Introduction to

Human Resource Management

BBA- 4th Semester

Kantipur International College
2020
 Meaning……
• Human Resource: refers to the skilled workforce in an organization. Also
called as human capital or human asset.
• Management: refers how to optimize and make best use of such limited
or scarce resource so as to meet the organization goals and objectives.
Human Resource Management is concerned with the people dimension in
management. Since every organisation 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 organisation are essential to achieving organisational
objectives- Decenzo and Robbins
 Edwin Flippo defines- Human
Resource Management as “planning,
organizing, directing, controlling of
procurement, development,
compensation, integration ,
maintenance and separation of
human resources to the end that
individual, organizational and social
objectives are achieved.”
 Characteristics…
• Element of management functions: HRM is an important part of management function
along with planning, organizing, directing and controlling. It is the management of employee
in organization.
• Emphasize on manpower: HRM focus on all activities essential for manpower management .
It involves acquisition, utilization, development of manpower.
• Dynamic activity: HRM is dynamic activity as it should be adaptive with the changes in
enviromnet.
• Pervasive function : it is common function for all level of management. On the basis of
assigned function, middle and subordinate level of employee is involved in HRM function.
• Continuous function: HRM function is continuous till the functioning and existance of
organization for achievement of organization vision and mission. One goals get achieved, the
another goal is set which required HR to achieve it.
• System oriented: all the function of HRM i.e acquisition, development, utilization and
maintenance function is done in accordance with the rules and regulation of the
organization.
Contd…
• Focus on organizational strategy: HRM focus on organizational plan, policy
and strategy. HRM system is developed by linking organizational strategy and
objective.
• Social process: HRM is a social system where managers have to work with
subordinates in harmonious relation
• Integration of Mutual Interest: HRM emphasizes on integration of both
organizational and individual interest of employee. Organization objective is
to earn profit and individual objective is to fulfill their own different needs
• Essential in all organization: Every organization requires HR for its
competitive advantage. The system of management may differ between
different organization.
Why Is HRM Important to All Managers?
It is because there are some of the personnel mistakes you don't want to make while
man­aging. For example, you don't want to:
• Hire the wrong person for the job.
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have your company taken to court because of discriminatory actions
• Have your company cited under federal occupational safety laws for unsafe practices
• Have some employees think their salaries are unfair and inequitable relative to others
in the organization
• Allow a lack of training to undermine your department's effectiveness
• Commit any unfair labor practices
 Objectives of HRM
The primary objective of HRM is to ensure right people for right jobs so that organizational goals are achieved
efficiently.
1. To employ the skills and abilities of the workforce efficiently
2. Maintain high morale and good human relation with the organization
3. To provide the organization with well trained & well motivated employees
4. To increase employees job satisfaction and self actualization (stimulate employees to realize their
potential)
5. To develop & maintain a quality of work life.
6. To communicate HR policies to all employees.
7. To be ethically & socially responsive to the needs of the society(ensuring compliance with legal & ethical
standards)
8. To provide an opportunity for expression & voice in management
9. To provide fair, acceptable & efficient leadership
10. To establish sound organizational structure & desirable working relationships.
Objective of HRM can be Classified into 4 major categories
• Societal Objective
• Organizational Objective
• Functional Objective
• Personal Objective
 Function of HRM

Function of HRM

Acquisition Function Development Function Utilization Function Maintenance Function

HR Planning Development Need

Motivation
Analysis Employee Relation
Recruitment Performance Appraisal
Employee Training Employee Discipline
Selection Reward and
Management Employee Welfare
Placement Compensation
Development Effective Communication
Socialization Employee Benefits
Career Development
• Acquisition Function: It involves the employment of right number
and right kind of workforce to the right job.
Human Resource Planning: This is the primary function where
the estimation of number of manpower requirement and
development of appropriate policies to fulfill the need is done.
It insures the right number and right kind of manpower is
available at right time to perform job.
Involves identification of manpower inventory, determining need
and identification of gap and planning to fill the gap.
Recruitment: It is the process of searching the prospective
candidate and stimulating them to apply for the job.
Two sources of recruitment- Internal (fulfilled through transfer
and promotion) and External(fulfillment through vacancy
announcement, manpower suppliers, education institutes,
employee referral).
Selection: It is a process of choosing the right candidate from a
pool of applicants. It leads to employment of persons who
possess the ability and qualification to fill the vacant posts.
Placement is a process of providing appointment and assigning
specific job to the selected employee.
• The placement of right man at right job helps in boosting the
morale of employees, motivating them and also helps in
productivity.
Socialization is a process of introducing new employees to the
organization and its procedures, rules and regulations. It helps
the new employee feel comfortable in their job and help to
develop working efficiency.
 Development Function
• It ensures the required competencies of the workforce to perform assigned
task efficiently
Employee Training: It refers to the activities necessary for development of
skills , abilities and knowledge of employee. It is necessary to maintain
quality of work on the basis of changing technology and other environment.
Management Development: It refers to the activity necessary for
development of managerial ability among different levels of managers.
Managers are encouraged to participate in decision making on the basis of
area of their knowledge.
Career Development: It refers to the activities essential for development of
future profession of employee. It involves division of work on the basis of
skill and knowledge. Includes activities like job enrichment and
enlargement.
Utilization Function
• It is the psychological aspect and ensures the optimum use of human
resource.
Motivation- It is a process of encouraging employees to perform assigned
activities to the best of their ability. Both extrinsic and intrinsic factors are
use to motivate the employee
Appraisal of performance of employees:- Performance appraisal involves
assessment of the actual performance of an employee against what is expected of
him/her. Such assessment is the basis for awarding promotion, effecting transfers or
assessing training needs.
Remuneration of employees:-
• Wage and Salary administration: This function is concerned with the determination
of adequate and equitable remuneration of the employees in the enterprise. The
sub-functions concerned with the determination of equitable wages include the
followings
A. Job evaluation to determine worth of various jobs in terms of money.
B. Comparing the wages of the enterprise with those in the Industry and remove
inconsistencies if any.
C. Formulation of policies regarding pension plans, profit sharing plans. non-monetary
benefits, etc.
 Maintenance Function
It is concerned with retaining productive employees in the organization for long duration. It
is possible by maintaining good employee relation and with good working environment. It
involves the following activities
Welfare Activities:-These activities relate to the physical and social well-being of the
employees and their families. They Include provision of medical facilities and first-aid box,
provision of rest-room, recreation, education of children, canteen, etc., employee
counselling, housing, group Insurance, etc.
Employee Relations:- In most of the big organizations, the HR managers help in collective
bargaining, joint consultation and settlement of disputes, whenever they arise. It is
Important to point out that the responsibility of fulfilling the requirements of various
labour laws like Industrial Disputes Act, also rests with the personnel department.
Employee Discipline: This activity is concerned abiding by the rules and system of the
organization. Management needs to develop rules, regulation which should be followed
by all members from top level to subordinate level.
Grievance handling:- He helps in laying down the grievance procedure to redress the
grievances of the employees. The personnel manager can do a great deal in maintaining
industrial peace in the organisation as he is responsible for setting various committees on
discipline, labour welfare, safety, grievance. etc.
Other Function
Records and Statistics:- The records and statistics about the workforce are important for
various reasons.
Firstly, they help in taking decisions relating to transfer and promotion.
Secondly, they help in performance appraisal of the employees.
Thirdly, they reveal the human resource talent available with the organisation.
Finally, they help in identifying the weaknesses in the employees and the areas in which
they need training.
Advisory Function
Importance of Human Resource Management
• Attract and Retain Talent
At Enterprise •
•
Train people for challenging jobs
Effective utilization of available Human Resource
Level •
•
Create competent and dedicated employee
Develop right skills and attitude

• Promote team work and team spirit

At Personal •
•
Improve job satisfaction
Offer excellent growth opportunity
Level • Provides environment and incentives for developing and
utilizing creativity

• Good Employment Opportunities in the society

At the Society •
•
Generation of Income & Consumption
Better Lifestyle
Level •
•
Enables managers to save scarce resources
Gain in productivity of society
BASIS FOR COMPARISON PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT

Meaning The aspect of management that is The branch of management that focuses on
concerned with the work force and the most effective use of the manpower skills,
their relationship with the entity is knowledge, to achieve the organizational goals
known as Personnel Management. is known as Human Resource Management.

Approach Traditional Modern

Treatment of manpower Machines or Tools Asset
Type of function Routine function Strategic function
Basis of Pay Job Evaluation Performance Evaluation
Communication Indirect Direct
Management Actions Procedure Business needs
Decision Making Slow Fast
Job Design Division of Labor Groups/Teams
Focus Efficient management is given Human values and individual needs are given
priority. priority.
System of HRM
Role of HR Manager
Operational Roles
• Advising management for effective use of HR
• Strategic Human Resources Planning
• Recruitment, selection, Training and Development
• Measurement and assessment of Individual and group role
• Job analysis, Job description and Job evaluation
• Performance appraisal, Merit rating, compensation and benefits
• Organisation Development and Planning
Administrative Role
• Time / attendance administration
• Salary and Wage administration
• Maintenance of records
• Human Engineering-Man/Machine relationship
• HR information and assessment system
Fire fighting Role
• Grievance Handling
• Settlement of Disputes and Union Management negotiations
• Disciplinary Procedure
• Collective Bargaining
• Industrial relation issues
Management of welfare services
• Management of Canteen,Transport, Hospital and first aid,
Health care and safety,
• Communication
• Group Dynamics
• Individual and group counselling, motivation
• Leadership development
• Statutory compliance like PF, Gratuity and so on
Other Roles…..
• The Conscience Role: Reminds management of its obligations towards
its employee
• The Counselor: provide consultation and offers suggesations to
employee to solve their problems
• The Mediator: acts as mediator to settle dispute between
management and employee.
• The Change Agent: introduces changes in various existing programs.
• Spokesperson for Employee: Communicates plans and changes in
policies to the employee whenever required.
 Qualities of HR Manager
Henry Fayol has described the below mentioned qualities:
a) Physical- health, vigor (energy, strength)
b) Mental- ability to understand, learn, judge & adaptable
c) Moral – firmness, responsible, initiative, loyal, dignity (self respect)
d) Educational- subject knowledge about function performed
e) Technical- peculiar knowledge on function
f) Experience – arising from work proper.
OTHERS: Alert mentally, competent to take quick decision, honesty &
integrity, patience, good leader, socially responsible, good communicator,
courteous (well mannered)
 HR Ethics
• MEANING : Ethics are those values, which has been imbibed within an
individual on reinforced externally that help him to distinguish between
right and wrong and to act accordingly.
• There can be several sources of ethics like religion, organizational culture,
legal obligations etc.
ETHICS IN HRM: Ethics in HRM indicates the treatment of employees
with ordinary decency and distributive justice.
• Ethics in HRM basically deals with the affirmative moral obligations of the
employer towards employees to maintain equality and equity justice.
Equality vs Equity
 Unethical Practices of HRM
Employers
1.Creating split in union leaders;
2.Biased attitude in selection, transfer, promotion etc.;
3.Off-shoring and exploiting ‘cheap’ labour markets;
4.Child labour;
5.Physical violence;
6.Longer and inflexible working hours;
7.Putting on more stress on employees for increasing the
productivity;
EMPLOYEES
1.False claim of personal details like age, qualifications etc.
2.Producing false certificates.
3.Taking decisions as per their convenience.
GOVERNMENT
4. Announcing the vacancies and not taking any action further.
5. Functioning of government offices is not transparent and reliable.
6. Selection committees will be excessively cautious of reservation quotas and
possible court cases rather than gaining through the responsibilities
As an HR Manager you are ethically responsible for promoting and fostering
fairness and justice for all employees and the organizations.
Following points must be considered to promote the fairness and justice in an
organization:
• The organization must realize the intrinsic value of its employees.
• Treat people with dignity, respect and compassion to foster a trusting work
environment free of harassment and unlawful discrimination.
• Giving opportunities to the employees equally to develop their competency
skills.
• Bring in the feeling of owning the organization, within employees so that
the employees would be committed towards the organization.
• Laying down such policies and procedure which will ensure equitable
treatment for all.
• The individual goals on an employee must be streamlined with the
organizational goals. Individual goal of an employee should not obstruct
him to achieve the organizational goals.
• The organization must be fair and honest to its staff. Decisions taken by the
management must be ethical and legal.
 Environment of Human Resource Management in
Nepalese organization
1. The diversity has flourished in Nepalese organizations: Nepalese organization is
characterized by people having varied culture, social, and religious backgrounds,
multiple and conflicting goals, and attitudes.
2. Faster changing conditions and increase in external pressure: Government regulations,
competitive pressure, unionization of employee have exerted a strong influence on the
functioning of HRM by many Nepalese organizations.
3. Increased focus towards social obligation: HR manger in Nepalese organizations are
bound to evaluate social impacts of their business and HR decisions, e.g., lay off,
pressure to hire local people ethnic groups, women and minorities.
4. Significant Development, improvement and enforcement of Acts : Government of
Nepal (GON) has come out with a set of rules and regulation of the employment policy
of organization through act like Labor act, Union act, minimum wage directives,
bonus act, etc.
5. Growth of unions and industrial relations: Freedom to form and collectively
raise voice to the upper management and government by unions has
considerably increased and improved.
6. Changing employee standard and professionalism: Entry of educated young
mangers, more career orientation, entry of women and protected groups,
more participation in decision making and job involvement.
7. Changing in employees’ roles ,values and work expectation: Emphasis on
quality of work life, equity and justice in work and rewards, participative
decision making. Etc
8. Focus on personnel administration
Thank You…..