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Human Resource Management brings organizations and people together so that the goals of
each are met. The nature of HRM includes:
Broader function
Human Resource Management is a comprehensive function because it is about managing people
in the organization. It covers all types of people in the organization from workers till the top level
People oriented
Human resource is the core of all the processes of human resource management. So HRM is the
process which brings people and organizations together so that their goals can be achieved.
Action oriented
Human resource management believes in taking actions in order to achieve individual and
organizational goals rather than just keeping records and procedures.
Development oriented
Development of employees is an essential function of human resource management in order to
get maximum satisfaction from their work so that they give their best to the organization.
Continuous function
As human resource is a living factor among all factors of production therefore it requires
continuous improvement and innovations in order to get excellence. So it requires a constant
alertness and awareness of human relations and there importance in every day to day
Future oriented
HRM is very important activity which helps organization to achieve its objectives in future by
providing well motivated and competent employees.
Human resource management means management of people at work. HRM is the process which
binds people with organizations and helps both people and organization to achieve each others
goal. Various policies, processes and practices are designed to help both employees and
organizations to achieve their goal.

Human resource management is branch of management that deals with people at work; it is
concerned with the human dimensions of management of the organization. As organization
consists of people, therefore acquiring those, developing their skills, providing them motivation
in order to attain higher goal and ensuring that the level of commitment is maintained are the
important activities.
Human resource constitutes of all the management decisions responsible for relationship
between organization and employees.

HRM is the field of management which plans, organizes, controls the functions of procurement,
development, maintenance and utilization of the work force so that.
1. Organization goals can be accomplished.
2. Objectives of human resources can be accomplished.
3. Objectives of society can be accomplished.
Human resource management can be concluded as a business oriented philosophy concerned
with the management of people in order to obtain added value from them and achieve
competitive advantage.
Significance of HRM can be discussed at four levels which are as follows:
Corporate Level
For an enterprise effective HRM leads to attainment of its goal efficiently and effectively. HRM
helps enterprise in the following ways.
a. Hiring required skill set and retaining them through effective human resource planning,
recruitment, selection, placement, orientation and promotion policies.
b. Development of employees by enhancing necessary skills and right attitude among employees
through training, development, performance appraisals etc.
c. HRM also takes care of optimum utilization of available human resource.
d. HRM also ensures that organization has a competent team and dedicated employees in
Significance at Professional Level
a. HRM also leads to improved quality of work life; it enables effective team work among
employees by providing healthy working environment. It also contributes to professional growth
in various ways such as

Enabling healthy relationships among teams and allocating work properly to employees as well
as teams.
Significance at Social Level
a. HRM plays important role in the society, it helps labour to live with pride and dignity by
providing employment which in turn gives them social and psychological satisfaction.
b. HRM also maintains balance between open jobs and job seekers.
Significance at National Level
HRM plays a very significant role in the development of nation. Efficient and committed human
resource leads to effective exploitation and utilization of a nations natural, physical and financial
resources. Skilled and developed human resource ensures the development of that country. If

people are underdeveloped then that country will be underdeveloped. Effective HRM enhances
economic growth which in turn leads to higher standard of living and maximum employment.
Human Resource Planning is the process of forecasting a firms future demand for, and supply
of, the right type of people in the right number.
Human Resource planning includes the estimation of how many qualified people are
necessary to carry out the assigned activities, how many people will be available, and what, if
anything, must be done to ensure that personnel supply equals personnel demand at the
appropriate point in the future.
Specifically, human resource planning is the process by which an organization ensures that it
has the right number and kind of people, at the right place, at the right time, capable of
effectively and efficiently completing those tasks that will help the organization achieve its
overall objectives. Human resource planning translates the organizations objectives and plans
into the number of worker needed to meet those objectives. Without a clear cut planning,
estimation of an organizations human resource need is reduced to mere guesswork.
A. Decenzo and Stephen P. Robbins

Type and strategy of organization

Organizational growth cycle and planning
Environmental uncertainties
Time horizons
Type and quality of forecasting information
Nature of jobs being filled

HR Demand Forecast
Demand forecasting is the process of estimating the quantity and quality of people required to
meet future needs of the organization.

Ratio trends analysis

Regression analysis
Work study techniques
Delphi techniques
Managerial judgments

HR Supply Forecast
Supply forecast determines whether the HR department will be able to procure the required
number of personnel. Specifically, supply forecast measures the number of people likely to be
available from within and outside an organization.
The supply analysis covers:
Existing human resources
Internal source of supply
External source of supply

What is a Job?
Job may be defined as collection or aggregation of tasks, duties and responsibilities which as a
whole, are regarded as a regular assignment to individual employees.
Job Analysis is the process of studying and collecting information relating to the operations
and responsibilities of a specific job. The immediate products of this analysis are job description
and job specification.
Job analysis involves following steps:

Collecting and recording job information

Checking the job information for accuracy
Writing job description based on information
Using the information to determine the skill, abilities and knowledge
Updating the information from time to time

Job Description- A list of jobs duties, responsibilities, reporting relationship, working

conditions, and supervisory responsibilities.
Job Specification - A list of jobs human requirements that is, the requisite education, skills,
personality and so on.

It is the process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted. The
result is pool of applicants from which new employees are selected.
The Process of generating a pool of qualified candidates for a particular job.
The Process of discovering potential candidates.
Initiating the Recruitment Process
Prior to initiating a recruitment procedure, the following matters should be considered:
Clarification of the scope and skill sets required to successfully perform the duties of
the position
Review of the Job Fact Sheet or Position Description to ensure that the skills and
abilities required coincide with the current expectations of the position. If they do
not, then a position evaluation should be undertaken.
Review of the compensation available to the position (i.e. salary and benefit plans,
Analysis of the impact that the hiring will have on the budget
Factors Affecting Recruitment

The extent and intensity of recruitment efforts vary from organization to organization. These
efforts will depend on various factors which are as follows:

Size of the organization

Employment conditions in the community where the organization is located.
The effectiveness of past recruitment efforts.
Working conditions, salary, and benefit packages offered by the organization
The growth of the organization.

The Process of Recruitment

Recruitment is a process consisting of the following steps:

Preparation of the HR Plan.

Keeping contact with recruitment sources inside and outside the organization.
Manager notifies HR department about a job opening that needs to be filled.
The recruitment officer and the manager review the job description and job specification
of the job to be filled.
Internal sources are checked.
External sources are contacted.
Candidates are selected.
Evaluation of the effectiveness of the recruitment efforts.

The Sources of Recruitment

There are two general sources of recruitment the organization can tap:
The Internal Sources of recruitment include the following:
Present Employees
Friends of Employees
Former Employees

The External Sources of Recruitment consist of the following:

Employment Agencies
Campus Recruiting
Executive Search Firms
Professional Organizations
Walk-in Applicants
Electronic Recruiting

Selection is the process of differentiating between applicants in order to identify those with
a greater likelihood of success in a job.
Selection refers to the process of choosing individuals from a pool of applicants who are
most likely to achieve the goals of the jobs that may be assigned to them.

The selection of a candidate with the right combination of education, work experience, attitude,
and creativity will not only increase the quality and stability of the workforce, it will also play a
large role in bringing management strategies and planning to fruition.
Basic Testing Concepts
Generally tests are administered to determine the applicants

Ability tests
Helps to determine how well one can perform his task
Aptitude tests
Helps to determine a persons potential to learn in a given area
Personality tests
To measure a prospective employees motivation to function in a particular
working environment