Meaning of HR and HRM, Nature & Scope of HRM, Functions of HRM, Role and Objectives of HRM, Personnel Management, Policies and Strategies and Recent Trends of HRM.

1. By
Dr. H.S. ABZAL BASHA, M.B.A., Ph.D., L.L.B.
Assistant Professor,
Department of Management Studies,
G. Pullaiah College of Engineering & Technology, Kurnool.
UNIT-1: HUMAN RESOURCE MANAGEMENT

2. Why ?
What is Your Favorite Job
and Company
2
 Company Name/Brand
 Salary/Package
 Working Conditions
 Rewards / Incentives
 Career Growth

3. Evolution of HRM?
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Inception any business activity starts with 4Ms. i.e., Man, Money, Machine and
Material. If we distinguish the historical evolution of Business activities the
priorities of primary factors have been changed centuries together.
Key Elements:
• Industrialization,
• 17th Century Machines,
• 18th Century Raw Materials,
• 19th Century Money and
• 20th Century Human Resources.
Organizations might have sufficient financial sources (Money), world’s finest raw
material (Material), and advanced technological machinery (Machine), but, the
efficient workforce (Man) only could able show the difference. Because, human
source only the “M” who makes to function all other things, i.e., Human source
called as Human Resource. The success of any organization fundamentally
depends upon their human resources.

4. Information technology (IT) — a wonderful creation of man – brought significant
shifts in our day-to-day life. Indian software professionals made significant strides
in the information technology industry of USA.
Employees of Rourkela Steel Plant turned the loss-making unit into a profit-making
company. Similarly, employees of TISCO, acquired core competencies for their
company which was affected by dumping of steel from China. Most of the public
sector companies like Hindustan Machine Tools Ltd. (HMT), and Hindustan Cables
Ltd., (HCL) became sick. Thus, the people make or mar an organisation. How to
induce the people to make an organisation but not to mar it? Every company or
organisation is deeply interested in having an answer to this question. The answer
to this question centred around the following areas:
Getting the people who can make an organisation.
Enabling those people to acquire required capabilities to make a successful
organisation.
Motivating them to contribute their resources continuously for running the
organisation successfully.
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5. Human resources is the set of people who make
up the workforce of an organization, business
sector, industry, or economy. Similar terms
include manpower, labor, human capital,
personnel, associates or simply: people.
Michael J. Jucius “HR are a whole consisting of
inter-related, inter-dependent and interacting
physiological, psychological, sociological and
ethical components.”
According to Leon C. Megginson, the term
human resources (HR) can be thought of as “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.”
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What is Human Resource?

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Human resources comprise the value of the productive capacity of entire work
force of any Organisation. To be specific and brief, human resource refer to the
aggregate of knowledge, skill, experience and health of employees working in any
Organisation.
And development of human resource accounts for the development of human
side of the organisation.
The word HUMAN has five letters and each letter speak of a distinct characteristic
of human being as
H - Hears
U - Understands
M - Moves
A - Adjusts
N - Negotiates

7.  According to Edwin B. Flippo, “Human resource management is the
planning; organising, directing and controlling of procurement,
development, compensation, integration, maintenance and separation of
human resource to the end that individual and societal objectives are
accomplished.”
 French Wendell states, “Personnel or human resource management is
the recruitment, selection, development, utilisation, compensation and
movement of the human resources by the organisation.”
 According to Michael J. Jucious, Human resource management is that
field of management which has to do with planning, organising and
controlling the functions of procuring, developing, maintaining and
utilising a labour force such that the-
(a) Objectives for which the company is established are effectively achieved.
(b) Objectives of all levels of personnel are served to the highest possible degree.
(c) Objectives of society are duly considered and served.
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Definition

8.  Pigors and Myers – “It is basically a method of
developing potentialities of employees so that
they feel maximum satisfaction of their work
and give their best efforts to the organization”.
 Byars and Rue – “Human resource management
encompasses those activities designed to
provide for and coordinate the human resources
of an organization Human resource functions
refer to those tasks and duties performed in
organizations to provide for and coordinate
human resources”.
 Ivancevich and Glueck – “Human resource
management is the function performed in
organizations’ that facilitate the most effective
use of people (employees) to achieve
organizational and individual goals”.
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11. Nature of HRM
People in any organisation manifest themselves, not only through individual
sections but also through group interactions. When individuals come to their
workplace, they come with not only technical skills, knowledge etc., but also with
their personal feelings, motives, attitude, talent-job fit, values etc.
Complex Dynamism: A close observation of employees reveals that they are
complex beings, i.e., (i) economic, (ii) physiological, (iii) psychological, (iv)
sociological and (v) ethical beings.
A Social System: The HR manager involves himself in administering a social
system. In this process, the manager has to see that the economic satisfaction for
a reasonable livelihood, the social satisfaction of working together as members
of a group and individual job satisfaction of a worker are attained
A Challenging Task: The HR manager plays a crucial role in understanding the
changing needs of the organisation and society. Further, he faces some
challenging tasks in attaining the employee, organisational and societal
objectives with the available resources.
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13. Scope of HRM
The scope has been continuously enlarging from providing welfare facilities,
motivation, performance appraisal, human resources management, maintenance
of human relations, strategic human resources and the like.
The scope of Human Resources Management includes:
 Organisation of HRM
 Strategic HRM
 Employment
 Development
 Wage and salary administration/compensation
 Maintenance
 Motivation
 Industrial relations
 Participative management and
 Recent developments in HRM.
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15. Importance of HRM
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1. Objective
2. Facilitates professional growth
3. Better relations between union and management
4. Helps an individual to work in a team/group
5. Identifies person for the future
6. Allocating the jobs to the right person
7. Improves the economy

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17. Functions of HRM
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Employment
 Job Design
and Analysis
 Human
Resources
Planning
 Recruitment
and Selection
 Placement
 Orientation
Compensation
Management
 Job Evaluation
 Performance
evaluation
 Wage & Salary
Administration
 Social Security
and Welfare
 Incentives and
benefits
Human
Resources
Development
 Career
Planning and
Development
 Workers’
Training
 Executive
Development
 Organizational
Development
Human
Relations
• Motivation and
Job Satisfaction
• Morale
• Communication
• Leadership
• Work
Environment
• Industrial
Accidents
• Safety and Health
Industrial
Relations
Indian Labour
Market
Industrial
Relations
Trade Unionism
Collective
Bargaining
Industrial Conflicts
Workers’
Participation in
Management and
Quality Circles
Operative Functions

19. Role of HRM
1.Humanitarian Role: Reminding moral and ethical obligations to employees.
2.Counsellor: Consultations to employees about marital, health, mental, physical
and career problems.
3.Mediator: Playing the role of a peacemaker during disputes, conflicts between
individuals and groups or management.
4.Spokesman: To represent the company in Media and other forums because he
has better overall picture of his company’s operations.
5.Problem Solver: Solving problems of overall human resource management and
long-term organizational planning.
6.Change Agent: Introducing and implementing institutional changes and installing
organizational development programs.
7.Management of Manpower Resources: Broadly concerned with leadership both
in the group and individual relationships and labour-management relations.
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20. Qualities of an HR Manager
1. Knowledge.
2. Intelligence.
3. Communication Skills.
4. Objectivity and Fairness.
5. Leadership and Motivational Qualities.
6. Emotional Maturity.
7. Empathy.
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21. Objectives of HRM
The objectives of HRM can be broken down into four broad categories:
Societal objectives: Measures put into place that responds to the ethical and
social needs or challenges of the company and its employees. This includes legal
issues such as equal opportunity and equal pay for equal work.
Organizational objectives: Actions taken that help to ensure the efficiency of the
organization. This includes providing training, hiring the right number of
employees for a given task or maintaining high employee retention rates.
Functional objectives: Guidelines used to keep HR functioning properly within
the organization as a whole. This includes making sure that all of HR's resources
are being allocated to their full potential.
Personal objectives: Resources used to support the personal goals of each
employee. This includes offering the opportunity for education or career
development as well as maintaining employee satisfaction.
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1.To act as a liaison between the top management and the employees
2.To arrange and maintain adequate manpower inventory, which, in turn,
ensures the smooth working of the organization
3.To offer training as a way of developing skills, enhancing productivity
and, most importantly, increasing individual and organizational
performance to achieve the desired results
4.To devise employee benefit schemes for improving employee
motivation and group morale and enhancing employer–employee
cooperation
5.To ensure and enhance the quality of work life, which refers to the
employees’ perception of their physical and psychological well-being at
work
6.To help keep up ethical values and behaviour amongst employees both
within and outside the organization

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Evolution of HRM In India

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Evolution Of HRM In India
Period
Development
Status
Outlook Emphasis Status
1920s-
1930s
Beginning
Pragmatism of
capitalists
Statutory, welfare
paternalism
Clerical
1940s -
1960s
Struggling for
recognition
Technical,
legalistic
Introduction of
Techniques
Administrative
1970s Achieving Professional,
Regulatory,
conforming,
imposition of
Managerial
1980s Sophistication
Legalistic,
impersonal
Standards on other
Functions
1990s Promising Philosophical
Human values,
productivity
through people
Executive

26. Differences Between
Personnel Management and HRM
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Dimension PM HRM
Meaning
The aspect of management
that is concerned with the
work force and their
relationship with the entity is
known as Personnel
Management.
The branch of management
that focuses on the most
effective use of the
manpower of an entity, to
achieve the organizational
goals is known as HRM.
Approach Traditional Modern
Treatment of manpower Machines or Tools Asset
Type of function Routine function Strategic function
Basis of Pay Job Evaluation Performance Evaluation
Management Role Transactional Transformational
Communication Indirect Direct

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Dimension PM HRM
Labor Management Collective Bargaining Contracts Individual Contracts
Initiatives Piecemeal Integrated
Management Actions Procedure Business needs
Decision Making Slow Fast
Job Design Division of Labor Groups/Teams
Focus
Primarily on mundane activities
like employee hiring,
remunerating, training, and
harmony.
Treat manpower of the
organization as valued assets,
to be valued, used and
preserved.
Result Organizational goal is achieved
and employers are satisfied.
Organizational goal is achieved
and both employers and
employees are satisfied.

28. Policies and Strategies of HRM
A policy is a plan of action.
Brewster and Richbell defined HRM policies as, “a set of proposals
and actions that act as a reference point for managers in their
dealings with employees”.
“HR policies constitute guides to action. They furnish the general
standards or bases on which decisions are reached. Their genesis lies
in an organisation’s values, philosophy, concepts and principles”.
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29. Sources of Content for Formulating HRM Policies:
Policies are formulated on the basis of different sources like:
 Past experience of the organisation,
 Existing practices and experiences of competitors,
 Attitudes, philosophies of the management at various levels,
employees, trade unions, etc,
 The knowledge and experience gained by all line managers and
HR managers in handling personnel issues,
 Organisational policies etc.
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30. Development of HRM in India
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1923 Workmen’s Compensation Act
1926 Indian Trade Unions Act
1936 The Payment of Wages Act
1946 Industrial Employment Act
1947 Industrial Dispute Act
1948 Factories Act
1948 Minimum Wages Act
1952 Provident Fund Act
1959 The Employment Exchange
1961 The Apprentice Act
1961 The Maternity Benefit Act/ The Maternity Benefits (Amendment) Act, 2017
1965 The Payment of Bonus Act

31. Development of HRM in India
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1970 The Contract Labour Act
1971 Family Pension Fund Act
1972 Payment of Gratuity Act
1976 Deposit Linked Insurance Scheme
1985 Ministry of Human Resources Development established
1987 Emphasis has been shifted to modern techniques of HRM
1995 Emphasis has been shifted to Human Resources Development (HRD)
2001 Emphasis has been on ‘smart sizing of the organisations
2004 Shift from skilled workers to knowledge workers
2007 The concept of HRM has been relegated to human capital management
2008 Emphasis has been on retention management and development
2013 Prevention of sexual harassment in the workplace
2014 Emphasis is shifted to talent management and flexible HR policies and practices

32. Recent Trends in HRM
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 Workers Participation in Management (WPM),
 Quality Circles (QC),
 Autonomous Work Groups (AWG),
 Self-directed Teams (SDT),
 Total Quality Management (TQM),
 Quality of Work Life,
 Work Life Balance,
 Employee Empowerment,
 Employee Engagement,
 Talent Management,
 Knowledge Management,
 Human Resource Accounting/ Audit,
* Employee for Lease
* Moon Lightening by Employee
* Dual Career Group
* Flexi time
* Employee Proxy.

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