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Human Resource Mgt

Human Resource Management

 Introduction & Concept:-

It is not very easy to define precisely

Management, but it is essential to know what
Management means before we study Human Resource

Management has been defined by Mary Parker

Follett as, "the art of getting things done through
people." But Management is much more than what is
said in this definition. It is further defined as “......
Those fields of human behavior in which Managers
plan, organize, staff, direct and control human,
physical and financial resources in an organized effort,
in order to achieve desired individual and group
objectives with optimum efficiency and effectiveness."
[Quoted in Chandan J.S., Fundamentals of Modern

It is therefore clear that management is charged

with the responsibility of achieving planned individual
and group goals by a balanced utilization of physical
and financial resources through the efforts of human
resources. Human resource, therefore, becomes a
crucial subsystem in the process of Management. But
most of us are not clear what exactly Human
Resource means.

Human Resource Mgt

According to Leon C. Megginson, Human

Resources means "the total knowledge, skills, creative
abilities, talents and aptitudes of an organization’s
workforce, as well as the value, attitudes and beliefs
of the individuals involved." Therefore, Management
can procure and use the skill, knowledge and ability,
through the development of skills, using them again
and again. Therefore, it is a long term perspective
whereas personnel are a short term perspective.
 Nature of HRM:-
1. HRM involves management functions like
planning, organizing, directing and controlling

2. It involves procurement, development,

maintenance of human resource

3. It helps to achieve individual, organizational and

social objectives

4. HRM is a mighty disciplinary subject. It includes

the study of management psychology
communication, economics and sociology.

5. It involves team spirit and team work.

 Functions of Human Resources

There are two broad functions of H R M. They are

1. Managerial Functions
2. Operational Functions

Human Resource Mgt

1) Managerial Functions:
Managerial functions of Personnel
management include planning, organizing, directing,
co-ordinating and controlling.

 Planning:
It is the charting out of programmes and
changes in advance in the achievement of
organizational goals. Hence, it involves planning of
human resources requirements, recruitment,
selection, training etc. It also involves forecasting of
personnel needs, changing values, attitudes and
behaviors of their employees and their impact on the

 Organising:-
In the words of J.C. Massie, an organization is a
"structure and process by which co-operative
groups of human beings allocated its tasks
among its members, identifies relationships and
integrates its activities towards a common
objective." Given the complex relationships that
exist between specialized departments and the
general departments, many top managers seek
the advice of personnel manager. In this
manner, the organization establishes
relationships among the employees so that they
can together contribute to the achievement of
organizational goals.

 Directing:

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After planning and organizing comes the

execution of the plan. The willing and effective
co-operation of employees towards the
achievement of organization’s goal has to be
brought about by proper direction. Identifying
and utilizing maximum potentials of people is
possible through motivation and command.
Direction, therefore, is an important managerial
function in ensuring optimum employee

 Co-ordinating:
It is the task of matrixing various employees’
efforts to ensure successful goal achievement.
The Personnel manager co-ordinates various
managers at different levels as far as the
personnel functions are concerned.

 Controlling:
After planning, organizing, directing and co-
ordinating, the various activities, the
performance is to be verified in order to know, at
various points of time, whether the activities are
performed as per plans and directions. It
involves checking, verifying and comparing
actual with the plans, identification of deviations

Human Resource Mgt

if any and correcting the deviations. Auditing

training programmes, analysing labour turnover,
overseeing morale surveys, conducting exit
interviews are some of the controlling functions
of personnel management.

2) Operative Functions:
The operative functions of H R M relate to
employment, development, compensation and
relations. All these are interacted by managerial
functions. Also, they are to be performed in
conjunction with management functions.


Personnel Human Resources
Management Management

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1. Personnel means 1. Human Resources

persons employed. management is the
Personnel management of
management is the employees’
management of knowledge, abilities,
people, skills talents, aptitudes,
employed. creative abilities
2. Employee in 2. Employee in
personnel human resource
management is management is
mostly treated as an treated not only as
economic man as economic man but
his services are also as social and
exchanged for wage psychological man.
/ salary. Thus, the complete
man is viewed
under this approach.
3. Employee is 3. Employee is
viewed as a treated as a
commodity or tool resource.
or equipment which
can be purchased.
4. Employees are 4. Employees are
treated as cost treated as profit
centres and centres and
therefore therefore, invests
management capital for human
controls the cost of resource
labour. development and
future utility.
5. Employees are 5. Employees are
used mostly for the used for the
organisational multiple benefits of

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benefit. the organisation,

employees and their
family members.
6. Personnel 6. Human resources
function is treated management is a
as only an Auxiliary Strategic
function. Management
 Strategic Human Resources Planning:
The above description of HR planning takes the
organizational plans and goals as given, and
then commences the planning processes needed
for carrying out those plans. In most
organizations, HR planning (if it is undertaken at
all) follows this traditional approach and still is
called manpower planning. However, more
recent concepts of strategic human resource
planning emphasise a proactive role for HR
function in formulating strategic organisational
plans, as well as providing integrated
programmes to ensure effective implementation
of those plans.3

Many organisations that take on some

human resource forecasting do not have a
system for strategic human resource planning.
There is some evidence that a firm's
environment may affect the degree to which HR
planning activities are integrated with strategic
planning. Organisations that exists in unstable
environments, face stiff competition, and have
experienced staffing difficulties are more likely

Human Resource Mgt

to involve HR planners in corporate strategic

planning process. Involvement also seems to be
greater when the top HR person reports directly
to the CEO, has past line experience to provide
credibility and a broad view of the business, and
is backed up by an excellent human resource
information system (HRIS) that produces the
type of information needed in the strategic
planning process.

 Evolution and Development of Human

Resources Management:-

Human Resources Management involves all

management decisions and practices that
directly affect or influence people or human
resources, who work for the organisation. In
recent years, increased attention has been
devoted to how organisations manage human
resources. This increased attention comes from
the realisation that an organisation's employees
enable an organisation to achieve its goals, and

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the management of these human resources is

critical to the success of the organisation.

The term "world class" or ranking among

the foremost in the world, is used frequently as
the aspirations of organisations. In the context of
HRM, world class is indicated by an HR group
with a shared vision as to its constituents and
how best to serve them. Excellence in HRM is
characterised by a service orientation and a
willingness to be in partnership with
constituents. Specific earmarks of world class
HRM include:

• Having an HR vision oriented to strategic

needs of the organisation.
• Having a philosophy and values consistent
with those of the organisations.
• Being seen as a business unit within the
firm and operating the same way as other
units - having customers and quality
management etc.
• Being organised in a way that brings
maximum service to the customer and
maximum motivation to the HR staff.
• Having the best HR products available for
the customers.
• championing HR programmes that fulfill the
agenda of HR group and the customer.
• Having an HR vision that is actively shared
by the entire group.
• being a proactive and not a reactive group.
• being involved in key business issue

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• being seen as successfully treating a great

place to work.

The number of activities involved in HRM is

potentially large, depending on the size of the
organization and its needs.

The utilization of people, in a rudimentary

form, can be traced to ancient times. Efforts to
use talents, even though informal in nature,
were undertaken whenever people came
together in a community. The change has been
that during the course of the past century efforts
to best manage humus resources have become
more formal and specialized.

The history of HRM can be characterized as

moving through our broad phases:
• the craft system
• scientific management
• the human relations approach
• the current organizational science - human-
resource approach.

The Craft System:

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From the earliest times in Egypt and Babylon,

training in craft skills was organized to maintain an
adequate supply of craft workers. By 13"' century
craft training became popular in Western Europe.
Craft guilds supervised quality and methods of
production and regulated conditions of employment
for each occupation. The craft guilds were controlled
by master crafts worker, and the recruit entered
after a period of training as an apprentice. The crafts
system was best suited to domestic industry, the
master operated in his own premises with his
assistants residing and working in the same house

 Major activities of HRM carried out in any of the

Organization are-
1. Recruitment Management
2. Workforce Planning
3. Induction Management
4. Training Management
5. Performance Management
6. Compensation & Benefits
7. Attendance Management
8 .Leave Management
9. Benefits Management
10. Overtime Management
11. Pay slip Distribution
12.Timesheet Management
13.Employee Information/ Skill Management
14.Grievance Redressal
15.Employee Survey
16.Exit Interviews & Process
17.Health & Safety

Human Resource Mgt