Professional Documents
Culture Documents
Unit –I
Introduction to Human Resource Management
1.1 - Meaning
1.2 - objectives
1.3 - Functions
1.4 - Importance of HRM
1.5 - Recent trends in HRM
1.1 – Meaning –
Human resource management is divided into two parts –
1. Human Resource and
2. Human Resource Management
Human Resource - Human Resource means is a person (human) or employee that
works for an Organisation.
Human Resource Management – Human resource management (HRM) is the
process of employing people, training them, compensating them, developing policies
relating to them, and developing strategies to retain them.
Meaning of Human Resource Management -
Human resource management (HRM or HR) is the management of human resources. Human
resource management (HRM) it is independent or distinct and more important branch of
industrial management. This branch of knowledge relates to everyone from the chief manager
of the workforce working in the Organization at the enterprise level to the simple worker. As
a field, HRM has undergone many changes over the last twenty years, giving it an even more
important role in today’s organizations.
Definitions of Human Resource Management -
1. Edvin Flippo –
“It is the 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.”
2. According to the Invancevich and Glueck –
“HRM is concerned with the most effective use of people to achieve organizational and
individual goals. It is the way of managing people at work, so that they give their best to
the organization”.
3. According to C.H. North Cott. –
“Labour resource management is an extension of general management that of prompting
and stimulating every employee to make his fullest contribution to the purpose of the
business”.
Nature of Human Resource Management –
1. Pervasive Function
2. Result oriented
3. Tactful approach
4. People Centric
5. Integrative action
6. Continuous process
1. Pervasive Function –
HRM is practiced at all levels of Management and applies to all kinds of organizations, even
to non – profit organizations.
2. Result oriented –
It aims at achieving Organizational objectives through the optimum utilisation of human
resources.
3. Tactful approach –
HRM deals with the people who are distinct from one another; thus the manager needs to
apply diverse strategies and tactics at different point of time and in different situations.
4. People - Centric –
Human resource management is concerned majorly with the employees Working in an
Organisation.
5. Integrative Action –
It focuses on maintaining cordial relations among the employees with different levels and
also addresses employee grievances.
6. Continuous process –
HRM is on-going process of procurement, development and redirection of personnel towards
the organisational goals. It cannot be completed in a day, week or a month.
1.2 Objectives of human resource management -
1. 1.To ensure the effective utilisation of resources
2. To maintain organisational structure
3. To develop human resources
4. To respect for human beings
5. To maintain goal harmony
6. To ensure employee satisfaction
7. To ensure your employee discipline and moral
8. To increase organisational productivity
Human Resource Management (HRM) is a systematic approach that works to fill the gap
between an organization and its employees. Functions of HRM have been developed by the
Minister of Human Resource Development to simplify the task of managing the human
capital of the organization. These works are broadly classified into two categories:
1. Managerial Functions
2. Operative Functions
1. Managerial Functions:-
Planning is the first and basic function of management and everything depends on the plan;
before thinking of anything else, management needs to be aware of the vacancies or
workforce needs of the organization. After that, they are very much required to formulate a
strategy to meet future requirements. It is predetermined course of action. Planning pertains
to formulating strategies of personnel programmes and changes in advance that will
contribute to the organizational goals. It involves planning of human resources, requirement,
selection, training, etc.
b. Organizing –
The purpose of human resources is to bring together the available human resources and
physical resources with the organization; the manager sets a framework for operative tasks.
Along with organizing everything related to HR and the organization, Human resource
managers should be well aware that organizing is a process of creating and organizing
everything in a proper way to avoid any confusion and conflict. Thus, an organization
establishes relationship among the employees so that they can collectively contribute to the
attainment of company goals.
c. Directing –
Directing is a knowledge, discipline, and formal way of communicating to others what you
expect from them or an organization. The willing and effective co-operation of employees for
the attainment of organizational goals is possible through proper direction. Unless a human
resource manager has the ability to direct, a human resource manager cannot be said to be
full-fledged. When the HR manager has the right guidance capabilities, the manager instructs
the team to act accordingly and provides appropriate guidance to meet the organizational
objective.
d. Controlling
After, planning, organizing and directing various activities of personnel management, the
performance is to be verified in order to know that the personnel functions are performed in
conformity with the plans and directions of an organization. Controlling also involves
checking, verifying and comparing of the actuals with the plans, identification of deviations if
any correcting of identified deviations. Human resource managers must have full knowledge
of handling all matters related to human resources, as they must be fully capable of thinking
and deciding what should be done and what should not be done They also need to know how
employees should be treated and how not. Simultaneously he sets the standard for
management performance and subsequently analyses the results based on such criteria
through performance evaluation and job analysis.
2. Operative Functions:-
Operative functions are those that are performed at the departmental level or middle level and
are primarily concerned about the execution of plans and strategies created at the managerial
level. The operative functions of human resource management are related to specific
activities of personnel management e.g. employment, development, compensation and
relation. All these functions are interacted with managerial functions. Below we have
mentioned about various types of operative functions:
a. Procurement -
Job analysis- it is the process of study and collection of information relating to the
operations and responsibilities of a specific job. It includes collection of data, information,
facts and ideas, providing the guides, plans and basis for job design and for all operative
functions of Human Resource Management.
Human resource planning- it is a process for determination and assuring that the
organization will have an adequate number of qualified persons, available at proper times,
performing jobs which would meet the needs of the organization and which would provide
satisfaction for the individuals involved. It involves calculation of net human resources
requirements based on present inventory of human resources, estimation of present and future
requirements and supply of human resources based on objectives and long range plans of an
organization.
Recruitment- it is the process of searching for prospective employees and simulative them to
apply for jobs in an organization. It deals with identification of existing sources of applicants
and developing them, creation or identification of new sources of applicants, striking a
balance between internal and external sources etc.
Selection- Selection means it is the process of asserting the qualifications, experiences, skills,
knowledge etc., of an applicant with a view to appraising his or her suitability of a job. This
function include formulating interviewing techniques , checking of references, framing and
developing application blanks, creating a developing valid and reliable testing techniques,
line managers decisions, sending letters of appointment and rejections, employing the
selected candidates who report for duty.
Placement- It is the process of assigning the selected candidate with the most suitable job in
terms of job requirements. It is matching of employee specifications with job requirements.
These functions include counseling the functional manager regarding placement, conducting
follow-up study, correcting miss placements, if any.
It is the process of improving, moulding and changing the skills, knowledge, creative ability,
aptitude, attitude, values commitment, etc., based on present and future job and
organizational requirements. This function includes performance appraisal, Training,
Management Development, Career Planning and Development, Internal mobility, etc. The
role of HR is to ensure that new employees acquire company-specific knowledge and skills
so that they can perform their tasks efficiently. This increases the overall efficiency and
productivity of the workforce, resulting in better business as well as greater profitability for
the company.
Training - it is the process of imparting to the employees technical and operating skills and
knowledge it includes identification of training needs of the individuals and the company
developing suitable training programs helping and advising the management in the conduct of
training programs evaluating the effectiveness of training programs.
Career Planning and development - it is the planning of one's career and implementation of
career plans by means of education and Training jobs search and activation of work
experience is it includes internal and external mobility
Transfer - it is the process of placing employees in the same level jobs where they can be
utilized more effectively in consistency with their potential it is and needs of the employees
and the organization it also deals with developing transfer policies and procedures guiding
employees and line management on transfers evaluating the execution of transfer policies and
procedures
Retention- employers prefer to retain more talented employees while their retrench less
talented employees modify existing human resource strategy and craft new strategies in order
to pay more salaries provide more benefits and create high quality of work life to retain the
best employees and management specialist to the less talented employees and planted a
trench the misfits as well as unwanted employees depending upon the negative business
trends
c. Compensation -
It is the process of providing adequate, equitable and fair remuneration to the employees. It
includes job evaluation, wage and salary administration, incentives, bonus fringe benefits,
social security measures etc.
Job Evaluation – It is the process of determining relative worth of jobs. It involves select
suitable job evaluation techniques, classify jobs into various categories, determining relative
value of jobs in various categories, etc.
Wage and Salary Administration – This is process of developing and operating a suitable
wage and salary programme. It covers, conducting wage and salary survey, determining wage
and salary rates based on various factors, evaluating its effectiveness, etc.
Bonus – It includes payment of statutory bonus according to the payment of Bonus Act, 1965
and its latest amendments.
Fringe Benefits – These are the various benefits at the fringe of the wage. Management
provides these benefits to motivate the employees and to meet their life’s contingencies.
These benefits includes- Disablement benefit, Housing facilities, Canteen facilities, Credit
facilities, Medical, maternity and welfare facilities, etc.
Practicing various human resources policies and programmes like employment, development
and compensation and interaction among employees create a sense of relationship between
the individual worker and management, among workers and trade unions and the
management. It is process of interaction among human beings. Human relations is an area of
management in integrating people into work situations in a way that motivates them to work
together productively, co=operatively and with economic, psychological and social
satisfaction. It includes – Motivating the employees, Boosting employee morale, Developing
the communication skills, Developing the leadership skills, Improving quality of work life of
employee through participation and other means, Counselling the employees in solving their
personal, family and work problems and releasing their stress, strain and tensions, etc.
e. Industrial Relations -
The term ‘Industrial relations’ refers to the study of relations among employees, employers,
government and trade unions. Industrial relations include- Indian labour market, Trade
unionism, Collective bargaining, Industrial Conflicts, workers participation in management
and Quality circles, etc.
Human resources management has been advancing at a fast rate. The recent trends in HRM
include - Quality of work life, Total quality in human resources, HR accounting, audit and
research and Recent techniques of HRM, etc.
9. To resolve conflicts –
In any company, either big or small, conflicts may arise between any parties/group. Conflicts
are inevitable and they should not be ignored. Human resource management acts as a
consultant to sort out such conflicts timely and conduct other organizational activities
smoothly.
1. Personnel Records :
Personnel Records are records pertaining to employees of an organization. These records are
accumulated, factual and comprehensive information related to concern records and detained.
All information with effect to human resources in the organization is kept in a systematic
order. Such records are helpful to a manager in various decisions -making areas. Personnel
records are maintained for formulating and reviewing personnel policies and procedures.
Complete details about all employees are maintained in personnel records, such as,
name, date of birth, marital status, academic qualifications, professional qualifications,
previous employment details, etc.
According to Michael J. Jucius, - “HR research is the task of searching for and
analysing of facts to the end that HR problems may be solved or principle and laws
governing their solution derived”.
According to Dale Yoder, “HR research is a shortcut to knowledge and understanding
which can replace the slower, more precarious road of trial and error in experience. It
implies searching investigations, re-examinations, reassessments and revaluation. It is
a purposive and systematic investigation designed to test carefully considered
hypotheses or thoroughly framed questions”.
Research is not the sole responsibility of any one particular group or department in an
organization. The initial responsibility is that of the personnel department which, however,
should be assisted by line supervisors and executives at all levels of management. The
assistance that can be rendered by trade unions and other organizations – for example,
educational institutions, private research groups and governmental agencies – should not be
ignored but should be properly made use of.
Human resource research areas are often identified in terms of high or low appearance –
selection, opinion measurement, training and development, appraisal, motivation,
organisational effectiveness, managerial obsolescence, counselling and retirement.
Managerial selection and development and general employee motivation have generally been
identified as the two main human resources areas which are in the greatest need of additional
research.
Definition:
1. The American Association of Accountants (AAA) defines HRA as follows: ‘HRA is a
process of identifying and measuring data about human resources and communicating this
information to interested parties’.
Methods of Valuation of Human Resources:
There are certain methods advocated for valuation of human resources. These methods
include historical method, replacement cost method, present value method, opportunity cost
method and standard cost method. All methods have certain benefits as well as limitations.
Each employee is connected to each other through internal network, hence time bound
accomplishment of task is expected from superiors. They accumulate data and pass it on to
their seniors. This chain of information carries on up to the CEO level. The time bound
expectation of job accomplishment, the data and figures at the end of the week, month,
quarter, half yearly and yearly basis be communicated to superior. The entire process from
manufacturing to retail or consumer is done to fight competition, hence the entire chain from
the raw material stage to finish product is on very low inventory.
Besides professional issues, there are pressures of meeting family expectations, education of
children, late working hours and compatibility among spouse. Organizations have realized
that employees go under stress and their HR department evolved few activities like having a
Gym-room for doing quick workouts, healthy meals during working hours, approving
holidays and finance pleasure trips to unwind themselves and also health checkups.
Employees have been provided gadgets, and they can access any information in seconds and
communicate in faster speed. The soft-wares work in very high speed and with a high level of
accuracy.
Counseling -
Emotions are part of the nature of human beings and emotional upsets are part of their life. It
is sometimes more disastrous to suppress emotions. The emotional problems affect the
interest of the employees him - self and the organization in which he is working for. The
problems may reduce their productivity, morale and increase absenteeism. Hence the
managers should take steps to maintain a reasonable emotional balance of their employees
and channelize their emotions on the constructive lines. The instrument with which the
managers can achieve such balance is called counseling.
Counseling is a method of understanding and helping people who have technical, personal
and emotional or adjustment problems that usually has emotional contents that an employee
with the objective of reducing it so that performance is maintained at adequate level or even
improved upon.
HR managers are responsible for the hiring, training, termination, and legal compliance of
company employees. Global HR managers are responsible for the same important tasks, but
on an international scale. Anytime a company expands internationally, they are faced with a
numbers of challenges. A strong global human resources team is a vital component of
international expansion. Whether a company is looking to hire domestically or
internationally, the goal is always to find the most qualified candidate to fill the position.
Understanding the job description and the desired skill set is essential to finding the right
candidate for the job. Training is required for all employees to fully understand their job
functions and company policies and procedures. While it is always important to maintain
consistency with onboarding new employees, it is especially important when operating on a
global scale. To ensure the same message is delivered to all employees, global HR managers
should use the same onboarding process at every company location. Legal compliance is a
huge responsibility for human resources, both domestically and internationally. To avoid
legal trouble, it is critical that HR understands, abides by, and helps the company to enforce
all legal requirements. Global HR managers are also responsible for ensuring employees who
are working internationally have all the resources they need to successfully transition into a
new country and culture. Since global HR managers understand cultural and legal
differences, they are well equipped to help relocated employees settle into their new role.
Global HR Managers are also able to maintain control of company operations. If every
location’s HR department acted independently, consistency and control would be a challenge
to maintain. By having Global HR Managers to oversee the company in its entirety, the
company is better able to maintain control of their international locations and overall
company brand, policies, and procedures.
Finding it difficult to hire, managers often forget about one of the most effective tactic HR
specialists sometimes use – moving current workers to available job opportunities across the
company. Of course, any given person must possess the particular skills that are relevant to
carry out the role’s responsibilities. A second and no less effective tactic is to use alternative
human capital, such as contractors, freelancers and outsourcing partners. This approach to
talent acquisition works best for companies facing rapidly changing business conditions. For
example, if you need to urgently reinvent one of your technology systems like ERP and don’t
have skilled in-house specialists. In that case, you can outsource your new technology project
to a dedicated development team. In accordance with global trends in the alternative
workforce, modern enterprises have an amazing opportunity to cooperate with vendors,
contractors, outsourcers and freelancers who are located overseas. Besides, this kind of
potential labor capital is typically cheaper and, thanks to up-to-date technologies, easily
accessible.
9. Using Technology to Recruit
With strong screening and sourcing technologies in place, HR managers can recruit and hire
first-class specialists in a timely manner. Unfortunately, not everyone has such capabilities at
their disposal. Having optimized technology at your fingertips allows recruiters and HR to
find, source and select candidates more efficiently. They are able to focus on data-driven
decisions – strongly considered the best approach to hiring procedures.
A vivid example of how new technology influences HR processes is the use of modern tools
powered by artificial intelligence. For example, modern organizations are now using
Chabot’s to optimize their application processes. Among other human resources best
practices, there is the rise in video interviewing, which allows HR teams to screen and select
the candidates who best match any position’s roles and responsibilities.
Machine-learning tools can also work wonders in your recruiting processes, helping you to
create a complete image of potential candidates. These tools provide huge benefits to modern
businesses by automating hiring process, which reduces time for screening candidates and
increases time for high-value activities.
New approaches to talent acquisition encourage human capital specialists to not only find
new ways of accessing Talent, but also widen their perspective on the Talent view.
Rethinking the Talent acquisition mindset is vitally important for improving HR processes.
Companies need to reimagine what their potential employees may look like, where they
might find them and how to best use modern technologies at their full power. For example,
you might be used to offering full-time positions only, yet there’s a trend toward hiring
alternative capabilities like remote employees and freelancers. If you want to keep pace with
the times, you should keep these tendencies in mind.
With all these new trends in mind, let’s take a look at how the implementation of new
technology can optimize and improve your HR operations. We’ve already mentioned that AI
is having a huge impact on the human resources sphere. It’s also able to quickly connect
quality data with computation services to create valuable insights. Let’s check out some of
the key benefits that artificial intelligence provides.