Directorate of distance education master of business administration

Lesson  3 - HRM-Systems Perspective 
Lesson Outline
 
 
ӹ Features of HRM as a system 
 
ӹ Sub-systems in HRM 
 
ӹ Staffing, Training and Development 
 
ӹ Compensation 
 
ӹ Industrial Relations 
 
ӹ Integration of Various Sub-systems 
Learning Objectives
 
After reading this lesson you should be able to
 
 
ӹ Understand the importance of system 
 
ӹ Appreciate HRM system 
 
ӹ Comprehend the interlinking between sub-systems 
 
ӹ Understand the flow of HRM system 
Introduction 
Modern business management is becoming complex. More 
products, more players and more technology make it so. Modern 
technology is knowledge based, and modern production technique is 
skill intensive. When problem becomes complex, no single individual or 
single group of individuals can find a solution which is optimal. We need 
assistance of persons and groups to put our heads together. Thereafter 
they work as one team. Now this has become a “system of people” for a 
common aim of finding a solution of a given problem. 

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Standford L. Optner in his book on “System Analysis” prefaces 
with the following remarks: 
“Users reinvest too many dollars in the annual costs of the progressive 
maintenance, a euphemism, for a wide range of failures, which may not 
be a direct result of the computer programme, but simply a “system” 
oversight.    
The concept of “system analysis” has its origin in Second Word 
War. The first major project taken up in U.S.A. for solution through 
Systems Analysis was the expansion of “U.S. Air Force”, by 20 times 
within one year! This task was assigned to Harward Graduate School of 
Business Administration and was accomplished in time. Encouraged by 
the results, a “Think Tank” was established for further analysis in other 
segments.