Introduction to HUMAN RESOURCE MANGEMENT.pptx

Introduction to HRM: Meaning,
definition, scope, objectives and
functions of Human Resource
Management

• 1. Learning Outcome:
• After completing this module the students will
be able to:
• Understand the meaning and definition of
• HRM. What is the scope of HRM.
• Describe the Objectives of HRM.
• Understand the functions of HRM.

• 2. Introduction
•
• Why name human resource management?
• Human: refer to the skilled workforce in the organisation.
• Resource: refer to limited availability or scarce.
• Management: refer to maximise or proper utilisation and
make best use of limited and a scarce resource.
• The success of any organization depends upon how it manages its
resources. While several resources arethe non–
humanresource such as land, capital, and equipment, it is the
human resource and its management which is at the heart of an
organization’s success.

• 1.1 According to Lawrence Appley, “Working with, for and through people
is the way in which a manager accomplishes his job. Maintaining good
human resources is a Manager’s responsibility. Providing human
satisfaction from work output and relationship is a Manager’s obligation.”
• 1.2 In the words of Mr. NR Narayana Murthy, Chairman Emeritus, Infosys,
“You must treat your employees with respect and dignity because in the
most automated factory in the world, you need the power of human mind.
That is what brings in innovation. If you want high quality minds to work
for you, then you must protect the respect and dignity.”
• 1.3 In the words of John F. Kennedy, “Our progress as a nation can be no
swifter than our progress in education. The human mind is our
fundamental resource.”

• 3. Meaning and Definition
• Essentially, the Human Resource Management (HRM) is a
management function that deals with recruiting, selecting,
training and developing human resource in an organization.
It isconcerned with the”people” dimension in
management. It includes activities focusing on the effective
use of human resources in an organization. It is concerned
with thedevelopment of a highly motivated and
smooth functioning workforce. It also includes planning,
acquiring, developing, utilising and maintaining ‘human
resources’ in theachievement of organizational goals.

• 3.1 According to Edwin B. Flippo, “Human resource management is the planning,
organizing, directing, and controlling of the procurement, development, compensation,
integration, maintenance and separation of human resources to the end that
individual, organizational and societial objectives are accomplished.”
• 3.2 The Indian Institute of Personnel Management defines HRM as, “Human resource
management is a responsibility of all those who manage people as well as being a
description of the work of those who are employed as specialists. It is that part of
management which is concerned with people at work and with their relationships
within an enterprise. It applies not only to industry and commerce but to all fields of
employment.”
• 3.3 According to Tead and Metcaff, “Human resource management is the planning,
supervision, direction and co-ordination of those activities of an organization which
contribute to realising the definite purpose of that organization, with an animating
spirit of co-operation and with a proper regard for the well-being of all the members of
the organization.”
• 3.4 Milkovich and Boudreau view HRM as, “A series of integrated decisions that form
the employment relationship; their quality contributes to the ability of the
organizations and the employees to achieve their objective.”

• 4. Scope of HRM
• The scope of HRM is indeed vast. All major activities in the working life of a
worker -from the time of his or her entry until he or she leaves- come under
the purview of HRM.
• 4.1. According to Dale Yoder, the scope of human resource management
consists of the following functions:
• 4.1.1. Setting general and specific management policy for organisational
relationships, and establishing and maintaining a suitable organisation for
leadership and co-operation.
• 4.1.2. Collective bargaining, contract negotiation, contract administration
and grievance handling.
• 4.1.3. Staffing the organisation, finding, getting and holding prescribed
types and number of workers.
• 4.1.4. Aiding in the self-development of employees at all levels providing
opportunities for personal development and growth as well as for acquiring
requisite skill and experience.

• 4.1.5. Developing and maintaining motivation for workers by providing incentives.
• 4.1.6. Reviewing and auditing manpower management in the organisation.
• 4.1.7. Industrial relations research – carrying out studies designed to explain
employee behavior
• 4.2. The Indian Institute of Personnel Management has described the scope of
human resource management into the following aspects:
•
• 4.2.1. The Labour or Personnel Aspect: It is concerned with manpower planning,
recruitment, selection, placement, induction, transfer, promotion, demotion,
termination, training and development, layoff and retrenchment, wage and salary
administration (remuneration), incentives, productivity, etc.
•
4.2.2. The Welfare Aspect: This aspect is concerned with working conditions and
amenities such as canteens, creches, rest rooms, lunch rooms, housing, transport,
education, medical help, health and safety, washing facilities, recreation and cultural
facilities, etc.
• 4.2.3. The Industrial Relations Aspect: This is concerned with the company’s relations
with the employees. It includes union-management relations, joint consultation,
negotiating, collective bargaining, grievance handling, disciplinary actions, settlement
of industrial disputes, etc.

• 5. Objectives of HRM
• The primary objective of HRM is to ensure the availability of a
competent and willing workforce to an organization. Apart from
this, there are other objectives too.
• Specifically, HRM objectives are four fold: societal,
organisational, functional, and personal.
• 5.1. Societal Objectives
• The societal objectives are socially and ethically responsible for
the needs and challenges of society. While doing so, they have to
minimize the negative impact of such demands upon the
organisation. The failure of organisations to use their resources
for society’s benefit in ethical ways may lead to restrictions. For
example, the society may limit human resource decisions to laws
that enforce reservation in hiring and laws that address
discrimination, safety or other such areas of societal concern.

• 5.2. Organisational Objectives
• The organisational objectives recognise the role of human
resource management in bringing about organisational
effectiveness. Human resource management is not an in
itself; it is only a means to assist the organisation with its
primary objectives. Simply stated the human resource
department exists to serve the rest of the organisation.
• 5.3. Functional Objectives
• Functional objectives try to maintain the department’s
contribution at a level appropriate to the organisation’s
needs. Human resources are to be adjusted to suit the
organisation ’s demands. The department’s level of
service must be tailored to fit the organisation it serves.

• 5.4. Personal Objectives
• Personal objectives assist employees in
achieving their personal goals, at least in so far
as these goals enhance the individual’s
contribution to the organisation. Personal
objectives of employees must be met if they
are to be maintained, retained and motivated.
Otherwise, employee performance and
satisfaction may decline giving rise to
employee turnover.

• 6. Functions of HRM
• Human Resources management has an important role to play in
equipping organizations to meet the challenges of an expanding and
increasingly competitive sector. Increase in staff numbers, contractual
diversification and changes in demographic profile which compel the HR
managers to reconfigure the role and significance of human resources
management.
• Human Resource or Personnel Department is established in most of the
organisations, under the charge of an executive known as Human
Resource/Personnel Manager. This department plays an important role
in the efficient management of human resources.
• Some of the major functions of human resource management are as
follows:
• Managerial Functions
• Operative Function
• Advisory Function

• 6.1. Managerial Functions:
• The Human Resource Manager is a part of the organisational
management. So he must perform the basic managerial
functions of planning, organising, directing and controlling in
relation to his department. These functions are briefly
discussed below:
• 6.1.1. Planning: To get things done through the subordinates,
a manager must plan ahead. Planning is necessary to
determine the goals of the organisation and lay down policies
and procedures to reach the goals. For a human resource
manager, planning means the determination of personnel
programs that will contribute to the goals of the enterprise,
i.e., anticipating vacancies, planning job requirements, job
descriptions and determination of the sources of recruitment.

• The process of personnel planning involves three essential steps.
• 6.1.1.1. A supply and demand forecast for each job category is made. This
step requires knowledge to both labour market conditions and the strategic
posture and goals of the organization.
• 6.1.1.2. Net shortage and excess of personnel by job category are projected
for a specific time horizon.
• 6.1.1.3. Plans are developed to eliminate the forecast shortages and excess of
particular categories of human resources.
• 6.1.2. Organizing: Once the human resource manager has established
objectives and developed plans and programs to reach them, he must design
and develop organisation structure to carry out the various operations. The
organisation structure basically includes the following:
• 6.1.2.1. Grouping of personnel activity logically into functions or positions;
• 6.1.2.2. Assignment of different functions to different individuals;
• 6.1.2.3. Delegation of authority according to the tasks assigned and
responsibilities involved;
• 6.1.2.4. Co-ordination of activities of different individuals.

• 6.1.3. Directing: The plans are to be pure into effect by people. But how
smoothly the plans are implemented depends on the motivation of people.
The direction function of the personnel involved encouraging people to
work willingly and effectively for the goals of the enterprise.
• In other words, the direction function is meant to guide and motivate the
people to accomplish the personnel programs. The personnel manager can
motivate the employees in an organisation through career planning, salary
administration, ensuring employee morale, developing cordial relationships
and provision of safety requirements and welfare of employees.
• The motivational function poses a great challenge for any manager. The
personnel manager must have the ability to identify the needs of
employees and the means and methods of satisfy those needs. Motivation
is a continuous process as new needs and expectations emerge among
employees when old ones are satisfied.

• 6.1.4. Controlling: Controlling is concerned with the
regulation of activities in accordance with the plans, which in
turn have been formulated on the basis of the objectives of the
organisation. Thus, controlling completes the cycle and leads
back to planning. It involves the observation and comparison of
results with the standards and correction of deviations that
may occur.
• Controlling helps the personnel manager to evaluate the
control the performance of the personnel department in terms
of various operative functions. It involves performance
appraisal, critical examination of personnel records and
statistics and personnel audit.

• 6.2. Operative Functions:
• The operative functions are those tasks or duties which are specifically
entrusted to the human resource or personnel department. These are
concerned with employment, development, compensation, integration and
maintenance of personnel of the organisation. The operative functions of
human resource or personnel department are discussed below:
• 6.2.1. Employment: The first operative function of the human resource of
personnel department is the employment of proper kind and number of
persons necessary to achieve the objectives of the organisation. This
involves recruitment, selection, placement, etc. of the personnel.
• Before these processes are performed, it is better to determine the
manpower requirements both in terms of number and quality of the
personnel. Recruitment and selection cover the sources of supply of labour
and the devices designed to select the right type of people for various jobs.
Induction and placement of personnel for their better performance also
come under the employment or procurement function.

• 6.2.2. Development: Training and development of personnel is a follow
up of the employment function. It is a duty of management to train each
employee property to develop technical skills for the job for which he
has been employed and also to develop him for the higher jobs in the
organisation. Proper development of personnel is necessary to increase
their skills in doing their jobs and in satisfying their growth need.
For this purpose, the personnel departments will device appropriate
training programs. There are several on- the-job and off-the-job methods
available for training purposes. A good training program should include a
mixture of both types of methods. It is important to point out that
personnel department arranges for training not only of new employees
but also of old employees to update their knowledge in the use of latest
techniques.

• 6.2.3. Compensation: This function is concerned with the
determination of adequate and equitable remuneration of the
employees in the organisation of their contribution to the
organisational goals. The personnel can be compensated both
in terms of monetary as well as non-monetary rewards.
Factors which must be borne in mind while fixing the
remuneration of personnel are their basic needs, requirements
of jobs, legal provisions regarding minimum wages, capacity of
the organisation to pay, wage level afforded by competitors
etc. For fixing the wage levels, the personnel department can
make use of certain techniques like job evaluation and
performance appraisal.

• 6.2.4. Maintenance (Working Conditions and
Welfare): Merely appointment and training of people is not
sufficient; they must be provided with good working,
conditions so that they may like their work and workplace and
maintain their efficiency. Working conditions certainly
influence the motivation and morale of the employees. These
include measures taken for health, safety, and comfort of the
workforce. The personnel department also provides for various
welfare services which relate to the physical and social well-
being of the employees. These may include provision of
cafeteria, rest rooms, counseling, group insurance, education
for children of employees, recreational facilities, etc.

• 6.2.5. Motivation: Employees work in the organisation for the
satisfaction of their needs. In many of the cases, it is found that they
do not contribute towards the organisational goals as much as they
can. This happens because employees are not adequately motivated.
The human resource manager helps the various departmental
managers to design a system of financial and non-financial rewards to
motivate the employees.
• 6.2.6. Personnel Records: The human resource or personnel
department maintains the records of the employees working in the
enterprise. It keeps full records of their training, achievements,
transfer, promotion, etc. It also preserves many other records relating
to the behaviour of personnel like absenteeism and labour turnover
and the personnel programs and policies of the organisation.

• 6.2.7. Industrial Relations: These days, the responsibility of
maintaining good industrial relations is mainly discharged by the human
resource manager. The human resource manager can help in collective
bargaining, joint consultation and settlement of disputes, if the need
arises. This is because of the fact that he is in possession of full
information relating to personnel and has the working knowledge of
various labour enactments.
The human resource manager can do a great deal in maintaining
industrial peace in the organisation as he is deeply associated with
various committees on discipline, labour welfare, safety, grievance, etc.
He helps in laying down the grievance procedure to redress the
grievances of the employees. He also gives authentic information to the
trade union leaders and conveys their views on various labour problems
to the top management.
human resource manager can help in collective bargaining, joint consultation and settlement of disputes, if the need ar
ipline, labour welfare, safety, grievance, etc. He helps in laying down the grievance procedure to redress the grievances

• 6.2.8. Separation: Since the first function of human resource
management is to procure the employees, it is logical that the last
should be the separation and return of that person to society. Most
people do not die on the job. The organisation is responsible for
meeting certain requirements of due process in separation, as well
as assuring that the returned person is in as good shape as possible.
The personnel manager has to ensure the release of retirement
benefits to the retiring personnel in time.
• 6.3. Advisory Functions:
• Human resource manager has specialised education and training in
managing human resources. He is an expert in his area and so can
give advice on matters relating to human resources of the
organisation. He offers his advice to:

• 6.3.1. Advised to Top Management: Personnel manager advises
the top management in formulation and evaluation of personnel
programs, policies and procedures. He also gives advice for achieving
and maintaining good human relations and high employee morale.
• 6.3.2. Advised to Departmental Heads: Personnel manager offers
advice to the heads of various departments on matters such as
manpower planning, job analysis and design, recruitment and
selection, placement, training, performance appraisal, etc.
• The functions are responsive to current staffing needs, but can be
proactive in reshaping organizational objectives. All the functions of
HRM are correlated with the core objectives of HRM (Table 1).

• For example- Personal objectives is sought to be realized through functions
like remuneration, assessment etc.
• HRM Objectives
• Supporting Functions
• Societal Objectives
• 1.Legal compliance2.Benefits3.Union Management relations
• Organizational Objectives
• 1.Human resource planning2.Employee relations3.Selection4.Training and
development5.Appraisal6.Placement7.Assessment
• Functional Objectives
• 1.Appraisal2.Placement3.Assessment
• Personal Objectives
• 1.Training2.Appraisal3.Placement4.Compensation5.Assessment

• 7. Summary
• Human Resource Management is the management function that helps the
managers to plan, recruit, select, train, develop, remunerate and maintain
members for an organization.
• Maintaining good human resources is the manager’s responsibility. Providing
human satisfaction from work output and relationship is a manager’s
obligation
• The scope of HRM is very large. All major activities in the working life of a
worker i.e. from the time of his or her entry until he or she leaves the
organisation comes under the purview of HRM.
• HRM has four objectives of societal, organizational, functional and personal
development.
• HR manager performs three functions within organizations like managerial,
operative and advisory functions

• Books and References
• • Aswathappa, K. Human Resource Management.
Tata McGraw-Hill.
• Dessler, Varkkey. Human Resource Management.
Pearson.
• www.aast.edu/…/pdf_retreive.php?url…
HRM12e_PPT…ppt..
• lib.vcomsats.edu.pk/library/MGT450/…/LECTURE
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