UNIT-1

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

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*HRM – An overview * Definition of HR *Functions of HRM

*Objectives of HRM * Features of HRM *Scope of HRM

*PM v/s HRM *HRD v/s HRM *Qualities of HR manager

*Role of HR manager *HRD policy * HRIM

*History of Development of HRM in India * Composition of HR department.

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Definition of HRM -                                                                      
“HRM is a process of bringing people and organisations together so that the goals of
each are met. It is a part of management process which is concerned with the
management of human resource in an organisation”.

“HRM is concerned with the most effective use of people to achieve organizational
and individual goals. it is the strategic approach to the management of an
organizational most valued assets-the people working there who individually and
collectively contribute to the achievement of its goals.”

 Functions of HRM –
 Acquiring
 Motivating
 Developing
 Retaining
The acquisition of human resources is a crucial function that starts with
PLANNING for the number and the categories of employees required (with the
right capabilities ands expertises) and ends with staffing.
The DEVELOPMENT function has following dimensions namely Employee
training, Management development and Career development.
The MOTIVATION function is the most important for the retention of people in
today’s organisations. It involves identifying the individual motivational needs of
employees and finding ways to motivate them.
The RETENTION function is perhaps the most complex function amongst all
challenges in today’s competitive business environment. it varies from industry to

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 industry and business to business, to provide a conductive work environment to
the employees and nurturing them to make them feel committed and
psychologically attached to the organisation.

 OBJECTIVES OF HRM-

1-Procurement of Manpower: The basic principle of procurement is right man to the

right job. The procurement function includes – manpower planning, recruitment,
selection, appointment, placement, induction, promotion and transfer of employees.

2. Development of Manpower:  It is concerned with the training and qualitative

development of employees. Manpower development is required for meeting the
growing and changing needs of manpower along with the expansion and
diversification of business activities.

3. Performance and Compensation of Manpower: Performance management

involves performance planning, performance appraisal, performance counselling and
payment of compensation to employees.

4. Motivation and Maintenance of Manpower: Motivation and maintaining

satisfied manpower requires health and safety measures, proper working conditions
provision of welfare facilities and other non-monitory benefits.

5.  Integration of Interests of Manpower and the Organisation: Manpower is

interested in wage payment while organisation is interested in higher profits and
market reputation etc. Personnel management has to reconcile the interests of both
parties.

6. Maintaining Cordial Industrial Relations: This function involves the designing

of industrial relation system, managing discipline, settlement of employee grievances
and managing disputes between management and employees.

7.  Miscellaneous:
 To attain self-development of the members of an organisation and also to
utilize available human resources.
 To establish working relationships between employer and employees and
between groups of employees.

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 To ensure the availability of a competent and willing workforce to the
organisation.
 To ensure satisfaction to the workers so that they are freely ready to work.
 To maintain high morale of the workers
 To secure the integration of individuals with the organisation by reconciling
individual goals with those of an organisation.
 To improve the services rendered by the enterprise to the society through
better workforce.

 Features of HRM –

HRM has following features-

 UNIVERSAL FORCE- HRM is universal in nature; it is present in all
organisations and is applicable at all levels of the management inn an
organisation. HRM is concerned and closely associated with the
strategic decision making process of the organisation involving all
departments and functions in the organisation.
 DECISION ORIENTED-HRM emphasizes on decisions, rather than
on record keeping, written procedures or rules, which had long been
the responsibilities of traditional personnel management practices.
These decisions might involve those with respect to performance
improvement through further training, or a promotion decision based
on satisfactory performance by an employee.
 FOCUS ON INDIVIDUAL NEED AND ASPIRATIONS-HRM
emphasizes on identifying the individual needs and aspirations of an
individual employee on the basis of through analysis of their
capabilities and future potential. It makes an attempt to help these
individuals to further develop their potential and encourage them to
give their best to the organization.
 EMPLOYEE ORIENTED-HRM is concerned about people .In
today’s highly competitive business percpective, concern for people
has a wider domain conceptually. It mainly deals and revolves around
the capabilities of people rather than the individual. Thus the paradigm
shift had been from assigning people on allotted tasks to utilize
knowledge and human capabilities for higher performance outcomes.
 DEVELOPMENT AND GROWTH ORIENTED-Development had
been long conceptualized as an initiative taken by an organization to

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 acquire better work related skills and behaviours. In the context
organisations are emphasizing more upon sharing and developing
knowledge, the concept of development attains a wider or broader
meaning in terms of realizing the capabilities of people/rather
knowledge workers. the reward and incentives structures of
organizations are needed to be fine tuned along with the development
oriented initiatives taken by the organization.
 MULTI-DISCIPLINARY NATURE-HRM is a multi disciplinary
practice drawing the knowledge and inputs drawn from various
disciplines and studies like those of psychology, sociology, political
science,economics,,financial concepts etc.The multi-discipline aspects
of hr functions ,help HR professionals assume the role of strategic
partners as well as internal consultants of the organization.
 ONGOING AND FORWARD LOOKING NATURE- HRM is an
ongoing process that start at the strategic levels in the organisations
and pervades into each and every functional domain of the
organization.Todays HR practices are mostly forward looking and they
constantly take into consideration the future needs and requirements of
the business.

 HRM relates to Managing People at work. It covers all level of

personnel and their needs, expectations etc.
 HRM is a people oriented process of bringing people and
organisations together so that the goals of each ate met properly.
 HRM is concerned with the development of employee’s potentialities.
 HRM is an integral part of organisation
 HRM is a continuous activity as personnel problems continue to exist
as long as employees are working in an organisation.
 HRM aims at securing willing cooperation of employees for achieving
organizational objectives.
 HRM is future oriented as it helps the organisation to achieve its
objectives in future.
 HRM is a challenging function as it deals with the employees who are
always unpredictable.

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SCOPE OF HRM

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 ROLE OF HR MANAGER

PERSONNEL WELFARE ROLE ADMINISTRATIVE FIRST

ROLE ROLE FIGHTING
LEGAL
ROLE
Advising Research on personnel and Time keep up Grievance
management on organizational problems handlings.
effective use of
Man power Managing services i.e.- Salary and wage Settlement of
planning, canteen, transport, medical administration disputes
recruitment and etc.
selection.
Training and Group dynamics, Maintenance of HR Discipline
development. leadership, motivation, records maintenance
communication.
Measurement Collective
of assessment bargaining
of individuals
as well as
group
behaviour.
Performances Workers
and potential participation,
appraisal. joint
consultation

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  Qualities of an HR Manager: -

To be successful in his job, a personnel manager must be a specialist in organization

theory and as such be an effective adviser to top management in organizational
matters as well as being able to organize his own dept/division in such a manner as to
minimize frictions, promote goodwill and release the latent energies of his own
people and associates to be expended on their primary assignments.

He/she should be real expertise in personnel administration- knowledge of relevant

laws, procedures, and techniques and of developments in theory and practice in
comparable economics, behavioural sciences’ contribution to personal management, a
bent for research in man- management, and should have a adequate knowledge of
behavioral sciences which study the reactions of individuals and groups to particular
sets of conditions and environments is an organization or a factory.

Other imp qualities that a personnel manager should posses are: -

 A mind with a capacity for creative thinking, for analyzing situations and
reasoning objectively.

 He should know the problem solving techniques and have an ability to inspire,
motivate and direct employees.

 A devoted sense of vocation and faith in humanity.

 Capacity for ledership, a sense of social responsibility and a standard of social

justice.

 Personal integrity so that employees may repose confidence in him.

 Capacity for persuasion, coupled with patience and tolerance.

 A friendly, approachable nature, which is tactful and sympathetic, and

pleasing personality, a well groomed appearance, sophisticated taste and
habits, and capable of working with and through other people.

 Initiative and decision making ability.

 Mobility of facial expression (which encourages confidence, conveys interest,

registers sympathy allays distrust) and finally,

 An ability to generate trust among his colleagues and develop acceptability,

recognition for himself and his ideas of communication with readiness and
fluency.

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  Readiness’s to cooperate the subordinates in times of difficulty and never to
interfere or thrust his advice on theirs.
 A promptitude in giving them the feedbacks in their handling on personal
matter whenever necessary in the interest of functioning of the organization
and establish personal policies of the company.

 Differences between Personnel Management (PM) and Human

Resources Management (HRM)

Definition of Personnel Management-

According to George R. Terry “Personnel management is concerned with the
obtaining and maintaining of a satisfactory workforce”.

Personnel mean employed persons of an organization. Management of these people is

personnel management (PM). Human resource management (HRM) is the
management of employees’ knowledge, aptitudes, abilities, talents, creative abilities
and skills/competencies.
 PM is traditional, routine, maintenance-oriented, administrative function
whereas HRM is continuous, on-going development function aimed at
improving human processes.
 PM is an independent function with independent sub-functions. HRM follows
the systems thinking approach. It is not considered in isolation from the larger
organization and must take into account the linkages and interfaces.
 PM is treated like a less important auxiliary function whereas HRM is
considered a strategic management function.
 PM is reactive, responding to demands as and when they arise. HRM is
proactive, anticipating, planning and advancing continuously.
 PM is the exclusive responsibility of the personnel department. HRM is a
concern for all managers in the organization and aims at developing the
capabilities of all line managers to carry out the human resource related
functions.
 The scope of PM is relatively narrow with a focus on administering people.
The scope of HRM views the organization as a whole and lays emphasis on
building a dynamic culture.
 PM is primarily concerned with recruitment, selection and administration of
manpower. HRM takes efforts to satisfy the human needs of the people at
work that helps to motivate people to make their best contribution.
 Important motivators in PM are compensation, rewards, job simplification and
so on. HRM considers work groups, challenges and creativity on the job as
motivators.

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  In PM improved satisfaction is considered to be the cause for improved
performance but in HRM it is the other way round (performance is the cause
and satisfaction is the result).
 In PM, employee is treated as an economic unit as his services are exchanged
for wages/salary. Employee in HRM is treated not only as economic unit but
also a social and psychological entity.
 PM treats employee as a commodity or a tool or like equipment that can be
bought and used. Employee is treated as a resource and as a human being.
 In PM employees are considered as cost centres and therefore, management
controls the cost of labour. HRM treats employees as profit centers and
therefore, the management invests in this capital through their development
and better future utility.
 PM’s angle is that employees should be used mostly for organizational
benefits and profits. HRM angle emphasizes on the mutual benefits, both of
employees and their families and also the company.
HRM PERSONNEL MANAGEMENT
HRM is the latest development in the
evaluation of management of man Personnel management precedes HRM
It gives more importance to the
abilities of employees rather than Performance is evaluated within the
evaluating them as per rules. framework of rules.
It works on the basis of integrated It works on the basis of piecemeal
initiative initiative
Process of decision making is fast Process of decision making is slow
It supports performance related
remuneration It supports fixed remuneration
It uses latest techniques of training It uses outdated techniques of training
and development and development
It practices division of work along with
team work It practices only division of work
It favours all round development of It favours contractual employment
employees based on written agreement
 PM preserves information and maintains its secrecy. In HRM communication
is one of its main tasks which take into account vertical, lateral and feedback
communication.

 IMPORTANCE OF HRM-

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People have always been central to organisations, but their strategic importance is
growing in today’s knowledge based industries.HRM helps an organisation and its
people to realise their respective goals thus:
 AT THE ENTERPRISE LEVEL: Good human resource practices can help
in attracting and retaining the best people in the organisation. Planning alerts
the company to the types of people it will need in short, medium and long run.
It helps on training people for challenging roles, development right attitude
towards the job and the company.
 AT THE INDIVIDUAL LEVEL: It promotes team work and team sprit
among employees. It offers excellent growth opportunities to people who have
the potential to rise. It allows people to work with diligence and commitment.
 AT THE SOCIETY LEVEL: Employment opportunity multiply scarce
talents are put to best use.
 AT THE NATIONAL LEVEL: Effective use of human resources helps in
exploitation of natural, physical and financial resources in a better Way.
People with right attitude, skills, proper attitudes and proper values help the
nation to get ahead and compete with the best in the world leading to better
standard of living and better employment.

 Attract and retain talent.

 Train people for challenging role.
 Develop skills and competencies.
 Promote team spirit
GOOD HR PRACICE HELPS------------  Develop Loyalty and commitment
 Increase productivity and profits
 Improve job satisfaction
 Enhance standard of living.
 Generate employment
opportunities

 HUMAN RESOURCE DEVELOPMENT

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HRD is part of HRM and constitute one wing of HRM department. HRD is concerned
with the training and qualitative development of employees.HRD means developing
or trapping hidden qualities in people in order to make them accomplish new
functions leading to organizational and individual goals.HRD is concerned with the
development and the implementation of people strategies, which are integrated with
corporate strategies and ensures that the culture, values and structure of the
organisation and the quality, motivation and commitment of its members contribute
fully to the achievement of its goals.

HRD is the process of increasing knowledge, skills, capabilities and positive work
attitude and values of all people working at all levels in an organisation.

Features of HRD-

 HRD is a system of several interdependent sub-systems such as procurement,

appraisal, development etc.
 HRD is a planned process of developing people on a continuous basis.
 HRD is an interdisciplinary concept as it uses principles of different areas such
as psychology, economics, sociology etc.
 HRD basically develops competencies at individual, groups and organizational
level.

Role & Responsibilities of HRD 

 HRD makes effective use of manpower by employing right man to the right
job at right time.
 HRD facilitates human resource planning and control by maintaining data
about the manpower of organisation.
 HRD influence the employees to accept the change willingly.
 HRD creates mutual trust and confidence leading to overall better
performance.
 HRD maintains transparency in administration.
 HRD encourages employees to show innovation while solving problems.

HRD Policy 

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HRD policy is a statement of an organisation, which provides a broad framework
within which a decision on human resource can be made. HRD policy is formulated
by the HRD department under the supervision of top management. HRD policy
includes procedures, programmes and practices affecting human resources. This
policy makes clear code of conduct thereby providing pleasant work atmosphere.
HRD policy is a long life policy; they can be used repeatedly to solve recurring
problems.

HRIS:
The concept of Human Resource Information System (HRIS) has been derived from
the concept of Management Information System (MIS). HRIS may be defied as “a
systematic procedure for collecting, storing, maintaining and retrieving data needed
by an organisation about its human resource and various activities”.

Like any other information system, HRIS has three basic components – input, storage
and output. The output may be in the form of hard copy or soft copy. The information
supplied by HRIS is used by all departments of organisation.

The basic objective of HRIS is to provide accurate, relevant and timely information
about human resources and their functioning in the most cost effective way. At
present, every organisation generally uses computerised HRIS, which is fast, accurate
and compact in storing the information.

HRD V/S HRM

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  HRM is a subset of the entire management processes of an organization. HRD
is a subset of HRM.

 Scope of HRM is wider. Scope of HRD as compared to HRM is narrower.

 HRM manages and develops the human elements of an organization in its

entirety on longer term basis. HRD focuses on those learning experiences
which are organized for a specific period to bring about the desired behavioral
changes.

 HRM emphasizes that employees, their abilities and their attitudes constitute
an important organizational resource that should be used effectively and
efficiently to achieve organizational as well as employees' goals. HRD
emphasizes mainly on training and development of employees.

 HRM takes decisions on HRD plans. HRD thus depends on the decisions of
HRM.

 HRM at its center has HRD. HRD's cooperation is important for overall
success of HRM. HRD has to work within the realm of HRM and therefore, its
objectives should be in tandem with the broader objectives of HRM. Thus,
HRM and HRD are interdependent.

 HRM takes care of all the human needs and tries to satisfy these needs so that
the employees are motivated from all the angles to contribute their best to
achieve organizational goals. HRD focuses on upgrading the skills and
competencies of the employees in order to improve the performance of the
employees on the job.

HRD HRM

It is a continuous process. It’s a routine and administrative function.

It deals with the development and up- It deals with the optimum utilisation of
gradation of human capital in the the human capitals in the organization.
organisation.

It is independent in nature. It is integrative and supportive in nature.

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 It is a subsystem of a large system and It is a function of more independent
more organizational oriented in nature. activities with separates role to play.

It is more proactive; it deals with the It is mainly a reactive function

changing needs of the people as well as responding to the demands which may
anticipates these needs. arise.

It contributes to developing the whole It is concerned with people only.

organisation.eg-organizational dev.

HRD tries to bring out the qualitative HRM takes the stock of human capital as
changes in the stock of human capital in given and tries to optimally allocate it
an organisation in accordance with the among different process/activities in such
corporate objectives and needs. a way that its effectiveness is maximized.

 HISTORICAL DEVELOPMENT OF HR IN INDIA:

 Early phase

 Legal phase

 Welfare phase

 Development phase

PERIO EMPHASIS STATUS ROLES

D

1920- Welfare management, paternalistic clerical  Welfare

1930 practices administrator

 Policemen

1940- Expanding the role to cover Administrativ  Appraiser

1960 labour,welfare,industrial relations e
and personnel administration  Advisor

 Mediator

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  Legal
advisor

1970- Efficiency, effectiveness Development  Change

1980 dimensions added. emphasis on agent
human
values,aspirations,dignity,usefulne  Integrator
ss
 Trainer

 Educator

1990- Incremental productivity gains Proactive,  Developer

Onward through human assets growth
s oriented  Counsellor

 Coach

 Mentor

 Problem
solver

 Shifts in HR Management in India:

TRADITIONAL HR PRACTICE EMERGING HR PRACTICE

 Administrative Role  Strategic role

 Reactive  Proactive

 Seprate,Isolated from co. vision  Key part of the organisational

mission

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  Production focus  Service focus

 Functional organisation  Processing based organisation

 Individual encouraged, single out  Cross functional teams,team work

for praise, reward
 People as key asstes.
 People as expenses

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