HUMAN RESOURCE

MANAGEMENT

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HUMAN RESOURCE MANAGEMENT
Introduction

Many people find HRM to be a vague and elusive concept - not least
because it seems to have a variety of meanings. Pinning down an
acceptable definition can seem like trying to hit a moving target in a fog.
This confusion reflects the different interpretations found in articles and
books about human resource management. HRM is an elastic term. It
covers a range of applications that vary from book to book and from
organization to organization.
What is Human Resource Management ?
'A philosophy of people management based on the belief that human
resources are uniquely important in sustained business success. An
organization gains competitive advantage by using its people effectively,
drawing on their expertise and ingenuity to meet clearly defined
objectives. HRM is aimed at recruiting capable, flexible and committed
people, managing and rewarding their performance and developing key
competencies.'
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HUMAN RESOURCE MANAGEMENT

Edwin Flippo defines HRM :-

As “planning, organizing, directing and controlling of the
procurement, development, compensation, integration,
maintenance and separation of human resources to the end that
individual, organizational and societal objectives are achieved.”

Michael Armstrong defines HRM:-

HRM is a strategic approach to the acquisition, motivation,
development and management of the organizations human
resource. It is developed to shaping an appropriate corporate
culture and introducing programs which reflect and support the
core values of the enterprise and ensure its success.

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HUMAN RESOURCE MANAGEMENT
The Human Resources Management (HRM) function includes a variety of activities,
and key among them is deciding what staffing needs you have and whether to use
independent contractors or hire employees to fill these needs, recruiting and training
the best employees, ensuring they are high performers, dealing with performance
issues, and ensuring your personnel and management practices conform to various
regulations. Activities also include managing your approach to employee benefits
and compensation, employee records and personnel policies

 attract and retain talent

 train people for challenging roles
 develop skills and competencies
 promote team spirit
Good HR Practices help
 develop loyalty and commitment
 increase productivity and profits
 improve job satisfaction
 enhance standard of living
 generate employment opportunities

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HUMAN RESOURCE MANAGEMENT

Better Understanding of HRM

Can be possible by first understanding the following three critical

components of HRM:
1. The Work Organization: It is defined as a human grouping
through which work is done for achievement of specific goals or
mission.
2. People who manage: Managers or Supervisors, who function as
individuals responsible for managing the vital factors of money,
material, machinery and men (human resources)
3. People who work: Comprise large number of individuals of
different age, sex, socio-religious groups with varied literary levels.
Each individual herein again has different physical and
psychological traits influenced by both internal and external factors

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Michigan Model (Hard Model) of HRM
 Associated with the Michigan Business School (Fombrun, Tichy and
Devanna, 1984).
 There are many similarities with the Harvard 'map' but the
Michigan model has a harder, less humanistic edge, holding that
employees are resources in the same way as any other business
resource.
 They must be obtained as cheaply as possible, used sparingly, and
developed and exploited as much as possible.
 The Michigan model is also known as the 'matching model' or 'best-
fit' approach to human resource management.
 It requires that human resource strategies have a tight fit to the
overall strategies of the business.
 It limits the role of HR to a reactive, organizational function and
under-emphasizes the importance of societal and other external
factors.
 For example, it is difficult to see how the current concern for work
life balance could be integrated into this model.

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 Harvard Model of HRM

Harvard Business School generated one of the most influential

models of HRM. This model is also called the “Soft” model of HRM.
The Harvard interpretation sees employees as resources. However,
they are viewed as being fundamentally different from other
resources - they cannot be managed in the same way.
The stress is on people as human resources.
The Harvard approach recognizes an element of mutuality in all
businesses, a concept with parallels in Japanese people
management, as observed earlier. Employees are significant
stakeholders in an organization. They have their own needs and
concerns along with other groups such as shareholders and
customers. This model was developed by Beer et al, 1984; Guest,
1987; Poole, 1990.

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 Harvard Model of HRM
The Harvard Map or model outlines four HR policy areas:
 Human resource flows - recruitment, selection, placement,
promotion, appraisal and assessment, termination, etc.
 Reward systems - pay systems, motivation, etc.

 Employee influence - delegated levels of authority, responsibility,

power

 Work systems - definition/design of work and alignment of people.

Which in turn lead to the 'four C's' or HR policies that have to be
achieved:
 Commitment
 Congruence (Equivalence)
 Competence
 Cost effectiveness

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HUMAN RESOURCE MANAGEMENT

Importance of HRM:

Four basic functions:

Staffing

Training and Development

Motivation

Maintenance

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HUMAN RESOURCE MANAGEMENT

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 HUMAN RESOURCE MANAGEMENT
External Factors influencing HRM:
 Strategic Environment

 Governmental Legislation

 Labor Unions

 Management Thought

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 PERSONNEL MANAGEMENT Vs
HUMAN RESOURCE MANAGEMENT
Personnel Management deals with three aspects:
1. The Welfare aspect: Concerned with working conditions and amenities
2. The Labour/Personnel aspect: Concerned with recruitment and placement
of personnel, remuneration, promotion, incentives, achieving productivity
etc.
3. The Industrial Relations aspect: Concerned with trade union negotiations,
settlement of disputes, collective bargaining etc.
( As defined National Institute of Personnel Management)
Human Resource Management (HRM) deals with all the above aspects of
personnel management. Additionally it is also focused on the more core
issue of creating competent and productive “Human Resource”.
It further encompasses – Recruitment, Staffing, Performance and Potential
appraisal, Motivation, Succession planning, Training and Development

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 PERSONNEL MANAGEMENT Vs
HUMAN RESOURCE MANAGEMENT
 HRM is primarily a philosophy,  PM is a functional area and is an
an approach, an attitude and a independent function.
practice. It is fostered by Top Exclusively job of Personnel
management Manager
 Represent Humanization of  Represents managing personnel.
Management It is a part of HRM which
 Remains at centre of integrates personnel policies,
Management industrial relations and welfare
of employees
 Concerns all Managers from top
to bottom in an organization  It mainly concerns Personnel
manager with relation to
 It is an Integrated approach personnel administration and
accommodating all aspects of industrial relation problems
developing, managing,
motivating and satisfying human  PM looks after administration
resource and management of people

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 PERSONNEL MANAGEMENT Vs
HUMAN RESOURCE MANAGEMENT
 It concentrates more on  PM helps to maintain rules and
motivation, job satisfaction and regulations, principles and
boosting of morale policies in the organization
 HRM is more concerned with  PM gives priority to efficient
working with people, team administration and labour
building and team work relations management
 In HRM, human beings are  In PM, employees are considered
considered as Resources. Priority as Workmen or Personnel
is for human values and
individual needs to be satisfied  In PM, manpower is understood
and further competencies to be already competent and
developed developed

 Training and Development is an

integral part

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 PERSONNEL MANAGEMENT Vs
HUMAN RESOURCE MANAGEMENT
 In HRM all managers are trained  Job is of handling personnel and
to adopt a Human Resource labour relations only
philosophy
 Main aspect is maintaining
 Counseling, Career planning and records, enforce rules, manage
Development are critical labour relations, handle
activities grievances and overall manage
 HR managers act as Catalyst, administration
Change agent, Counselors,  They act only as Personnel
Leaders etc and are the spirit Administrators
behind every activity
 Personnel Managers are Staff
 HR managers are Line managers Managers
involved in policy formulation
and strategy implementation  Personnel Management
preserves information and
 Communication is vertical, lateral maintains secrecy of information
and relies heavily on feedback

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Line and Staff Aspects of HRM
 Line manager
 A manager who is authorized to direct the work of

subordinates and is responsible for accomplishing the

organization’s tasks.
 Staff manager
 A manager who assists and advises line managers.

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Structure of Human Resource Department
Board of Directors

Managing Director

Vice President
/General Manager (HR)

Training
Recruitment Manager
& Development Manager

Performance Appraisal
Personnel Manager
Manager

Welfare and Safety Industrial Relations

Manager Manager

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Role of a Human Resource Manager
The role of human resource managers has changed in today’s
Business Context. It is evolving with the change in competitive
market environment and the realization that Human Resource
Management must play a more strategic role in the success of an
organization
Reasons for changing role of Human Resource Manager:
 HRM jobs today require a new level of sophistication.
 Employment legislation has placed new requirements on
employers.
 Jobs have become more technical and skilled.
 Traditional job boundaries have become blurred with the advent
of such things as project teams and telecommuting.
 Global competition has increased demands for productivity.

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Duties of a Human Resource Manager
Human Resource Manager now has to address following
challenges :
Performing role of Line Manager for HR Deptt. And Staff
Manager for other departments
Framing of HR policies in consultation with Top
Management
Handling and managing challenges of Work Force Diversity
 Recruiting, developing and managing an innovative and
competent employee resource pool
Maintaining workable relationship between employees
based on position, responsibility and authority
Integration of Individual and group goals with
organizational goal to achieve sense of involvement,
commitment and loyalty

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Duties of a Human Resource Manager
Human Resource Manager now has to address following
challenges :
Career Planning and Succession Planning
Managing and enhancing competent Appraisal Management
programmes
 Adoption of Motivational programmes for enhancing
employee productivity
Strategic Planning to meet future challenges
Creating effective communication system
Training and developing the HR talent pool
Putting in place fair and competitive Performance
monitoring and Reward system
Employee Counseling
Handling all personnel and industrial relation activities

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 Strategic Role Of HRM

HRM must in current scenario be

 a strategic business partner and represent

employees.
 forward-thinking, support the business
strategy, and assist the organization in
maintaining competitive advantage.
 concerned with the total cost of its function and

for determining value added to the organization.

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 Suggested References

 Handbook of Human Resource Management by Michael Armstrong

 Human Resource Management by Bohlander & Snell
 Human Resource Management by Gary Dessler
 Human Resource Management by K. Ashwathappa
 Personnel Management, by C.B. Mamoria
 Human Resource Management in a Business Context, by Alan
Price
 Managing Human Resources: Personnel Management in
Transition, by Stephen Bach
 Managing Human Assets by Michael Beer, Richard E. Walton,
Bert A. Spector

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