In this lecture of human resource management, students will be briefed about the Concept, functions, and environmental factors of HR Management.

1. HRM function, HRD concept and
Environmental factors of HRM
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2. Functions of HRM
 The functions of HRM can be divided into following categories:
i. Managerial Functions
ii. Operative Functions
iii. Advisory functions.
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3. Managerial Functions
The Human Resource Manager is a part of the organizational
management. So he must perform the basic managerial functions in
relation to his department.
i. Planning
ii. Organizing
iii. Directing
iv. Controlling
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4. Operative Functions
 The operative functions are those tasks or duties which are specifically
entrusted to the human resource or personnel department
i. Job Analysis
ii. Staffing
iii. Training and Development
iv. Performance Appraisal
v. Career Planning
vi. Compensation and benefits
vii. Industrial and Labor Relations
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5. Advisory Functions
 Human resource manager has specialized education and training in
managing human resources.
 He is an expert in his area and so can give advise on matters relating to
human resources of the organization.
i. Advised to Top Management
ii. Advised to Departmental Heads
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6. Concept of HRD
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 Human Resource Development is a positive concept. It is based on the
belief that an investment in human beings is necessary and will invariably
bring in substantial benefits to the organization.
 It aims at overall development of the human resource in order to contribute
to the well being of the individual, organization and the society at large.

7. Concept of HRD
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 It is rooted in the belief that human beings have the potential to do better.
 It places a premium on the dignity and tremendous latent energy of people.
 Where balance sheets show people on the debit side, HRD seeks to show
them as assets on the credit side.

8. HRD – A Humanistic Concept
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• People can do better; they can do wonders.
• Involve them, trust them, empower them.
• Focus on their strengths & help them overcome their weaknesses.
• Integrate the needs & aspirations of individuals into the strategic goals of
the organization for better results.
• Encourage individual initiative.

9. Evolution of the Concept of HRD
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• The commodity concept – labour to be bought and sold, wages based
on demand and supply, no governmental protection to the labour
• The factor of production concept – like money, material, land etc.
Workers are like tools.
• The goodwill concept – welfare measures like safety, lunchroom, first-
aid etc. introduced

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• Humanitarian concept – physical, social and psychological needs of the
workers are met
• The human resource concept – most valuable assets; conscious effort by the
organization for their needs and aspirations to be satisfied
• The emerging concept – employees must be accepted as partners (decision-
making, empowerment); must be provided opportunities for growth & self-
fulfillment
• Paternalism – management assumes fatherly responsibilities & protective
attitude

11. Objectives of HRD
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1. The capabilities of each employee as an individual
2. The capabilities of each individual in relation to his or her present role
3. The capabilities of each employee in relation to his or her expected future
role(s)
4. The dyadic relationship between each employee and his employer. The
team spirit and functioning in every unit
5. Collaboration among different units of the organization
6. The organization's overall health and self-renewing capabilities

12. Characteristics of HRD
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It is a process by which the employees of an organization are helped to help
themselves.
1. HRD is a system with several interdependent parts (procurement,
appraisal, development).
2. It is a planned, systematic and continuous process of development.
4. It involves development of competencies at 4 levels – individual,
interpersonal, group and organizational levels.
5. HRD is an interdisciplinary concept, borrowing ideas, principles,
concepts and practices from psychology, anthropology, political science,
sociology, economics etc.
6. HRD improves quality of life by not only giving the employees
meaningful and challenging work but also by implementing various
employee welfare policies.

13. HRD as a Total System
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• Performance appraisal
• Potential appraisal
• Training & development
• Organization development
• Career planning
• Rewards
• Employee welfare & quality of work life
• Human resource information system

14. Performance & Potential Appraisal
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• Evaluating performance
• Performance targets are set.
• Actual performance is measured
objectively and accurately.
• Picture of current and past
performance through appropriate
methods
• Evaluating potential
• Latent talents are explored.
• Assessment of future roles that
can be assigned
• Picture of abilities to assume
challenging responsibilities
through appropriate methods

15. T & D and OD
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• Training is a learning experience
designed for permanent change in
individual that will improve his
abilities.
• Development is a future-oriented
training process focusing on the
personal growth of the employee.
• OD is a planned change effort on
an entire org or on a large
subsystem.
• Change agent is usually a third
party well versed in behavioral
sciences.
• The change agent studies the
psychological climate before
charting a course of action.

16. Career Planning & Rewards
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• A career is a sequence of positions
held by a person in the course of a
lifetime.
• CP does not guarantee success but
without it employees are rarely
able to encash various
opportunities that come their way.
• Intrinsic rewards come from the
job itself such as feeling of pride
and achievement.
• Extrinsic rewards are pay,
promotions, increments and
benefits.
• Rewards s
• hould have external, internal and
individual parity.

17. Environmental Factors of HRM
 Internal and external environmental influences play a major role in
HRM.
Internal Environment External Environment
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18. Internal
Environment
External
Environment
 Organization Culture
 Organization Environment
 Mission
 Policies
 Informal Organization
 Economic Environment
 Labour Market Conditions
 Labour Unions
 Demographic Trends and
Increasing Work-force
Diversity
 Technology
 Government
 Globalization
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19. Thank You!!
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