Concept of Human Resource Management

Concept Of HRM-
“HRM” is art of Managing people at work in
such a way that they give their best for the
organization for achieving the goal.”

“HRM is the planning ,organizing, directing
& controlling of the procurement,
development, compensation, integration,
maintenance & separation of human
resource to the end that individual ,
organizational and social objectives are
accomplished. “
Proff.Rahul Manajre

Evolution Of HRM:-
Commodity Approach:- Worker is treated as commodity.
The factor of production concept:- Labour is like any other
factor of production e.g. money, material, machine
Welfare Approach :- welfare approach like safety ,lunch, rest
room etc.
Protective Concept :- Mgmt. must assume protective attitude
towards employee it means satisfying various needs of
employees.
The Humatarion concept:- To improve productivity social
and psychological needs of workers must be satisfied.
Human Resource Concept:- Employees are most valuable
assets of organization.
Emerging concept:- Employee should accept as a partner in
organizations progress.

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Scope of HRM:-
Scope of HRM is indeed very Vast & wide it includes all
activities starting form man power planning

 Personal aspects:- This is concern with the manpower
planning, recruitment, selection, placement, etc
 Welfare aspects:- working conditions & amenities such
canteen, rest & lunch, education, health & safety etc.
 Industrial aspects:- This covers Union Mgmt., Collective
bargaining etc.
AND OTHERS ARE
 Control:-HR Audit, HR Accounting, HRIS
 Acquisition:-HR Planning, Recruitment, Selection etc.
 Maintenance:- Remuneration, Motivation, Health & Safety etc.
 Development:- Training & development, Career Planning, OD
etc.
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Objective Of HRM
 Primary Objective:- To provide competent & motivated
workforce to the organization.
 Social Objective:- HRM being ethically & socially
responsible for the needs and challenges of society.
 Organizational Objective:- To establish and maintain
sound organizational structure and desirable working
relationship between employees.
 Functional Objective:- To attain & effective utilization of
human resource in the achievement of organizational
goal & providing training & development program.
 Personal Objective:- To identify & satisfy individual &
group needs.
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HR PROCESS

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HR PROCESS
1.Recruitment & Selection

2.Placement & Induction

3.Training & Development

4.Performance Management

5.Compensation Management

6.Maintenance Proff.Rahul Manajre

Role of HR
 Administrative Role
 Operational Role
 Strategic Role

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Administrative Role
 Policy Maker:- Formation of policies e.g. recruitment,
training & development, performance appraisal,
compensation etc.
 Administrative Expert:-Record keeping e.g. Personal
files, company documents etc.
 Advisor:- Maintaining employee relations, training &
development, selection etc.
 Counselor:- Career planning, personal help etc.
 Welfare Officer:- Canteen, hospital, education etc.

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Operational Role

 Recruiter
 Trainer
 Co-ordinator
 Mediator

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Strategic Role

 Strategy Formulation
 Strategy Selection
 Strategy Implementation

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HR should define an organization architecture i.e. it
should identify the underlying model of the company’s
way of doing business

HR needs to be accountable for conducting an
organizational audit.

Hr as a strategic partner is to identify methods for
renovating the parts of organizational structure.

HR must take stock of its own work and set clear
priorities.

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Business Strategies
 Corporate level strategy

 SBU level strategy

 Functional level strategy

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Business Strategies
 Stability strategy:-
i. Maintenance of status que
ii. Sustainable growth
 Growth strategy:-
i. Mergers
ii. Takeover
iii. Joint Ventures
 Retrenchment strategy:-
i. Turn Around
ii. Liquidation
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Linking Business strategy and HR strategy

 In many companies HR manager is
responsible for strategic mgmt. process.
A. Employment
B. Development
C. Compensation
D. Industrial Relation
E. Organizational Culture

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TQM And HRM

TQM:-TQM is a continuous process of improvement for
individuals, group of people and the total organization.

Principles of TQM:-
a. Delight the customer
b. Management by fact
c. People based management
d. TQM is continuous process

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Following forces shape the HRM towards
TQM
 Economic liberalization announced by government
of INDOA in 1991
 Opening Indian economy for the rest of world
 Focusing on private sector to restructuring and
developing Indian economy
 Successful organizations proactively and
systematically understand and respond to current
and future customer needs
 The IT revolution is replacing the core competencies

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HR Strategy to TQM
 The HR plans can be four types

a. Strategic-high profile i.e. Change agent

b. Strategic-low profile i.e. Hidden persuader

c. Operation-high profile i.e. Internal contractor

d. Operation-low profile i.e. Facilitator

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HR Policies
 TheHR policy manual is a companion
volume to the employee handbook.

 HRpolicy helps organization to maintain
good work culture within the organization

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HR policies mainly focus on :-
 Recruitment, selection & placement
 Training & manpower development
 Performance Mgmt.
 Termination of employee
 Compensation
 Transfer & Promotion
 Complaints & Grievance procedure
 Employee benefits
 Conducts , Discipline & apple rule
 Employee health & Safety
 Internal Communication
 Other Personnel policies and procedure
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HR Audit
 HR Audit means the systematic verification of
job analysis and design, recruitment and
selection, orientation and placement, training
and development, performance appraisal and
job evaluation, employee and executive
remuneration, motivation and morale,
participative management, communication,
welfare and social security, safety and health,
industrial relations, trade unionism, and disputes
and their resolution.
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Scope of Audit
 Audit of all the HR function.

 Audit of managerial compliance of personnel
policies, procedures and legal provisions.

 Audit of corporate strategy regarding HR planning,
staffing, IRs, remuneration and other HR activities.

 Audit of the HR climate on employee motivation,
morale and job satisfaction.
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Benefits of HR Audit
 It helps to find out the proper contribution of the HR
department towards the organization.
 Development of the professional image of the HR
department of the organization.
 Reduce the HR cost.
 Motivation of the HR personnel.
 Find out the problems and solve them smoothly.
 Provides timely legal requirement.
 Sound Performance Appraisal Systems.
 Systematic job analysis.
 Smooth adoption of the changing mindset.

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HUMAN RESOURCE
ACCOUNTING
 HRA is an attempt to identify and record investment
made in the human resources.

 Its an information system reporting the cost and value
of the human factor to the organization

 According to Woodruff Jr., VP of R.G. Barry
Corporation U.S.A, “HRA is an attempt to identify
and report investment made in human resources of
an organization that are not accounted for under
conventional accounting practice. Its an information
system that tells the management what changes over
time are occurring to the human resources of the
business”.
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Characteristics Of HRA
 Itsa system of accounting in which
identification of human resources is made.
 Investment made in human resources is
recorded.
 Measurement of costs and values are made.
 Changes occurring in human resources over
a period of time are also recorded.
 Communicates information through financial
statements to interested parties

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 Helps the management to gain knowledge of
the various aspects of employees which is
necessary to take vital decisions for the
progress of the organization.

 HRA is a part of MIS.

 Joint efforts of behavioral scientists,
accountants and managements are needed
for the working and development of HRA.

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Objectives Of HRA
 Proper management of human resources
 Improvement of human resources.
 Depicting the true value of the organization.
 Provides quantitative information on human
resources which helps the managers and
investors in making decisions.
 HRA communicates the worth of human
resources to the organization and to the
public.

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Methods/Models Of HRA
 Historical Cost Method:
Actual cost incurred for recruiting, hiring, training
and developing the human resources of the
organization are capitalized and amortized over the
expected useful life of the human resources.
 Replacement Cost Method:
This is the measure of the cost to replace a firm’s
existing human resources. This method has the
advantages of adjusting the human value of price
trends in the economy
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 Opportunity Cost Method:
In this method, the human resource of an
organization has to be valued on the basis of the
economist’s concept of opportunity cost which is
value of benefit foregone by putting it to present use.

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Work-Life Balance
Policies
 Part-time employment
 Job Share
 Annualised salary
 Flexi-time
 Contract Employment
 Planned Career Breaks
 Voluntary-reduced working time
 Occasional working at home

Proff.Rahul Manajre

Concept of Human Resource Management

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