Chapter 1

Introduction to Human
Resource Management
After reading this chapter, you
should be able to:
Understand the meaning of human resources.
Define the objectives, scope and functions of
Human Resource Management.
Differentiate between Human Resource
Management (HRM) and Personnel
Management (PM).
Enumerate the qualities of HR managers.
Discuss the future role of Human Resource
Management.

Human resources: meaning
Human resources means the
collection of people and their
characteristics at work. These are
distinct and unique to an organization
in several ways.
Why and how human
resources (HR) are superior to
physical resources
HR alone appreciates over a period.
HR achieves in higher performance
output than its actual input.
HR brings value to all other assets.
Operational flexibility is possible with
HR.
Human resource management:
meaning
Human resource management is
concerned with policies and practices
that ensure the best use of the human
resources for fulfilling the
organizational and individual goals.
Functions of human resource
management
Operative functions of HRM
Scope of human resource
management
Personnel or labour aspect deals with
HR planning, recruitment, selection,
placement, training and development,
remuneration, etc.
Welfare aspect deals with working
conditions and amenities such as
canteen, rest-rooms, etc.
Scope of human resource
management (contd.)
Industrial relations aspect deals with
unionmanagement relations like
collective bargaining, grievance and
disciplinary actions, etc.

Difference between HRM and
PM
HRM is proactive in nature while PM
is reactive.
HRM is a resource-centred activity
whereas PM is a employee-centred
activity.
HRM emphasizes on flexible, open-
ended contracts but PM emphasizes
the strict observance of defined rules,
procedures and contracts.
Difference between HRM and
PM (contd.)
HRM views better performance as a
cause of job satisfaction whereas PM
considers job satisfaction as a source
of better performance.
HRM seeks to develop the
competencies of the employees on a
sustained basis while PM is a regular,
status quobased administrative
function.
Qualities of an HR manager
Knowledge
Intelligence
Communication skills
Objectivity and fairness
Leadership and motivational qualities
Emotional maturity and
Empathy
The future role of HRM
Change in the nature of work.
Widening scope of HR activities.
Greater emphasis on HRIS.
Change in labour market conditions.
Increasing importance of high
performance work systems (HPWS).
Growing need for measurement tools
to evaluate HR programmes.