Hrm unit 1

Human
Resource
Management
Radhika Vandna Gohel
Faculty of Commerce & Management
JHBWC

• Human: refer to the skilled workforce in the organization.
• Resource: refer to limited availability or scarce.
• Management: refer to maximize or proper utilization and
make best use of limited and a scarce resource.

Introduction
• Behind the production of every product or service there is
human mind, effort and man hours (working hours) no product
or service can be produced without help of human being.
Human being is the fundamental resource for making or
constructing anything. Today many experts claim that machines
and technology are replacing human resource and minimizing
their role or effort. But even machines and technology have
been build by the human aid and besides companies have been
continuously in search for talented, skilled and qualified
professionals to further develop latest machines and technology,
which again have to be controlled or used by
humans to bring out products

Meaning of HRM
Human Resource Management (HRM) is the term used to
describe formal systems devised for the management of people
within an organization. The responsibilities of a human resource
manager fall into three major areas: staffing, employee
compensation and benefits, and defining/designing work.

Concept
• HRM may be defined as set of policies, practices and programs
designed to maximize both the personal and organizational
goals.
• Acc. To Edwin, HRM is “the planning , organizing, directing
and controlling of the procurement, development, compensation,
integration, maintenance and reproduction of human resources
to the end that individual, organizational and societal objectives
are accomplished.

Nature of HRM
1. Comprehensive Function
2. People-oriented
3. Action oriented
4. Individual oriented
5. Development oriented
6. Pervasive function
7. Continuous function
8. Future oriented
9. Challenging Function
9. Science as well as art
10. Staff function
11. Young discipline
12. Interdisciplinary
13. Nervous system

Functions of HRM
Functions are of two types (1) managerial functions (2)
operating function
1. Procurement Function
- Job analysis
- Human resource planning
- Recruitment
- Selection
- Placement
- Induction or orientation

Cont.
2. Development Function
- Performance & Potential Appraisal
- Training
- Executive Development
- Career Planning and Development
3. Compensation Function
- Job evaluation
- Wage & salary Administration
- Bonus
- 4. Integration Function
- 5. Maintenance Function

HRM & Personnel
Management
• Many management students and layman, think that the two
terms are synonymous but, the fact is that the modern HRM has
completely replaced PM. So, in this article, we are going to
throw light on the meaning and differences between Personnel
Management and Human Resource Management.

Cont.
• Definition of Personnel Management:
Personnel Management is a part of management that deals with the
recruitment, hiring, staffing, development and compensation of the workforce
and their relation with the organization to achieve the organizational
objectives. The primary functions of the personnel management are
divided into two categories:
1. Operative Functions: The activities that are concerned with procurement,
development, compensation, job evaluation, employee welfare,
utilization, maintenance and collective bargaining.

Cont.
2. Managerial Function: Planning, Organizing, Directing,
Motivation, Control and Coordination are the basic managerial
activities performed by Personnel Management.
• From the last two decades, as the development of technology
has taken place and the humans are replaced by machines.
Similarly, this branch of management has also been outdated by
Human Resource Management.

Key Differences Between Personnel
Management and Human Resource
Management
1. The part of management that deals with the work force within
the enterprise is known as Personnel Management. The branch
of management, which focuses on the best possible use of the
enterprise’s man power is known as Human Resource
Management.
2. Personnel Management treats workers as tools or machines
whereas Human Resource Management treats it as an important
asset of the organization.
3. Human Resource Management is the advanced version of
Personnel Management.
4. 4. Decision Making is slow in Personnel
Management, but the same is comparatively fast in
HumanResource Management.

Cont.
5. In Personnel Management there is a piecemeal distribution of
initiatives. However, integrated distribution of initiatives is
there in Human Resource Management.
6. In Personnel Management, the basis of job design is the division
of work while, in the case of Human Resource Management,
employees are divided into groups or teams for performing any
task.
7. In PM, the negotiations are based on collective bargaining with
the union leader. Conversely, in HRM, there is no need for
collective bargaining as individual contracts exists with each
employee.
1. 8. In PM, the pay is based on job evaluation. Unlike
HRM, where the basis of pay is performance
evaluation.

Significance of Human
Resource Management
1. Significance for an enterprise
– Attracting and retaining the required talent through effective human
resource planning, recruitment, selection, placement , orientation
compensation and promotion policies.
– Developing the necessary skills and right attitudes among the employees
through training, development, performance appraisal etc.
– Securing willing cooperation of employees through motivation ,
participation., grievance handling etc.
– Utilizing effectively the available human resources.
– Ensuring that the enterprise will have in future a team of competen and
dedicated emplyees.

Cont.
2. Professional significance:
Effective management of HR helps to improve the quality of
work life. It permits team work among employees by providing
a healthy working environment. It contributes to professional
growth in following ways:
– Providing maximum opportunities
– Maintaining healthy relationship
– Allocating work properly

Cont.
3. Social significance:
Sound HRM has great significance for the society. It helps to
enhance the dignity of labor in the following way.
– Providing suitable employment
– Balance between jobs available and jobseekers
– Conservation of physical and mental health by eliminating waste of human
resources.

Cont.
4. National significance:
HR plays a vital role in development of nation.
For effective utilization of a nation’s natural, physical and
financial resources require an efficient and commited man
power.
the level of development in a country depends primarirly on the
skills, attitudes and values of its HR.
effective management of HR helps to speed up the process of
economic growth which in turn leads to higher standards of
living and fuller employment.

HR Policies
Training &
Development
Job analysis and
design
Performance
Management
&
Compensatio
n
Labor &
Employee
Relations
Recruitment
& selection

Concept of SHRM
• Before we try to explain the meaning of strategic HRM, let
us first define the terms ‘strategy’ and ‘strategic
management’. The term ‘strategy’ is widely used in and
presupposes importance. In the words of the Oxford
Concise Dictionary, strategy means ‘generalship’. Thus,
strategy is associated with the long-term decisions taken at
the top of the enterprise. The original literary meaning of
strategy is ‘the art and science of directing military forces’.

Cont.
• The success of an organisation depends on the people
therein. This means how they are acquired, developed,
motivated and retained in the organisation play an
important role in the organisational success. Then this
presupposes an integral approach toward human resource
functions and overall business functions of an organisation.
Thus, strategic HRM means a strategic look at HR
functions in line with the business functions of an
organisation.

Cont.
• Strategic HRM, therefore, is concerned with the following:
• 1. Analyse the opportunities and threats existing in the
external environment.
• 2. Formulate strategies that will match the organisation’s
(internal) strengths and weaknesses with environmental
(external) threats and opportunities. In other words, make
a SWOT analysis of organisation.
• 3. Implement the strategies so formulated.
• 4. Evaluate and control activities to ensure that
organisation’s objectives are duly achieved.

Human Resource Inventory
• Human Resource Inventory, also known as the skills
inventory comprehensively lists down the basic information
on all the employees, like their education, experience, skills,
age, sex, salary related data, job preference and special
achievements. It is a vital tool used in HR planning and
policy making.

HR Research
• Research is also used to evaluate HR practices and
performance. Research is a systematic and scientific
process of collecting information, analyzing the information
and drawing conclusions for decision-making. At times the
research may be advanced, relying on sophisticated designs
and statistics. But whether information is rigorous or not,
research seeks to improve the performance. There are two
kinds of research – academic and applied. Academic
research seeks answers to contribute to the existing body of
knowledge. Application – oriented research efforts are
called applied research.

HR Accounting
• Human resource accounting is the process of identifying
and reporting investments made in the human resources of
an organization that are presently unaccounted for in the
conventional accounting practices. It is an extension of
standard accounting principles.

HR Audit
• A Human Resources Audit is a comprehensive method (or
means) to review current human resources policies,
procedures, documentation and systems to identify needs
for improvement and enhancement of the HR function as
well as to assess compliance with ever-changing rules and
regulations.

Hrm unit 1

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Hrm unit 1