Human Resource

Human resources are those people who have energy and physical strength with competencies.

Competencies consist of knowledge, skill, attitude and potential for growth.

Human Resource is the most important resource of an organization and is only active resource which makes another resource utilize actively.


Management is the process consisting of planning, organizing, directing, controlling and other different functions of organization that are used to achieved organizational goals in effective and efficient manner.


Human Resource is concerned with the “people” dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to high levels of performance and ensuring that they continue to maintain their commitment to the organization which are essential to achieving organizational objectives.

Acquisition includes estimating of demand and supply of labor.

  • Man Power Planning: Determination of current and future workforce requirement.
  • Recruitment: Identifying the sources of workforce and stimulating them to apply for vacant post.
  • Selection: Making choice of the right workforce.
  • Placement: Assignment of job on the basis of skill.
  • Socialization of workforce: Knowing about organizational culture, tradition, and working environment.

Development ensures the required competencies of the workforce to perform assigned task efficiently.

  • Analyzing Developmental Needs
  • Employee Training 
  • Management Development 
  • Carrier Development 

Utilization/Motivation function begins with the recognition that individuals are unique and that motivation techniques must reflect that needs of each individual

  • Job Satisfaction
  • Performance Appraisal
  • Behavioral & Structural Techniques
  • Rewards according to performance
  • Compensation & Benefit

Maintenance ensures retaining productive employees in the organization for a long time.

  • Better Working Condition
  • Better working environment
  • Health, Safety & Comfort.

DeCenzo and Robbins:

“Human resource management is concerned with the people dimension in management.”

Mathis and Jackson:

“Human resource management is the strategic and operational management of activities focusing on the human resources in an organization.”


“HRM can be defined as consisting of the following elements: traditional personnel administration (staffing, rewarding, work design); personnel development; a specific management philosophy that values labor as the major asset of an organization and that regards human beings as begin able and willing to grow and develop; and the integration of the personnel function into strategic management.”


Regarding people as the most valuable resource.

An important function of management.

Involving all managerial personnel.

Including all operational personnel.

Including all operational activities (selection, development, motivation and maintenance)

Integrating business strategy and operational activities

Seeking to achieve a competitive advantages.

HRM System

HRM Characteristics

  • Element of management function
  • Emphasize on manpower
  • Dynamic activity
  • Pervasive function
  • Continuous function
  • System oriented
  • Focus on organizational strategy
  • Social process
  • Integration of mutual interest
  • Essential in all organization

HRM Objectives

  • Manage staff effectively
  • Utilization of physical resource
  • Increase productivity
  • Focus on goal achievement
  • Helps to solve problem
  • Job satisfaction
  • Self development of workers
  • Goal integration
  • Maintain quality of work life
  • Adaptation with change

HRM Functions/Area

  • Job analysis
  • Human resource planning
  • Recruitment and selection
  • Training and development
  • Performance appraisal
  • Compensation and benefits
  • Health and safety
  • Industrial relations and collective bargaining

HRM Scope

  1. All corporate decisions affect the nature of the relationship between the organization and its employees, that is, its human resources. Thus, there is a need to see the impact of management decisions on HR management to understand the HRM concept.
  2. HRM provides a new perspective for understanding employment relations and the contribution of people.
  3. The central focus of HRM is on performance, which is influenced by the firm’s HR functions-selection, appraisal, rewards and development activities to achieve the corporate strategy.
  4. It covers the area that promotes mutuality- mutual goals, mutual influence, mutual respect, mutual rewards, mutual responsibility.
  5. It focus on the goals of integration, of employee commitment flexibility/adaptability and quality.
  6. As distinct from traditional personnel management, it emphasizes the development of management teams, integrating HR activities under the responsibility of the line managers and greater ‘bottom line approach.’
  7. It accepts the key role of line management in the implementation of HR activities.\
  8. It supports employee relations at the firm level – team working, flexible working practices, direct communication and quality programs.
  9. Human responses are an integral part of business strategies.
  10. HRM offers the mechanism for integration, such as:
    1. The use of planning.
    2. A coherent approach to the design and management of personnel systems based on an employment policy and manpower strategy and often underpinned by a philosophy.
    3. Matching HRM activities and policies to some explicit business strategy.
    4. Seeing the people of the organization as a ‘strategic resource’ for achieving a ‘competitive advantage.’

HRM Outcomes

Personal Management

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with human resource of organization.”

  • Personal management is a traditional concept and it has limited scope.
  • Employee is a tool to be used for organizational benefits.
  • The behavior of employees can be manipulated for the benefit of the organization and can be replaced when it is not needed.
  • Personal function is treated as a routine activity meant to hire new employees, maintain their records, provide incentives and maintain relation.
  • It does not consider positively for the welfare of the employees such as job security, promotion, quality of work life, incentives, proper division of work etc.
  • It is never consider as a part of the strategic management of business.

Human Resource Management

  • HRM is a broad concept and it involves all the activities essential for manpower management consisting of acquisition, development, utilization and maintenance.
  • It has taken employees an important wealth or asset to be used for the benefit of organizations and also to society at large.
  • It is developing as a distinct philosophy of management emphasizing at plans and policies for promotion of mutuality of goals, respect, rewards and responsibilities.
  • The policies of mutuality can develop commitment among the employees which will support both better economic performance and greater human resource development.
  • HRM is integrated with the overall strategic management of business.

Personnel Mgmt. Vs. HRM



It is the process that promotes integration of world economy into single huge market.

There is free movement of products, capital, technology, labour and management across borders.

Multinational companies extend their sales, manufacturing and ownership to new markets abroad.

The reasons for going global can be sales expansion, cost reduction and forming strategic alliances with foreign companies.

It has more competition, more pressure, less secure and global challenges.

Cultural harmony, acquisition, compensation, labour relations, strategic perspective will be difficult to maintain.

Technological Advances

Technology makes work more efficient which consists of equipments, skills, methods and systems.

Technological advances are rapid.

Automation, computerization, digitalization, robotics, informatics and nano technology have all affected HRM.

Implications of technological change for HRM:

Technological advances eliminate old job and create new jobs.

Technological advances bring changes in job design, skills need methods and processes. Most jobs have become computer and information technology based. Retooling of skills will be needed.

Nature of work

The nature of job is changing. More and more jobs are getting high-tech. Knowledge intensive high-tech jobs are replacing factory jobs. More employees are employed in producing and delivering services.

Implication of nature of work for HRM

  • Manufacturing jobs are shifting to low wage countries, such as China and India.
  • Companies are able to produce more products with fewer employees.
  • Manufacturing jobs will go down. Service jobs will increase.
  • Jobs will require more education and more skills. Employees will need to learn continuously.

Work force diversity

Heterogeneous workforce, diverse workforce, skilled professionals and low skilled professionals, contingent workforce (part-time, temporary and contract employees), multi-culturism workforce.

Implication of work for diversity for HRM

  • HRM required to adapt human resource practices to workforce diversity.
  • HRM will need to be more sensitive to individual differences in workplaces. They will need to deal with different values, needs, interests and expectations.
  • HRM will need to deal with less attached employees.
  • HRM will need to avoid all types of discrimination in work settings.

Legal Trends

Legal forces in HRM environment consist of laws, rules, regulations, court rulings and institutions. Legal provisions affect HRM policies and practices. HRM must comply with the legal provisions in force.

Legal trends that affect HRM consist of :

  • The legal framework is expanding. It protects  fair practices in employment. It protects rights and interests of employees.
  • The cost of enforcing legal framework relating to HRM matters is increasing.
  • International Conventions, specially from international Labor Office (ILO), have become guidelines for managing HRM matters.


Contemporary HR Issues


Responsibilities of HR Manager

Managerial Responsibilities


  • It is the process of predetermining HRM needs and choosing courses of actions to satisfy those needs.
  • HRM needs represent a gap between requirements and supply.
  • HR planning is deciding in advance about what HR activities to do, how to do them, when to do them and who is to do them.


It is establishing a structure. It defines relationships among HRM activities. It involves:

  • Defining activities required to achieve HRM goals.
  • Grouping of activities in departments/selections.
  • Designing a structure. Assigning group of activities to position and people.
  • Establishing authority and responsibility relationships for each position.
  • Coordinating activities to achieve harmony in efforts.


It is filling and keeping filled positions in the structure. The positions are matched with various skills. It is concerned with human resource acquisition function.


It is leading, communicating and motivating people to perform activities effectively.

  • Leading is guiding and influencing the work of people to willingly and enthusiastically achieve goals.


It is the measurement and correction of performance to achieve targets. It involves:

  • Establishing standards of performance.
  • Measuring actual performance.
  • Finding and analyzing deviations in performance.
  • Taking corrective actions to correct deviations.

Operative Responsibilities

Acquisition: Job analysis, recruitment, selection and socialization activities.

Development: Training and management development, career development activities.

Utilization: Motivation, performance appraisal and compensation management activities.

Maintenance: Discipline, labour relations and welfare activities.



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