2. DEFINITIONS
MANAGEMENT – Effective utilization of human resources
for the achievement of organizational objectives thru the
combined efforts of human resources that technological,
financial, physical and all other resources are utilized.
HUMAN RESOURCES – Defined as the total knowledge,
skills, creative abilities, talents and aptitudes of an
organization's workforce, as well as the values, attitudes,
approaches and beliefs of the individuals involved in the
affairs of the organization.

3. HUMAN RESOURCE MANAGEMENT
HRM is an integral but distinctive part of management,
concerned with people at work and their relationship
within the enterprise.
HRM can be defined as managing (planning, organising,
directing, controlling) the functions of employing ,
developing and compensating human resources resulting
in the creation and development of human relations with a
view to contribute proportionately to the organisational,
individual and social goals.

4. SIMILAR TERMS
Labour Management
Labour Administration
Personnel Management
Personnel Administration
Human Capital Management
Human Asset Management
Employment Administration
Employee-Employer Relations
Union Management Relations
Industrial Relations

5. NATURE OF HRM
Comprehensive Function – Concerned with all types of
people inside the organization
People Oriented – Dealing with human relationships
within an organisation
Action Oriented – Actions rather than procedures and
records – Solution of personnel problems to achieve both
organisational and personal goals.
Individual Oriented – Provide services and programmes
to facilitate employee satisfaction and growth.
Development Oriented – Developing the potential of
employees to achieve maximum.

6. • Pervasive Function – Inherent in all organisations and at
all levels
• Continuous Function – On going or never ending exercise
rather than a one shot function.
• Future Oriented – Concerned with helping an organisation
to achieve its objectives in the future.
• Challenging Function – Due to dynamic nature of people’s
emotions and they can’t be treated like machines
• Science as well as Art – Science –Tools, Principles and

7. • Staff Function – Advisory or Directing or monitoring
Function
•Young Discipline – Started in the last part of 19th
century.Relatively new specialized area as compared to
manufacturing and marketing.
•Interdisciplinary – Involves application of knowledge
drawn from Sociology, Psychology and Economics.
•Nervous System – Intimately associated with every
movement inside the organisation

8. EVOLUTION OF HRM
Industrial Revolution
Trade Unionism
Social responsibility era
Scientific Management Era
Human Relations Era
Behavioural Science Era
System Approach Era
Contingency Approach Era

9. Industrial revolution
The seed of HRM were sown during Industrial revolution
1850’s in Western Europe and USA.The wind gradually
reached to India in beginning of 20th century.During this
period:-
Machines were bought in
Technology made rapid progress
Workers were treated like machine tools
Employers were keen to meet production targets rather
than satisfy workers.
Govt. did very little to protect the interests of workers.

10. TRADE UNIONISM
This was the period when state intervention to protect the
worker’s interest was felt necessary. During this period:-
Workers started to form their associations.
Trade Union Act, 1926 was passed in India.
The basic philosophy was to safeguard worker’s interest and to
sort out their problems like:-
Child labour
Long hours of work
Poor working conditions.

11. SOCIAL RESPONSIBILITY ERA
Robert Owen,a British industrialist is considered to be the
first to adopt humanistic and paternalistic approach. He
viewed that the social and economic environment
influence the physical , mental and psychological
development of workers.
He practised the following :
Provision for reduced working hours
Housing facilities
Education of workers and their children
He admired for giving human treatment to workers.

12. Scientific Management era:-
This concept was introduced by Fredrick Winslow Taylor in
USA early in 20th century. he developed following four
principles:-
Use of scientific methods in setting work stds.
Scientific selection and placement of workers best suited for
the tasks. Also provision for training.
Clear cut division of work and responsibility between
management and workers.
Harmonious relations and close cooperation with workers.

13. He developed following techniques
for the same:
Time study and Motion Study – Precise time taken for
each correct motion
Standardization of tools, equipments and machinery and
working conditions
 incentive wage plan with differential piece rate of wages.

14. HUMAN RELATIONS ERA
This particular period focused on the
feelings,attitude and needs of the workers as
human beings.Between 1925 and 1935 Hugo
Munsterberg, a psychologist suggested the use of
psychology in selection, placement, testing and
training the employees in an organisation.

15. Between 1924 to 1932,Elton Mayo conducted
a series of experiments at hawthorne plant of
western electric company in USA.
Main findings were:-
Physical environment should be good
Favourable attitudes of workers and work team
towards their work
Fulfillment of worker’s social and psychological needs
Workers can be motivated through job security,right
to express their opinion on matters related to them.

16. BEHAVIORAL SCIENCE ERA
It was concerned with social and psychological
aspects of human behaviour. Some of imp
elements were:-
Individual behaviour is linked with group
behaviour
Informal leadership rather than formal leadership
Motivation by self control and self development
Improving efficiency through Self operating

17. SYSTEMS APPROACH ERA
Technical subsystem : formal relationships.
Social subsystem : informal group relations
Power subsystem : exercise of power

18. CONTINGENCY APPROACH ERA
• According to contingency,the best way to manage
varies with situation.
• There may not be the universal way of managing all
the situations.
• It is imperative for managers to analyse different
situations and then use the best suitable in that
particular situation.

19. OBJECTIVES OF HRM
1. To create and utilize an able and motivated workforce, to
accomplish the basic organizational goals.
2. To establish and maintain sound organizational
structure and desirable working relationships among all
the members of the organization.
3. To secure the integration of individual or groups within
the organization by co-ordination of the individual and
group goals with those of the organization.
4. To create facilities and opportunities for individual or
group development so as to match it with the growth of
the organization

20. 5. To attain an effective utilization of human resources in
the achievement of organizational goals.
6. To identify and satisfy individual and group needs by
providing adequate and equitable wages, incentives,
employee benefits and social security and measures for
challenging work, prestige, recognition, security, status.
7. To maintain high employees morale and sound human
relations by sustaining and improving the various
conditions and facilities.
8. To strengthen and appreciate the human assets
continuously by providing training and development
programs.

21. 9. To consider and contribute to the minimization of
socio-economic evils such as unemployment, under-
employment, inequalities in the distribution of income
and wealth and to improve the welfare of the society by
providing employment opportunities to women and
disadvantaged sections of the society.
10. To provide an opportunity for expression and voice
management.
11. To provide fair, acceptable and efficient leadership.
12. To provide facilities and conditions of work and
creation of favorable atmosphere for maintaining stability
of employment.

22. FUNCTIONS OF HRM
MANAGERIAL FUNCTIONS
Planning – Formulating the future course of action
Organising – Establishing an intentional structure of roles for
people in an orgn such as chain of command, division of labour,
assignment of responsibilities.
Staffing – Obtaining and maintaining capable and competent
personnel.
Directing – Coordinating and motivating towards
organisational objectives
Controlling – Measurement and rectification of activities

23. Operative Functions Of HRM
Employment – Involves procuring & employing
individuals with suitable knowledge, skills & exp
Human Resource Development – Process of training
and developing employees to improve and update their
knowledge and skills
Compensation Management – Includes all the
extrinsic rewards that an employee receives during and
after the course of his job
Employee Relations – deals with employees in the
organisational context , as a social group that contributes
to the orgn.

24. EMPLOYMENT
Human Resource Planning – Forecasting the human
resource requirements
Recruitment – process of seeking and attracting
prospective candidates against a vacancy in an orgn
Selection – choose the right candidate for a job
Placement – Selected candidate conveys his acceptance
of the offer of employment made by the orgn
Induction – Introducing a new employee to the orgn, its
business, culture,values, practices and procedures

25. HUMAN RESOURCE DEVELOPMENT
Performance Appraisal – Process of evaluating the
performance of an employee on the job & developing a plan for
improvement
Training – Systematic development of knowledge, skills,
attitudes required to perform a given task successfully.
Management Development – developing the employees of an
orgn to meet future changes and challenges
Career Planning & Development – Identifying one’s career
goals & formulating plans of reaching them thru education,
work exp.
Organisation Changes & Organisation Development

26. COMPENSATION MANAGEMENT
Job Evaluation – Systematic determination of the value
of each job in relation to other jobs in the orgn, industry &
market.
Wage and Salary Administration - Process of
formulating and operating a suitable wage and salary
program
Fringe Benefits – Monetary & Non-Monetary benefits
given to employees during their employment & post
employment period.

27. SOME OF THE FRINGE BENEFITS
Disablement Benefits
Housing Facilities
Canteen Facilities
Conveyance Facilities
Educational facilities for employees and their children
Credit Facilities
Recreational Facilities
Medical & Welfare Facilities
Post Retirement Benefits

28. EMPLOYEE RELATIONS
Motivation
Morale
Job Satisfaction
Communication
Grievance & Disciplinary

29. IMPORTANCE OF HRM
SIGNIFICANCE FOR AN ENTERPRISE
Attracting and retaining the required talent thru effective
HRP, recruitment, selection, placement, orientation,
compensation and promotion policies.
Developing the necessary skills & right attitude among
the employees thru training, development and
performance appraisal
Securing the willing cooperation of all employees thru
motivation, grievance handling.
Utilising effectively the available human resources

30. PROFESSIONAL SIGNIFICANCE
Providing maximum opportunities for personal
development of each employee.
Maintaining healthy relationships between individuals,
and different work groups.
Allocating work properly.

31. SOCIAL SIGNIFICANCE
Providing suitable employment that provides social and
psychological satisfaction to employees
Maintaining a balance between the jobs available and the
job seekers in terms of numbers, qualifications, needs and
aptitudes
Eliminating wastage of human resources thru
conservation of physical and mental health.

32. ROLE OF HR MANAGER
 Service Provider - Providing info to individual
employees, Depts or groups and also to the top mgmt
 Executive – to carry out recruitment, compensation, etc
 Facilitator – To coordinate and facilitate the resources to
the employees
 Consultant – Motivation, Training, Grievance Handling
 Auditor – Ensuring that all members of the mgmt perform
their respective roles

33. HUMAN RESOURCE POLICIES
Policies are plans of action.
Organizations need to evolve HR policies as they ensure
consistency and uniformity in treating people. They help,
motivate, and build loyalty
Policies become benchmarks to compare and evaluate
performance.

34. BENEFITS OF HR POLICIES
The work involved in formulating personnel policies
requires that the mgmt give deep thought to the basic
needs of both the orgn and the employees.
Favoritism and discrimination are thereby minimised
Policies serve as a standard of performance
Sound policies help build employee motivation and loyalty
Sound policies help resolve intrapersonal, interpersonal
and intergroup conflicts.

35. 5 PRINCIPAL SOURCES FOR DETERMINING THE
CONTENT & MEANING OF POLICIES
Past practice in the organisation
Prevailing practice in rival companies
Attitudes and philosophy of founders of the company and
top management
Attitudes and philosophy of middle and lower
management
The knowledge and experience gained from handling
countless personnel problems on a day-to-day basis

36. PERSONNEL PRINCIPLES –
Fundamental truth established by research, investigation
and analysis
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 labour management cooperation
Principle team spirit
Principle of contribution to national prosperity

37. HRIS – HUMAN RESOURCE
INFORMATION SYSTEM
Systematic way of storing data and
information for each individual employee to aid
planning, decision making, and submitting of return
and reports to the external agencies

38. PURPOSE OF HRIS
Storing info and data for each individual employee for
future reference
Providing a basis for planning, organizing, decision
making, controlling and other HR functions
Meeting daily transactional requirements such as marking
present/absent, and granting leave.
Supplying data and submitting returns to govt. and other
statutory agencies

39. APPLICATIONS
PERSONNEL ADMINISTRATION
Encompass info about each employee such as name,
address, date of birth, date of joining and info about
family.
SALARY ADMINISTRATION
The report should give the details of present salary, last
increase, and the proposed increase
LEAVE AND ABSENCE RECORDING
A fundamental aspect of leave management is to maintain
a complete leave history for each employee with the ability
to increase entitlement according to leave rules.

40. SKILL INVENTORY
This will provide the opportunity to identify employees
with the necessary skills for certain positions or job
functions
MEDICAL HISTORY
To record occupational health data required for industrial
safety purposes, accident monitoring , exposure to
potentially hazardous materials and so on.
ACCIDENT MONITORING
Details of the accidents and a list of injured employees

41. PERFORMANCE APPRAISAL
Individual employee performance appraisal data such as the
due date of the appraisal , scores for each performance
criteria , potential for promotion, and other info to form a
comprehensive overview of each employee
TRAINING AND DEVELOPMENT
Training and development needs of an employee, with the
ability to record and enquire on courses completed and any
projected training courses
HUMAN RESOURCE PLANNING
Record details of the organisational requirements in terms of
positions

42. RECRUITMENT
Recording details of recruitment activity such as the cost
and method of recruitment, and the time taken to fill the
position can be used to provide a picture of the cost of
recruitment in terms of time as well as cost.
CAREER PLANNING
The system must be capable of providing succession plans to
identify which employees have been earmarked for which
positions

43. STEPS IN IMPLEMENTING HRIS
INCEPTION OF IDEA – where and why we need HRIS
FEASIBILITY STUDY – Present system should be studied to highlight
the problem areas and the likely benefits of
HRIS
SELECTING A PROJECT TEAM
DEFINING THE REQUIREMENTS
VENDOR ANALYSIS
CONTRACT NEGOTIATIONS
TRAINING
TAILORING THE SYSTEM – Making necessary changes to best fit the
organisational needs
COLLECTING DATA
TESTING THE SYSTEM
STARTING UP
MAINTENANCE
AUDIT

44. ADVANTAGES OF HRIS
Higher speed of retrieval and processing of data
Ease in classifying and reclassifying data
Better analysis leading to more effective decision making
Higher accuracy of info /report generated
Fast response to answer queries
Improved quality of reports
Better work culture
Establishment of steamlined and systematic procedures
More transparency in the system

45. LIMITATIONS OF HRIS
Expensive in terms of finance and manpower
requirements
It can be threatening and inconvenient to those who are
not comfortable with computers.
Computers cannot substitute human being. Human
intervention will always be necessary

46. COMPUTER APPLICATIONS IN HRM
MANAGEMENT INFORMATION SYSTEM(MIS)
A wide variety of info needs of a business are recognised
and interconnected with subsystems
ELECTRONIC DATA INTERCHANGE(EDI)
A computer is an electronic tool used to collect, organise,
analyse, interpret and communicate vast amount of info
with great speed. Electronic data interchange facilitate the
speedy, secured and accurate transfer of documents across
the globe

47. E-BUSINESS
E-Business is about using the convenience,
availability and worldwide reach to enhance existing
business or creating new virtual business
E-Business combines the traditional information
system with the vast reach of the web and connects
critical business systems directly to critical business
constituencies viz., production, marketing, finance,
customers, suppliers and employees via internets,
extranets and the world wide web

48. E- HRM
Electronic aspect is embodied in all the areas of HRM
where there is transmission of information from one
employee to another employee and from one client to
another
Both internally and the processed form are highly
essentials in most of the functions and activities of HRM.

49. The important aspects of E-HRM are
E-Job Design and Job Analysis
E – Human Resource Planning
E-Recruitment
E – Selection
E-Performance Management
E-Training & Development
E – Compensation Management
E – Grievance Redressal
E – HR Records
E – HR Information
E – HR Audit

50. E – JOB DESIGN AND JOB ANALYSIS
The information of listing skills and competency
mapping are placed on the net.
Then the system matches the listing skills and
competency mapping and produces the output of
identifying the employee suitable for a particular task.

51. E-HUMAN RESOURCE PLANNING
Computer Programs are developed and used extensively
for the purpose of planning human resource requirements
based on the data and the information
These programmes indicate the number of employees
required at each level for each category of the jobs based
on sales and production forecasts.

52. E - RECRUITMENT
Organisations advertise job vacancies thru the World
Wide Web(WWW)or send the info directly to the
most competent people thru e-mail
The job seekers send their applications thru e-mail
using internet.Alternatively job seekers place their
CV’s in the World Wide Web(WWW)thru various
jobsites

53. E - SELECTION
E – Selection has become popular with the conduct of
various tests thru online, contacting the candidates
thru e-mail and conducting the preliminary
interviews and final interview thru audio and video
conferencing

54. E – PERFORMANCE MANAGEMENT
The software on employee performance appraisal provides
a number of statements and sub statements on each of the
performance categories.
The appraiser selects and clicks the appropriate rating for
each statement. The system generates a detailed report by
the time the appraiser has moved all the performance
categories and sub factors
The report modified, comments can be added or deleted
by the appraiser and a final report can be prepared by the
manager

55. E – TRAINING AND DEVELOPMENT
Companies started providing online training and online
executive development. Employees learn various skills by
staying at the place of their work. Participants complete
course work from wherever they have access to a computer
and an internet
E – Learning is enabled by the delivery of content via all
electronic media, including the internet, intranet, satellite
broadcast audio/video tape, interactive TV and CD-ROM

56. E – COMPENSATION MANAGEMENT
Almost all the organisations started using computers
for salary fixation, salary payment, salary calculations,
fixation and calculation of various allowances ,
employee benefits, welfare measures and fringe
benefits

57. E – GRIEVANCE REDRESSAL
Employees send their grievance via e-mail to the
superior concerned who in turn solves the problems /
redress grievances and communicates the same to the
employee. This reduces the time in the process and
avoids face to face interaction

58. E – HR RECORDS
HR records are created, maintained and updated with the
help of computers easily and at a first rate.
E – HR INFORMATION
HR info is generated, maintained , processed and
transmitted to the appropriate places or clients with the
help of software with high speed and accuracy.

59. E – HR AUDIT
The standard human resource practices or the desired
HR practices are fed into the computer. The data and
info regarding the actual practices are also fed into
the computer
The software automatically completes the HR audit
and produces the audit report. The HR manager then
can modify the report by deleting or adding any
comments.