Human Resource Management

DEFINITION
MEANING
SCOPE
OBJECTIVE
FUNCTION
&
NATURE
 Meaning of H.R.

Human resources may be defined as the total

knowledge, skills, creative abilities, talents and
aptitudes of an organization's workforce, as well as
the values, attitudes, approaches and beliefs of the
individuals involved in the affairs of the
organization. It is the sum total or aggregate of
inherent abilities, acquired knowledge and skills
represented by the talents and aptitudes of the
persons employed in the organization.
The human resources are multidimensional in
nature. From the national point of view, human
resources may be defined as the knowledge, skills,
creative abilities, talents and aptitudes obtained in
the population; whereas from the viewpoint of the
individual enterprise, they represent the total of the
inherent abilities, acquired knowledge and skills as
exemplified in the talents and aptitudes of its
employees.
 Definition of HRM

Human resource management (HRM) is the

strategic and coherent approach to the management of
an organization's most valued assets - the people working
there who individually and collectively contribute to the
achievement of the objectives of the business. The terms
"human resource management" and "human resources"
(HR) have largely replaced the term "personnel
management" as a description of the processes involved
in managing people in organizations. In simple sense,
HRM means employing people, developing their
resources, utilizing, maintaining and compensating their
services in tune with the job and organizational
requirement.
In other words, HRM is concerned with getting better
results with the collaboration of people. It is an integral
but distinctive part of management, concerned with
people at work and their relationships within the
enterprise. HRM helps in attaining maximum individual
development, desirable working relationship between
employees and employers, employees and employees,
and effective modeling of human resources as contrasted
with physical resources. It is the recruitment, selection,
development, utilization, compensation and motivation
of human resources by the organization.
Human Resource Management: Evolution

The early part of the century saw a concern for

improved efficiency through careful design of work.
During the middle part of the century emphasis
shifted to the employee's productivity. Recent
decades have focused on increased concern for the
quality of working life, total quality management and
worker's participation in management. These three
phases may be termed as welfare, development and
empowerment.
 H.R.Management: Nature

Human Resource Management is a process of bringing

people and organizations together so that the goals of
each are met. The various features of HRM include:
• It is pervasive in nature as it is present in all
enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the
organization.
• It is all about people at work, both as individuals and
groups.
• It tries to put people on assigned jobs in order to
produce good results.
 • It helps an organization meet its goals in the future by
providing for competent and well-motivated employees.
• It tries to build and maintain cordial relations between
people working at various levels in the organization.
• It is a multidisciplinary activity, utilizing knowledge and
inputs drawn from psychology, economics, etc.
Human Resource Management: Scope

The scope of HRM is very wide:

1. Personnel aspect-This is concerned with manpower
planning, recruitment, selection, placement, transfer,
promotion, training and development, layoff and
retrenchment, remuneration, incentives, productivity etc.
2. Welfare aspect-It deals with working conditions and
amenities such as canteens, rest and lunch rooms, housing,
transport, medical assistance, education, health and safety,
recreation facilities, etc.
3. Industrial relations aspect-This covers union-management
relations, joint consultation, collective bargaining, and
disciplinary procedures, settlement of disputes, etc.
 Human Resource Management: Beliefs

 The Human Resource Management philosophy is based on the

following beliefs:
• Human resource is the most important asset in the organization
and can be developed and increased to an unlimited extent.
• A healthy climate with values of openness, enthusiasm, trust,
mutuality and collaboration is essential for developing human
resource.
• HRM can be planned and monitored in ways that are beneficial
both to the individuals and the organization.
• Employees feel committed to their work and the organization, if
the organization perpetuates a feeling of belongingness.
• Employees feel highly motivated if the organization provides for
satisfaction of their basic and higher level needs.
• Employee commitment is increased with the opportunity to
discover and use one's capabilities and potential in one's work.
• It is every manager's responsibility to ensure the development and
utilization of the capabilities of subordinates.
Human Resource Management: Objectives

• To help the organization reach its goals.

• To ensure effective utilization and maximum
development of human resources.
• To ensure respect for human beings. To identify and
satisfy the needs of individuals.
• To ensure reconciliation of individual goals with those
of the organization.
• To achieve and maintain high morale among
employees.
• To provide the organization with well-trained and well-
motivated employees.
• To increase to the fullest the employee's job satisfaction
and self-actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs
of society.
• To develop overall personality of each employee in
its multidimensional aspect.
• To enhance employee's capabilities to perform the
present job.
• To equip the employees with precision and clarity
in transaction of business.
• To inculcate the sense of team spirit, team work
and inter-team collaboration.
 Human Resource Management : Function

 In order to achieve the above objectives, Human Resource

Management undertakes the following activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to
another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for
organizational relationship.
9. Collective bargaining, contract negotiation and grievance
handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at
all levels.
12. Developing and maintaining motivation for
workers by providing incentives.
13. Reviewing and auditing manpower management
in the organization
14. Potential Appraisal. Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization development and
Quality of Working Life.
 H. R. M: Major Influencing Factors

In the 21st century HRM will be influenced by following

factors, which will work as various issues affecting its
strategy:
• Size of the workforce.
• Rising employees' expectations
• Drastic changes in the technology as well as Life-style
changes.
• Composition of workforce. New skills required.
• Environmental challenges.
• Lean and mean organizations.
• Impact of new economic policy. Political ideology of the
Government.
• Downsizing and rightsizing of the organizations.
• Culture prevailing in the organization etc.
 DEVELOPED BY

ANURAN BACHHAR
MBA, 2ND SEMESTER,
ROLL No. 14, SEC- A