INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

LESSON 1

INTRODUCTION TO

HUMAN RESOURCE MANAGEMENT

CONTENTS

1.0 Aims and Objectives

1.1 Introduction

1.1.1 Human Resources

1.1.2 Definition of HRM

1.1.3 Significane of HRM

1.1.4 Development of HRM in India

1.2 Nature of HRM

1.3 Scope of HRM

1.4 Objectives of HRM

1.5 Let Us Sum Up

1.6 Lesson End Activity

1.7 Key Words

1.8 Questions for Discussion

1.9 References

1.0 AIMS AND OBJECTIVES

After reading this lesson you should be able to:

 Define HRM,

 Understand the nature and scope of the HRM,

 Describe the development of HRM in India and

 Detail the objectives of HRM.

1.1 INTRODUCTION

In all activities men and management of 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 forefront. 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. The basics of HRM are

discussed in this lesson.

1.1.1 Human Resources

In the general parlance, human resources are people and

their characteristics at work either at the national level or at the

organisational level.

Human Resource

Management

4

Sumantra Ghosal considers human resources as human

capital and classifies human capital into three categories, viz.

 Intellectual capital,

 Social capital and

 Emotional Capital.

Figure 1.1 Human 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 self-confidence,

ambition and courage, risk-bearing ability and resilience.”

Simply stated, HRM is a process of making efficient and

effective use of human resources so that the set goals are achieved.

1.1.2 Definition of HRM

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.

“Human Resource Management” (HRM) according to a

layman’s language can be defined as the acquisition (through

recruitment or any other internal sources), development (through

training, mentoring or coaching), control (by conducting Human

Resource Audit on a regular basis) and maintenance (through

Employee Retention Programs) of work force in an organisation.

Megginson: “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”.

Introduction to Human

Resource Management

Flippo: ‘Personnel Management (or 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, so as to

accomplish the individual, organisational and social objectives”.

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”.

Michael J. Jucins: “Human resources as a whole consisting of

interrelated, inter dependent and interacting physiological,

psychological, sociological and ethical components.”

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