human

Resource Development are part of HRM.

HRM defined
Human

Resource Management is a
process of bringing people and
organizations together so that the
goals of each are met.

It

is a series of integrated decisions

that form employment relationship;
their quality contributes to the ability
of organizations and the employees to
achieve their objectives.
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Personnel Admin/ Mgmt.

Personnel

Management is the
planning, organizing, directing and
controlling of the procurement,
development, compensation,
integration, maintenance and
separation of human resources to
the end that individual,
organizational and social objectives
are accomplished.
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 PM

is management of
people
PM views man as an
economic person
Employee is treated
as cost centre and
hence controls cost of
Personnel in the
organization
Employee is viewed as
a tool or equipment
which can be
purchased and used.
Employees are utilized
for organizational
benefit.

HRM

is management of
employees skills,
knowledge, abilities,
talents, aptitude,
creative abilities
HRM looks at him as a
full person- taking social
and psychological
factors in views.
Employees are treated
as profit centre and
hence they invest in HRD
Employee is treated as a
resource.
Employees are utilized
for mutual benefit- both
for organization and
employees own

Dimension

Personnel Management

Human Resource
Management

1. Employment Contract

Careful delineation of written

contracts

Aim is to go beyond the

contract

2. Rules

Importance of devising clear

rules

Impatience with rules

3. Guide to Management Action

Procedures

Business need

4. Behavior Referent

Norms/customs and practices

Values/mission

5. Managerial Task vis--vis

Labor

Monitoring

Nurturing

6. Key Relations

Labor Management

Customer

7. Initiatives

Piecemeal

Integrated

8. Speed of Decision

Slow

Fast

9. Management Role

Transactional

Transformational Leadership

10. Communication

Indirect

Direct

Differences between HRM and

PM

Dimension

Personnel Management

Human Resource
Management

11. Prized Management

Skills

Negotiation

Facilitation

12. Selection

Separate, marginal task

Integrated, Key task

13. Pay

Job evaluation (fixed

grades)

Performance related

14. Conditions

Separately negotiated

Harmonization

15. Labor Management

Collective-bargaining
contracts

Individual contracts

16. Job categories and

Grades

Many

Few

17. Job Design

Division of labor

Team Work

18. Conflict Handling

Reach temporary truce

Manage climate and culture

19. Training and

Development

Controlled access to
courses

Learning companies

20. Focus of Attention for

Interventions

Personnel procedures

Wide-ranging cultural,
structural and personnel
strategies

Dimension

Personnel Management

Human Resource
Management

21. Respect for Employees

Labor is treated as a tool

which is expendable and
replaceable

People are treated as

assets to be used for the
benefit of an organization,
its employees and the
society as a whole

22. Shared Interests

Interests of the organization

are uppermost

Mutuality of interests

23. Evolution

Precedes HRM

Latest in the evolution of the

subject

24. Locus of Control

External

Internal

25. Organizing Principles

Mechanistic
Top-down
Centralized

Organic
Bottom-up
Decentralized
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Nature of HRM
It

is pervasive in nature as it is present in

all enterprises.

Its

focus is on results rather than on

rules.

It

tries to help employees develop their

potential fully.

It

encourages employees to give their

best to the organization.
It is all about people at work, both as
individuals and groups.

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Nature of HRM
It

tries to put people on assigned jobs in

order to produce good results.

It

helps an organization meet its goals

in the future by providing for competent
and well-motivated employees.

It

tries to build and maintain cordial

relations between people working at
various levels in the organization.

It

is a multidisciplinary activity, utilizing

knowledge and inputs drawn from
psychology, economics, etc.
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Scope of HRM
1. Personnel aspectThis is concerned with manpower
planning, recruitment, selection,
placement, transfer, promotion, training
and development, layoff and retrenchment,
remuneration, incentives, productivity etc.
2. Welfare aspectIt deals with working conditions and
amenities such as canteens, crches, rest
and lunch rooms, housing, transport,
medical assistance, education, health and
safety, recreation facilities, etc.
3. Industrial relations aspectThis covers union-management relations,
joint consultation, collective bargaining,
grievance and disciplinary procedures,
settlement of disputes, etc.
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Nature of
HRM
Industrial
Relations

Employee
Hiring

HRM
Prospectus
of HRM

Remuneration

Employee
Maintenance

Motivation

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Objectives
Personnel

Objectives:To assist employees

in achieving their
personal goals, these
goals enhance the
individuals
contribution to the
organization.

Functional

Objectives:To maintain the

departments
contribution at a level
appropriate to the
organization's needs

Organizational

Objectives:To recognize the role of

HRM in bringing about
organizational
effectiveness.

Societal

Objectives:To be ethical and socially

responsible to the needs
and challenges of the
society. Minimizing the
negative impact of such
demands on organization.

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HRM Objectives & Functions

HRM Objectives

Supporting Functions

1.Societal

1.Legal compliance
2.Benefits 3.Union-Mgmt relation

2.Organisational

1.HR Planning
2.Employee relations
3.Selection
4.T &D
5.Appraisal
6.Placement

3.Functional

1.Appraisal 2. Placement
3.Assessment

4.Personnel

1.T&D
2.Appraisal 3.Placement
4.Compensation 5.Assessment
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Evolution of HRM
Pre-

industrial Revolution
Industrial Revolution
Emergence of Personnel
Management
Personnel Department
Personnel Management as a mature
field
Evolution of HRM in India
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Pre & Post Industrial

Revolution
Prior

to Industrial Revolution Low

status to Labour
Slavery, serfdom and guild system
After Industrial RevolutionEmergence of new energy source
&steam engine
Cottage System
Factories System- freedom of
contract, enhanced specialization
However, several evils prevailed n
factories system
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Emergence of PM
History

of industrial development in US
characterized by technology
1917- Large scale PM originated after
WW-I
Hawthorne studies gave a boost to the
human relations movement
Post great depression, unionism and
collective bargaining prevailed
After WW- II employers provided
inducements to workers
Other significant developments

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Personnel Dept. & PM as a

mature field
Advent

of Trade Unions- separate

dept to handle them
1960s- 80s- HR dept brought in
top mgmt. for consultation
Focus on mgmt of brain power
instead of muscle power

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