Fundamentals of HRM

HRM is the management of Human Resources to fulfil the management objectives. It deals in 1.Maximise employees performance to achieve the Organisation’s strategic objectives. 2.Pay & benefit system, recruitment, training & development, Performance appraisal and rewarding 3.Managing of people within the organisation focussing on policies and systems. 4.Organisational change and Industrial Relations. 5.Strategic initiatives like Merger and acquisitions, talent management, succession planning, labour relations and diversification.

•History of HRM

1.Evolved as a concept for the 1st time in the 18th century during Industrial Revolution 2.It was felt that people were crucial for the Organisational development. 3.It was assumed that people could do the work for which they are paid for. 4.the initial theory ignored the human behaviour aspects and their impact on the work 5.However,  in the 20th century onwards corporations started visualising the employees as an asset. 6.Journey from PM to HRD to HRM  ●

Difference between HRM & HRD

•Refers to application of principle of management to manage the people working in the Organisation. •Management Function


•Improves the performance of the employee.

•Routine Process

•Independent function •Concerned with people only.


•A continuous development function that intends to improve the performance of the people working in the Organisation •Subset of HRM


•Develops the skill, knowledge and competence of the employee

•Ongoing process

•Sub system of HRM Concerned with development of the Organisation

Difference between PM & HRM

Personal Management

•Traditional Approach

•Focuses on Personal administration, employees welfare and labour relation.

•Assumes people as an input •Focuses on employee’s satisfaction

•Lesser training and developmental opportunities.

•Routine function


•Modern approach

•Focuses on acquisition, development, motivation and maintenance of Human Resources

•Assumes people an important and valuable resource

•Focus is on goal achievement

•More training and developmental opportunities

•Strategic functions

Role of a HR Professional

•Strengthening the operation and consolidating strength in the Organisation •Developing system that deals in people, their problems and solution there of. •Planning future manpower and recruitment •Placement, transfer, promotion and retainment of work force •Motivation  and development of the employees • Performance, potential assessment and growth of employees •Creating Culture and values •Diagnose problems in the Organisation and taking corrective steps

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