AMET UNIVERSITY

HUMAN RESOURCE MANAGEMENT

(LECTURE NOTES OF DR. B. MADHAVAN)
UNIT- I
Definition: Brech: HRM is that part of management which is primarily concerned with the
human rconstituents of an organization.
Flippo: HRM is concerned with the procurement, development, compensation, integration and
maintenance of Human Resources in an organization towards accomplishment of organization
goals. Therefore, HRM is the planning, organizing, directing and controlling of the performance
of those operative functions.
Definition of National Institute of P.M (NIPM): is that part of management which is primarily
concerned with human relationships in an organization.
Some basic concepts: (Scope).

HRM involves managing people at all levels in organizations

Both as individuals and groups
Both formal and informal relationships
Developing people
Not only controlling them
Certainly not manipulating them
Handling human beings is perhaps the most difficult job calling for special training.
Handling people is continuous in nature. What the organization has done to the people
yesterday will affect the performance and relationships today and tomorrow.
HRM aims at obtaining willing co-operation of the people.
Subject is bound by many conventions, codes and ethics
Very strictly bound by laws.
The subject calls for intellectual approach and emotional approach.

Importance of HRM -- Some general points

It is admitted universally that the human factor is the most vital and complex to handle.
Therefore, proper study of the subject is necessary.
People are rational and reasonable but not always. Only a professionally qualified person
will be able to tackle both the situations.
Understanding people is a rare science and art. Therefore an organized study is a must.
People are individually different in their abilities, ambitions, background, etc.
People behave differently as individuals and as groups.
The human element has negative potential also means if they are not treated well they can
damage the organization.
On the other hand if they are treated well they can give performance which is far more than
proportionate to the inputs given to them. This concept is known as Output more than
proportionate to the input. Only human beings are capable of this.

Importance of HRM to the organization

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 There has to be a specialized department to deal with human functions. Otherwise the
remaining departments will pull the human functions in different directions
Only a full scale Human Resources department can make proper policies and implement them
also
Bridge between management and workers
Spokesman of the organization to the outside world
The liaison function with all agencies like district administration, public, judicial authorities,
police, etc. particularly with the government.
Handling people who carry sensitive information is a very specialized job. Otherwise the
organization would suffer.
The HR Dept. is the custodian of many secrets and confidential information about people and
the orgn.
The HR Dept. is also a great co-coordinator many aspects of day today Orgnl/ matters
Qualities of a Human Resources Manager

Basic Intelligence
All the qualities of a regular manager (plan, coordinate, control, delegate)
Sound professional knowledge on operative functions and practical skills to implement them
Basic desire and happiness to deal with people
Basic honesty of purpose
Good interpersonal skills ability to build bridges, co-ordinate and liaise.
Ability to handle sensitive information and emotions
Analytical and yet sympathetic
Empathy (ability to understand others points of view)
Pleasing manners and approachable personality
Problem solving attitude
He should be fair and appear to be fair.

Obstacles or Impediments for Human Resources Management

Generally there is a belief amongst many technical executives that Human Resources
management is a common sense subject and any body can handle that. If the recognition for
the specialized skills and attitudes of HRM is low, then the effectiveness of Human
Resources management comes down.
Feudal approach of some organizations not professional approach
Too much of regulations from government and too many laws
Problems of the unions
Multi unions and rival unions within the same organization
External leadership for unions
Political affiliations of unions
Absence of a national level regulatory body for Human Resources managers. NIPM is only
an affiliatory body.
Many organizations do not strictly follow the qualification and experience requirements while
recruiting HR Manage.
The work force is heterogeneous divided by regions, language, etc.
Emotional type of reactions
Non-development of one industry one union culture.
Functions of Human Resources Management

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Managerial functions like planning, organizing, controlling, etc.

Operative functions specialized functions of HRM like recruitment, selection, performance
appraisal, etc.

NIPM classification
1) Human Resources function (matters of individuals, policy matters, factual problems)
2) industrial relations (matters of group represented by union, collective problems,
emotional problems)
3) welfare (township, schooling, canteens, hospitals, transport, perquisites and all advances
and allowances)
4) general administration (discipline, handling of grievances, public relations, coordination
with state legal and police authorities, estate protection, etc.)
5) Maintenance of records
6) Audits and research
7) Human resource development.
Detailed list of Operative functions

Human Resources policies, objectives and laying down rules and regulations
Manpower planning
1) preparation of job analysis, job description and job specification
2) plan for wastage and shift requirements
3) plan for recruitment lead time
4) balance it against plant requirements
5) divide the total manpower required into various grades and pay scales provide for
career planning also.
Recruitment, selection and placement: This is the actual job of procuring people and placing
them in position. Familiarizing them with the organization is also to be done.
Performance appraisal
1) lay down proper norms for evaluation
2) introduce proper policies
3) proper formats
4) safe keep of appraisal records
Wage and salary administration/compensation administration
1) fix pay scales according to the job requirements
2) make sure they are comparable with similar organizations.
3) Have a policy on overtime and incentives
4) Have a plan for periodical wage revisions
Training and development
1) plan for workers and officers separately as per requirements
2) formulate new packages for training based on specific requirements
3) have plans for training the efficient people as well as the inefficient people
Promotion and transfers: Policies should be framed to encourage the individual and also to
benefit the organization
1) merit should be recognized without letting down people who have served long
2) while transferring the individuals problems should not be overlooked.
Discipline
1) To establish an efficient mechanism
2) To detect deviations in performance or behavior and deal with them effectively.
Grievances
1) There should be a healthy system under which a workman who is genuinely affected can
approach the management and set it right

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Industrial relations to provide healthy relationship between management and workers

Welfare administration
General administration
Relationship with neighbouring community
Termination management refers to termination of employer, employee relationships on
account of death, resignation, dismissal etc. Here the Human Resources function will have to
effect settlement of accounts also
Safety administration to constantly review working conditions, rest pauses, safety practices,
sickness patterns and make proper schemes.
Implementation of social security implementing of schemes like P.F., Gratuity, pension,
etc.
Legal administration to handle legal matters initiated by the company and against the
company
Public relations

OBJECTIVES OF HUMAN RESOURCES MANAGEMENT

Core Objectives

Towards the organization

to secure and maintain for the organisation, human resources capable of performing the
organization objective.
To secure effectively and economically, the integration of organizational growth and
goals of the Human Resources in the organization.
Towards people to provide maximum development of Human resources by giving full
opportunity and support.
Towards society To preserve and advance the welfare of the society along with pursuit of
organization goals.
Towards the profession To maintain highest standards of professional conduct.

Collateral Objectives

Uphold the importance of human beings in an organization

Provide job security and a safe atmosphere to work
Provide interesting work
Safe and healthy working conditions
Optimum work load and commensurate wages
Build liaison and links between management and labour
Encourage good leadership on both sides
Encourage healthy traditions and promote good culture
Take care of the stability of the organization
To promote loyalty and commitment of the people to the organization
Maximise wealth of the organization and distribute it to everyone
Bring Human Resources Management on par with any other function in the organization

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