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Human Resource management


Human Resource Manager plays a vital role in the modern organization. ... experienced HR managers assume line responsibility for HR matters. ... store, manipulate ... – PowerPoint PPT presentation

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Title: Human Resource management

Human Resource management

- I. Arul Edison Anthony Raj, MBA, M.Phil.,
PGDIB, ADHRM(UK). Assistant Professor E.G.S.
Pillay Engineering College, Nagapattinam.
  • Human Resource Management (HRM) is the
    utilization of a firms human resources to
    achieve organizational objectives.
  • HRM is the most happening function as of now.
    This is so because people offer competitive
    advantage to a firm managing people is the
    domain of HRM.
  • HRM is a broad concept. Personnel Management (PM)
    Human Resource Development (HRD) are a part of

Meaning of HRM
  • Human Resource Management means employing people,
    developing their resource utilizing, maintaining
    and compensating their services in tune with the
    job and organizational requirements with a view
    to contribute to the goals of the organization,
    individual and the society.

Definition of HRM
  • According to Pulapa Subba Rao define, human
    resource management (HRM) is a managing
    (planning, organizing, directing controlling)
    the functions of employing, developing,
    compensating the utilizing human resources,
    resulting in the creation and development of
    human and industrial relations which would shape
    the future policies and practices of human
    resource management, with a view to contribute
    proportionately to the organizational, individual
    and social goals.

Evolution and Growth of HRM
  • The history of development of HR management in
    India is comparatively of recent origin.
  • But Kautilya had dealt with some of the
    important aspects of HRM in his Arthasastra,
    written in 400 B.C.
  • Government in those days adapted the techniques
    of HRM as suggested by Kautilya.
  • In its modern sense, it has development only
    since independence.

  • Though the importance of labour officers was
    recognized as early as 1929, the appointment of
    officers to solve labour welfare problems
    gained momentum only after the enactment of
    Factories Act of 1948.
  • Under Section 49 of the Act required the
    appointment of Welfare Officers in companies
    employing more than 500 workers.

  • At the beginning, Government was concerned only
    with limited aspects of labour welfare. The
    earliest labour legislation in India dealt with
    certain aspects of Indian Labourers (Regulation
    of Recruitment, Forwarding and Employment) sent
    to various British colonies in 1830s.

Functions of HRM
  • Functions of HRM
  • Managerial Functions Operative Functions
  • Planning Staffing / Employment
  • Organizing Human Resources
  • Directing Development
  • Controlling Compensation Benefits
  • Safety and Health
  • Employee Labour Relations
  • Recent Trends in HRM

  • Managerial Functions
  • Planning (It is a predetermined course of
    action), in involves planning of human resources,
    requirements, recruitment, selection, training
  • Organizing (It is essential to carry out the
    determined course of action).
  • Directing The next logical function after
    completing planning and organizing is the
    execution of the plan.
  • Controlling After planning, organizing
    directing various activities of Personnel

  • Operative Functions
  • Staffing/Employment The process through which an
    organization ensures that it always has the
    proper number of employees with the appropriate
    skills in the right jobs at the right time to
    achieve the organizations objective.
  • Job Analysis
  • Human Resource Planning
  • Recruitment
  • Selection
  • Placement
  • Induction and Orientation

  • Human Resources Development A major HRM
    functions that consists not only of TD but also
    individual career planning and development
    activities and performance appraisal.
  • Performance Appraisal
  • Training Development
  • Management Development
  • Career Planning Development
  • Internal Mobility (It consists of transfer,
    promotion demotion)
  • Retention Retrenchment Management
  • Change and Organization Development.

  • Compensation and Benefits It is the process of
    providing adequate, equitable and fair
    remuneration to the employees.
  • Job Evaluation
  • Wages and Salary
  • Incentives
  • Bonus
  • Fringe Benefits
  • Social Security Measures (Non financial rewards)

  • Safety and Health Safety involves protecting
    from injuries caused by work related accidents.
    Health refers to the employees freedom from
    physical or emotional illness.

  • Employee and Labour Relations Practicing
    various human resources policies and programmes
    like employment, development and compensation and
    interaction among employees create a sense of
    relationship between the individual worker and
    management, among workers and trade unions and
    the management.

  • Recent Trends in HRM Human Resources Management
    has been advancing at a fast rate. The recent
    trends in HRM includes
  • Quality of work life
  • Total quality in human resources
  • HR accounting, audit and research and
  • Recent techniques of HRM

Objectives of HRM
  • The societal objectives of HRM seek to ensure
    that the organization becomes socially
  • The organizational objectives make sure that HRM
    is not a standalone department, but rather a
    means to assist the organization reach its
    primary objectives.
  • Functional objectives remind the HRM that it has
    only functional value and should not become too
    expensive at the cost of the organization it
  • Personal objectives assist employees in achieving
    their personal goals.

Human Resource Manager
  • An individual who normally acts in an advisory or
    staff capacity, working with other managers
    regarding human resource matters.
  • The human resource manager was primarily
    responsible for coordinating the management of
    human resources to help the organization achieve
    its goals.

Line Manager
  • Individuals directly involved in accomplishing
    the primary purpose of the organization.
  • There was a shared responsibility between line
    manager HR professionals.
  • Often the line manager goes to HR for guidance in
    topics such as promotion, hiring, discipline, or
  • Line managers often perform many of the staffing
    functions previously accomplished by HR, such as
  • Line manager must know how to deal effectively
    with the union.

Role of HR Manager
  • Human Resource Manager plays a vital role in the
    modern organization. He plays various strategic
    roles at different levels in the organization.
  • The role of the HR manager includes
  • The Conscience Role
  • The Counselor
  • The Mediator
  • The Spokesman
  • The Problem-solver
  • The Change Agent

  • The HR managers must exercise control very
    tactfully in order to win the confidence and
    co-operation of all line managers
  • They have to persuade line managers to work with
    staff specialists and not against them.
  • The authority of the HR manager should derive
    from concrete HR policies programmes and from
    the advantages and results of accepted
    specialized knowledge.

  • As a Source of Help In certain situations (when
    line managers lack skill or knowledge in dealing
    with employee problems), experienced HR managers
    assume line responsibility for HR matters.

  • As a Change Agent HR Manager should work as an
    enabler and change agent regarding HR areas and
    he should be familiar with different disciplines
    like management, technology, sociology,
    psychology and organizational behavior as
    organizational adaptability, viability
    development are dependent on human resource

Qualifications and Qualities of HR Manager
  • The functions of HR management vary from org., to
    org., both in nature degree. So the
    qualifications required of a HR manager differ
    from org., to org., depending on its nature,
    size, location etc.

  • Intelligence this includes skills to
    communicate, articulate, moderate, understand,
    tact in dealing with people intelligently, etc.
  • Educational Skills HR manager should possess
    learning teaching skill as he has to learn and
    teach employees about org., growth.
  • Discriminating Skills He should have the ability
    to discriminate between right and wrong.

  • Executing Skills He / She is expected to execute
    the managements decisions regarding personnel
    issues with speed, accuracy and objectivity.
  • Experience and Training Previous experience is
    undoubtedly and advantage provided the experience
    was in an appropriate environment and in the same

  • Professional Attitudes Finally, professional
    attitude is more necessary particularly in the
    Indian context.
  • Qualification Qualifications prescribed for the
    post of HR manager vary from industry to industry
    and from State to State. However, the
    qualification prescribed by various org., include
    MBA with HRM Specialization, M.H.R.M,
    M.A.(IRPM), M.P.M P.G.D.P.M.

Computer applications in HRM
  • Computer technology enables organizations to
    combine human resource information into a single
    database. This database is often referred to as a
    human resource information system (HRIS)

Human Resource Information System (HRIS)
  • A human resource information system (HRIS) is an
    integrated system designed to provide information
    used in HR decision making.

Definition for HRIS
  • An HRIS may be defined as the system used to
    acquire, store, manipulate, analyze, retrieve,
    and distribute pertinent information regarding
    and organizations human resource.

Why does an Org., need HRIS?
  • An org., grow in size, the maintenance use of
    emp., information becomes more more difficult.
  • A second reason for the increase in HRISs is the
    rapid reduction in the cost of computing.
  • A third reason for the growth in HRISs is the
    need to produce reports monitor information on
    employees in order to comply with legal
  • Finally, as competition has increased, org., have
    realized that managing their human resource is an
    important as managing their financial raw
    material resources.

Objective of HRIS
  • To acquire, store, manipulate, analyze, retrieve,
    and distribute the information of human resource.
  • To facilitate HR decision-making in the following
  • Man-power planning
  • Recruitment selection
  • Employment, including promotion, transfer, etc.
  • Education training
  • To provide relevant information on employees to
    government agencies as part of the legal

Uses of HRIS
Problems in developing an HRIS
  • HRIS may be expensive
  • Threatening inconvenient to those who are not
    comfortable with computers.
  • Employee privacy

Computer application in HRM
  • Computer applications in strategic HRM an HR
  • Computer application in Job Analysis
  • Computer application in Recruitment
  • Computer application in Selection.
  • Computer application in HRD Career Planning

  • Computer application in Performance Appraisal
  • Computer application in Compensation Benefits
  • Computer application in Health Safety
  • Computer application in Labour Relations
  • Future applications of Computer in HRM

Human Resource Accounting
  • Human resource accounting is the process of
    identifying and measuring data about human
    resources and communicating this information of
    interested parties.
  • It deals with investments in people and with
    economic results of those investments.

Definition for HR Accounting
  • According to Stephen Knauf defined HRA as the
    measurement and quantification of human
    organizational inputs, such as recruiting,
    training, experience and commitment.
  • Eric Flamholtz explained human resource
    accounting as accounting for people as
    organization resources. It is the measurement of
    the cost and value of people for the organization.

Human Resource Audit
  • An audit is a review and verification of
    completed transactions to see whether they
    represent a true state of affairs of the business
    or not.
  • Human Resource (HR) Audit refers to an
    examination evaluation of policies, procedures
    practices to determine the effectiveness and
    efficiency of HRM.