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Chapter 1 - Introduction to Human Resourse Management (HRM) BBS 2nd Year


Introduction to Human Resources Management



As we know that the principal resources of an organization is the people. Without which no organization can born and run. Thus people are that resources of organization through which all activities are done to achieve the organizational objectives. So the process of managing the human resources of an organization is known as human resource management. It is mainly concerned with people’s dimension in the organization. It means employing people, developing these resources, utilizing, maintaining, and compensating their services with the job and organizational requirement. Human resource is the primary resources of the organization, so they should be managed effectively and efficiently to achieve organizational goal. HRM is said to be the philosophy, policies, procedures and practices releted to the management of productive human resources in and organization.

According to Byars and Rue: “Human resource management encompasses those activities designed to provide for and coordinate the human resources of an organization.

Decenzo & Robbins: “HRM is a process of four function acquiring, development, motivation and maintenance of human resources.”
In short HRM can be defined as the process of accomplishing organizational goals by acquiring, retaining, terminating, developing and properly using human resources in an organization.

Characteristics of HRM:

i) Action Oriented: Effective HRM focuses on action, rather than on record keeping, written procedure or rules. It gives emphasis on the solution to employment problem to achieve organizational objectives and facilitate employment development and satisfaction in a dynamic environment.

ii) Human Approach: HRM is the process of managing people of an organization with a human approach. It means employing people developing these resource, utilizing, maintaining and compensating their services to the job and organizational requirement. It is concerned with human aspects. Mainly it develops and utilize human potential.

iii) Part of Management: HRM is a part of management principles and functions. 
It involves managerial functions such as planning,  implementing and controlling of acquisition, development, utilization and ........ maintenance of human resources.


iv) Pervasive function: HRM is pervasive function of management. All level of management perform it. Although the HR department is created under HR manager, it should not be assumed that other managers are not free from its responsibility.

v) Continuous Process: HRM is a continuous process and it must be performed continuously to achieve organizational goal smoothly. It is concerned with present as well as future.

vi) Achievement of Goal: HRM aims to achieve organizational goal by managing the human resources of an organization.

vii) HRM function: acquisition, development, motivation and maintenance.
Objectives of HRM
 Objectives are predetermined goals to which individual or group activity in an organization is directed. Effective management  of human resources is the key to organizational success. Corporate objectives and individual as well as social goals influence the objectives of human resource management. The primary objectives of HRM is to acquire, develop, motivate, and utilize the human resource to achieve organizational goals in a dynamic environment. The various purpose of HRM is given below:

a) Acquisition: One of the main purpose of HRM is to enable the organization to obtain and retain the skilled committed and well motivated workforce to achieve organizational objectives.

b) Achievement of organization goal: HRM always aim to achieve organizational goal by an effective utilization of human resources.

c) Development of People: The another purpose of HRM is to enhance and develop the inherent capacities of people, their contribution potential and employability by providing continuous training and development  opportunity.

d) To develop an environment in which team work and flexibility can flourish.

e) To ensure that people are valued and rewarded for what they do and achieve and to give equal opportunities are available to all.

f) Improve quality of work life: Human resource management maintains and improve physical and mental well- being of employee. HRM always aim to maintain the quality of work life. Without this improvement, it is difficult to improve the organizational performance.

Functions/ Components of HRM

In order to achieve organizational objectives, HRM must perform certain functions. The main function performed by HRM can be classified into four category.

1) Acquisition:  Acquisition means to place right number of people at right time in the organization. The following activities are related with acquisition:

a) HR Planning: The HRM process begins with human resource planning. Planning ensures organization that it has a right number of qualified people in the right job at right time. This includes the estimation of demand and supply of labour.

b) Recruitment:  Recruitment is the process of seeking and attracting prospective candidate for the job vacancies. It ensures more people to apply for the job.

c) Selection: Selection means to choose the right candidate from among all the prospective application. It involves reviewing the application form, psychological testing, interviewing etc.

d) Specialization: The acquisition  functions is completed when the selected applicant have been placed in organization and have adopted to the organization’s culture and environment.

2) Development of Human Resource: HRM is intended to improve the performance of employees. Plans should be arranged for developing people at all level because competent people will not remain competent forever. So that additional development of human resources required time to time. The development of human resources can be viewed in three process. The first is employee training which gives emphasis on skill development to cope with the current changes. The second is management development, which is concerned with enhancement of an executive’s conceptual abilities. The third is career development which involves carrier path of employee to match long term individual and organization needs.

3) Motivation of Human Resource: Highly motivated  employee always tend to be more productive and have lower rates of absenteeism, turnover and lateness. Thus employee motivation is vital to the success of any organization.
The extrinsic factor such as job design. Working condition, job security, and supervision and intrinsic factor such as achievement, recognition are the main factors which affect the motivation of the employee. The employees of any organization motivates towards his work when his needs are satisfied by the job, is doing. The performance appraisal process and its outcome will affect the employee motivation. If they think their efforts will be unfairly judged, motivation will decrease. The reward or punishment that follow the appraisal and compensation and benefit administration will influence motivation. A link should be established between employee performance and compensation. The main aim of HRM is to increase the productivity and performance of the employee by motivating them.

4) Maintenance of human resource: The final function of HRM is maintenance of human resource. It is concerned with providing those working condition that employee believe are necessary in order to maintain their commitment to the organization. Organization are required to provide safe work environment free from physical hazards and unhealthy condition. Labour relation is concerned with the relationship between the organization and its employee. If there is good relationship , there will be cooperation and a high level of commitment otherwise not. Thus through these activities, we can expect to have competent  otherwise not. Thus through this activities, we can expect to have competent employee who are committed to the organization and satisfied with their job.
HRM  System
 HRM is the process of managing people in the organization with a human approach. Thus it is concerned with the people dimension in management. HRM can be viewed from system prospective. A system is an organized set of interrelated and integrated parts or objects in a manner of achievieing common goal. System consists of components such as input, processing and outcomes which interact with environmental dynamics. These components are interlinked through feedback and it is a continuous process operates in a dynamics environment. This system provides a conceptual structure for integrating the various components within the HRM system.

1) Input:
i) Organizational Plan: The organization’s plan and strategies needs for the future determine of human resource . Various components of organizational plan such as production plan, marketing plan, sales plan, plan for expansion and diversification are used as the basis  for developing human resources planning. This plan help in estimating the demand of human resources that will be required for future.

ii) HRM Policies: HRM policies are general statement that serve to guide decision making. They direct the action of HR activities towards the achievement of its goals. HRM policies are there to serve three major function.
A) To reassure employees that they will be treated fairly and objectively, 
B) To help managers make quick and consistent decision and 
C) To give managers the confidence to resolve problems and to define their decision. Organization can improve the performance of HR by the proper use of human resources policies.

iii) HR plans: HR plans help to keep the organization supplied with the right people when they are needed. It determines the human resources required by the organization. It forecast the demand for HR by comparing the present supply of HR with organization’s projected demand for HR.

iv) Job  Analysis: Job analysis is the process of determining the tasks that make up the job and the skill, abilities and responsibilities that are required of an individual to successfully accomplish the job. This specify the job requirement.

v) Labour Market: Lobour market serves as the external sources of supply of HR that are required for organization.
2) Processing: ( Same as the function of HRM)
3) Output of HRM system:
i) Quality of Work life(QWL) : Quality of work life refers to the quality of relationship between employee and the total working environment of the organization. QWL can be defined as the extent to which members of an organization are able to satisfy personal needs through organizational process. It concentrates on creating a working environment that is conductive to the satisfaction of employee nees. QWL includes autonomy, recognition, belonging and external rewards. It helps to increase productivity, organizational effectiveness and employee satisfaction.

ii) Productivity: Productivity is the relationship between real inputs and real outputs. It measure how well resources are combined and utilized to produce a result desired by management. Higher productivity ensures lesser cost of production, higher production and most effective utilization of available resources. This leads to the satisfaction of every section of society, consumer, employees and employers.

iii) Readiness for change: Change is the part of organizational life. In fact the survival, growth, and profitability of an organization depends on its ability to change its structure and process in response to changing environment. Training is important to reduce the fair associated with change. The management must creates a work atmosphere that views change as a positive and progressive endeavor.

iv) Competitive Advantages: Globalization and liberalization of business are bound to intensify competition. In such situation organization must obtain competitive advantage to survive and successed. Competitive advantages is obtained through efficient and creative workforce. Continuous improvement and innovation are two essential objects to achieve and sustain competitive advantages.

Personnel and Human Resource Management (HRM)

HRM is the modern term for what has traditionally been referred to as personnel administration or personnel management. HRM is the term increasingly used to refer  to the philosophy, policies, procedures, and practices related to the management of people in the organization. Some view personnel management or perhaps modern personnel management means the same thing. Change in terminology reflects the increased significance associated with the management of people in organization as well as border prospective from which the field is currently viewed. One should clearly understand that HRM is not only personnel mgmt. rather it is only the part of HRM. In the past personnel management had a strong functional focus, that is personnel specialists were primarily concerned with the administration of specific employee related function such as living, training, wage setting and disciplinary action. HRM is emerged out of personnel functions, and personnel mgmt. can not be isolated from HRM.

The difference between HRM and personnel management are as follows:
1. HRM is primarily a philosophy, policies, procedures and practices related to the management of people while personnel mgmt is a functional area and function.

2. HRM must remain at the center of management. It is concern of all managers from top to button in an organization, while personnel mgmt is mainly the concern of personnel managers.

3. HRM makes effort primarily to satiety the human needs of the people at work which motivates the people to make their best contribution for the achievement of organization goals and objectives, while personnel management maintains rules, principles and legal provisions in maintaining the people.

4. Human values and individual needs are given priority in HRM, while personnel management gives emphasis on efficient administration.

5. HRM is an integrated approach accommodating all the aspects of acquisition, development, motivating and maintenance of human resources, where as personnel management is primarily concerned with recruitment, selection, and administration of manpower.

Outcomes of HRM
Quality of Work Life(QWL):
QWL refers to the quality of relationship between employees and the total working environment of the organization . QWL can be defined as the extent to which members of an organization are able to satisfy personal needs through organizational process. Thus QWL concentrates on creating a working environment that is conductive to the satisfaction of worker needs. Thus QWL concentrates on creating of working environment that is suitable and gives satisfaction to the workers. Barry A. Stein provides us with following five procedures or policies, that makes the work less routine and more rewarding for the employee.

a) Autonomy/ Freedom: It deals with the amount of freedom...... that employee can exercise in their job.

b) Recognition: It involves being valued by others in the company. An employee's contribution to the organization is noticed and appreciated.

c) Belonging: It refers to being part of the organization. An individual who belongs to an organization is one who shares the organization’s values and is regarded as being valuable part of the firm.

d) Progress and Development: Progress and development refer to the internal reward available from the organization, challenge, and accomplishment.

e) External Reward: External rewards are usually in the form of salary and benefits but also include promotion and status.Personnel and Human Resource Management (HRM)
HRM is the modern term for what has traditionally been referred to as personnel administration or personnel management. HRM is the term increasingly used to refer  to the philosophy, policies, procedures, and practices related to the management of people in the organization. Some view personnel management or perhaps modern personnel management means the same thing. Change in terminology reflects the increased significance associated with the management of people in organization as well as border prospective from which the field is currently viewed. One should clearly understand that HRM is not only personnel mgmt. rather it is only the part of HRM. In the past personnel management had a strong functional focus, that is personnel specialists were primarily concerned with the administration of specific employee related function such as living, training, wage setting and disciplinary action. HRM is emerged out of personnel functions, and personnel mgmt. can not be isolated from HRM.

The difference between HRM and personnel management are as follows:
1. HRM is primarily a philosophy, policies, procedures and practices related to the management of people while personnel mgmt is a functional area and function.
2. HRM must remain at the center of management. It is concern of all managers from top to button in an organization, while personnel mgmt is mainly the concern of personnel managers.
3. HRM makes effort primarily to satiety the human needs of the people at work which motivates the people to make their best contribution for the achievement of organization goals and objectives, while personnel management maintains rules, principles and legal provisions in maintaining the people.
4. Human values and individual needs are given priority in HRM, while personnel management gives emphasis on efficient administration.
5. HRM is an integrated approach accommodating all the aspects of acquisition, development, motivating and maintenance of human resources, where as personnel management is primarily concerned with recruitment, selection, and administration of manpower.

Outcomes of HRM
Quality of Work Life(QWL):
QWL refers to the quality of relationship between employees and the total working environment of the organization . QWL can be defined as the extent to which members of an organization are able to satisfy personal needs through organizational process. Thus QWL concentrates on creating a working environment that is conductive to the satisfaction of worker needs. Thus QWL concentrates on creating of working environment that is suitable and gives satisfaction to the workers. Barry A. Stein provides us with following five procedures or policies, that makes the work less routine and more rewarding for the employee.

a) Autonomy/ Freedom: It deals with the amount of freedom that employee can exercise in their job.

b) Recognition: It involves being valued by others in the company. An employee's contribution to the organization is noticed and appreciated.

c) Belonging: It refers to being part of the organization. An individual who belongs to an organization is one who shares the organization’s values and is regarded as being valuable part of the firm.

d) Progress and Development: Progress and development refer to the internal reward available from the organization, challenge, and accomplishment.
e) External Reward: External rewards are usually in the form of salary and benefits but also include promotion and status.Personnel and Human Resource Management (HRM)
HRM is the modern term for what has traditionally been referred to as personnel administration or personnel management. HRM is the term increasingly used to refer  to the philosophy, policies, procedures, and practices related to the management of people in the organization. Some view personnel management or perhaps modern personnel management means the same thing. Change in terminology reflects the increased significance associated with the management of people in organization as well as border prospective from which the field is currently viewed. One should clearly understand that HRM is not only personnel mgmt. rather it is only the part of HRM. In the past personnel management had a strong functional focus, that is personnel specialists were primarily concerned with the administration of specific employee related function such as living, training, wage setting and disciplinary action. HRM is emerged out of personnel functions, and personnel mgmt. can not be isolated from HRM.

The difference between HRM and personnel management are as follows:
1. HRM is primarily a philosophy, policies, procedures and practices related to the management of people while personnel mgmt is a functional area and function.
2. HRM must remain at the center of management. It is concern of all managers from top to button in an organization, while personnel mgmt is mainly the concern of personnel managers.
3. HRM makes effort primarily to satiety the human needs of the people at work which motivates the people to make their best contribution for the achievement of organization goals and objectives, while personnel management maintains rules, principles and legal provisions in maintaining the people.
4. Human values and individual needs are given priority in HRM, while personnel management gives emphasis on efficient administration.
5. HRM is an integrated approach accommodating all the aspects of acquisition, development, motivating and maintenance of human resources, where as personnel management is primarily concerned with recruitment, selection, and administration of manpower.

Outcomes of HRM
Quality of Work Life(QWL):
QWL refers to the quality of relationship between employees and the total working environment of the organization . QWL can be defined as the extent to which members of an organization are able to satisfy personal needs through organizational process. Thus QWL concentrates on creating a working environment that is conductive to the satisfaction of worker needs. Thus QWL concentrates on creating of working environment that is suitable and gives satisfaction to the workers. Barry A. Stein provides us with following five procedures or policies, that makes the work less routine and more rewarding for the employee.

a) Autonomy/ Freedom: It deals with the amount of freedom that employee can exercise in their job.

b) Recognition: It involves being valued by others in the company. An employee's contribution to the organization is noticed and appreciated.

c) Belonging: It refers to being part of the organization. An individual who belongs to an organization is one who shares the organization’s values and is regarded as being valuable part of the firm.

d) Progress and Development: Progress and development refer to the internal reward available from the organization, challenge, and accomplishment.

e) External Reward: External rewards are usually in the form of salary and benefits but also include promotion and status.