MBG24203T -

HUMAN RESOURCES
MANAGEMENT
Unit 1
Introduction to HRM, Evolution and Development of
the Field of HRM, Nature, scope and objectives of
HRM, Context and Concept of People Management
in a systems perspectives, Organization and
Functions of the HR and Personnel Management, HR
structure and Strategy, Role of Government and
Personnel Environment, Strategic Human Resource
Management, Ethical dilemmas in Human Resource
Management
Introduction to
HRM
Nature, scope and objectives of HRM
 HUMAN RESOURCE
MANAGEMENT
(HRM)
HRM defined as

“HRM is management function concerned with hiring , motivating and

maintaining people in an organization. It focuses on people in
organization” (Aswathappa, 2008, p.5)

HRM refers to acquisition, retention, motivation and maintenance of

Human Resources in an organization.

HRM is the planning, organising, directing & controlling of the

procurement, development, compensation integration, maintenance and
separation of human resources to the end that individual, organizational
and social objectives are accomplished.
 Nature of Human Resource
Management
1.HRM is based on certain principles and policies contribute to the
achievement of organisational objectives.
2.HRM is a pervasive function – Human resource management is not specific
to an individual department, rather it is a broader function and spread throughout
the organisation, it manages all type of people from lower level to top level
departments of the organisation.
3.HRM is people oriented – People or human resource is the core of all the
activities of human resource management. Human resource management works
with and for people. It brings people and organisation together to
achieve individual and organisational goals.
4.HRM is continuous activity – All factors of production are required to be
continuously updated and improved to cope up with the changes and increased
competition. Similarly, human resource also continuously trained, developed, or
replaced to face the next level of competition. Hence, it is a continuous activity.
Scope of Human Resource
Management
1. Personnel Aspect
Human Resource Planning – It is the process by which the organisation
identifies the number of jobs vacant (Quantity+Quality).
Job Analysis and Job Design – Job analysis is the systematic process
for gathering, documenting, and analysing data about the work required
for a job. Job analysis is the procedure for identifying those duties or
behaviour that define a job.
Recruitment and Selection – Recruitment is the process of preparing
advertisements on the basis of information collected from job analysis
and publishing it in newspaper or anywhere else. Selection is the process
of choosing the best candidate among the candidates applied for the job.
Orientation and Induction – Making the selected candidate informed
about the organization’s background, culture, values, and work ethics.
Training and Development – Training is provided to both new and
existing employees to improve their performance.
Performance Appraisal – Performance check is done of every
employee by Human Resource Management. Promotions, transfers,
incentives, and salary increments are decided on the basis of employee
performance appraisal.
Compensation Planning and Remuneration – It is the job of Human
Resource Management to plan compensation and remunerate.
Motivation – Human Resource Management tries to keep employees
motivated so that employees put their maximum efforts in work.
2.Welfare Aspect – Human
Resource Management have to
follow certain health and safety
regulations for the benefit of
employees. It deals with working
conditions, and amenities like -
canteens, crèches, rest and
lunch rooms, housing, transport,
medical assistance, education,
health and safety, recreation
facilities, etc.
3.Industrial Relation Aspect –
HRM works to maintain co-
ordinal relation with the union
members to avoid strikes or
lockouts to ensure smooth
functioning of the organisation.
It also covers - joint
consultation, collective
bargaining, grievance and
disciplinary procedures,
and dispute settlement.
Role of HRM/Managers
Strategist
Advisory Role
Developmental role
Maintenance role
Integrative role
Mediator role – problem solver
Counselor
Representative role – spokesperson
Change agent
Negotiation
QUALITIES
• Humanitarian
• Communication skills
• Problem solver
• Decision maker
• Ethical
• Leadership
• Excellent working knowledge
• Creativity
• Intuition
• Motivational
• Talent developer and promoter
• Team builder
 Importance of
HRM
• Human Resource Management is important to all managers despite their
various
functions because of the following reasons-
• Hire the right person for the job
• Low attrition rate
• Ensure people do their best
• Time saved in not conducting useless interviews
• Avoid legal action for any discrimination
• Safety laws are not ignored
• Equity towards employee in relation to salary etc.
• Effective training
• Avoid unfair labor practices
 Objectives of HRM
 Societal objectives
To be ethically & socially responsible to the needs of
the society while minimizing the negative impact of
such demands upon the organization
 Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
 Functional objectives
To maintain the department’s contribution at a level
appropriate to the organization’s needs
 Personal objectives
To assist employees in achieving their personal goals
in a manner that their personal goals enhance the
individual’s contribution to the organization
 Evolution and
Development of
the Field of HRM
 EVOLUTION
1. Managing Slaves
2. Managing Serfs
3. Managing Indentured Labour
4. Industrial Revolution Era
• 5. Trade Union Movement Era
• 6. Social Responsibility Era
• 7. Scientific Management Era
• 8. Human Relations Era
• 10. Behavioural Science Era
• 11. Systems and Contingency Approach Era and
• 12. Human Resource Management Era.
 Managing Slaves:

• Slaves comprised an important source of manpower in almost

all ancient civilisations. They could be sold and purchased like
commodities. Their main purchasers were the wealthy rulers,
landlords, tribal chiefs and effluent businessmen. The
purchasers of slaves had a rather complete control over their
slaves.
 Managing Serfs:

• Serfdom was widely prevalent in the feudal societies of the

pre-and early medieval era. Serfs were engaged by landlords
mainly in agricultural operations and allied activities. The
landlords would usually give them a piece of land for their
habitat and often, some land for their own cultivation. In
many cases, a paltry sum of money was advanced to them in
order that they could remain attached to their masters.
Managing Indentured Labour:
• The system of indentured labour emerged primarily with the
flourishing of mercantilism and advent of industrial
revolution. The discovery of new lands through sea and land
routes led to a substantial increase in the demand of
European goods abroad, and at the same time, gave a fillip to
the establishment of industries in the continent.
• Some of the notable features of management of indentured
labour comprised – strict supervision, ensuring compliance
with the orders of employer and supervisors, harsh
disciplinary action for misconduct, provision of some
amenities at the workplace, some inducements to increase
productivity and adopting steps to redress genuine grievances
of workers.
 Advent of Industrial
Revolution and its
Aftermath:
• The advent of industrial revolution proved a boon to the
mercantilists. The industrial revolution resulted in a rapid
growth of factories, large-scale production, improvement in
technology and reduction in time involved in producing
goods. The mercantilists increasingly became owners of
factories and other establishments.
The principles are:

(a) Harmony in group action

(b) Cooperation between management and

workers.

(c) Development of workers

(d) Replacing rule of thumb with science

Major conclusions of the contributions by
behaviorists' are as follows:

(j) People like work and they want to achieve their

objectives through motivation and with proper job
satisfaction,

(ii) Managers responsibility is to create a healthy

environment, so that all subordinates can contribute to
the best of their capacity.

(iii) Manager should provide self-direction by

subordinates and they must encourage to participate
fully in all matters.

(iv) Working satisfaction can be increased and

improved by full potential utilization in right direction.

Behavioral science era led to the development of two

way communication of employers in decision making,
management development story of the organization.
(i) It is a combination of various parts which can be known as
subsystems. Each part may have various subparts and it has same
features of a system.
(ii) System and subsystem are mutually related to each other and
if there is any kind of change, it affects the other depending upon
the relationship in between them.
(iii) A system has boundary which makes it different from other
system.
(iv) A system is not only the total parts and supports but the
arrangement of this as a whole plays an important role.
Human Resource Management Era:
• When the factory system was started in
production, large number of workers
started together. After observation
need was there that someone should
take care of recruiting, developing and
looking after the welfare of various
activities taking place.
• With the increase in the competition
for market share, competition for
resources including human talents and
increased knowledge in the field of
Human resource management.
Context and Concept of People
Management in a systems
perspectives

• A systems perspective considers the interdependence of various HR

functions within an organization.
• Aligns people, processes, and technology for organizational success.

• Key Components of HRM System

•Input: Recruitment, selection, training.

•Processes: Performance management, engagement, leadership.

•Output: Employee productivity, satisfaction, retention.

•Feedback Loop: Continuous evaluation and improvement.

 Organization and
Functions of the HR and
Personnel Management
HR structure and Strategy,
Strategic Human Resource
Management
Structure of HRM
Strategic HRM -Challenges

Challenges in People Management:

• Resistance to change.
• Balancing business goals with employee
expectations.
• Workforce diversity and inclusion.
• Adapting to technological advancements.
 Role of
Government in
Personnel
Environment
Role of Government in
Personnel Environment

• Policies, Regulations, and Workforce Development

• The government plays a vital role in shaping personnel
policies.
• Ensures fair employment practices, labor rights, and
workforce development.
• Impacts both public and private sector HR management.
Policy and Regulation Development

• Labor Laws: Minimum wage, working hours,

overtime rules.
• Employment Protection: Anti-discrimination laws,
equal opportunity policies.
• Occupational Safety: Workplace safety regulations
and compliance monitoring.
Public Sector HR
Management
• Merit-based Recruitment: Transparent hiring
processes.
• Civil Service Regulations: Defined career
progression and benefits.
• Employee Benefits: Pensions, job security, and
training programs.
Labor Market
Regulation
• Enforcement of Contracts: Prevents exploitation of
workers.
• Workplace Monitoring: Inspections and
compliance checks.
• Handling Labor Disputes: Mediation between
employees and employers.
Economic and Employment Policies

• Job Creation Programs: Government initiatives to

reduce unemployment.
• Unemployment Benefits: Financial assistance for
job seekers.
• Support for Entrepreneurship: Grants and subsidies
for startups.
Training and Workforce
Development

• Vocational Training Programs: Skill development

for different industries.
• Higher Education Support: Scholarships and
educational loans.
• Reskilling and Upskilling: Programs for evolving job
market needs.
Ethical dilemmas in
Human Resource
Management