Unit: 1

Introduction to Human Resource Management

 Meaning, Definition and Importance of HRM

 Functions of HRM
 HR Manager proficiencies
 Strategic Human Resource Management (SHRM)
 Competitive Advantage
Business and organizations rely on three major resources:

 Human Resource: employees, workers

 Physical Resource: infrastructure, material and equipment
 Financial Resource: cash, credit and debt
Definitions and Meaning HRM
Human resource is the organizations most important asset
Employees should be treated as asset and as human capital
Employees are valuable resource of competitive advantage
 HRM is a process of bringing people and organization together to achieve individual
employees as well as organizational goal effectively and efficiently
 Management of people at work
 Management of workforce of with the right people, right skill and expertise within given time
frame
“HRM is all about planning, organizing, staffing, directing, controlling and leading human resource.
It helps in procurement, development, compensation, integration and maintenance of human
resource to accomplish individual, organizational and social objectives.”
Importance of HRM
HRM helps:
Assist organization:
 To develop and maintain HR plans and policies of the organization
 To recruit, select and train right person for different job positions
 To identify, develop and utilize the right number and skilled employees to fulfil organizational
goals
Create an enabling environment
 In which employees are inspired to learn and deploy their skills and competencies
 Develop and motivate employees to accomplish personal as well as organizational goals
Improve performance
 Individual, team and organizational performance and productivity
 Through effective job design, adequate induction and socialization, training and development,
providing feedback and performance counselling
 Create a flexible organizational system
 System which is responsive, adaptive and helps organization to meet its goal and objective in
highly competitive business environment
Maintenance of cordial relationship
 Between management and employees
 Among different departments
 Among different teams and within the team
Devise programs
 Meeting economic, social and psychological needs of the employees
 Help organization to attract and retain productive employees
Compliance of law
 Ensure that the organization as well as employees are following the law, rules and regulation
at workplace
Performance appraisal management
 Analysis and appraisal of employees performance
 To provide attractive & equitable incentive, rewards, benefits, job security to retain
competent employees
 To maintain high morale, encourage value system and create environment of trust, mutuality
of interest
Motivate employees
 Create opportunities and provide facilities to individuals and groups to secure organizational
goal and enhance effectiveness
 Unbiased policy, no threat of unemployment and inequalities
 Merit, contribution, punctuality, dedication towards work for stability of employment must
be recognized and appreciated by management time to time
 Performance appraisal management
 Analysis and appraisal of employees performance
 To provide attractive & equitable incentive, rewards, benefits, job security to retain
competent employees
 To maintain high morale, encourage value system and create environment of trust, mutuality
of interest
 Managerial Functions of HRM
 Planning
 Organizing
 Staffing
 Directing
 Controlling
Planning
▪ Important to give the goal to employees as well as organization
▪ To get things done by employees
▪ To establish the best procedures to reach the goals
▪ Anticipating
 hiring needs of the organization,
 job requirements & job descriptions
 determining the sources of recruitment

 Identify and analyze current plus future needs of human resources

 A systematic process to make sure the best fit between employees and jobs
 Ensure the best use of an organization's most valuable asset (human resources)
 To determine the personnel programs that can contribute to achieving the organization’s
goals
Organizing
 Organizing is all about design and develop the organization’s structure at different level
 Grouping of personnel activity into functions or positions
 Assigning different groups of activities to different individuals
 Delegating authority according to the tasks assigned and responsibilities involved
 Coordinating activities of different employees
Staffing
 Process of hiring eligible candidates in the organization for specific positions
  Recruitment and selection of employees by evaluating their skills, knowledge and offering
them specific job roles accordingly
 Filling the position with the appropriate human resource in the organizational structure
Directing
 Guiding and motivating people to accomplish the personnel programs
 Encouraging people to work willingly and efficiently to achieve individual as well as
organizational goals
 Identify the needs of the employees and the means & methods to satisfy them
 Motivate the employees through
 career planning,
 boosting the employee’s morale,
 developing relationships,
 providing safety requirements
 looking after the welfare of employees
Controlling
 Post planning, organizing and directing, performance of an employee is checked,
verified and compared with goals
 Regulate the workforce, observe employees effort, attitude and behavior
 Helps to observe and subsequently compares the results with the set standards
 Assist to correct deviations that might occur
 Execute control measures: If actual performance is found deviated from the plan,
control measures are taken
 Helps to evaluate and control the performance of the department
 Controlling is all about regulating activities according to the plan towards
achievement of the organizational objectives
Operative Functions of HRM
 Procurement
 Development
 Compensation
 Maintenance
 Motivation
 Integration
Procurement
 Process to streamline the recruitment & selection and select right candidates
 Acquiring and employing people who possess necessary skill, knowledge and aptitude
 Hire prospective candidates who can help organization to achieve their goals
 Important task: Job analysis, manpower planning, recruitment, selection, placement,
induction and internal mobility
Development
▪ Progress
▪ Advancement
▪ Improvement
▪ A kind of positive change
 “A process of improving, moulding, changing and developing skills, knowledge, creative ability,
aptitude, attitude, value and commitment based on present and future requirements both at
the individual and organization’s level”
Why development required?
To cope up with the changing world, to upgrade employees, to compete and sustain in market
Development function includes:
Professional and personal development programs e.g.
▪ Training
▪ Executive development
▪ Career planning development
▪ Human resource development
Compensation
▪ Results or rewards that the employees receive in return for their work
▪ Work in exchange of tangible (monetary benefits/payment/bonus/incentives) and intangible
benefits (recognition, award, responsibilities, promotion, opportunities etc.)
▪ Focuses on the determination of adequate and equitable remuneration for the employees

Maintenance
 Personnel Record Keeping: maintenance of employees master data and update the
data time to time (contact information, cost involved, PF, pension, details regarding
job responsibilities, working hours)
 Protecting and promoting the physical and mental health of employees
 Good working condition and infrastructure
 Healthy and cooperative working environment
 Social security measures, health, safety and employee welfare facilities e.g. housing,
medical facilities, educational facilities, maternity benefits, transport facilities,
pension, PF etc.
Motivation
 Motivation is an act of stimulating someone to get a desired course of action
 Motivation is a continuous process (as employees have new needs and expectations when the
old ones are satisfied)
  Motivated workforce makes a crucial difference when it comes to meet any business objective
 Processes that account for an individual’s
 intensity (how hard a person tries);
 direction (where effort is channelled);
 persistence (how long effort is maintained) towards attaining a goal

Integration
 Integrate the goals of an organization with employees aspirations through employee-
oriented programmes

 Helps to maintain dynamic interaction between employee and management

 Purpose: employees get absorbed in the organization physically, emotionally and mentally

Integration deals with

 Grievance redressal
 Maintaining discipline
 Building team work
 Collective bargaining (labour contract between management and union)
 Employee participation and empowerment
 Trade union and employees association
 Industrial relations