Chapter 1 nature and scope of hrm

1.1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

HRM is an art of managing people at work in such a manner that they give to the
organisation. Human resource management is a management function that helps managers
to recruit, select ,train and develop numbers for an organisation .
DEFENITION
according to Flippo, Human resource management is planning, organising ,directing and
controlling of the procurement, development ,compensation,integration,maintenance and
separation of human resources to the end that individual organisational and social objectives
are accomplished .
NATURE OF HUMAN RESOURCE MANAGEMENT
The following are the features of HRM
1. HR management as social system
HRM as a social system consisting of Mini subsystems which are integrated to
constitute an entity.

2. Hr management as open system

HRM like any other social system is an open system it interacts with environment and
hence it is not free to decide the things on its own.

3. Adaptive
Organisation as an open system its survival and growth in a dynamic environment
demands and adaptive system which can continuously adjust to changing environment.

4. Dynamic
HRM as a dynamic system it suggest that management atoms at achieving equilibrium
in the organisation

5. Probabilistic
HRM is probabilistic and not deterministic in the case of probabilistic model the
outcome can be assigned only with Probability and not certainity.

6. Multilevel and multidimensional

system approach of Management points of the multi level and multidimensional
features of HRM.It has both macro and micro approaches.

7. Multivariable
HRMis a multivariable animals taking into account many variables simultaneously
this feature of silence is just that there is no simply cause effect phenomenon.
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8. An integrated approach
systems approach of HRM takes an integrated value of managing.It identifies the
reason for a phenomenon in wider context taking into account the total factors affecting
the phenomenon.

1.1.2 Objectives of Human Resource Management

The principal objectives of HRM are
1. To help the organisation reach its goal.
2. To employee the skills and abilities of workforce efficiently.
3. To provide the organisation with well trained and will motivated employees.
4. To increase to the fullest the employee job satisfaction and self actualization.
5. To develop and maintain the quality of worklife.
6. To communicate HR policies to all employee.
7. To be a ethically and socially responsible to the needs of society.
8. To establish and maintain sound organisation structure.

1.1.3 Scope of Human Resource Management

1. Human resources planning:
Human resource planning is a process by which the company to identify the number
of jobs vacant ,whether the company has excess staff or shortage of staff and to deal with
it.
2. Job analysis design
job analysis gives a detailed explanation about each and every job in a company.
Based on this job analysis the company prepares advertisements.

3. Recruitment and Selection:

Based on information collected from the job analysis the company advertisement and
publishers done in the newspaper patients received after the advertisement is published
interviews are conducted and the right employee is selected thus recruitment and
selection or yet another important areas of HRM.

4. Orientation and Induction

Once the employees have been selected and induction or orientation programme is
conducted.Then they are told about the organisational culture and values and work ethics
and introduced to the other employees.

5. Training and development

Every employee under goes training program which helps in to put up a better
performance on the job.Training program is also conducted for existing staff that have a
lot of experience .This is called refreshes training .
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6. Performance appraisal
Once the employee has put in around 1 yr of service ,Performance appraisal is
conducted i.e. the HR department checks the performance of the employee.Based on the
appraisal Future promotions ,incentives,increments in salary are decided.

7. Compensation planning and remuneration

There are various rule regarding compensation and other benefits.It is the job of HR
department to look into remuneration and compensation planning.

8. Motivation welfare health and safety

Motivation becomes important to sustain the number of employees in the company .
It is the job of HR department to look into the different methods of motivation.Apart
from this certain and health and safety regulations have to be followed for the benefits of
employees.
9. Industrial Relations
Another important area of HRM is maintaining cordial relations with Union members
this will help the organisation to prevent strikes lockets and ensure smooth working in
the company.

1.2 Functions of management

Generally the functions performed by Human Resource Management can be broadly
classified into two categories .
They are
1. Managerial function
2. operative function

1.2.1 Managerial function

1. Planning
This involves predetermined course of action.In this process organisation girls and
formation of policies and programmes for achieving them are chalked out. Awell thought
out plan execution perfect and easy.

2. Organising
Organising is the process by which the structure and allocation of jobs are
determined.organising involves each subordinate of a specific task establishing
departments ,delegating authority to subordinates ,establishing channels authority and
communication, and coordinating the work of subordinates.

3. Staffing
This is a process by which managers select, train, promote and retire the subordinates.
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This involves in deciding the type of people to be hired, recruiting prospective

employees,selecting employees, setting performance standard,compensating employees ,
evaluating performance , counselling employees , training and developing employees.

4. Directing
Directing is the process of activating group efforts to achieve the desired goals
analysing the learning requirements to ensure that employees process the knowledge and
skills to perform satisfactorily in their jobs.

5. Controlling
This is the process of setting standards for performance checking to compare see how
actual performance compares with the set standards and taking needed corrective action.

1.2.2 The Operating functions

The operative functions are related to specific activities of HRM like procuring,
developing ,compensating, integrating and maintaining the employees for attending the
organisational goals .This functions are also known as service functions .
1. Procurement
This function is concerned with procuring and employing people who process necessary
skill knowledge and aptitude it includes following:

a. Job analysis
It is the process of collecting information relating to the operations and
responsibilities pertaining to a specific job.
b. Human resource planning
Involves forecasting the requirements and future supply of human resources and
Organisation of suitable and adequate manpower performs various jobs in accordance
with organisational goals.
c. Recruitment
It is the process of searching for prospective employees and stimulating them to
apply for job in the organisation.
d. Selection
It is the process of choosing capable applicants according to pre determined
number out of large number of applicants through different test.
e. Placement
It means sending the newly employed person to some department for work.It is
based on the qualification and qualities of the person selected.
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f. Induction
Induction induction is the welcoming process to make the new employees feel at
home and generate in feeling of belonging to the organisation
g. Internal mobility
The moment of employees from one job to another through transfer and promotion
is called internal mobility.
2. Development
It is a process of training and developing employees to improve and update their
knowledge skill aptitude and attitude.It helps them to perform their job better.The function
includes
a.Training
It is the continuous process by which employs learn skills knowledge ability and
aptitude organisational and personal goals.
b. Executive development
It is the systematic process of developing managerial skills and capabilities to
appropriate program.
c. career planning and development
It refers to identifying once career goals and formulating plans of reaching them
through means of education, training and work experiences.
d.Human resource development
It create a climate that enable every employee to develop and uses capabilities.
3. Motivation and Compensation
It is a process which stimulates people to give their best to organisation through the
use of intrinsic and extrinsic rewards.
a. Job deign
The main purpose of job design is to integrate the needs of employers to suit the
requirements of an organisation.
b. Work scheduling
It is an attempt to structure work incorporating the physical and behavioural aspects of
work.
c. Motivation
It is the complex of forces inspiring and keeping a person at work in an organisation.
d. Job evaluation
It is a systematic process of determining the relative worth of jobs in order to
establish which job should be paid more than others within the organisation.
e. Performance appraisal
It is a systematic and objective way of evaluating work related behaviour and
potential of employees.

f. compensation Administration
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The main purpose to design a low-cost pay plan that will attract and retain competent
employees.
g. Incentives and Benefits
In addition to basic wage structure, organisation offer incentive compensation based
on actual performance .it includes social security, insurance ,welfare amenities etc.
4. Maintenance
It aims to protecting and preserving the physical and psychological health of
employees through various welfare measures.
a. Health and safety
All employees for ensuring a work environment that protects from physical hazard
and unhealthy condition.
b. Employee welfare
It includes the services ,amenities and facilities offered to employees within or
outside establishment for their well being.
c. social security measures
To provide social security to employees in addition to fringe benefits .It includes
Maternity benefits, dependent benefits, retirement benefits, medical benefits
disablement benefits, etc.
5. Integration Function
It helps to integrate the goals of an organisation with employee aspiration through
various employee oriented programs.
a. Grievance redressal
Every organisation requires a permanent procedure for handling employees
grievances.
b. Discipline
Working in accordance with state and recognise rules regulation and Customs
whether they are written or interested in character.
c. Teams and team works
Self managed teams have emerged as formal groups in organisation. Teams have
inherent strengths which lead to organisational goals.
d. collective bargaining
It is the process of agreeing on satisfactory labour contract between management
and union.
e. Employees participation and empowerment
Participation means sharing the decision making power for the lower ranks of an
organisation in an appropriate manner.

f. Trade unions and Employees Association

It is a continuous Association of workers for the purpose of maintaining or
improving the conditions of their working lives.