HUMAN

RESOURCE
MANAGEMENT
Introduction to HRM
Resources ?
What is “Human Resource”?
Significance of “Human Resource”
- Resources are controlled by human
resources

Difficulty in “Human Resource”

Management
- Human resources have intellect and
emotion
- Human resources can be developed
through
development and training
 View of Human Resources
• Employees are human assets
• Effective organizations recognize that
employees have value
– Much as organization’s physical &
capital assets have value
• Employees are valuable source of
sustainable competitive advantage
– Valuable, rare, inimitable,
nonsubstitutable
 Sources of Employee Value
• Technical Knowledge
• Ability to Learn and Grow
– Openness to new ideas
– Acquisition of knowledge & skills
• Decision Making Capabilities
• Motivation
• Commitment
• Teamwork
– Interpersonal skills, leadership ability
HR’s Core Competencies
Uniqueness of human factor
1. Produces output greater than input.
2. Human resource is active and living, it is
only on this factor that the
organisations customer satisfaction is
based.
3. Human resource is more complex &
unpredictable in its behaviour. Thus
their management needs more
experienced manager’s.
4. Each individuals has distinct background
& hence they cannot be treated alike.
5. Human resource is the only resource
which gets appreciated day by day.
 What is Human Resource
Management?
• Basic Definition
– ‘managing the employment relationship’
(Tyson, 1987)

– Human resource management (HRM) is

the effective management of people at
work

• Key Assumption
– Employees are the most important asset
of the organization
What is Human Resource
Management (HRM)?
– The effective use of people to achieve
both organizational and individual
goals
– Organization’s methods and
procedures for managing people to
enhance skills and motivation
– Activities to enhance the
organization’s ability to attract,
select, retain and motivate people
 Nature of HRM
1. HR draws our attention towards people
rather than mechanics or economics.
2. HR recognises people as the most
important single resource having
unlimited potential.
3. HR’s key activity is motivating people
who can give more output than input.
4. HR aims towards achieving team work.
5. HR aims to secure maximum productivity
without sacrificing individual interest.
 Scope of HRM

Nature of
HRM

Prospects Employee
of HRM Hiring

HRM
Employee &
Industrial
Executive
Relations
Remuneration

Employee Employee
Maintenance Motivation
Objectives of HRM

Personal
Objectives

Functional
Objectives

Organisational
Objectives

Societal
Objectives
Functions of HRM
1. Procurement – right person, in the right place, in the
right time.
2. Development – training of hired persons.
3. Compensation – Standard of pay.
4. Integration – reconciliation of individual and
organisational interest.
5. Maintenance – maintaining good working conditions
and favorable organisational attitude.
6. Records, Research and Audit – record keeping is
necessary both for exercising control over personnel
activities and for doing research.
7. Employee benefits and services – Counseling,
recreation, insurance and retirement.
8. Organisational planning – Organisational development
9. Human resource planning – Right number of people
with required skills at the right time.
 Key Functions

Human Resource Planning

Recruitment & Selection

Compensation & Benefits

Performance Appraisals

Training & Development

 HRM in Changing
Environment
• Organizations are open systems
• Balance the demand and expectations
of the external factors with the internal
requirements
– Technological Changes
– Economic challenges (Globalization)
– Political Factors
– Social Factors
– Local and Government Factors
– Unions
– Other Issues
 HR Score card
It measures the HR function’s
effectiveness and efficiency in producing
employee behaviour needed to achieve
the co’s strategic goals.

HR score card is a concise measurement

system that shows quantitative stds or
“METRICS” the firm uses to measure HR
activities & to measure the employee
behaviours resulting from these activities.
 New HR Manager
1. New proficiencies:
a. HR profi: Knowledge of employee selection,
training & compensation.
b. Business profi: Knowledge of strategic planning,
marketing, production & finance.
c. Leadership profi: Skill to lead a team or to drive
changes in organisation.
d. Learning profi: Ability to stay abreast & apply
all new technologies & practices affecting the
profession.

2. Know your employment law: HR mgr’s should be

abreast of labour laws like Factories act 1948,
Workmen’s compensation act 1923, Trade union
act 1926, Industrial disputes act 1947, Minimum
wages act 1948, ESI act 1948, PF act 1952,
Payment of bonus act 1965, Gratuity act 1972.
3. Ethics and HR: HR mgr’s are heavily
involved in implementing ethics. Six
serious ethical issues are workplace
safety, security of employee records,
employee theft, affirmative action,
comparable work & employee privacy
rights related to HR.

4. HR certification: HR mgr’s need more

professional qualification.
Data: 60,000 HR professionals have
passed “Society for human resource
mgt’s (SHRM) HR professional
certification.
Level 1 – Professional in HR (PHR)
Level 2 – Senior professional in HR (SPHR)
5. HR and technology: Technology improves
HR functioning in 4 main ways as

a. Self service – Data warehousing were

employees can self service in updating
personal information.

b. Call centers – HR specialist answer all

questions from any one office to all its
branches

c. Improving productivity – Viking project

which helped international paper corp. to
achieve a ratio of HR staff : employee to
1:60. (Now 1:50)

d. Out sourcing – Few or more HR activities

to be outsourced.
Ex: HR consultants – supply work force to
other organisations