Chapter I

Functions & Objectives of HRM

Introduction of HRM

Meaning of HRM

Definition of HRM

Functions of HRM

Objectives of HRM

Conclusion

Introduction of HRM

Human resource are the most valuable and unique asset of an organization. The successful
management of an organization’s human resource is an exciting , dynamic and challenging task ,
especially at a time when the world has become a global village and economies are in a state of flux.
The scarcity of talented resource and the growing expectation of the modern day worker have further
increased the complexity of the human resource function.

Even though specific human resource function/activities are the responsibility of the human resource
department , the actual management of human resource is the responsibility of all the manages in an
organization.

It is therefore necessary for all managers to understand and give due importance to the different
human resource policies and activities in the organization. Human Resource management outlines the
importance of HRM and its different function in an organization. It examines the various HR process
that are concerned with attracting , managing , motivating and developing employees for the benefit
of the organization.

Meaning of HRM

Human Resource Management (HRM) can be defined as the set of programs, functions, and activities
designed and performed in order to maximize both employee as well as organizational effectiveness.
It is a management function that helps organization in recruiting, selecting, training, developing and
managing its members. HRM is concern with the management of people in the organization from
Recruitment to Retirement.

Definition of HRM

1.) According to Flippo, “human resource management is the   planning , organizing , directing and
controlling of the procurement, development, compensation, integration, maintenance, and separation
of human resource to the end that individual, organizational and social objectives are accomplished.”

2) According to decenzo and Robbins, “HRM is concerned with the people dimension in
management. Since every organization is made up of people, acquiring their services, developing their
skills, motivating them to higher level of performance and ensuring that they continue to maintain
their commitment to the organization are essential to achieving organizational objectives. This is true,
regardless of the type of organization-government, business , education, health , recreation, or social
action.”   

3.) HRM is the function within an organization that focuses on recruitment of, management of, and
providing direction for the people who work in the organization. Human Resource Management can
also be performed by line managers.

4) Human Resource Management is also a strategic and comprehensive approach to managing people
and the workplace culture and environment. Effective HRM enables employees to contribute
effectively and productively to the overall company direction and the accomplishment of the
organization’s goals and objectives.

5) Human Resource Management is the organizational function that deals with issues related to
people such as compensation, hiring, performance, management, organization development, safety,
wellness,  benefits, employee motivation communication, administration, and training.  

Functions of HRM

Management of human resources consist of several inter-related function. These function are common
to all organization though every organization may broadly be classified into  two categories,viz.,

(1) managerial function, and

(2) operating functions.

There are three types of function.
Managerial function
Operative function
Procurement Function 

(1) Managerial Function

Planning

Organizing

Directing

Controlling

(2) Operative Function

The operative or service functions of human resource management are concerned with specific
activities of procuring, developing, compensating and maintaining an efficient work force.

(3) Procurement Function

It is concerned with securing and employing the right kind and proper number of people required to
accomplish the organizational objectives. It consists of the following activities:

(a) Job analysis:-

 It is the process of studying in a job so as to identify the nature and level of human resources required
to perform the job effectively.

(b) Human Resource Planning:-

   It is the process of estimating the present and future manpower requirements of the organization,
preparing inventory of present manpower and formulating action programmes to bridge the gaps in
manpower.

(c) Recruitment:-

 It is the process of searching for required human resource and stimulating them to apply for jobs in
the organization.
(d) Selection:-

It implies judging the suitability of different candidates for jobs in the organization and choosing the
most appropriate people.

(e) Placement:-

 It means assigning suitable jobs to the selected candidates so as to match employee qualifications
with job requirements. 

(f) Induction or orientation :-

 It involves familiarizing the new employees with the company, the work environment and the
existing employees so that the new people feel at home and can start work confidently.

2. Development Function

 Human resource development is the process of improving the knowledge, skills, aptitudes and values
of employees so that they can perform the present and future jobs more effectively. This function
compromise the following activities:

a. Performance and Potential Appraisal :-

It implies systematic evaluation of employees with respect to their performance on the job and their
potential for development.

b.Training :-

 It is the process by which employees learn knowledge, skills and attitudes to further organizational
and personal goals.         

c.Executive Development :-

 It is the process of developing managerial talent through appropriate programmes.

d.Career Planning and Development :-

   It involves planning the career of employees and implementing career plans so as to fulfill the career
aspirations of people.

Compensation Functions
It refers to providing equitable and fair remuneration to employees for their contribution to the
attainment of organizational objectives. It consists of the following activities:

a. Job Evaluation :-

It is the process of determining the relative worth of a job.

b.Wage and Salary Administration :-

It implies developing and operating a suitable wage and salary programme.

c.Bonus :-                                    

It involves payment of bonus under the Payment of Bonus Act,1965 as well as non-statutory bonus
and other incentives.

Integration Function

It is the process of reconciling the goals of the organization with those of its members. Integration
involves motivating employees through various financial and non-financial incentives, providing job
satisfaction, handling employee grievances through formal grievance procedures, collective
bargaining, worker’s participation in management, conflict resolution, developing sound human
relation, employee counseling, improving quality of work life, etc. 

Maintenance Function

It is concerned with protecting and promoting and promoting the physical and mental health of
employees for this purpose several types of fringe benefit such as housing, medical aid, educational
facilities, conveyance facilities, etc. are provided to employees. Social security measures like
provident fund, pension, gratuity, maternity benefits, injury/disablement allowance, group insurance,
etc. are also arranged.

Objectives of HRM

1)To help the organization reach its goals.

2)To ensure effective utilization and maximum development of human resource.

3)To ensure respect for human beings. To identify and satisfy the needs of individuals.

4)To ensure reconciliation of individual goals with those of the organization.

5)To achieve and maintain high moral among employees.

6) To provide the organization with well-trained and well-motivated employees.

7) To increase to the fullest the employee’s job satisfaction and self- actualization.

8) To develop and maintain a quality of work life.

9) To be ethically and socially responsive to the needs of society.

10) To develop overail personality of each employee in its multidimensional aspect.

11) To enhance employee’s capabilities to perform the present job.

12) To equip the employees with precision and clarity in trans-action of business.

Conclusion

In today’s lecture, we will be having overview of the entire course we have covered in previous
modules and will consider the reasons of importance of HRM.

A Human Resource Management is a managerial function tries to match an organization’s needs to

the skills and abilities of its employees. Attracting developing, motivating and retaining required
talent and people in organization carries out this function. 

Workforce of the organization is also being utilized as a source of competitive advantage by acquiring
financial or economic capabilities, product capabilities, technological or process
capability,   organizational capability function. 

Workforce of the organization is also being utilized as a source of competitive advantage by acquiring
financial or economic capabilities, product capabilities, technological or process capability,
organizational capability.
BIBLIOGRAPHY
1.      Human resource management: By - C. B. Gupta
2.      Human resource management: By – K. Aswathappa

3.      Human resource management: By – Dr. Tripathi

4.       Personnel Management- Text & Cases: By – C.B. Mamoria & S. V. Gankar