HUMAN RESOURCE
MANAGEMENT
Introduction
• Human Resource Management (HRM) refers to an
organization’s function responsible for managing the workforce.
The evolution of HRM can be traced back to the early 20th
century when the focus was on maintaining records and
ensuring compliance with labor laws. Over time, the role of HRM
has evolved to become more strategic and proactive in aligning
human capital with the organization’s goals and objectives.
• The evolution of HRM can be divided into several eras, each
characterized by different approaches to managing the
workforce.
• These eras include the pre-industrial revolution era, the
industrial revolution era, the emergence of personnel
management, the human relations era, the rise of strategic
human resource management, and the contemporary era.
The Pre-Industrial Revolution Era and HRM
• The Pre-Industrial Revolution era marked the early stages of the evolution of
HRM.
• There were no formal HRM practices during this time, and workers were often
treated as commodities.
• The focus was on manual labor, and workers were required to perform
physically demanding tasks for long hours without considering their well-being.
• In this era, there was no concept of job specialization, and workers were
expected to be multi-skilled. Wages were low, and working conditions were
poor. Employers had no legal obligation to provide their employees a safe
working environment or any other benefits.
• There was also no standardized system for hiring and training workers.
Employers would hire workers based on their physical strength and ability to
work long hours. Training was limited to on-the-job learning and
apprenticeships.
The Industrial Revolution and Its Impact on
HRM
• The Industrial Revolution brought about significant changes to the
world of work and had a profound impact on the evolution of HRM.
The rise of factories and the introduction of new technologies,
such as steam power and mechanized equipment, changed how
work was done and created a need for a more structured
approach to HRM.
• During the Industrial Revolution, the focus was on maximizing
productivity and efficiency, and HRM practices were designed to
achieve these goals. Job specialization emerged as a key feature
of HRM, with workers being trained to perform specific tasks more
efficiently. The assembly line, which was introduced during this
period, also contributed to the emphasis on job specialization.
The Emergence of Personnel Management in
HRM
• The emergence of Personnel Management marked a significant shift in the
evolution of HRM. Personnel Management focuses on managing
employees’ administrative and legal aspects, including recruitment,
selection, training, and compensation.
• During this period, the evolution of HRM practices became more
formalized, and there was a growing emphasis on compliance with labor
laws and regulations. Personnel managers were responsible for
maintaining records, handling employee grievances, and ensuring the
organization complied with labor standards.
• Personnel Management also introduced the concept of employee welfare,
with organizations beginning to offer benefits such as sick leave, vacation
time, and health insurance. The focus on employee welfare was a
response to growing concerns about the well-being of workers and the
need to maintain a productive workforce.
The Human Relations Era and
HRM
• During this period, HRM practices shifted towards a
more people-centered approach, emphasizing
communication and employee engagement. The
Hawthorne Studies, which were conducted during this
period, demonstrated the importance of social factors in
the workplace and the impact of employee attitudes
and emotions on productivity.
The Rise of Strategic Human Resource
Management (SHRM)
• The rise of Strategic Human Resource Management (SHRM)
represented a significant shift in the evolution of HRM, as it
moved beyond the administrative and compliance-focused
approach of Personnel Management and the people-centered
approach of the Human Relations Era. SHRM is a strategic
approach to managing the workforce that aligns HRM
practices with the goals and objectives of the organization.
The Role of Technology in the Evolution of HRM
• The role of technology has had a significant impact on
the evolution of HRM, particularly in recent years. The
introduction of new technologies has enabled HR
professionals to streamline their processes, improve
data management, and enhance the employee
experience.
The Globalization of HRM
• The globalization of HRM refers to extending human
resource management practices beyond national borders
to manage an increasingly diverse workforce in a
globalized economy. Globalization has led to a significant
shift in business operations, leading to the emergence of
multinational corporations and the need for a global
approach to human resource management.
• The contemporary era of HRM is characterized by
significant changes in how organizations manage their
employees. The evolution of HRM has evolved from a
purely administrative function to a strategic function that
aligns with the overall business strategy. This shift has led
to development of new HRM practices, tools, and
technologies.
What is Human Resource
Management?
• Human resources management (HRM) is a management function
concerned with hiring, motivating and maintaining people in an
organization.
• It focuses on people in organizations.
• Human resource management is designing management systems to
ensure that human talent is used effectively and efficiently to accomplish
organizational goals.
What is Human Resource
Management?
• Human resource management is organising, coordinating, and
managing employees within an organisation to accomplish its
mission, vision, and goals. This includes recruiting, hiring, training,
compensating, retaining, and motivating employees.
What is personnel Management?
Personnel management is defined as an
administrative specialization that focuses on hiring and
developing employees to become more valuable to the
company. It is sometimes considered to be a sub-
category of human resources that only focuses on
administration.
BASIS FOR COMPARISON PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
Meaning The aspect of management that is The branch of management that focuses
concerned with the work force and their on the most effective use of the
relationship with the entity is known as manpower of an entity, to achieve the
Personnel Management. organizational goals is known as Human
Resource Management.
Approach Traditional Modern
Treatment of manpower Machines or Tools Asset
Type of function Routine function Strategic function
Basis of Pay Job Evaluation Performance Evaluation
Management Role Transactional Transformational
Communication Indirect Direct
Labor Management Collective Bargaining Contracts Individual Contracts
Initiatives Piecemeal Integrated
Management Actions Procedure Business needs
Decision Making Slow Fast
Job Design Division of Labor Groups/Teams
Focus Primarily on mundane activities like Treat manpower of the organization as
employee hiring, remunerating, training, valued assets, to be valued, used and
and harmony. preserved.
5 basic elements of human resource management (HRM)
• HRM includes:
• Recruiting new hires
• Evaluating employee performance
• Ensuring fair compensation and benefits
• Training employees and supporting education and
development
• Protecting the health and safety of all employees
Scope of HRM
Major Challenges Faced by Human Resource Managers
1. Recruitment and Selection:
Finding a suitable candidate for the job from a large number of applicants is a
basic problem for the human resource manager. They have to make suitable
changes from time to time in the selection procedure and see to it that the
candidate is up to the mark fulfilling the job requirements.
2. Emotional and Physical Stability of Employees:
Providing with wages and salaries to employees is not sufficient in today’s
world. They should try to understand the attitude, requirements and feelings
of employees, and motivate them whenever and wherever required.
3. Balance Between Management and Employees:
Profits, commitment, cooperation, loyalty, and sincerely are the factors
expected by management, whereas better salaries and wages, safety and
security, healthy working conditions, career development, and participative
working are the factors expected by employees from management.
Major Challenges Faced by Human Resource Managers
4. Training, Development and Compensation:
A planned execution of training programmes and managerial
development programmes is required to be undertaken to
sharpen and enhance the skills, and to develop knowledge of
employees. Compensation in the form of salary, bonus,
allowances, incentives and perquisites is to be paid according to
the performance of people.
5. Performance Appraisal:
This activity should not be considered a routine process by the
human resource manager. A scientific appraisal technique
according to changing needs should be applied and the quality of
it should be checked from time to time.
Issues in business strategy affecting
HRM
• Kienbaum and Hackett, have identified the following
major strategic challenges for HR:
• 1. Increase the quality of leadership and
management
• 2. Manage the changing business needs for talent
and skills
• 3. Define a forward-looking workforce strategy
• 4. Foster innovation throughout the organization
• 5. Use data analytics to improve HR-related
decisions
HUMAN RESOURCE POLICIES
• Human resource policies are defined as specific guidelines that
an organization takes in managing its human assets.
• These are formal rules to recruit, assess, train, and reward the
workforce.
• These are referred to as the framework and the guiding force that
assist in making consistent decisions for the welfare of the
organization and its employees.
• The HR policies are an integral part of an organization as it helps
to set clear instructions about the working of the Company.
• It is a way to protect your business and prevent any
misunderstandings in the future.
Why are HR policies Important?
1.It ensures that employee needs are respected and
looked after in the organization
2.It makes sure that proper benefits are provided to the
employees for their work
3.It helps to address employee problems, complaints, and
grievances and even provides a way of solving them
4.It ensures proper training and development
opportunities are presented to the employees to meet
the needs of the organization
Why are HR policies Important?
1.It offers protection to the employees against anyone in
the organization
2.They are essential as it ensures that eligible employees
are getting allotted holidays and paid vacations as per
their due
3.It is considered vital as it helps to maintain the
discipline in the organization
4.It ensures that the employees are receiving fair
compensation.
The functions of human resource policies are as follows-
1.The function of human resource policy is to act as a
viable bridge between the employees and the business
entity
2.It lay down specific guidelines for managers and
supervisors
3.It helps to communicate the condition of employment
to the employees
4.The human resource policies have an essential function
of laying down and overseeing employee expectations
The functions of human resource policies are as follows-
1.Its function includes reviewing probable changes that will have an
impact on the employees at regular intervals
2.It lay down the groundwork for treating all the employees in an equal
and fair manner
3.The human resource policies function is to act as the stepping stone for
creating the employee handbook
4.Its function includes communicating the values and goals of the
organization to interested stakeholders
5.One of the functions of human resource policies is to communicate the
method and way of implementing all the policies across all the levels in
an organization
6.To form the context for orientation, employee onboarding, and
supervisor training programs.
HR Policies – 6 Important Types
• 1. Originated Policies – These are set-up by top management
intentionally with a view to guiding executive pondering over
various levels.
• 2. Appealed Policies – These policies are formulated to fulfill the
requirements of certain unusual situations which are riot found
covered by the earlier policies. Usually, such requests came from
subordinates who fail to handle the cases on the basis of the
guidance offered by the existing policies.
• (Such policies are formulated to give effect to the suggestions of
the staff of an organization. For example, the employees may
make an appeal to the top management to give employment to an
eligible member of an employee's family after the latter's
retirement)
HR Policies – 6 Important Types
• 3. Imposed Policies – As it is evident from the name of these
policies these are formed under imposition or pressure from
external agencies like government, trade associations, and unions.
Policies are sometimes imposed on the business by external
agencies such as government, trade associations and trade
unions.
• 4. General Policies – These policies manifests the philosophies and
priorities of the top management in formulating the broad plan for
mapping out the organisation’s growth chart.
• general policies means the overall plan embracing the
general goals and acceptable procedures of the Association,
as amended from time to time by the Board of Directors of
the Association.
HR Policies – 6 Important Types
• 5. Specific Policies – As it is evident from their name, these
policies cover specific issues such as hiring, rewarding and
bargaining. Such policies, however, should be in line with the
basic framework which is offered by the general policies.
• 6. Written Policies and Implied Policies – Implied policies as
evident from the behaviour of members like dress code, gentle
tone while interacting with to customers, not getting angry while
at work, etc. On the other hand written policies, spell out
managerial thinking on paper so that there is very little room for
loose interpretation. Implicit policies: These are policies that
are not explicitly stated or written down, but can be
understood from the behavior of executives, the philosophy
of the business, social values, and traditions.
