24 Human Resource Management — Concept, Perspectives and Recent Trends

24.1 What is Human Resource Management?

Human Resource Management (HRM) is the process of acquiring, training, appraising, and compensating employees, and of attending to their labour relations, health and safety, and fairness concerns (Gary Dessler). The Indian standard, K. Aswathappa, defines HRM as “the management of people at work to achieve organisational and individual goals through better utilisation of human resources”.

HRM treats people as a resource — but a special kind of resource that thinks, feels and chooses. The discipline blends economics, psychology, sociology and law.

Working Definitions of HRM

Author	Definition	Foregrounds
Edwin B. Flippo	“Planning, organising, directing, and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources.”	Process
Gary Dessler	“The process of acquiring, training, appraising, and compensating employees, and of attending to their labour relations, health and safety, and fairness concerns.”	Comprehensive functions
K. Aswathappa	“The management of people at work to achieve organisational and individual goals.”	Indian standard
Michael Armstrong	“A strategic and coherent approach to the management of an organisation’s most valued assets — the people working there.”	Strategic
Storey	“A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce.”	Competitive advantage

24.1.1 Features of HRM

Eight features of HRM

Pervasive — required in every organisation, every level.
People-oriented — centres on human beings, not machines.
Action-oriented — focused on solving people problems, not paperwork.
Continuous process — staffing, training and motivating never end.
Future-oriented — manpower plans, succession plans look forward.
Comprehensive function — encompasses everything from hiring to separation.
Inter-disciplinary — psychology, sociology, economics, law.
Both art and science — empirical + judgemental.

24.2 Personnel Management vs HRM vs SHRM vs HCM

The discipline has evolved through four labels over time.

Four labels — same field, different emphasis

Label	Period	View of people	Focus
Personnel Management	1900s-1970s	Labour as a cost	Administrative — hiring, payroll, IR
Human Resource Management (HRM)	1980s onward	People as resources	Functional integration — staffing, T&D, compensation
Strategic HRM (SHRM)	1990s onward	People as strategic assets	Linking HR to business strategy
Human Capital Management (HCM)	2000s onward	People as investments	Analytics, ROI on workforce

Personnel Management vs HRM (Storey 1992)

Dimension	Personnel Management	HRM
Time horizon	Short-term, reactive	Long-term, proactive
Psychological contract	Compliance	Commitment
Control system	External	Self-control
Employee relations	Pluralist, collective	Unitarist, individual
Preferred structure	Bureaucratic / centralised	Organic / devolved
Roles	Specialist HR department	Largely integrated into line management
Evaluation criteria	Cost minimisation	Maximum utilisation (HR audit)

24.3 Objectives of HRM

Four-fold objectives (Cherrington / Aswathappa)

Objective	What it means
Societal	Be socially responsible (CSR, equal opportunity)
Organisational	Help organisation achieve its goals through people
Functional	Maintain HR’s contribution at a level appropriate to needs
Personal	Help employees achieve their personal goals

24.4 Scope / Functions of HRM

HRM functions are typically grouped into managerial and operative.

Functions of HRM

Family	Functions
Managerial	Planning · Organising · Directing · Controlling
Operative — Procurement	Job analysis · HR planning · Recruitment · Selection · Placement · Induction
Operative — Development	Training · Career development · OD · Performance appraisal
Operative — Compensation	Job evaluation · Wage/salary administration · Incentives · Benefits
Operative — Integration	Motivation · Morale · Communication · Participation · Grievance redressal
Operative — Maintenance	Health · Safety · Welfare · Social security
Operative — Industrial Relations	Trade unions · Collective bargaining · Disputes · Discipline
Operative — Separation	Retirement · Resignation · Layoff · Dismissal · Outplacement

24.5 Models / Approaches to HRM

24.5.1 Michigan / Matching Model — Fombrun, Tichy, Devanna (1984)

The Michigan school emphasises fit between HR practices and business strategy. The HR cycle has four components:

Michigan HR cycle (Fombrun-Tichy-Devanna 1984)

Selection — choose the right people.
Performance appraisal — measure performance.
Rewards — link to performance.
Development — develop people for the future.

The fifth component connecting all four is Performance. Selection, appraisal, rewards and development all aim at performance.

24.5.2 Harvard Model — Beer et al. (1984)

Michael Beer, Bert Spector, Paul Lawrence, D. Quinn Mills, Richard Walton developed the Harvard model of HRM — a broader, more humanistic framework:

Harvard model — five components

Stakeholder interests — shareholders, management, employee groups, government, community, unions.
Situational factors — workforce, business strategy, philosophy, labour market, unions.
HRM policy choices — employee influence, HR flow, reward systems, work systems.
HR outcomes — Commitment, Competence, Congruence, Cost-effectiveness (4 Cs).
Long-term consequences — individual well-being, organisational effectiveness, societal well-being.

Harvard 4 Cs

Commitment · Competence · Congruence · Cost-effectiveness — the four HR outcomes that signal a successful HR system.

24.5.3 Storey’s Hard vs Soft HRM (1992)

Storey’s two HRM philosophies

Hard HRM	Soft HRM
People as resources, treated like other inputs	People as valued assets, source of competitive advantage
Quantitative, calculative	Qualitative, developmental
Rooted in Michigan model	Rooted in Harvard model
Cost minimisation	Commitment maximisation
Theory X assumption	Theory Y assumption

24.5.4 Guest’s Model (David Guest, 1989, 1997)

David Guest specified four HR policy goals and four HR outcomes:

Guest’s four HRM policy goals + four outcomes

Goals: Strategic Integration · High Commitment · High Quality · Flexibility.
HR Outcomes: High job performance · Low problem-solving cost · Low turnover, absenteeism, grievance · Cost-effectiveness.

24.5.5 Warwick Model — Hendry & Pettigrew (1990)

Extends the Harvard model by emphasising inner context (culture, structure, leadership) and outer context (socio-economic, technical, political, legal, competitive).

24.5.6 Ulrich’s HR Business Partner Model (1997)

Dave Ulrich’s influential model from Human Resource Champions (1997) — HR has four roles:

Ulrich’s four HR roles

Role	Focus	Activity
Strategic Partner	Strategic / Process	Aligning HR strategies with business strategy
Change Agent	Strategic / People	Managing transformation and change
Administrative Expert	Operational / Process	Re-engineering HR processes; shared services
Employee Champion	Operational / People	Listening to employees, increasing commitment

Ulrich later (2005, 2012) expanded to a 5-role + 6-role model: Strategic Positioner, Credible Activist, Capability Builder, Change Champion, HR Innovator-Integrator, Technology Proponent.

24.5.7 Other HR Models

Other HR models worth knowing

Model	Author	Key idea
Pfeffer’s 7 HR practices	Jeffrey Pfeffer (1998)	Employment security · Selective hiring · Self-managed teams · High compensation · Training · Reduced status distinctions · Information sharing
5-P Model	Schuler (1992)	Philosophy · Policies · Programmes · Practices · Processes
AMO Model	Appelbaum (2000)	Ability + Motivation + Opportunity → performance
High Performance Work System (HPWS)	Lawler, Huselid	Bundles of HR practices that lift performance
Resource-Based View (RBV)	Barney (1991)	VRIN resources — Valuable, Rare, Inimitable, Non-substitutable; people fit

24.6 Influences on HRM

Internal and external influences

Internal	External
Corporate strategy	Labour market
Organisation culture	Government regulation
Size	Trade unions
Technology	Demographics
Trade union strength	Globalisation
Top-management philosophy	Economic conditions
Resources	Competitor practices

24.7 HR Department — Structure

HR Department functions

HR Business Partners — embedded with business units.
HR Centres of Excellence (CoE) — specialised teams (T&D, Comp & Ben, Talent Acquisition).
HR Shared Services — transactional services (payroll, queries).
Ulrich’s three-legged model — Business Partners + CoE + Shared Services.

24.8 Recent Trends in HRM

Major HRM trends

Trend	Notes
HR Analytics / People Analytics	Data-driven HR decisions; metrics, predictive models
AI in HR	Automated screening, chatbots, performance analytics
Gig economy	Contract / freelance workforce; platform-based work
Hybrid / Remote work	Post-COVID workplace; flexible work arrangements
Employee Experience (EX)	Holistic experience akin to customer experience
Wellness and well-being	Mental health, work-life integration
DEI initiatives	Diversity, equity, inclusion programmes
Sustainability / Green HRM	Environment-aligned HR practices
Talent analytics & HR-tech	HRIS, ATS, LMS, HCM platforms (SAP SuccessFactors, Workday)
Continuous performance management	Real-time feedback; OKRs
Personalisation	Career path, learning customised to individual
HR’s seat at the table	CHRO as strategic partner
Skill-based hiring	Move beyond degrees to demonstrated skills
Total rewards	Beyond pay — recognition, growth, purpose
Employer branding	Inside-out brand of workplace

24.8.1 Strategic HRM (SHRM)

SHRM = integrating HRM with the strategic goals and objectives of the firm to improve business performance and develop organisational cultures that foster innovation, flexibility and competitive advantage.

Approaches to SHRM:

Three approaches to SHRM

Best-Practice / Universalistic (Pfeffer 1998) — there are universal HR practices that work everywhere.
Best-Fit / Contingency (Schuler-Jackson 1987) — HR practices must fit the business strategy.
Configurational (Delery-Doty 1996) — bundles of practices, not single practices, that fit each strategy.

24.8.2 Schuler-Jackson Strategy-Driven HR (1987)

For Porter’s three generic strategies, the HR profile differs:

Strategy → HR profile (Schuler-Jackson 1987)

Porter strategy	Required employee role	HR emphasis
Cost Leadership	Repetitive, predictable behaviour	Tight job descriptions, short-term, narrow training, low investment
Differentiation / Quality	Predictable + customer-oriented	Process control, quality circles, broad skill
Innovation	Creative, risk-taking, long-term	Loose job descriptions, broad skills, long-term, high investment

24.9 Indian HRM — Institutions and Pioneers

Indian HRM milestones

Royal Commission on Labour (1929-31) — recommended labour officers in factories — start of personnel management in India.
Factories Act 1948 mandated welfare officers.
NIPM — National Institute of Personnel Management (1959, Kolkata) — first professional body.
NHRDN — National HRD Network (1985) — practitioner body.
L&T HRD Pioneer (1974) — Udai Pareek + T.V. Rao — designed India’s first integrated HRD framework.
Pareek’s MAO-C, MAO-R, FIRO-B India version, RDQ — Indian instruments.
T.V. Rao Learning Systems — HRD audit pioneer.
Indian SHRM — pioneered by Pritam Singh, Pradip Khandwalla, Anil K. Khandelwal.

HRD vs HRM

Human Resource Development (HRD) is a subset of HRM — focused on developing people (training, career planning, OD). HRM is the broader function. Term HRD was coined by Leonard Nadler (1969) at Miami Beach ASTD conference.

24.10 Practice Questions

Q 01 Flippo Easy

Edwin B. Flippo's definition of HRM lists how many functional sub-processes (POIM-D pattern)?

View solution

Correct Option: C

Flippo: Procurement · Development · Compensation · Integration · Maintenance · Separation — six sub-processes.

Q 02 Storey Medium

According to John Storey (1992), Personnel Management seeks *compliance* while HRM seeks:

ACommitment
BObedience
CReward
DControl

View solution

Correct Option: A

Compliance vs Commitment — Storey's iconic distinction between Personnel Management and HRM.

Q 03 Michigan Medium

The Michigan / Matching model of HRM was proposed in 1984 by:

ABeer et al.
BFombrun, Tichy and Devanna
CDavid Guest
DDave Ulrich

View solution

Correct Option: B

Charles Fombrun, Noel Tichy, Mary Anne Devanna (1984) — the Michigan school.

Q 04 Harvard 4 Cs Medium

The Harvard model's "4 Cs" of HR outcomes are:

ACost · Customer · Capacity · Capital
BCommitment · Competence · Congruence · Cost-effectiveness
CCompliance · Continuity · Compensation · Care
DCommunication · Coordination · Cooperation · Control

View solution

Correct Option: B

Beer et al. (1984): Commitment · Competence · Congruence · Cost-effectiveness.

Q 05 Hard vs Soft Medium

"Soft" HRM is rooted in which underlying assumption?

ATheory X
BTheory Y
CTheory Z
DMarxist

View solution

Correct Option: B

Soft HRM (Harvard) — Theory Y, commitment, development. **Hard HRM** (Michigan) — Theory X, cost minimisation.

Q 06 Ulrich Medium

Dave Ulrich's *HR Business Partner* model (1997) has how many original HR roles?

View solution

Correct Option: C

Ulrich (1997) — four roles: Strategic Partner · Change Agent · Administrative Expert · Employee Champion.

Q 07 Pfeffer Hard

Jeffrey Pfeffer's *seven HR practices* for competitive advantage include all of the following EXCEPT:

AEmployment security
BSelective hiring
CSelf-managed teams
DAnti-union policy

View solution

Correct Option: D

Pfeffer's 7: Employment security · Selective hiring · Self-managed teams · High compensation · Training · Reduced status distinctions · Information sharing. Anti-union is *not* one.

Q 08 AMO Medium

The AMO model of HR-performance link states that performance =

AAbility × Motivation × Opportunity
BAttitude + Mood + Output
CAptitude × Maturity × Organisation
DAction + Motivation + Outcome

View solution

Correct Option: A

Appelbaum et al. (2000): Ability × Motivation × Opportunity. HR practices boost each of the three.

Q 09 5-P Hard

Schuler's 5-P Model of SHRM identifies which five P's?

APeople · Process · Product · Place · Promotion
BPhilosophy · Policies · Programmes · Practices · Processes
CPlanning · Procurement · Performance · Pay · Politics
DPower · Position · Personality · Potential · Performance

View solution

Correct Option: B

Schuler (1992): Philosophy · Policies · Programmes · Practices · Processes.

Q 10 RBV Hard

In Barney's Resource-Based View (1991), human resources qualify as a source of competitive advantage if they are:

AVRIN — Valuable, Rare, Inimitable, Non-substitutable
BVPSS — Valuable, Productive, Skilled, Strong
CSMART — Specific, Measurable, Achievable, Relevant, Time-bound
DPESTEL — Political, Economic, Social, Tech, Environmental, Legal

View solution

Correct Option: A

VRIN — Valuable, Rare, Inimitable, Non-substitutable (Barney 1991). Later extended to VRIO (adds Organisation).

Q 11 HRD Father Medium

The term "Human Resource Development (HRD)" was coined in 1969 by:

AUdai Pareek
BLeonard Nadler
CGary Dessler
DDave Ulrich

View solution

Correct Option: B

Leonard Nadler (1969) at ASTD's Miami Beach conference coined "HRD".

Q 12 India L&T Hard

India's first integrated HRD system was designed at L&T in 1974 by:

AUdai Pareek and T.V. Rao
BS.K. Chakraborty and P.N. Khandwalla
CPritam Singh and Anil Khandelwal
DMahesh Verma and B.K. Chandra

View solution

Correct Option: A

Udai Pareek and T.V. Rao designed the L&T HRD framework (1974) — template for Indian HRD systems.

Q 13 NIPM Medium

India's National Institute of Personnel Management (NIPM) is headquartered in:

AMumbai
BKolkata
CNew Delhi
DBangalore

View solution

Correct Option: B

NIPM (1959) — headquartered in Kolkata; first national professional body for personnel management in India.

Q 14 Objectives Medium

The four-fold objectives of HRM are Societal · Organisational · Functional and:

APersonal
BPolitical
CProfitability
DProductivity

View solution

Correct Option: A

Cherrington / Aswathappa: Societal · Organisational · Functional · Personal.

Q 15 Schuler-Jackson Hard

Under Schuler-Jackson's strategy-driven HRM (1987), an *innovation* strategy requires:

ATight job descriptions, short-term focus, narrow training
BLoose job descriptions, broad skills, long-term, high investment
COutsourcing of HR functions
DStrong union relations

View solution

Correct Option: B

Schuler-Jackson (1987): Innovation strategy → loose job descriptions, broad skills, long-term, high investment in development.

Q 16 Warwick Hard

The Warwick model of HRM was proposed in 1990 by:

ABeer et al.
BHendry and Pettigrew
CFombrun et al.
DDave Ulrich

View solution

Correct Option: B

Chris Hendry and Andrew Pettigrew (1990) at Warwick Business School extended Harvard with inner and outer context.

Q 17 HPWS Medium

A *High Performance Work System (HPWS)* is best described as:

AA single HR practice that lifts performance
BA bundle of internally consistent HR practices that jointly lift performance
CA high-pressure work environment
DA six-day work week

View solution

Correct Option: B

HPWS — bundle of mutually reinforcing HR practices (Huselid, Lawler) that produce higher performance than any single practice would.

Q 18 Trends Easy

"People Analytics" in modern HRM refers to:

APerformance appraisal interviews
BData-driven analysis of workforce metrics to inform HR decisions
CSurveys of employee satisfaction only
DBackground verification

View solution

Correct Option: B

People (or HR) Analytics uses data to inform HR decisions — turnover, hiring, performance prediction, comp benchmarks.

Q 19 Best-fit vs Best-practice Hard

The "best-practice" approach to SHRM is most associated with:

ASchuler-Jackson
BJeffrey Pfeffer
CDelery and Doty
DHendry and Pettigrew

View solution

Correct Option: B

Jeffrey Pfeffer (1998) — best-practice / universalistic approach (7 HR practices). Schuler-Jackson — best-fit; Delery-Doty — configurational.

Q 20 Match models Hard

Match the HRM model with its proponent:

(i)	Michigan / Matching	(a)	Beer et al.
(ii)	Harvard 4 Cs	(b)	Fombrun-Tichy-Devanna
(iii)	4 HR roles	(c)	Hendry-Pettigrew
(iv)	Warwick	(d)	Dave Ulrich

A(i)-(b), (ii)-(a), (iii)-(d), (iv)-(c)
B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
C(i)-(c), (ii)-(d), (iii)-(b), (iv)-(a)
D(i)-(d), (ii)-(c), (iii)-(a), (iv)-(b)

View solution

Correct Option: A

Michigan — Fombrun-Tichy-Devanna; Harvard — Beer et al.; 4 roles — Ulrich; Warwick — Hendry-Pettigrew.

24.10.1 Advanced Format Questions

AR 1Assertion-ReasonHard

A: SHRM aligns HR with strategy.
R: Personnel management was reactive and administrative.

ABoth true; R explains A
BBoth true; R does not explain A
CA true, R false
DA false, R true

View solution

Correct Option: B

AR 2Assertion-ReasonMedium

A: Ulrich (1997) gave HR's four roles.
R: Strategic Partner, Change Agent, Admin Expert, Employee Champion.

ABoth true; R explains A
BBoth true; R does not explain A
CA true, R false
DA false, R true

View solution

Correct Option: A

S 1Statement-basedMedium

Modern HR trends: (i) HR analytics. (ii) Hybrid work. (iii) DEI. (iv) Gig workforce.

AAll four
B(i) and (iii) only
C(ii) and (iv) only
D(i), (ii), (iii) only

View solution

Correct Option: A

S 2Statement-basedHard

HRM evolution stages: (i) Industrial Revolution. (ii) Welfare. (iii) Personnel Management. (iv) HRM. (v) SHRM.

AAll five (chronological)
B(i), (ii), (iii) only
C(iv) and (v) only
D(i) only

View solution

Correct Option: A

24.11 Quick Recall

Quick recall

Working definitions: Flippo (procurement→separation, 6 sub-processes) · Dessler · Aswathappa · Armstrong · Storey.
Personnel Management → HRM → SHRM → HCM — same field, different emphasis.
Storey (1992) — Personnel vs HRM: Compliance vs Commitment; Pluralist vs Unitarist; Bureaucratic vs Organic.
Objectives (Cherrington): Societal · Organisational · Functional · Personal.
Functions: Managerial + Operative (Procurement · Development · Compensation · Integration · Maintenance · IR · Separation).
Models: Michigan / Matching (Fombrun-Tichy-Devanna 1984; Hard) · Harvard 4 Cs (Beer et al. 1984; Soft — Commitment · Competence · Congruence · Cost-effectiveness) · Guest (1989 — 4 policy goals + 4 outcomes) · Warwick (Hendry-Pettigrew 1990 — inner + outer context) · Ulrich (1997 — 4 HR roles: Strategic Partner · Change Agent · Admin Expert · Employee Champion).
Pfeffer’s 7 HR practices; Schuler’s 5-P (Philosophy · Policies · Programmes · Practices · Processes); AMO Model (Ability × Motivation × Opportunity); HPWS (bundles); RBV / VRIN (Barney 1991).
SHRM approaches: Best-practice (Pfeffer) · Best-fit (Schuler-Jackson 1987) · Configurational (Delery-Doty 1996).
Indian milestones: Royal Commission on Labour 1929 · Factories Act 1948 · NIPM 1959 Kolkata · NHRDN 1985 · Udai Pareek & T.V. Rao designed L&T HRD 1974 · Pareek “Father of HRD in India”.
HRD vs HRM — HRD is a subset focused on development; Leonard Nadler coined HRD in 1969 (ASTD Miami Beach).
Modern trends: People Analytics · AI in HR · Gig economy · Hybrid work · EX · Wellness · DEI · Green HRM · HR-tech · Continuous PM · Skill-based hiring.