1

HUMAN
RESOURCE
MANAGEMENT
(HRM)
3rd Semester B com
Calicut University

By
MUHAMMED ANEES K
Assistant Professor
Department of Commerce
BCM3C03 Human Resources Management

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Lecture Hours per week: 5, Credits: 4

Internal: 20, External: 80, Examination 2.5 Hours
Module I
Introduction to Human Resource Management—Importance--scope and
objectives of HRM. Evolution of the concept of HRM- Approaches to
HRM- Personal Management Vs Human Resource Management-HRM
and competitive advantage- Traditional Vs Strategic Human Resource
Management - E-HRM - Operational E-HRM - Relational E-HRM -
Transformational E-HRM.
(20 Hours, 20 marks)
Module II
Human resource planning, Recruitment and selection—Job analysis---
process of job analysis job discretion- job specification-- methods of job
analysis-- Conventional Vs strategic planning—job evaluation—
Recruitment--source of recruitment-methods.
(18 Hours, 18 marks)
Module III
Placement, Induction and Internal mobility of human resource. Training
of employees—need for training-objectives- approaches --methods-
training environment- areas of training- Training evaluation.
(12 Hours, 12 marks)
Module IV
Performance appraisal and career planning. Need and importance-
objectives process-methods and problems of performance appraisal-
Concept of career planning –features - methods –uses career
development
(12 hours, 15 marks)
Module V
Compensation management and grievance redressal. Compensation
planning objectives- Wage systems- factors influencing wage system-.
Grievance redressal procedure- discipline - approaches punishment-
essentials of a good discipline system. Labour participation in
management.
(18 Hours, 15 marks)

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Module I
Introduction to
Human Resource
Management

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Introduction to Human Resource Management

The term human resource means, the people at work or employees of
an organisation. Human resources are the aggregate of knowledge,
skills, abilities, talents and aptitudes of employees of an organisation.
HRM may be defined as the process of planning, acquiring, developing
and utilizing human resources that are required for an organisation.
Definition
According to Edwin B Flippo, HRM is the planning, organising,
directing and controlling of the procurement, development,
compensation, integration, maintenance and reproduction of human
resource to the end that individual, organisational and societal
objectives are established.
Features of HRM
 Management function – HRM involves the application of
management functions and principles.
 Comprehensive function – because it is related with managing
people at work
 Individual consideration – every employee is considered as
individual
 Action oriented
 Continuous function
 Pervasive in nature – it touches people at all levels of organisation
 Human capital or human asset
 Achievement pf objective
Scope of HRM
1. Human resource planning
A well-defined plan is an essential element of HRM. It is concerned
with the determination of the number of personnel required in an
organisation. Right person should be appointed at right job at right
time.

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2. Job analysis and Design

Job analysis is detailed and systematic study of jobs. It is the study
of qualitative aspects of human resource requirement.
Job design is the duties and responsibilities regarding the job.
3. Recruitment and selection
Recruitment is a systematic process of searching the required
qualified personnel and stimulate them to apply for jobs in the
establishment.
Selection is the process of choosing the most suitable persons out
of all applicants.
4. Orientation and Placement
Orientation is given to newly selected employees relating to its
rules and regulation, his superiors and subordinates
5. Training and Development
Proper training should be given to employees to acquire new
knowledge and skill.
6. Performance appraisal and Job evaluation
Performance appraisal is the process of assessing the performance
and progress of an employee on a given job. In job evaluation, the
relative worth of job is determined.
7. Employee and executive remuneration
To design and implement a suitable wage and salary structure for
the benefit of employees.
8. Motivation
Motivation encourages employees to give their best performance
and help in achieving enterprise goals.
9. Communication
Communication helps in managing and coordinating the
employees of an organisation more effectively.

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10. Human welfare

Labour welfare aims at providing service facilities and amenities
which enables a worker to perform their work in healthy
atmosphere.
11. Health and Safety
Sufficient measures should be taken to protect workers against
industrial accidents
12. Industrial Relation
The management should give due consideration for maintaining a
harmonious relationship between management and employees.
Importance of HRM
1. Importance concerned with individual organisation
HRM can help an organisation to achieve its objectives more
efficiently and effectively in the following;
 Procurement of required employees through recruitment,
selection, placement, training compensation and promotion
policies
 Secures cooperation of all employees in the organisation for
achieving goals through motivation, participation, social
security etc.
 Proper utilization of human resource
 Ensures a future team of efficient and competent workers
2. Professional Importance
Professional competency among employees can be achieved
through the following ways;
 HRM provides maximum opportunities to employees for their
personal development.
 Providing healthy relationship among employees.
 Proper allocation of work among employees

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 Providing training facilities for the individual development of

employees.
3. Social Importance
 HRM enhance the dignity of labour
 Provide suitable job to suitable person and it will help to satisfy
the psychological and social satisfaction of employees
 Helps to provide reasonable compensation to employees.
 Helps to maintain a balance between job and job seekers in
terms of numbers, qualifications, aptitude etc.
 Ensures physical and mental health and safety measures.
4. National Importance
Effective management of human resources will speed up the
economic growth of a nation. This in turn leads to better standard
of living and more job opportunities
Objectives of HRM
I. General Objectives
1. Optimum individual development
The top management is required to create an atmosphere to help
personnel for developing their personality
2. Creation of good human relationship
Create and maintain a good relationship between the
management and workers.
3. Moulding of human resources
Labour is the important factor that makes the other factors to
work. So, moulding of labour is essential to utilise other factors
of production effectively.
II. Specific Objective
1. Selection of right type of individual for the right job
2. Provision for training facilities

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Proper training should be given to employees to make them

competent to handle new methods, machine etc.
3. Provision of orientation to new employees
Provide information relate with rules, procedures and
regulations of the enterprise
4. Provision of better working condition and facilities
Facilities like recreation, good atmosphere etc. must provided to
them. The workplace should be neat and clean.
5. Provision for fair wages, good salary administration and other
incentives
6. Provision for retirement benefit
Compensation and other retirement benefit certainly create
good impression about management among workers.
7. Maintain good relation with trade union
8. Mental satisfaction of employees
Functions of HRM
It can be classified into two categories;
1. Managerial Functions
2. Operative Functions
I. Managerial Functions
1. Planning
 It is concerned with determination strategies, Programmes,
policies and procedures to be adopted in order to accomplish
organisational objectives.
 It involves the selection of best course of action from a
number of alternatives
 It includes;
 Determination of human resource needs
 Deciding the source of procurement of human resources
 Determination of training needs of personnel

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 Selecting appropriate motivation technique

2. Organising
 It is the process of allocating tasks among its members
 It specifies how the duties are to be divided among the
different department and the employees
 The assignment of duties and fixing the responsibilities will
be the main issue of HRM
3. Directing
 It is concerned with instructing, guiding and inspiring people
in the organisation to achieve its objectives.
 It includes supervision, motivation, leadership and
communication
4. Coordinating
 HRM department coordinate the task of developing,
interpreting and reviewing personnel programs and policies
related to employees.
5. Controlling
 It is a process which verifies whether everything occurs in the
organisation according to plan
 It involves the observation, comparison and evaluation of the
workers performance with predetermined standard
 If variations are found corrective measures are taken
immediately
II. Operative Functions
1. Procurement
Right person should be appointed at the right place at right time.
So this function is related with procurement of sufficient number
of competent person for performing business task.
2. Training and Development

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It is concerned with the development of employees by increasing

their skill and proficiency in work. Proper training should be given
to employees for increasing their skill and abilities.
Various methods are used for giving training to employees like
lectures, discussion, demonstration etc.
3. Compensation
HRM must determine the remuneration of workers in the
organisation. Workers are remunerated by monetary and non-
monetary.
4. Integration
The human resource manager should reconcile the interest of
workers with that of the organisation.
5. Maintenance
Managers should provide safety measures, sanitation, canteen,
recreation room etc.
6. Welfare activities
It includes medical facilities, restaurants, and other recreation
facilities, cafeteria, rest room, counselling, group insurance etc.
7. Personal records
Keep records relating to employees training, development,
achievement, transfer, promotion, labour turnover, absenteeism
etc. of labour force.
8. Promotion, Transfer and Termination
Personnel department should assist the management to design
suitable promotion policy regarding transfers and termination.
9. Negotiation with trade union
Management has to conduct negotiation with labour unions and
with other employee representatives on matter of common interest

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Approaches to HRM
1. System Approach
Organisation is a system and it consist of different subsystems
which are dependent and related. HRM can be considered as the
central subsystem of an organisation. This central subsystem is
connected with other subsystem of the organisation through
communication network.

Finance
Subsystem

Purchase Subsystem HRM Subsystem

Production
Subsystem

Marketing
Subsystem

As a central subsystem, HRM interacts closely and continuously

with all other subsystems.
2. Classical Approach (Michigan Model)
This model is just like McGregor Theory X and Theory Y. Harvard
and Michigan had already established two theories, theory X and
theory Y, which explain two opposing styles in HRM.
The first one, Theory X, classically views the employees as lazy and
working only for their own interest.
Theory X is more focused on the company’s nature and goals
neglecting entirely the nature of its employees and generally
labelling them as lazy.
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The approach tends to regard employees as machinery with the

task of keeping them in order and in proper condition falling into
the hands of management.
The Michigan Model is also known as the Matching Model or best-
fit-approach to HRM. It is known as Hard HRM.
3. Harvard Approach
Theory Y is the total opposite of theory X. it perceives employees
actual humans that are capable of emotions and feelings, and in
need of proper motivation.
This approach does not view people as inherently lazy. It views
them as self-responsible individuals who can be creative and
proactive, and with the help of the management’s encouragement
and persuasion, capable of furthering the organisation’s goals.
This is the Harvard Model which is known as soft HRM.
PERSONAL MANAGEMENT
 It is related with the management of manpower. The important
task of personnel management is to help every employee to grow
himself to the maximum.
 It is primarily concerned with the management of personnel at
work and their interpersonal relations.
 According to French Wendell “personal management is the
recruitment, selection, development, utilization of an
accommodation to human resources by an organisation.
 Personnel management is that branch of management, which is
concerned with recruitment, selection, placement, development,
motivation and maintenance of workers.
Characteristics of Personnel Management
4. Management of human resources
5. Concerned with employees
6. Continuous nature

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7. Formulation of personnel policies

8. Goal oriented
9. Creation of good atmosphere
10. Ensures social, economic and individual satisfaction
Difference between HRM and Personal Management
HRM Personal Management
It gives emphasis not only It is a management activity, which
employee development but also is largely aim at non-managers.
development of management
team.
HRM treats people as an asset to Personal management treats
be used for the benefit of an labour as a tool, which is
organisation. expendable and replaceable.
Job categories and grades are few. Job categories and grades are
many.
Speed of decision-making is high. Speed of decision-making is low.
It aims at policies that promote It aims at the interest of
mutual goals, mutual respect, organisation and it is treated as
mutual rewards and mutual the sole aim.
responsibilities.
It is resource oriented It is employee oriented
It is concerned with employee It is concerned with administrative
development, skills, talents and work, enforcing discipline, salary
retention of best talents. administration etc.

Similarities between Personal Management and HRM

 Both models emphasis the importance of integrating
personal/HRM practices with organisational goals.
 Both models are vested with management

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 Both give emphasis on appointing right person at right position

at right time.
 Both gives importance to individuals, their development,
remuneration and motivation.
Strategic HRM (SHRM)
 SHRM is a branch of HRM. It is the process of linking the human
resource function with the strategic objectives of the organisation
in order to improve performance.
 It is a process that involves development of human resource
strategies like strategic HR planning, training and development,
performance evaluation, compensation management etc. and
integrating these strategies with the overall corporate strategies.
 It is the top management function of setting strategies of an
organisation, which include stating its vision, mission, objectives,
plans, policies and programs.
HRM and Competitive advantage
Employees of the organisation offers competitive advantage to the
organisation. An organisation achieves advantage when it is able to offer
goods and services at a price with required quality compared with other
organisation, which are not able to do so. Competitive advantage can be
achieved by better utilization of human resources.
Competitive advantage enables the firm to create superior value for its
customers and superior profits for itself.
Competitive advantage is the utilization of employee capabilities to
create value for customers in way that rival firms cannot.

E-HRM
E-HRM is the integration of all HR systems and activities using the web
based technologies. Simply, when HR uses the Internet or related
technologies to support their activities, procedures, processes, then it
becomes an e-HRM.

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E-HRM has been defined as “a way of implementing HR strategies,

policies and practices in organizations through a conscious and directed
support of and/or with the full use of web-technology-based channels”
or more recently, and more broadly, as “the planning, implementation,
and application of information systems for both networking and
supporting actors in their shared performing of HR activities”.
Types of e-HRM

1. Operational e-HRM
It is concerned with the operational functions of HR such as
payroll, employee personal data, etc. (Operational E-HRM is
concerned with administrative functions)
2. Relational e-HRM
It is concerned with the supporting business processes Viz.
Training, recruitment, selection, etc.
3. Transformational e-HRM
It is concerned with the HR strategies and its activities such as
knowledge management, strategic orientation.

E-HRM Activities
 E-Recruitment
 E-Selection
 E-Performance Management
 E-Learning
 E-Compensation

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Advantages of E-HRM
 It helps to improve quality services
 It helps to ensure efficient services at an incredible speed
 It helps the reduction of costly time and labour
 It helps to improve accuracy and reducing human bias
 Benefiting everyone through standardisation and automation
Disadvantages of E-HRM
 It involves a high cost to maintain and implement E-HRM
 It is difficult to maintain the confidentiality of the input data
 Electronic media are vulnerable, which may be attacked by viruses
from anywhere on the internet
 Organisation need to invest more on training and development
before adopting e-HRM
 Computers and their associated programs are only as effective as
their human users, data entry errors can and do occur.

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