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Chapter 1 Human Resource Management:



Introduction The transformation of industrial society, globalization of business, and the modernization of methods and techniques which have emerged in a big way brought with it the need for managing a new array of people necessitating the human resource management approach. HRM has attained wider dimensions and immense importance in recent years. It represents a deviation from the existing philosophy attitudes, approaches and methods.HRM is concerned with human beings who are energetic elements of management. The success of any organization or an enterprise will depend upon the ability, strength and motivation of persons working in it.

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Human resource is the total knowledge, abilities, skills, talent and aptitudes of an organization’s workforce In the present complex environment no business or organization can exist and grow without appropriate human resources. HRM is that process of management which develops and manages the human elements of an enterprise.

Definitions :

Definitions HRM may be defined as a set of policies, practices and programs designed to maximize both personal and organizational goals. According to Flippo , “Human resource management 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”. According to Glueck “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is away of arranging people at work so that they give their best to the organization”.


NEED FOR HRM APPROACH HRM approach is needed for proper understanding among workers and management. Better Industrial Relation. Develop Organizational Commitment. Coping with Changing Environment. Changing in Political Philosophy. Increased Pressure on Employees.


SCOPE OF HUMAN RESOURCE MANAGENMENT According to Dale Yoder, the scope of human resource management is very wide. It consists of the following activities: Setting general and specific management policy for organizational relationships and establishing and maintaining a suitable organization for leader ship and corporation. Collective bargaining, contract negotiation, contact administration and grievance handling. Staffing the organization, finding, getting and holding prescribed types and number of workers.

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Developing and maintaining motivation for workers by providing incentives. Reviewing and auditing manpower management in the organization. Industrial relation research carrying out studies designed to explain employee behavior and thereby effecting improvement in manpower management.

Characteristics of HRM :

Characteristics of HRM Management of Human Resource: Arranging the people and managing them at work so that they give their best to the organisation. Inter-Personnel relationship: HRM defines the relationship between Employer and Employee and also between Employee and Employee. HRM is a specialized branch of General Management. HRM posses’ definite principles and policies which help over all development of Human force.

Principles of HRM :

Principles of HRM The labour management institute of England has given 9 principles. They are as follows. 1. Principle of maximum individual development 2. Principle of scientific selection 3 .Principle of high morale 4 .Principle of effective communication. 5 .Principle dignity of labour 6 .Principle of team spirit 7 .Principle of fair reward 8 .Principle of joint management 9 .Principle of contribution to National property.


OBJECTIVES OF HRM Objectives are pre-determined goals to which individual or group activity in an organisation is directed. The objectives of HRM may be as follows….. To ensure effective utilization of Human Resource. To create and utilize an able and motivated workforce, to accomplish the basic organizational goals. To provide an opportunity for expression and voice in management. To provide fair, acceptable and efficient leadership. To provide facilities and conditions of work and creation of favorable atmosphere for maintaining stability of employment.

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To maintain high employee morale and sound human relations by sustaining and improving the various conditions and facilities. To attain effective utilization of human resource in the achievement of organizational goals. To strengthen and appreciate the human assets continuously by providing training and developmental programmes . To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security. To secure the integration of individual and groups within the organisation.

Limitations of HRM :

Limitations of HRM HRM is of recent origin, and it lacks a universally approved academic base. As there is no general definition is accepted and an operational framework is universally approved, a sceptical approach. HRM may not produce expected result overnight. Gradual effect may be expected, and the management must have patience to wait and watch. Most of the HRD programmes are limited to class room training in many organizations. Many managers neglect to collect and store the required information without which HRM practice is difficult.

FUNCTIONS OF human resource management :

FUNCTIONS OF human resource management

Managerial functions: :

Managerial functions : Planning : - It also involves forecasting of personnel needs, changing values, attitudes and behaviour of employees and their impact of their organisation. Organizing : It seeks to achieve the maximum return with minimum effort by decentralization, where by the power of decisions is brought down as near as possible to the individual concerned. Directing or Motivating, Actuating or commanding: Directing the subordinates at any level is a basic function of the managerial personnel. Directing is involved with getting persons together and asking them to work willingly and effectively for the achievement of designated goals. Co-coordinating and Controlling: Coordinating refers to balancing timing and integrating activities in an organisation. It takes place at all levels. Controlling is the act of checking, regulating and verifying whether every thing occurs in conformity with the plan that has been adopted, the instructions issued and the principles established.


OPERATIVE FUNCTIONS: The OPERATIVE FUNCTIONS are concerned with activities specifically dealing with HRM functions. These functions are also known as Service functions. The following are the operative functions or service functions….. Before discussing the operative function let us focus on staffing Staffing involves setting job requirements for the job to be done. Staffing can be defined as placing the people in the vacant position or selecting the right kind of person for the right job. It involves or includes -Recruitment -Selection -Training and development -Appraisal -Compensation


Employment It is the first operative function of HRM and is concerned with securing and employing people possessing required kind and level of It cover the following sub functions.. Job Analysis: It is the process of study and collection of information relating to the operations and responsibilities of a specific job. Human Resource Planning: It is a process for determination and assuring that the organization will be an adequate number of qualifies persons, available at proper times, performing jobs which would meet the needs of the organisation. Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.

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Selection: It is the process of ascertaining the qualifications, experience, skill, knowledge etc., of an applicant with a view to appraising his/her suitability to a job appraising. Placement: It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. Induction or Orientation: It is a technique by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and people etc., of the organisation.

Human Resource Development:

Human Resource Development It is the process of improving moulding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc., based on present and future job and organizational requirements. Performance Appraisal: It is the systematic evaluation of with respect of their potential for development. Training: It is the process of imparting the employees the technical and operating skills and knowledge. Management Development: It is the process of designing and conducting suitable executive development programmes so as to develop the managerial and human relations skill of employees.

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Career Planning and Development: It is the planning of one’s career and implementation of career plans by means of education, training, job search and acquisition of work experiences. Internal Mobility: It includes vertical and horizontal movement of an employee within an organisation. It consists of transfer, promotion and demotion. Transfer: It is the process of placing employees in the same level jobs where they can be utilized more effectively in consistence with their potentialities and needs of the employees and the organisation.

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Promotions: It deals with upward assignment given to an employee in the organisation to occupy higher position which commands better status and/or pay keeping in view the human resources of the employees and the job requirement. Demotion: It deals with downward reassignment to an employee in the organisation. Organizational Development: It is a planned process designed to improve organizational effectiveness and health through modifications in individual and group behaviour , culture, and systems of the organisation using knowledge and technology of applied behavioural science.

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Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures Human Relations: It is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction.

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Human Resource Accounting (HRA): It is a measurement of the cost and value of human resources to the organisation. Human Resource Audit: It refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness of HRM. Human Resource Research : It is the process of evaluating the effectiveness of human resource policies and practices and developing more appropriate ones.

Job Description :

Job Description According to M.W.Cumming “It is a broad statement of the purpose, scope, duties and responsibilities of a particular job”. It is a written statement of the duties tasks, responsibilities, working conditions and job behaviour required to perform a job effectively.

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A job description is a written statement of the duties, responsibilities, required qualifications and reporting relationships of a particular job. The job description is based on objective information obtained through job analysis, an understanding of the competencies and skills required to accomplish needed tasks, and the needs of the organization to produce work.

Job descriptions are important :

Job descriptions are important Job descriptions improve an organization’s ability to manage people and roles in the following ways: The job description clearly identifies and spells out the responsibilities of a specific job. The job description also includes information about working conditions, tools, equipment used, knowledge and skills needed and relationships with other positions.

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