Management of

Human Resource
MGT 315
BBA 5th Semester
Human Resource Management
concept
An organization consists of people with formally assigned
roles who work together to achieve the organizations
goals.
A manager is the person responsible for accomplishing
the organizations goals, who does so by managing the
efforts of the organizations people. Thus, Human
resource management (HRM ) is concerned with the
people dimension in management.
When People becomes Human
Resource ?
People becomes human resource when they have:
Physical strength,
Energy,
Knowledge,
Skills to achieve results,
Attitudes to perform according to the job requirement and
Potential to face challenges and take responsibilities
HRM Definition
Gary Dessler Human resource Management refers to
the policies and practices involved in carrying out the
people or Human resource aspects of a management
position, including recruiting, screening, training,
rewarding and appraising.

Decenzo and Robbins Human Resource Management is

comprised of the acquisition , development, motivation
and maintenance function
Function of HRM

Acquisition
Acquisition

Maintenance
Maintenance Function Development
Development
of HRM

Motivation
Motivation
1. Acquisition Functions
Acquisition function begins with planning
Human Resource in organization for
current (present ) and future need. This
includes the estimation of demands and
supplies of labor. Acquisition also includes
Recruitment, Selection and Socialization
of employees.
2. Development function
Development function has 3 dimension
Employee training: it emphasizes skill
development and changing of attitudes among
workers.
Management development: It helps to
enhance ability of the executive to develop
their potential for future job responsibilities.
Career development: it is the continual effort
to match long term individual needs and
organizational need.
3. Motivation function
It includes Job satisfaction, Performance
appraisal, behavioral and structural
techniques for simulating worker
performance, reward to performance ,
compensation and benefits administration,
Handling of employees problem.
4. Maintenance function

Employee Discipline: Punctuality at work,

Labor Relation
Employee welfare
HRM System
External environment

Input Processing Output

Organizational Related
Energy & Acquisition Goal achievement
Competencies Development Quality of work life
Organization Motivation Productivity
Plan Maintenance
Profits
Employee Related
Human Employee
Resource commitment
Inventory Employee harmony
Labor Market Cost effectiveness

Feedback
Internal environment
Internal Environment

Business Strategy
HR Strategy
Organization Structure
Organizational Culture
Trade Union
Internal Environment
i. Business Strategy:
A business strategy refers to the competitive efforts and
business approaches that managers employ to please
customers, compete successfully, and achieve
organizational objectives. Some typical business
strategies include innovation strategy, quality strategy,
cost reduction strategy etc. Different strategy has
different implications on HRM practices. For instance,
innovation strategy requires investing more on R&D and
creative and talented people.
Internal Environment
ii. HR Strategy :
Influenced by the external environmental
forces and the business strategy itself, HR
strategy includes the components such as
organizations HR mission, objectives and
policies. Obviously, HR mission, objectives
and policies have direct impact over HR
practices.
Internal Environment
iii. Organization Structure:
Organization structure determines not only the
authority-responsibility relationship but also the
number of people required, their skills and
competencies. The number of people required,
their reporting relationship, skills and
competences ultimately influence HR practices
such as recruitment, selection, training and
development etc.
Internal Environment
iv. Organizational Culture:
Every organization has its own
culture, i.e., shared belief and
common way of doing things.
Different cultures have different
implications to HR practices.
Internal Environment
v. Trade Union:
Trade unions are voluntary organizations
of generally the workers formed to
promote and protect their interests
through collective actions. Trade unions
also influence different HRM practices
such as administration of rules, wages and
security system etc.
External Environment
( PEST )
Political & Economical Environment
Social Cultural Environment
Technological Environment
External Environment
i. Political Environment:
Political environment refers to the factors surrounding to
power equation, politics, and government laws, rules and
regulations. Political environment determines the degree of
autonomy that organizations enjoy in the choice of HR
practices. This includes the economic policies, economic
dimensions (such as productivity, per capita income, labor
costs etc.) and other economic situations. These factors also
have impact over the HRM policies and practices of an
organization.
External Environment
ii. Socio-cultural Environment:
It comprises the social norms, values,
beliefs, attitude towards work hours &
work shift, education status etc. All these
have significant impact over HR practices
such as selection and rewards.
External Environment
iii. Technological Environment:
It comprises the level of technology,
technological innovation, technology transfer
etc. These factors also influence the HR practices
such as training and development in the world
of new technology.
Changing dimensions of HRM
HRM is a dynamic subject. It has passed several development
stage or dimension. These development can be viewed in 2
dimension.

HRM
Dimensions

Growth Functional
Stage Focus
Changing dimension in term of
Growth Stage

Welfare management dimension

Personal management dimension

HRM dimension

Strategic HRM(SHRM) dimension

Welfare management
dimension
This is the first stage or pre stage of evolution of personal
management. This dimension was popular between 1900 to
1920s.
This dimension focus only towards avoiding child labour,
emphasizing human needs, setting work hours, cleanliness &
hygiene , providing basic facilities, etc.
Personnel management
dimension
Personnel management can be defined as obtaining, using
and maintaining a satisfied workforce. It is a significant
part of management concerned with employees at work
and with their relationship within the organization.
This dimension is popular between 1920s to 1940s.
It focus only towards planning, organizing, compensation,
integration and maintenance of people for the purpose of
contributing to organizational, individual and societal
goals.
HRM Dimension
This is the 3rd stage and also know as HRM Stage.
The foundation of HRM is derived from personnel
management.
There are several difference between Personnel management
and HRM.
It is the process of the acquisition , development, motivation and
maintenance function
It is long term oriented and it treats employees as human capital
rather than as a variable cost
SHRM dimension
This is the 4th stage, also know as Strategic Human Resource
Management( SHRM) or New Human Resource Management (
NHRM)
It is popular from 1980s onwards till the date.
It is the combination of strategic planning and Human
Resource Management.
It focuses on formulating and implementing HR policies ,that
develop the employee competencies and behaviours that
company needs to attain from its strategic plans.
Changing dimension in term of
functional focus.
1. HR practices and performance dimension
2. Re-engineering of organization dimension
3. Leadership dimension
4. Workplace learning dimension
5. The relationship with employees dimension
Changing roles of HR
1. HR & Improving Productivity
2. HR & Corporate Strategy
3. HR & Employee Commitment
4. HR & Transferring Knowledge
5. HR & Service Organizations
6. HR & Responsiveness
HR & Improving Productivity
HR and improving productivity: HR helps organization in
improving its productivity by innovation, learning and
employees motivation. Organization invest in huge amount in
improving productivity by:-
Implementing employee participation programs
Fostering better communication system,
Developing better labour management relations
Increasing training and development program
Selection and retention of highly talented and skillful employee
etc.
 HR and corporate strategy
HR manager is the one of the members of in the executive
team in any organization. HR managers are also involve in
making corporate strategies. HR managers are responsible for
making organizational structure and implement the strategy.
McKinsey & Company has suggested 7S framework to
implement the strategy which are as follows:

shared
shared
Strategy
Strategy Structure
Structure System
System staff
staff style
style skill
skill
value
value
HR and employee commitment
HR manager has to play a key roll in building employee
commitment. Committed employees are the assets of
organization. HR should motivate and retain such employee.
Thus HR managers should
Establish career oriented performance appraisal procedures
Opening job posting and job transfer practices,
Create the feeling that organization cares them,
Offer training and development programs etc.
HR and Transferring
knowledge
HR manager play a vital role in accumulate and transfer of the
knowledge and information quickly and efficiently throughout
the organization.
Training and development plays an important role in
promoting transfer of knowledge.
HR and Service organization
Service organization in short is define as an organization
providing service to consumer. Such organization depend upon
the skills and attitude of the employee for the success. Thus
HR plays important role in such organization where instead of
product, service are provided.
HR and responsiveness
HR helps to crate responsive employees. Responsive
employees here means employee ready for change. HR plans
and develop programs that helps employee to gain positive
responsiveness . Benefit of creating highly responsive
employees are
They are more productive and innovative.
Accept change management programs easily and quickly
Less conflict etc.
HR Issues and Challenges
1. Outsourcing HR activities: The contracting or subcontracting of noncore
activities to free up cash, personnel, time, and facilities for activities in which a
company holds competitive advantage.
2. Balancing work life and family life
3. Making HR activities ethical
4. Change in employee expectations
5. Problems created by BPO and CCs :
Business process outsourcing (BPO) is a subset of outsourcing that involves the
contracting of the operations and responsibilities of a specific business process to
a third-party service provider.
6. Partnership relationship with unions
7. Corporate reorganizations
8. Technology and Self service HR
9. Loss of joy and pleasure
Essential skills of HR managers
1. Organization skills
2. Multitasking skills
3. Negotiation skills
4. Communication skills
5. Dual focus / balancing management-employees skills
6. Ethical skills
7. Conflict management & problem solving skills
8. Change management skills
Purpose and structure of HR
department
The basic purpose of any structure is to help the organization
to achieve its objectives effectively and efficiently. The goal
and activities of organization determines the structure of HR
Department.
HR in Small Scale unit
HR in Large scale organization
Composition of HR and Personnel department.
 HRM in a small scale unit

Owner/manager

Production Sales Office accountant

manager manager manager

Personnel
assistant
 HRM in a large scale unit

Chairman &
managing
Director

Director
Director Director Director Director
production Personnel/H
Finance Marketing R&D
RM
 Composition of a HR/Personnel Department
Director-personnel/HRM

Manager Manager Manager HRD Manager HR

Personnel Administration
Appraisal
HRP PR
Training &
Hiring Development
Canteen

Grievance Medical
Handling
Welfare
Compensation
Transport

Legal
HRM as a shared function
HRM is concerned with people at work and their relationship
within organization. Thus it is the shared function of HR
manager and Line Manager.
Line managers have a very important role to play, not only in
the day-to-day management of people and operations but also
in the implementation of HR policies.
Line Manager are included in the activities of HRM which are
acquisition, development, utilization and maintenance of HRM
as per requirements.
HRM in Nepalese context
Home work:
Make a report on HRM in Nepalese environment by the end of
the semester.