Unit I HRM PDF

KV INSTITUTE OF MANAGEMENT AND INFORMATION STUDIES
BA-5204-HUMAN RESOURCE MANAGEMENT
UNIT – 1 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.
TABLE OF CONTENT
1.1.DEFINITION……………………………………………………………………………………..……….3
1.1.1 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT…………………………..….………3

1.1.2OBJECTIVES OF HUMAN RESOURCE MANAGEMENT……………………………...…..…….4
1.1.3EVOLUTION OF HRM…………………………………………….………………………….……..5
1.2FUNCTIONS OF HRM ………………………………………………………….............................……10
1.2.1MANAGERIAL FUNCTIONS………………………………………………………..……………..11
1.2.2OPERATIVE FUNCTIONS………………………….………………………………………….…...12
1.3ROLE OF PERSONNEL MANAGER……………………………..…………………………………….13
1.3.1QUALITIES OF A HR MANAGER…………………………………………………………………15
1.4 HUMAN RESOURCE POLICIE……………….………………………………………………………..16
1.4.1NEED FOR A HR POLICY………………………………………..…………………………………17
1.4.2FEATURES OF A SOUND HR POLICY…………………….………………………………………17
1.4.3AIMS AND OBJECTIVE OF PERSONNEL POLICES………..……………………………………18
1.4.4 PRINCIPLES OF HR POLICY………………………………………………………………………18
1.4.5 TYPES OF HR POLICIES………………………………………………………………………...…19
1.4.6 STEPS IN DESIGN THE POLICY………………………………………………………………….20
1.4.7 ELEMENTS OF HR POLICY……………………………………………………………………….21
1.5 HUMAN RESOURCE ACCOUNTING & AUDIT –DEFINITION……………………………………21
1.6 HR ACCOUNTING…………..………………………………………………………………………….22
1.7 HRIS………………………………………………………………………………………………………22
1.8 AFFIRMATIVE ACTION………………………………………..………………………………………27
1.9 INCLUSIVE GROWTH…………………………………………………………………………………27
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UNIT I : PERSPECTIVES IN HUMAN MANAGEMENT HUMAN

RESOURCE MANAGEMENT
Definition of HRM:
Prof. Jucius
• The field of management which has to do with planning, organizing, directing and
controlling various operative functions of procuring, developing maintaining and
utilizing a labor force such that the
– Objectives, for which the company is established are attained
economically and effectively
– Objectives of all levels of personnel are served to the highest possible degree
– Objectives of the community are duly considered and served
Edward Flippo
– Personnel management is the planning, organizing, directing and controlling of the
procurement, development, compensation, integration, maintenance and separation
of human resources to the end that individual, organizational and social objectives
are accomplished
Management Essentials
• ORGANISATION – Group of people working together to achieve a common goal
• MANAGEMENT – Accomplishment of organisational objectives by utilizing
physical & financial resources through the efforts of human resources.
• RESOURCES - Factors of production which includes human and physical
(materials, money, machinery) resources
HUMAN CAPITAL
• “Our employees are our greatest assets, and the ability to attract and retain them is
the key driver of our future success.”
• The human capital can be defined as "the embodiment of productive capacity within
people. It is the sum of people‟s skills, knowledge, attributes, motivations, and
fortitude. It can be given or rented to others, but only on a temporary basis; its
ownership is non- transferable.”
Complexity in managing people
• Dynamic nature of the people
• Every person is Unique
• People are responsive

Importance of the human factor
• Proper utilization of other resources
– Help transform lifeless factors of production into useful products
• Capable of enlargement
– produce extraordinary things when inspired
– Can help organisation achieve results quickly, efficiently & effectively.
• The secret of their success is “The way they treat their employees” - Sony
• Nestle CEO “Every single person in the organization should ask himself or herself –
is there anything I can do to add a little more value to our organization”
• “How important are people treated in the Organization.”
• Organization – acquires the services from the Employees, Develop their Skills and
motivate them to achieve the organization objectives.
• HR - Productivity , Quality Work Life & Profit.
• “The Enterprise is People” , “Organization need people and People need Organization.”
1.1.1 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

The importance of human factor can be discussed as follows:
a) Social Significance:
Proper management of personnel, enhances their dignify by satisfying their social needs.
This it does by i) maintaining a balance between the jobs available and the jobseekers, according
to the qualifications and needs; ii) providing suitable and most productive employment, which
might bring them psychological satisfaction; iii) making maximum utilization of the resource in an
effective manner and paying the employee a reasonable compensation in proportion to the
contribution made by him; iv) eliminating waste or improper use of human resource, through
conservation of their normal energy and health; and v) by helping people make their own
decisions, that are in their interests.
b)Professional Significance:
By providing a healthy working environment it promotes teamwork in the

employees. This it does by i) maintaining the dignity of the employee as a „human-being‟;
ii) providing maximum opportunities for personal development; iii) providing healthy
relationship between different work groups so that work is effectively performed; iv)
improving the employees‟ working skill and capacity; v) correcting the errors of wrong
postings and proper reallocation work.
c)Significance for Individual Enterprise:

It can help the organisation in accomplishing its goals by: i) creating right attitude
among the employees through effective motivation; ii) utilizing effectively the available
human resources; and iii) securing willing co-operation of the employees for achieving
goals of the enterprise and fulfilling their own social and other psychological needs of
recognition, love, affection, belongingness, esteem and self-actualisation.
Dynamic and growth-oriented organisations do require effective management of

people in a fast-changing environment. Organisations flourish only through the efforts and
competencies of their human resources. Employee capabilities must continuously be
acquired, sharpened and used. Any organisation will have proper human resource
management i) to improve thecapabilities of an individual; ii) to develop team spirit of an
individual and the department; andiii) to obtain necessary cooperation from the employees
to promote organisational effectiveness.
1.1.2OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

 To provide, create, utilize and motivate employees to accomplish organisational goals.
 To secure integration of individuals and groups in securing organisational effectiveness.
 To create opportunities, to provide facilities, necessary motivation to individuals and
groups for their growth with the growth of the organisation by training and development
compensation.
 To provide attractive, equitable, incentives, rewards, benefits, social security measures,
to ensure retention of competent employees.
 To maintain high morale, encourage value system and create environment of trust,
mutuality of interests.
 To provide opportunities for communication expression, participation, appreciation,
recognition and provide fair efficient leadership.
 To create a sense and feeling of belongingness, team spirit and encourage suggestions
from employees.
 To ensure that, there is no threat of unemployment, inequalities, adopting a policy
recognizing merit and employee contribution, and conditions for stability of
employment.
1.1.3Evolution of HRM
 Early Period
 Growth Period
 Maturity Period
 Transition Period
Early Period Before 1900

• Guild System
• Improving the working life of individuals were major concerns of reformers.
• Hiring, Firing, Training and Pay adjustment Decisions were made by
individual Supervisors.
• Scientific Management studies conducted by Frederick W Taylor beginning of

1885 helped management to identify different ways of doing work and thus to
increase worker productivity.
• Industrial Revolution - 1870 working condition , social patterns , and division of
labor were significantly changed.
• Organization grew larger - Specialists – Planning , Recruitment , selection ,
placement and purchasing
Growth Period between 1900 – 1946

• 1908 – unsafe working conditions & child labor – enactment of laws in USA.
• 1910 - Growth of organization – led to establishment of the first personnel department.
• 1910 – 1920 “Right Man in the Right Job” Placement theme.
• Frank and Lillian Gilberth dealt – task design and efficiency.
• Early 1920 - Employee Counseling, Paid Holiday, Vacations and Sick Leave began.
• Mid 1920 – Elton Mayo conducted the Hawthorne studies – impact of work
groups on individual workers – job evaluation for determining hourly wage rates
were developed.
• 1930 – major Labor which led to growth of Unions
• During the Second World War major developments were made in selection and
training methods.
• Between 1940 – 1950 – Importance of collective bargaining and union
management relations expanded the responsibilities.
Maturity between 1946 and 1970

o 1946 – Employment Act (USA) established.
o 1950 – rapid growth in pension plans
o 1960 – 1970 – legal requirements and constraints arising from the social
legislation – changes in the HR department – polices and practices.
o Legal Ramifications – More professional.

o Revised selection and testing procedures and reassessed training needs and criteria
Transition 1970 till date

• Responsibility of the every manager – management of of human resources
• Human Resources as the valuable assets
• Shift from the management practices like two way communication – MBO,
Quality circles , employee centered leadership- paved way to transform from
the personnel management to HRM.
• Welfare focus on the Efficiency.
• Computerization of HR activities recevive more attention.
400 BC Historical Babylon -Incentive wage plans

A wage system which provides additional pay for
qualitative and quantitative performance which exceeds
standard or normal levels. Also known as incentive wage
system.
1650 BC Principle of Division of Labor China
1200 BC Span of Management – Moses
4th century Kautilya - Systematic Management
Prior Status of labor was low. (Guild System – Craftsman ,

Industrial Journeyman and Apprentice. ) Beginning of HRM –
Revolution Selection, Training and Development of workers of
collective bargaining for wages and working
conditions.
Laissez Faire Industrial system were characterized by Factory

System. (a change from cottage system).
Deteriorated the Employer – Employee Relationship
due to the unhealthy work environment, Monotony,
Personnel History , major importance was given to the

Management Personnel Management . Great Depression 1920-21 –
throw many people from jobs – 1923 started giving
more importance in their core functions.
The Harvard Framework of HRM was developed by Beer in 1984. It suggested that
HRM has two characteristics features: a) Line managers accept more responsibility for
ensuring the alignment of competitive strategy and personnel policies; b) The personnel
function has the mission of setting policies that govern how personnel activities are
developed and implemented in way that make them more mutually re-enforcing. The
Harvard model has integrated the history and practice of HRM, particularly emphasizing
HRM as a general management function rather than personnel function only. HRM policy
should evolve taking into consideration stakeholder interest and situational factors, which
will lead to HRM outcomes like commitment, congruence and cost effectiveness. This
ultimately will lead to long-term consequences like individual well being, organisational
effectiveness and societal well-being which in turn will impact the stakeholder interest and
situational factors and also the HRM policy choices.
Walton (1985) has further expanded the concept of HRM stating that the new HRM
model is composed of policies that promote mutuality – mutual goals, mutual influence,
mutual respects, mutual rewards and mutual responsibility. The theory propounds that
policies of mutuality will elicit commitment, which in turn will yield both economic
performance and greater human development.
David Guest (1987-1991) has taken the Harvard model and developed it by defining four
policy goals which can be used as testable propositions:
 Strategic Integration.
 High Commitment
 High Quality
 Flexibility.
Story (1989) has distinguished between hard and soft version of HRM. The hard
approach to HRM emphasizes the quantitative, calculative and business strategic aspects of
managing the head count resource in a rational way. Whereas the soft model of HRM traces
its roots to the human relations school, emphasizing communication, motivation and
leadership.
Karen Legge (1989) had defined the HRM theme that human resource policies should
be integrated with strategic business planning and used to reinforce an appropriate
organisational culture, that human resources are valuable and a source of competitive
advantage that they may be tapped most effectively by mutually consistent policies that
promote commitment.
Keith Sisson (1990) suggests that there are four main features increasingly associated
with HRM. They are:
 Stress on the integration of personnel policies with one another.

 The focus of responsibility for personnel management no longer resides with HR specialists.
 Focus shifts from manager, trade union relations to management, employee relations
and from collectivism to individualism.
 Stress on commitment and the exercise of initiative, with managers now donning the
role of enabler, empowerer and facilitator.
The overall purpose of HRM is to ensure that the organisation is able to achieve success
through people. HRM has been defined as a strategic and coherent approach to the
management of an organisation‟s most valued assets – the people working there whom
individually and collectively contribute to the achievement of its goals.
Time Period Subject of primary Managerial Perception of P/HR Activities

concern Employees
Before 1900 Production Indifference to needs Discipline Systems
technologies
1900- 1910 Employee Welfare Employees need safe Safety Programs
conditions and opportunity Inspirational
Programs
1910-1920 Task Efficiency Need High Earning made Motion and Time
possible higher productivity study
1920 – 1930 Individual differences Employees individual Psychological testing
difference are considered are done
1930-1940 Unionization Employees as Employee

Management adversaries communication
programs
1940-1950 Economic security Economic protection Pension plan, Health
plans, fringe benefits
1950-1960 Human Relations Employees need considerate Foreman training
supervision
1960-1970 Participation Involvement in task decisions Participative

management
techniques (MBO)
1970-1980 Task Challenge Challenging concurrent to the Job enrichment,
abilities integrated task teams.
1980-1990 Employee Lost through economic Outplacement,
Displacement downturn retraining
restructuring
1900-2000 Work force changes More flexibility in schedules, Strategic HR planning
benefits and policies , Employee rights
1.2FUNCTIONS OF HRM
A. Managerial Functions:
Planning, Organizing, Directing , Controlling
B. Operative Functions:
Procurement functions, Development functions, Motivation & compensation, Maintenance,
Integration, & Separation.
1.2.1MANAGERIAL FUNCTIONS
• Planning –
• Planning is the determination of plans, strategies, programmes,
polices, procedures and standards needs to accomplish the desired

organisational objectives
• Determine the personnel prog regd recruitment, selection, & training to
achieve desired objectives.
• Two main features of Planning are Reasearch and Forecasting.
• Personnel administration should be able to predict the trends in wages,
labor market , union demands, and other benefits
• Organizing –
• Structure or framework by which cooperative group of human beings
allocates its tasks among its members.
• Design structure of relationships b/w jobs, personnel and physical factors.
• Organisation consist of authority and responsibility , it is the assignment of

specific functions to designated persons or departments with the authorityto
carry the activities and accountability to the management.
• Directing –
• Getting people to do work willingly & effectively thro supervision and
guidance, motivation & leadership.
• It is motivating, commanding, actuating
• Directing deals not with the dissemination of orders but also the acceptance
of the and excuetion of these orders of employees
• Controlling & Cordinating –
• It deals with the task of blending efforts in order to ensure a successful
attainment of organisational objectives.
• Act of checking , regulating and verifying whether everything
occurs in conformity with the plan.
• Ensure accomplishment of plans correctly- measure performance thro
review
1.2.2OPERATIVE FUNCTIONS
1. Procurement Function – concerned with procuring & employing people with

required knowledge, skill and aptitude.
2. Development – Increase of skills, knowledge abilities etc
3. Motivation & compensation – inspire people to give best-through incentives & rewards
4. Integration – of goals thro progs, redressal, negotiations.
5. Maintenance – protecting & preserving physical and psychological health of employees
6. Separation
Procurement Development Motivation & Integration Maintenance Separation
Compensation
Job Analysis Training Job design Grievance Health & Retirement

redressal safety
HR Planning Executive Work Discipline Employee Layoff

development scheduling welfare
Recruitment Career Motivation Teams & Social Outsourcing

planning & teamwork security
development measures
Selection Human Job evaluation Collective Discharge

Resource bargaining
development
Placement Performance Employee Separation

appraisal participation
&
empowerment
Induction & Compensation Trade unions

orientation administration &
associations
Internal Incentives & Industrial

Mobility benefits. relations
1.3ROLE OF PERSONNEL MANAGER

1. Administrative Roles
Policy maker - develop personnel policies
Administrative expert - record keeping, databases, processing benefits/claims, leave, medical
facilities.
Advisor - to line managers , grievance redressal, conflict resolution, selection & training
Housekeeper - recruiting, testing, ref check, employee surveys, salary & wage admin
Counselor - on various personal and professional problems
Welfare officer - provides & maintains canteens, hospitals, clubs, libraries, transportation, coop
societies.
Legal consultant - settling disputes, handling disciplinary cases, collective bargaining.
2. Operational Roles
Recruiter
Trainer, developer, motivator
Coordinator
Mediator
3. Strategic Roles
Change Agent - translate vision statements into meaningful format.
Strategic partner - training centre, design centre..
a) Personnel Role:
 Advisory
 Manpower Planning
 Training & Development
 Measurement and Assessment of individual and group behaviour.
b) Welfare Role:
 Research in Personnel & Organisational Problems
 Managing services – canteens, transports, etc..
 Group Dynamics – Group counseling, leadership, motivation, etc..
c) Administrative Role:
 Time-keeping
 Salary & Wage Administration
 Maintenance of records.
 Human Engineering – Man-Machine Relationship
d) Fire-fighting Role:
 Grievance Handling
 Settlement of Disputes
 Handling disciplinary actions.
 Collective Bargaining
 Joint Consultation.
He performs many other miscellaneous roles in accordance with the needs of a situation,
such as:
 The conscience role is that of a humanitarian who reminds the management of its moral
and ethical obligations to its employees.
 He plays the role of a counselor to whom the employees frequently go for consultation.
 As a mediator, he plays the role of a peacemaker, offering to settle the disputes that
may arise among individuals or groups.
 He acts as a spokesman for or representative of the company.
 He acts as a problem-solver with respect to the issues that involve human resources
management
 He works as a change-agent within the organisation because he is best suited to
introduce and implement major institutional changes.
1.3.1QUALITIES OF A HR MANAGER:
 He should be a specialist in organisation theory.
 He should have knowledge of relevant laws, procedures, techniques and of
developments in theory.
 He should adequate knowledge of behavioural science.
 He should a mind with a capacity for creative thinking, for analyzing situations and
reasoning objectively.
 He should know problem-solving techniques.
 He should have faith in humanity.
 He should have capacity for leadership.
 Personal Integrity.
 Capacity for persuasion, coupled with patience and tolerance.
 A friendly, approachable nature.
 Initiative and decision-making ability.
 Mobility of facial expression.
 An ability to generate trust among his colleagues.
 A readiness to cooperate with the subordinates in times of difficulty.

 Personnel Attributes: Initiative, resourcefulness, perception, maturity, analytical ability,
unbiased, thorough with labour laws, understanding of human behaviour, Patience,
Understanding, empathy, Perseverance
 Skills: educational skills, discriminating skills, executing skills, leadership skills,
 Experience & training, Professional Attitudes - knowledge of various disciplines
1.4 HUMAN RESOURCE POLICIES

• Predetermined established guideline towards the attainted of accepted goals and
objectives.
• Guidelines facilitate properly designed efforts to accomplish the strategic intent.
“A policy is a man-made rule of pre-determined course of action that is established
to guide the performance of work toward the organisation objectives. It is a type of standing
plan that serves to guide subordinates in the execution of their tasks”.
Flippo definition of policy

“is the man made rule of pre determined course of action that is established to guide the
performance of work toward the organization objectives.”
Yoder
“A policy is a pre determined, selected course established as a guide towards accepted goals
and objectives. They establish the framework of guiding principles that facilitate delegation
to lower levels and permit individual managers to select appropriate tactics or
programmes.”
“Personnel Polices are those that individual have developed to keep them on track towards
their personnel objectives. ”
Personnel Polices refer to principles and rules to conduct which “Formulate, redefine,
break into details and decide a number of actions ” that govern the relationship with
employees in the attainment of organizational objectives.
Personnel Polices are

• Key stone in the arch of the management
• Life blood for the successful functioning of the personnel management.
• Statement of intentions
• Positive declaration and command to an organization.
1.4.1Need for a HR Policy

• Avoid unintended obligations
• Legal requirements
• Employment at will, contractual status
• Defense of claims
• Helps avoid union organizing
• Risk management
• Time saver
1.4.2Features of a sound HR policy

• Definite, positive, clear and easy to understand
• Written
• Reasonable stable
• Supplementary to all other policies of the orgn and the public policy
• Recognition and individual relationship between the mgmt and the employees
• Based on the facts
• Provide two way communication
• Supported by the mgmt, employees and the union
• Progressive
• Measurable
• Uniform for the entire organization
• Practically applicable
1.4.3Aims and objective of Personnel polices

• Enable the orgn to carry out the main objectives
• Awareness of items in policies and to secure the co operation
• Sense of unity with the enterprise
• Provide competent , adequate and trained personnel for all levels and types of
management
• To protect the common interest of all parties
• Recognize the role trade unions in the organization.
• Efficient consultative service.
• Management leadership
• Delegating the human relations
• Co operative understanding
• Security of employment
•
• Opportunity for growth
• Payment of fair and adequate wages
• To recognize the work and accomplishments
• To create the sense of responsibility.
1.4.4 Principles of HR policy

• Right man in the right place
• Train everyone for the job to be done
• Make the orgn a coordinated team
• SS the right tools and right conditions of work

• Give security with opportunity , incentive , recognition
• Look ahead, plan head for more and better things.
1.4.5 Types of HR Policies

• Functional vs centralized policy
– Functional – Different categories of personnel
– Centralized – Common throughout the orgn
• Minor vs Major
– Minor – Relationship in a segment of an organization , with considerable
emphasis on details and procedures.
– Major – Overall objectives, procedures and control which affect an
organization as whole.
Specific Policies
• Hiring – factors like reservation , martial status,
• Terms and conditions – compensation policy , hours of work, overtime , promotion ,
transfer, etc
• Medical assistance - sickness benefits
• Housing, transport, and other allowances.
• Training and development
• Industrial relations
Why to adopt Policies

Following are the benefits of adopting the policies by the organization
– Complete thought of the basic needs of both organization and employees
– Established policies ensure consistent treatment of all personnel treatment
throughout the organization
– Policy promotes stability – continuity of action
– It serve as a standard of performance
– Helps to build employee motivation and loyalty
– Helps to resolve interpersonal or intrapersonal and intergroup conflicts.
Formulating Policies
• Five principle source for determining the content and meaning of policies
– Past practice
– Prevailing practice in the rival companies
– Attitudes and philosophies of the founders (Top level Management.)
– Attitudes and philosophies of middle level management.

– Knowledge and experience from handling personnel problems
1.4.6 Steps in design the Policy

1. Initiate a policy
2. Uncovering the facts by personnel department

3. Recommending a policy to top management
4. Put the policy in writing
5. Explaining and discussing the proposed policy with members
6. Adopting and launching it
7. Communicating it to employees to all levels
8. Administering it
9. Initiating a follow up
10. Evaluating it
11. Restating or Reformulating the policy
1.4.7 Elements of HR Policy
History of Company’s Growth
Employment practice and condition of employment
Grievance of redressal procedure
Safety rules and regulation
Mutuality of interest and need for co operation
Employee financial aids
Educational Opportunities
Employees news sheet and house journal
Company policy
Collective bargaining
Procedures of disseminating information on company policies
Maintenance of discipline & Public Relations
Employees news sheet and house journal
1.5 Human Resource Accounting & Audit –Definition

“Accounting for people as an organizational resource. It involves measuring the costs
incurred by business firms and other organizations to recruit, select, hire, train and develop
human assets. It involves measuring the economic value of people to the organization.”
HUMAN RESOURCE AUDIT

Nature of HR Audit
HR Audit is a tool for evaluating the personnel activities of an organization. The audit may include one
division or entire company. It gives feedback about HR functions to operating managers and HR specialists. It
also shows how well managers are meeting HR duties.
In short HR audit is an overall control check on HR activities in a division or a company and evaluation of
how these activities support organization‟s strategy.
Basis of HR Audit
1. Wage Surveys
2. Recruitment Sources effectiveness
3. Training efforts effectiveness
4. Supervisor‟s effectiveness
5. Industrial settlements
6. Job Analysis
7. Job Satisfaction Survey
8. Employee needs survey
9. Attitude Surveys
10. High accident frequency surveys
Benefits of HR Audit
1. Identification of contributions of HR department
2. Improvement of professional image of HR department
3. Encouragement of greater responsibility and professionalism among HR members
4. Clarification of HR duties and responsibilities
5. Stimulation of uniformity of HR policies and practices
6. Finding critical personnel problems
7. Ensuring timely compliance with legal requirements
8. Reduction of HR costs through more effective personnel procedures
9. Creation of increased acceptance of changes in HR department
10. A thorough review of HR information systems
Scope and Types of HR Audit
HR Audit must cover the activities of the department and extend beyond because the people problems are not
confined to HR department alone. Based on this HR audit can be spread across following four different
categories.
 Human Resource Function Audit
 Managerial Compliance Audit
 Human Resource Climate Audit
Approaches to HR Audit
1. Comparative Approach (Benchmarking with another company)
2. Outside Authority Approach (Outside consultants‟ standards)
3. Statistical Approach (Statistical measures and tools)
4. Compliance Approach (Legal and company policies)
5. Management By Objectives Approach (Goals & Objectives based)
HR Acquisition
• Number of employees acquired during the year
• Cost of Acquisition
• Levels for which they were acquired
• HR Development
• All information pertaining to HRD activities of the organization
• HR maintenance
• Cost related to HR maintenance.
• HR Separation
• Cost related to HR Separation, attribution rate.
• Details of benefits provided to the employees
Various Methods
• Non- Monetary Measurement
• Monetary Measurement
Non- Monetary Measurement

• Capitalization of Historical Cost
• Replacement Cost Method
• Opportunity Cost method
• Economic Value Method
• Present Value Method
1.6 HR Accounting
• Developing skill inventory
• Performance Appraisal
• Assessing the individual capacity for development
• Attitude survey
• Subjective Appraisal
1.7 HRIS
• Human Resource Information System is a systematic way of storing data and
information for each individual employee to aid planning , decision making and
submitting of returns and reports to the external agencies.
Purpose of HRIS
• Storing information and data for each individual employee for future references
• Providing basis for planning, Organizing , Decision Making, Controlling and other
Human resources function.
• Meeting daily transactional requirements- marking present / absent , and granting leave.
• Supply data and submitting returns to government and other statutory agencies
Applications of HRIS
• Personnel Administration
• Salary Administration
• Leave / absence recording
• Skill Inventory
• Medical History
• Accident Monitoring
• Performance Appraisal
• Training and Development
• HRP
• Recruitment
• Career Planning
• Collective Bargaining
Steps in Implementing HRIS
• Inception of Data
• Originator of the idea should prepare a report showing the need for an HRIS
and benefits of this system towards the development of the organisation.
• Feasibility Study
• It evaluates the Present system , details and benefits of HRIS .
• It calculates the cost and benefits of HRIS
• Selecting a project team
• Once the feasibility study has been accepted the resources are allocated
• Projet team is selected
• HR respresntative, Representatives from both management , information
systems & additional clerical people from HR department.
• Defining the requirements
• Statement of requirements specifies in detail exactly what HRIS will do.
• It is thw written descriptions of how users collect and prepare data,obtain
approvals , complete forms, retrive data and performa other non technical
tasks associated with HRIS use.
• Vendor analysis
• This step determines what software and hardware are available that will best
meet the organisation needs for the lowest price.
• The result of this analysis will determine whether to purchase an “off the
shelf” package or develop the system internally
• Contract Negotiations
• Vendor has to selected and the contract must be negotiated.The contract
stipulates the vendor‟s responsibilities with regard to software, installation,
service, manintenance, training and Documentation.
• Training
• Members of the project team are trained to use HRIS.HR

representative will train managers from other department in how
to submit information to HRIS and how to request information
from it.
• Tailoring the system
• This step involves making changes to the system to best fit the
needs of organisation.
• A general rule of thumb is to modify the vendor package , because
of modifications frequently cause problems
• Collecting data
• Data must be collected and stored in the system
• Testing system
• Once the system is tailored to the organisationa needs and data is
entered , a period of testing follows
• The purpose of this testing is to verify the output
• All reports are analysed for accuracy.
• Starting up
• Start up begins when all current actions are put into the system
and reports are produced
• Running in parallel
• It is desirable to run the system in parallel with the old system for
a period of time.
• This allows for comparision of outputs both the system and
examination for inaccuracies
• Maintenance
• It normally takes several weeks and months for the employees to
feel comfortable with the system. During the stabilisation period
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any remaining errors and adjustments should be handled.

• Evaluation
• HRIS has been in plae for a reasonable length of time
• The system has to be evaluted
• To check the efficiency whether the system is benefitical and

properly used by the organisation
Benefits
• Higher speed of retrieval of information
• Reduction in duplication
• Ease in classifying and reclassifying
• Effective decision making
• Higher accuracy of information
• Fast response of quires
• Improve quality of people
• Better work culture
• Systematic procedures
• Transparency
Limitations
• Expensive – finance – manpower requirements
• Large scale computer literacy – inconvenient and threatening
• Personnel designing do not have the thorough information of the users-
user do not get the exact reports.
• Quality of response depends on the accuracy of the input – human intervention .
• Multi user environment – system is operated in batch mode – records are
updated once a week – online facility has to be developed – report
generated should not be out of phase with the realities.
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1.8What is affirmative action?

It is a program or policy of a company that aims to eliminate
discrimination by providing equal opportunities and improving his /her
profession. (education)
Affirmative action refers to policies that take factors including "race,

color, religion, sex, or national origin" into consideration in order to benefit an
underrepresented group, usually as a means to counter the effects of a history of
discrimination.
Examples of affirmative action

 Recruit a diverse manpower
 Generate amiable work environment
 Training and counselling
 Disciplinary action against discrimination of any kind
Purpose
1.9 What is Inclusive growth?

Inclusive growth approach takes a longer term perspective as the focus is on
productive employment
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Examples
More Productive jobs
will be created
Economic opportunity
expanded for all
– Direct income redistribution

– Increasing incomes for excluded groups
NEW TRENDS IN HUMAN RESOURCE MANAGEMENT
 Attitude Surveys
 Better Communication Channels
 Change in the Work-Life
 Job Redesign
 Job Enlargement
 New approaches to compensation and rewards
 Career Planning
 Performance Appraisal
 Decentralisation
 Breaking down the hierarchical structure
 Facilitating Empowerment
 Initiating and facilitating process of change
 Enlarging the knowledge base
 Developing team spirit
 Facilitating the employees desires of self-actualisation.
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KV INSTITUTE OF MANAGEMENT AND INFORMATION STUDIES

BA-5204-HUMAN RESOURCE MANAGEMENT

UNIT – 1 PERCEPTIVE IN HUMAN RESOURCE MANAGEMENT:

1.1.1 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT…………………………..….………3

UNIT I : PERSPECTIVES IN HUMAN MANAGEMENT HUMAN

• People are responsive

1.1.1 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

By providing a healthy working environment it promotes teamwork in the

c)Significance for Individual Enterprise:

Dynamic and growth-oriented organisations do require effective management of

1.1.2OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

Early Period Before 1900

• Scientific Management studies conducted by Frederick W Taylor beginning of

Growth Period between 1900 – 1946

Maturity between 1946 and 1970

o Legal Ramifications – More professional.

Transition 1970 till date

400 BC Historical Babylon -Incentive wage plans

1650 BC Principle of Division of Labor China

1200 BC Span of Management – Moses

4th century Kautilya - Systematic Management

Prior Status of labor was low. (Guild System – Craftsman ,

Laissez Faire Industrial system were characterized by Factory

Personnel History , major importance was given to the

 Stress on the integration of personnel policies with one another.

Time Period Subject of primary Managerial Perception of P/HR Activities

1930-1940 Unionization Employees as Employee

1960-1970 Participation Involvement in task decisions Participative

polices, procedures and standards needs to accomplish the desired

• Organisation consist of authority and responsibility , it is the assignment of

1. Procurement Function – concerned with procuring & employing people with

Job Analysis Training Job design Grievance Health & Retirement

HR Planning Executive Work Discipline Employee Layoff

Recruitment Career Motivation Teams & Social Outsourcing

Selection Human Job evaluation Collective Discharge

Placement Performance Employee Separation

Induction & Compensation Trade unions

Internal Incentives & Industrial

1.3ROLE OF PERSONNEL MANAGER

 A readiness to cooperate with the subordinates in times of difficulty.

1.4 HUMAN RESOURCE POLICIES

Flippo definition of policy

Personnel Polices are

1.4.1Need for a HR Policy

1.4.2Features of a sound HR policy

1.4.3Aims and objective of Personnel polices

1.4.4 Principles of HR policy

• SS the right tools and right conditions of work

1.4.5 Types of HR Policies

Why to adopt Policies

– Attitudes and philosophies of middle level management.

1.4.6 Steps in design the Policy

2. Uncovering the facts by personnel department

1.4.7 Elements of HR Policy

History of Company’s Growth

Employment practice and condition of employment

Grievance of redressal procedure

Safety rules and regulation

Mutuality of interest and need for co operation

Employee financial aids

1.5 Human Resource Accounting & Audit –Definition

HUMAN RESOURCE AUDIT

Non- Monetary Measurement