1

Introduction to
Human Resource
Management
(HRM)
 Introduction
2
 Organization is a group of people established either
formally or informally for the attainment of certain
objectives.
 So, people are the foundation of any organization.
 In societal context, organization need people and
people need organization.
 It is people who staff, lead and control organizations.
 Persons involved in an organization are referred as
human resource.
 Simply, the overall management of such personnel in
an organization is called human resource management
(HRM).
 Who are Human Resource?
3

 In organizational context, the personnel involved in

different activities of an organization are the human
resources of that organization.
 Such type of personnel (referred as human resources) have
one thing common i.e. fulfillment of their assigned duties
& responsibilities in order to achieve the organizational
goal and objectives.
 People become human resource when they involved in any
organization with physical strength, energy and
competencies. Competencies consists of knowledge, skill,
attitudes and potential for growth.
 Human resources areeffectively mobilized by the
organization for the achievement of desired results.
 Human Resource Management
4

 An essential function of management; and also an

important part of every manager’s job.
 HRM is concerned with managing people in
organizations.
 It is concerned with philosophy, principles, policies
and practices related to human aspect of
management.
 It aims at achieving organizational objectives
through the efficient and effective mobilization of
human resources.
Contd…
5

According to Donnelly and Gibson,

 HRM is the process of accomplishing organizational
objectives by acquiring, retaining, terminating,
developing and properly using the human resources
in an organization.

According to Gary Dessler,

 HRM refers to the policies and practices involved in
carrying out the people or human resource aspects of
a management position, including recruiting,
screening, training, rewarding and appraising.
 6

Human Resource Management (HRM) is a process

concerned with the management of personnel
along with their energies and competencies for the
achievement of organization objectives by the
process of acquiring, developing and utilizing such
personnel.
 Evolution of HRM
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 A number of academics and practitioners in the past

have contributed a great deal to the development of
HRM.
 The history of its development goes back to the early
management pioneers, Robert Owen (1771 – 1858) and
Charles Babbage (1792 – 1871).
 Similarly, other developments such as the industrial
revolution, the principles of scientific management,
the classical organization theory and more recently,
the behavioral science movement and the organization
development movement have influenced the
development of personnel management and HRM.
 Contd…
8

 The trend of the development of HRM in the past

can be explained through following periods.

 Early Scientific Management
 Scientific Management
 Human Relations Movement
 The New HRM Era
 Early Scientific Management
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 The history can be traced back to the Origin of

Personnel Management. In the beginning of 18th
century, many masons, carpenters, leather workers
and people of other crafts organized themselves into
guilds.
 the later part of 18th century, the
Concept was developed by some prominent family
Welfare
business houses in the UK.
 Industrial Revolution started from the late 18th
century. Labor was treated as commodity to be
bought or sold. There was strict system of
punctuality and rigorous working rules.
 Scientific Management
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 F.W. Taylor invented principles of scientific

management in the 19th century.
 He suggested to plan work and gave methods to
maximize productivity and minimize inefficiencies.
 In his studies, he explained less about humanization
of workplaces and focused more on output from the
workers.
 Human Relations Movement
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 Elton Mayo and Fritz Roethlisberger investigated the

causes of low productivity different from Taylor’s
perspective.
 The Hawthorne studies (1927 – 1932) laid the
foundation for the human relations movement and
explain why human elements are important to rise
productivity.
 The HRM Era
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 It was by 1920s, personnel management began to
taught at university level in US.
 At the period of 1920s, a number of large companies
established personnel departments.
 During 1930 – 1950, many instances of exploitation
of labor appeared.
 Subsequently, a labor relations movement in the
form of Labour Unions and collective bargaining
emerged and remained successful during 1935 –
1960.
 Personnel department started to work in
collaboration with union representatives.
 Contd…
13

 The HRM era, began in 1950s, comprises

 the work of pioneers,

 human capital concept,
 concept of corporate culture and
 the new HRM.
 14

The Work of Pioneers

ter  F. Drucker is the main inventor of HRM
concept. He had suggested how an
management contributes to direct effective all
towards a common goal. managers
 Douglas McGregor emphasized the strategic
importance of personal policies and their integration
with business objectives.
 15

Human Capital Concept

 T. Schulz invented human capital theory and cited

example of how qualified and committed human
resources contributed in the post war economy of
Germanny and Japan.
 16

Concept of Corporate Culture

 The book “The art of Japanese Management” by R.
Pascale and A. Athos in 1981 stated that shared
values of management and workers are the secret of
Japanese Management.
 The book “In search of excellence” written by T.J.
Peters and R. Waterman in 1982 named 43
successful companies in the U.S. that were driven by
the managers’ values and achieved productivity by
paying close attention to the needs of their people.
 17

The New HRM

 Traditional American personnel management and
industrial relation systems were challenged by the
process of globalization, rapid technological
advances, shorter product lifecycles and changing
customers and investors demands.
 Many US industries were facing the under-utilization
and unemployment of human resources.
 The reasons for such problems were: adverse union-
management relations, low employee motivation &
trust in management, hierarchical management,
restrictive work practices and, finally, resistance of
 18

 Promoted by this challenges, American business has

begun to place greater emphasis on the management of
human resources to improve productivity and quality
and thus to be competitive internally and externally.
 In academic literature, at least, the terms ‘personnel
management’ and ‘personnel administration’ have been
virtually replaced by the term ‘HRM’.
 In UK, the concept of HRM arrived around 1985 – 86,
when the British industry was suffering from restructuring
effects due to recession & loss of competitiveness.
 Anti-union legislation of the Thatcher government
encouraged firms to introduce new labor practices and
re-order their collective bargaining arrangements.
 Nature of HRM
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Human Focus
 People concern, develops & utilize human
potential, regard people as an important asset of
organization
Management Function
 Applies mgmt principles & functions, perform by
all level of managers
Dynamic
 Affected by changes in envn (political-legal, economic,
socio-cultural & technological)
Mutually oriented
 Mutuality between employer and employees.
 Components of HRM
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 Human Resource Planning

 Recruitment & Selection

 Performance Management

 Training and Development

 Employee – Management Relation

 Management Information System

 HRM Process
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 The process of HRM involves attracting, developing

and maintaining a talented and energetic workforce.
 The basic goal of HRM is to build organizational
performance capacity by raising human capital, to
ensure that highly capable and enthusiastic people
are always available.
The 3 major responsibilities of HRM are
1. Attracting a quality workforce
2.Developing a quality workforce
3.Maintaining a quality workforce
Contd…
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Attracting a quality workforce

 Involves human resource planning, employee
recruitment and selection.
Developing a quality workforce
 Involves employee orientation, training &
development and performance appraisal
Maintaining a quality workforce
 Involves career development, work life balance,
compensation and benefits, retention and turnover,
and labor-management relations.
 Attracting a quality workforce
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 Human Resource Planning

   

 Recruitment

   
 Selection.

  
24
 Developing a quality workforce
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 Induction/orientation

   
  
 
 Training and Development

   
  
 
 Performance Appraisal
 Maintaining a quality workforce
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 Career Development
   
 Work-life Balance
   
 Compensation and Benefits
  

 Retention and turnover
   
 Labor-management Relations
   
Elements & Model of HRM
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 Functions of HRM
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 Human Resource Planning

 Acquisition of Human Resources
 Utilization of Human Resources
 Development of Human Resources
 Maintenance of Human Resources
 Control of Human Resources
 Harmonious Employer-Employee Relationship
 Attainment of organizational objectives
 System Model of HRM
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Input Process Output

• Human energy Organizational

• Acquisition
& competencies • Goals achievement
• Organizational • Development
• Quality of work life
• Utilization
Plan • Productivity
• HR Plan • Maintenance
• Readiness for change
• HR Inventory Personal
• Job Analysis • Commitment
• Competence
• Congruence

Feedback
 Challenges to HRM
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 Globalization
 Technological Advances
 Nature of work
 Size & composition of the workforce.
 Rising employees' expectations
 Life-style changes
 Less attached/temporary employees
 New HRM concerns
 Learning organizations
 Impact of new economic policy.
 Political ideology of the Government.
 Trends and Issues of HRM
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Issues of HRM
 Corporate Planning and Objectives

 Human Resource Planning

 Recruitment, Selection, and

Placement
 Employee training and development

 Performance Evaluation

 Salary and other benefits

 Job Design

 Employee Relations
 Barriers to Development of HRM
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 HRM is mainlyconcerned with utilizing human

energies.
 It is least concerned with developing
human competencies and potential for growth of
employees.
 Its focus is on achieving organizational goals without
much regard to personal goals of employees.
 HRM has not assumed a strategic role in
management.
 People are not considered as a source of competitive
advantage and important assets.
Contd…
33

 HRM is not given a strategic role. It lacks clear cut

vision, mission and goals.
 The attitudes of top management are not favorable
towards HRM. Human resources are viewed as a cost
rather than assets by management.
 HRM is considered as a firefighting job to deal with
labor grievance and indiscipline.
 Line managers do not feel ownership for HRM.
 Lack of mutual trust between labor and management.

Multiplicity of unions, union

politicialization of unions challenges, negative
management towardsand labor unions. attitude
Contd…
34

 HR aspects are not considered in policy and plan

formulation.
 Human resource development has remained an area
of low priority. This has retarded professionalism in
HRM. Performance based HRM practices are
lacking.
 Legal framework has remained weak and largely
welfare oriented.
 HRM is short range oriented. It is least concerned
with future potential development of employees.
Thank You!