Chapter 1 – Human Resource Management – BBA/BBS notes

September 15, 2016 LINUX XURAAZ 2 comments

Chapter 1 – Introduction to Human Resource Management (HRM)


Introduction to Human Resources Management


INTRODUCTION OF HRM As we know that the principal resources of an organization is the people. Without which no organization can born and run. Thus people are that resources of organization through which all activities are done to achieve the organizational objectives. So the process of managing the human resources of an organization is known as human resource management. It is mainly concerned with people’s dimension in the organization. It means employing people, developing these resources, utilizing, maintaining, and compensating their services with the job and organizational requirement. Human resource is the primary resources of the organization, so they should be managed effectively and efficiently to achieve organizational goal. HRM is said to be the philosophy, policies, procedures and practices related to the management of productive human resources in and organization.

According to Byars and Rue: “Human resource management encompasses those activities designed to provide for and coordinate the human resources of an organization.

Decenzo & Robbins: “HRM is a process of four function acquiring, development, motivation and maintenance of human resources.”

In short HRM can be defined as the process of accomplishing organizational goals by acquiring, retaining, terminating, developing and properly using human resources in an organization.


Characteristics of HRM:

1.      Action Oriented: Effective HRM focuses on action, rather than on record keeping, written procedure or rules. It gives emphasis on the solution to employment problem to achieve organizational objectives and facilitate employment development and satisfaction in a dynamic environment.

2.      Human Approach: HRM is the process of managing people of an organization with a human approach. It means employing people developing these resources, utilizing, maintaining and compensating their services to the job and organizational requirement. It is concerned with human aspects. Mainly it develops and utilizes human potential.

3.      Part of Management: HRM is a part of management principles and functions.

It involves managerial functions such as planning, implementing and controlling of acquisition, development, utilization and maintenance of human resources.

4.      Pervasive function: HRM is pervasive function of management. All level of management performs it. Although the HR department is created under HR manager, it should not be assumed that other managers are not free from its responsibility.

5.      Continuous Process: HRM is a continuous process and it must be performed continuously to achieve organizational goal smoothly. It is concerned with present as well as future.

6.      Achievement of Goal: HRM aims to achieve organizational goal by managing the human resources of an organization.

Objectives of HRM

Objectives are predetermined goals to which individual or group activity in an organization is directed. Effective management  of human resources is the key to organizational success. Corporate objectives and individual as well as social goals influence the objectives of human resource management. The primary objectives of HRM is to acquire, develop, motivate, and utilize the human resource to achieve organizational goals in a dynamic environment. The various purpose of HRM is given below:


a) Acquisition: One of the main purpose of HRM is to enable the organization to obtain and retain the skilled committed and well motivated workforce to achieve organizational objectives.


b) Achievement of organization goal: HRM always aim to achieve organizational goal by an effective utilization of human resources.


c) Development of People: The another purpose of HRM is to enhance and develop the inherent capacities of people, their contribution potential and employability by providing continuous training and development  opportunity.


d) Improve quality of work life: Human resource management maintains and improve physical and mental well- being of employee. HRM always aim to maintain the quality of work life. Without this improvement, it is difficult to improve the organizational performance.


Functions/ Components of HRM

In order to achieve organizational objectives, HRM must perform certain functions. The main function performed by HRM can be classified into four category.


1) Acquisition:  Acquisition means to place right number of people at right time in the organization. The following activities are related with acquisition:


a) HR Planning: The HRM process begins with human resource planning. Planning ensures organization that it has a right number of qualified people in the right job at right time. This includes the estimation of demand and supply of labour.


b) Recruitment:  Recruitment is the process of seeking and attracting prospective candidate for the job vacancies. It ensures more people to apply for the job.


c) Selection: Selection means to choose the right candidate from among all the prospective application. It involves reviewing the application form, psychological testing, interviewing etc.


d) Specialization: The acquisition  functions is completed when the selected applicant have been placed in organization and have adopted to the organization’s culture and environment.


2) Development of Human Resource: HRM is intended to improve the performance of employees. Plans should be arranged for developing people at all level because competent people will not remain competent forever. So that additional development of human resources required time to time. The development of human resources can be viewed in three process. The first is employee training which gives emphasis on skill development to cope with the current changes. The second is management development, which is concerned with enhancement of an executive’s conceptual abilities. The third is career development which involves carrier path of employee to match long term individual and organization needs.


3) Motivation of Human Resource: Highly motivated  employee always tend to be more productive and have lower rates of absenteeism, turnover and lateness. Thus employee motivation is vital to the success of any organization.

The extrinsic factor such as job design. Working condition, job security, and supervision and intrinsic factor such as achievement, recognition are the main factors which affect the motivation of the employee. The employees of any organization motivates towards his work when his needs are satisfied by the job, is doing. The performance appraisal process and its outcome will affect the employee motivation. If they think their efforts will be unfairly judged, motivation will decrease. The reward or punishment that follow the appraisal and compensation and benefit administration will influence motivation. A link should be established between employee performance and compensation. The main aim of HRM is to increase the productivity and performance of the employee by motivating them.


4) Maintenance of human resource: The final function of HRM is maintenance of human resource. It is concerned with providing those working condition that employee believe are necessary in order to maintain their commitment to the organization. Organization are required to provide safe work environment free from physical hazards and unhealthy condition. Labour relation is concerned with the relationship between the organization and its employee. If there is good relationship , there will be cooperation and a high level of commitment otherwise not. Thus through these activities, we can expect to have competent  otherwise not. Thus through this activities, we can expect to have competent employee who are committed to the organization and satisfied with their job.


Personnel and Human Resource Management (HRM)


HRM is the modern term for what has traditionally been referred to as personnel administration or personnel management. HRM is the term increasingly used to refer  to the philosophy, policies, procedures, and practices related to the management of people in the organization. Some view personnel management or perhaps modern personnel management means the same thing. Change in terminology reflects the increased significance associated with the management of people in organization as well as border prospective from which the field is currently viewed. One should clearly understand that HRM is not only personnel mgmt. rather it is only the part of HRM. In the past personnel management had a strong functional focus, that is personnel specialists were primarily concerned with the administration of specific employee related function such as living, training, wage setting and disciplinary action. HRM is emerged out of personnel functions, and personnel mgmt. can not be isolated from HRM.


The difference between HRM and personnel management are as follows:

1. HRM is primarily a philosophy, policies, procedures and practices related to the management of people while personnel mgmt is a functional area and function.

2. HRM must remain at the center of management. It is concern of all managers from top to button in an organization, while personnel mgmt is mainly the concern of personnel managers.

3. HRM makes effort primarily to satiety the human needs of the people at work which motivates the people to make their best contribution for the achievement of organization goals and objectives, while personnel management maintains rules, principles and legal provisions in maintaining the people.

4. Human values and individual needs are given priority in HRM, while personnel management gives emphasis on efficient administration.

5. HRM is an integrated approach accommodating all the aspects of acquisition, development, motivating and maintenance of human resources, where as personnel management is primarily concerned with recruitment, selection, and administration of manpower.


HR Manager  Responsibilities /function:


The important function of human resource manager is to prepare human resource planning. It involves demand and supply of employees. While making human resource planning, the human resource department has to review the organizational goals. A human resource information system provides detailed information about the current employees, which helps for making good plan.


1)       Recruitment and Selection:

One of the important functions of human resource manager is the recruitment and selection. Recruitment is a process of making a pool or qualified candidates. Selection is the process of accepting the best candidates from many candidates. Recruitment function starts with the application process. Information from job analysis and human resource information system is used for selecting the best candidates.

2)      Training and Development:

Training and development is also the another function of human resource management and development is required to develop the skill, ability and motivation of employees. Human resource department has to engage in assessing training need. On-the-job training and off-the-job training can be provided to the employees.

3)    Performance Appraisal:

Performance appraisal is the process of evaluating performance of employees regarding strength and weakness. It helps to assess hoe well the employees are performing their job. Human resource manager have to design appraisal technique to get feedback from employees.

4)      Job Analysis:

It is the basic function of human resource manager. It involves the collection of job related information to prepare job description and job specification. Job description includes information about what a person has to do. In job specification, it indicates the qualification, experience and skills required to perform the job as mentioned in job description.

5)      Compensation and Benefit:

Compensation reward people through pay incentives and benefits of the work done. Benefit reward people with additional compensation. They are direct form of compensation such as, health care, family related and other benefits. Compensation and benefit are the major source of the motivating employees at work.


6)      Health and Safety:

Providing healthy work environment is another important function of human resource manager. Every organization has to take care of its employees’ health and safety. The working place are getting more and more and increase in use of chemical and other harmful substance.

6)      Employees’ Relation:

Another important function of human resource manager is to maintain good relation between employees and employer. In this process, the human resource department helps to develop mechanism for developing understanding between employees and employer. Human resource department help to develop the mechanism to solve the conflict. It involves handling grievance, labor management, handling conflict etc.



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