A Study on " FUNCTIONS OF HRM "

A Project Submitted to
University of Mumbai for partial completion of the degree of Bachelor of Management
Studies Under the Faculty of Commerce

By
RAVI SURENDER
MEHTA
TYBMS Sem – VI
Roll No. 242
Under the Guidance of Prof.
POOJA AMBRE

Yeshwantrao Chaphekar College of Commerce and Management Tembode,

Palghar-401404
2023-2024
 Project Report on

“FUNCTIONS OF HRM’’
Submitted by

TYBMS Sem –VI

Roll No.242
Under the Guidance of Prof. Pooja Ambre
Submitted to University of
Mumbai Through
Yeshwantrao Chaphekar College of Commerce and Management Tembode,
Palghar 401404

2023- 2024
 CERTIFICATE

This is to certify that Mr. RAVI SURENDER MEHTA has worked and duly completed his
project work for the degree of Bachelor of Management Studies under the faculty of
commerce in the subject research project and her project is entitled, " FUNCTIONS OF
HRM " under my supervision.

I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any degree or diploma of any university.

It is her own work and facts reported by his personal findings and
investigations.

Principal : Dr. Nilima Singh

Guide: Prof. Pooja Ambre

Internal Examiner:

External Examiner:

Date:

Place:
 ACKNOWLEDGEMENT

We take this opportunity to express our sincere thanks and deep gratitude to all those people
who helped us in completing this project successfully, this work of creation wouldn't
possible without their kind help, co-operations and extended support.

First and most sincere thanks to our respected guide Prof. Pooja Ambre providing the
necessary facilities to carry this work. We also take this opportunity to express our profound
sense of gratitude for her guidance which leads us to the successful completion of this major
project.

Our sincere thanks to all the coordinators, whose valuable suggestions and supports and
motivation provided us the requirement strength for the accomplishment of this major
project.

Lastly, I would like to thank each and every person who directly or indirectly helped me
in the completion of the project especially my Parents and Peers who supported me
throughout my project.

RAVI S. MEHTA
 DECLARATION

I RAVI S.MEHTA, the student of Bachelor management Studies semester - VI 2023-

2024 hereby declare that I have completed the Project on "Retail Management in E-
Tailing" as a part of course requirements of bachelor of Management Studies of
University of Mumbai.

The information submitted is genuine and practical to the best of my knowledge.

I, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Certified by
Principal signature of student
Dr.nilima singh RAVI S.MEHTA

Date:

Place: Palghar
 Index
SR.NO Particulars Pg.NO
1) FUNCTIONS OF HRM
2) Managerial Functions
3) HR Policies
4) QUALITIES OF HR
MANAGER

5) Challenges faced by hr
managers

6) Developing human
capital
7) SCOPE OF HRM
2. Introduction

Why name human resource management?

Human: refer to the skilled workforce in the organisation.

Resource: refer to limited availability or scarce.

Management: refer to maximise or proper utilisation and make best use of limited and a
scarce resource.

The success of any organization depends upon how it manages its resources. While several
resources arethe non–humanresource such as land, capital, and equipment, it is the human
resource and its management which is at the heart of an organization’s success.

Human Resource (HR) refers to all the people who work in an organization called personnel.
Human Resource Management refers to the organizational function which includes practices
that help the organization to deal effectively with its people during the various phases of the
employment cycle. HRM is management function concerned with hiring, motivating, and
maintaining people in an organisation. It focuses on people in the organisation.

“Working with, for and through people is the way in which a manager accomplishes his job.
Maintaining good human resources is a Manager’s responsibility. Providing human
satisfaction from work output and relationship is a Manager’s obligation.”

In the words of Mr. NR Narayana Murthy, Chairman Emeritus, Infosys, “You must treat your
employees with respect and dignity because in the most automated factory in the world, you
need the power of human mind. That is what brings in innovation. If you want high quality
minds to work for you, then you must protect the respect and dignity.”

In the words of John F. Kennedy, “Our progress as a nation can be no swifter than our
progress in education. The human mind is our fundamental resource.”
3. Meaning and Definition

Essentially, the Human Resource Management (HRM) is a management function that deals
with recruiting, selecting, training and developing human resource in an organization. It
isconcerned with the”people” dimension in management. It includes activities focusing on the
effective use of human resources in an organization. It is concerned with thedevelopment of a
highly motivated and smooth functioning workforce. It also includes planning, acquiring,
developing, utilising and maintaining ‘human resources’ in theachievement of organizational
goals.

According to Edwin B. Flippo, “Human resource management is the planning, organizing,

directing, and controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual, organizational
and societial objectives are accomplished.”

The Indian Institute of Personnel Management defines HRM as, “Human resource
management is a responsibility of all those who manage people as well as being a description
of the work of those who are employed as specialists. It is that part of management which is
concerned with people at work and with their relationships within an enterprise. It applies not
only to industry and commerce but to all fields of employment.”

According to Tead and Metcaff, “Human resource management is the planning,

supervision, direction and co-ordination of those activities of an organization which
contribute to realising the definite purpose of that organization, with an animating spirit of
co-operation and with a proper regard for the well-being of all the members of the
organization.”

Milkovich and Boudreau view HRM as, “A series of integrated decisions that form the
employment relationship; their quality contributes to the ability of the organizations and the
employees to achieve their objective.”

It is thus clear that human resource management is a specialized knowledge and practice
concerned with the management of human resources in an organization. It constitutes a
significant activity of the management. It attracts and selects capable men, organises them in
productive groups, develops their potential, gives them necessary motivation and maintains
their high morale.
 Function of Human Resource Management

 Human resource management is concerned with hiring, motivating, and maintaining

workforce within businesses.

 As per Armstrong (1997) HRM is defined as strategic approach to acquiring,

developing, managing, motivating and gaining commitment of the organization's key
resources- the people who work in and for it.”
FUNCTIONS OF HRM

MANEGERIAL

OPERATIVE

ADVISORY
 Managerial Functions
 Planning

 Organizing

 Staffing

 Directing Controlling

1. Planning
  Future course of action.
 For a human resource manager, planning means
the determination of personnel programs that will contribute to the goals of the
enterprise.
 Demand and supply forecasting for each job.
Identifying net shortage and excess of manpower. Developing HR policies and
Programmers.

2. Organizing

 Designning and developing organisation structure to carry out the various operations.
 The organization structure basically includes the following:
- Grouping of personnel activity logically into functions or positions;
- Assignment of different functions to different individuals;
- Delegation of authority according to the tasks assigned and responsibilities involved;
- Co-ordination of activities of different individuals.

3. Staffing
It is the process of obtaining and maintaining capable and competent personnel in various
positions at all levels, i.e. manpower planning, recruitment, selection, placement and
induction.

4.directing

 The direction function of the personnel manager involves encouraging people to work
willingly and effectively for the goals of the enterprise.

- Motivation
- Leadership
- Communication
- Morale

5.Controlling
 Controlling is concerned with the regulation of activities in accordance with the plans,
which in turn have been formulated on the basis of the objectives of the organisation.

 It involves performance appraisal, critical examination of personnel records and

statistics and personnel audit.
FUNCTIONS OF HRM

MANEGERIAL

OPERATIVE

ADVISORY
 Operative Functions

1. Employment/Procurement

2. Development

3. Compensation

4. Maintenance

5. Motivation

6. Personnel Records

7. Employee Relations

8. Separation
 01. Employment

Employment is the first operative function of HRM. This involves procuring and
employing individuals with suitable knowledge, skills, experience and aptitude necessary to
perform various jobs.

The various functions of employment are:

➤ Job analysis and design

➤ HR planning

➤ Recruitment

➤ Selection

> Placement

Induction

• Job Analysis and Design: Describing theresponsibilities and minimum qualities

required to perform the job.

• Human Resource Plan: Determination of right people at right time at right position.

.Recruitment: Recruitment refers to the process of searching for prospective employees

and stimulating them to apply for jobs in an organization.

• Selection: The process of choosing the most suitable

2. HR development
•Process of improving, moulding and changing the skills, knowledge and ability of an
employee
HR development involves functions such as:
•Training-Training is the systematic development of knowledge, skills and attitudes required
to perform a given task or job successfully, in an individual.
•Management development - It is the concept of developing the employees of an organization
to meet future changes and challenges.
•Career planning and development - Career planning and development refers to identifying
one's career goals and formulating plans for achieving them through various means such as
education and work experience.
•Performance appraisal This is the process of evaluating the performance of an employee on
the job and developing a plan for the employee's improvement.

3. Compensation

• It includes all the rewards that an employee receives during the course of his or her job-for
his or her contributions to the organisation. It includes:
Job evaluation - It is a systematic determination of the value of each job in relation to other
jobs in the organisation, in the industry and in the market.

➤Wage and salary administration - It is the process of formulating and operating a suitable
wage and
salary programme.
Incentives - These are the rewards that an employee earns in addition to regular wages or
salary based on the performance of the individual, the team or the organisation.
Fringe benefits - These are monetary and non-monetary benefits given to employees during
their employment and sometimes, also in the post-employment period.

4. Maintenance (Working Conditions and Welfare)

Process of providing employees the working conditions so that they may like their work and
workplace and maintain their efficiency.
These include measures taken for health, safety, and comfort of the workforce.
The personnel department also provides for various welfare services which relate to the
physical and social well-being of the employees.
These may include provision of cafeteria, rest rooms, counseling, group insurance, education
for
5. Motivation

Process of integrating people into a work situation in a way that it encourages them to
perform / deliver to the best of their ability.

• Understanding needs

• Designing motivation techniques

• Financial

• Non-financial

Monitoring

6. Personnel Records

• The human resource or personnel department maintains the records of the employees
working in the enterprise.

• It keeps full records of their training, achievements, transfer, promotion, etc.

To

• It also preserves many other records relating the behaviour of personnel like absenteeism
and labour turnover and the personnel programs and policies of the organisation.

7. Employee Relations

• These days, the responsibility of maintaining good industrial relations is mainly discharged
by the human resource manager.
• The human resource manager can help in collective bargaining, joint consultation and
settlement of disputes, if the need arises.
• The human resource manager can do a great deal in maintaining industrial peace in the
organisation as he is deeply associated with various committees on discipline, labour welfare,
safety, grievance, etc.

• The human resource or personnel department maintains the records of the employees
working in the enterprise.
• It keeps full records of their training, achievements, transfer, promotion, etc.
to
• It also preserves many other records relating the behaviour of personnel like absenteeism
and labour turnover and the personnel programs and policies of the organisation.
7. Employee Relations

• These days, the responsibility of maintaining good industrial relations is mainly discharged
by the human resource manager.

• The human resource manager can help in collective bargaining, joint consultation and
settlement of disputes, if the need arises.

• The human resource manager can do a great deal in maintaining industrial peace in the
organisation as he is deeply associated with various committees on discipline, labour welfare,
safety, grievance, etc.

settlement of disputes, if the need arises.

• The human resource manager can do a great deal in maintaining industrial peace in the
organisation as he is deeply associated with various committees on discipline, labour welfare,
safety, grievance, etc.

8. Separation
• Since the first function of human resource management is to procure the employees, it is
logical that the last should be the separation and return of that person to society.
• The personnel manager has to ensure the release of
·
retirement benefits to the retiring personnel in time. Types of Separation:

- Retirement

- Resignation

- Layoff
III. Advisory Functions

• Human resource manager has specialized education and training in managing human
resources

1. Advised to Top Management: Personnel manager advises the top management in

formulation and evaluation of personnel programs, policies and procedures. He also gives
advice for achieving and maintaining good human relations and high employee morale.

2. Advised to Departmental Heads: Personnel manager offers advice to the heads of various
departments on matters such as manpower planning, job analysis and design, recruitment and
selection, placement, training, performance appraisal, etc.

Human Capital

Intellectual: Special knowledge, skills and learning capacity

• Social: Network, relationship, sociability and trustworthiness

Emotional: Self confidence, ambition, courage, risk bearing ability
Difference between Personnel Management and Human Resource
Management.
Personnel Management
• According to Edwin Flippo, Personnel Management is the planning, organizing,
compensation, integration, and maintenance people for the purpose of contributin to
organizational, individual and societal goals."
Human Resource Management
Art of procuring, developing and
competent
maintaining, workforce to achieve the goals of an organization in an effective and efficient
manner.

Introduction

A policy is a man-made rule of pre- determined courses of action that is established to guide
the performance of work towards the organisation objectives."- Edwin Flippo
"Policies are statements of the organisation's over-all purposes and its objectives in the
various areas with which its operations are concerned- personnel, finance, production,
marketing and so on."

HR Policies & Procedures

HR policies - set of guidelines that determine the way in which e/e are to be treated in the
organization.

HR procedures - help the mgt in implementing the HR policies i.e. specific applications or
actions.
HR Policy

•According to Dale Yoder "A policy is a predetermined and accepted course of thought and
action that is defined and established as a guide towards accepted goals and objectives." •HR
policy is the principle or objective established by a company for the guidance of the
management in its relations with employees."

Definition:-
HR PoliciesA policy is a plan of action.

Brewster and Richbell defined "HR policies as a set of proposals and actions that act as a
reference point for managers in their dealings with employees."

-They constitute guides to action.

-They furnish the general standards or bases on which decisions are based.

-Their genesis lies in an organization's values, philosophy, concepts and principles

Features of HR Policy
It is a statement of objective for the guidance of management in the management of human
resources,

⚫It contains predetermined course of actions, procedures and programmes relating to human
resource management.

•The HR policy must be clear and understandable by all employees in the organisation
Features of HR Policy

⚫It provides standards based on which decisions are taken.

⚫It gives directions to HR staff in the discharge of the functions.

The HR policy must be communicated to all employees in the organisation
Objectives HR Policies:

1) Fulfillment of the organisational objectives.

2) Development of sincere sense of unity within the

enterprise.
3) Maximize use of Human resourcers
4) Providing adequate and trained personnel at all levels.
5)Protection of the common interest of all parties.
6) To provide consultative participation.
7) To avoid confusion or misunderstanding between the management and workers.
8) To provide for the payment of fair and adequate
compensation.
9) To create a sense of responsibility.
Peter Drucker says:
"The management must gear its policies and objectives in such a fashion that the employees
perform their work. It implies a consideration of human being as a
resource having psychological properties, abilities and limitations requiring same amount of
engineering attention as any other
resource. And it is the
management alone that can
satisfy the requirements of
motivation, participation,
satisfaction, leadership,
Types of HR policy
Originated policy
•Appealed policy
•General policy
•Specific policy
Written policy
Forms of delivery of HR policies:
Written standard practice, procedures issued to cover company policies, with supplements to
cover changes.
Booklets, bulletins, issued to new employees setting forth rights, privileges and
responsibilities.
Verbal instructions from immediate superiors. Group meetings of new employees convened
regularly.
Union contract
Conference conducted as a part of executive training programme.
Various Types of Policies
• Employment Policies
- These are the policies that guide hiring practices, orientation of new employees, compliance
with employment laws, and confidentiality.
Employment Status & Records
- These are the policies that define such issues as employment classifications, access to
personnel files and guidance on how background checks and performance reviews are to be
performed.
Employee Benefits
These are policies that explain employee benefits such as insurance, vacations, holidays,
leave, and employee reimbursements.
Payroll
- These are policies that are related to salary and wage administration including deductions,
pay advances, and time keeping.
Workplace Guidelines
These policies are quite varied and their purpose range from defining certain work
arrangements such as flex time and telecommuting to offering guidelines on the use of
company assets and record retention.
Employee Conduct
- These policies are guidelines that control employer behavior and conduct on the job. The
mainstay of this section is a code of conduct but also important are policies regarding
substance abuse, smoking, harassment, and workplace violence.
E-Policies
- These policies guide staff in the use of the organization's information technology. Policies
defining acceptable and prohibited activities and use of e-mail and the Internet make up a
majority of these policies
Training and Development Policy • Condition of Employment

Lay-off, termination of service

Disciplinary action
• Grievance redressal
Transfer, promotion and Demotion
Coverage of HR Policies:-
a) Social responsibility
Equity
Quality of Work Life
b) Employment Practices
c) Promotion Policies
d) Development Policies
e) Relations Policies f) Termination Policies
Characteristics of sound HR Policy.
Relation of policies with objectives
Definite, positive, clear and easily understood by
everyone.
It should be in written and uniform
Reasonably stable but not rigid i.e. periodically revised.
Compliance with all appropriate law and regulation.
Recognise the desire of employees.
It should be progressive and enlightened, and must be consistent with professional practice
and philosophy•
It should be formulated with due regards for the interest of all the concerned parties-
employer, employee and public community.
Based on careful analysis of all the available facts.
Must provide a two-way communication between employer and employees. It must ensure
justice to the employees.
Tata steel's Personnel Policy
TATA STEEL

The statement Objectives of the Tata Iron &steel Co. Ltd. Gives a clear cut policy towards its
employees:
1) By a realistic and generous
understanding and acceptance of their needs and rights.
2) By proving adequate wages, good working conditions, job security, an effective machinery
for redressal of grievances and suitable opportunities of promotion.
3) By treating them as individuals, giving them a sense of self-respect.
4) By creating a sense of belongingness through human and purposeful activities as an
integral part of human

Advantages of HR Policies

Policies are useful instructional devices, that offer various advantages to HR working at
various levels.
•Delegation

• Uniformity

•Better Control

•Standards of efficiency
·
Confidence

Speedy Decisions

Coordinating Devices
Obstacles in Administrating HR

Policies:-
1. Managers are reluctant to follow guidelines as it curtails their freedom.
2. Conflict
between implied and
expressed policy.
3. Not easy to Communicate.
4.Makes managers rigid

.
The Human Resource Manager is a part of the organisational management. So he
must perform the basic managerial functions of planning, organising, di- recting and
controlling in relation to his department. These functions are

Planning: To get things done through the subordinates, a manager must plan ahead.
Planning is necessary to determine the goals of the organisa- tion and lay down
policies and proce- dures to reach the goals. For a human resource manager, planning
means the determination of personnel programs that will contribute to the goals of the
enterprise, i.e., anticipating vacancies, planning job requirements, job de- scriptions
and determination of the sources of recruitment.
The process of personnel planning involves three essential steps.

Controlling:
Controlling is con-cerned with the regulation of activitie
accordance with the plans, which in turn have been formulated on the basis of the
objectives of the organisation. Thus, controlling completes the cycle and leads back to
planning. It involves the observation and comparison of re- sults with the standards
and correction of deviations that may occur.
Controlling helps the personnel man- ager to evaluate the control the perfor- mance of
the personnel department in terms of various operative functions. It involves
performance appraisal, critical examination of personnel records and statistics and
personnel audit

Directing: The plans are to be pure into effect by people. But how smoothly the
plans are implemented depends on the motivation of people. The direction function of
the personnel involved encouraging people to work willingly and effectively for the
goals of the enterprise

Organizing: Once the human re- source manager has established objec- tives and
developed plans and pro- grams to reach them, he must design and develop
organisation structure to carry out the various operations. The organisation structure
basically in- cludes the following
 Operative Functions:

The operative functions are those tasks or duties which are specifically en- trusted to the
human resource or per- sonnel department. These are con-
cerned with employment develon-
In other words, the direction function is meant to guide and motivate the people to
accomplish the personnel programs. The personnel manager can motivate the employees in
an organisa- tion through career planning, salary administration, ensuring employee morale,
developing cordial relationships and provision of safety and welfare of
requirements employees.
The motivational function poses a great challenge for any manager. The per- sonnel manager
must have the ability to identify the needs of employees and the means and methods of satisfy
those needs. Motivation is a continuous
A supply and demand fore- cast for each job category is made. This step requires knowledge
to both labour market conditions and the strategic posture and goals of the organization.
Net shortage and excess of personnel by job category are pro- jected for a specific time
horizon.
Plans are developed to elimi - nate the forecast shortages and ex- cess of particular categories
of hu-
man resources.
 QUALITIES OF HR MANAGER

"A h
uman resource manager is a vital member of an organizations HR department.
The department function like the key engine room of an organization so an HR manager roles
and responsibility assume great significance".
An HR manager must possess certain qualities and skills to channelize the talent, potential
and capabilities of employees.
1. Physical- Health, vigor and address
2. Mental- Ability to understand and learn, judgement, mental vigor and adaptability
3. Moral- Energy, Firmness, willingness to accept responsibility, Initiative, loyalty, tact and
dignity. 4. Educational- Knowledge about general functioning of the organisation
5. Technical- Knowledge of the job being performed.
6. Experience- Arising from the work.
Qualities of HR Manager
 Personal Qualities
 Social Qualities
 Professional
 Personal Qualities
 Humanitarian values
 Honest and sincere
 Discipline
 Dedication
 Enthusiastic
 Self-confidence
 Positive attitude
 Self-awareness
 Free from bias
 Social outlook
Social Qualities

•Leadership

•Effective communication

•Active Listening

•Adaptability/flexibility (Openness to change)

• Etiquette & Mannerism

• Building up rapport

Professional Qualities

• Intelligence skill

• Experience and training

• Grievance handling/counselling

• Negotiation skills /(create win-win situation)

• Interdisciplinary approach

• Transparency / Confidentiality

• Decision skill: Analytical, judgment and foresight.

• Executing skill: Ability to implement process.

• Knowledge of labour law and other laws.

Role of HR Manager
organizational objectives.

• It is human resource/work people who perform task and achieve company goals.
• HR manager is a guide, philosopher, friend, path- finder, path identifier, problem solver,
competence maker of the human resource

• Ulrich (1997) has developed a model of multiple roles for HR professionals who focus
ranges from long-term strategic to short-term operational, and activities range from managing
processes (HR tools and systems) to managing people.
Role of HR Manager

• Administrative Role

• Operational Role

• Strategic Role

Role of HR Practitioner

• Advisory Role

• Pro-acting Role

• Welfare Role

Developmental Role

• Mediator's Role

Counsellors Role

• Procurer's Role

Disputes Prevention
Role

• Decision Maker's role

·
Change agent role
•
Coordinator's Role
Strategic Partner Role
•
Maintenance Role
·
•
Spokesperson Role
·
Monitoring Role
Motivator's Role
•
Executive Role
Advisory Role: One of the major roles of HR manager is, to advise the top management in
matter relating to management and development of human resource, in order to achieve
organizational objects.

Pro-Acting Role: HR manager ascertains the probable areas of conflict and differences
between workers and management

• Welfare Role: HR executive looks to the welfare aspect of the employee's viz., canteen,
creche, rest-room, hospital, transportation, housing accommodation, school, etc.

·
Developmental Role: Development of workers for attaining company goals is made by
the HR manager through improvement of knowledge, skill, abilities, aptitude, attitude, value,
beliefs etc.

Mediator's Role: HR manager works as a link personality between trade unions and top
management in order to eliminate the differences of opinions cropped up in process of
settlement of disputes.
Counsellor's Role: Guiding and advising employees to take decisions with respect to work,
career and family.

Spokesperson Role: HR executive works as a spokesperson of the company especially,

in the matter of depicting organization health, condition, strength etc. to the employees while
negotiating for settlement of industrial disputes.

• Motivator's Role: One of the functions of HR manager is to motivate the employees to

achieve their own goals, as well as organizational goals HR manager performs such role by
way of introducing reward schemes.
·
Procurer's Role: HR manager helps to procure the right number and right kind of people
at the right time, to enable the company to run smoothly, effectively and efficiently and to
achieve its goals.
Types of HRM Jobs

Generalist

- Human Resource Assistant or Specialist Employment, Recruiting and Placement

- Interviewer, EEO Specialist or College Recruiter Training and Development
-
Trainer, Orientation Specialist Compensation and Benefits
-
- Salary Administrator, Compensation Analyst, and Benefits Administrator

Types of HRM Jobs

Employee and Labor Relations

- Labor Relations Specialist, Plant Personnel Assistant, Employee Relations Specialist

Health, Safety and Security
- Safety specialist, Security Specialist, Employee Assistance Program Counselor, Medical
Program Administrator Human Resource Information Managers

Education

 Undergraduate Degrees
-Behavioral Sciences, General Business, Business & LaborLaw

 Masters Degrees
 -Human Resource Management, Labor Relations, Organizational
Behavior/Development

-A Master's degree is preferred in today's competitive market • Human Resource

 PHR (Professional in Human Resources)

 SPHR (Senior Professional in Human Resources) based on experience, exam, and

course requirements
 Challenges of Modern HR Managers

Introduction

• HRM is one of the functions of management that endured tremendous change in the new
millennium.

There is a shift in HRM manager's responsibility from simply handling personnel issues to
designing strategic implementation of complicated strategies for the organization.
 Challenges to HR Professionals

 Environmental Challenge

 Organisational Challenge

 Individual challenge

 Environmental Challenge

 Globalization

Environmental challenge

 Workforce Diversity: Gender, age distribution, cultural diversity, educational

level.

 Regulatory Framework

 Economic change

 Technological trends: Artificial intelligence, Robots

 Globalization

Impact on HRM

 Partnerships with foreign firms

 "Anything, anywhere, anytime" markets

 Different geographies, cultures, laws, and business practices

 Issues:

Identifying capable expatriate managers.

Developing foreign culture and work practice training programs.
Adjusting compensation plans for overseas work.
·

Organisational Challenge
 Slower growth

 Human Resource Information system

 Attracting and retaining talent to the enterprise

 Developing Distinctive capabilities

 Corporate Reorganization

 Managing relationship

 Changing nature of work

 Flatter organization

 Ethical management
 Individual challenge
 Quality of work life

 Individual productivity

 Attrition rate/ Turnover

 Employee empowerment

 Job insecurity

 Leadership development Managing work-life balance

 Conflict, Groupism and internal politics

 Quality of Work-life: Richard E Walton provides eight criteria for assessing the QWL.

-Sufficient and fair compensation,

- Healthy and safe work environment,

- Opportunity to use and develop human capacities,
- Opportunity of continued growth and security,
- Social integration in the work organization,
- Constitutionalism,
- Balance role of work and
- Socially beneficial and responsible work
 Challenges faced by hr managers

Human Resource (HR) has always played a pivotal role in business operations. To date,
HR’s active involvement in companies has allowed the rest of the company to focus on
and to push business operations. This includes coming up with a set of specific
requirements when hiring new staff, coming up with a Key Performance Index (KPI) to
determine each employee’s performance at work and ensuring that the company is
obeying worker-related regulatory guidelines.
However, businesses, in this day and age, are evolving at a rapidly fast pace. At such a
rate, employees will very likely face difficulties in coping with changes. This will
indirectly affect the productivity and morale in companies. HR Managers, thus, face a
difficult task in balancing between the interests of the company and the employees.
This article highlights some of the major problems faced by HR Managers today.

THE RECRUITMENT PROCESS

A company needs a relatively large pool of qualified candidates. And recruiting talents
is said to be one of the major challenges facing HR Managers today.
Selecting a candidate with an appropriate blend of skills, personality, and motivation,
is a tough process. HR managers often have to identify resumes of qualified candidates,
do a comparison to determine who makes the best fit.
Furthermore, HR Managers face the difficulty of maintaining and tracking resumes sent
by applicants. Don’t forget the one-on-one interview and answering questions with the
individuals. The difficulty also increases when panel interviews take place. Along with
administrative work, the going gets tougher in the long run.
ENSURING PRODUCTIVITY
HR managers have many roles to play to ensure effective and efficient productivity in
the company.
Offices that rewards employees who stayed late beyond the regular working hours over
to their work done, is stumbling for those who are passionate and efficient. This
induces much frustration among the employees and causes low morale among them. As
a result, the dissatisfaction at the workplace or the scope of work often contribute to
low productivity.
HR will then have to step in to facilitate discussion and viable options, as well as
manage the expectation.
Furthermore, measuring productive hours and outputs for individual employees in a
company is a tedious process. This is more so when employees try to steal time or get
their colleagues to time their attendance for them. HR will then need to use effective
means to stop the employees from tampering the attendance for accurate productivity
hours. Ensuring sustained productivity is always a challenge in a business continuum.
PAYROLL RESPONSIBILITIES

There is no doubt about payroll being every individual’s motivation at work. Such a
menial task can be a cause of great headaches for HR Managers.
Without an effective and efficient payroll management system, HR Managers will have
difficulties keeping track of each worker’s salary. They may end up paying the wrong
amount or even forgetting to pay them. Also, HR Managers will need to review the
salary packages and benefits to retain suitable talents for the company and its long term
gr
EMPLOYEE-MANAGEMENT RELATIONSHIP

In order for a company to operate smoothly and prosper, there is a need for mutual
trust and respect in the relationship between employees and the management team.
After all, this is no longer the age of slaves. Companies will award their employees
with appropriate remuneration when they perform competently. Of course, such returns
do not necessarily have to be money. These could be in the form of welfare benefits
such as longer leave limits, healthcare subsidies, car allowance and etc. HR has to
facilitate these options.
Also, playing a crucial role in bridging the differences between employees and
management, HR Managers has to manage both their interests and expectations to have
a good balance for maintaining positive working relationships in the long run.

PERFORMANCE APPRAISAL

Companies often need to adapt quickly to the dynamic external environment. So does
the organisation’s goals to shift with the market trends. But the business functions and
internal coordination within the company are often downplayed and don’t reflect the
shifting goals in the organisation. Employees could be assessed by outdated, overdue
or irrelevant terms in their KPI, which obstructs them to achieve the stated objectives
in their career.
Human Resource Managers do not treat performance appraisal as some form of an
annual routine. They understand that, if the employers do not give proper feedback to
their employees, this will potentially affect employees’ productivity and the company’s
growth in the long term.
Upon consolidating these appraisals at the end of financial years, the implementation
and administrative changes will mean more work for the HR people.
LEADERSHIP DEVELOPMENT

Organisations have to adapt to their environments and prepare adequately for the
future. Driven by the direction of the business, companies need leaders to lead the rest
toward the specified goal.
In terms of leadership development, HR Managers will help to plan and execute
relevant training and managerial development programs to deepen the employees’
skills and knowledge, and to prepare them for the responsibilities in senior positions.
Most importantly, HR Managers have to ensure that these leadership programs provide
a valid blueprint for career progression. Otherwise, the regular occurrence of the
potential leaders leaving the company will never be mitigated.
But selecting these potential leaders is tough, in the face of many management
decisions and more HR work is needed.

WORKPLACE SECURITY

HR Managers will often take the first step in ensuring the company is protected against
personal security and access breaches. This could be a situation whereby the
company’s data is compromised or even a break-in.
Such breaches are potentially detrimental to the company because it can potentially
cause the company to incur huge losses. Security breaches make companies vulnerable
and less reliable. A security loophole in databases that resulted in some employees’ or
clients’ details being stolen has often led the people, especially the employees, to lose
confidence in their companies.
Hence, HR Managers face a growing pressure of deciding an appropriate course of
action, with demanding tasks, to protect their company’s image, securing databases and
their employees’ well-being.
WITH ALL THESE CHALLENGES, ARE THERE ANY ANSWERS OR
SOLUTIONS TO MANAGE THIS?

As an all-rounder biometric solutions provider, Intercorp often helps HR Managers

with tech solutions and eases their daily challenges, especially in handling employees’
administrative matters.
With a centralised digital management system, the Biometric Authentication
System provides an efficient system to track the attendance and accurate working hours
of the employees , accurately measure productivity , pay the correct salary to employees ,
while ensuring the highest level of security in your office premises.
Our latest ha has made controlled access more convenient and secure. This state-of-the-
art face recognition scanner seamlessly detects and stores over 6000 unique biometric
points on a face. The scanning is so in-depth that it is highly impossible to be tampered
with.
If you are looking for an efficient and effective method to solve these problems, you
are on the right track.
 Productivity Enhancements
MOTIVATION

• Job enrichment
• Promotions
• Coaching
• Feedback
• Rewards
Perf = f (A,M,E)

ENVIRONMENT

• Empowerment
• Teams
• Leader support
• Culture

ABILITY

• Recruitment
• Selection
• Training
• Development
Developing human capital
 Human capital

Human capital management (HCM) is a process that human resources (HR)

departments use to attract talent, support employees and encourage them to reach
their full potential. Human capital management can help a company improve
employee performance and increase retention. Understanding what this area of HR is
and how to improve it could help you optimize your people operations and develop
an effective workforce.In this article, we discuss what human capital management is,
list its benefits and review the functions it serves, plus we describe HCM software
and explain how to improve human capital management practices in the workplace

What is human capital management?

Human capital management (HCM) is a practice that organizations use to attract,
recruit, train, develop and retain the best employees to achieve short- and long-term
objectives. The system allows companies to invest in their employees to allow them to
contribute at the highest level to the achievement of business goals. HCM views
employees as valuable resources and understands the importance of investing in them
to help them fulfill their potential.Organizations that depend on employees to achieve
most of their objectives allocate resources to grow and develop the core skills and
competencies necessary for their staff to deliver results. Human capital management
helps them to identify gaps in their capabilities and focus recruitment efforts toward
meeting those needs

This can provide more job fulfillment for employees because they get to
work in positions that allow them to use their strengths. For the
organization, human capital management can create a loyal workforce
that helps it accomplish its goals
What does human capital management involve?
HCM focuses on adding value to an organization's people resources so they can
deliver the best results. It covers human resources functions, compensation,
performance and other key areas vital to the tactical and strategic vision and mission
of a company. Human capital management provides a process for optimizing the
performance and efficiency of a company's staff. It also provides an overall strategy
to guide efforts like:
 Talent attraction
 Recruitment
 Onboarding
 Employee training and development
 Performance appraisal
This system creates an environment that allows individual employees to excel by
identifying each person's skills and competencies and matches employees with a
position that allows them to maximize their potential. This allows the company to
derive a high return on investment in staff training and improves employee job
satisfaction.Human capital management can create a strong organizational culture that
promotes employee development, honest feedback and commitment to company
goals. It can give employees more control over their careers and encourage them to
dedicate their skills and talent to the employer for the long term.Related: Human
Resource Management and Their Role in Your Job Search
Benefits of human capital management
The biggest benefit of HCM is that it allows organizations to get maximum value
from their employees. It simplifies human resource duties and offers several other
benefits. Further, human capital management can help businesses:
Develop sustainable HR processes
One key advantage of HCM is that it provides a process for managing a company's
people resources. It creates an overall system the human resource department can use
to deliver the best talents and train them to achieve
 SCOPE OF HRM

The scope of HRM includes several aspects. Some of them are:

1. Human Resource Planning

This is a step through which the human resource department identifies the needs of a
company. HR planning can include identifying departments that are understaffed as well as
those that are overstaffed.

2. Job Analysis Design

Job analysis involves identifying what is required to do a particular job. This includes
identifying and outlining the skills needed to do that job, the nature of the job, and what other
responsibilities will come with that job. This helps in writing job descriptions for different
job roles.
3. Recruitment and Selection
After the job analysis is done and the job requirements are made, the process of recruitment
starts. The hiring experts first post a job online to attract quality candidates. Once there is a
certain number of candidates, the selection is made based on the qualifications and skill sets.

4. Induction and Orientation

Once the candidate is selected, an induction or orientation session is conducted. This includes
introducing them to the company’s work culture and the team they will be working with. To
make the candidate feel at ease, the HR staff strives to perform this in a casual setting.

5. Training and Development

Once the new employee joins, training sessions are conducted to train them according to the
needs of the company. Existing employees can also be made part of these training sessions
from time to time.

6. Performance Appraisal
After the candidate has spent a certain time on the job, a performance appraisal is conducted
to evaluate their performance. Based on these appraisals, salaries are updated and further
training sessions are conducted.

7. Remuneration
Remuneration helps in boosting employee morale and promoting a positive work
environment. The employees who perform well are rewarded with incentives and other
benefits.
8. Motivation, Welfare, and Safety
To retain employees and promote a healthy work culture, an organization needs to ensure its
employees stay motivated. This motivation can be in the form of monetary benefits,
promotions, rewards, or recognition.

HRM also encompasses the welfare of employees, which includes providing medical aid,
transportation facilities, housing facilities, daycare centers for the employees’ children, etc.
Further, safety regulations, regular audits, risk assessment, and implementation of corrective
measures promote the safety and well-being of the employees.

9. Industrial Relations
Organizations have to follow industrial compliances as specified by the competent
authorities. The HR department helps the company and its employees adhere to these
compliances, labor laws, and safety regulations to avoid legal issues or fines and stay
productive in the long run.

10. Employee Grievance

The scope of human resource management encompasses employee grievance redressal. They
take regular employee feedback to understand any difficulties these employees might be
facing and make the work conditions better. Confidentiality is preferred in this process to
maintain trust with the employees. It helps them feel secure in sharing their concerns about
the workplace, team, or tasks.
7. Summary
• Human Resource Management is the management function that helps the managers to plan,
re- cruit, select, train, develop, remu- nerate and maintain members for an organization.
Maintaining good human resources is the manager's responsibility. Providing human
satisfaction from work output and relationship is a manager's obligation
• The scope of HRM is very large. All major activities in the working life of a worker i.e.
from the time of his or her entry until he or she leaves the organisation comes under the