INTRODUCTION TO HRM:

Human Resource Management deals with the

management of people in an organization. It is assessed and
accepted that human resource are the main component of an
organization and he success or failure of the organization depends
on how effectively this component is managed. The organizations
objective and strategies are achieved, if the personnel policies
and procedures are well connected and mainly contribute in that
direction.
HRM is a strategic activity, which acquires, motivates,
develops and manages the human resources of an organization. It
is an attempt of special nature to develop programs, policies and
activities to promote the satisfaction of both individual and
organizational needs, goals and objectives.
HRM is related to the continuous process of man power
planning, selection, performance appraisal, salary administration,
and training and management development. HRM is always a
deep-rooted comprehensive activity taken up to improve the
quality of human beings who are the vital assets of the
organization. HRM satisfies expectations which are not satisfied
by conventional personnel management.

MEANING:
HRM means The process of accomplishing organizational
objectives by acquiring, retaining, terminating, developing and
properly using the human resource in the organization. While
acquiring the Human resource, people with talent, skill and
motivation should be recruited, Developing involves educating,
training and make the human resources to accept any type of
current or future work. HRM encompasses every activity relating
to resources in an organization.

DEFINATION:
The management of human resources is viewed as a
system in which Participants seek to attain both individual and
group goals
- Yooder

and

others
Its objective is to understand what has happened and
is happening and to be prepared for what will happen in the area
of working relationships between the managers and the managed.
It is that phase of management, which deals with the effective

control, and use of manpower as distinguished from other sources

of power

IMPORTANCE OF HRM:
To forecast the future needs, the strength of the current
resources also is to be assessed. Conducting Human Resource
audit makes it. Human Resource audit grades the human
resources of the firm according to their capabilities. The
performance standard of each individual is assessed. Their
potentiality is ascertained and this will help the organization to
better utilize their services in future. It is full realized that
managerial

success

in

organizations

depends

upon

the

effective management of human resources. Due to change in

structure,

technology,

communication

and

information

revolution. Computer applications in business practices change

in human values, individual need for the accomplishment of
self-actualizations. Human resources of the business houses are
to be planned to get maximum result and to attain quality of
work life and total quality management.
OBJECTIVES OF HRM:

HRM has several objectives. Its main objective is to make the

organization people-oriented and to have number of people
programs. The objectives are as follows:
To make the organization people to acquire power to perform
the different types of work that may come in their way at
present or in future.
To develop the inner hidden talent of individual workers
which may be used for the development of the organization.
To increase co-operation and trust and to involve employees
actively in the companys affairs.
The main objective of HRM is training and development of
employees of an organization.
The existing employee will also be trained to take up more
responsibilities.
To train new employees to the level required by the
organization culture, which help the organization to perform
their task effectively.
To

develop

teamwork

among

the

workers

and

an

organization to grow and make the individual workers to be

dynamic.

 HRM provides opportunity to employees to grow and

strengthen management and professional teams in all the
areas of the organization.

FUNCTIONS OF HRM:
The functions of HRM can be broadly classified in to categories.
vise.

I.

I.

MANAGERIAL FUNCTIONS

II.

OPERATIVE FUNCTIONS

MANAGERIAL FUNCTIONS:

Managerial functions of personnel management involve planning,

organizing, Directing, and controlling. All these functions influence
the operative functions.
1. Planning: Planning is determination of personnel programs
and changes in advance that will contribute to the
organizational goals.
2. Organizing: An organization is a means to an end.
Organization is a structure & a process by which co-

operative group of human beings allocated its task among

its members, identifies relationships and integrates its
activities

to

words

common

objectives.

Organization

establishes relationships among the employees so that they

can collectively contribute to the attainment of company
goals.
3. Directing: The next logical function after completing
planning and organizing is the execution of the plan. The
basic function of personnel management at any level is
motivating, commanding, leading and activating people.
Direction is an important managerial function in sound
industrial and human relations besides securing employee
contributions.
4. Controlling: After planning, organizing & directing the
various

activities

of

the

personnel

management

the

performance is to be verified in order to know that the

personnel functions are performed in conformity with the
plans

&

direction.

Controlling

also

involves

checking,

verifying & comparing of the actual with the plans,

identification of deviations if any and correcting of identified
deviations. Thus, action and operation are adjusted to predetermined plans and standard through control.

II. OPERATIVE FUNCTIONS:

The operative functions of personnel management are

related to specific activities of personnel management viz,
employment, development, compensation & relations. All these
functions are interacted by managerial functions.
1. Employment:
It is the first operative function of HRM. Employment is
concerned with securing & employing the people possessing
required kind and levels of human resources necessary to
achieve the organizational objectives.
a) Human Resources Planning:
It is a process for exterminating and
assuring that the organization will have an adequate
number of qualified persons, available at proper times,
performing jobs which would meet the needs of the
organization & which would provide satisfaction for the
individuals involved.
b) Recruitment:
It is a process of searching for prospective employees
and

stimulating them to apply for job in on

organization.
2. Human Resources Development:

It is the process of improving, molding and changing

the skills, knowledge, creative ability, aptitude, attitude,
values, commitment etc, based on present & future job &
organizational requirements.
3. Compensation:
It is the process of providing adequate, equitable
and fair

remuneration to the employees. It includes job

evaluation, wage and salary administration, incentives, bonus,

fringe benefits, social security measures etc.
4. Human Relations:
Practicing various human resources policies and
programs like employment, development and compensation &
interaction among employees create a sense of relationship
between individual worker and management among workers &
trade unions and management.
5. Effectiveness of HRM:
Effectiveness of various personnel programs and
practices can be measured or evaluated by means of
organizational & HR Accounting etc.