MODULE 3

DEFINITION OF HUMAN RESOURCE MANAGEMENT

“ Human resource management is the planning,
organizing, directing and controlling of the
procurement, development, compensation,
integration, maintenance and reproduction of
human resource to the end that individual,
organizational and societal objective are
accomplished.”
According to Institute of personnel
management(U.K.)

“ Personnel management is an integral but

distinctive part of management concerned with
people at work and their relationship within the
enterprise. It seeks to bring together into an
effective organization the men and women who
staff the enterprise enabling each to make his/her
best contribution to its success, both as a member
of a working group and as an individual”.

NATURE OF HUMAN RESOURCE MANAGEMENT

1. Integral part of the process of management
2. Comprehensive Function
3. Pervasive Function
4. People Oriented
5. Based on human relations
 HRM
(i) Stresses the solution of personnel problems to
achieve both organizational objectives and
employees ‘ personal goals’.
(ii) Considers every employee as an individual so as
to provide services and programmers to facilitate
employee satisfaction and growth.
(iii) Concerns itself with developing the potential of
employee so that they get maximum satisfaction
from their work and give their best efforts to the
organization. For this purpose it has to take into
account the interests, personality and capacity of
employees.
(iv) Attempts to obtain willing cooperating of the
employees for the attainment of desired
objectives.
(v) Considers the emotions and sentiments of
employees. People have different needs.
Perceptions and expectations. Its therefore,
necessary to handle them tactfully. Human
relations skills are required to deal with the
people at work.
6.Continuous process.
7. Science as well as Art.
8.Recent origin.
9.Interdisciplinary.
10. Basic to all functional Areas.
T.V. Rao suggests the following essential elements of HRM:
(i) Employees enjoys their work.
(ii) Employees have a sense of accomplishment in
and through their work.
(iii) Employees have a high sense of belonging to
their organization and their work place.
(iv)Employees feel that they are respected as
individuals and their contributions are valued.
(v) Employees have a feeling to enhance their
competence and perform more challenging
and satisfying tasks.
(vi) Instead of spending time in satisfying their
needs, employees contribute to the
organizational tasks and goals.
NEED FOR HRM APPOACH
1. Better industrial relations.
2. Develop organizational commitment
3. Coping with changing environment.
4. Change in political philosophy.
5. Increased pressure on Employees.
HRM VS HUMAN RESOURCE
DEVELOPMENT
T.V. Rao and dual puree have given six dimensions of human resource
development.
(i) Performance appraisal
(ii) Potential appraisal
(iii) Employee counseling
(iv) Career development and planning
(vi) Training
(vii) Organizational development.
HRM AND PERSONNEL MANAGEMENT
“Personnel management is the planning, organizing,
directing and controlling of the procurement, development ,
compensation, integration and maintenance of people for
the purpose of contributing to organizational, individual
and social goals.”

SCOPE OF HUMAN RESOURCE

MANAGEMENT
(i) Setting general and specific
management policy for
organizational relationship and
establishing and management a
suitable organization for
leadership and cooperation.
(ii) Collective bargaining, contract
negotiation, contract
 administration and grievance
handing.
(iii) Aiding in the self development
of employees at all level providing
opportunities for personal
development and growth as well
as for acquiring requisite skill and
experience.
(iv) Reviewing and auditing
manpower management in the
organization .
(v) Developing and maintaining
motivation for workers by
providing incentives.
(vi) Staffing the organization finding,
getting and holding the prescribed
types and number of workers.
(vii) Industrial relations research-
carrying out studies designed to
explain employee behaviors and
there by effecting improvement in
manpower management.
 SCOPE OF HUMAN RESOURCE MANAGENENT
1. The personnel Aspect.
2. The welfare Aspect.
3. The Industrial relations Aspect.
which include:
• Objectives of HRM
• Organization of HRM
• Strategic HRM
• Employment
• Development
• Wage and salary
administration/compensation
• Maintenance
• Motivation
• Industrial relations
• Participative management and
• Recent Developments in HRM.

HRM has a crucial role to play in

the organization, so following
functions can be associated with
HRM.
1. Identifying and developing
persons.
 2. Retaining suitable persons.
3. Creating work culture.
4. Educating managerial
personnel.
5. Conducting research.
6. Developing a communication
system.
LIMITATIONS OF HUMAN RESOURCE MANAGEMENT

1. Lack of top management support.

2. Improper implementation.
3. Inadequate information.

Human resource management

systems.
PRODUCTION
SUBSYSTEM

HRM
SUBSYSTEM
RESEARCY &
DEVELOPMENT
SUBSYSTEM
FINANCIAL
SUBSYSTEM

MARKETING
SUBSYSTEM
Meaning and definition of strategic HRM
“Strategic HRM is the pattern of planned of human resource
development are actives intended to enable an organization to
achieve its goals.”
“Strategic HRM is the linking of HRM with strategic goals and
development organizational cultures that foster innovation and
flexibility.”
“Strategic HRM is to ensure that HRM is fully integrated into
strategic planning, the HRM policies cohere both across policy
areas and across hierarchies and that HRM policies are
accepted and used by line managers as part of their everyday
work”.
COMPETENCIES OF HR PROFESSIONALS
Since strategic HRM has become very important for the modern organizations,
the HR professional are required to be:
• Responsive to a highly competitive
workplace and global business
structures.
• Closely linked to business
strategic plans,
• Jointly concerned and
implemented by both line and HR
managers and
• Focused on quality, customer
service, productivity, employee
involvement, teamwork and work
force flexibility.
Ulrich D. Brock bank W. and young A in their paper ‘HR competencies in the
1990’s have illustrated these competencies as follow
MANAGING CHANGE
PROCESSES
Diagnosis, influence
Contracting, intervention
Problem solving
Relationships HUMAN
RESOURCE
Staffing development
BUSINESS appraisal, rewards,
CAPABILITIES organization planning,
*Financial communication.
* strategic
* Technological

These competencies are discussed as follows:

(i)Business capabilities.
(ii)HRM practices.
(iii) Management of change process.
HR’s Role in formulating strategy
HR’s Role Implementing strategy
Implementation has traditionally been the heart of
HR’s strategic role a form’s functional strategic
should support its competitive strategic.
HR problem while implementing strategies
may arise due to the following reasons.
-Disruption of social and political structures.
- Failure to match individuals aptitude with
implementation tasks.
-Inadequate top management support for
implementation activities.
TRADITIONAL HR VS. STRATEGIC HR
1. The focus of traditional HR is on employee relations whereas in strategic
HR the focus is on partnership with internal and external groups.
2. Traditional HR is transactional in nature, whereas strategic HR is
transformational in nature in that it helps people and the organization to
adopt, learn and act quality.
 3. The initiatives of employees in traditional HR are show, reactive and
fragmented whereas in strategic HR these are fast, proactive and
integrated.
4. Traditional HR is characterized by tight controls and excessive
regulations, whereas in strategic HR, operations are controlled by
whatever is necessary to succeed and control systems are modified as
needed to meet the changing conditions.

Features of human resource management

Features of human management include:
- Human resources management is concerned
with employees both as individuals and as a
group in attaining goals. Its is also
concerned with behaviors, emotional and
social aspects of personal.
- It is concerned with the development of
human resources, I. e. knowledge
capability , skills, potentialities and
attaining and achieving employee goals
including job satisfaction.
- Human resources management covers all
level (low,middle,and top)and categories
(unskilled, skilled, technical, professional,
clerical and managerial)of employees. Its
covers both organized and unorganized
employees.
- Its applies to the employees in all types of
organization in the world (industry, trade,
service, commerce, economic, social,
religious, political and government
department). Thus ,its is common in all types
of organizations.
- Human resource management is a
continuous and never ending process.
- Its aims at attaining the goals of
organization, individual and society in an
integrated approach.
- Organization goals may include survival,
growth and development in addition to
profitability productivity innovation
excellence etc.
- Individual employee-goals consist of job
satisfaction, job security high salary
,attractive fringe benefits, challenging work,
pride, status, recognition, opportunity for
development etc.
- Goals of the society include equal
employment opportunity the disadvantaged
section and physically handicapped
minimization of inequalities in the
distribution of income by minimizing wage
differenentials developing the society in
general by organization developmental
activities etc.
- It is concerned mostly with managing human
resources at work.
1. Managerial functions

Functions of HRM

Managerial functions Operative functions

Planning Employment
Organizing Human resources development
Directing Compensation
Controlling Human relations
Industrial relations

Recent Trends in HRM

1 Employment (i) Job Analysis:

• Collection of data, information, fact and
ideas relating to various aspects of jobs
including man, machines and materials.
• Preparation of job description, job
specifications, job requirements and
employee specification which will help in
identifying the nature level and quantum of
human resources.
• Providing the guides, plans and basis for job
design and for all operative functions of HRM
(ii) Human Resource Planning:
• Estimation of present and future requirement
and supply of human resource based on
objectives and long range plans of the
organization.
• Calculation of net human resource
requirement based on present inventory of
human resources.
• Taking steps to mould, change and develop
the strength of exiting employees in the
organization so as to meet the future human
resource requirement.
• Preparation of action programmers to get the
rest of human resource from outside the
organization and to develop the human
resources in terms of exiting employees.
(iii) Recruitment:
• Identification of existing sources of
applicants and development them.
• Creation/identification of new sources of
applicants.
• Stimulating the candidates to apply for jobs
in the organization.
• Striking a balance between internal and
external sources.
(iv) selection:
• Framing and developing application blanks.
• Creating and developing valid and reliable
testing techniques.
• Formulating interviewing techniques.
• Checking of references.
• Setting up a medical examination
policy and procedure.
• Line managers decision.
• Sending litters of appointment and
rejection.
• Employing the selected candidates who
report for duty.
(v) Placement:
 * Counseling the functional managers
regarding placement.
* Conducting follow-up study,
appraising employee performance in
order to determine employee
adjustment with the job.
Correcting misplacements, if any.

(vii) Induction and orientation:

• Acquaint the employee with the company
philosophy, objective, policies, career
planning and development, opportunities,
product, market share, social and
community standing, company history,
culture etc.
• Introduce the employee to the people with
whom he has to work such as peers
supervisors and subordinate.
• Mould the employee rarities by orienting
him to the new working and social
environment.
2. Human resource development
(i) Performance appraisal:
* Developing policies, procedures and techniques.
*Helping the functional managers.
* Reviewing of reports and consolidation of reports.
* Evaluating the effectiveness of various
programmers.
(ii) Training:
* Identification of training needs of the individuals
and the company.
• Developing suitable training programmers .
• Helping and advising line management in the
conduct of training programmers .
• Imparting of requisite job skills and
knowledge to employee.
• Evaluating the effectiveness of training
programmers.
(iii) Management development
• Identification of the areas in which
management development is needed.
• Conducting development programmers.
• Motivating the electives.
• Designing special development programmers
for promotions.
• Using the service of specialists and/or
utilizing of the institutional executive
development programmers.
• Evaluating the effectiveness of executive
development programmers.
(iv) Career planning and development:
(v) Internal mobility:
(vi) Transfer:
• Developing transfer policies and procedures.
• Guiding employees and line management on
transfers.
• Evaluating the execution of transfer policies
and procedures.
(viii) Promotion:
 • This function covers the formulating of
equitable, fair and consistent promotion
policies and procedures.
• Advising line management and employees on
matters relating to promotions.
• Evaluating the execution of promotion
policies and procedures.
(ix) Demotion:
• Develop equitable, fair and consistent
demotion policies and procedures.
• Advising line managers on matters relating to
demotions.
• Oversee the implementations of demotions
policies and procedures.
(viii) Change and organization development:
3. Compensation:
i.Job Evaluation:
• select suitable job evaluation techniques.
• Classify jobs into various categories.
• Determining relative value of jobs in various
categories.
(ii) Wage and salary Ammonization:
• Conducting wage and salary survey.
• Determining wage and salary rates based on
various factors.
• Administering wage and salary programmers
• Evaluating its effectiveness.
(iii) Incentives:
• Formulating incentive payment schemes.
• Helping functional managers on the
operation.
 • Review them periodically to evaluate
effectiveness.
(iv) Bonus:
(v) Fringe benefits:
* Disablement benefit.
* Housing facilities.
* Educational facilities.
* Canteen facilities.
* Recreational facilities.
* Conveyance facilities.
* Credit facilities.
* Legal clinics.
* Medical, maternity and welfare facilities.
* Company stores.
(vi) Social security measures:
• Workmen’s compensation to those workers
who involve in accidents.
• Maternity benefits to women employees.
• Sickness benefits and medical benefits.
• Disablement benefits / allowance.
• Dependent benefits.
• Retirement benefits like provident fund
pension gratuity etc.
4.Human relations:
* Understanding and applying the models of
perception personality learning intra and inter
personal relations, intra and inter group relations.
* Motivating the employees.
* Boosting employee morale.
* Developing the communication skills.
* Developing the leadership skills.
* Redressing employee grievances properly and in time
by means of a well formulated grievance procedure.
 * Handing disciplinary cases by means of an
established disciplinary procedure.
* Counseling the employees in solving their personal
family and work problems and industrial accidents.
* Improving quality of work employee through
participation and other means.
5. Industrial relations :
* Indian labour market
* Trade unionism
* Collective bargaining
* Industrial conflicts
* Workers’ participation in management and
* Quality circles.
6. Recent Trends in HRM:
* Quality of work life
* Total quality in human resource
* HR accounting, audit and research and
* Recent techniques of HRM.
HUMAN BEHAVIOUR AND HRM PERSONALITY
Extraversion :
*

* Agreeableness’
* Conscientiousness
* Emotional stability
* openers to experience
Personality theories include
Psychoanalytical theory
Social-psychological theory
Trait factor theory
Perception
 • Receiving the perceptual inputs or stimuli from
the internal and external averment regarding
people, objects and incidents.
• Selecting the stimuli:
• Organization of stimuli:
• Interpretation
• Perceptual output
• Individual behavior is called.

HUMAN RESOURCES SYSTEM IS A CENTRAL SUB-SYSTEM

iusaa
Performance
P discussions Allocations
Performance projects
management for all a
centre

Training(te
Recruitment The centre chnical)
manager

Career
development
monitoring
CONCEPT OF HUMAN RESOURCE MANAGEMENT
Objectives and organization of HRM

Strategic HRM

Employment
• Job design and Analysis
• Human resource planning
• Recruitment and selection
Human resource development
• Performance appraisal
• Training and development
• Career planning and development
• Promotion transfer and demotion
• Absenteeism and lab our turnover
• Management of change development & culture
Compensation management
• Job Evaluation
• Wage and salary administration
• Social security and welfare
Human relations

• Motivation and job satisfaction

• Morale
• Communication
• Leadership
• Work environment, industrial accidents,
Industrial relations
• Indian lab our market
• Industrial relation
• Trade unionism
• Collective bargaining
• Industrial conflicts
• Workers participation in management quality circles
Recent trends in
HRM
• Quality of work life and empowerment
• Total quality HRM
• HR Accounting Audit and research
• Recent techniques in HRM