ASSIGNMENT 1

UNIT-1
Q1. What is Human Resource Management? What are the objectives and functions of
HRM?
Human Resource Management (HRM or HR) is the strategic approach to the effective management of
people in a company or organization such that they help their business gain a competitive advantage.
Human resource management is primarily concerned with the management of people within organizations,
focusing on policies and systems. HR departments are responsible for overseeing employee-
benefits design, employee recruitment, training and development, performance appraisal, and reward
management, such as managing pay and benefit systems.
The overall purpose of human resources (HR) is to ensure that the organization is able to achieve success
through people. HR professionals manage the human capital of an organization and focus on implementing
policies and processes. They can specialize in finding, recruiting, training, and developing employees, as
well as maintaining employee relations or benefits. Training and development professionals ensure that
employees are trained and have continuous development. This is done through training programs,
performance evaluations, and reward programs. 
Human resource management is therefore focused on a number of major areas, including:

 Recruiting and staffing

 Compensation and benefits
 Training and learning
 Labor and employee relations
 Organization development

OBJECTIVES

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.

FUNCTIONS
There are 3 functions in HRM:
(1) Managerial Functions:
Planning:
Planning is a predetermined course of actions. It is a process of determining the organisational goals and
formulation of policies and programmes for achieving them. Thus planning is future oriented concerned
with clearly charting out the desired direction of business activities in future. Forecasting is one of the
important elements in the planning process. Other functions of managers depend on planning function.

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

Staffing:
TOs is a process by which managers select, train, promote and retire their subordinates This involves
deciding what type of people should be hired, recruiting prospective employees, selecting employees,
setting performance standard, compensating employees, evaluating performance, counseling employees,
training and developing employees.

Directing/Leading:
Directing is the process of activating group efforts to achieve the desired goals. It includes activities like
getting subordinates to get the job done, maintaining morale motivating subordinates etc. for achieving the
goals of the organisation.

(2) Operative Functions:

The operative, also called, service functions are those which are relevant to specific department. These
functions vary from department to department depending on the nature of the department Viewed from this
standpoint, the operative functions of HRM relate to ensuring right people for right jobs at right times.
These functions include procurement, development, compensation, and maintenance functions of HRM.

(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

Q2. What is the importance of HRM and what are the challenges to HRM?
Ans. IMPORTANCE OF HRM
(a) Social Significance :Proper management of personnel, enhances their dignity by satisfying their
social needs. This it does by (i) maintaining a balance between the jobs available and the job
seekers according to the qualification and needs, (ii) Providing suitable and mist productive
employment, which might bring them psychological satisfaction; (iii) making maximum utilization
of the resource in an effective manner and paying the employee a reasonable compensation in
proportion to the contribution made by him.

(b) Professional Significance: By providing healthy working environment, it promotes team work
among the employees. This is done by (i) maintaining the dignity of the employees as a ―human
being‖; (ii) providing maximum opportunities for personal development; (iii) providing healthy
relationship between different work groups so that work is effectively performed.

(c) Significance for Individual Enterprise: It can help the organization in accomplishing its goals
by : (i) creating right attitude among the employees through effective motivation; (ii) utilizing
effectively the available resources and (iii) securing willing co-operation of the employees for
achieving goals of the enterprise and fulfilling their own social and other psychological needs of
recognition, love, affection, belongingness, esteem and self actualization. HRM is more relevant in
today‘s context.
CHALLENGES FACES BY HRM:
1. Change Management
change management represents a particular challenge for personnel management.
It is now an accepted fact that any organization can survive in today‘s socio-economic environment only if
it is proactive to environment changes. Advances in information technology too are focusing organizations
to change their very way of thinking.

2. Leadership Development
As the second of the biggest challenges for human resource management, leadership development needs to
be a critical strategic initiative. HR professionals are faced with being expected to provide the essential
structures, processes, tools, and points of view to make the best selection and develop the future leaders of
the organization. 

3. HR Effectiveness Measurement
How can improvement happen without the right tools to measure HR effectiveness? As with many other
areas of business, this profession also needs to be able to measure results in terms of transaction
management, as well as in terms of the positive influence on business. “Utilizing metrics to determine
effectiveness is the beginning of a shift from perceiving HR’s role as purely an administrative function to
viewing the HR team as a true.

Q3.Define Evolution of HRM in detail.

ans. Human Resource Management

Human Resource Management in its simplest definition means management of organization’s manpower
or workforce or human resources.

Evolution of HRM
The evolution of the concept of Human Resource Management is presented below:

Period before industrial revolution – The society was primarily an agriculture economy with limited
production. Number of specialized crafts was limited and was usually carried out within a village or
community with apprentices assisting the master craftsmen. Communication channel were limited.

Period of industrial revolution (1750 to 1850) – Industrial revolution marked the conversion of economy
from agriculture based to industry based. Modernization and increased means if communication gave way
to industrial setup. A department  was set up to look into workers wages, welfare and other related issues.
This led to emergence of personnel management with the major task as

–          Worker’s wages and salaries

–          Worker’s record maintenance

 –          Worker’s  housing facilities and health care

An important event in industrial revolution was growth of Labour Union (1790)  – The works working in
the industries or factories were subjected to long working hours and very less wages. With growing unrest ,
workers across  the world started protest and this led to the establishment of Labour unions. To deal with
labour issues at one end and management at the other Personnel Management department had to be 
capable of politics and diplomacy , thus the industrial relation department emerged.

Post  Industrial revolution – The term Human resource Management saw a major evolution after 1850.
Various studies were released and many experiments were conducted during this period which gave HRM
altogether a new meaning and importance.

A brief overview of major theories release during this period is presented below

 Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the evolution of
scientific human resource management approach which was involved in
–          Worker’s training

–          Maintaining wage uniformity

–          Focus on attaining better productivity.

 Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). –
Observations and findings of Hawthrone experiment shifted the focus of Human resource from increasing
worker’s productivity to increasing worker’s efficiency through greater work satisfaction.
 Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of needs
( 1954) – These studies and observations led to the transition from the administrative and
passive Personnel Management approach to a more dynamic Human Resource Management
approach which considered workers as a valuable resource.
As a result of these principles and studies , Human resource management became increasingly line
management function , linked to core business operations. Some of the major activities of HR department
are listed as-

1. Recruitment and selection of skilled workforce.

2. Motivation and employee benefits
3. Training and development of workforce
4. Performance related salaries and appraisals.
Strategic Human Resource Management Approach

With increase in technology and knowledge base industries and as a result of global competition , Human
Resource Management is assuming more critical role today . Its major accomplishment is aligning
individual goals and objectives with corporate goals and objectives. Strategic HRM focuses on actions that
differentiate the organization from its competitors and aims to make long term impact on the success of
organization.
Q4. How Personnel Management is different from HRM? Trace the evolution of HRM.

Ans. Personnel Management

Personnel Management is a part of management that deals with the recruitment, hiring, staffing,
development, and compensation of the workforce and their relation with the organization to achieve the
organizational objectives. The primary functions of the personnel management are divided into two
categories:

 Operative Functions: The activities that are concerned with procurement, development,
compensation, job evaluation, employee welfare, utilization, maintenance and collective
bargaining.
 Managerial Function: Planning, Organizing, Directing, Motivation, Control, and Coordination are
the basic managerial activities performed by Personnel Management.

From the last two decades, as the development of technology has taken place and the humans are replaced
by machines. Similarly, this branch of management has also been superseded by Human Resource
Management.

Human Resource Management

Human Resource Management is that specialized and organized branch of management which is
concerned with the acquisition, maintenance, development, utilization and coordination of people at work,
in such a manner that they will give their best to the enterprise. It refers to a systematic function of
planning for the human resource needs and demands, selection, training, compensation, and performance
appraisal, to meet those requirements.
Functions of HRM
Human Resource Management is a continuous process of ensuring the availability of eligible and willing
workforce i.e. putting the right man at the right job. In a nutshell, it is an art of utilizing the human
resources of an organization, in the most efficient and effective way. HRM covers a broad spectrum of
activities which includes:

 Employment
 Recruitment and Selection
 Training and Development
 Employee Services
 Salary and Wages
 Industrial Relations
 Health and safety
 Education
 Working conditions
 Appraisal and Assessment

 Differences Between Personnel Management and Human Resource Management

1. The part of management that deals with the workforce within the enterprise is known as Personnel
Management. The branch of management, which focuses on the best possible use of the
enterprise’s manpower is known as Human Resource Management.
2. Personnel Management treats workers as tools or machines whereas Human Resource Management
treats it as an important asset of the organization.
3. Human Resource Management is the advanced version of Personnel Management.
4. Decision Making is slow in Personnel Management, but the same is comparatively fast in Human
Resource Management.
5. In Personnel Management there is a piecemeal distribution of initiatives. However, integrated
distribution of initiatives is there in Human Resource Management.
6. In Personnel Management, the basis of job design is the division of work while, in the case of
Human Resource Management, employees are divided into groups or teams for performing any
task.
7. In PM, the negotiations are based on collective bargaining with the union leader. Conversely, in
HRM, there is no need for collective bargaining as individual contracts exist with each employee.
8. In PM, the pay is based on job evaluation. Unlike HRM, where the basis of pay is performance
evaluation.
9. Personnel management primarily focuses on ordinary activities, such as employee hiring,
remunerating, training, and harmony. On the contrary, human resource management focuses on
treating employees as valued assets, which are to be valued, used and preserved.

Q5.What is Strategic Management? What is the role of HRM in strategic management?

STRATEGIC MANAGEMENT
Strategic management is the management of an organization’s resources to achieve its goals and
objectives. Strategic management involves setting objectives, analyzing the competitive environment,
analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the
strategies across the organization.
The strategic management process helps organizations take stock of their present situation, chalk out
strategies, deploy them and analyze the effectiveness of the implemented management strategies.
 Strategic management concepts
Strategic management is based around an organization's clear understanding of its mission; its vision for
where it wants to be in the future; and the values that will guide its actions. The process requires a
commitment to strategic planning, a subset of business management that involves an organization's ability
to set both short- and long-term goals. Strategic planning also includes the planning of strategic decisions,
activities and resource allocation needed to achieve those goals.

Importance of Strategic Management

 It guides the company to move in a specific direction. It defines organization’s goals and fixes
realistic objectives, which are in alignment with the company’s vision.
 It assists the firm in becoming proactive, rather than reactive, to make it analyse the actions of the
competitors and take necessary steps to compete in the market, instead of becoming spectators.
 It acts as a foundation for all key decisions of the firm.
 It attempts to prepare the organization for future challenges and play the role of pioneer in
exploring opportunities and also helps in identifying ways to reach those opportunities.
 It ensures the long-term survival of the firm while coping with competition and surviving the
dynamic environment.
 It assists in the development of core competencies and competitive advantage, that helps in the
business survival and growth.
The role of HRM in strategic management
ollowing strategic choices can be considered which would help today’s organizations to survive and grow.
Change Management: Manage change properly and become an effective change agent rather than being a
victim of change itself.
Values: Adopt proactive HRD measures, which encourage values of openness, trust, autonomy, proactivity
and experimentation.
Maximize productivity and efficiency: Through qualitative growth of people with capabilities and
potentialities to grow and develop thrive to maximize productivity and efficiency of the organization.
Activities directed to competence building: HRD activities need to be geared up and directed at
improving personal competence and productive potentialities of manpower resources.