PRESTIGE INSTITUTE OF
MANAGEMENT AND
RESEARCH
MODULE-1
INTRODUCTION TO
HRM
INTRODUCTION TO HRM
An organisation is made up of five resources men, money,
material , method and machinery. Of these the first one is
living one, i.e human and the other four are non – living
i.e non- human. It is human/people that make use of non-
human resources . Hence people are the most significant
resources in an organisation.
L.F Urwick had remarked that “Business houses are made
or broken in the long run not by markets or capital, patents
or equipments but my Men”
Cont.......
According to Peter F. Drucker . Man of all the
resources available to man , can grow and develop.
Human resources differ from non human resources in
other respect also. Human resources are
heterogeneous in the sense that they differ in their
personality , perception , emotions , values , attitudes ,
motives and mode of thoughts. Their behaviour to
stimuli is often inconsistent and unpredictable .
cont.......
While other resources depreciate , human resources
appreciate with the passage of time. Better educated ,
more skilled , better aware of their interest and rights are
some distinguishing features of modern human resources.
So we can say that , the human resource is a resource like
any other natural resource. It is the aggregate of inherent
abilities , acquired knowledge's and skills represented by
the talents and aptitudes of the employed person in an
organization.
MEANING
HRM can be defined as a process of procuring
, developing and maintaining competent human
resources in the organization so that the goals
of an organization are achieved in an efficient
and effective manner . In short , HRM is an art
of managing people at work in such a manner
that they give their best to the organisation for
achieving its set goals.
Definitions
“Human resources management encompasses those
activities designed to provide for and coordinate the
human resources of an organization.”
BYARS AND RUE
Human resource management is the function
performed in organizations that facilitates the most
effective use of people to achieve organizational and
individual goals.
GLUEK
DEFINITIONS
According to Flippo – “Human resource
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.
OBJECTIVES
The primary objectives of HRM is to ensure the
availability of right people for the right jobs so as the
organisational goals are achieved effectively.
1. To help the organization to attain its goals
effectively and efficiently by providing competent
and motivated employees.
2. To utilize the available human resources effectively.
3. To increase the fullest the employees job satisfaction
and self actualisation.
OBJECTIVES
4) To help maintain ethical policies and
behaviour inside and outside the organisation.
5) To establish and maintain cordial relations
between employees and management.
6) To reconcile individual/group goals with
organisational goals.
FUNCTIONS
The function of HRM is based on what managers do .
The functions performed by the mangers are common
to all the organisation . The functions performed by
the human resource management can be broadly be
classified into two categories.
FUNCTIONS
MANAGERIAL OPERATIVE
FUNCTION FUNCTION
MANAGERIAL FUNCTION
PLANNING
ORGANISING
MANAGERIAL
STAFFING
DIRECTING/ LEADING
CONTROLLING
OPERATIVE FUNCTION
JOB MAINTEN
PROCUREMENT DEVELOPMENT COMPENSATION INTEGRATION
ANCE
Job analysis Performance Job evaluation motivation Health
HR Appraisal wage and salary job satis.. safety
Planning Training administration Grievance social security
Recruitment Executive redressal welfare scheme
Selection Development Bonus and collective
Placement Career incentives bargaining personal records
Induction Planning & conflict & personnel research
Transfer Development payrol management personnel audit
Promotion participation of
Separation of employees
Discipline
MANAGERIAL
FUNCTION
PLANNING
Planning is a predetermined course of actions . It
is a process of determining the organisational goals
and formulation of policies and programmes for
achieving them. Thus planning is future oriented
concerned with clearly charting out the desired
direction of business activities in future .
Forecasting is one of the important elements in the
planning process . Other function of managers
depend on planning function .
ORGANISING
Organising is a process by which the
structure and allocation of jobs are
determined thus organising involves giving
each subordinate a specific task , establishing
departments, delegating authority to
subordinates . Establishing channels of
authority and communication , coordinating
the work of subordinates and so on.
STAFFING
This is the process by which managers select,
train , promote and retire their subordinates .
This decide what type of people should be
hired , recruiting prospective employees ,
selecting employees, setting performance
standard , compensating employees, evaluating
performance , counselling employees, training
and developing employees.
DIRECTING/ LEADING
Directing is the process of activating
group efforts to achieve the desired goals.
It includes activities like getting
subordinates to get the job done ,
maintaining morale, motivating
subordinates etc. For achieving the goals
of the organisation.
CONTROLLING
It is the process of setting standards
for performance , checking to see
actual performances compares with
these set standards , and taking
corrective action as needed.
OPERATIVE
FUNCTION
PROCUREMENT
It involves procuring the right kind of
people in appropriate number to be placed
in the organisation . It consist of activities
such as manpower planning, recruitment ,
selection , placement and induction or
orientation of new employees.
DEVELOPMENT
This function is involves activities meant to improve
the knowledge , skills , aptitudes and values of
employees so as to enable them to perform their jobs
in a better manner in future . These function may
comprise training to employees , executive training to
develop managers , organisation development to strike
a better fit between organisational climate/culture and
employees.
COMPENSATION
Compensation function involves
determination of wages and salaries matching
with contribution made by employees to
organisational goals. In other words , this
function ensures equitable and fair
remuneration for employees in the
organisation. It consists of activities such as
job evaluation , wage and salary administration
, bonus , incentives etc.
MAINTENANCE
It is concerned with protecting and promoting
employees while at work. For this purpose ,
various benefits such as housing , medical ,
educational , transport facilities etc. Are
provided to the employees. Several social
security measures such as provident fund,
Pension , gratuity , group insurance etc are
also arranged.
IMPORTANCE OF HRM
Attract and retain talent.
Train people for challenging roles.
Develop skills and competencies.
Promote team spirit
Develop loyalty and commitment.
IMPORTANCE
Increase productivity and profit.
Improve job satisfaction.
Enhance standard of living.
Generate employment
opportunities.
HRM (ASTD) MODEL
“In recent years there has been relative agreement
among HRM specialists as to what constitutes the
fields of HRM. The model that provided the focus was
developed by the American Society for Training and
Development (ASTD). In its study, ASTD identified
nine human resource areas.
Organization
Training and
MODEL
development
development
Organisation
Job
design
Union/labour
relations
HUMAN RESOURCES
AREAS Human
OUTPUTS:-- TY resource
•QUALITY WORK LIFE planning
•PRODUCTIVITY
Employee •READINESS FOR CHANGE
assistance
Selection &
Personal Staffing
Compensation research
Benefits And
Information
‘system
AREAS OF HRM MODEL
TRAINING AND DEVELOPMENT
The focus of this area is identifying,
assessing and through planned
learning , helping develop the key
competencies which enable
individuals to perform current or
future jobs.
ORGANIZATION AND DEVELOPMENT
Its main focus is on assuring
healthy inter and intra
relationships and helping
groups initiate and manage
changes.
ORGANIZATION / JOB DESIGN
The main focus is defining how
tasks, authority and systems will
be organized and integrated
across organization units and in
individual jobs.
HUMAN RESOURCE PLANNING
Human resource planning
focuses on determining the
organization’s major Human
Resource needs , strategies
and philosophies.
SELECTION AND STAFFING
The main focus of selection
and staffing is matching
people and their career needs
and capabilities with job and
career paths.
PERSONNEL RESEARCH AND
INFORMATION SYSTEM
Its main focus is on assuring
a personnel information base.
COMPENSATION/ BENEFITS
The focus of this area is assuring
fairness and consistency in
compensation and benefits.
EMPLOYEE’S ASSISTANCE
Employee’s Assistance
focuses on providing personal
problem solving, counselling
to individual employees.
UNION / LABOR RELATIONS
Union / labour relation focus
on assuring healthy union /
organization relationship.
Cont........
These nine Human resource areas
have been termed as” Spokes of wheel
“. Each area impacts on the Human
Resource Output.
• QUALITY WORK LIFE.
• PRODUCTIVITY.
• READINESS FOR CHANGE.
QUALITY OF WORK LIFE
QWL as a process of work organisation which
enables its members at all levels of to actively
participate in shaping the organisation's
environments, methods and outcomes. This
value based process is aimed towards meeting
the twin goals of enhanced effectiveness of
organisation and improved quality of life at
work for employees.
Cont.......
Quality of work life efforts are
systematic efforts made by an
organisation to give its employees a
greater opportunity to affect the way in
which they do their jobs and the
contributions they make to the overall
effectiveness of their organisation.
PRODUCTIVITY
Productivity is the ratio between the output of the
wealth produced and the input of resources used in the
process of any economic activity. The welfare of
individuals, the growth of enterprises and the
development of the national economies are largely
dependent on their comparative productivity. There
always a scarcity of input of resources and each input
processes certain inherent “input creativity” which is
translated into output.
READINESS FOR CHANGE
Change in general , indicates any act of
making something different . The
dynamic nature of the external
environment in which organizations
operate requires them to take a proactive
approach to change. The change may be
of any type in the organisation .
CONT.......
It might be getting a new boss, installing
a computer system for the first time etc.
Change is inevitable in the business world
and survival of organizations depends on
their adaptability. Therefore it becomes
necessary for them to predict change and
be prepared for it.
HR ROLES
The process of recruiting suitable candidates for the
organisation.
Identifying and meeting the training needs of existing
staff.
Ensuring employee welfare and employee relations
are positive.
Ensure the working environment is safe for
employees.
The Human Resources Department also
covers five key roles.
Executive role – In this role the HR department are
viewed as the specialists in the areas that encompass
Human Resources or people management.
Audit role – In this capacity the HR department will
check other departments and the organisation as a
whole to ensure all HR policies such as Health &
Safety, Training, Staff Appraisal etc are being carried
out in accordance with the company’s HR policy.
CONT..........
Facilitator role – In this role, the HR department help or
facilitate other departments to achieve the goals or standards
as laid out in the HR policies of the organisation. This will
involve training being delivered for issues that arise in the
areas relating to people management.
Consultancy role – The HR department will advise managers
on how to tackle specific managing people issues
professionally.
Service role – In this capacity the HR department is an
information provider to raise awareness and inform
departments and functional areas on changes in policy.
THANK
YOU