MODULE 1

Essential of Human Capital

Management
(Summary)

Pallavi.V
Poornitha.R
 HUMAN RESOURCE MANAGEMENT
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.
 NATURE OF HRM
HRM is Universal in nature
HRM is a Multi Disciplinary Function
Growth Oriented : It is Concerned to develop the
Capabilities of employees and to maintain the reward
system
Cordial Integration : It co-ordinates and controls the
human resources in the organisation to produce maximum
results
HRM is a Ongoing Process
 SCOPE OF HRM

Procurement of employees
Training and Development
Job Analysis and Job Description
Employee Welfare
Industrial Relations
 FUNCTIONS OF HRM

MANAGERIAL OPERATIONAL
FUNCTIONS FUNCTIONS

Planning Procurement
Organising Employment
Directing Compensation
Coordinating Human Relation
Controlling Work culture
Human Resource
EVOLUTION OF HRM
 DIFFERENCE BETWEEN HRM AND
PERSONNEL MANAGEMENT
HRM
• It is the use of manpower of an entity
• It views employees as important asset
for the development of organisation
• The responsibility lies with all the
Organisation’s managers
• The management style is
transformational in nature
• Maintains direct communication
• Quick decisions are taken under HRM
• Receive payments according to their
performance
PERSONNEL MANAGEMENT
It refers to concerned workforce
It views employees as a Labour and
utilises them for the benefit of the
organisation
The sole responsibility lies only with the
organisation’s personnel department
The management style is transactional in
nature
Maintains indirect communication
Decision making is slow
Receives payment according to fixed
grades
 ISSUES AND PRACTICES IN HRM
 GREEN HRM :
Green HR is one which involves two essential elements: environmentally friendly HR
practices and the preservation of knowledge capital
Green HR involves reducing your carbon footprint via less printing of paper, video
conferencing and interviews etc.,

 INTERNATIONAL HUMAN RESOUCE MANAGEMENT (IHRM) :

It is the process of procuring, allocating and effectively utilising HR in International
business
FUNCTIONS OF IHRM
• Recruitment and Selection
• Development and Training
• Performance evaluation
• Remuneration
• Labour Relation
 STRATEGIC HRM :
It defines the Organisation intention and plans on how its business goals should be
achieved through people.
 ORGANISATIONAL DEVELOPMENT AND CHANGE :
Organisational Development is a complex educational strategy intended to change
the beliefs, attitudes, values and structure of organisations so that they can better adapt to new
technologies, markets and challenges .
Organisational change is the creation of imbalances in the existent pattern or situation.
Change requires individuals and organisations to make new adjustments.
 CAREER MANAGEMENT AND DEVELOPMENT :
Career Development is a process where employees strategically explore, plan, and
create their future at work by designing a personal learning plan to achieve their potential and
fulfil the organisation’s learning
 EMPLOYEE BENEFITS AND COMPENSATION :
Compensation is a systematic approach to providing monetary value to employees in
exchange for work performed.
 CHANGING CONCEPT OF HRM IN INDIA AND IN THE
GLOBE
In order to survive the competition and be in the race, HR department should consciously
update itself with the transformation in HR and be aware of the HR issues cropping up.
Some of the recent trends that are being observed in the field of HRM in India are as follows:
 HR Outsourcing :
The term outsourcing describes the procurement of resources from external suppliers that
were generated within the sourcing organisation.
Many large firms are getting their HR activities done by outside suppliers and contractors,
Employee hiring, training and development, maintenance of statutory records are the usual
functions contracted out to outsiders.
Advantages :
 Minimize employment risks and Reduce employment related expenses to Executives.
 Improved HR Efficiencies
 Cost reduction
 Health insurance benefits
 Employee’s improved performance
 Human Resource Information System :