HUMAN RESOURCE
MANAGEMENT
UNIT I
Periods:12
PERCEPTIVE IN HUMAN
RESOURCE MANAGEMENT
- Evolution of human resource management
– The importance of the human factor
– Objectives of human resource
management
– Role of human resource manager
– Human resource policies
– Computer applications in human resource
management
– Human resource accounting and audit.
Human Resource
Management
 4Ms
 Human (living) and non-human (nonliving)
 Human that make use of non-human
resources. So people are most
important.
 Right people for right job
 HR appreciates other resources
depreciate
Meaning and Definitions
Human Resources
1. Michael J.Jucius has defined human
resources as “a whole consisting of
inter-related, inter-dependent and
interacting physiological,
psychological, sociological and ethical
components”
2. From the national point of view,
human resources are knowledge,
skills, creative abilities, talents and
attitudes obtained in the population;
whereas from the view- point of the
individual enterprises, they represent
the total of the inherent abilities,
acquired knowledge and skills as
exemplified in the talents and aptitude
of its employees.
-Leon.C.Megginson
3. Human resources are human capital and are
categorised into intellectual capital, social
capital and emotional capital.

Intellectual capital consists of specialised
knowledge, tacit knowledge and skills,
cognitive complexity and learning capacity.
 Social capital is made up of network of
relationships, sociability and trustworthiness.
 Emotional capital consists of self-confidence,
ambition and courage, risk-bearing ability
and resilience.
- Sumantra Ghosal
Human Resource Management
1. “Personnel management is the
planning, organising, directing and
controlling of the procurement,
development, compensation,
integration, maintenance and
separation of human resources to the
end that individual, organisational and
social objectives are accomplished”.
-Flippo
2. HRM is defined as the part of
management which is concerned with
people at work and with their relationship
within an enterprise. Its aim is to bring
together and develop into an effective
organisation of the men and women who
make up an enterprise and having regard
for the well-being of the individuals and
of working groups, to enable them to
make their best contribution to its
success.
-National Institute of Personnel Management (NIPM)
3. HRM is concerned with the people
dimension in management. Since every
organisation is made up of people,
acquiring their services, developing their
skills, motivating them to higher levels of
performance and ensuring that they
continue to maintain their commitment to
the organisation are essential to
achieving organisational objectives. This
is true, regardless of the type of
organisation – government, business,
education, health, recreation or social
action.
- Decenzo and Robbins
DIFFERENCE BETWEEN PERSONNEL
MANAGEMENT AND HUMAN RESOURCE
MANAGEMENT
 3 main differences,
1. HRM emphasizes not just on rule
and contract but beyond them
2. HRM focuses on strategy
3. It focuses on individualization of
employee relations
DIMENSION
PM
HRM
Employment contract written
Beyond it
Rules
Devising
Do outlook
Guide to mgt action
Procedures
Business need
Behaviour referent
norms
Values/mission
Mgrl. task
monitoring
nurturing
Key relations
Labour mgt
customers
initiatives
piecemeal
Integrated
Speed of decision
slow
Fast
Mgt role
transactional
Transformational
Skill acquisition
T&D
Learning orgn.
communication
indirect
Direct
Reward mgt.
Std job evaluation
Performance related
Prized mgt skills
negotiation
Facilitation
OBJECTIVES OF HRM
The primary objective - to ensure the availability of
right people for right jobs
Sub objectives are,
1. To provide competent and motivated employees to
achieve goal
2. To utilise human resources effectively
3. To increase employee’s job satisfaction and self
actualisation
4. To develop and maintain QWL
5. To maintain ethical policies and behaviour
6. To maintain cordial relations between employees and
management
7. To reconcile individual/group goals with organisational
goals

HRM Objectives
Supporting functions
1. Social objectives
1.
2.
3.
Legal compliance
Benefits
Union-mgt relations
2. Orgnl. Objectives
1.
2.
3.
4.
5.
6.
HR Planning
Employee relations
Selection
T&D
Appraisal
Placement
7.
Assessment
3. Function objectives
5,6,7 of above
4. Personal objectives
4,5,6,7 and
compensation
SCOPE OF HRM
CONTROL
HR audit,
HR accounting
HRIS
HRM
MAINTENANCE
Remuneration
Motivation
Health & safety
Social security
Industrial relations
Performance appraisal
ACQUISITION
HR planning
Recruitment
Selection
Placement
DEVELOPMENT
Training
Career development
Internal mobility
NIPM specified the scope of HRM as,
1. The labour or personnel aspect (man
power planning, recruitment, selection,
placement, transfer, promotion, T&D, layoff and retrenchment, remuneration,
incentives, productivity)
2. Welfare aspect (working conditions,
amenities – canteen, creches, rest and
luch rooms, housing, transport, medical
assistance, education, health and safety,
recreation facilities)
3. Industrial relations aspect (union
management relations, joint consultaion,
collective bargaining, grievance and
disciplenary action, settlement of disputs)
FUNCTIONS OF HRM
 1. MANAGERIAL FUNCTIONS
 2. OPERATIVE FUNCTIONS
Planning
1. MANAGERIAL
FUNCTIONS
Organising
Directing
Controlling
Job analysis, HR planning,
recruitment, selection, placement,
induction, transfer, promotion,
separation
Procurement
OPERATIVE
FUNCTIONS
Development
Compensation
Integration
Maintenance
PA, Trg., Exe Devt.,
career planning and devt.
Job evaluation, wage and salary
Admn., bonus and incentives,
payroll
Motivation, JS,greivance
redressal, collective bargaining,
Conflict Mgt., emp participation,
discipline
Health, safety, social security,
Welfare schemes, personnel
records, research and audit
EVOLUTION OF HRM
 Mgt. of people in the orgns.–v.old
 Industrial revolutions in 1850s in
Europe and USA
 Arthashastra – 320 BC.
 Beginning of 20th century. With
labour welfare in factories since1920s
ERAs
1.
2.
3.
4.
5.
6.
7.
Trade union movement era
Social responsibility era
Scientific management era
Human relations era
Behavioural science era
Systems approach era
Contingency approach era
Period
Devt.
status
Outlook
Emphasis
Status
1920-30s Beginning
Pragmatism Statuory,
of capitalists welfare,
paternalism
Clerical
40s-60s
Struggling
for
recognitio
n
Technical,
legalistic
Administ
rative
70s-80s
Impressin Professional
g with
, legalistic,
sophisticat impersonal
ion
1990s
Promising
Introduction
of
techniques
Regulatory
Manager
conformance ial
, standards
on functions
philosophica Human
l
values,
productivity
thru people
executiv
e
ENVIRONMENT OF HRM
 Affects HR activities
 Two types: internal and external
environments
 INTERNAL ENVIRONEMENT
1. Unions
2. Organisational culture and conflict
3. Professional bodies
 EXTERNAL ENVIRONMENT
1. Economic
2. Political : legislature, executive,
judiciary
3. Technological
4. Demographic
Strategic HRM
 A strategic look at HR functions in line
with the business functions of an
organisation.
 1. analyse the opportunities and
threats in the external environement
 2. formulate strategies using SWOT
 3. Implement
 4. evaluate and control activities to
ensure the achievement of objectives.
HUMAN RESOURCE POLICIES
 Policy is a plan of action
 It is a statement of intention committing
the management to a general course of
action
 Expresses the philosophy and principles
 Different from principle or objective
 Objective : it is the intention of the
company to provide a safe plan and a
healthy working condition
 But policy statement is very specific.
 Eg: to institute every practical
method for engineering safety into
our process and equipment, to
provide protective clothing where
necessary, to train employees in safe
operating procedures.
 But not to spell out procedure. The
procedure is a method for carrying
out a policy.
 Policy of hiring people
 Policy on terms and conditions of
employment
 Policy on medical, housing, transport,
uniform, allowances, training and
development , IR
Formulating policies
5 sources
Past practice
Practices in rival coys
Attitudes and philosophy of founders
and top mgt.
4. Attitudes and philosophy of MM,LM.
5. Knowledge and experience gained

1.
2.
3.
 Stable, but not rigid.
 Reflect the goals and values of the
organisation. Not isolated one.
Principles
 Policy is a guideline and principle is
the truth based on research.
Principles guide to formulate policies,
programmes, procedures and
practices.
HR principles are,
1. Principle of individual devt.
2. Principle of scientific selection
3. Principle of free flow of commn.
4. Principle of participation
5. Principle of fair remuneration
6. Principle of incentive
7. Principle of dignity of labour
8. Principle of labour mgt cooperation
9. Principle of team spirit
10. Principle of contribution to national
prosperity
HR COMPETENCY MODEL
BUSINESS MASTERY
•Business acumen
•Customer orientation
•Knowledge
•External relations
HR MASTERY
•Staffing
•PA
•Reward sys
•Commn.
•Orgn. design
PERSONAL CREDIBILITY
•Competence
•Credentials
•Trust
•Ethical conduct
•courage
CHANGE MASTERY
•IP skills
•Problem solving
•Reward sys
•innovation
Skills of a HR manager
 technical, cognitive and interpersonal
skills
 commn, empathy, tolerance,
pleasant, confident, love
 Know HR policies, practice
 Multi-knowledgeable ,
 Play strategic role
HRM MODELS




Provide analytical framework
Legitimise HRM practices
Provide characterisation of HRM
Serve as heuristic device
4 HRM MODELS
1.
2.
3.
4.
Fombrun model
Harvard model
Guest model
Warwick model
1. Fombrun model
 Not considered environmental factors
HRD
Selection
Appraisal
Reward
OE
Harvard model