HUMAN

RESOURCE
MANAGEMENT
 EVOLUTION OF HRM
CONCEPT
 The early part of the 19th century saw a
concern for improved efficiency through
careful design of work. During the middle
part of the century, emphasis shifted to the
availability of managerial personnel and
employees productivity. Recent decades
have focused on the demand for technical
personnel, responses to new legislation and
governmental regulations increased concern
for the quality of working life, total quality
management and a renewed emphasis on
productivity. Let us look into these trends
more closely by examining the
transformation of personnel function from
 EVOLUTION OF HRM
CONCEPT
 Concept: What is it all about?
 The commodity concept:
 Labor was regarded as a commodity to be
bought and sold. Wages were based on
demand and supply. Government did very
little to protect workers.
 The Factor of Production concept:
 Labor is like any other factor of production,
viz., money, materials, land etc. Workers
are like machine tools.
 EVOLUTION OF HRM
CONCEPT
 The Good-will concept:
 Welfare measures like safety, first aid,
lunch room, rest room will have a positive
impact on worker’s 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.
 EVOLUTION OF HRM
CONCEPT
 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 Resources 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
 EVOLUTION OF HRM
CONCEPT
 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.
HUMAN RESOURCE MANAGEMENT (HRM)

HRM is defined as

“HRM is a management function concerned with hiring ,

motivating and maintaining people in an organization. It
focuses on people in organization”

(Aswathappa)

HRM is a management function that helps managers

plan, recruit, select, train, develop, renumerate and
maintain members for an organization.
HRM: PEOPLES DIMENSIONS IN ORGANIZATIONS
•
HRM is the application of management functions
and principles related to employees
•
HRM functions are applicable everywhere (not for
profit and profit driven organizations)
•
Employees decisions are integrated
•
Employees decision brings efficiency in an
organization
•
HRM includes all major activities in professional
life of a worker
•
All activities from employee entry to managing
performance and training until he or she leaves
 FUNCTIONS OF HR MANAGER
• Planning (Manpower, Job Analysis and Design)

• Staffing (Recruitment and Selection)

• Developing (Training and Development)

• Placement

• Remuneration (Wages & salary administration)

• Performance appraisal

• Promotion, transfer, separation

• Grievance handling

• Welfare administration (Safe and Healthy Work Environment)

• Industrial relations

• Job evaluation
 Nature of HRM
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 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 multi-disciplinary activity, utilizing
knowledge and inputs drawn from
psychology, economics, laws, etc.
 SCOPE OF HRM
 Personnel aspect: concerned with manpower
planning, recruitment, selection, placement, transfer,
promotion, training and development, lay off and
retrenchment, remuneration, incentives, productivity,
etc.;
 Welfare aspect; dealing with working conditions and
provision of amenities such as canteens, crèches,
rest and lunch rooms, housing, transport, medical
assistance, education, health, safety, recreation
facilities, etc.; and
 Industrial Relations aspect: the legal part which
covers union-management relations, joint
consultation, collective bargaining, grievance redress
and disciplinary procedures, settlement of disputes,
etc.
 HRM OBJECTIVES
•
The main objective of HRM is to ensure the availability of
willing and competent force to an organization

•
There are other objective of HRM too

1. Societal objectives

2. Functional objectives

3. Organizational objectives

4. Personal objectives
HRM OBJECTIVES

Societal Objectives

Organizational
Objectives

Functional
Objectives

Personal
Objectives

Source: Aswathappa, 2008, p.8

 HRM OBJECTIVES

1 Societal objectives

•
Societal objectives of HRM is to make sure that the
organization is socially and ethically responsible to the
needs and challenges of the society while minimizing the
negative impact of societal demands upon the
organization.

•
For example: EEO laws forces organization to be ethical in
recruitment, to minimize the discrimination against hiring
based on ethnicity, race, and religion etc.
 HRM OBJECTIVES

2 Organizational objectives

•
To bring organizational effectiveness.

•
Its purpose is to assist/serve organization

•
HR department also serve other departments
 HRM FUNCTIONS AND OBJECTIVES

3 Functional objectives
•
To maintain department’s contribution at a level appropriate
to the organization’s needs.
•
HR department services must fit into the organizational
needs
 HRM FUNCTIONS AND OBJECTIVES

4 Personal objectives

•
To assist employees in achieving their personal/individual
goals while having maximum contribution to the goals of
the organization.

•
Personal objectives are achieved when employees are
satisfied, motivated and retained using developmental
tools.
 HRM FUNCTIONS AND OBJECTIVES
HRM Objectives Supporting Functions
Societal Objectives Legal compliance
Benefits
Union-Management relationship
Organizational Human Resource Planning
Objectives Employee Relations
Training and Development
Performance Appraisal
Placement
Functional Performance Appraisal
Objectives Placement
Personal Objectives Compensation
Training and Development
Performance Appraisal
Placement

Source: Aswathappa, 2008, p.10

 Challenges of HRM
1. Recruiting new staff
Companies sometimes need to recruit new
talent for various reasons such as increase
in project scope, operations. While
recruiting, HRM faces major challenges i.e.
selecting the best candidate and making
the hired candidate familiar with the
environment and culture.
HRM has to select such candidates which are
not only technically expert but socially too
because company cannot receive expected
output from employees who are unable to
socialize. This affects the productivity of the
company.
2. Retention
Hiring employees is not only the challenge that HRM
faces; retaining them is also one. Retention of
employees is essential to minimize employee turnover
rate. This is a major challenge for HRM because of
following reasons:
i. Contingent workforce
Contingent workforce includes part-time, temporary
contract and work-at-home employees. Maintaining
such employees in the company is a challenge because
they are less attached with the company. So it becomes
a major duty of HRM to make such employees feel that
they are a part of the company in order to retain them
for a long term.
ii. Demand of expert employees
Personnel with greater professional and technical
knowledge are highly demanded in the job market as
such employees have the ability to keep their company
ahead in the race. Such employees are invaluable asset
3. Training
Skilled workers are the key to smooth functioning of
organization. Therefore, HRM should manage on-site
(within the workplace) as well as off-site (outside the
workplace) job trainings for employees.
So how is training a challenge to HRM? Before organizing
training programs, HRM should answer following
questions:
What kind of training programs are currently required?
What is the objective of the training?
How to make them effective?
Who are the target groups?
How much does the programs cost the company?
Not always, are these questions easy to answer. Finding
out all the factors affecting the training like time,
location, cost, etc. and making a clear roadmap in
establishing an impactful event can be a big issue and
working it out, a big challenge.
4. Productivity
Maximizing profit and minimizing cost is the
essence of productivity. Higher the
productivity level, more successful will be the
company. HRM should always focus on
maintaining high productivity level.
Despite HRM's continuous effort, company
might sometimes get unsatisfactory result. In
such case, it is important to thoroughly
analyze the situation and make a proper
conclusion i.e. whether it is the result of
inefficient employee or inadequate resources.
If inefficient employee is the case, HRM should
look forward to train employee, transfer and
separation or even recruiting new staffs. On
the other hand, it is necessary to find
5. Health and safety
It is one of the essential functions of HRM to
collect its staff’s complete information,
including health information. It is necessary to
look for employee’s personal safety. Keeping
health information about employees help the
company in knowing what kind of tasks or
activities are safe for their employees to
participate in.
Maintaining health information is also necessary
to avoid the risk of legal complications.
Several companies at present provide health
insurance to its employees as a fringe benefit.
In lack of proper health information about
employees, various legal issues may arise
when such insurance is claimed.
6. Workforce diversity
Composition of workforce is getting diverse at
present situation. Here diversity is not only
created by age, gender, educational
background and religion but also by the
nature, personality and background of
workers.
With more diversification of workforce, issues
related to bullying, harassment,
discrimination, etc. may arise. To control such
situation occurring in the organization,
HRM should formulate and implement strict
rules and regulations.
7. Payroll
Payroll is a written document which provides
information about the company’s employees
along with the amount of remuneration to be
paid.
HRM has to conduct a number of tasks every
day. In this process, HR manager might forget
to pay its employees, if not then he can forget
the amount to be paid to individual employee.
With proper maintenance of payroll, HR
manager will be able to pay right amount to
right employee at right time, which is very
essential for extracting satisfactory output
from employees.
8. Globalization
Globalization is a process by which a business
firm or organization starts operating on
an international scale, creating international
influence.
Internationalization of firms is obviously a Sign
of Success but it is a challenge at the same
time, because globalization invites issues
related to unknown language, laws, work
ethics, attitudes, management approach,
culture and tradition.
A human resource manager will need to deal
with more heterogeneous functions such as
scheduling meetings, holiday management,
human resource outsourcing, etc. to
overcome with the challenge.
9. Discipline
Discipline is one of the important issues that
HRM needs to handle at present days. Lack
of discipline causes various problems which
ultimately affect the productivity of the
company.
For an instance, when discipline is not
maintained, employees neglect their
responsibilities and duties. They may
procrastinate their tasks and may
misbehave with co-workers, leading to
conflict that consume time as well as
energy to resolve. The ultimate result of
these activities is decreased productivity of
the company.
10. Advancement in technology
With rapid advancement in technology,
companies nowadays require such human
force that has ability to learn and cope with
the changes at an opportune moment.
Technological changes must be taken into
consideration by any kind of company. It is
because the present world demands every
firm to move along with the change, or else
be left behind and get extinct.
Technological changes influence overall nature
of work and the company will need to find
out employees that are capable to adjust with
the change. During this
process, unemployment as well as
employment opportunities arise, creating new
11. Management of information
Up-to-date information is essential for operation
of any company. Information may be collected
internally as well as externally. Once collected,
all the information should be safely
maintained so that they would be readily
available when needed in future.
On the other hand, information is also essential
to clear queries of employees. HRM should be
able to present relevant facts and data while
clearing such queries.
Managing any kind of information is a challenge
to HRM because it should know which
information are actually useful and which are
not. After distinguishing these information, it
should select such method of storing
information which is safe as well as reliable.
 HUMAN
RESOURCE
PLANNING
MEANING AND
DEFINITION
 In simple words, HRP is understood as
the process of forecasting an
organization's future demand for, and
supply of, the right type of people in the
right number.
 After this only the HRM department can
initiate the recruitment and selection
process
 It’s called by manpower planning,
personal planning or employment
planning
DEFINITION OF HRP
• It includes the estimation of how many
qualified people are necessary to carry out the
assigned activities, how many people will be
available, and what, if anything, must be done
to ensure that personal supply equals
personnel demand at the appropriate point in
the future.
• Basically it’s the process by which an
organization ensures that it has the right
number & kind of people, at the right place, at
the right time, capable of effectively &
efficiently completeing those tasks that will
help the organisation achieve its overall
objectives.
IMPORTANCE OF HRP
1. FUTURE PERSONNEL NEEDS
• Surplus or deficiency in staff strength
• Results in the anomaly of surplus labour with the lack of
top executives
2. COPING WITH CHANGE
• Enables an enterprise to cope with changes in competitive
forces, markets, technology, products & government
regulations
3. CREATING HIGHLY TALENTED PERSONNEL
• HR manager must use his/her ingenuity to attract & retain
qualified & skilled personnel
• Succession planning
4. PROTECTION OF WEAKER SECTIONS
• SC/ST candidates, physically handicapped, children of the
socially disabled & physically oppressed and backward
class citizens.
IMPORTANCE OF HRP
5. INTERNATIONAL STRATEGIES
• Fill key jobs with foreign nationals and re-
assignment of employees from within or across
national borders
6. FOUNDATION FOR PERSONNEL FUNCTIONS
• Provides information for designing &
implementing recruiting, selection, personnel
movement(transfers, promotions, layoffs) &
training & development
7. INCREASING INVESTMENTS IN HUMAN
RESOURCES
• Human assets increase in value
8. RESISTANCE TO CHANGE AND MOVE
• Proper planning is required to do this
IMPORTANCE OF HRP
9. OTHER BENEFITS
• Upper management has a better view of
the HR dimensions of business decision
• More time is provided to locate talent
• Better opportunities exist to include
women & minority groups in future
growth plans
• Better planning of assignments to
develop managers can be done
 ENVIRONMENT

ORGANISATIONAL
OBJECTIVES AND POLICIES

HR NEEDS FORECAST HR SUPPLY

FORECAST

HR PROGRAMMING

HRP IMPLEMENTATATION

CONTROL AND
EVALUATION OF PROGRAMME

SURPLUS SHORTAGE
RESTRICTED HIRING
RECRUITMENT
REDUCED HOURS AND
SELECTION
VRS, LAY OFF, etc
Recruitment Selection &
placement
 IfShortage of employees
- Do-
Hire new full-time employees
Offer incentives for postponing retirement
Re-hire retired employees on part-time
basis
Attempt to reduce turnover
Bring in over-time for present employees
Subcontract work to another company
Hire temporary employees
Re-engineer to reduce needs
 If surplus of employees is expected
-Do-
Do not replace employees who leave
Offer incentives for early retirement
Transfer or reassign excess employees
Use slack time for employees training or
equipment maintenance
Reduce work hours
Pay off employee
TRAINING AND
DEVELOPMENT
 It covers no. of trainees required
 It necessary for existing staff
 Identification of resource personnel for
conducting development programmes
 Frequency of training and development
programmes
 Budget allocation
 Retraining and redeployment:
 New skill should be imported to existing
employee

Retention plan:
 Compensation plan
 Performance appraisal
 Employees leaving in search of green pastures
 The induction crises
 Shortages
 Unstable recruits
 TEXT BOOKS
 Harold Koontz, Heinz Weihrich,
A.R.Aryasri, Principles of Management,
TMH, 2010.
 K. Aswathappa, “Human Resource
Management, Text and Cases”, TMH,
2011.
 Philip Kotler, Kevin Lane Keller, Abraham
Koshy and Mithleshwar Jha: Marketing
Management, 13/e, Pearson Education,
2012.
 Dipak Kumar Bhattacharyya, Production
and Operations Management,
Universities Press, 2012.
 REFERENCES
 Dilip Kumar Battacharya, Principles of
Management, Pearson, 2012.
 Gary Dessler, “Human Resource
Management”, 12 Edition, Pearson-
2012.
 Rajan Saxena: Marketing Management,
4/e, TMH, 2013