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Human Resource Management (HRM) is the function within an organization that

focuses on the recruitment of, management of, and providing direction for the
people who work in an organization.
The HRM department members provide the knowledge, necessary tools, training,
administrative services, coaching, legal and management advice, and talent
management oversight that the rest of the organization needs for successful
Components of HRM
HUMAN RESOURCE PLANNING HRP - is a process that identifies current and
future human resources needs for an organization to achieve its goals. The ongoing
process of systematic planning to achieve optimum use of an organization's most
valuable asset - its human resources. The objective of human resource (HR)
planning is to ensure the best fit between employees and jobs, while avoiding
manpower shortages or surpluses. The three key elements of the HR planning
process are forecastinglabor demand, analyzing present labor supply, and balancing
projected labor demand and supply.
Recruitment & Selection
Sourcing Candidates - This is the first step in the recruitment and selection
process. Sourcing candidates means your employment specialist is using a variety
of methods to find suitable candidates for job vacancies, can be done via online
advertising on job and career sites or professional networking and participation in
trade associations.
Tracking Applicants - The next steps in the recruitment and selection process are
tracking applicants and applications and reviewing resumes.
Preliminary Phone Interview - Conducting a preliminary phone interview is
essential for obtaining information about the applicants background, work history
and experience. When your employment specialist conducts a preliminary interview,
the objective is to determine whether or not the applicant has the requisite skills
and qualifications for the job vacancy
Face-to-Face Interview and Selection - In this stage of the recruitment and
selection process, the hiring manager reviews the applications and resumes the
employment specialist forwarded to her. The hiring manager invites the applicant to
interview face-to-face; communication about the interview and scheduling is
generally handled by the employment specialist. This ensures that all qualified
applicants receive the same information. At times, the employment specialist will
prepare the applicant for the face-to-face interview. After the hiring manager
interviews the applicant, she further narrows the field of candidates from which to

select for the job opening. In many companies, there is an additional interview by
the same hiring manager or perhaps a panel of interviewers.
Extending an Employment Offer - Once the hiring manager decides which
candidate is most suitable for the job vacancy, it is time to inform the candidate of
pre-employment matters, such as background inquiries, drug tests and, if
applicable, licensing information.
When recruiting for positions where you negotiate the terms of employment,
compensation and benefits, and other issues, a draft employment offer may change
hands from the candidate to the employer until the parties reach an agreement

-careful thought before making a decision or judgment


Employee Performance Management is a process for establishing a

shared workforceunderstanding about what is to be achieved at an organisation
level. It is about aligning the organisational objectives with the employees' agreed
measures, skills, competency requirements, development plans and the delivery of
results. The emphasis is on improvement, learning and development in order to
achieve the overall business strategy and to create a high performance workforce.
Training is the formal and systematic modification of behavior through learning
which occurs as a result of education, instruction, development and planned
Its a short term process.
Refers to instruction in technical and mechanical problems
Targeted in most cases for non-managerial personnel
Specific job related purpose
Development is any learning activity, which is directed towards future, needs
rather than present needs, and which is concerned more with career growth than
immediate performance
It is a long term educational process.
Refers to philosophical and theoretical educational concepts
Managerial personnel
General knowledge purpose

The term 'employee relations' refers to a company's efforts to manage

relationships between employers and employees. An organization with a good
employee relations program provides fair and consistent treatment to all employees
so they will be committed to their jobs and loyal to the company. Such programs
also aim to prevent and resolve problems arising from situations at work.
Management information system, or MIS, broadly refers to a computer-based
system that provides managers with the tools to organize evaluate and efficiently
manage departments within an organization. In order to provide past, present and
prediction information, a management information system can include software that
helps in decision making, data resources such as databases, the hardware resources
of a system, decision support systems, people management and project
management applications, and any computerized processes that enable the
department to run efficiently. It is a computerized database of financial information
organized and programmed in such a way that it produces regular reports on
operations for every level of management in a company. It is usually also possible to
obtain special reports from the system easily. The main purpose of the MIS is to give
managers feedback about their own performance; top management can monitor the
company as a whole.
Developing a quality workforce
INDUCTION is a technique by which a new employee is rehabilitated into his
surroundings and introduced to practices, policies and purpose of the organisation.
ORIENTATION is a process of acquainting new employees with the organization.
The orientation topics range from basic items such as the location of the company
cafeteria to such concern as various career paths within the organisation.
Performance Appraisal is the systematic evaluation of the performance of
employees and to understand the abilities of a person for further growth and

Maintaining a quality workforce

Career Development is the lifelong process of managing learning, work, leisure,
and transitions in order to move toward a personally determined and evolving
preferred future. Career development, a major aspect of human development, is
the process through which a person's work identity is formed. It spans his or her
entire lifetime. Career development begins with an individual's earliest awareness of
the ways in which people make a living.
Work-life Balance - You can only cut so many pieces from the pie. Means making
decisions around where, who, and what you're going to sacrifice, because you can't

do it all; is a concept that supports the efforts of employees to split their time and
energy between work and the other important aspects of their lives.
When most people hear the term compensation they think about "what a person is
paid" Compensation includes not only salary, but also the direct and indirect
rewards and benefits the employee is provided with in return for their contribution
to the organization.
Employee turnover refers to the proportion of employees who leave an
organisation over a set period (often on a year-on-year basis), expressed as a
percentage of total workforce numbers.
At its broadest, the term is used to encompass all leavers, both voluntary and
involuntary, including those who resign, retire or are made redundant, in which case
it may be described as overall or crude employee turnover
Retention relates to the extent to which an employer retains its employees and
may be measured as the proportion of employees with a specified length of service
(typically one year or more) expressed as a percentage of overall workforce
The study of labor-management relations (LMR) refers to the rules and policies
which govern and organize employment, how these are established and
implemented, and how they affect the needs and interests of employees and
employers. LMR has implications for the organization of work as well as economic
Elements & Model of HRM
Acquisition function is concerned with recruitment and selection of manpower
requirement for an organization. It ensures that the company has the right number
of people at the right place and at the right time who are capable to complete
required work. It is the starting point of human resource management function.
Acquisition is primarily concerned with planning, recruitment, selection and
socialization of employees. It selects and socializes the competent employees who
have adopted the organization's culture.
Development phase begins after the socialization of newly appointed employees
in an organization. It is concerned with imparting knowledge and skill to perform the
task properly. Moreover, it is an attempt to improve employee performance by
imparting knowledge, changing attitudes and improving skills. It can be done
class-room courses, assignments,
programs and so on.

Only training and development do not inspire employees to do better work. For this,
they should be motivated. Here motivation means an activity which induces and
inspires people to perform well in actual work floor. Motivation includes job
specification, performance evaluation, reward and punishment, work performance,
compensation management, discipline and so on. It is important for better work
performance because high performance depends on both ability and motivation.
Maintenance is the last components of human resource management. it is
concerned with theprocess of retaining the employees in the organization. This
contributes towards keeping the employees who can do extremely better for the
organization. It creates such a homely and friendly environment for those high
performers, and make them to remain in the same organization for a longer period
of time.
Functions of HRM
According to E.W. Vetter, human resource planning is the process by which a
management determines how an organisation should make from its current
manpower position to its desired manpower position.
Through planning a management strives to have the right number and the right
kind of people at the right places, at the right time to do things which result in both
the organisation and the individual receiving the maximum long range benefit.
Acquisition of Human Resources - the process of acquiring any person to an
Utilization of Human Resources - method that attempts to maximize
the efficiency of a companys employees. This can be accomplished by a variety
of methods, including training an employee in multiple areas so that they
can switch from one role to another depending upon where they are most needed at
a given time. This way, employees are not wasting time on less-profitable tasks.
Human Resource Development (HRD) is the framework for helping employees
develop their personal and organizational skills, knowledge, and abilities. Human
Resource Development includes such opportunities as employee training, employee
development, performance
management and
development, coaching, mentoring, succession
identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the
mostsuperior workforce so that the organization and individual employees can
accomplish their work goals in service to customers.
Maintenance of Human Resources - It is the supportive function of human
resource management. Through it the employee receives his due shares of wages

and salaries, rewards and sanctions, psychological motivation, wholesome and safe
physical working condition. It governs the worker orientation, motivation and
conditions of employment
Control of Human Resources - Internal Control Procedures; Human resources
departments interpret, implement and communicate workplace policies and
procedures. These rules occur on a federal, state and company level, making them
highly complex by nature.
Harmonious Employer-Employee Relationship - By motivating employees in a
proper manner, it will certainly improve their efficiency in work; hence the
companys productivity will increase; Improve or encourage two-way
communication, this will enable the company to reduce internal conflicts and
disputes, hence improve harmony amongst staff members; Encourage teamwork
always so that the organisations efficiency and productivity will improve.
Attainment of organizational objectives - familiar process of organizing the
people & resources economically thus to direct activities toward common goals and
objectives. Administrators, engage in a common set of objectives to meet the
organization goals. These common functions are; planning, organizing, staffing,
controlling, and budgeting.
Challenges to HRM
Globalization is a process of interaction and integration among the people,
companies, and governments of different nations, a process driven by international
trade and investment and aided by information technology. This process has effects
on the environment, on culture, on political systems, on economic development and
prosperity, and on human physical well-being in societies around the world.