Introduction

• Human Resource Management (HRM or HR) is

the management of human resources. Commonly
referred to as the HR Department, it is designed to
maximize employee performance in service of an
employer's strategic objectives. HR is primarily
concerned with the management of people within
organizations, focusing on policies and on systems.
• HR departments are responsible for
overseeing employee-benefits design,
employee recruitment, training and development,
 performance appraisal, and rewarding (e.g.,
managing pay and benefit systems). 
• HR also concerns itself with organizational
change and industrial relations, that is, the balancing
of organizational practices with requirements arising
from collective bargaining and from governmental
 Defined as…………………….
Human Resource Management is
defined as the art of procuring,
developing, motivating and maintaining
competent workforce to achieve
organisational goals efficiently.
 Human Resource
Management
Human Resource Management is a process of
bringing people and organisations together so that
the goals of each are met. It is the part of the
management process which is concerned with the
management of human resources in an
organisation. It tries to secure the best from people
by winning their whole hearted cooperation.
Human Resource Management
Human Resource Management includes all
activities used to attract & retain employees
and to ensure they perform at a high level
in meeting organizational goals.
These activities are made up of
1. Recruitment & selection.
2. Training and development.
3. Performance appraisal and feedback.
4. Pay and benefits.
5. Labor relations.
 HRM Components
• Recruitment: develop a pool of qualified applicants.
– Selection: determine relative qualifications & potential
for a job.
• Training & Development: ongoing process to
develop worker’s abilities and skills.
• Performance appraisal & feedback: provides
information about how to train, motivate, and
reward workers.
– Managers can evaluate and then give feedback to
enhance worker performance.
 HRM Components
uPay and Benefits: high performing employees should
be rewarded with raises, bonuses.
– Increased pay provides additional incentive.
– Benefits, such as health insurance, reward membership in
firm.
uLabor relations: managers need an effective
relationship with labor unions that represent workers.
– Unions help establish pay, and working conditions.
 Nature of HRM
• Pervasive in nature: HRM is present in all enterprises
whether they are government, non-government,
educational, religious, etc. It is not confined to the
personnel functions alone but to all the functional areas i.
e. production, marketing, finance etc.
• Action-Oriented: HRM focuses on action, rather than on
record keeping, written procedures or rules.
• People-Oriented: HRM is all about people at work, both
individuals and groups. It tries to put people on assigned
jobs in order to produce good results.
• Development-Oriented: HRM intends to develop full
potential of employees. Training is offered to sharpen
and improve their skills. Employees are rotated on
various jobs so that they gain experience and exposure.
• Integrating Mechanism: HRM tries to build and
maintain good relations between people working at
various levels in the organisation.
• Challenging Function: Managing human resources is
a challenging job due to the dynamic and complex
nature of people. People have sentiments and
emotions so that they cannot be treated as machines.
• Continuous Function: HRM is not a one shot deal. It
requires a constant alertness and awareness of
human relation and their importance in every day
operations.
 Scope of HRM
• The scope of HRM is, indeed, very vast and wide. It
includes all activities starting from manpower
planning till employee leaves the organisation.
Accordingly, the scope of HRM consists of
acquisition, development, maintenance/retention,
and control of human resources in the organisation
 Objectives of HRM
• To help the organisation to attain its goals effectively
and efficiently by providing competent and motivated
employees.
• To utilize the available human resources effectively.
• To increase employee’s job satisfaction and self-
actualisation.
• To develop and maintain the quality of work life (QWL)
• To help maintain ethical policies and behaviour
inside and outside the organisation.
• To establish and maintain cordial relations between
employees and management.
• To reconcile individual/group goals with
organisational goals.
 Importance of HRM
1.Individual Level: Effective management of human
resources help employees in the following ways:
• Promoting team work and team spirit among
employees.
• Offering excellent growth opportunities to people who
have the potential to rise.
• Allowing people to work with determination and
commitment
2. Professional Level: Providing healthy work
environment. It promotes teamwork in the employees.
This is done in following ways:
• Maintaining the dignity of the employees as a ‘human
being’
• Providing maximum opportunities for personnel
development
• Healthy relationship between workgroups
3. Social Level: Proper management by satisfying their social
needs. This is done by:
• Providing suitable employment , which brings them
psychological satisfaction.
• Paying the employees reasonable compensation in proportion
to the contribution made by him.
• Eliminating waste or improper use of human resources
4. Corporate Level: HRM is useful in helping business organisations
to attain its goals and objectives more efficiently and effectively in
the following ways:
• HRM ensures that business organisations have a team of
dedicated and competent employees
• HRM effectively utilises all the available human resources.
• HRM attracts and retains talent through effective HR planning,
recruitment, selection, placement, orientation, compensation,
and promotion.
5. National Level: HRM plays a important role in
the development of nation in following ways:
• Efficient utilisation of natural, physical, and
financial resources of nation
• HRM helps in improving the standard of living
and better employment.
 Evolution of HRM
• Industrial Revolution: During this period machines were
brought in, technology made rapid progress, jobs were more
fragmented where worker did only a small portion of the total
job, and specialisation increased speed and efficiency but left
workers with dull, boring jobs. Employers were keen to meet
production target rather than satisfy workers demands.
Government did very little to protect the interests of workers.
• Scientific Management: Scientific management theory
seeks to improve an organization's efficiency by
systematically improving the efficiency of task completion
by utilizing scientific, engineering, and mathematical
analysis. The goal is to reduce waste, increase the process
and methods of production. Employees should also be
trained carefully by supervisors to ensure that they perform
the task exactly as specified. A differential piece rate
system was also advocated to provide an incentive for
employees.
• Trade Unionism: Workers joined hands to protect
against the exploitative tendencies of employers,
unfair-labor practices, through unions. Unions tried to
improve the group of workers through collective
bargaining, resolving the grievances of workers
relating to working conditions, pay and benefits.
• Human Relation Movement: It led to the wide scale
implementation of behavioural science techniques in
industry for the first time which included supervisory
training programmes, emphasising support and
concern for workers, programmes to strengthen the
bonds between labour and management and
counselling programmes whereby employees were
encouraged to discuss both work and personal
problems with trained counsellors.
• The Behavioural Human Resource Concept: It aimed
at analysing and understanding human behaviour in
organisation. Employees began to be considered as
valuable assets of an organisation. Efforts were
made to integrate employee with the organisation so
that organisational goals and employees aspirations
could be achieved simultaneously.
• The Emerging Concept: Now employees are
considered as partners in industry. They are given
share in company’s stock membership. Slowly and
steadily, HRM is emerging as a discipline. 
 Major Functions of HRM
1. Managerial Functions: Managing people is the essence of
being a manager. Managerial functions of HRM include:
• Planning: Planning may be defined as deciding in advance what is
to be done in future. It is the process of thinking before doing. It
involves planning of human resource requirements, recruitment,
selection, training, etc.
• Organizing: The next major managerial function is to develop and
design the structure of the organization. It fundamentally includes
the following:
 Employees are grouped into positions or activities they will be
performing.
 Allocate different functions to different persons.
 Delegate authority as per the tasks and responsibilities that are
assigned.
• Directing: Directing means telling people to do a
particular work and ensure that they perform as per
the direction. Attainment of organisational goals is
possible through proper direction.
• Coordinating: Organisational objectives will be
achieved only if group activities in the enterprise are
coordinated effectively.
• Controlling: This is concerned with the apprehension
of activities as per plans, which was formulated on
the basis of goals of the company. The controlling
function ends the cycle and again prompts for
planning. Here the HR Manager makes an
examination of outcome achieved with the standards
that were set in the planning stage to see if there are
any deviations from the set standards. Hence any
deviation can be corrected on the next cycle.
 Operational Functions: It is related to specific
activities of human resource management,
which are as follows:
• Recruitment: This is the most challenging task for any HR manager. A
lot of attention and resources are required to draw, employ and hold
the prospective employees. A lot of elements go into this function of
recruitment, like developing a job description, publishing the job
posting, sourcing the prospective candidates, interviewing, salary
negotiations and making the job offer.
• Training and Development: On the job training is the responsibility of
the HR department. Fresher training may also be provided by some
companies for both new hires and existing employees. This Fresher
training is mainly done to make the employees up to date in their
respective areas as required by the company. This function makes the
employees understand the process and makes it easy for them to get
on their jobs with much ease. During the process of the training and
development, the results are monitored and measured to find out if
the employees require any new skills in addition to what he/she has.
• Professional Development: This function helps the
employees with opportunity for growth, education, and
management training. The organization undertakes to
sponsor their employees for various seminars, trade
shows, and corporate responsibilities. This, in turn,
makes the employees feel that they have been taken
care by their superiors and also the organization.
• Compensation and Benefits: A company can attain its
goals and objectives if it can adjust to new ways of
providing benefits to the employees. Some of the
benefits given by companies are listed below for our
understanding:
– Working hour flexibility
– Extended vacation
– Dental/Medical Insurance
– Maternal/Paternal Leave
– Education Reimbursement for children
• Performance Appraisal: The employees of any
organization will be evaluated by the HR department
as per the performance. This function of Human
Resource Management is to help the organization in
finding out if the employee they have hired is moving
towards the goals and objectives of the organization.
On the other hand, it also helps the company to
evaluate whether the employees needs improvement
in other areas.
• Ensuring Legal Compliance: The HR department of
every organization should be aware of all the laws
and policies that relate to employment, working
conditions, working hours, overtime, minimum wage
etc. Compliance with such laws is very much
required for the existence of an organization.
 Role of HR Manager
• HR manager is a person who is responsible for the human resource
function. HR manager has many duties or roles and responsibilities
in the corporate which are as follows:
• Administrative Roles:
1. Policy maker: HR manager helps management in the formation of
policies governing talent acquisition and retention, wage and
salary administration, welfare activities, personnel records,
working conditions, etc.
2. Administrative Expert: Maintaining employees files, and HR-related
databases, answering queries regarding leave, transport and
medical facilities etc. These activities must be performed
efficiently and effectively to meet changing requirements of
employees, customers and the government.
3. Advisor: HR manager perform his function by advising on how to
prepare reports, implementation of policies, information regarding
labour laws.
4. Housekeeper: HR manager helps in recruiting, pre-employment
testing, reference checking, employee surveys, time keeping, wage
and salary administration, wellness programmes, maintenance of
records, etc.
5. Counsellor: HR manager discusses various problems of the
employees relating to work, career, their supervisors, colleagues,
health, family, financial, social, etc., and advises them on minimising
and overcoming problems, if any.
6. Welfare Officer: HR manager as a welfare officer provides and
maintains canteens, hospitals, crèches, libraries, etc.
7.Legal Consultant: HR manager plays important role in grievance
handling, settling of disputes, handling disciplinary cases, doing
collective bargaining, contacting lawyers regarding court cases, filing
suits in labour courts etc.
• Operational Roles:
1. Recruiter: HR manager has to recruit the new employees without,
increasing the financial burden to the company.
2. Trainer and motivator: HR manager have to find skill deficiencies
from time to time, offer meaningful training opportunities, and
bring out the talent potential of people through intrinsic and
extrinsic rewards which are valued by employees.
3. Liaison Officer: HR manager is a linking pin between various
divisions of an organisation. He has to build a rapport with
divisional heads using public relations and communication skills of
HR executives.
4. Mediator: HR manager acts as mediator in case of friction
between employees, superiors, and management with the
objective of maintaining industrial harmony.
5. Employee Champion: HR managers are traditionally viewed as
‘company morale officers’ or employee advocates. HR
professionals have to move closer to the hearts of employees in
their own interest.
• Strategic Roles
1. Strategic Partner: In this role, the HR person contributes to the
development and accomplishment of the organisation-wide
business plans and objectives.
2. Change Champion: HR professionals help make change happen at
institutional., initiative(making things happen), and individual levels.
As change champion, HR professionals create organisations that
are flexible, responsive and able to make transformation happen in
ways that value.
 Principles of HRM
1. Principle of Individual Development: Every employee must be
offered full and equal opportunity to develop in order to
realise his fullest potentialities. Every organisation must strive
to train and develop the individual employee in such a way
that he drives maximum job satisfaction.
2. Principle of Scientific Selection Procedure: Systematic and
scientific procedures must be employed in selection. It is
necessary to aid the line management in finding the right men
for the right jobs after systematic study of jobs, men and
sources of recruitment.
3. Principle of Incentive: It is necessary to recognise and reward
good performance. If we want an individual to contribute his
best on his work, the principle of incentive must be utilised.
The incentive must be monetary or non-monetary which
motivates them to contribute their maximum to achieve
organisational goals.
4. Principle of Adequate Communication: Often bad communication
is the root cause of any problems and misunderstandings. As far as
possible supply all relevant information to the employees. The
company policies, programs, objectives and philosophy may be
made known to the employees.
5. Principle of Participation: This principle is based on employer-
employee relation are of mutual trust, confidence and give-and-take.
The employees are offered opportunities to come up with their ideas,
views, and suggestions to improve various operations of the
organisation. The individual employee must feel that he is needed in
the organisation and that he is giving his useful contributions to the
company.
6. Principle of Fair Compensation: The wage and salary structure
must be fair and equitable. Apart from pay, it is essential to provide
good working conditions and environment, and good tools and
equipment for the employees, and proper sanitary and health
facilities must also be provided.
7. Principle of Dignity of Labour: According to this principle any labour
that is productive is good and commendable. It is crude and harmful
to attach any stigma(Dishonour) to any type of labour holding the
man performing that job as a lowly person in society.
8. Principle of Team Spirit: Willing to collaborate among the
employees is essential. Without team spirit business success cannot
be achieved.
9. Principle of Labour and Management Cooperation: According to
this principle, atmospheres should be created in the organisation
such that labour and management consider each other unbendable.
If such an atmosphere prevails in an organisation then both the
parties would aim for the achievement of the same goal.
10. Principle of Contribution to National Prosperity: Employees must
be educated, through appropriate personnel programs, to believe in
the proposition that their contribution to the achievement of
company goals will ultimately contribute to the economic
development and prosperity of the nation as whole.
 ASSIGNMENT
• EMERGING TRENDS IN HRM
• CHALLENGES OF HRM