Unit 1- Introduction

• Importance for HRM

• Evolution of HRM
• Difference between Personnel
Management and HRM
• Role of HR manager
• Duties and responsibilities of HR
manager
 HRM: Basics and definition
• An organization is made up of 4 resources Men –Living, Material, Money
and Machinery. It is the human that makes use of non -human resources.
Definitions: “The field of management which has to do with planning,
organizing, directing, and controlling the functions of procuring, developing,
maintaining and utilizing a labor force” [procure, develop and maintain].
“Process of making the efficient and effective use of Human Resources so
that the set goals are achieved”.
“Personnel management or say HRM is the planning, organizing, directing or
controlling of the procurement, development, compensation, integration,
maintenance & separation of HR to the end that individual, organizational &
social objectives are achieved.” - Flippo
“From the national point of view, HR‟s are Knowledge, skills, creative abilities,
talents and attitude obtained in the population”. -Leon C. Megginson
Nature of HRM
• Pervasive force
• Action oriented
• Individually oriented
• People oriented
• Development oriented
• Integrating mechanism
• Comprehensive function
• Auxiliary service
• Continuous function
Scop
e of
HRM
Evolution of the Personnel Function:
• The Commodity concept: Labour as commodity to be bought and
sold. Wages based on demand and supply. Government did very little
to protect workers
• The Factor of Production concept: Labour any other factor of
production, Workers are like machine tools.
• The Goodwill concept: Welfare measures like safety, first aid, lunch
room, rest room will have a positive impact on workers‟ productivity
• The Paternalistic concept/ Paternalism: Management must assume a
fatherly and protective attitude towards employees. Paternalism does
not mean merely providing benefits but it means satisfying various
needs of the employees as parents meet the requirements of the
children.
• The Humanitarian concept: To improve productivity, physical, social
and psychological needs of workers must be met. As Mayo and others
stated, money is less a factor in determining output, than group
standards, group incentives and security. The organization is a social
system that has both economic and social dimensions.
• The Human Resource concept: Employees are the most valuable assets
of an organization. There should be a conscious effort to realize
organizational goals by satisfying needs and aspirations of employees.
• The Emerging concept: Employees should be accepted as partners in
the progress of a company. They should have a feeling that the
organization is their own. To this end, managers must offer better
quality of working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource Development.
Importance and Role of HRM
• L. F. Urwick had remarked that “Business houses are made or broken in the
long run not by markets or capital, patents or equipments, but by men.”
• Peter F. Drucker says “Men, of all the resources available to man, can grow
and develop.”
• Now a days HR is considered as Human Capital, which can be classified into
3 categories:
1. Intellectual Capital: specialized knowledge, tacit knowledge and skills,
cognitive complexity, and learning capacity.
2. Social Capital: Social capital -network of relationships, sociability and
trustworthiness.
3. Emotional Capital: Self confidence, ambition & courage, risk bearing
ability & resilience
Importance of HRM:
• Attract and retain talent
• Train people for challenging roles
• Develop skills and competencies
• Promote team spirit
• Develop loyalty and commitment
• Increase productivity and profits
• Improve job satisfaction
• Enhance standard of living
Objectives of the HRM Functions:
• To help the organization reach its goals
• To employ the skills and abilities of the workforce efficiently  To
provide the organization with well-trained and well-motivated
employees
• To increase to the fullest the employees job satisfaction and self-
actualization
• To develop and maintain a quality of work life
• To communicate HR policies to all employees
• To be ethically and socially responsive to the needs of society
 HRM objectives and supporting functions:
1) Societal Objectives: seek to ensure that the organization becomes socially
responsible to the needs and challenges of the society while minimizing the
negative impact of such demands upon the organization.
2) Organizational Objectives: it recognizes the role of HRM in bringing about
organizational effectiveness. It makes sure that HRM is not a standalone
department, but rather a means to assist the organization with its primary
objectives.
3) Functional Objectives: is to maintain the department’s contribution at a level
appropriate to the organization’s needs. Human resources are to be adjusted
to suit the organization’s demands.
4) Personnel Objectives: it is to assist employees in achieving their personal
goals, at least as far as these goals enhance the individual’s contribution to the
organization. Personal objectives of employees must be met if they are to be
maintained, retained and motivated.
Functions of HRM:
• A) Managerial Functions
• Planning: Pre-determined course of action.
• Organizing: Means to an end
• Staffing: Recruitment & Selection
• Directing: Execution of the plan
• Controlling: Performance evaluation
• B) Operative Functions
Holistic View:
Acquiring
Developing
Motivating
Retaining
Functional View
Recruitment and Selection
Induction
Job Assignment
Training
Performance Management
Engagement
Welfare
New Approaches to Organizing HR
• Transactional-Call centers
• Outsourcing
• Corporate company's strategic plan
• Embedded HR -Localized HR assistance
• Centers of Expertise-Organizational Change.
Duties and responsibilities of HR manager:
Qualities of HR Manager:
• Fairness and firmness
• Tact and resourcefulness
• Sympathy and consideration
• Knowledge of labor and other terms
• Broad social outlook
• Others and Academic qualifications
Emerging role of HR Manager:
• A line function-within his department
• A coordinating function -line managers implementing firm’s policies etc
• Staff function-Assisting and advising the line managers.
Roles are typically identified for HR.
3 types of Roles:
Role of HR Manager
• The Conscience Role: The conscience role is that of a role of moral teacher or guru who
reminds the management of its morals and obligations which they have towards their
employees.
• The Counsellor : HR manager act as a counsellor for the employees who are not satisfied
with the present job approach, beside that employees are facing various other problems.
Also the HR Manager counsels and consults the employees and offers suggestions to
solve/overcome the problems.
• The Mediator: As a mediator, the HR manager plays the role of a peace-maker and settles
the disputes between employees and the management.
• The Spokesman: HR manager act as a spokesman for or representative of the company as
well as for the employees.
• The Problem-solver: He also acts as a problem solver and solves the issues related to the
human resources management and overall long range organizational planning.
• The Change Agent: He acts as a change agent and brings changes in various existing
programmes so as to keep the organisation and employees update as according to the
current scenario.
Case Study 1:
• Take a case of any sector and list the characteristics and the role of HR
manager in that sector.
Example:
• Hospitality Industry
• Manufacturing Industry
• IT company
Traditional Vs Emerging HR
Functions
Challenges for HRM:
• Growing global competition
• Rapidly expanding technologies
• Increased demand for individual, team, and organizational competencies
• Faster cycle times
• Increasing legal and compliance scrutiny
• Higher customer expectations
• Cultural Diversity
• Employee Engagement, Talent Retention etc.,
• knowledge-based workforce
HRM’s Place in Management Today
• Today’s HRM is proactive, integral part of management and strategic
in approach. It ascertains specific organizational needs for the use of
its competence. Educate management and employees about the
availability and use of HRM services. HRM strategic plans must build
on the firm's strengths.
Difference between Personnel Management
and HRM
• The main difference between Personnel Management and Human
Resource Management lies in their scope and orientation. While the
scope of personnel management is limited and has an inverted
approach, wherein workers are viewed as tool. Here the behavior of
the worker can be manipulated as per the core competencies of the
organization and are replaced when they are worn-out.
• On the other hand, human resource management has a wider scope
and considers employees as the asset to the organization. It promotes
mutuality in terms of goals, responsibility, reward etc. that will help in
enhancing the economic performance and high level of human
resource development.
Case Study 2:
• Role of IT in HRM
Case Study 3:
• Explore more on Hybrid work culture
Case study 4
• Explore the topic people analytics
Case study 5
• Explore and name 5 job portals
Self Study articles:
• Challenges of HRM