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Human Resource Management

Rachna Bansal, School of Business Studies, Sharda University.

Lecture 1
Introduction to HRM/ Why study HRM Meaning & Characteristics of Human Resource Meaning & Nature of HRM Scope of HRM Objective of HRM Functions of HRM Significance of HRM

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MAN
Money
Material
Machinery
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Business houses are made or broken in the long run not by markets or capital, patents or equipments but by men - L. F. Urwick
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Human Resource Management (HRM)


Human Resource

Management

Human resource represents the people at work. They are the sum total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of employees.

Organizing

Directing

Planning

Controlling

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Human Resources (HR)

HR are the product of their biological inheritance and interactions with the environment. HR are heterogeneous. HR are dynamic. HR are most important element in the organization. HR have the greatest potential to develop provided with the right climate.
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Human Resource Management

HRM is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished. - Flippo
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HRM
HRM is that part of management concerned with people at work and with their relationships within the organization. It seeks to bring together men and women who make up an enterprise, enabling each to make his own best contribution to its success both as an individual and as a member of a working group. - National Institute of Personnel Management
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HRM

A set of policies, practices, and programmes designed to maximize both personal and organizational goals

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Nature/ Characteristics of HRM

Comprehensive function People oriented Action oriented Individual oriented Development oriented Pervasive function Continuous function

Future oriented Challenging function Science as well as art Staff function Young discipline Interdisciplinary Nervous system
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Scope of HRM
The Indian Institute of Personnel Management has described the scope of HRM in following aspects: Labour or Human Resource Aspect The welfare aspect The Industrial Relations aspect

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Employee Maintenance Industrial Relations HR Planning

Employee Motivation

Scope Of HRM

Employee Hiring

Training &
Development

Employee
Remuneration

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Objectives of HRM

Attain economically and effectively the organizational goals. Serve to the highest possible degree the individual goals. Preserve and promote the general welfare of the community.

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Personal Objectives Functional Objectives Organizational Objectives

Societal Objectives
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Significance/ Importance of HRM

At the enterprise level At the individual level

At the society level

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Functions of HRM
Managerial Functions Planning
Job Analysis HR Planning Performance Job Appraisal Training Development Career planning Evaluation Wage and Salary Administration Bonus and Incentives Payroll Motivation Job

Operational Functions

Procurement Development Compensation Integration Maintenance


Health
Safety

Organizing

Recruitment Selection

Satisfaction Social Grievance Redressal Collective Security

Directing

Placement Induction

Welfare
Schemes

Controlling

Transfer Promotion Separation

Bargaining HR Records WPM Discipline HR Research

HR Audit
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PM (Personnel management) and HRM

HRM & PM are different in scope and orientation. PM has a limited scope and an inverted orientation. PM viewed people as a tool, behavior of which can be manipulated for the benefit of organization and replaced when it is wornout. HRM views people as an important asset to be used for the benefit of organization.
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PM (Personnel management) and HRM


HRM believes in promoting mutuality. PM was treated as a routine activity meant to hire employees and maintain personnel records. PM is concerned with monitoring, and HRM is concerned with nurturing. Historically PM preceded HRM.

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Reference Books

Aswathappa K., Human Resource Management- Text and Cases, 5th edition, McGraw-Hill publications, New Delhi, p. 3-10 Rap V.S.P., Human Resource Managementtext and cases, 2nd edition, Excel Books, New Delhi, p. 2-4 Gupta C.B., Human Resource Management, 2nd edition, Sultan Chand publications, New Delhi, p. 1.3-1.16
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