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An organization is driven by human capital and the quality and effectiveness of the
organization is determined by the quality of the people that are employed. the resources of
men money material and machine are collected and coordinated through people. Without
people organization can not exist. Success for most organizations depends on finding the
employees with the skills to successfully perform the tasks required to attain the companys
strategic goals. Management decisions and processes for dealing with employees are critical
to ensure that the organization gets and keeps the right staff.
HRM may be defined as a set of policies practices and programs designed to maximize both
personal and organizational goals. The process of binding people and organizations together
so that the objectives of the each are achieved. Some definitions of HRM are as follows
HRM is the management function that is concerned with getting, training, motivating
and keeping competent employees.
HRM is a most advanced approach in the field of resource mgmt. talks about optimal
utilization of human capital. The approach is integrative and supportive.
HRM does talk about the cultivation of a skillful environment in which people or
employee associate are able to extract their highest potential.
HRM deals with the day to day operations of the human resources department. This
curriculum would include business law, compensation, employee relations, benefits, and
medical etc.
Human Resource Management ("HRM") is a way of management that links people-related
activities to the strategy of a business or organization. HRM is often referred to as "strategic
HRM". It has several goals:
To meet the needs of the business and management (rather than just serve the interests
of employees);
To link human resource strategies / policies to the business goals and objectives;
To find ways for human resources to "add value" to a business;
To help a business gain the commitment of employees to its values, goals and
objectives
Definition of HRD
HRD DEALS WITH DEVLOPMENT & UPGRADATION OF HUMAN CAPITAL
(EXSISTING MAN POWERS UPGRADATION IN AN ORGANISATION).IT IS A LONG
TERM PROCESS.
A Set of systematic and planned activities designed by an organization, to provide its
members with the necessary skills to meet current and future job demands. It is a part
of HRM.
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HRD: Human Resource Development deals with the training and the developmental aspect
of employees. Most HRD curriculum includes classes like T & D, Organizational dev.,
industrial psy.
DIFFERENCE B\W HRM & HRD
HRM stocks the human capital as given and tries to optimally allocate among different
process activity in such a way that the output is maximized.
HRD tries to bring qualitative changes in stock of human capital in accordance with the need
of organization and corporate objective .it tries to mold the employee according to
organization requirement.
HRD focuses on training and optimizing work performance. HRM focuses on whom you
hire, whom you fire and remediation to employees who need discipline and retooling to
continue their employment.
HRD is more proactive; it copes with the changing needs of the people as well as anticipates
these needs and HRD is function more independent with separate roles to play.
HRD is sub-system of a large system, more organizational oriented and HRD is function
more independent with separate roles to play.
HRD is developing the whole organization and HRM is concerned with people only.
HRD is continuous process and HRM is a routine and administrative function.
HRD is involvement of the entire work force from top to bottom is more and a must in most
of the cases and HRM is basically the responsibilities of the HR department
Point of distinction
1. status
2. orientation
HRM
HRD
It is and independent
It is an integrated system
functions with independent consisting of
sub function.
interdependent sub system
It is a service and reactive
function
It is a proactive function
3. aims
It seeks to improve
efficiency of people and
administration
4. incentives used
It focuses on salary,
economic rewards, job
simplification and job
specification for
motivating people.
It focuses on autonomous
work group. Job challenges
and creativity for
motivating people
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5. responsibility
It is considered to be
responsibility of hrm
OPERATIVE FUNCTIONS
1. Procurement function: It is concerned with securing and employing the right kind
and proper number of people required accomplishing the organization objective.
a. Job analysis: It is the process of studying in detail the operation and
responsibilities involved in a job so as to identify the nature and level of HR
required. Job description is prepared with the help of information provided by
Job Analysis.
b. Hr planning: It is the process of estimating present and future manpower
requirements of organization and formulating action programs to bridge the gap
of manpower.
c. Recruitment: It is the process of searching for required personnel and
stimulating them to apply for job in the organization. A proper balance should
be maintained between internal and external sources of recruitment.
d. Selection: It refers to employers judging the suitability of different candidates
for job in the organization and choosing the most appropriate persons
e. Placement: It means assigning suitable jobs to selected candidates so as to
match employees qualification with job requirement
f. Induction: It involves familiarizing the new employees with company. the work
environment and existing employees so that the new people feel at home and
can start work confidently.
effectiveness of job is compared with its relative worth in terms of time and
money.
b) Wages and salary administration; It implies developing and operating
suitable wages and salary programmed conducted to determine wages and
salary structure for various jobs in the organization.
c) Bonus: It involves payment of bonus paid under the Payment of Bonus Act,
OBJECTIVES OF HRM
1. SOCIETAL- To be ethically and socially responsible to the needs and
T&D
OD
HRP
Employee Assistance