Chapter 1Introduction to Human Resource Management

After reading this chapter, you should be able to:Understand the meaning of human resources. Define the objectives, scope and functions of Human Resource Management. Differentiate between Human Resource Management (HRM) and Personnel Management (PM). Enumerate the qualities of HR managers.Discuss the future role of Human Resource Management.

Human resources: Meaning Human resources means the collection of people and their characteristics at work. These are distinct and unique to an organization in several ways.

Why and how human resources (HR) are superior to physical resources HR alone appreciates over a period. HR can produce an output larger than its actual input. HR provide utility value to all other assets. Operational flexibility is possible with HR.

Human resource management: Definition Human resource management is concerned with policies and practices that ensure the best use of the human resources for fulfilling the organizational and individual goals.-Edwin B. Flippo

What is HRM?Human Resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational, and social objectives are accomplished.

Objectives of HRMTo act as a liaison between the top management and the employees.To arrange and maintain adequate manpower inventoryTo devise employee benefit schemesTo ensure and enhance the quality of work lifeTo offer training To help keep up ethical values and behaviour amongst employees both within and outside the organization.To maintain high morale and good human relations within the organization.

Functions of human resource management

Managerial FunctionsPlanningOrganising

Managerial FunctionsStaffingDirectingControlling

Operative functions of HRM

Scope of human resource management Personnel or labour aspect deals with HR planning, recruitment, selection, placement, training and development, remuneration, etc.Welfare aspect deals with working conditions and amenities such as canteen, rest-rooms, housing, transport, medical assistance, education, health and safety, etc.

Scope of human resource management (contd.)Industrial relations aspect deals with unionmanagement relations like collective bargaining, grievance and disciplinary actions, etc.

Difference between HRM and PM HRM is proactive in nature while PM is reactive. HRM is a resource-centred activity whereas PM is a employee-centred activity. HRM emphasizes on flexible, open-ended contracts but PM emphasizes the strict observance of defined rules, procedures and contracts.

Difference between HRM and PM (contd.) HRM views better performance as a cause of job satisfaction whereas PM considers job satisfaction as a source of better performance. HRM seeks to develop the competencies of the employees on a sustained basis while PM is a regular, status quobased administrative function.

Qualities of an HR manager Knowledge Intelligence Communication skills Objectivity and fairness Leadership and motivational qualities Emotional maturity and Empathy

The future role of HRM Change in the nature of work.Widening scope of HR activities.Greater emphasis on HRIS.Change in labour market conditions. Increasing importance of high performance work systems (HPWS). Growing need for measurement tools to evaluate HR programmes.