BA7204

HUMAN RESOURCE
MANAGEMENT
 UNIT I

PERSPECTIVES IN
HUMAN RESOURCE
MANAGEMENT
CONTENTS:
• Evolution of human resource management –
• The importance of the human factor –
• Challenges –
• Inclusive growth and affirmative action –
• Role of human resource manager –
• Human resource policies –
• Computer applications in human resource
management –
• Human resource accounting and audit.
 INTRODUCTION
• Human Resource Management (HRM) is the
utilization of a firm’s human resources to achieve
organizational objectives.

• HRM is the most happening function as of now. This is

so because people offer competitive advantage to a
firm & managing people is the domain of HRM.

• HRM is a broad concept. Personnel Management

(PM) & Human Resource Development (HRD) are a
part of HRM.
 Meaning of HRM
• Human Resource Management means
employing people, developing their resource
utilizing, maintaining and compensating their
services in tune with the job and
organizational requirements with a view to
contribute to the goals of the organization,
individual and the society.
 Definition of HRM
• According to Pulapa Subba Rao define, human
resource management (HRM) is a managing (planning,
organizing, directing & controlling) the functions of
employing, developing, compensating the utilizing human
resources, resulting in the creation and development of
human and industrial relations which would shape the
future policies and practices of human resource
management, with a view to contribute proportionately to
the organizational, individual and social goals.
Definition
• Scott, Clothier and Spriegel have defined
Human Resource Management as that
branch of management which is responsible
on a staff basis for concentrating on those
aspects of operations which are primarily
concerned with the relationship of
management to employees and employees
to employees and with the development of
the individual and the group.
Nature:
1. Inherent Part of Management :
2. Pervasive Function :
3. Basic to all Functional Areas :
4. People oriented :
5. Personnel Activities or Functions :
6. Continuous Process :
7. Based on Human Relations :
8. Interdisciplinary
9. Future oriented
10. Integrated mechanism
Objectives:
• (i)To ensure effective utilisation of human resources, all other
organisational resources will be efficiently utilised by the
human resources.
• (ii) To establish and maintain an adequate organisational
structure of relationship among all the members of an
organisation by dividing of organisation tasks into functions,
positions and jobs, and by defining clearly the responsibility,
accountability, authority for each job and its relation with
other jobs in the organisation.
• (iii) To generate maximum development of human resources
within the organisation by offering opportunities for
advancement to employees through training and education.
• (iv) To ensure respect for human beings by providing
various services and welfare facilities to the personnel.
• (v) To ensure reconciliation of individual/group goals with
those of the organisation in such a manner that the
personnel feel a sense of commitment and loyalty towards it.
• (vi) To identify and satisfy the needs of individuals by
offering various monetary and non-monetary rewards.
• In order to achieve the above objectives, human
resource management undertakes the following
activities :
• (i) Human Resource Planning,
• (ii) Recruitment, selection and placement of
personnel
• (iii) Training and development
• (iv) Appraisal of performance of employees
• (v) Motivation of workforce
• (vi) Remuneration of employees.
• (vii) Social security and welfare of employees.
Objectives of HRM
Societal

Organizational

Functional

Individual/
Personal

HRM
Objectiv
es
Cont.,
• The societal objectives of HRM seek to ensure
that the organization becomes socially responsive.
• The organizational objectives make sure that
HRM is not a standalone department, but rather a
means to assist the organization reach its primary
objectives.
• Functional objectives remind the HRM that it has
only functional value and should not become too
expensive at the cost of the organization it serves.
• Personal objectives assist employees in
achieving their personal goals.
 Functions of HRM
Functions of HRM

Managerial Functions Operative Functions

Planning Staffing / Employment

Organizing Human Resources

Directing Development

Controlling Compensation & Benefits

Safety and Health

Employee & Labour

Relations

Recent Trends in HRM

Cont.,
• Managerial Functions

• Planning: (It is a predetermined course of action), in involves

planning of human resources, requirements, recruitment,
selection, training etc.

• Organizing: (It is essential to carry out the determined course

of action).

• Directing: The next logical function after completing planning

and organizing is the execution of the plan.

• Controlling: After planning, organizing & directing various

activities of Personnel Management.
Cont.,
• Operative Functions
• Staffing/Employment: The process through which an organization
ensures that it always has the proper number of employees with
the appropriate skills in the right jobs at the right time to achieve
the organization’s objective.
• Job Analysis

• Human Resource Planning

• Recruitment

• Selection

• Placement

• Induction and Orientation

Cont.,
• Human Resources Development: A major HRM functions that
consists not only of T&D but also individual career planning and
development activities and performance appraisal.
• Performance Appraisal

• Training & Development

• Management Development

• Career Planning & Development

• Internal Mobility (It consists of transfer, promotion &

demotion)

• Retention & Retrenchment Management

• Change and Organization Development.

Cont.,
• Compensation and Benefits: It is the process of
providing adequate, equitable and fair remuneration to
the employees.
• Job Evaluation

• Wages and Salary

• Incentives

• Bonus

• Fringe Benefits

• Social Security Measures (Non – financial rewards)

Cont.,
• Safety and Health: Safety involves
protecting from injuries caused by work –
related accidents. Health refers to the
employees’ freedom from physical or
emotional illness.
Cont.,
• Employee and Labour Relations:
Practicing various human resources policies
and programmes like employment,
development and compensation and
interaction among employees create a sense
of relationship between the individual worker
and management, among workers and trade
unions and the management.
Cont.,
• Recent Trends in HRM: Human
Resources Management has been
advancing at a fast rate. The recent trends
in HRM includes:
• Quality of work life

• Total quality in human resources

• HR accounting, audit and research and

• Recent techniques of HRM

Evolution and Growth of
HRM
• The history of development of HR management in India is
comparatively of recent origin.

• But “Kautilya” had dealt with some of the important aspects of

HRM in his “Arthasastra”, written in 400 B.C.

• Government in those days adapted the techniques of HRM as

suggested by “Kautilya”.He says that government must
provide a proper procedure for regulating employee and
employee relation

• In the medieval times there were examples of kings like

Allaudin Khilji who regulated the market and charged fixed
prices and provided fixed salaries to their people. This was
done to fight inflation and provide a decent standard of living.
Cont.,
• During the pre independence period of 1920 the trade union
emerged. Many authors who have given the history of HRM say
that HRM started because of trade union and the First World War.

• In its modern sense, it has development only since independence.

• Though the importance of labour officers was recognized as early

as 1929, the appointment of officers to solve labour & welfare
problems gained momentum only after the enactment of Factories
Act of 1948.

• Under Section 49 of the Act required the appointment of Welfare

Officers in companies employing more than 500 workers.

• The Second World War created awareness regarding workers

rights and 1940‘s to 1960‘s saw the introduction of new
technology to help workers.
• The 1960‘s extended the scope of human resource beyond
welfare.

• Now it was a combination of welfare, industrial relation,

administration together it was called personnel
management.

• With the second 5 year plan, heavy industries started and

professional management became important.

• In the 70‘s the focus was on efficiency of labour while in the

80‘s the focus was on new technology, making it necessary
for new rules and regulations.

• In the 90‘s the emphasis was on human values and

development of people and with liberalization and changing
type of working people became more and more important
there by leading to HRM which is an advancement of
personnel management.
Importance of the human factor
• Proper utilization of other resources – Help transform lifeless factors of
production into useful products
• Capable of enlargement – produce extraordinary things when inspired –
Can help organisation achieve results quickly, efficiently & effectively.
• The secret of their success is ―The way they treat their employees‖ - Sony

• Nestle CEO ―Every single person in the organization should ask himself or
herself – is there anything I can do to add a little more value to our
organization‖
• • ―How important are people treated in the Organization.‖
• Organization – acquires the services from the Employees, Develop
their Skills and motivate them to achieve the organization objectives.
• HR - Productivity , Quality Work Life & Profit.
• • ―The Enterprise is People , ―Organization need people and People need
Organization.‖
CHALLENGES IN HRM:
• Managing the Vision:
• Internal Environment:
• Changing Industrial Relations:
• Building Organizational Capability:
• Job Design and Organization Structure:
• Managing the Large Work Force:
• Employee Satisfaction:
• Modern Technology:
• Computerized Information System:
• Managing Human Resource Relations:
 Human Resource
Manager
• An individual who normally acts in an advisory
or staff capacity, working with other
managers regarding human resource matters.

• The human resource manager was primarily

responsible for coordinating the management
of human resources to help the organization
achieve its goals.
 Line Manager
• Individuals directly involved in accomplishing the
primary purpose of the organization.
• There was a shared responsibility between line manager
& HR professionals.
• Often the line manager goes to HR for guidance in topics
such as promotion, hiring, discipline, or discharge.
• Line managers often perform many of the staffing
functions previously accomplished by HR, such as
interviewing.
• Line manager must know how to deal effectively with
the union.
 Role of HR Manager
• Human Resource Manager plays a vital role in the
modern organization. He plays various strategic
roles at different levels in the organization.
• The role of the HR manager includes;
• The Conscience Role
• The Counselor
• The Mediator
• The Spokesman
• The Problem-solver
• The Change Agent
Cont.,
• The HR managers must exercise control very tactfully in
order to win the confidence and co-operation of all line
managers

• They have to persuade line managers to work with staff

specialists and not against them.

• The authority of the HR manager should derive from

concrete HR policies & programmes and from the
advantages and results of accepted specialized
knowledge.
Cont.,
• As a Source of Help: In certain situations
(when line managers lack skill or knowledge
in dealing with employee problems),
experienced HR managers assume line
responsibility for HR matters.
Cont.,
• As a Change Agent: HR Manager should
work as an enabler and change agent
regarding HR areas and he should be familiar
with different disciplines like management,
technology, sociology, psychology and
organizational behavior as organizational
adaptability, viability & development are
dependent on human resource development.
Qualifications and Qualities
of
HR Manager
• The functions of HR management vary from
org., to org., both in nature & degree. So the
qualifications required of a HR manager differ
from org., to org., depending on its nature,
size, location etc.
Cont.,
• Intelligence: this includes skills to communicate,
articulate, moderate, understand, tact in dealing with
people intelligently, etc.

• Educational Skills: HR manager should possess

learning & teaching skill as he has to learn and teach
employees about org., growth.

• Discriminating Skills: He should have the ability to

discriminate between right and wrong.
Cont.,
• Executing Skills: He / She is expected to
execute the management’s decisions regarding
personnel issues with speed, accuracy and
objectivity.

• Experience and Training: Previous experience

is undoubtedly and advantage provided the
experience was in an appropriate environment
and in the same area.
Cont.,
• Professional Attitudes: Finally, professional attitude
is more necessary particularly in the Indian context.

• Qualification: Qualifications prescribed for the post of

HR manager vary from industry to industry and from
State to State. However, the qualification prescribed
by various org., include MBA with HRM Specialization,
M.H.R.M, M.A.(IR&PM), M.P.M & P.G.D.P.M.
What is affirmative action?
• It is a program or policy of a company that
aims to eliminate discrimination by providing
equal opportunities and improving his /her
profession. (education)
• Affirmative action refers to policies that take
factors including "race, colour, religion, sex,
or national origin" into consideration in order
to benefit an underrepresented group,
usually as a means to counter the effects of a
history of discrimination.
• Examples of affirmative action

 Recruit a diverse manpower

 Generate amiable work environment
 Training and counselling
 Disciplinary action against discrimination of
any kind
What is Inclusive growth?
• Inclusive growth approach takes a longer term
perspective as the focus is on productive employment
• Examples More Productive jobs will be created Economic
opportunity expanded for all
– Direct income redistribution
– Increasing incomes for excluded groups
• INCLUSIVE GROWTH AND AFFIRMATIVE ACTION OF HR IN
AN ORGANISATION
• • Affirmative action should provide consistent, fair and
ethical leadership to meet present and future HR
challenges.
NEW TRENDS IN HUMAN
RESOURCE MANAGEMENT
 Attitude Surveys  Job Enlargement
 Better Communication  New approaches to
Channels compensation and rewards
 Change in the Work-Life  Career Planning
 Initiating and facilitating  Performance Appraisal
process of change
 Decentralisation
 Enlarging the knowledge
base  Breaking down the
 Developing team spirit hierarchical structure

 Facilitating the employees  Facilitating Empowerment

desires of self-actualisation.
 Job Redesign
Computer applications in
HRM

• Computer technology enables organizations

to combine human resource information into

a single database. This database is often

referred to as a human resource

information system (HRIS)

 Human Resource
Information System (HRIS)

• A human resource information system (HRIS)

is an integrated system designed to provide

information used in HR decision making.

 Definition for HRIS

• An HRIS may be defined as the system used to

acquire, store, manipulate, analyze, retrieve,

and distribute pertinent information regarding

and organization’s human resource.

Why does an Org., need
HRIS?
• An org., grow in size, the maintenance & use of emp., information
becomes more & more difficult.

• A second reason for the increase in HRISs is the rapid reduction in

the cost of computing.

• A third reason for the growth in HRISs is the need to produce

reports & monitor information on employees in order to comply
with legal requirements.

• Finally, as competition has increased, org., have realized that

managing their human resource is an important as managing their
financial & raw material resources.
 Objective of HRIS
• To acquire, store, manipulate, analyze, retrieve, and distribute the information

of human resource.

• To facilitate HR decision-making in the following areas:

• Man-power planning

• Recruitment & selection

• Employment, including promotion, transfer, etc.

• Education & training

• To provide relevant information on employees to government agencies as part

of the legal requirements.

 Uses of HRIS
1.
Hiring
6.
2.
Labour Education
relations

HRIS
3.
5. Cost
Benefit
control s
4.
Emp.,
Mgt
 Problems in
developing an HRIS
• HRIS may be expensive

• Threatening & inconvenient to those who are

not comfortable with computers.

• Employee privacy
 Computer
application in HRM
• Computer applications in strategic HRM an HR Planning.

• Computer application in Job Analysis

• Computer application in Recruitment

• Computer application in Selection.

• Computer application in HRD & Career Planning

Cont.,

• Computer application in Performance Appraisal

• Computer application in Compensation & Benefits

• Computer application in Health & Safety

• Computer application in Labour Relations

• Future applications of Computer in HRM

 Human Resource
Accounting
• Human resource accounting is the process of

identifying and measuring data about human

resources and communicating this information of

interested parties.

• It deals with investments in people and with

economic results of those investments.

 Definition for HR
Accounting
• According to Stephen Knauf defined HRA as
“the measurement and quantification of human
organizational inputs, such as recruiting, training,
experience and commitment.”

• Eric Flamholtz explained human resource

accounting as accounting for people as
organization resources. It is the measurement of
the cost and value of people for the organization.
Human Resource Audit
• An audit is a review and verification of
completed transactions to see whether
they represent a true state of affairs of
the business or not.

• Human Resource (HR) Audit refers to

an examination & evaluation of policies,
procedures & practices to determine the
effectiveness and efficiency of HRM.
HUMAN RESOURCE POLICIES
• ―A policy is a man-made rule of pre-
determined course of action that is
established to guide the performance of work
toward the organisation objectives. It is a
type of standing plan that serves to guide
subordinates in the execution of their tasks‖.
• ―is the man made rule of pre determined
course of action that is established to guide
the performance of work toward the
organization objectives.‖Yoder
• Personnel Polices refer to principles and rules
to conduct which “Formulate, redefine, break
into details and decide a number of actions ”
that govern the relationship with employees
in the attainment of organizational
objectives.
Need for a HR Policy
• Avoid unintended obligations
• Legal requirements
• Employment at will, contractual status
• Defence of claims
• Helps avoid union organizing
• Risk management
• Time save
Features of a sound HR Policy
• Definite, positive, clear and easy to understand
• Written
• Reasonable stable
• Supplementary to all other policies of the orgn and the
public policy.
Recognition and individual relationship between the
mgmt and the employees
• Based on the facts
• Provide two way communication
• Supported by the mgmt, employees and the union
• Progressive
• Measurable
• Uniform for the entire organization
Principles of HR policy
• Right man in the right place
• Train everyone for the job to be done
• Make the organisation a coordinated team