INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human resources is a term used to refer to how people are managed by organizations. It was basically a traditionally administrative function but with time it focuses and recognizes talented and engaged people and organizational success. Human resources has at least two related interpretations depending on context. The original usage was traditionally called labour. It is a measure of the work done by human beings. This perspective is changing as a function of new and ongoing research into more strategic approaches. This first usage is used more in terms of 'human resources development', and can go beyond just organizations to the level of national importance. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as 'human resources management'. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, "personnel management" as a description of the processes involved in managing people in organizations. DEFINITION Some of the definitions are as follows. 1. Human resource management (HRM) is the function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals. 2. Human resource management (HRM) is the management of the workforce of a business to ensure sufficient staff levels with the right skills, properly rewarded and motivated.

3. Human resource management (HRM) is defined as staffing function of the organization. It includes the activities of human resources planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety. HRM aims at developing people through work.

Dr. S. P. Mishra

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It can be described as reactive. (7) appraising performance. (5) determining and managing wages and salaries.4. as well as a description of the work of specialists. It is typically the sole responsibility of an organization’s personnel department. human resources involve ongoing strategies to manage and develop an organization's workforce. Personnel management is the responsibility of all those who manage people. or other organization. and health and safety. human resources is described as much broader in scope than personnel management. Personnel management is considered an independent function of an organization. (8) resolving disputes. of which human resource management is the most recent. tends to be an integral part of overall company function. Differences between Personal Management (PM) & Human Resources Management (HRM) A primary goal of human resources is to enable employees to work to a maximum level of efficiency. Personnel managers advise on. Mishra Page 2 . It is proactive. So. There are various models of personnel management. (4) orienting and training. as it involves the continuous development of functions and policies for the purposes of improving a company’s workforce. when a difference between personnel management & human resources is recognized. government administration. training. and implement personnel policies such as recruitment. (3) selecting the right people for the job. all of an organization’s managers are often involved in some manner. Human resource management (HRM) is defined as all methods and functions concerning the mobilization and development of personnel as human resources. conditions of employment. With human resources. Personal management Personal management is related to administrative discipline of hiring and developing employees so that they become more valuable to the organization. providing a response to demands and concerns as they are presented. while seeking to create and develop teams of workers for the benefit of the organization. (6) providing benefits and incentives. (2) planning personnel needs. By contrast. P. Human resource management (HRM) encompasses those activities designed to provide for and co-ordinate the human resources of an organization. Human resources is said to incorporate and develop personnel management tasks. Dr. and recruitment. on the other hand. S. formulate. (9) communicating with all employees at all levels. industrial relations. It includes (1) conducting job analyses. with the objective of efficiency and greater productivity in a company. Personnel management includes administrative tasks that are both traditional and routine. Human resource management. 5. performance appraisal. It is the part of management that is concerned with people and their relationships at work.

Mishra .and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks. 5. From the personnel management point of view. With human resources. and job creativity are seen as the primary motivators. Scope of HRD as compared to HRM is narrower. employee satisfaction provides the motivation necessary to improve job performance. The opposite is true of human resources. Differences between Human Resource Management (HRM) and Human Resource Development (HRD) 1. Scope of HRM is wider. HRM takes care of all human needs and tries to satisfy these needs so that the employees are motivated from all angles to contribute their best to achieve organizational goals. HRD’s cooperation is important for overall success of HRM. HRM is a subset of the entire management processes of an organization. HRD is a subset of HRM. bonuses. HRM is at its centre has HRD. Human resource management holds that improved performance leads to employee satisfaction. Page 3 Dr. 7. their abilities and their attitudes constitute an important organizational as well as employee’s goals. HRM emphasizes that employees. HRD emphasizes mainly on training and development of employees. P. and the simplification of work responsibilities. HRD focuses on those learning experiences which are organized for a specific period to bring about the desired behavioral changes. HRM manages and develops the human elements of an organization in its entirely on longer term basis. 4. effective strategies for meeting challenges. 2. HRM takes decisions on HRD plans. Personnel management typically seeks to motivate employees with such things as compensation. work groups. HRD thus depends on the decisions of HRM. Thus HRM and HRD are interdependent. rewards. S. 6. its objectives should be in tandem with broader objectives of HRM. HRD has to work within the realm of HRM and therefore. HRD focuses on upgrading the skills and competencies or the employees in order to improve the performance of the employees on the job. 3.

To 4. All major activities in the working life of an employee come under preview of HRM. S. ensure reconciliation of individual goals with those of the organization. team work and inter-team collaboration. medical assistance.Objectives of Human Resource Management Objectives are pre-determined goals to which individuals or group activity in an organization is directed. provide the organization with well-trained and well-motivated employees. 2. 1. To 12. To 6. 1. etc. To ensure effective utilization and maximum development of human resources. Mishra Page 4 Employee Selection . Personnel aspect This is concerned with manpower planning. recruitment. be ethically and socially responsive to the needs of society. identify and satisfy the needs of individuals. housing. placement. creches. as seen in the diagram. To ensure respect for human beings. The activities can be broadly divided into three groups. productivity etc. enhance employee's capabilities to perform the present job. To 11. training and development. health and safety. To 5. remuneration. 3. increase to the fullest the employee's job satisfaction and self-actualization. develop overall personality of each employee in its multidimensional aspect. settlement of disputes. To help the organization reach its goals. So objectives of HRM are influenced by organizational objectives and individual as well as social goals. To 8. incentives. P. To 13. To 10. joint consultation. promotion. To 14. develop and maintain a quality of work life. transfer. rest and lunch rooms. equip the employees with precision and clarity in transaction of business. collective bargaining. To 7. 3. Industrial relations aspect This covers union-management relations. 2. To 9. achieve and maintain high morale among employees. inculcate the sense of team spirit. grievance and disciplinary procedures. etc. Nature Of HRM Dr. recreation facilities. layoff and retrenchment. education. Human Resource Management: Scope The scope of HRM is very wide and vast. selection. transport. Welfare aspect It deals with working conditions and amenities such as canteens.

It encourages employees to give their best to the organization. should have external focus Forward thinking and proactive Page 5 Dr. Mishra . 7. economics. etc. 9. The various features of HRM include: 1. both as individuals and groups. P. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. 4. Its focus is on results rather than on rules. It tries to put people on assigned jobs in order to produce good results. utilizing knowledge and inputs drawn from psychology. 6. HRM : Strategic Role and Functions Strategic Role • • • • HRM should be strategic business partner of an organization Should support business strategies In addition to internally representing the employees. 5. It is a multidisciplinary activity. It is pervasive in nature as it is present in all enterprises. S. 3. 8.HUMAN Employee Education RESOURCE MANAGEMEN T Employee Remunerati on Employee Employee Health & Nature of Human resource management Motivation Safety Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. It is all about people at work. 2. It tries to help employees develop their potential fully.

• • • Assist the organization in creating and maintaining competitive edge. Mishra Page 6 . S. and maintaining an efficient workforce. utilizing. Functions of HRM HRM involves two categories of function. P. So the important functions of HRM can be listed below : 1. Those are (a) operative function and (b) managerial function. coordinating. developing. The managerial functions are common to all managers and those are planning. Should add value to the organization. organizing. Should try to work as profit centre and economize its operations. compensating. One function can not work without the other and they are interrelated. directing and controlling. The operative function belongs to such activities concerned with procuring. Staffing Manpower or Human Resource Planning • • • • Job analysis : competency matrix Job description / position description Job evaluation Determination of actual number of employees needed Recruitment and selection of people • • • 2. Training and Development Induction • Training • • • • Competency mapping and gap analysis Appraisal Training need assessment Training process Acclimatization process for new employees Attracting talent Selection process Motivating the talent to join the organization Dr.

P. Maintenance Communication • Health • Safety • • Employee relations • • Legalities • Dr. Motivation Appraisal • • Appropriate appraisal system Appraisal process Fast track (talent management) Normal career path management Potential assessment Development process Competition and benefits • Rewards • • 4. Mishra Page 7 Dispute Establishing fairness Designing and implementing employee relations Awareness creation System for safe working condition Design / selection and implementation of health schemes Installing and maintaining two way communication Recognition motivation Monetary motivation Determination of salary and benefit packages . S.Development • • Career planning • • 3.

Appraisal of performance of employees. Training and development of employees. Collective bargaining. Role Analysis for job occupants. Human Resource Management undertakes the following activities: 1. 9. 14. Mishra Human resource or manpower planning. Taking corrective steps such as transfer from one job to another. 11. 7. Reviewing and auditing manpower management in the organization Potential Appraisal. 3. 8. 4. 8. P. Developing & maintaining motivation for workers by proper incentives. Employee recruitment Training and development of employees Workforce management Evaluation of employee performance Promotions and transfer of employees Redundancy Employee relations Organization of data Total rewards Career development Competency mapping Time management Confidentiality & Performance appraisal In order to achieve the above objectives. 5. 15. S. contract negotiation and grievance handling. Feedback Counseling. 10. 4. Social security and welfare of employees. Staffing the organization. Dr. 10. 12. Setting general and specific management policy for organizational relationship. 3. 6. 6. 5. Aiding in the self-development of employees at all levels. 14. 13. Remuneration of employees. 2. 12. selection and placement of personnel. Recruitment. 2.• • • • Grievances Unions Employment related legalities Health and safety related legalities Although there are many functions of human resource management but the most effective of them include: 1. Page 8 . 7. 9. 11. 13.

Human Resource Management: Futuristic Vision On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision: 1. Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities. 17. It will ultimately lead to sense of team spirit. 5. subordinates as well as selfreview. 6. it will conform to customer's needs and expectations.16. 4. 360 degree feedback will further lead to increased focus on customer services. Impact of new economic policy. decreased hierarchies. Job Rotation. 3. There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection. TQM will cover all employees at all levels. avoiding discrimination and biases and identifying performance threshold. Environmental challenges. New skills required. Quality Circle. Mishra Page 9 . Lean and mean organizations. it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization. peers. Factors in Human Resource Management In the 21st century HRM will be influenced by following factors. Dr. 7. which will work as various issues affecting its strategy: 1. Culture prevailing in the organization etc. P. Rising employees' expectations Drastic changes in the technology as well as Life-style changes. S. 8. 7. Downsizing and rightsizing of the organizations. 5. 2. Composition of workforce. More emphasis should be given to Total Quality Management. 9. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically. Political ideology of the Government. In every decision-making process there should be given proper weightage to the aspect that employees are involved wherever possible. 6. team-work and inter-team collaboration. 3. For performance appraisal of the employee’s emphasis should be given to 360 degree feedback which is based on the review by superiors. Size of the workforce. 4. creating of highly involved workforce. Organization development and Quality of Working Life. 2.

S. Many recognize outsourcing relationships as long-term partnerships created to further the strategic goals of the organization. Organizations are fast realizing that they can't be all things to all people. HR outsourcing can happen in HR functions. but also heightened strategic focus. There should be focus on job rotation so that vision and knowledge of the employees are broadened as well as potentialities of the employees are increased for future job prospects.8. Medical. exit interviews and wage reviews). to realize economies of scale and achieve standardization of services. risk management. handling taxes.e. a service provider or a manufacturing firm. administration. employee benefits (Health. This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility necessary to compete in today's business environment. such as technology and talent. For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy. focus on their core competency. Outsourcing has become a common response to manage people and technology resources strategically. economic and social considerations should also be taken into account. human resource management (hiring and firing. Rapidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. benefits. Human Resource Outsourcing: Scope for India One very important trend in the recent times has been the growth of human resource outsourcing. etc. etc). enhance services. A growing number of executives understand the benefits it can bring in terms of not only cost savings. i. It should not be confined to organizational aspects only but the environmental changes of political. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. 11. The organization can focus on higher value-added activities while the outsourcing provider takes care of the day-to-day administration. Critical internal resources. The number of companies outsourcing HR activities continues to rise. P. be it a software company. 9. and manage costs more effectively. can be devoted to company's core business. dealing with sick-time and vacations). HR outsourcing is the outsourcing of peripheral but necessary administrative tasks such as payroll. Cafeteria. 10. recruiting personnel. decide what they are good at and outsource everything else. Dr. and the scope of outsourced HR activities continues to expand. outsourcing becomes a strategy for reducing the capital intensity of the business. Outsourcing reduces the need for large capital expenditures in noncore functions. Thus. Mishra Page 10 . like payroll administration (producing checks. Outsourcing noncore activities allows HR professionals to move away from routine administration to a more strategic role. education/training.. background interviews. human resources outsourcing is becoming increasingly prevalent. So companies now. and let someone else do the rest in a more efficient and cost-effective manner. Life insurance. As a result.

000 companies are discussing HR outsourcing as a way to cut costs and increase productivity. ready pool of English speaking manpower and geographic positioning. P.  To leapfrog ahead of competition in this world of uncertainty. Experts believe that in present times HR outsourcing is undergoing a transition phase. more particularly on training. organizations have introduced six. These practices improve organizational values and helps in creating defect free product or services at minimum cost. HR outsourcing has a huge potential for employment also.sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. with renewed thrust on HR issues. Such organizational models also refocus on people centric issues and call for redefining the future role of HR professionals.The HR outsourcing business opportunity is large and India is likely to garner a larger and larger piece of this pie in the future. Nasscom numbers are a million software jobs by 2005. Six. There is a need for multi skill development. is emerging as a viable destination for HR outsourcing companies to set up their businesses. Some of the recent trends that are being observed are as follows: The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric organizations. The name of the game today in business is personnel . This calls for future skill mapping through proper HRM initiatives. Federal and Triple I. Indian organizations are also witnessing a change in systems. Role of HRM is becoming all the more important. S. HRO would be about a 25 per cent of that. Over the years.sigma practices. management cultures and philosophy due to the global alignment of Indian organizations. Mishra Page 11 . India has immense potential as more than 80% of fortune 1. representing 39 per cent of the total business process outsourcing revenue. the future seems to be very promising. Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. it would still be sometime before we see increased levels of HR activities being outsourced to India as lack of domain knowledge and quality are some of the critical issues. However.  Charles Handy also advocated future organizational models like Shamrock. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management. It's set to become a $ 51 billion market worldwide in 2005. with its intrinsic advantages such as low cost. India. Estimates show that the latent size of HR outsourcing in India is about $ 2 billion with a current market of $ 27 million and it is growing at an alarming rate of about 50 per cent. Emerging Trends in Human Resource Management Human resource management is a process of bringing people and organizations together so that the goals of each other are met.  Dr. highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing. Personnel directors are the new corporate heroes.

 HRM in Global world Globally. P.Human resource outsourcing is a new accession that makes a traditional HR department redundant in an organization. Recognition of close relationship between profits and earnings and ability to manage human resources These are the identified problem which occurs in an organization with the employee and owners. orientation and translation services to help employees adapt to a new and different environment outside their own country. In the stage of globalization and industrialization human resource management reveal the following trends: Increased complexity of organization and employment communication and created a distinction between owners.  With the increase of global job mobility. Mishra Page 12 . Selection of employees requires careful characteristics of the candidate and his/her spouse. Decreased number of employers and self-employed. mobilize and direct the efforts of people. Human Resource Management today known as a part of an organization and it has own existence world wide. especially in India. and enlarged size or workforce. organizations are also required to work out a retention strategy for the existing skilled manpower. recruiting competent people is also increasingly becoming difficult. S. managers and workers. Therefore by creating an enabling culture. the international pioneer in HR BPO already roped in Bank of America. The need creates the role of human resource management. NEW TRENDS IN INTERNATIONAL HRM International HRM places greater emphasis on a number of responsibilities and functions such as relocation. It is said that management of human resources lead. international players BP Amoco & over the years plan to spread their business to most of the Fortune 500 companies. Exult.  evaluation of the personal Dr. Enhanced need for training in view of increased requirements of specialized skills Public interventions and legal complication in employer-employee relationships Enhanced training and development of managers and professionalization of management education Possibility of employment explosion in view of the ever-increasing size of workforce Rising formal level of education of rank-and-file employees who are becoming increasingly critical of management malpractices and errors Rank-and-file employees’ rapidly growing demands in different employment situations Increased applications of behavioral science by enterprising managers.

S. performance evaluations should combine the two sources of appraisal information. Organizations typically negotiate the agreement with the unions at a national level.  Dr.  Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions.  To balance the pros and cons of home country and host country evaluations. P. re-entry problems and culture shock. Managers need to be protected from career development risks. Mishra Page 13 .Germany for one. In Europe it is more likely for salaried employees and managers to be unionized.  In many European countries .Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better. law establishes representation.