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Human Resource Management is a management function concerned with hiring, motivating,
and maintaining workforce in an organisation. Human resource management deals with issues
related to employees such as hiring, training, development, compensation, motivation,
communication, and administration. Human resource management ensures satisfaction of
employees and maximum contribution of employees to the achievement of organisational
According to Armstrong (1997), Human Resource Management can be defined as “a strategic
approach to acquiring, developing, managing, motivating and gaining the commitment of the
organisation’s key resource – the people who work in and for it.”

Nature of Human Resource Management
1. HRM is based on certain principles and policies contribute to the achievement of
organisational objectives.
2. HRM is a pervasive function – Human resource management is not specific to an individual
department, rather it is a broader function and spread throughout the organisation, it manages all
type of people from lower level to top level departments of the organisation.
3. HRM is people oriented – People or human resource is the core of all the activities of human
resource management. Human resource management works with and for people. It brings people
and organisation together to achieve individual and organisational goals.
4. HRM is continuous activity – All factors of production are required to be continuously updated
and improved to cope up with the changes and increased competition. Similarly, human resource
also continuously trained, developed, or replaced to face the next level of competition. Hence, it
is a continuous activity.
5. HRM is a part of management function.
6. HRM aims at securing maximum contribution.
7. HRM aims at optimum use of personnel power.

Scope of Human Resource Management
1. Personnel Aspect
Human Resource Planning – It is the process by which the organisation identifies the number of
jobs vacant.

Recruitment and Selection – Recruitment is the process of preparing advertisements on the basis of information collected from job analysis and publishing it in newspaper. Compensation Planning and Remuneration – It is the job of Human Resource Management to plan compensation and remunerate. creches. • To increase to the fullest the employee’s job satisfaction and self-actualization. education.joint consultation. Training and Development – Training is provided to both new and existing employees to improve their performance. Motivation – Human Resource Management tries to keep employees motivated so that employees put their maximum efforts in work. and work ethics. rest and lunch rooms. transfers. and amenities like canteens. culture. • To develop and maintain a quality of work life. • To ensure respect for human beings. Selection is the process of choosing the best candidate among the candidates applied for the job. It also covers . Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the union members to avoid strikes or lockouts to ensure smooth functioning of the organisation. housing. recreation facilities. 3. and dispute settlement. documenting. transport. . • To be ethically and socially responsive to the needs of society. collective bargaining.Job Analysis and Job Design – Job analysis is the systematic process for gathering. health and safety. • To provide the organization with well-trained and well-motivated employees. To identify and satisfy the needs of individuals. grievance and disciplinary procedures. • To develop overall personality of each employee in its multidimensional aspect. Performance Appraisal – Performance check is done of every employee by Human Resource Management. and analysing data about the work required for a job. • To achieve and maintain high morale among employees. 2. Human Resource Management: Objectives • To help the organization reach its goals. Orientation and Induction – Making the selected candidate informed about the organization’s background. It deals with working conditions. and salary increments are decided on the basis of employee performance appraisal. • To ensure reconciliation of individual goals with those of the organization. • To ensure effective utilization and maximum development of human resources. incentives. etc. Job analysis is the procedure for identifying those duties or behaviour that define a job. Welfare Aspect – Human Resource Management have to follow certain health and safety regulations for the benefit of employees. Promotions. values. medical assistance.

managers. and 4. team work and inter-team collaboration. The basic human resource planning strategy is staffing and employee development. Staffing: Staffing emphasises the recruitment and selection of the human resources for an organisation. performance appraisal measures serve to stimulate and guide employee development as well as salary administration purposes. and administer policies and programmes designed to make expeditious use of an organisation’s human resources. Job descriptions are a vital source of information to employees. such as skills. Employee maintenance. Although each human resource function can be assigned to one of the four areas of personnel responsibility. Staffing. Job Analysis: Job analysis is the process of describing the nature of a job and specifying the human requirements. • To equip the employees with precision and clarity in trans¬action of business. the number and type of employees needed to accomplish organisational goals are determined. the most qualified applicants are selected for hiring from among those attracted to the organisation by the recruiting function. 3. 2. On selection. Human resources planning and recruiting precede the actual selection of people for positions in an organisation.See more at: Human Resource Management Functions The role of human resource management is to plan. It is that part of management which is concerned with the people at work and with their relationship within an enterprise. In the selection function. Planning. • To inculcate the sense of team spirit. The compensation function facilitates retention of employees and also serves to attract potential employees to the organisation. he major functional areas in human resource management are: 1. . and experience needed to perform it. Research is an important part of this function because planning requires the collection and analysis of information in order to forecast human resources supplies and to predict future human resources needs. A brief description of usual human resource functions are given below: Human Resource Planning: In the human resource planning function. For example. The end product of the job analysis process is the job description. A job description spells out work duties and activities of employees. . abilities. These four areas and their related functions share the common objective of an adequate number of competent employees with the skills. develop. Recruiting is the personnel function that attracts qualified applicants to fill job vacancies. knowledge. and personnel people because job content has a great influence on personnel programmes and practices. Employee development. and experience needed for further organisational goals. some functions serve a variety of purposes.• To enhance employee’s capabilities to perform the present job.

human resource functionaries are involved in developing and administering methods that enable managers to decide which applicants to select and which to reject for the given jobs. the human resource function of administering employee benefits shares many characteristics of the compensation function. benefits are primarily related to the maintenance area. However. including pay and benefit programmes. performance appraisal information is essential for employee development since knowledge of results (feedback) is necessary to motivate and guide performance improvements. Unions are organisation of employees who join together to obtain . Since compensation is a major cost to many organisations. it is a major consideration in human resource planning. Compensation affects staffing in that people are generally attracted to organisations offering a higher level of pay in exchange for the work performed. Training and development programmes provide useful means of assuring that employees are capable of performing their jobs at acceptable levels. As such. Benefits include both the legally required items and those offered at employer’s discretion. It is related to employee development in that it provides an important incentive in motivating employees to higher levels of job performance and to higher paying jobs in the organisation. Human resource professionals are usually responsible for developing and administering performance appraisal systems. The cost of benefits has risen to such a point that they have become a major consideration in human resources planning. Performance Appraisal: Performance appraisal function monitors employee performance to ensure that it is at acceptable levels. Training and Development: The training and development function gives employees the skills and knowledge to perform their jobs effectively. since they provide for many basic employee needs. In addition to providing training for new or inexperienced employees. Pay is obviously related to the maintenance of human resources. and company rules and expectations. Large organisations often have development programmes which prepare employees for higher level responsibilities within the organisation. Compensation: Human resource personnel provide a rational method for determining how much employees should be paid for performing certain jobs. Orientation: Orientation is the first step toward helping a new employee adjust himself to the new job and the employer. Career Planning: Career planning has developed partly as a result of the desire of many employees to grow in their jobs and to advance in their career. Besides providing a basis for pay. Benefits: Benefits are another form of compensation to employees other than direct pay for work performed. and disciplinary action. Labour Relations: The term “labour relations” refers to interaction with employees who are represented by a trade union. promotion. although the actual appraisal of employee performance is the responsibility of supervisors and managers. Career planning activities include assessing an individual employee’s potential for growth and advancement in the organisation. organisations often provide training programmes for experienced employees whose jobs are undergoing change. working hours. It is a method to acquaint new employees with particular aspects of their new job.

and why records may or may not have been updated. the personnel responsibility primarily involves negotiating with the unions regarding wages. and resolving disputes and grievances. Personnel policies constitute guides to action. With regard to labour relations. Brewster and Richbell defined HRM policies as. seniority lists. why certain statements have been made. Where policies define a broad field. a set of proposals and actions that act as a reference point for managers in their dealings with employees. step-by-step sequence of required actions. health and medical records. The emphasis is on chronological. procedures show a sequence of activities within that area. a student is required to complete several itemized steps in order to register himself to complete several itemized steps in order to register himself for courses in a university. tardiness. philosophy. Example: One of the personnel objectives of Indian Railways is to provide equal employment opportunities to the people of minority sections. concepts and principles. They furnish the general standards or bases on which decisions are reached. maintaining. What is HRM Procedure? Policies are general instructions whereas procedures are specific applications. service conditions. employment history (jobs held. A procedure is a well thought out course of action. The basic purpose of a procedure is to spell out clearly the way one is to go about doing something. and retrieving employee related information for a variety of purposes. They are generally derived from policies. and other employee data.more voice in decisions affecting wages. earnings and hours of work. referred to earlier. Procedures are called ‘action guidelines. Record-keeping: The oldest and most basic personnel function is employee record-keeping. More than ever employees today have a great interest in their personnel records. turnover. Their genesis lies in an organizations values. procedures and programs Each and every organization has its laid down HRM policy depending upon their business activities and policy followed by their competitors. Personnel policies guide the course of action intended to accomplish personnel objectives. It prescribes the specific manner in which a piece of work is to be done. working conditions. The following example helps to understand the personnel policy clearly. promotions. transfers. and other aspects of employment. A policy is a plan of action. lay-offs). There is no hard and fast rule that certain organization has to follow a particular policy. Records which must be maintained include application forms. given are a few examples: . The policy. Complete and up-to-date employee records are essential for most personnel functions. This function involves recording. They want to know what is in them. absences. HRM policies. For instance. benefits. might be translated into action through the following procedure.

signaling staff. they should be filled only by the candidates belonging to scheduled castes and scheduled tribes in future. Fix the pay of officers according to the recommendations of the Pillai Committee. If suitable candidates are not available from these communities.5% of their vacancies in Group C and Group D categories from the candidates belonging to Scheduled Castes and Scheduled Tribes respectively. However. cashiers. Another example of policy and procedure is as follows: Pay Policy of Andhra Bank The bank believes in paying at least the prevailing scale of salary for similar work in comparable organizations. The procedures is — Fix the pay of clerks. North-East Frontier Railway can fill even these vacancies by the candidates belonging to other communities. In case of vacancies in other jobs. candidates belonging to scheduled caste and scheduled tribes will be given preference if they are equally qualified and meritorious than those of other communities. typists equal to the lowest pay given by any public sector in the country. station master will be filled by candidates belonging to other communities. the vacancies such as loco driver. In case of jobs in Group A and B. if the candidates from scheduled communities are not available. .Railway Policy All zonal railways will fill 15% and 7. The bank also believes in giving consideration to significant changes in the cost of living.