Description
Human resources is a term used to refer to how people are managed by organizations. It was basically a traditionally administrative function but with time it focuses and recognizes talented and engaged people and organizational success.
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
The Concept of Human Resource Management
Human resources is a term used to refer to how people are managed by organizations.
It was basically a traditionally administrative function but with time it focuses and recognizes
talented and engaged people and organizational success. Human resources has at least two
related interpretations depending on context. The original usage was traditionally called
labour. It is a measure of the work done by human beings. This perspective is changing as a
function of new and ongoing research into more strategic approaches. This first usage is used
more in terms of 'human resources development', and can go beyond ust organizations to the
level of national importance. The more traditional usage within corporations and businesses
refers to the individuals within a firm or agency, and to the portion of the organization that
deals with hiring, firing, training, and other personnel issues, typically referred to as 'human
resources management'.
The terms !human resource management! and !human resources! "H#$ have largely
replaced the term !personnel management! as a description of the processes involved in
managing people in organizations. In simple sense, H#% means employing people, developing
their resources, !personnel management! as a description of the processes involved in
managing people in organizations.
Human resource management is to maximize the return on investment from the
organization's human capital and minimize financial risk. &resently Human #esource
%anagement is an integral but distinctive part of management. Its obective is the
maintenance of better human relations in the organization by the development, application
and evaluation of policies, procedures and programs relating to human resources to optimize
their contribution towards the realization of organizational obectives. H#% helps in attaining
maximum individual development, desirable working relationship between employees and
employers, employees and employees, and effective modeling of human resources as
contrasted with physical resources. It is the recruitment, selection, development, utilization,
compensation and motivation of human resources by the organization.
'enerally, human resource management refers to the management of the entire
workforce of an organization in a reliable, honest and professional manner. It is the
responsibility of human resource managers in a corporate context to conduct these activities
in an effective, legal, fair, and consistent manner. That(s why the demand of Human
#esource "H#$ management has been dramatically increased these days. )rom corporate
sector to banking industry, from non profit organizations to human protection groups, from IT
solution companies to printing industry* human resource management is playing a critical role
in all the other sectors of the economy.
Dr. S. P. Mishra Page 1
Evoluton of Human resource management
+autilya provides a systematic treatment of management of human resources as early
as ,th century -... in his treatise titled !/rtha01hastra!. There prevailed logical procedures
and principles in respect of labour organizations such as 1hreni or guild system and co0
operative sector. The wages were paid strictly in terms of 2uantity and 2uality of work turned
out and punishment were imposed for unnecessarily delaying the work or spoiling it. The
'overnment used to take active interest in the operation of both public and private sector
enterprises and provided well0enunciated procedures to regulate employer0employee
relationship. +autilya provides an excellent discussion on staffing and personnel management
embracing ob descriptions, 2ualifications for obs, selection procedure, executive
development, incentive systems and performance evaluation. In course of time, the guild
system was followed by cooperative sector consisting of craftsmen and traders, and
purporting to promote their professional interests. 3umerous professional societies were
formed. /gain, there are principles of the division of labour. The concept of !4arnashram! or
caste system was originally based on these principles. 5ater on, these professions emerged to
be hereditary. )rom the 6,th century -... to the later half of the 67th century /.8., the
relationships between the employer and employees were marked by ustice and e2uity.
8uring the %ughal rules, the India trade and commerce were revived. 1everal !+arkhanas!
were established at /gra, 8elhi, 5ahore, /hmedabad and various other places. 8uring early
-ritish rules, there prevailed a laissez0faire policy towards the business. The working
conditions were appalling, living conditions were sub0human and several abuses prevailed in
indigo plantations, in tea plantation.
The above conditions prevailed till the enactment of the )actory /ct of 6996.
/ccording to the /ct, the workers employed in the factories were allowed a week off0day and
provisions were also made for inspection as well as limiting he hours of work for women
workers to eleven per day. The act further provided that the minimum age of children for
employment should be seven hours and that the maximum working hours for them should not
exceed seven hours a day and that too in the day0shift. In 69:7, the first labour organization
designated as -ombay %ill Hands /ssociation was established. 1ubse2uently, in 6:7;, the
printers' , the indentured
labour system involving migration of Indian labour to other countries on contract basis was
abolished. In the same year, the .entral 5abour -oard was established to federate the
different unions in the -ombay city and the /ll India Trade .9 times, the total claimed union
membership also went up by >.@ times. In 6:A7, ,; percent of the total industrial workforce
Dr. S. P. Mishra Page 2
was claimed to be unionized. Today, the total membership is estimated to be around ,.@
million i.e., >9 percent of total workforce.
Bxplicitly, during post0independence period, the activities of &ersonnel 8epartment in
different public and private sectors have multiplied. /ccording to the provisions of section ,:
of the )actories /ct, 6:,9, it became obligatory for the0employers to employ a ?elfare
Cfficer in a factory employing ;77 or more workers. 5ikewise, section ;9 of the %ines /ct,
6:;>, empowers the 'overnment to specify employment of welfare officerDofficers. However,
it does not mean that the functions of &ersonnel 8epartment are entirely limited to welfare
activities. %anagement of human resources is being regarded as a specialized profession such
as that of medicine and law. In addition to the industrial relations functions "although
sometimes the industrial relations forms a separate department$, the &ersonnel 8epartment
is responsible for other varied functions including employment, safety, training, wage and
salary administration and research and development. The Head of the &ersonnel 8epartment
is associated with top management and helps it in the formulation of personnel policies for
the company. Indeed, the activities involved in &ersonnel 8epartment are akin to those
performed in this department in any other western countries.
Human Resource Management! "elefs
The Human #esource %anagement philosophy is based on the following beliefsE
1. Human resource is the most important asset in the organization and can be developed
and increased to an unlimited extent.
2. / healthy climate with values of openness, enthusiasm, trust, mutuality and
collaboration is essential for developing human resource.
3. H#% can be planned and monitored in ways that are beneficial both to the individuals
and the organization.
4. Bmployees feel committed to their work and the organization, if the organization
perpetuates a feeling of belongingness.
5. Bmployees feel highly motivated if the organization provides for satisfaction of their
basic and higher level needs.
6. Bmployee commitment is increased with the opportunity to discover and use one's
capabilities and potential in one's work.
=. It is every manager's responsibility to ensure the development and utilization of the
capabilities of subordinates.
DE#INITION
1ome of the definitions are as follows.
1. Human resource management "H#%$ is the function performed in organizations that
facilitates the most effective use of people "employees$ to achieve organizational and
individual goals.
Dr. S. P. Mishra Page 3
2. Human resource management "H#%$ s the management of the workforce of a
business to ensure sufficient staff levels with the right skills, properly rewarded and
motivated.
3. Human resource management "H#%$ is defined as staffing function of the
organization. It includes the activities of human resources planning, recruitment,
selection, orientation, training, performance appraisal, compensation, and safety.
H#% aims at developing people through work.
4. Human resource management "H#%$ is defined as all methods and functions
concerning the mobilization and development of personnel as human resources, with
the obective of efficiency and greater productivity in a company, government
administration, or other organization.
5. Human resource management "H#%$ encompasses those activities designed to
provide for and co0ordinate the human resources of an organization.
$ersonal management
&ersonal management is related to administrative discipline of hiring and developing
employees so that they become more valuable to the organization. It includes "6$
conducting ob analyses, ">$ planning personnel needs, and recruitment, "@$ selecting the
right people for the ob, ",$ orienting and training, ";$ determining and managing
wages and salaries, "A$ providing benefits and incentives, "=$ appraising performance, "9$
resolving disputes, ":$ communicating with all employees at all levels. It is the part of
management that is concerned with people and their relationships at work. &ersonnel
management is the responsibility of all those who manage people, as well as a
description of the work of specialists. &ersonnel managers advise on, formulate, and
implement personnel policies such as recruitment, conditions of employment,
performance appraisal, training, industrial relations, and health and safety. There are
various models of personnel management, of which human resource management is
the most recent.
Dfferences %et&een $ersonal Management '$M( ) Human Resources Management 'HRM(
/ primary goal of human resources is to enable employees to work to a maximum level
of efficiency. 1o, when a difference between personnel management F human resources is
recognized, human resources is described as much broader in scope than personnel
management.
Human resources is said to incorporate and develop personnel management tasks,
while seeking to create and develop teams of workers for the benefit of the organization.
&ersonnel management includes administrative tasks that are both traditional and
routine. It can be described as reactive, providing a response to demands and concerns as
they are presented. -y contrast, human resources involve ongoing strategies to manage and
develop an organization's workforce. It is proactive, as it involves the continuous development
of functions and policies for the purposes of improving a company(s workforce.
Dr. S. P. Mishra Page 4
&ersonnel management is considered an independent function of an organization. It is
typically the sole responsibility of an organization(s personnel department. Human resource
management, on the other hand, tends to be an integral part of overall company function.
?ith human resources, all of an organization(s managers are often involved in some manner,
and a chief goal may be to have managers of various departments develop the skills necessary
to handle personnel0related tasks.
&ersonnel management typically seeks to motivate employees with such things as
compensation, bonuses, rewards, and the simplification of work responsibilities. )rom
the personnel management point of view, employee satisfaction provides the motivation
necessary to improve ob performance. The opposite is true of human resources. Human
resource management holds that improved performance leads to employee satisfaction.
?ith human resources, work groups, effective strategies for meeting challenges, and ob
creativity are seen as the primary motivators.
There are fifteen "6;$ differences between &ersonal %anagement "&%$ and Human
#esource %anagement "H#%$. Those are as follows
6. &ersonnel mean employed persons of an organization. %anagement of these people is
&%. H#% is the management of employee(s knowledge, aptitude, abilities, talents,
creative abilities and skills D competencies
>. &% is traditional, routine, maintenance oriented, administrative function whereas H#%
is continuous, on going development function aimed at improving human processes.
@. &% is an independent function with independent sub functions. H#% follows the
system thinking approach. It is not considered in isolation from the larger organization
and must take into account the linkages and interfaces.
,. &% is treated like a less important auxiliary function whereas H#% is considered a
strategic management function
;. &% is reactive, responding to demands as and when they arise. H#% is proactive,
anticipating, planning and advancing continuously.
A. &% is the exclusive responsibility of the personnel department. H#% is a concern for
all managers in the organization and aims at developing the capabilities of all line
managers to carry out the human resource related functions.
=. The scope of &% is relatively narrow with a focus on administrative people. The scope
of H#% views the organization as a whole and lays emphasis on building a dynamic
culture.
9. &% is primarily concerned with recruitment, selection and administrative of
manpower. H#% takes effort to satisfy the human needs of the people at work that
helps to motivate people to make their best contribution.
Dr. S. P. Mishra Page 5
:. Important motivators in &% are compensation, rewards, ob simplification and so on.
H#% considers work groups, challenges and creativity on the ob as motivators.
67. In &% improved satisfaction is considered to be the cause for improved performance
but in H#% it is the other way round "performance is the cause and satisfaction is the
result$.
66. In &%, employee is treated as an economic unit as his services are exchanged for
wagesDsalary. Bmployee in H#% is treated not only as economic unit but also a social
and psychological entity.
6>. &% treats employee as a commodity or a tool or like e2uipment that can be bought
and used. Bmployee is treated as a resource and as a human being.
6@. In &% employee are considered as cost centers and therefore, management controls
the cost of labour, H#% treats employees as profit centres and therefore, the
management invests in this capital through their development and better future
utility.
6,. &%(s angle is that employees should be used mostly for organizational benefits and
profits. H#% angle emphasizes on the mutual benefits, both of employees and their
families and also the company.
6;. &% preserves information and maintains its secrecy. In H#% communication Is one of
its main tasks which take into account vertical, lateral and feedback type
communication.
8ifferences between Human #esource %anagement "H#%$ and Human #esource 8evelopment
"H#8$
6. H#% is a subset of the entire management processes of an organization. H#8 is a
subset of H#%.
>. 1cope of H#% is wider. 1cope of H#8 as compared to H#% is narrower.
@. H#% manages and develops the human elements of an organization in its entirely on
longer term basis. H#8 focuses on those learning experiences which are organized for
a specific period to bring about the desired behavioral changes.
,. H#% emphasizes that employees, their abilities and their attitudes constitute an
important organizational as well as employee(s goals. H#8 emphasizes mainly on
training and development of employees.
;. H#% takes decisions on H#8 plans. H#8 thus depends on the decisions of H#%.
Dr. S. P. Mishra Page 6
A. H#% is at its centre has H#8. H#8(s cooperation is important for overall success of
H#%. H#8 has to work within the realm of H#% and therefore, its obectives should
be in tandem with broader obectives of H#%. Thus H#% and H#8 are interdependent.
=. H#% takes care of all human needs and tries to satisfy these needs so that the
employees are motivated from all angles to contribute their best to achieve
organizational goals. H#8 focuses on upgrading the skills and competencies or the
employees in order to improve the performance of the employees on the ob.
O%*ectves of Human Resource Management
Cbectives are pre0determined goals to which individuals or group activity in an
organization is directed. 1o obectives of H#% are influenced by organizational obectives
and individual as well as social goals.
1. To help the organization reach its goals.
2. To ensure effective utilization and maximum development of human resources.
@. To ensure respect for human beings.
4. To identify and satisfy the needs of individuals.
5. To ensure reconciliation of individual goals with those of the organization.
6. To achieve and maintain high morale among employees.
7. To provide the organization with well0trained and well0motivated employees.
8. To increase to the fullest the employee's ob satisfaction and self0actualization.
9. To develop and maintain a 2uality of work life.
10. To be ethically and socially responsive to the needs of society.
11. To develop overall personality of each employee in its multidimensional aspect.
12. To enhance employee's capabilities to perform the present ob.
13. To e2uip the employees with precision and clarity in transaction of business.
6,. To inculcate the sense of team spirit, team work and inter0team collaboration.
Human Resource Management! Scope
The scope of H#% is very wide and vast, as seen in the diagram. /ll maor activities in the
working life of an employee come under preview of H#%. The activities can be broadly
divided into three groups.
1. $ersonnel aspect This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity etc.
Dr. S. P. Mishra Page 7
2. +elfare aspect It deals with working conditions and amenities such as canteens,
creches, rest and lunch rooms, housing, transport, medical assistance, education,
health and safety, recreation facilities, etc.
3. In,ustral relatons aspect This covers union0management relations, oint
consultation, collective bargaining, grievance and disciplinary procedures, settlement
of disputes, etc.
Nature of Human resource management
Human #esource %anagement is a process of bringing people and organizations together
so that the goals of each are met. The various features of H#% includeE
1. It is pervasive in nature as it is present in all enterprises.
2. Its focus is on results rather than on rules.
3. It tries to help employees develop their potential fully.
Dr. S. P. Mishra Page 8
HUMAN
RESOURCE
MANAGEMENT
Bmployee
1election
3ature
Cf H#%
Bmployee
#emuneration
Bmployee
Bducation
Bmployee
%otivation
Bmployee
Health F 1afety
4. It encourages employees to give their best to the organization.
5. It is all about people at work, both as individuals and groups.
6. It tries to put people on assigned obs in order to produce good results.
7. It helps an organization meet its goals in the future by providing for competent and
well0motivated employees.
8. It tries to build and maintain cordial relations between people working at various
levels in the organization.
:. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from
psychology, economics, etc.
HRM ! Strategc Role an, #unctons
1trategic #ole
• H#% should be strategic business partner of an organization
• 1hould support business strategies
• In addition to internally representing the employees, should have external focus
• )orward thinking and proactive
• /ssist the organization in creating and maintaining competitive edge.
• 1hould try to work as profit centre and economize its operations.
• 1hould add value to the organization.
#unctons of HRM
H#% involves two categories of function. Those are "a$ operative function and "b$
managerial function. The operative function belongs to such activities concerned with
procuring, developing, compensating, utilizing, and maintaining an efficient workforce. The
managerial functions are common to all managers and those are planning, organizing,
coordinating, directing and controlling. Cne function can not work without the other and
they are interrelated. 1o the important functions of H#% can be listed below E
6. 1taffing
%anpower or Human #esource &lanning
• Gob analysis E competency matrix
• Gob description D position description
• Gob evaluation
• 8etermination of actual number of employees needed
#ecruitment and selection of people
• /ttracting talent
• 1election process
• %otivating the talent to oin the organization
>. Training and 8evelopment
Dr. S. P. Mishra Page 9
Induction
• /cclimatization process for new employees
Training
• .ompetency mapping and gap analysis
• /ppraisal
• Training need assessment
• Training process
8evelopment
• &otential assessment
• 8evelopment process
.areer planning
• )ast track "talent management$
• 3ormal career path management
@. %otivation
/ppraisal
• /ppropriate appraisal system
• /ppraisal process
.ompetition and benefits
• 8etermination of salary and benefit packages
#ewards
• #ecognition motivation
• %onetary motivation
,. %aintenance
.ommunication
• Installing and maintaining two way communication
Health
• 8esign D selection and implementation of health schemes
1afety
• /wareness creation
• 1ystem for safe working condition
Bmployee relations
• Bstablishing fairness
• 8esigning and implementing employee relations
Dr. S. P. Mishra Page 10
5egalities
• 8ispute
• 'rievances
• . Training and development of employees
@. ?orkforce management
,. Bvaluation of employee performance
;. &romotions and transfer of employees
A. #edundancy
=. Bmployee relations
9. Crganization of data
:. Total rewards
67. .areer development
66. .ompetency mapping
6>. Time management
6@. .onfidentiality F
6,. &erformance appraisal
In order to achieve the above obectives, Human #esource %anagement undertakes
the following activitiesE
1. Human resource or manpower planning.
2. #ecruitment, selection and placement of personnel.
3. Training and development of employees.
4. /ppraisal of performance of employees.
5. Taking corrective steps such as transfer from one ob to another.
6. #emuneration of employees.
7. 1ocial security and welfare of employees.
8. 1etting general and specific management policy for organizational
relationship.
9. .ollective bargaining, contract negotiation and grievance handling.
10. 1taffing the organization.
11. /iding in the self0development of employees at all levels.
12. 8eveloping F maintaining motivation for workers by proper incentives.
Dr. S. P. Mishra Page 11
13. #eviewing and auditing manpower management in the organization
14. &otential /ppraisal. )eedback .ounseling.
15. #ole /nalysis for ob occupants.
16. Gob #otation.
6=. Huality .ircle, Crganization development and Huality of ?orking 5ife.
#actors n Human Resource Management
In the >6st century H#% will be influenced by following factors, which will work as various
issues affecting its strategyE
1. 1ize of the workforce.
2. #ising employees' expectations
3. 8rastic changes in the technology as well as 5ife0style changes.
4. .omposition of workforce. 3ew skills re2uired.
5. Bnvironmental challenges.
6. 5ean and mean organizations.
7. Impact of new economic policy. &olitical ideology of the 'overnment.
8. 8ownsizing and rightsizing of the organizations.
:. .ulture prevailing in the organization etc.
Human Resource Management! #uturstc -son
Cn the basis of the various issues and challenges the following suggestions will be of much
help to the philosophy of H#% with regard to its futuristic visionE
1. There should be a properly defined recruitment policy in the organization that should
give its focus on professional aspect and merit based selection.
2. In every decision0making process there should be given proper weightage to the aspect
that employees are involved wherever possible. It will ultimately lead to sense of
team spirit, team0work and inter0team collaboration.
3. Cpportunity and comprehensive framework should be provided for full expression of
employees' talents and manifest potentialities.
4. 3etworking skills of the organizations should be developed internally and externally as
well as horizontally and vertically.
5. )or performance appraisal of the employee(s emphasis should be given to @A7 degree
feedback which is based on the review by superiors, peers, subordinates as well as
self0review.
6. @A7 degree feedback will further lead to increased focus on customer services,
creating of highly involved workforce, decreased hierarchies, avoiding discrimination
and biases and identifying performance threshold.
Dr. S. P. Mishra Page 12
7. %ore emphasis should be given to Total Huality %anagement. TH% will cover all
employees at all levels* it will conform to customer's needs and expectations* it will
ensure effective utilization of resources and will lead towards continuous
improvement in all spheres and activities of the organization.
8. There should be focus on ob rotation so that vision and knowledge of the employees
are broadened as well as potentialities of the employees are increased for future ob
prospects.
9. )or proper utilization of manpower in the organization the concept of six sigma of
improving productivity should be intermingled in the H#% strategy.
10. The capacities of the employees should be assessed through potential appraisal for
performing new roles and responsibilities. It should not be confined to organizational
aspects only but the environmental changes of political, economic and social
considerations should also be taken into account.
66. The career of the employees should be planned in such a way that individualizing
process and socializing process come together for fusion process and career planning
should constitute the part of human resource planning.
Orgn an, gro&th of HR functon n In,a
The various stages of growth of H#% are as follows E
(1) Barly activities of H#% by +autilya E
+autilya provides a systematic treatment of management of human resources during ,th
century -... in his treatise titled !/rtha01hastra!. /s per this, there prevailed labour
organizations such as 1hreni or guild system and co0operative sector. The wages were paid
strictly in terms of 2uantity and 2uality of work. The 'overnment used to take active
interest in the operation of both public and private sector enterprises and provided well0
enunciated procedures to regulate employer0employee relationship. There were staffing
and personnel management embracing ob descriptions, 2ualifications for obs, selection
procedure, executive development, incentive systems and performance evaluation.
(2) Barly activities of H#% E
The guild system was followed by cooperative sector consisting of craftsmen and traders,
with their professional interests. /gain, there are principles of the division of labour. The
concept of !4arnashram! or caste system was originally based on these principles. 5ater
on, these professions emerged to be hereditary. )rom the 6,th century -... to the later
half of the 67th century /.8., the relationships between the employer and employees
were marked by ustice and e2uity.
(3) Bnactment of )actory /ct 6996.
There was enactment of the )actory /ct of 6996. /ccording to the /ct, the workers
employed in the factories were allowed a week off0day and provisions were also made for
Dr. S. P. Mishra Page 13
inspection as well as limiting he hours of work for women workers to eleven per day. The
act further provided that the minimum age of children for employment should be seven
hours and that the maximum working hours for them should not exceed seven hours a day
and that too in the day0shift. In 69:7, the first labour organization designated as -ombay
%ill Hands /ssociation was established. 1ubse2uently, in 6:7;, the printers' , the indentured labour system involving
migration of Indian labour to other countries on contract basis was abolished.
(4) #eport of the #oyal .ommission on 5abour.
#oyal commission on labour in India "6:>: I @6$ recommended the appointment of the
labour officer to deal with selection and recruitment of labours. This is followed by
establishment of The .entral 5abour -oard to federate the different unions in the -ombay
city and the /ll India Trade
Human resources is a term used to refer to how people are managed by organizations. It was basically a traditionally administrative function but with time it focuses and recognizes talented and engaged people and organizational success.
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
The Concept of Human Resource Management
Human resources is a term used to refer to how people are managed by organizations.
It was basically a traditionally administrative function but with time it focuses and recognizes
talented and engaged people and organizational success. Human resources has at least two
related interpretations depending on context. The original usage was traditionally called
labour. It is a measure of the work done by human beings. This perspective is changing as a
function of new and ongoing research into more strategic approaches. This first usage is used
more in terms of 'human resources development', and can go beyond ust organizations to the
level of national importance. The more traditional usage within corporations and businesses
refers to the individuals within a firm or agency, and to the portion of the organization that
deals with hiring, firing, training, and other personnel issues, typically referred to as 'human
resources management'.
The terms !human resource management! and !human resources! "H#$ have largely
replaced the term !personnel management! as a description of the processes involved in
managing people in organizations. In simple sense, H#% means employing people, developing
their resources, !personnel management! as a description of the processes involved in
managing people in organizations.
Human resource management is to maximize the return on investment from the
organization's human capital and minimize financial risk. &resently Human #esource
%anagement is an integral but distinctive part of management. Its obective is the
maintenance of better human relations in the organization by the development, application
and evaluation of policies, procedures and programs relating to human resources to optimize
their contribution towards the realization of organizational obectives. H#% helps in attaining
maximum individual development, desirable working relationship between employees and
employers, employees and employees, and effective modeling of human resources as
contrasted with physical resources. It is the recruitment, selection, development, utilization,
compensation and motivation of human resources by the organization.
'enerally, human resource management refers to the management of the entire
workforce of an organization in a reliable, honest and professional manner. It is the
responsibility of human resource managers in a corporate context to conduct these activities
in an effective, legal, fair, and consistent manner. That(s why the demand of Human
#esource "H#$ management has been dramatically increased these days. )rom corporate
sector to banking industry, from non profit organizations to human protection groups, from IT
solution companies to printing industry* human resource management is playing a critical role
in all the other sectors of the economy.
Dr. S. P. Mishra Page 1
Evoluton of Human resource management
+autilya provides a systematic treatment of management of human resources as early
as ,th century -... in his treatise titled !/rtha01hastra!. There prevailed logical procedures
and principles in respect of labour organizations such as 1hreni or guild system and co0
operative sector. The wages were paid strictly in terms of 2uantity and 2uality of work turned
out and punishment were imposed for unnecessarily delaying the work or spoiling it. The
'overnment used to take active interest in the operation of both public and private sector
enterprises and provided well0enunciated procedures to regulate employer0employee
relationship. +autilya provides an excellent discussion on staffing and personnel management
embracing ob descriptions, 2ualifications for obs, selection procedure, executive
development, incentive systems and performance evaluation. In course of time, the guild
system was followed by cooperative sector consisting of craftsmen and traders, and
purporting to promote their professional interests. 3umerous professional societies were
formed. /gain, there are principles of the division of labour. The concept of !4arnashram! or
caste system was originally based on these principles. 5ater on, these professions emerged to
be hereditary. )rom the 6,th century -... to the later half of the 67th century /.8., the
relationships between the employer and employees were marked by ustice and e2uity.
8uring the %ughal rules, the India trade and commerce were revived. 1everal !+arkhanas!
were established at /gra, 8elhi, 5ahore, /hmedabad and various other places. 8uring early
-ritish rules, there prevailed a laissez0faire policy towards the business. The working
conditions were appalling, living conditions were sub0human and several abuses prevailed in
indigo plantations, in tea plantation.
The above conditions prevailed till the enactment of the )actory /ct of 6996.
/ccording to the /ct, the workers employed in the factories were allowed a week off0day and
provisions were also made for inspection as well as limiting he hours of work for women
workers to eleven per day. The act further provided that the minimum age of children for
employment should be seven hours and that the maximum working hours for them should not
exceed seven hours a day and that too in the day0shift. In 69:7, the first labour organization
designated as -ombay %ill Hands /ssociation was established. 1ubse2uently, in 6:7;, the
printers' , the indentured
labour system involving migration of Indian labour to other countries on contract basis was
abolished. In the same year, the .entral 5abour -oard was established to federate the
different unions in the -ombay city and the /ll India Trade .9 times, the total claimed union
membership also went up by >.@ times. In 6:A7, ,; percent of the total industrial workforce
Dr. S. P. Mishra Page 2
was claimed to be unionized. Today, the total membership is estimated to be around ,.@
million i.e., >9 percent of total workforce.
Bxplicitly, during post0independence period, the activities of &ersonnel 8epartment in
different public and private sectors have multiplied. /ccording to the provisions of section ,:
of the )actories /ct, 6:,9, it became obligatory for the0employers to employ a ?elfare
Cfficer in a factory employing ;77 or more workers. 5ikewise, section ;9 of the %ines /ct,
6:;>, empowers the 'overnment to specify employment of welfare officerDofficers. However,
it does not mean that the functions of &ersonnel 8epartment are entirely limited to welfare
activities. %anagement of human resources is being regarded as a specialized profession such
as that of medicine and law. In addition to the industrial relations functions "although
sometimes the industrial relations forms a separate department$, the &ersonnel 8epartment
is responsible for other varied functions including employment, safety, training, wage and
salary administration and research and development. The Head of the &ersonnel 8epartment
is associated with top management and helps it in the formulation of personnel policies for
the company. Indeed, the activities involved in &ersonnel 8epartment are akin to those
performed in this department in any other western countries.
Human Resource Management! "elefs
The Human #esource %anagement philosophy is based on the following beliefsE
1. Human resource is the most important asset in the organization and can be developed
and increased to an unlimited extent.
2. / healthy climate with values of openness, enthusiasm, trust, mutuality and
collaboration is essential for developing human resource.
3. H#% can be planned and monitored in ways that are beneficial both to the individuals
and the organization.
4. Bmployees feel committed to their work and the organization, if the organization
perpetuates a feeling of belongingness.
5. Bmployees feel highly motivated if the organization provides for satisfaction of their
basic and higher level needs.
6. Bmployee commitment is increased with the opportunity to discover and use one's
capabilities and potential in one's work.
=. It is every manager's responsibility to ensure the development and utilization of the
capabilities of subordinates.
DE#INITION
1ome of the definitions are as follows.
1. Human resource management "H#%$ is the function performed in organizations that
facilitates the most effective use of people "employees$ to achieve organizational and
individual goals.
Dr. S. P. Mishra Page 3
2. Human resource management "H#%$ s the management of the workforce of a
business to ensure sufficient staff levels with the right skills, properly rewarded and
motivated.
3. Human resource management "H#%$ is defined as staffing function of the
organization. It includes the activities of human resources planning, recruitment,
selection, orientation, training, performance appraisal, compensation, and safety.
H#% aims at developing people through work.
4. Human resource management "H#%$ is defined as all methods and functions
concerning the mobilization and development of personnel as human resources, with
the obective of efficiency and greater productivity in a company, government
administration, or other organization.
5. Human resource management "H#%$ encompasses those activities designed to
provide for and co0ordinate the human resources of an organization.
$ersonal management
&ersonal management is related to administrative discipline of hiring and developing
employees so that they become more valuable to the organization. It includes "6$
conducting ob analyses, ">$ planning personnel needs, and recruitment, "@$ selecting the
right people for the ob, ",$ orienting and training, ";$ determining and managing
wages and salaries, "A$ providing benefits and incentives, "=$ appraising performance, "9$
resolving disputes, ":$ communicating with all employees at all levels. It is the part of
management that is concerned with people and their relationships at work. &ersonnel
management is the responsibility of all those who manage people, as well as a
description of the work of specialists. &ersonnel managers advise on, formulate, and
implement personnel policies such as recruitment, conditions of employment,
performance appraisal, training, industrial relations, and health and safety. There are
various models of personnel management, of which human resource management is
the most recent.
Dfferences %et&een $ersonal Management '$M( ) Human Resources Management 'HRM(
/ primary goal of human resources is to enable employees to work to a maximum level
of efficiency. 1o, when a difference between personnel management F human resources is
recognized, human resources is described as much broader in scope than personnel
management.
Human resources is said to incorporate and develop personnel management tasks,
while seeking to create and develop teams of workers for the benefit of the organization.
&ersonnel management includes administrative tasks that are both traditional and
routine. It can be described as reactive, providing a response to demands and concerns as
they are presented. -y contrast, human resources involve ongoing strategies to manage and
develop an organization's workforce. It is proactive, as it involves the continuous development
of functions and policies for the purposes of improving a company(s workforce.
Dr. S. P. Mishra Page 4
&ersonnel management is considered an independent function of an organization. It is
typically the sole responsibility of an organization(s personnel department. Human resource
management, on the other hand, tends to be an integral part of overall company function.
?ith human resources, all of an organization(s managers are often involved in some manner,
and a chief goal may be to have managers of various departments develop the skills necessary
to handle personnel0related tasks.
&ersonnel management typically seeks to motivate employees with such things as
compensation, bonuses, rewards, and the simplification of work responsibilities. )rom
the personnel management point of view, employee satisfaction provides the motivation
necessary to improve ob performance. The opposite is true of human resources. Human
resource management holds that improved performance leads to employee satisfaction.
?ith human resources, work groups, effective strategies for meeting challenges, and ob
creativity are seen as the primary motivators.
There are fifteen "6;$ differences between &ersonal %anagement "&%$ and Human
#esource %anagement "H#%$. Those are as follows
6. &ersonnel mean employed persons of an organization. %anagement of these people is
&%. H#% is the management of employee(s knowledge, aptitude, abilities, talents,
creative abilities and skills D competencies
>. &% is traditional, routine, maintenance oriented, administrative function whereas H#%
is continuous, on going development function aimed at improving human processes.
@. &% is an independent function with independent sub functions. H#% follows the
system thinking approach. It is not considered in isolation from the larger organization
and must take into account the linkages and interfaces.
,. &% is treated like a less important auxiliary function whereas H#% is considered a
strategic management function
;. &% is reactive, responding to demands as and when they arise. H#% is proactive,
anticipating, planning and advancing continuously.
A. &% is the exclusive responsibility of the personnel department. H#% is a concern for
all managers in the organization and aims at developing the capabilities of all line
managers to carry out the human resource related functions.
=. The scope of &% is relatively narrow with a focus on administrative people. The scope
of H#% views the organization as a whole and lays emphasis on building a dynamic
culture.
9. &% is primarily concerned with recruitment, selection and administrative of
manpower. H#% takes effort to satisfy the human needs of the people at work that
helps to motivate people to make their best contribution.
Dr. S. P. Mishra Page 5
:. Important motivators in &% are compensation, rewards, ob simplification and so on.
H#% considers work groups, challenges and creativity on the ob as motivators.
67. In &% improved satisfaction is considered to be the cause for improved performance
but in H#% it is the other way round "performance is the cause and satisfaction is the
result$.
66. In &%, employee is treated as an economic unit as his services are exchanged for
wagesDsalary. Bmployee in H#% is treated not only as economic unit but also a social
and psychological entity.
6>. &% treats employee as a commodity or a tool or like e2uipment that can be bought
and used. Bmployee is treated as a resource and as a human being.
6@. In &% employee are considered as cost centers and therefore, management controls
the cost of labour, H#% treats employees as profit centres and therefore, the
management invests in this capital through their development and better future
utility.
6,. &%(s angle is that employees should be used mostly for organizational benefits and
profits. H#% angle emphasizes on the mutual benefits, both of employees and their
families and also the company.
6;. &% preserves information and maintains its secrecy. In H#% communication Is one of
its main tasks which take into account vertical, lateral and feedback type
communication.
8ifferences between Human #esource %anagement "H#%$ and Human #esource 8evelopment
"H#8$
6. H#% is a subset of the entire management processes of an organization. H#8 is a
subset of H#%.
>. 1cope of H#% is wider. 1cope of H#8 as compared to H#% is narrower.
@. H#% manages and develops the human elements of an organization in its entirely on
longer term basis. H#8 focuses on those learning experiences which are organized for
a specific period to bring about the desired behavioral changes.
,. H#% emphasizes that employees, their abilities and their attitudes constitute an
important organizational as well as employee(s goals. H#8 emphasizes mainly on
training and development of employees.
;. H#% takes decisions on H#8 plans. H#8 thus depends on the decisions of H#%.
Dr. S. P. Mishra Page 6
A. H#% is at its centre has H#8. H#8(s cooperation is important for overall success of
H#%. H#8 has to work within the realm of H#% and therefore, its obectives should
be in tandem with broader obectives of H#%. Thus H#% and H#8 are interdependent.
=. H#% takes care of all human needs and tries to satisfy these needs so that the
employees are motivated from all angles to contribute their best to achieve
organizational goals. H#8 focuses on upgrading the skills and competencies or the
employees in order to improve the performance of the employees on the ob.
O%*ectves of Human Resource Management
Cbectives are pre0determined goals to which individuals or group activity in an
organization is directed. 1o obectives of H#% are influenced by organizational obectives
and individual as well as social goals.
1. To help the organization reach its goals.
2. To ensure effective utilization and maximum development of human resources.
@. To ensure respect for human beings.
4. To identify and satisfy the needs of individuals.
5. To ensure reconciliation of individual goals with those of the organization.
6. To achieve and maintain high morale among employees.
7. To provide the organization with well0trained and well0motivated employees.
8. To increase to the fullest the employee's ob satisfaction and self0actualization.
9. To develop and maintain a 2uality of work life.
10. To be ethically and socially responsive to the needs of society.
11. To develop overall personality of each employee in its multidimensional aspect.
12. To enhance employee's capabilities to perform the present ob.
13. To e2uip the employees with precision and clarity in transaction of business.
6,. To inculcate the sense of team spirit, team work and inter0team collaboration.
Human Resource Management! Scope
The scope of H#% is very wide and vast, as seen in the diagram. /ll maor activities in the
working life of an employee come under preview of H#%. The activities can be broadly
divided into three groups.
1. $ersonnel aspect This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity etc.
Dr. S. P. Mishra Page 7
2. +elfare aspect It deals with working conditions and amenities such as canteens,
creches, rest and lunch rooms, housing, transport, medical assistance, education,
health and safety, recreation facilities, etc.
3. In,ustral relatons aspect This covers union0management relations, oint
consultation, collective bargaining, grievance and disciplinary procedures, settlement
of disputes, etc.
Nature of Human resource management
Human #esource %anagement is a process of bringing people and organizations together
so that the goals of each are met. The various features of H#% includeE
1. It is pervasive in nature as it is present in all enterprises.
2. Its focus is on results rather than on rules.
3. It tries to help employees develop their potential fully.
Dr. S. P. Mishra Page 8
HUMAN
RESOURCE
MANAGEMENT
Bmployee
1election
3ature
Cf H#%
Bmployee
#emuneration
Bmployee
Bducation
Bmployee
%otivation
Bmployee
Health F 1afety
4. It encourages employees to give their best to the organization.
5. It is all about people at work, both as individuals and groups.
6. It tries to put people on assigned obs in order to produce good results.
7. It helps an organization meet its goals in the future by providing for competent and
well0motivated employees.
8. It tries to build and maintain cordial relations between people working at various
levels in the organization.
:. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from
psychology, economics, etc.
HRM ! Strategc Role an, #unctons
1trategic #ole
• H#% should be strategic business partner of an organization
• 1hould support business strategies
• In addition to internally representing the employees, should have external focus
• )orward thinking and proactive
• /ssist the organization in creating and maintaining competitive edge.
• 1hould try to work as profit centre and economize its operations.
• 1hould add value to the organization.
#unctons of HRM
H#% involves two categories of function. Those are "a$ operative function and "b$
managerial function. The operative function belongs to such activities concerned with
procuring, developing, compensating, utilizing, and maintaining an efficient workforce. The
managerial functions are common to all managers and those are planning, organizing,
coordinating, directing and controlling. Cne function can not work without the other and
they are interrelated. 1o the important functions of H#% can be listed below E
6. 1taffing
%anpower or Human #esource &lanning
• Gob analysis E competency matrix
• Gob description D position description
• Gob evaluation
• 8etermination of actual number of employees needed
#ecruitment and selection of people
• /ttracting talent
• 1election process
• %otivating the talent to oin the organization
>. Training and 8evelopment
Dr. S. P. Mishra Page 9
Induction
• /cclimatization process for new employees
Training
• .ompetency mapping and gap analysis
• /ppraisal
• Training need assessment
• Training process
8evelopment
• &otential assessment
• 8evelopment process
.areer planning
• )ast track "talent management$
• 3ormal career path management
@. %otivation
/ppraisal
• /ppropriate appraisal system
• /ppraisal process
.ompetition and benefits
• 8etermination of salary and benefit packages
#ewards
• #ecognition motivation
• %onetary motivation
,. %aintenance
.ommunication
• Installing and maintaining two way communication
Health
• 8esign D selection and implementation of health schemes
1afety
• /wareness creation
• 1ystem for safe working condition
Bmployee relations
• Bstablishing fairness
• 8esigning and implementing employee relations
Dr. S. P. Mishra Page 10
5egalities
• 8ispute
• 'rievances
• . Training and development of employees
@. ?orkforce management
,. Bvaluation of employee performance
;. &romotions and transfer of employees
A. #edundancy
=. Bmployee relations
9. Crganization of data
:. Total rewards
67. .areer development
66. .ompetency mapping
6>. Time management
6@. .onfidentiality F
6,. &erformance appraisal
In order to achieve the above obectives, Human #esource %anagement undertakes
the following activitiesE
1. Human resource or manpower planning.
2. #ecruitment, selection and placement of personnel.
3. Training and development of employees.
4. /ppraisal of performance of employees.
5. Taking corrective steps such as transfer from one ob to another.
6. #emuneration of employees.
7. 1ocial security and welfare of employees.
8. 1etting general and specific management policy for organizational
relationship.
9. .ollective bargaining, contract negotiation and grievance handling.
10. 1taffing the organization.
11. /iding in the self0development of employees at all levels.
12. 8eveloping F maintaining motivation for workers by proper incentives.
Dr. S. P. Mishra Page 11
13. #eviewing and auditing manpower management in the organization
14. &otential /ppraisal. )eedback .ounseling.
15. #ole /nalysis for ob occupants.
16. Gob #otation.
6=. Huality .ircle, Crganization development and Huality of ?orking 5ife.
#actors n Human Resource Management
In the >6st century H#% will be influenced by following factors, which will work as various
issues affecting its strategyE
1. 1ize of the workforce.
2. #ising employees' expectations
3. 8rastic changes in the technology as well as 5ife0style changes.
4. .omposition of workforce. 3ew skills re2uired.
5. Bnvironmental challenges.
6. 5ean and mean organizations.
7. Impact of new economic policy. &olitical ideology of the 'overnment.
8. 8ownsizing and rightsizing of the organizations.
:. .ulture prevailing in the organization etc.
Human Resource Management! #uturstc -son
Cn the basis of the various issues and challenges the following suggestions will be of much
help to the philosophy of H#% with regard to its futuristic visionE
1. There should be a properly defined recruitment policy in the organization that should
give its focus on professional aspect and merit based selection.
2. In every decision0making process there should be given proper weightage to the aspect
that employees are involved wherever possible. It will ultimately lead to sense of
team spirit, team0work and inter0team collaboration.
3. Cpportunity and comprehensive framework should be provided for full expression of
employees' talents and manifest potentialities.
4. 3etworking skills of the organizations should be developed internally and externally as
well as horizontally and vertically.
5. )or performance appraisal of the employee(s emphasis should be given to @A7 degree
feedback which is based on the review by superiors, peers, subordinates as well as
self0review.
6. @A7 degree feedback will further lead to increased focus on customer services,
creating of highly involved workforce, decreased hierarchies, avoiding discrimination
and biases and identifying performance threshold.
Dr. S. P. Mishra Page 12
7. %ore emphasis should be given to Total Huality %anagement. TH% will cover all
employees at all levels* it will conform to customer's needs and expectations* it will
ensure effective utilization of resources and will lead towards continuous
improvement in all spheres and activities of the organization.
8. There should be focus on ob rotation so that vision and knowledge of the employees
are broadened as well as potentialities of the employees are increased for future ob
prospects.
9. )or proper utilization of manpower in the organization the concept of six sigma of
improving productivity should be intermingled in the H#% strategy.
10. The capacities of the employees should be assessed through potential appraisal for
performing new roles and responsibilities. It should not be confined to organizational
aspects only but the environmental changes of political, economic and social
considerations should also be taken into account.
66. The career of the employees should be planned in such a way that individualizing
process and socializing process come together for fusion process and career planning
should constitute the part of human resource planning.
Orgn an, gro&th of HR functon n In,a
The various stages of growth of H#% are as follows E
(1) Barly activities of H#% by +autilya E
+autilya provides a systematic treatment of management of human resources during ,th
century -... in his treatise titled !/rtha01hastra!. /s per this, there prevailed labour
organizations such as 1hreni or guild system and co0operative sector. The wages were paid
strictly in terms of 2uantity and 2uality of work. The 'overnment used to take active
interest in the operation of both public and private sector enterprises and provided well0
enunciated procedures to regulate employer0employee relationship. There were staffing
and personnel management embracing ob descriptions, 2ualifications for obs, selection
procedure, executive development, incentive systems and performance evaluation.
(2) Barly activities of H#% E
The guild system was followed by cooperative sector consisting of craftsmen and traders,
with their professional interests. /gain, there are principles of the division of labour. The
concept of !4arnashram! or caste system was originally based on these principles. 5ater
on, these professions emerged to be hereditary. )rom the 6,th century -... to the later
half of the 67th century /.8., the relationships between the employer and employees
were marked by ustice and e2uity.
(3) Bnactment of )actory /ct 6996.
There was enactment of the )actory /ct of 6996. /ccording to the /ct, the workers
employed in the factories were allowed a week off0day and provisions were also made for
Dr. S. P. Mishra Page 13
inspection as well as limiting he hours of work for women workers to eleven per day. The
act further provided that the minimum age of children for employment should be seven
hours and that the maximum working hours for them should not exceed seven hours a day
and that too in the day0shift. In 69:7, the first labour organization designated as -ombay
%ill Hands /ssociation was established. 1ubse2uently, in 6:7;, the printers' , the indentured labour system involving
migration of Indian labour to other countries on contract basis was abolished.
(4) #eport of the #oyal .ommission on 5abour.
#oyal commission on labour in India "6:>: I @6$ recommended the appointment of the
labour officer to deal with selection and recruitment of labours. This is followed by
establishment of The .entral 5abour -oard to federate the different unions in the -ombay
city and the /ll India Trade