Chapter 1 - Human Resource Management

Key Points Evolution

Kautilyas Arthshastra 4th Century BC, 1929 Royal Commission on Labour Set 1931 Labour Welfare officers to be appointed 1948 Factories Act 1950 2 professional Bodies (IIPM & NILM) 1951 Plantations Labour Act 1952 Mines Act 1970 Professionalism Increased 1980 Two bodies got merged 1990 ASPA & SHRM

Evolution of HRM in India

Period Development Status Outlook Emphasis Statutory, welfare, paternalism Introduction of techniques Regulatory, confirming, imposition of standards on other functions Human values, productive through people Status

1920s 1930s

Beginning

Pragmatism of capitalists Technical, legalistic

Clerical

1940s 1960s

Struggling for recognition

Administration

1970s 1980s

Achieving sophistication

Professional, legalistic, impersonal

Managerial

1990s

Promising

Philosophical

Executive

Current Status
In 1990s, the emphasis shifted to human values and

productivity through people. Reflecting this trend, the American Society for Personnel Administration (ASPA)

was renamed as the Society for Human Resource

Management (SHRM). Thus beginning in the 1920s the subject of HRM has grown into matured profession.

Scope of HRM
Nature of HRM Prospects of HRM Employee Hiring

HRM
Industrial Relations

Employee & Executive Remuneratio n

Employee Maintenance

Employee Motivation

Objectives of HRM
Societal Objectives

Organisational Objectives

Functional Objectives

Personal Objectives

HRM Objectives Linked to Functions

HRM Objectives
1. Societal Objectives 1. 2. 3.

Supporting Functions
Legal compliance Benefits Union Management Relations

2. Organisational Objectives

1. 2. 3. 4. 5. 6. 7.
1. 2. 3. 1. 2. 3. 4. 5.

Human Resource Planning Employee Relations Selection Training & Development Appraisal Placement Assessment
Appraisal Placement Assessment Training & Development Appraisal Placement Compensation Assessment

3. Functional Objectives

4. Personal Objectives

HRM Functions
MANAGERIA L FUNCTIONS PLANNING ORGANISIN G DIRECTING CONTROLLIN G

OPERATIVE FUNCTION

Acquisitio n

Appraisal Developmen & Integration/ t Compensa Maintenance tion

IR

HR Planning Recruitme nt Selection Placement Induction

HRD System Training Manageme nt Developme nt Organisatio nal Developme nt

Performan ce Appraisal Base Compens ation Incentives Benefits

Motivation Empowermen t Participation Communicati on HR Mobility Safety & Health Stress Management

IR System Discipline Grievanc e Redressa l Manage ment of Disputes

HR Information System

Role of HR Manager
Personnel Role
(a) Advisory advising management on effective use of HR

Welfare Role
(a) Research in Personnel & Organisational Problems (b) Managing Services canteens, grain shops, transport co-operatives, creches, etc

Administrative Role

Fire Fighting Legal Role

(a) Grievance Handling

(a) Time Keeping

(b) Manpower planning, Recruitment, Selection etc

(c) Training & Development of line men (d) Measurement and assessment of individual and group behaviour

(b) Salary & wage administration incentives

(b) Settlement of Disputes

(c) Handling disciplinary actions (d) Collective Bargaining (e) Joint Consultation

(c) Maintenance of (c) Group Dynamics records Group Counseling, motivation, (d) Human leadership, Engineering Man communication etc Machine Relationship

DISTINCTION BETWEEN HRM & PM

PERSONNEL MANAGEMENT
Employment Contract

HUMAN RESOURCE MANAGMENT

Aim to go beyond the contracts It is the concern of all the managers from top to bottom in an organisation It is an integrated approach accommodating all aspects of developing, managing, motivating and satisfying human resources. People are motivated by the challenges and opportunities for creativity and development

Careful description of written contracts

It is concerned with the Personnel Responsibility Manager, for Personnel Matters It looks after administration and management of people in an organisation People in organisation are motivated mainly by salary and rewards

Approach

Motivation

Managerial Task

Monitoring is the task for the managers

Nurturing is the responsibility of all managers

DISTINCTION BETWEEN HRM & PM

PERSONNEL MANAGEMENT
Communicatio n Pay

HUMAN RESOURCE MANAGMENT

Direct Performance Based

Indirect Job evaluatoin (Fixed Grades)

Conflict Handling Training & Development

Issues were handled as they were experiences

Learning controlled to the extent of courses

Managing and controlling of the culture of the organisation is the motive.

Opportunity given to learn the company People are treated as assets to be used for the benefit of an organisation, its employees and the society as a whole. Latest in the evolution of the subject

Respect for Employees

Labour is treated as tool which is expendable and replaceable

Evolution

Precedes HRM

 Define HRM. Explain the various functions of

HRM

Descriptive Questions

Define HRM. Differentiate between Personnel

Management & HRM. (2 Times)

Define the term HRM with its evolution and

importance
Define the nature, objectives and scope of HRM

(7 Marks)
Define HRM and explain the duties and

responsibilities of HR Manager in changing