Unit-1
Introduction to
HRM
Page 1

Contents
• HRM: Concept & Its Definition
• Importance of HRM
• Functions of HRM
• HRM Department: Organisation & Role
• HRM vs. HRD
• Limitations of HRM
• Challenges before HRM
Page 2

Human Resources…
• Are an organisation’s greatest assets
• All other resources get connected through men
• To make them deliver they need to be –
– Properly selected
– Properly trained
– Properly motivated
Page 3

Definitions of HRM
• Byers & Rue: “HRM is the function facilitating the most effective use of people to achieve both organisational and individual goals”
• Michael Jucious: “HRM is that field of management which deals with planning, organising & controlling the functions of procuring, developing, maintaining and utilising a labour force such that organisational & individual goals are fulfilled”
Page 4

HRM is
• Process of acquiring, training, appraising and compensating employees such that they are motivated to achieve both the organisational and individual goals
Page 5

Till now…
• HRM: Concept & Its Definition
• Importance of HRM
• Functions of HRM
• HRM Department: Organisation & Role
• HRM vs. HRD
• Limitations of HRM
• Challenges before HRM
Page 6

Importance of HRM
• Importance of human resources can be discussed at four levels:
– Corporate
– Professional
– Social
– National
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Page 7

Corporate
• HRM can help an enterprise in the following ways:
– Attracting talent through effective HRP
– Developing necessary skills & attitude with training
– Securing cooperation through motivation
– Retaining talent through the right policies
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Page 8

Professional
• HRM helps improve quality of work life and contributes to growth in the following ways:
– Opportunities for personal development
– Motivating work environment
– Proper allocation of work
– Healthy relationships between individuals & groups
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Page 9

Social
• Society benefits from good HRM in many ways:
– Good employment opportunities
– Development of human capital
– Generation of income & consumption
– Better lifestyles
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Page 10

National
• Drivers of development of a country
• Deliver economic growth
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Page 11

Till now…
• HRM: Concept & Its Definition
• Importance of HRM
• Functions of HRM
• HRM Department: Organisation & Role
• HRM vs. HRD
• Limitations of HRM
• Challenges before HRM
Page 12

Functions of HRM
• The process of HRM consists of 4 basic functions:
– Acquisition of human resources
– Development of human resources
– Motivation of human resources
– Maintenance of human resources
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Page 13

Acquisition Function
• Process of identifying and employing people possessing required level of skills
– Job Analysis
– HRP
– Recruitment
– Selection
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Page 14

Development Function
• Process of improving, moulding and changing the skills, knowledge and ability of an employee
– Employee Training
– Management Development
– Career Development
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Page 15

Motivation Function
• Process of integrating people into a work situation in a way that it encourages them to perform / deliver to the best of their ability
– Understanding needs
– Designing motivators
– Monitoring
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Page 16

Maintenance Function
• Process of providing employees the working conditions that help maintain their motivation and commitment to the organisation
– Satisfaction Levels
– Retention
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Page 17

Till now…
• HRM: Concept & Its Definition
• Importance of HRM
• Functions of HRM
• HRM Department: Organisation & Role
• HRM vs. HRD
• Limitations of HRM
• Challenges before HRM
Page 18

Organisation of HRM
Department
DIRECTOR
(HRD)
HR PLANNING
MANAGER
(PERSONNEL)
MANAGER
(ADMINISTRATION)
WELFARE
TRAINING &
DEVELOPMENT
MANAGER
(HRD)
RECRUITMENT
&
SELECTION
LEAVE RECORDS
PERFORMANCE
APPRAISAL
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Page 19

Role of HR Manager
• Job Design / Job Analysis
• Human Resource Planning
• Recruitment & Selection
• Training & Development
• Performance Appraisal
• Compensation / Benefits
• Personnel Information Systems
• Employee Motivation / Assistance
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Page 20

Till now…
• HRM: Concept & Its Definition
• Importance of HRM
• Functions of HRM
• HRM Department: Organisation & Role
• HRM vs. HRD
• Limitations of HRM
• Challenges before HRM
Page 21

HRM vs. HRD
• HRM is the process of effectively employing people in an organisation
• HRD is the process of training & development of employees to make them effective
• HRD is an important subset of HRM
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Page 22

Till now…
• HRM: Concept & Its Definition
• Importance of HRM
• Functions of HRM
• HRM Department: Organisation & Role
• HRM vs. HRD
• Limitations of HRM
• Challenges before HRM
Page 23

Limitations of HRM
• HRM only a ‘support function’!
• Training programs only a ‘cost’!
• Not an ‘as & when needed’ function!
• Not specifically qualified / trained people!
• Inadequate information systems / records!
• Misunderstood as HRD!
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Page 24

Till now…
• HRM: Concept & Its Definition
• Importance of HRM
• Functions of HRM
• HRM Department: Organisation & Role
• HRM vs. HRD
• Limitations of HRM
• Challenges before HRM
Page 25

Challenges before HRM
• Globalisation (More productivity)
• Technological Trends (New skill set)
• Increasing Service Sector (Customer
Interface)
• Working Trends (9 to 9!)
• Demographic Trends (Young India!)
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Page 26

Summary (Unit – 1)
• HRM: Concept & Its Definition
• Importance of HRM
• Functions of HRM
• HRM Department: Organisation & Role
• HRM vs. HRD
• Limitations of HRM
• Challenges before HRM
Free Powerpoint Templates
Page 27