CHAPTER ONE

Overview of Human Resource Management

By Yenew.B(PHD Candidate)
 Chapter Contents
◦1.1. Introduction
◦ 1.2. Definition of Human Resource Management (HRM)
◦1.3. Importance of HR management in organizations
◦1.4. Human Resource Management Objectives
◦1.5. Function of Human Resource Manager
Management is the process of getting things done through people.
◦Production/operation Management
◦Marketing Management
◦Finance Management
◦Material Management
◦Technology/Information Management
◦Human Resource Management (HRM)
 1.1. Introduction

◦Every organization is made up of people.

◦In all organizations, human beings are considered as a resource.
◦Of all resources in an organization, human beings make the greatest difference in
organizational goal achievement.
◦Acquiring these people, developing their skills, ensuring that they contribute to the
organizational development is essential.
◦In order to implement a successful business strategy, organizations must have the
right people capable of delivering the strategy.
◦Managing human resource is named differently by different organizations;
 Personnel Management,
 Workforce Management
 Staff management,
 Labor management,
 Manpower Management,
 Human Resource management , etc
◦Thus, Human Resource management is the area of management
concerned with people at work.
◦HRM addresses a set of functions or activities including :
◦ Human resource planning,
◦ Recruitment and selection,
◦ Induction and placement,
◦ Training and development,
◦ Performance appraisal,
◦ Compensation,
◦ Promotions, transfers and separation
◦ Integration and maintenance,

◦Newly emerging issues of Human resource like

◦ Diversity and its management,
◦ Sexual Harassment in Work Place,
◦ E- Human Resource Management
◦ Empowerment,
◦ HIV AIDS and the workplace.
 1.2. Definition of Human Resource Management (HRM)

◦Let us understand it by dividing the term into its sub-parts.

◦ Human – people, us
◦ Resource – assets for organizations
◦Management – plan, co-ordination and control to achieve set of
goals.
◦HRM is the management of one of the most important
resources of organizations (the-people).
 Human
Management
Resource
+ •Plan
•Organize
People •staff
•Direct
•Control
HRM
 is the management of humans or people working in an organization.
 is a subject related to human.
is responsible for how people are managed in the organizations.
◦ Bringing people in organization,

◦ Helping them to perform their work,

◦ Compensating them for their work and

◦ Solving any problems that arise.

 1.3. Importance of HR management in organizations

◦Human resources management is a very important function in every

organization.
◦Without human resources management function, companies
◦ would not be able to effectively recruit and retain employees,
and
◦ wouldn't be able to maintain a healthy workplace culture and
environment.
 ◦Good human resource management practice helps:
 To attract talented pools of people.
 To supply skilled workers through scientific selection process.
 To ensure maximum training and development of skill and competencies of human
resources.
 To prepares workers according to the changing needs of the industry.
 To reduce costs and to increase productivity.
 It helps management in the preparation, adoption and continuing evaluation of personnel
policies.
 To ensures maximum benefit out of the expenditure on training and development.
 To motivates workers, improve job satisfaction and enhance standard of living.
 To contributes a lot for harmony and healthy employer-employee relations
 1.4. Human Resource Management Objectives

◦The overall objective of HRM is to ensure that the organization is able to

achieve success through people.
◦The HRM objectives are:

◦Social
◦Organizational
◦Functional
◦Personal
 i) Societal Objectives

◦It relate to the satisfaction of social and community objectives.

◦HRM comprises programs fulfilling employees’ economic, psychological, ethical, and
social needs.
◦ For example,
◦ Good compensation and benefits programs for employees,
◦ Employment opportunities,
◦ Giving placement to deserving candidate,
◦ Best use of scare talents
◦ Community relations programs,
◦ Disability employment,
◦ Eliminating waste of human resources through conservation of physical and mental health,
◦ etc.
 ii) Organizational Objectives:

The goal of human resource management function is to ensure the

availability of
The correct/quantity/ number of employees

At the right place

 With the right skills and motivation.

This helps an organization to achieve its goals and objectives within the
specified time.
 iii) Functional Objectives:

 the preparation organizational policies related to employee

rights, employment, compensation, promotion, transfer, labor
relations, occupational health and safety and the like .
 This helps organizations maintain the quality of work life
and ensure ethical employee behavior.
 iv) Personal Objectives:
It is goal of human resource management function relate to the satisfaction of
employees through monetary and non-monetary devices.
Personal Objectives of HRM function like adequate training and development, good
compensation, job satisfaction, pride, recognition, promotion and development, job
security, feedback on their performance …
Personal objectives of HRM assist employees in achieving their personal
goals.
Personal objectives of employees must be meet, to be maintained,
retained and motivated.
Otherwise, employee performance and satisfaction may decline giving
rise to employee turnover.
 1.5. Function of Human Resource Manager

◦The Functions of Human Resource Management can

be discussed in two broad heads:
 Managerial functions, and
 Operative or Service functions
 Cont…
i) Managerial functions
 Planning: the determination of human resource program in advance .
 Organizing: Human resource managers must form an organization by designing the
structure of relationship among jobs and personnel.
 Staffing: ensures proper number of employees with appropriate skills in right jobs at
right time to achieve organizational objectives.
 Directing: It is getting people together to work willingly and effectively for the
achievement of organizational goals.
 Controlling: It is the process of measuring current performance and guide them towards
the plan.
 Cont…
ii) Operative Functions
Procurement:
 It is concerned with obtaining the proper kind and number of human resource
necessary to achieve organizational goal.
 It deals specifically with determination of human resource requirements, their
recruitment, selection and placement.
Development:
 Increasing human resources skill through training to achieve job performance standard.
Compensation:
 Proper compensation system takes into consideration, wage policies, wage systems,
wage rates and wage incentive schemes.
 Cont…

Integration:
 It is concerned with the attempt to affect a reasonable settlement of individual,
societal and organizational interests.
Maintenance:
 It is pointed on taking care of physical and mental wellbeing of the employees, like
safety & health measures and employees’ service program.
Separation:
 It is return of the employee to the society.
 The organization is responsible for meeting a certain requirement of due process in
separation, as well as assuring that the returned citizen is in a good shape as
possible.
People first
◦You take care of your employees!
◦They take care of customers!
◦customers take care of your business!
◦Business takes care of your profit/mission!

◦NB: Employees can make or mar an organization.