INDIAN SCHOOL OF SCIENCE & MANAGEMENT
SUBJECT: HUMAN RESOURCES MANAGEMENT
CHAPTER I
PERSPECTIVES IN HUMAN RESOURCE MANAGEMENT
What is Human Resource Management?
HRM is the study of activities regarding people working in an organization. It is a managerial function that tries to match
an organization‘s needs to the skills and abilities of its employees.
1.1.Definitions of HRM
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.
HRM is the personnel function which is concerned with procurement, development, compensation, integration and
maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the
organization‘s objectives. Therefore, personnel management is the planning, organizing, directing, and controlling ofthe
performance ofthose operative functions (Edward B. Philippo).
According to the Invancevich and Glueck, ―HRM is concerned with the most effective use of people to achieve
organizational and individual goals. It is the way of managing people at work, so that they give their best to the
organization‖.
According to Dessler (2008) the policies and practices involved in carrying out the ―people‖ or human resource
aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of
HRM.
1.1.2 Nature of HRM
HRM is a management function that helps manager‘s to recruit, select, train and develop members for an organization.
HRM is concerned with people‘s dimension in organizations.
The following constitute the core of HRM
HRM Involves the Application of Management Functions and Principles. The functions and principles are
applied to acquiring, developing, maintaining and providing remuneration to employees in organization.
Decision Relating to Employees must be Integrated. Decisions on different aspects of employees must be
consistent with other human resource (HR) decisions.
Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization will
result in betterment of services to customers in the form of high quality products supplied at reasonable
costs.
HRM Functions are not Confined to Business Establishments Only
,1.1.3.Features of HRM or characteristics or nature
1. HRM involves management functions like planning, organizing, directing and controlling
2. It involves procurement, development, maintenance of human resource
3. It helps to achieve individual, organizational and social objectives
4. HRM is a mighty disciplinary subject. It includes the study of management psychology
communication, economics and sociology.
5. It involves team spirit and team work.
1.1.4 Significance/importance/need of HRM
HRM becomes significant for business organization due to the following reasons.
1.Objective :-
HRM helps a company to achieve its objective from time to time by creating a positive attitude among
workers. Reducing wastage and making maximum use of resources etc.
2.Facilitates professional growth :-
Due to proper HR policies employees are trained well and this takes them ready for future promotions. Their
talent can be utilized not only in the company in which they are currently working but also in other
companies which the employees may join in the future.
3)Better relations between union and management :-
Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union
members start realizing that the company is also interested in the workers and will not go against them
therefore chances of going on strike are greatly reduced.
4) Helps an individual to work in a team/group :-
Effective HR practices teach individuals team work and adjustment. The individuals are now very
comfortable while working in team thus team work improves.
5.Identifies person for the future :-
Since employees are constantly trained, they are ready to meet the job requirements. The company is also
able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of
the advantages of HRM is eparing people for the future.
6.Allocating the jobs to the right person :-
If proper recruitment and selection methods are followed, the company will be able to select the right people
for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied
with their job leading to decrease in labour turnover.
, 5.Improves the economy:-
Effective HR practices lead to higher profits and better performance by companies due to this the company
achieves a chance to enter into new business and start new ventured thus industrial development increases
and the economy improves.
1.1.5 Scope of HRM
The major HRM activities include HR planning, job analysis, job design, employee hiring, employee and
executive remuneration, employee motivation, employee maintenance, industrial relations and prospects of
HRM.
The scope of Human Resources Management extends to:
All the decisions, strategies, factors, principles, operations, practices, functions, activities and
methods related to the management of people as employees in any type of organization.
All the dimensions related to people in their employment relationships, and all the dynamics that
flow from it.
The scope of HRM is really vast. All major activities n the working life of a worker – from the time of his or
her entry into an organization until he or she leaves it comes under the purview of HRM. American Society
for Training and Development (ASTD) conducted fairly an exhaustive study in this field and identified nine
broad areas of activities of HRM.
These are given below:
Human Resource Planning
Design of the Organization and Job
Selection and Staffing
Training and Development
Organizational Development
Compensation and Benefits
Employee Assistance
Union/Labour Relations
Personnel Research and Information System
Human Resource Planning: The objective of HR Planning is to ensure that the organization has the right
types of persons at the right time at the right place. It prepares human resources inventory with a view to
assess present and future needs, availability and possible shortages in human resource.
Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR Planning
develops strategies both long-term and short-term, to meet the man-power requirement.
b)Design of Organization and Job:
This is the task of laying down organization structure, authority, relationship and responsibilities. This will
also mean definition of work contents for each position in the organization. This is done by ―job description.
SUBJECT: HUMAN RESOURCES MANAGEMENT
CHAPTER I
PERSPECTIVES IN HUMAN RESOURCE MANAGEMENT
What is Human Resource Management?
HRM is the study of activities regarding people working in an organization. It is a managerial function that tries to match
an organization‘s needs to the skills and abilities of its employees.
1.1.Definitions of HRM
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.
HRM is the personnel function which is concerned with procurement, development, compensation, integration and
maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the
organization‘s objectives. Therefore, personnel management is the planning, organizing, directing, and controlling ofthe
performance ofthose operative functions (Edward B. Philippo).
According to the Invancevich and Glueck, ―HRM is concerned with the most effective use of people to achieve
organizational and individual goals. It is the way of managing people at work, so that they give their best to the
organization‖.
According to Dessler (2008) the policies and practices involved in carrying out the ―people‖ or human resource
aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of
HRM.
1.1.2 Nature of HRM
HRM is a management function that helps manager‘s to recruit, select, train and develop members for an organization.
HRM is concerned with people‘s dimension in organizations.
The following constitute the core of HRM
HRM Involves the Application of Management Functions and Principles. The functions and principles are
applied to acquiring, developing, maintaining and providing remuneration to employees in organization.
Decision Relating to Employees must be Integrated. Decisions on different aspects of employees must be
consistent with other human resource (HR) decisions.
Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization will
result in betterment of services to customers in the form of high quality products supplied at reasonable
costs.
HRM Functions are not Confined to Business Establishments Only
,1.1.3.Features of HRM or characteristics or nature
1. HRM involves management functions like planning, organizing, directing and controlling
2. It involves procurement, development, maintenance of human resource
3. It helps to achieve individual, organizational and social objectives
4. HRM is a mighty disciplinary subject. It includes the study of management psychology
communication, economics and sociology.
5. It involves team spirit and team work.
1.1.4 Significance/importance/need of HRM
HRM becomes significant for business organization due to the following reasons.
1.Objective :-
HRM helps a company to achieve its objective from time to time by creating a positive attitude among
workers. Reducing wastage and making maximum use of resources etc.
2.Facilitates professional growth :-
Due to proper HR policies employees are trained well and this takes them ready for future promotions. Their
talent can be utilized not only in the company in which they are currently working but also in other
companies which the employees may join in the future.
3)Better relations between union and management :-
Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union
members start realizing that the company is also interested in the workers and will not go against them
therefore chances of going on strike are greatly reduced.
4) Helps an individual to work in a team/group :-
Effective HR practices teach individuals team work and adjustment. The individuals are now very
comfortable while working in team thus team work improves.
5.Identifies person for the future :-
Since employees are constantly trained, they are ready to meet the job requirements. The company is also
able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of
the advantages of HRM is eparing people for the future.
6.Allocating the jobs to the right person :-
If proper recruitment and selection methods are followed, the company will be able to select the right people
for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied
with their job leading to decrease in labour turnover.
, 5.Improves the economy:-
Effective HR practices lead to higher profits and better performance by companies due to this the company
achieves a chance to enter into new business and start new ventured thus industrial development increases
and the economy improves.
1.1.5 Scope of HRM
The major HRM activities include HR planning, job analysis, job design, employee hiring, employee and
executive remuneration, employee motivation, employee maintenance, industrial relations and prospects of
HRM.
The scope of Human Resources Management extends to:
All the decisions, strategies, factors, principles, operations, practices, functions, activities and
methods related to the management of people as employees in any type of organization.
All the dimensions related to people in their employment relationships, and all the dynamics that
flow from it.
The scope of HRM is really vast. All major activities n the working life of a worker – from the time of his or
her entry into an organization until he or she leaves it comes under the purview of HRM. American Society
for Training and Development (ASTD) conducted fairly an exhaustive study in this field and identified nine
broad areas of activities of HRM.
These are given below:
Human Resource Planning
Design of the Organization and Job
Selection and Staffing
Training and Development
Organizational Development
Compensation and Benefits
Employee Assistance
Union/Labour Relations
Personnel Research and Information System
Human Resource Planning: The objective of HR Planning is to ensure that the organization has the right
types of persons at the right time at the right place. It prepares human resources inventory with a view to
assess present and future needs, availability and possible shortages in human resource.
Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR Planning
develops strategies both long-term and short-term, to meet the man-power requirement.
b)Design of Organization and Job:
This is the task of laying down organization structure, authority, relationship and responsibilities. This will
also mean definition of work contents for each position in the organization. This is done by ―job description.
