The term HRM is a relatively new term emerged during the 1970s.

It is now used as a better and meaningful substitute to personnel management. HRM is wider in scope and has its distinct philosophy. The importance of personnel/human resources management is now universally accepted and India is not an exception to this rule.

In India, large business enterprises, public sector enterprises and even medium and small enterprises appoint personnel manager or human resources development (HRD) manager to look after the personnel functions such as recruitment, promotions and transfers, training and manpower development, provision of welfare facilities, compensation management and so on.

The process of industrial development started in India rather late. It was during the British Rule and that too after the First World War that textile, jute, iron and steel and other organized industries started in India. Recruitment, wage payment, welfare facilities and other personnel problems were noted only when labour class was employed on a large scale in the industrial sector. This is the starting period for personnel management in India.

As compared to India, the industrial growth was rapid in Europe. As a result, the concept of personnel functions and personnel management made rapid progress. The concept of personnel management function in India is based on similar concept developed in Europe much earlier.

The personnel function in India has been the product(outcome) of various factors such as industrial growth, labour, legislation, exploitation of workers in the early period and their demand for certain basic necessities of life. (e.g. fair wage, weekly holiday, essential facilities at the work place) The need for labour officers in Indian industry was felt/realized as early as 1929 for the protection of labour force in industrial units.

In 1931, the members of Bombay Mill owners' Association appointed Labour Officers in their textile mills (on voluntary basis) for the settlement of grievances and disputes of employees.
Similar arrangement was introduced in the jute mills in Bengal (under the leadership of Jute Mills Association). The labour welfare officers were given the responsibility to promote sports and welfare activities and provide food shops (canteen facility) to workers.

After Independence, many pro labour legislations were made for the protection and welfare of workers. The scope of personnel management function was made more broad and liberal. Many provisions regarding recruitment, salary payment and conditions of service were laid down. This gave recognition to the personnel management function in the industrial establishments.

Gradually, the need of personnel management and its role in cordial labour relations and fair treatment to employees need were recognized by industrial organizations. Personnel departments under the leadership of personnel managers were started in the companies. Liberal welfare facilities were introduced for the benefit of employees.

Training and manpower development programmes added new dimensions to the activities of personnel management. Many companies have now, prepared well-defined personnel policies, grievance and other procedures and liberal package of welfare facilities. Such additional activities/functions under personnel management raised the importance and popularity of personnel department.

Dimension

Personnel Management

HRM

1. Employment contract Careful delineation of Aims to go beyond written contracts contract. 2. Rules Importance of devising Can do, outlook, clear rules impatience with rule Business need and Values/mission

3. Guide to management Procedures action 4. Behaviour referent Norms/ customs practices

5. Managerial task vis-- Monitoring vis labour

Nurturing

Dimension
6. Key relations 7. Initiatives

Personnel Management
Labour management Piecemeal

HRM
Customer Integrated

8. Speed of decision
9. Management role 10. Communication

Slow
Transactional Indirect

Fast
Transformational leadership Direct Facilitation Integrated, key task Performance related

11. Prized management Negotiation skills 12. Selection Separate, marginal task 13. Pay Job evaluation

14. Conditions

Separately negotiated

Harmonization

15. Labour management

16. Job categories grades 17. Job design 18. Conflict handling 19. Training development

Collective-bargaining contracts and Many

Division of labour Reach temporary truce and Controlled courses access

Individual contracts
Few Team work Manage climate and culture to Learning companies Wide ranging structural and strategies cultural, personnel

20. Focus of attention for Personnel procedures interventions 21. Respect for employees

Labour is treated as a tool People are treated as assets to which is expendable and be used for the benefit of an replaceable organization, its employees and the society as a whole Interests organization uppermost Precedes HRM of the Mutuality of interests are Latest in the evolution of the subject

22. Shared interest

23. Evolution

The Management of Human Resource is viewed

as a system in which participants seeks to attain both individual of group goals

Which means that the personnel Management involves procedures and practices through which Human Resource are managed (i.e. organized & directed) towards the attainment of individual ,social and organizational goals.

Human resource involves all management decisions and practices that directly affect or influence the people, or human Resource who work for the organization.

Human Resource Management is the systematic planning, development and control of a network of interrelated process affecting and involving all members of an organization

Human Resource is the Planning, organizing, directing and controlling of the procured development, compensation, integration, maintenance and separation of human resource to the end that individual, organizational and societal objectives are accomplished.

Personnel Management is the recruitment, selection, development, utilization of and accommodation to human resources by organizations. The human Resource of an organization consists of all individuals regardless of their role, who are engaged in any of the organizations activities.

1. Welfare Aspect :-Concerned with working conditions and amenities such as canteens, crches, housing, personal problems of workers, schools and recreations 2. Labor or personnel Aspect:- Concerned with Recruitment, Placement of Employees, remuneration, promotion, incentives, Productivity etc. 3.Industrial Relations Aspect:-Concerned with trade Union negotiations, settlement of industrial disputes, joint consultation and collective bargaining.

1.HRM is concerned with Managing People at work. It covers all the levels of personnel, including blue collared employees and the white collared employees 2. It is concerned with employees, both as individuals as well as groups. 3.HRM is concerned with helping the employees to develop their potentialities and capacities to the maximum possible extent, so that they derive great satisfaction from their Jobs

4. It is the major part of the general management function and has roots and branches extending throughout and beyond each organization 5.Human Resource continuous Nature Management is of

6.Human Resource Management attempts at getting the willing Co operations of the people for the attainment of the desired goal.

Objectives are predetermined ends or goals at which individual or group activity in an organisation is aimed. Objectives can be divided Into two parts:1. Primary Objectives 2. Secondary Objectives

1.HRMs main goal is the creation of a workforce with the ability and motivation to accomplish the basic organizational goals 2.They relate to the satisfaction of the personnel objectives of the members of the organization through monetary and non monetary devices.

3.They relate to the satisfaction of the community and social objectives, such as serving the customers honestly, promoting a higher standard of living in the community, bringing comfort and happiness to the society, protecting women and children and providing for the aged personnel. 4. To utilize human resource effectively.

5.To establish and maintain a productive and self respecting relationship among all members of an organization.

6.To establish and maintain organizational structure.

an

adequate

7.To bring about maximum individual development of the members of an organization

8. To maintain a high morale and better human relations inside the organization by sustaining and improving the conditions which have been established so that employees may stick to their jobs for a longer period

The secondary objectives aim at achieving the primary objectives economically, efficiently and effectively.

A personnel manager has to perform the basic functions of management. These managerial functions include' planning, organizing, directing and controlling personnel. In brief, personnel management involves the following operational functions

The operative functions of the department are: procurement of staff,

development of staff through training, payment of compensation to staff i.e. wages and salaries, integration of manpower i.e. fair reconciliation of individual, social and organizational goals and interests maintenance of staff i.e. providing them safety at the work place and also to offer welfare facilities and conveniences to employees.

Procurement of manpower: Procurement means acquiring the manpower required by an organization from time-to-time. The basic Principle in procurement is "right man for the right job". The procurement function includes manpower planning and forecasting, recruitment, selection, appointment, placement and induction of employees so as to have a team of efficient and capable employees for the benefits of the organization. Even promotions and transfers are covered by this broad personnel function.

Development of manpower: Development of manpower (human resource development) means planning and execution of the training programmes for all categories of employees in order to develop new skills and qualities required for working at the higher level. Manpower development is possible through training and career development programmes and not simply by offering attractive wages to workers. Executive development programmes are introduced for the benefit of higher-level managers Similarly; future manpower requirement will be, met internally through HRD programmes. It aims at educating and training employees for the improvement of overall performance of an organization. HRD (Human Resource Development) programmes are for education, training and development of existing manpower in an organization. This is for facing new problems and challenges likely to develop in the near future.

Provision of welfare facilities: Employees are offered various welfare facilities. They include medical, educational, recreation, housing, transport and so on.

Compensation payment to manpower employed: One function of HRM is to pay compensation (in monetary form) to employees for the services rendered. For this, a fair system of remuneration payment (wages and salaries) needs to be introduced. Remuneration to employees should be attractive so that the labour force will be satisfied and disputes, etc. will be minimized. Fair wage payment acts as a motivating factor.

Integration of interests of manpower and the organization: Manpower is interested in wage payment while organization is interested in higher profits, consumer loyalty, market reputation and so on. HRM has to reconcile the interests of the individual members of the organization with those of the organization.

Maintenance of manpower: This manpower function relating to maintaining satisfied manpower in the organization through the provision of welfare facilities. For this, attention needs to be given to health and safety measures, maintenance of proper working conditions at the work place, provision of welfare facilities and other non-monetary benefits so as to create efficient and satisfied labour force with high morale. Even collective bargaining and workers participation come within this broad personnel function.

Misc. functions: Misc functions under HRM include maintenance of service records of employees (which are used for promotions/transfers performance appraisal, etc.), promotions and transfers of employees, maintaining cordial industrial relations, introduction of rational grievance procedure, performance evaluation of employees, career planning of employees, maintenance of discipline, administering the policies with regard to disciplinary action and compliance of various labour laws.

With organizations achieving a HRD climate, a basic source of human motivation to perform higher, human wastage has been reduced. So, whereas personnel management regarded wages and salaries as the main source of motivation, Human Resource Management (HRM) regards creation of a congenial work climate (HRD climate), job challenges, creativity and opportunity for development as the motivating forces.