UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

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Introduction In all activities men and resources are involved. For a long time men or workers were taken for granted. Greater accent was given to resources, production machinery and top managers. But at present in the modern large scale production of innumerable products with a wide market, (where sky is the limit) in the last few decades the importance of human resources and their development has come to the fore. The importance of human resources to any organization need not be over-emphasised. Human resource is the wealth of a nation and an organisation. The development process is wide and varied. In this lesson, let us understand the importance and concept of Human Resources Management. (HRM). Human Resources In the general parlance, human resources are people and their characteristics at work either at the national level or orgationsational level. Megginson has defined human resources as follows: “From the national point of view, human resources are knowledge, skills, creative abilities, talents and attitudes obtained in the population; whereas from the viewpoint of the individual enterprise they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employers” Sumantra Ghosal considers human resources as human capital. He classifies human capital into three categories – intellectual capital, social capital and emotional capital. Intellectual capital consists of specialized knowledge, tacit knowledge and skills, cognitive complexity and learning capacity. Social capital is made up of network of relationships, sociability, and trustworthiness. Emotional capital consists of selfconfidence, ambition and courage, risk-bearing ability and resilience”. In simple words, HRM is a process of making the efficient and effective use of human resources so that the set goals are achieved.
Definition of HRM According to Flippo, ‘Personnel Management, or say, human resources management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end, that individual, Organisational and social objectives are accomplished”. The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”. According to Decenzo and Robbins, “HRM 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 higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization – government, business, education, health or social action”. HRM can be defined as a process of procuring, developing and maintaining competent resources in the organization so that goals of an organization are achieved in an effective and efficient manner. In other words HRM is an art of managing people at work in such a manner that they give best to the organisation. Significance of HRM Human resources are the most precious asset of an organization. They are the activators of non-human resources, means for developing competitive advantages and sources of creativity. Ghoshal outlines the role of HRM in managing an organization in the following lines. “Indian Companies have spruced up their strategic thinking; they have even moved a generation ahead with their organsations. But they still have managers who have been shaped by old models. They are essentially a group of first generation managers whose definitions of roles and tasks, personal skills and competencies, ideas and beliefs about management have been shaped by an earlier model. You cannot manage third generation strategies with second generation organizations and first generation managers to meet the needs of second generation organisations and third generations strategic thinking.
Page 1: Lesson Outline � Nature of HRM
Page 5 and 6: Concept of HRM Human Resources are
Page 7 and 8: Taylor developed four principles of
Page 9 and 10: Systems Approach Era A system may b
Page 11 and 12: Relevance of HRM HRM is relevant in
Page 13 and 14: • Subscribe to the aims and objec
Page 15 and 16: • every opportunity for advanceme
Page 17 and 18: 5. System approach - set of interde
Page 19 and 20: Introduction Organisation structure
Page 21 and 22: An organization structure should be
Page 23 and 24: 2. Grouping of Activities Closely r
Page 25 and 26: operation. While line authority flo
Page 27 and 28: i. Divergent background Line and st
Page 29 and 30: Proto type dev. Dev = Development A
Page 31 and 32: Pure product Type Organization Here
Page 33 and 34: elationship. There is a need for un
Page 35 and 36: INTRODUCTION Modern business manage
Page 37 and 38: Features of HRM as a system The fol
Page 39 and 40: Industrial Relations Subsystems Mai
Page 41 and 42: Selection process � Short listing
Page 43 and 44: MERIT RATING b. Point comparison me
Page 45 and 46: Lay - Off i. Unsatisfactory perform
Page 47 and 48: Causes for Industrial Disputes Fina
Page 49 and 50: 4. Job evaluation is the evaluation
Page 51 and 52: Introduction The primary objective
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Functions The functions performed b
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� Recruiting and selecting person
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Emerging HRM functions: Increasing
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7. PM emphasizes on economic reward
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1. Its objectives are manifold. The
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Introduction Environment comprises
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Political environment covers the im
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* Partnership - A joint business, w
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Employee’s State Insurance Act, 1
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Under this Act, on completion of 5
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Summary 3. Explain the role of Gove
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Introduction Though human resource
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According to Udai Pareek, “it is
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The following techniques are usuall
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outside. But in an existing organis
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HRP is not a static one-shot plan t
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Lesson Outline � Why HRIS? � HR
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STORING Same of the applications wh
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SELECTION OF PROJECT TEAM Once the
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Data storage and processing Benefit
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monitoring, vii) Performance apprai
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Introduction Recruitment, selection
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viz., Exchange (Compulsory Notifica
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establishments having 25 workers or
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) Strategy development c) Searching
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Selection process Following are the
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advice youth or job seekers regardi
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a) Deciding the objectives - The ob
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7. The interviewers should also evi
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Information induction In this syste
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LESSON 9 PERFORMANCE AND POTENTIAL
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organizations often use a combinati
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tempered. But the fact is fact. Eve
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i. The employee is hard working ii.
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The essay method is useful in provi
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v. Development of the BARS instrume
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Potential Appraisal Performance app
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Lesson Outline � Speciality of Vi
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� Customer orientation � Sharin
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� Adaptability. � Knowledge abo
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The characteristics of virtual orga
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g. To differentiate forms of intern
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3.5 Training and Development Method
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sensitivities and work more harmoni
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meet the growing needs of the indus
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organization. The mentor is usually
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uilding leadership, decision-making
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covered and learning processes invo
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positions occupied by a person duri
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3.15 Career Stages: There are four
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3.17 Promotions, Demotions and Tran
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merit and untainted by favoritism.
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employees may feel it uncomfortable
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3.20 Conditions Necessary for Empow
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enabling them to concentrate on mor
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etirement package before redesignin
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institutionalized the practice of w
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targeted for removal. To top it all
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12. Write a proposal for conducting
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2. R.W Mondy, R.M. Noe and S.R. Pre
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4.1 Introduction Human resource act
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* The base salary range for Project
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proper records. The system should c
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Once the jobs that are to be evalua
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is not paying above market rate and
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The problem of increasing productiv
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whether new jobs are getting added.
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what they are doing is a prerequisi
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ecoming) and self-fulfillment. Abra
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the odds are high because they get
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This theory proposes that an indivi
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atings he or she would receive. At
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6. Maintain positive health buffers
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could be the causes of residual eff
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Analyzing the conceptualizations of
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the employees to meet the needs of
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3. Comment on the recent trend in o
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5. Motivation: The set of processes
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MEANING AND DEFINITION UNIT V LESSO
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• IR has moral dimensions, too. I
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TRADE UNIONS Trade unions constitut
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• DETAILED SUPERVISORY TRAINING T
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ORIGIN • Trade unions are the cre
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PRINCIPLES Trade unions function on
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It is that rely upon the support of
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they are important to carry on the
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may in some cases, attempt reprisal
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• Communication They keep members
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• Disputes of Right, which relate
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(iii) Grievance procedure COLLECTIV
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• Mediation is a process by which
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MEANING AND DEFINITION LESSON- IV C
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Collective bargaining has benefits
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• Administrative Issues NEGOTIATI
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MEANING AND DEFINITION Lesson - V M
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• Work-related pressures and trai
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MC GREGOR’S RED HOT STOVE RULE On
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Negative Feedback. In some organiza
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DEMOTION If no improvement is notic
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MEANING AND DEFINITION LESSON - VI
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• The Increased Use Of Technology
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IMPORTANCE OF PARTICIPATION • The
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• The management and the workers
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UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

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