Definition

Human resource management (HRM) is the practice of recruiting, hiring, deploying and
managing an organization's employees. HRM is often referred to simply as human resources
(HR). A company or organization's HR department is usually responsible for creating, putting
into effect and overseeing policies governing workers and the relationship of the organization
with its employees. The term human resources was first used in the early 1900s, and then more
widely in the 1960s, to describe the people who work for the organization, in aggregate.

HRM is employee management with an emphasis on those employees as assets of the business.
In this context, employees are sometimes referred to as human capital. As with other business
assets, the goal is to make effective use of employees, reducing risk and maximizing return on
investment (ROI).

Scope of Human Resource Management

The scope of Human Resource Management refers to all the activities that come under the
banner of Human Resource Management. These activities are as follows.

Human resources planning :-

Human resource planning or Human Resource Planning refers to a process by which the
company to identify the number of jobs vacant, whether the company has excess staff or shortage
of staff and to deal with this excess or shortage.

Job analysis design :-

Another important area of Human Resource Management is job analysis. Job analysis gives a
detailed explanation about each and every job in the company.

Recruitment and selection :-

Based on information collected from job analysis the company prepares advertisements and
publishes them in the newspapers. This is recruitment. A number of applications are received
after the advertisement is published, interviews are conducted and the right employee is selected
thus recruitment and selection are yet another important area of Human Resource Management.

Orientation and induction :-

Once the employees have been selected an induction or orientation program is conducted. This is
another important area of Human Resource Management. The employees are informed about the
background of the company, explain about the organizational culture and values and work ethics
and introduce to the other employees.

Training and development :-

Every employee goes under training program which helps him to put up a better performance on
the job. Training program is also conducted for existing staff that have a lot of experience. This
is called refresher training. Training and development is one area where the company spends a
huge amount.

Performance appraisal :-

Once the employee has put in around 1 year of service, performance appraisal is conducted that
is the Human Resource department checks the performance of the employee. Based on these
appraisal future promotions, incentives, increments in salary are decided.

Compensation planning and remuneration :-

There are various rules regarding compensation and other benefits. It is the job of the Human
Resource department to look into remuneration and compensation planning.
Motivation, welfare, health and safety :-

Motivation becomes important to sustain the number of employees in the company. It is the job
of the Human Resource department to look into the different methods of motivation. Apart from
this certain health and safety regulations have to be followed for the benefits of the employees.
This is also handled by the HR department.

Industrial relations :-

Another important area of Human Resource Management is maintaining co-ordinal relations

with the union members. This will help the organization to prevent strikes lockouts and ensure
smooth working in the company.
The Human Resource Officer

The Human Resource Officer is responsible for providing support in the various human resource
functions, which include recruitment, staffing, training and development, performance
monitoring and employee counseling.

(The way that the position contributes to and impacts on the organization) The Human Resource
Officer provides advice and assistance to supervisors and staff. This may include information on
training needs and opportunities, job descriptions, performance reviews and personnel policies.
The position coordinates the staff recruitment process .The Human Resource Officer provides
advice and support to supervisors and staff selection committees and ensures that they have
accurate and timely information in order to make effective decisions.

Failure to provide adequate advice or assistance may result in lost opportunities for staff
development, poor staff morale, financial loss to staffs for residents and a loss of credibility.
Significance of Human Resource Management
"I emphasize this - no matter how good or successful you are or how clever or crafty, your
business and its future are in the hands of the people you hire".

--- Akio Morita (Late) (Businessman and co-founder of Sony Corporation. Japan )

Ref: The Book : MADE IN JAPAN. Page.No.145

Human Resource Management becomes significant for business organization due to the
following reasons.

Objective :- Human Resource Management helps a company to achieve its objective from time
to time by creating a positive attitude among workers. Reducing wastage and making maximum
use of resources etc.

Facilitates professional growth :- Due to proper Human Resource policies employees are
trained well and this makes them ready for future promotions. Their talent can be utilized not
only in the company in which they are currently working but also in other companies which the
employees may join in the future.

Better relations between union and management :- Healthy Human Resource Management
practices can help the organization to maintain co-ordinal relationship with the unions. Union
members start realizing that the company is also interested in the workers and will not go against
them therefore chances of going on strike are greatly reduced.

Helps an individual to work in a team/group :- Effective Human Resource practices teach

individuals team work and adjustment. The individuals are now very comfortable while working
in team thus team work improves.

Identifies person for the future :- Since employees are constantly trained, they are ready to
meet the job requirements. The company is also able to identify potential employees who can be
promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing
people for the future.

Allocating the jobs to the right person :- If proper recruitment and selection methods are

followed, the company will be able to select the right people for the right job. When this happens
the number of people leaving the job will reduce as the will be satisfied with their job leading to
decrease in labour turnover.
Improves the economy :- Effective Human Resource practices lead to higher profits and better
performance by companies due to this the company achieves a chance to enter into new business
and start new ventured thus industrial development increases and the economy improves.
organization of federal and provincial government in Pakistan

Public Sector Enterprises 

Public Sector Enterprises are a significant part of the Indian economy which comprises the
public services and enterprises. An organisation owned by the government is called a public
sector enterprise. This organisation can be a corporation, statutory corporation or a nationalised
bank. The people that work in these organisations are government employees.  

The organisations owned and managed by the government are known as Public Sector
Enterprises or Public Sector Undertakings. It can be held either by the Central Government or
one state government. 

In India, there are 365 public sector undertakings. Some of these PSUs come under the control of
some of the ministers of the Parliament, like the Railways. 

In this article, you will learn and understand the meaning of Public Sector Enterprises in the
country. Additionally, you will understand their role in the economy and public sector
enterprises examples. 
Public Enterprises Meaning 

Public Sector Enterprises are an essential part of the Indian economy. These consist of public
services and enterprises that benefit all India’s citizens. The public sector enterprises are
businesses owned and controlled by the government. 

The government either wholly or partially owns the enterprises. These enterprises help the
government participate in the economic activities of the country. The Central or the state
governments can manage public Sector Undertakings. When managed by the state government, it
is known as the Central Public Sector undertaking. However, when owned and operated by a
state, it is known as the state-level public sector undertakings. 
Classification Of Public Sector Enterprises 

In the PSU’s there are three main sectors, which are:

1. Departmental Undertakings: These are organised, financed and controlled by the

government. The department is under the control of a minister from the Parliament. Some
examples of departmental undertaking are the Indian Railways and Indian Post. 
2. Non-Departmental Undertakings: These are government companies and subsidiaries of
the government. Additionally, these refer to statutory companies set up under special
enactments of the Parliament and State Legislature. A few examples of non-departmental
undertakings are Oil and Gas Corporations and Road Transport Corporations. 
3. Financial Institutions: These are enterprises like commercial banks, investment banks and
brokerage firms. Examples of financial institutions are the State Bank of India and Unit
Trust of India. 

Objectives Of Public Sector Enterprises 

The main objective of the public sector enterprise is to help the benefit of the citizens. However,
besides that, there are other objectives of a public sector enterprise, like: 

1. It helps in creating an industrial base in the country. 

2. PSU’s help in generating a better quality of employment.
3. They develop the basic foundation in the country. 
4. Public Sector Enterprises helps in providing resources to the government. 
 5. They help reduce inequalities and accelerate the country’s economic growth and
development.

Role Of Public Sector Enterprises 

The public sector enterprises play a significant role in the upliftment of the country’s economic
conditions. Here are some of how the public sector enterprises play a role in the economy: 

1. Capital Formation: The Public Sector has been one of the biggest reasons for the
generation of capital in the Indian economy. A large amount of the money generated in
the economy is because of the public sector. 
2. Employment Opportunities: The Public Sector has brought about a significant change in
the employment sector of the economy. It provides the citizens with many employment
opportunities in various sectors of the economy. These opportunities help in the
upliftment of the citizens and the economy. 
3. Development of Regions: Public Sector Undertakings majorly consist of factories and
plants that can boost the different regions’ socio-economic development. The inhabitants
of the parts benefit from the establishment of these. 
4. PSUs. They benefit in ways like facilities like electricity, water supply and township.

Problems In The Public Sector Enterprises 

While the PSU aims to help in the development of the country. It is not a sector that doesn’t face
problems. Hence, here are the issues which the Public Sector Enterprises face: 

 Inappropriate and Wrong Investment decisions

 Incorrect Pricing Policies
 Excessive Overhead Costs 
 Obsolete Technology
 Overstaffing 
 Trade Unions
 Lack of Accountability
Reforms In The Public Sector Enterprises 

The Indian government has many reforms regarding the Public Sector. These reforms help
develop the public sector as they bring changes in the industry. Here are some of the reforms of
the Public Sector: 

 New Industrial Policy, 1991

 Voluntary Retirement Scheme, 1988
 Administered Price Mechanism
 The Policy of Navratnas: PSUs are the best in the economy: they were given autonomy to
perform better and increase efficiency
 The policy of Miniratnas: These are PSUs making profits continuously for three years
 The policy of Maharatnas: These are PSU’s which should have been a Navratna, listed on
the stock exchange in India, and should have a global presence

Examples
 Pak-Arab Refinery.
 Pakistan Aeronautical Complex.
 Pakistan Broadcasting Corporation.
 Pakistan Electric Power Company.
 Pakistan Engineering Company.
 Pakistan Gems and Jewellery Development Company.
 Pakistan Hunting & Sporting Arms Development Company.
 Pakistan Industrial Development Corporation.

HRM Vs Personnel Management

Robert Owen is regarded as the father of personnel management- Human resource management
Vs Personnel managementHuman resource management has changed a lot for the past 100 years.
Arena of human resource management has been widening with the increase of importance of
employees who are core for running any business. Indeed HRM was evolved from personnel
administration or personnel management, which deal with the staff or workers who were not
looked as most valuable assets and investment for an organisation .

Personnel management was mainly concerned with the administrative tasks that did with
organising an organisation, such as record keeping and dealing with employee wages, salaries
and benefits. The personnel officer, in charge of personnel management used to look after labour
relations such as problems with trade unions or difficulties between employers (those who
employ workers) and their employees. Besides the said functions of personal officer, the major
role was to ensure the factory or organisation was in compliance with all the labour laws
applicable to them. No doubt today's HR managers are also following the footsteps of the then
personal officers but the approach towards the employees has changed.

Today human resource have become foremost criteria and fundamental resource for setting up
any business. Unlike in the personal management, today HR managers are focusing on the
training and development of the employee so as to develop the skills and knowledge to match
with organisation's needs.

Personnel management used to emphasis on seniority of worker and working hours in order to
decide remuneration but whereas in today's context, talent and skills are given equal importance
with seniority for deciding the value of the job.

Definition

Personnel Management is basically an administrative record-keeping function, at the

operational level. Personnel Management attempts to maintain fair terms and conditions of
employment, while at the same time, efficiently managing personnel activities for individual
departments etc. It is assumed that the outcomes from providing justice and achieving efficiency
in the management of personnel activities will result ultimately in achieving organizational
success.

It is undisputed fact that personal management is the foundation for the evolution of human
resource management. Many theories related to human resource management which are being
learnt and applied in today's management were formulated during or before the era of personal
management. You can see some of the theories on human resource are listed below.
 Maslow’s Need Hierarchy
 Existence Relatedness Growth (ERG) Theory
 McGregor’s Theory-X and Theory-Y
 Expectancy Theory
 Reinforcement Theory
 Herzberg two factor theory
 McClelland (Needs for Affiliation, Power, and Achievement) Theory of
Motivation
 Adam’s Equity Theory

There is no need to explain that the labour laws were enacted few decades ago. Just by seeing the
year of the Act enacted, one can understand when it came into force and how the legislators had
understanding about the production of interest employees and how to safeguard them against
exploitation by the employers and also how to provide quality of work life, safe working
conditions, basic wages and compensation in case of death of employee in the course of
employment.

As said above it used to be the duty of the personal officer to ensure that the establishment was
moving in accordance with the labour laws. for you here is a list of major Labour laws.
  Workmen's Compensation Act, 1923
 Factories Act, 1948
 Payment of Gratuity Act, 1972
 Gratuity withdrawal form I
 Payment of Wages Act, 1936
 Trade Union Act, 1926
 Industrial Disputes Act, 1947
 Lockout (Industry)
 Layoff / Laid off and Retrenchment
 Labour Courts for disputes in India
 Employee State Insurance Act, [ESI] 1948
 Payment of Bonus Act, 1965
 Employees' Provident Fund Scheme, 1952.
 Child Labour (Prohibition & Regulation) Act, 1986
 Contract Labour (Regulation and Abolition) Act, 1970
 Industrial employment (standing orders) Act, 1946)
 Maternity Benefit Act,1961 (with latest amendments)
 Maternity leave laws
 Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013
Facts [+]

The U.S. Office of Personnel Management (OPM) is the world's largest HR department. OPM
provides HR services for the federal governments workforce of nearly 2.8 million workers. It's
staff carry out the tasks to recruit, interview, and promote employees; oversee merit pay, benefits
and retirement programs; and ensure that all employees and applicants are treated fairly and
according to the law.

To set the COLA [cost-of-living allowances] rates, the Office of Personnel Management (OPM)
surveys the prices of over 300 items, including goods and services, housing, transportation, and
miscellaneous expenses. OPM conducts these surveys in each of the COLA areas and in the
Washington, DC, area.

Human resource management is concerned with the development and implementation of

people strategies, which are integrated with corporate strategies, and ensures that the culture,
values and structure of the organization, and the quality, motivation and commitment of its
members contribute fully to the achievement of its goals.

HRM is concerned with carrying out the SAME functional activities traditionally performed by
the personnel function, such as HR planning, job analysis, recruitment and selection, employee
relations, performance management, employee appraisals, compensation management, training
and development etc. But, the HRM approach performs these functions in a qualitatively
DISTINCT way, when compared with Personnel Management. Major differences between
Personnel Management and HRM
HRM has a long history of growing from a simple welfare and maintenance function to that of a
board level activity of the companies. In recent years, the focus on people management from
human capital/intellectual capital perspective is also shaping firmly. However, the hard fact is
that this growth can be generally witnessed in management literature and rarely in practice.
Peripheral observation of people management in organization can mislead the observers since,
hardly there could be any organization that is yet to rename its old fashioned title of industrial
relations/ personnel/ welfare/ administration department into HRM department. But, in practice,
these organizations continue to handle the people management activities the way they had been
handling earlier. The reasons for this could be many and varied. Among them, the potential
reason is lack of clear understanding about the differences between personnel/IR and HRM.
Professor John Storey brilliantly portrayed these differences in 27 areas of people management
in 1992 in his book titled Developments in the Management of Human Resources. These
differences are illustrated in Table

Dimensions Personnel and IR HRM

Beliefs and assumptions
1. Contract Careful delineation of Aim to go beyond contract
written contracts
2. Rules Importance of devising 'Can-do' outlook;
clear rules/mutually Impatience with 'rule'
3. Guide to management Procedures Business-need'
action
4. Behaviour referent Norms/custom and Values/mission
practice
5. Managerial task vis-a-vis Monitoring Nurturing
labour
6. Nature of relations Pluralist Unitarist
7. Conflict Institutionalized De-emphasized
Strategic aspects
8. Key relations Labour management Customer
9. Initiatives Piecemeal Integrated
10. Corporate plan Marginal Central
11. Speed of decision Slow Fast
Line management
 12. Management role Transactional Transformational leadership
13. Key managers Personnel/ IR specialists General/business/line
managers
14. Communication Indirect Direct
15. Standardization High (e.g. 'parity' an Low (e.g. 'parity' not seen as
issue) relevant)
16. Prized management Negotiation Facilitation
skills
Key levers
17.   Selection Separate, marginal task Integrated, key task
18. Pay Job evaluation (fixed Performance-related
grades)
19. Conditions Separately negotiated Harmonization
20. Labour-management Collective bargaining Towards individual
contracts contracts
21. Thrust of relations with Regularized through Marginalized (with
stewards facilities and training exception of some
bargaining for change
models)
22.   Job categories and Many Few
grades
23.   Communication Restricted flow Increased flow

24.   Job design Division of labour Teamwork

25.   Conflict handling Reach temporary truces Manage climate and culture

26. Training and Controlled access to Learning companies

development courses
27.   Foci of attention for Personnel procedures Wide ranging cultural,
interventions structural and personnel
strategies
Elements of Personnel Management
1. Organization- Organization is said to be the framework of many activities taking
place in view of goals available in a concern. An organization can be called as a
physical framework of various interrelated activities. Right from manpower
planning to employees’ maintainance, all activities take place within this framework.
 The nature of the organization is dependent upon it’s goal. The business concern
goal being profit- making. Clubs, hospitals, schools,etc. their goal being service. The
objective of consultancy being providing sound advice. Therefore, it is
organizational structure on which the achievement of goals of an enterprise depends
upon. In personnel management, a manager has therefore to understand the
importance of organizational structure.
2. Job- The second element, i.e., jobs tell us the activities to be performed in the
organization. It is said that the goals of an enterprise can be achieved only through
the functional department in it. Therefore, seeing the size of organization today, the
nature of activities are changing. In addition to the three primary departments,
personnel and research department are new additions. Various types of jobs available
are :
a. Physical jobs
b. Creative jobs
c. Proficiency jobs
d. Intellectual jobs
e. Consultancy jobs
f. Technical jobs
3. People- The last and foremost element in personnel management is people. In a
organizational structure, where the main aim is to achieve the goals, the presence of
manpower becomes vital. Therefore, in order to achieve departmental goals,
different kinds of people with different skills are appointed. People form the most
important element because :
a. The organizational structure is meaningless without it.
b. It helps to achieve the goals of the enterprise.
c. It helps in manning the functional areas.
d. It helps in achieving the functional departmental goals.
e. They make a concern operational.
f. They give life to a physical organization.
The different types of people which are generally required in a concern are :
g. Physically fit people
h. Creative people
i. Intellectuals
j. Technical people
k. Proficient and skilled people
In personnel management, a personnel manager has to understand the relationship of the three
elements and their importance in organization. He has to understand basically three
relationships:-

i. Relationship between organization and job

 ii. Relationship between job and people
iii. Relationship between people and organization.
Relationship between organization and job helps making a job effective and significant.
Relationship between job and people makes the job itself important. Relationship between
people and organization gives due importance to organizational structure and the role of people
in it.

1. HRMS platforms
Human resources departments have a lot of data about employees, and information to key in,
store and retrieve as needed. The tool of choice for processing this information is a
comprehensive human resources management system. Whether it’s a software solution or a
SaaS, a HRMS (Human Resource Management System) platform is essential for effective
personnel management, because it allows you to store and organise data, such as employee
profiles, working hours, attendance records, holidays and much more.

Most HRMS tools provide a central platform for HR management and often there are modules or
integrations for payroll, benefits and performance evaluation management.

2. Managing Recruitment
Using HR digital platforms to manage recruitment is very effective, it is an area where
innovation is more evident compared to traditional methods. Recruiting software simplifies the
process of selecting candidates. It allows you to publish job advertisements, receive and classify
applications, it manages the process of selection of candidates and performs other functions,
eliminating the hassle of managing these processes manually.

Recruiting new employees is a complex process. Some recruiters search for new employees by
publishing advertisements on specialised portals and assessing job applications, as well as
checking amongst the company’s network of contacts. During this process, after candidates are
selected, each one needs to be interviewed (sometimes more than once) in order to evaluate their
experience and motivation, and then the most suitable candidate is chosen. The margin of error,
however, remains large with regard to their actual competence, their ability to work in teams and
many other skills and aptitudes deemed necessary for successful integration in the company such
as, for example, commitment to the values of the company or their ability to work within a
group.

Recruiting platforms
Currently, recruiting platforms enable, for example, potential candidates to be selected and
contacted directly using the service offered by LinkedIn or other portals that have the profiles of
thousands of people interested in changing jobs. It is possible to use social networks and
automate the initial screening of profiles, using platforms that check not only skill sets, but also
other aspects, such as their approach to change and passion for digital innovation.

Recruiting people who are very skilled at their job but have no interest in the digital evolution of
their work is very dangerous. The digitisation of tasks and processes is a constantly evolving
phenomenon and it is essential that the skills and aptitudes of new employees, in all positions,
are complemented by a real interest in innovation. In a few years’ time, those who are hired now
will necessarily have to change technology and working methods. Currently it is necessary for
new employees to be able to use tools for teamworking and sharing of documents and projects.
Every employee must be able to access training and participate in meetings, if required using
online tools to do so. It is therefore necessary to evaluate the candidate’s ability to quickly learn
the features of the digital tools that facilitate their work.

3. Performance monitoring
The number of companies using behavioural approaches to assess and monitor employee
performance is increasing dramatically. In some cases, however, this is still done by having an
annual meeting of departmental and HR managers, perhaps to allocate performance bonuses.
Often this procedure takes place without the necessary objectivity, based on parameters that are
not strictly linked to results or the output of individual employees. It is important to identify
objectives for individual employees and continuously monitor performance, openly giving
feedback and evaluation to the manager and the employee on a continuous basis. At the end of
the year it is then easier to convene the employee and present him/her with the work done,
evaluating results based on facts.

Performance management platforms

There are several platforms on the market that assist in this important task. They facilitate the
evaluation of the employee’s work, based on performance indicators (KPIs) defined by
supervisors in collaboration with the HR department and management.

These platforms allow you to examine performance, identify how an employee, or the team in
which he or she works, can improve, if necessary providing customised training to fill the gaps.
Digital HR makes it possible to detect shortcomings in the skills and abilities of individuals and
to design appropriate training, which can be regularly provided in a digital format. Regular
training is often more effective for employees, especially at lower levels, and it can, in many
cases, replace traditional classroom courses. A program of regular training in digital format,
using videos and questionnaires can be shared with employees, who can provide feedback and
propose changes to the content based on the tasks they carry out and the experience gained in the
field.
Recent news reports about Amazon and hundreds of layoffs managed by software that monitors
efficiency, management of breaks, and productivity show the other side of the coin; that is an
overly analytical performance monitoring combined with information management based on a
single parameter. Modern HR management is based on the growth of the individual employee,
on his or her potential, on appropriate and personalised training and on the evaluation of results,
which can also be improved through changing procedures.

This is the task of performance monitoring software: to enable a manager, albeit helped by the
reports produced by the platform, to make informed decisions. Decision-makers are called upon
to evaluate the benefits that the individual employee brings to the company’s operations.  They
must also manage the corporate responsibilities of ensuring the development of each individual’s
potential and all human resources, as they are one of the most important assets of a successful
business.

4. Payroll service and digital innovation

Managers expect the HR department to be very efficient in managing the payroll. This may
appear to be an area which has changed little compared to the past, as the way in which payroll,
tax and employee payments are processed is generally less subject to change.

Among the improvements of the new Payroll platforms, compared to classic payroll
administration software, are the simplification of processes, cloud-based management and clarity
for the employee, who can access his data remotely and assess what the company is doing for
him in terms of renumeration. Establishing parameters for each grade and individual salaries,
with a view to ensuring fairness and facilitating talent management and career development for
those who are an important asset for the company, is also one of the features provided on salary
management platforms.

Performance-based solutions

Performance evaluation and monitoring is not just an annual meeting between the supervisor and
the employee; the goals and objectives discussed at this meeting are monitored and reviewed by
the HR department throughout the year. To make the most of a performance review and to better
articulate each employee’s goals, HR can provide managers with the tools to track employee
performance throughout the year by storing notes and comments to prepare the manager and
employee for the review. Many HRMS and payroll solutions, such as IceHrm, have a
customizable performance appraisal module.
5. Benefits Management Platform

While some payroll services allow you to manage certain benefits, such as vacation, a more
robust solution can help you manage all employee benefits, including vacation pay, pensions,
health insurance, workers’ compensation, and other benefits.

6. Tool for employee engagement

Employee engagement is a priority for many companies. With today’s technical tools, you can
monitor your company’s culture and get a better idea of what your employees want.

For example, programs such as IceHrm software allows you to recognize and reward employees
who do a good job or embody the company’s values. Also, it allows you to collect anonymous
feedback from your team, which you can use to improve your culture and processes.