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“
▪ "You must treat your employees with respect
and dignity because in the most automated
factory in the world, you need the power of
human mind. That is what brings in innovation.
If you want high quality minds to work for you,
then you must protect the respect and dignity. "
-Mr N.R. Narayana Murthy
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3.
Understanding Human
Resource Management

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“
▪ Human: refers to the skilled workforce in an
organization
▪ Resource: refers to limited availability or scarce
▪ Management: refers how to optimize and make best
use of such limited or scarce resource so as to meet
the organization goals and objectives
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5.
“
▪ HRM is the process of bringing people and
organization together so that the goals of
each other are met.
▪ It is defined as an art of procuring,
developing and maintaining competent
workforce to achieve the goals of the
organization in an effective and efficient
way. 5

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“
▪ Human Resource Management as “planning,
organizing, directing, controlling of
procurement, development, compensation,
integration , maintenance and separation of
human resources to the end that individual,
organizational and social objectives are
achieved.”
-Edwin Flippo
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Nature of HRM

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consists of people-
related functions
necessitates alignment of HR policies and
practices with the organisation’s strategies
involves the application of
management principles and functions
assumes that it is the people
who make the difference
HR activities are not the sole
responsibility of the HR specialists
applicable to nonbusiness
organisations too

9.
Functions of HRM

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Managerial
Functions
Planning
organizing
Staffing
Direction
Controlling
Operative
Function
Procurement
Development
Compensation
Maintenance
Motivation
Integration

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Objectives of HRM

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Primary
Objective
to ensure the availability of a competent and willing work force to
an organisation
Societal
Objectives
To be ethically and socially responsible to the needs and
challenges of the society while minimising the negative impact of
such demands upon the organisation
Organisational
Objectives
To recognise the role of HRM in bringing about organisational
effectiveness
Functional
Objectives
To maintain the department’s contribution at a level appropriate to
the organisation’s needs
Personal
Objectives
To assist employees in achieving their personal goals, at least in so
far as these goals enhance the individual’s contribution to the
organisation

13.
Factors Influencing
HR Team Structure

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Size of
business
Nature of
Business
Philosophy
of Senior
Management
Global
Presence

15.
Personnel Policies
And Principles

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Policies
▪ a plan of action
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Policy of hiring people
with due respect to
factors
Policy on terms and
conditions of
employment
Policy with regard to
medical assistance
Policy regarding
housing, transport,
uniform and allowances
Policy regarding training
and development
Policy regarding
industrial relations

17.
Principles
▪ Principle is the fundamental truth established by research, investigation and
analysis
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Principle of
individual
development
Principle of
scientific selection
Principle of free
flow of
communication
Principle of
participation
Principle of fair
remuneration
Principle of
incentive
Principle of dignity
of labour
Principle of team
spirit to promote
co-operation
Principle of
contribution to
national prosperity

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Skills For HR
Professionals

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HR Competency Model

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HRM Models

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The fombrun, Tichy and Devanna Model
▪ It emphasizes
treating employees
as a means to
achieving the
organization’s
strategy
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The Harvard Model
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23.
The Guest Model
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The Warwick Model
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25.
The ulrich Model
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26.
Personnel Management
vs HRM

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BASIS FOR
COMPARISON
PERSONNEL MANAGEMENT
HUMAN RESOURCE
MANAGEMENT
Meaning
The aspect of management that is
concerned with the work force and
their relationship with the entity is
known as Personnel Management.
The branch of management that
focuses on the most effective use of
the manpower of an entity, to achieve
the organizational goals is known as
Human Resource Management.
Approach Traditional Modern
Treatment of
manpower
Machines or Tools Asset
Type of function Routine function Strategic function
Basis of Pay Job Evaluation Performance Evaluation
Management
Role
Transactional Transformational
Communication Indirect Direct
Labor
Management
Collective Bargaining Contracts Individual Contracts
Initiatives Piecemeal Integrated
Management
Actions
Procedure Business needs
Decision Making Slow Fast
Job Design Division of Labor Groups/Teams
Focus
Primarily on ordinary activities like
employee hiring, remunerating,
training, and harmony.
Treat manpower of the organization
as valued assets, to be valued, used
and preserved.
Father of
Personnel Management
Robert Owen
Father of Human
Resource Management
George Elton Mayo

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