Unit-1

Meaning:
HRM can be defined as a process of procuring, developing and managing competent human
resources in the organization.

• It is concerned with people at work

• Managing the people at work
HRM is the process of effective management of people in an organization.
In other words HRM is an art of managing people at work in such a manner that they give best
to the organization.

Features/Nature/ Characteristics of HRM

1. People Oriented
2. Comprehensive Function
3. Individual Oriented
4. Continuous Function
5. Interdisciplinary and fast changing
6. Pervasive Function
7. Challenging Function
8. Development Oriented
9. An integrated concept

1. People Oriented:
HRM is about people at work both as individuals and a group in attaining goals. It tries to help
employees to develop their potential fully. It comprises people-related functions like hiring,
training and development, performance appraisal, working environment, etc.
2. Comprehensive Function:
Human resource management covers all levels and categories of employees. It applies to
workers, supervisors, officers, managers and other types of personnel. It covers both organized

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and unorganized employees. It applies to the employees in all types of organisations in the
world.
3. Individual Oriented:
Under human resource management, every employee is considered as an individual so as to
provide services and programmes to facilitate employee satisfaction and growth. In other words,
it is concerned with the development of human resources, i.e., knowledge, capability, skill,
potentialities and attaining and achieving employee goals.
4. Continuous Function:
Human resource management is a continuous and never ending process. It is a process as there
are number of functions to be performed in a series, beginning with human resource planning to
recruitment to selection, to training to performance appraisal.
5. Interdisciplinary and fast changing
It is multi- disciplinary activity utilizing knowledge and inputs from psychology, sociology,
economics, etc. It is changing itself in accordance with the changing environment. It has
travelled from exploitation of workers to treating them as equal partners in the task.
6. Pervasive Function:
Human resource management is the central sub-function of an organization and it permeates all
types of functional management viz., production management, marketing management and
financial management.
7. Challenging Function:
Managing of human resources is a challenging job due to the dynamic nature of people. Human
resource management aims at securing unreserved co-operation from all employees in order to
attain pre-determined goals.
8. Development Oriented:
Human resource management is concerned with developing the potential of employees, so that
they derive maximum satisfaction from their work and give their best efforts to the organisation.
9. An integrated concept:
HRM in its scope includes Personnel aspect, Welfare aspect and Industrial relations aspect in
itself. It is also integrated as it concern with not only acquisition, but also development,
utilization, and maintenance.

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 Scope of Human Resource Management
The scope of Human Resource Management is extremely wide, However, for the sake of
convenience and developing an understanding of the subject, it is elaborated as follows.

1. Human Resource Planning

Human Resource Planning refers to a process by which the company try to find the number of
vacancy arises & place the right people in an organization . It also determines about the number
of staff required with the necessary qualification and experience.
2. Job analysis design
Another important area of Human Resource Management is job analysis. Job analysis gives
detailed information about the job description and employee specification in the company.
3 Recruitment and selection
Based on information collected from job analysis the company prepares advertisements and
publishes them in the newspapers, Employment sites etc. This is recruitment. A number of
applications are gathered after the advertisement is published, interviews are conducted and the
right employee is selected for the right post and right time thus recruitment and selection are yet
another important area of Human Resource Management.
4. Orientation and induction
Once the employees have been selected an induction or orientation program is conducted. The
employees are informed about companies background, products, different subsidiaries
organizational culture and values and work ethics and introduce to the new employee to other
employees.

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5. Training and development
Every employee goes into a training program which helps him to put up a better performance on
the job. The 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.
6. Performance appraisal
Once the employee has put on the job performance appraisal is conducted that is the Human
Resource department checks the performance of the employee. This appraisal will be helpful for
future promotions, incentives, increments in salary etc.
7. 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.
8. 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 motivating &
encourage the employee. Apart from this certain health and safety regulations have to be
followed for the benefits of the employees.
9. Industrial relations
Another important area of Human Resource Management is maintaining co-ordinal relations
with the union members, with employer-employee, employee- employee. This will help the
organization to coordinate with one another for smooth working.

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 1. Formulation of HR policies:
For the proper formulation of human resource policies knowledge and efficiency on human
resource management required.
2. Implementation of HR Policies:
Not only formulation rather an implementation of HR policies signifies the importance of HR
management in an industrial organization.
3. Review of employee needs:
Human resource management suggests proper action by reviewing employee need. And it
increases efficiency of an organization.
4. Development of social welfare:
If human resource management (HRM) is welfare oriented of employees, some development of
social welfare may take place.
5. Utilization of Human Resources:
HRM can show it’s important by proper utilization of human resources after getting everything
done by employees.
6. Development of Labor-Management Relations:
Good labor-management relation is essential for the peaceful working environment. Human
resources management can ensure it.

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 7. Overall development of organization:
Human Resources management can play a significant role in achieving productivity and
profitability target. Thus it can help the overall development of the organization.

Objectives of HRM
• To help the organization to reach its goals.

• To ensure effective utilization and maximum development of human resources.

• To ensure respect for human beings.

• To identify and satisfy the needs of individuals.

• To ensure reconciliation of individual goals with those of the organization.

• To achieve and maintain high morale among employees.

• To provide the organization with well-trained and well-motivated employees.

• To increase to the fullest the employee's job satisfaction and self-actualization.

• To develop and maintain a quality of work life.

• To enhance employee's capabilities to perform the present job.

• To be ethically and socially responsive to the needs of the society

HRM must ensure that organizations manage human resources in an ethical and socially
responsible manner through ensuring compliance with legal and ethical standards.
• To inculcate the sense of team spirit, team work and inter-team collaboration.
The main objectives are categorized into 4. They are given below with their supporting functions
1. Societal objectives
2. Organizational Objectives
3. Functional Objectives
4. Personal Objectives
1..Organisational Objectives:
HRM is a means to achieve efficiency and effectiveness. It serves other functional areas, so as to
help them to attain efficiency in their operations and attainment of goals to attain efficiency.
Acquiring right man for the right job at right time in right quantity, developing through right
kind of training, utilizing the selected workforce, and maintaining the workforce are the

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organizational objectives of HRM. Succession planning is an important issue to be taken up as a
contemporary organizational objective.

2. Functional Objectives:
HRM performs so many functions for other departments. However, it must see that the
facilitation should not cost more than the benefit rendered.
3. Personal Objectives:
In today’s world there is shortage of requisite talent. Employees are encouraged by competitive
firms to change the jobs. HRM has the responsibility to acquire, develop, utilize, and maintain
employees.
This would be possible only when the HRM helps employees to achieve their personal goals to
get their commitment. Creating work-life balance for the employees is a personal objective.
4. Societal Objectives:
HRM must see that the legal, ethical, and social environmental issues are properly attended to.
Equal opportunity and equal pay for equal work are the legal issues not to be violated. To take
care of farmers (whose land has been acquired for the factory) and tribal’s (who are displaced by
industries and mining companies) are the ethical issues.
To help the society through generating employment opportunity, creating schools and
dispensaries, helping women empowerment are the social responsibility issues.

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 Functions of HRM

(i) Managerial Functions:

The managerial functions are mainly concerned with planning, organizing, directing and
controlling the various activities of personnel management.
These functions are explained below:
(a) Planning:
Planning is deciding in advance what to do; how to do; where to do; and who is to do it. For
personnel manager, planning means the determination in advance of personnel programme.
Planning is concerned about present manpower positions, what number and kind of people are
required for the organization.
(b) Organization:
After the establishment of organizational goals and objectives, human resource manager must
design and develop organization structure to carry out the various operations. Organization

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involves identification and grouping the activities to be performed and dividing them among the
individuals and creating authority and responsibility relationships among them.
(c) Directing:
The direction function of the personnel manager is meant to motivate and guide the people to
achieve organization goals. The employees can be motivated through salary administration,
career planning, provision of health and safety requirements etc.
(d) Controlling:
Controlling function is concerned with regulation of activities in accordance with the personnel
plans. It includes checking, verifying and comparing actual with the plans, identifying deviations
if any and correcting them. “POSDCORB” – Planning, Organizing, Staffing, Directing,
Coordinating, Reporting & Budgeting.
(ii) Operative Functions:
Operative functions are those functions which are usually delegated to the human resource
department as these require specialized skills and knowledge in their performance. All these
operative functions are interacted by managerial functions. Further these functions are to be
performed in conjunction with management functions.
Some of the operative functions of human resource management are:
(a) Employment:
It is the first operative function of HRM. Employment is concerned with securing and employing
the people possessing required kind and level of human resources necessary to achieve the
organizational objectives. It covers the functions such as job analysis, human resources
planning, recruitment, selection, placement and induction.
(i) Job Analysis: It is the process of study and collection of information relating to the
operations and responsibilities of a specific job.
(ii) Human Resources Planning: Human resource planning involves forecasting
the human resource requirements of an organization and the future supply of human
resources. It is a process for determination and assuring that the organization will have
an adequate number of qualified persons.
(iii) Recruitment: It is the process of seeking and attracting prospective candidates
against a vacancy in an organization.

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 (iv) Selection: Selection is the process of identifying and establishing the credentials
of a candidate for a job to ensure success.
(v) Induction and Orientation: Induction and orientation are the techniques by
which a new employee introduced to the practices, policies, purposes and people etc., of the
organization.
(b) Training and Development:
This process aims to train and develop employees to improve and update their knowledge and
skills, so as to help them perform their jobs better.
(i) Performance Appraisal: It is the process of evaluating the performance of an
employee on the job and developing a plan for improvement.
(ii) Training: Training is the systematic development of the knowledge, skills and
attitudes required to perform a job.
(iii) Development: It is the concept of developing the employees in an organization to
meet future changes and challenges.
(iv) Career Planning and Development: It refers to identifying one’s career goals
and formulating plans of reaching them. It attempts to harmonize an individual’s career
aspiration with organizational needs.
(c) Compensation:
Compensation function is concerned with securing adequate and equitable remuneration to
persons for their contribution. Fixation of compensation or wage rates for different categories of
employees is an important task of management. Function related to job evaluation, wage and
salary administration, incentives, bonus and fringe benefits falls under this category.
Generally, employees offer their service for three types of rewards:
a. Pay. b. Incentives. c. Benefits.
(i) Job Evaluation: It is the systematic determination of the value of each job in
relation to other jobs in the organization.
(ii) Wage and Salary Administration: The process of formulating and operating a
suitable wage and salary program is known as wage and salary administration.
(iii) Incentives: Incentives are the rewards an employee earns in addition to regular
salary based on his performance or of the collective performance.

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 (iv) Bonus: Bonus is primarily a share in the surpluses and is often directly related to
the organization performance.
(v) Fringe Benefits:
Fringe benefits are monetary and non-monetary benefits including disablement benefits,
housing facilities, canteen facilities, conveyance facilities, educational facilities,
recreational facilities, medical and welfare facilities, post-retirement benefits, etc.
(d) Integration:
The basic objective of human resource management is to secure maximum performance from
the employees in order to accomplish the objectives of an organization. This is possible through
better integration between the organization and its employees. The integration between the two
can be achieved through three things-motivation, leadership and communication.
(e) Maintenance:
Maintenance function is basically concerned with the working conditions and welfare facilities
provided to the employees. Morale and motivation of the employees is greatly influenced by
these conditions. Working conditions include measures taken for health, safety and comfort of
the employees. Welfare facilities include provisions of rest rooms, cafeteria, safe drinking water,
education for children of employees etc.
(f) Industrial Relations:
It is the responsibility of human resource manager to maintain industrial peace in the
organization. This can be done through collective bargaining, joint consultation and settlement
of disputes, whenever they arise.
(g) Personnel Records:
Another function of human resource manager is to maintain the records of the employees. This
is helpful in taking decisions relating to transfers and promotions, performance appraisal etc.
These also help in identifying the weaknesses in the employees and the areas in which they need
training.
EVOLUTION & DEVELOPMENT OF HRM

The evolution of Human Resource Management is classified into 3 categories:

• Period before industrial revolution

• Period of industrial revolution (1750 to 1850)
• Post Industrial revolution

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1. Period before industrial revolution

• The society was primarily an agriculture economy with limited production.

• Number of specialized crafts was limited.
• Usually carried out within a village.
• Communication channel were limited.
2. Period of industrial revolution (1750 to 1850)
Industrial revolution marked the conversion of economy from agriculture based to industry
based.

• Modernization and increased means of communication

• Department was set up to look into workers’ wages, welfare and other related issues.
This led to emergence of personnel management with the major task as,
– Worker’s wages and salaries ,Worker’s record maintenance, Worker’s housing facilities
3. Post Industrial revolution –
The term Human resource Management saw a major evolution after 1850. Various studies were
released and many experiments were conducted during this period which gave HRM altogether
a new meaning and importance.

• Frederick W. Taylor gave principles of scientific management (1857 o 1911)

• Hawthorne studies, conducted by Elton Mayo (1927 to 1940)

• Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of
needs ( 1954)

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 EVOLUTION OF HRM
1. Industrial Revolution Era
2. Trade Unionism Era
3. Social Responsibility Era
4. Scientific Management Era
5. Human Relations Era
6. Behavioral Science Era
7. System Approach Era
8. Contingency Approach Era

1. Industrial Revolution Era

The seed of HRM were sown during Industrial Revolution 1850 in USA. The wind reached to
India in beginning of 20th Century. During this period
• Machines were bought in
• Technology made rapid progress.
• Workers were treated like machine tools
• Employers were keen to meet production targets rather than satisfy workers.
• Government did very little to protect the interests of workers.
2. Trade Unionism Era
This was the period when state intervention to protect the worker’s interest was felt necessary.
During this period,
• Workers started to form their associations.
• Trade Union Act, 1926 was passed in India.
• The basic philosophy was to safeguard worker’s interest and to sort out their problems
like Child labour, Long hours of work, Poor working conditions.
3. Social Responsibility Era
Robert Owen, a British industrialist is considered to be the first to adopt humanistic and
paternalistic approach. He viewed that the social and economic environment influences the
physical, mental and psychological development of workers. His philosophy was that owner is
like a father and worker is like a child. He practiced the following:-Provision for reduced
working hours ,Housing facilities ,Education of workers and their children

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4. Scientific Management Era
This concept was introduced by Fredrick.W.Taylor in USA early in 20th century. He developed
following four principles:-
• Use of scientific methods in setting work standards.
• Scientific selection and placement of workers best suited for the tasks.
He developed following techniques for the same:- Time study , Motion study ,Standardization of
tools, equipment’s and machinery and working conditions , incentive wage plan with differential
piece rate of wages.
5. Human Relations Era
This particular period focused on the feelings, attitude and needs of the workers as human
beings. A psychologist suggested the use of psychology in selection, placement, testing and
training the employees in an organisation.
Elton Mayo conducted a series of experiments at Hawthorne plant of western electric company
in USA. Main findings were:-
• Physical environment should be good
• Favourable attitudes of workers and work team towards their work
• Fulfillment of worker’s social and psychological needs
• Workers can be motivated through job security
6. Behavioral Science Era
It was concerned with social and psychological aspects of human behaviour. Some of important
elements were:- Individual behaviour is linked with group behaviour , Informal leadership
rather than formal leadership ,Motivation by self control and self development.

7. Systems approach era:

• Technical subsystem: formal relationships.
• Social subsystem : informal group relations
• Power subsystem : exercise of power
8. Contingency approach era:-
According to contingency, the best way to manage varies with situation. There may not be the
universal way of managing all the situations. It is imperative for managers to analyze different
situations and then use the best suitable in that particular situation.

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 E-HRM
Definition:
E-HRM is the integration of all HR systems and activities using the web based technologies.
Simply, when HR uses the Internet or related technologies to support their activities,
procedures, processes, then it becomes an e-HRM.
Types of e-HRM

Speaking about the types, there are three kinds of e-HRM:

• Operational e-HRM: It is concerned with the operational functions of HR such as

payroll, employee personal data, etc.

• Relational e-HRM: It is concerned with the supporting business processes Viz.

Training, recruitment, selection, etc.

• Transformational e-HRM: It is concerned with the HR strategies and its activities

such as knowledge management, strategic orientation.
Computer Applications in Human Resource Management

• E HR Planning
Computer programs are developed and used extensively for the purpose of planning human
resource requirements based on the data and information. These programs indicate the number
of employees required at each level for each category of the jobs. The internet connecting with
other organisations identifies the suitable people from other organizations for the purpose of
outsourcing.

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 • E HR Planning
• E-Recruitment
• E-Selection
• E-Performance Management
• E-Training & Development
• E-Compensation
• E-Job Design
• E-Grievance Redressal
• E-HR Records
• E-HR Information
• E-HR Audit

• E-Recruitment
Also known as online Recruiting, is being widely used by companies these days. Through e-
Recruitment, companies usually hire the candidates using the internet as a medium.The
common practice of facilitating the online recruitment is by uploading the recruitment
information on the company’s official website or hiring the online recruitment websites to serve
the purpose. Monster.com, Naukri.com, Timesjob.com are some of the well renowned online
recruitment websites.
• E-Selection
The HR department using the online selection process must ensure that each step complies
with the procedural requirements viz. Project steps, vendor selection, assessment steps,
feedback to the candidates, etc. The purpose of E-selection is to utilize the maximum human
capital at a reduced cost and in less time.

• E-Performance Management
Many companies make use of web-based technology to evaluate the performance of an
individual. This can be done either using the computer monitoring tool, wherein the complete
working of an individual can be recorded, or through writing the reviews and generating the
feedback on the employee’s performance using the web portal.

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 • E-Training & Development
It means using the internet or organization’s intranet to facilitate the training and development
programmes for the workforce. Getting the online modules of training, a large number of
employees can be covered irrespective of their locations.

• E-Compensation
An organization using the compensation management online enables it to gather, store,
analyze, and distribute the compensation data or information to anyone at any time. Also, the
individual can access electronically distributed compensation software, analytic tools, from any
place in the world.

• E-Job Design
Many organizations started implementing the concept ‘dejobbing’ in their workplace by introduc
ing alternative workschedules, flexi time, broad job banding, employee empowerment and Multi
-skilling.

• E-Grievance Redressal
Employees send their grievance via e-mail to the superior concerned who in turn solves the
problems / redress the grievances and communicates the same to the employee. This process
reduces the time in the process and avoids face to face interaction.

• E-HR Records
Human resource records are created maintained and updated with the help of computers easily
and at a fast rate. Human resource records, either partially and fully, can be shifted or
transferred from the branch/regional office to head office or from one department to
another department through intranet / internet.

• E-HR Information
Human resource information is generated, maintained, processed and transmitted to the
appropriate places or clients with the help of software with high speed and accuracy.

• E-HR Audit
The standard human resource practices or the desired human resource practices are fed into the
computer. The data and information regarding the actual practices are also fed into the
computer; the software automatically completes the human resource audit and produces the
audit report. The human resource manager then can modify the report by deleting or adding any
comments

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 HRIS ( Human Resource Information System)
A Human Resources Information System (HRIS) is a computerized system that is used by HR
managers to store and retrieve the information about employees of an organization.
Human Resource Information System (HRIS) is a systematic way of storing data and
information about the employees of an organization.
Types of Information stored in HRIS
Storing
Same of the applications which could be computerized and the nature and type of information
that can be recorded and stored are described below.
1. Personnel Administration : It will contain information about each employee, such
as name, address, date of birth, date of joining the organization, and information about next of
kin and family.
2. Salary Particulars: Salary review procedures are an important function of the
human resources department. Details of present salary, last increase and the proposed increase
will all be compiled and stored.
3. Leave / Absence Recording: An important requirement of HRIS is providing
comprehensive and accurate method of controlling leave and absences. A complete leave history
for each employee, days of absence, delay in reporting is all stored. Eligibility of leave, medical,
maternity leave under credit, leave encashment, eligibility is all stored.
4. Skill Inventory: HRIS is used to record acquired skills and monitor a skill database
at both employee and organizational level. This will give the necessary information to identify
employees with necessary skills for certain positions or job function.
5. Medical History: The HRIS may be used to record occupational health data needed for
industrial safety purposes, accident monitoring, exposure to potentially hazardous materials,
and so on. The records of periodical medical examinations may also be maintained.
6. Accident Monitoring : The system should record the details of the accidents for the
injured employees. This could highlight accident prone areas or accident prone times within the
organization.
7. Performance Appraisal: The system should record individual employee’s performance
appraisal data such as the due date of the appraisal, scores for each performance criteria,

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potential for promotion, and other information to form a comprehensive overview of each
employee.
8. Training and Development: The system should record the details of training imparted,
training evaluation development opportunities given and availed. The type of training needed
may be identified and stored.
9. HRP: The HRP plan, extensions, plan executed, to be executed strength and weaknesses of
the plan, plan evaluation etc, may be recorded.
10. Recruitment: Recruitment pool, screening, preliminary selection etc, may be stored for
HRIS.
11. Career Planning: Placement, training, selected candidates for career planning;
supervisor’s view can be stored.
12. Collective Bargaining: Wage, salary administration, bonus, negotiations, trade Unions
views, most welcome and least resistant measures may also be recorded.

Steps in Implementing HRIS

Following are the steps in implementing HRIS.
1. Inception of Idea
Idea should originate somewhere. The originator should make a preliminary report justifying
the need for HRIS and illustrate how it could assist management in making certain decisions.
2. Feasibility Study
The cost-benefit analysis of HRIS in terms of labour and material as also intangible savings,
such as increased accuracy and fewer errors should be highlighted.
3. Selection of Project Team
Once the feasibility study has been accepted and the resources accepted, a project team should
be selected. The project team should consist of a human resource representative, who is
knowledgeable about the organization’s human resource functions and activities.
4. Defining the Requirements
A statement of requirements specifies in detail exactly what the system needs to do. A larger part
of the statement of requirements normally deals with the details of the reports that will be
produced. The objective is to make sure that the mission of an HRIS truly matches with the
management’s needs of an HRIS.
5. Vendor Analysis

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The purpose of this step is to determine what hardware and software are available that will best
meet the organization’s needs at the least price. This is a difficult task. This involves discussions
with various vendors on how their HRIS will meet the organization’s needs.
6. Contract Negotiations
The contract stipulating the price, delivery, vendor’s responsibilities with regards to installation,
service maintenance, training to organization’s employees etc., may be negotiated.
7. Training
Project team members may first be trained to use the system and then they could train all users
from other departments.
8. Tailoring the System
It involves making changes to the system to best fit to the organizational needs.
9. Data Collection
Data is collected and fed into the system.
10. Testing the System
The object of verifying is to test the output of HRIS and make sure that it is doing what it
supposed to do. All reports to be critically analysed.
11. Starting Up
Even after testing, some additional errors may crop up. These errors surface during start up.
These are to be sorted out.
12. Parallel Running
Just for the security, the new system is to be run in parallel with the old till the new system
stabilizes and people gain confidence in its operation.
13. Maintenance
Proper maintenance of the system and maintenance of secrecy of records are to be guarded. It
normally takes several months for HR people to get acquainted with HRIS.
14. Audit
After a year or so, the project team should audit the performance of HRIS and if required,
corrective actions should be taken. Large organizations generally install computerized HRIS
system because it enables them to collect process and use large amount of data. It links the
various subsystems of HRM.

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 Human factors (also known as Ergonomics/Human Engineering)
Meaning:

Human factors (ergonomics) is the study of how humans behave physically and psychologically
in relation to particular environments, products, or services .

Ergonomics : This means convenient work environment along with comfort.

Comfort : Comfort means Best fit with human factor, materials & equipment.
Ergonomics is defined as the study of how people work in their environment. Ergonomics is
sometimes known as human factors engineering.

Human characteristics, such as height, weight, and proportions are considered, as well as
information about human hearing, sight, temperature preferences, and so on.

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Computers and related products, such as computer desks and chairs, are frequently the focus of
ergonomic design. A great number of people use these products for extended periods of time -
such as the typical work day. If these products are poorly designed or improperly adjusted for
human use, the person using them may suffer unnecessary fatigue, stress, and even injury.
Ergonomics is defined as the study of how people work in their environment.

Importance of Human factor: Advantages

It refers to matching the work environment to the employee’s body movements & conveniences.
The purpose of ergonomics is to save human resources, protect employee’s health & maximize
productivity.
• Reduction in employee health problem like back strain, joint pain & lung diseases.
• Increase in productivity due to efficient utilization of HR.
• Reduce in absenteeism
• Reduction in error rates, break down & spoilage
• Saving on time & HR.
• More open communication, social interaction & open consultations among employees
due to open space concept.
• Status reduction increase in upward communication
• Improve levels of employees job satisfaction

Dr.A.Padmapriya M.B.A., M.A., M.Phil, PhD.,UGC-NET/CCET/MBA Page 22

 Roles and Responsibilities HR Manager

• Counsellor Role
• Administrative Role
• The Advisory Role
• Representative Role
• Decision-making Role
• Mediator Role
• Leadership Role
• Welfare Role
• Research Role
• The Link between the Employees and the Management

• Counsellor
Counseling is one of the main functions of personnel manager. As a counsellor, personnel manager
discusses the problems with employees related to career, health, family, finance, social life and try
to solve their problems and offer advice on how to overcome them.
• Administrative Role
He plays as a Policy maker. Initiating policies is another main function of personnel manager.
Initiating policies and formulating them are two important tasks of a personnel manager. He
assists the senior management in creating policies pertaining to personnel management, salary
administration, welfare activities, transfers, working environment, records, and appraisals.
• The Advisory Role
In any organization, on a daily basis, line managers face a wide range of problems pertaining to
personnel management. This is where a personnel manager steps in and offers advice on such
matters since he is familiar with the laws and practices that surround human resources.
• Representative Role
The personnel manager is also responsible to represent the company and communicate
management policies which affect the people in the organization. This role is best-suited to him
because he has a better overall picture of the company’s operations.
• Decision-making Role
He plays an important part in decision-making on human resources-related issues. He also
formulates and designs policies and programs of personnel management.

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 • Mediator Role
In case of a conflict between employees or groups of employees, a superior and a subordinate, or
even the management and employees, the personnel manager plays the role of a mediator. His role
is to ensure peace and harmony in the organization.
• Leadership Role
He offers leadership and guidance to employees. Further, a personnel manager ensures effective
communication in the organization and motivates employees to work towards achieving the
organization’s objectives.
• Welfare Role
In most organizations, the personnel manager also acts as the welfare officer. Therefore, he ensures
facilities and services like canteen, transport, hospitalization, and other employee welfare services
are available to the workers.
• Research Role
He maintains a record of all employees in the organization. He also researches various personnel
areas like absenteeism, alcoholism, labor turnover, etc. Further, post-analysis, he recommends apt
measures to help eradicate them to the senior management.
• The Link between the Employees and the Management
Apart from personnel management, the personnel manager tries to maintain good industrial
relation within the organization. So, he helps the trade unions in understanding the different
policies of the organization. He also communicates the views and concerns of the union leaders to
the senior management.The responsibilities & roles can be viewed by the following diagram,

Dr.A.Padmapriya M.B.A., M.A., M.Phil, PhD.,UGC-NET/CCET/MBA Page 24

 Personnel (HR) Policies

Personnel policy is a general statement guides for decision making relating to personnel
functions.

• It is a plan of action.
• It is a written statement.
Personnel policies are the rules that govern how to deal with a personnel related situation.
Personnel Policies are guidelines that an organization creates to manage its workers.

Types of policies
1. Originated Policies
-These are framed at the commencement of the organization
- Eg. Employee welfare in more important than profit.
2. Appealed Policies
-Based on the experience & legal proceedings the policies are farmed
-They are framed on the request to management & trade unions are called appealed
policies.
-Eg. Before 1990’s there is no policy to use mobile phones in the institution (Edu).
3. Imposed Polices
-Framed by the pressure from external environment may be the Government (or) society
either.
-Eg. Policies from the government to be amended in company pollution control.
4. General Policies
-Aimed at the growth & development of the organization.
-Eg. Advice from Experts at various fields.
5. Specific Policies :
- Formed for particular reason
- May be continued (or) dropped later.
- Ad -hoc policy
6. Written (or) implied policy :
- Policies that all formed & communicated to all are called written policies.
-Eg. All the above policies in written form.
Implied policy:
-They are not communicated but they are existing in the organization

Dr.A.Padmapriya M.B.A., M.A., M.Phil, PhD.,UGC-NET/CCET/MBA Page 25

Advantages of personnel Policies :

Delegation of authority (Power to do anything by the reference of the policy.

Uniformity (same policies & procedures)

Better control (able to avoid conflicts)

Standards of efficiency (No fluctuations & will be standard)

Confidence among the workers (Guide the employees- free of working)

Speedy decisions (Policies Guide)

Coordination with all departments.
Characteristics of Sound Personnel Policies:
To be an effective policy framed the following points to be observed.
 Policies should be related to objectives of the company
 It is easy to understand
 It should be Precise
 Policies should be Stable as well as flexible
 Policies are to be Based on facts (Reality needed)
 Appropriate number of policies
 Personnel Policies must be Just fair & equitable grounds.
 Reasonable (Purpose must exist)
 Policies can be Reviewed (can be updated)
Coverage of Personal Policies:
 Social Responsibility
 Equity (Equality)
 Consideration (considering individual worker Prospects, Seniority & self respect)
 Quality of work life
 Employment policies
 Promotion policies
 Development policies -Relating to training, reward & award system, time span of
training programme etc.
 Relations policies -Regarding motivation, communication, morale (loyalty)
 Leadership style, grievances procedure, disciplinary procedure, employee counseling etc.

Dr.A.Padmapriya M.B.A., M.A., M.Phil, PhD.,UGC-NET/CCET/MBA Page 26

 Challenges & Issues in Human Resource Management

The following are the certain issues and challenges faced by the HR Managers.

1. Advancement in technology
2. Globalization
3. Workforce diversity
4. Rapid Change
5. Recruiting new staff
6. Retention
7. Training & Development
8. Productivity
9. Health & Safety
10. Payroll
11. Discipline
12. Management of information

1. Advancement in Technology
The technology is also growing with great speed especially in the field of computer &
telecommunication. New methods are emerging that quickly dominates the older ones.
Technological changes must be taken into consideration by any kind of company. So there
comes a burden on the HR department to constantly update the skills & expertise of their
employees.
2. Globalization
Globalization is a process by which a business firm or organization starts operating on an
international scale, creating international influence. Several issues raised related to unknown
language, laws, work ethics, attitudes, management approach, culture and tradition. The HR
department can play an important role in keeping the culture of the organization as global &
wider.
3. Workforce diversity
The composition of the workforce is getting diverse at present situation. Here diversity is not
only created by age, gender, educational background and religion but also by the nature,

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personality and background of workers. The HR manager should adopt policies that can make
possible the diverse work force of employees.
4. Rapid Change
The world is changing at a faster rate because change is constant from several centuries. So the
management of the organizations should be quickly adaptive to the changing requirement of the
environment. The human resource management of an organization plays a basic role in
response to the environmental change.
5. Recruiting new staff
Companies sometimes need to recruit new talent for various reasons such as an increase in
project scope, operations. While recruiting, HRM faces major challenges i.e. selecting the best
candidate and making the hired candidate familiar with the environment and culture.
6. Retention
Hiring employees is not only the challenge that HRM faces; retaining them is also one.
Retention of employees is essential to minimize employee turnover rate. This is a major
challenge for HRM because of following reasons:
7. Training & Development
Skilled workers are the key to the smooth functioning of the organization. Therefore, HRM
should manage on-site (within the workplace) as well as off-site (outside the workplace) job
training for employees. So decisions regarding effectiveness of training will be the challenging
task for HR Managers.
8. Productivity
Maximizing profit and minimizing cost is the essence of productivity. Higher the productivity
level, more successful will be the company. HRM should always focus on maintaining high
productivity level.
9. Health & Safety
It is one of the essential functions of HRM to collect its staff’s complete information, including
health information. It is necessary for employee’s personal safety. Maintaining health
information is also necessary to avoid the risk of legal complications. In lack of proper health
information about employees, various legal issues may arise when such insurance is claimed.
10. Payroll
Payroll is a written document which provides information about the company’s employees along
with the amount of remuneration to be paid.HRM has to conduct a number of tasks every day.

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In this process, HR manager might forget to pay its employees, if not then he can forget the
amount to be paid to the individual employee.
11. Discipline
Discipline is one of the important issues that HRM needs to handle at present days. Lack of
discipline causes various problems which ultimately affect the productivity of the company.For
an instance, when discipline is not maintained, employees neglect their responsibilities and
duties.
12. Management of information
Up-to-date information is essential for the operation of any company. Information may be
collected internally as well as externally. Once collected, all the information should be safely
maintained so that they would be readily available when needed in future.
Human Resource Accounting
Human Resource Accounting is, “The process of identifying and measuring data about human
resource & communicating this information to interested parties ” It involves measuring the
costs incurred by organizations to recruit, select, hire, train, and develop human assets.
Advantages of HRA
1. Provide Information for manpower planning
2. Information for making personnel policies
3. Utilization of human resources
4. Proper placements
5. Increases morale and motivation
6. Attracts best human resources
7. Designing training and development programs
8. Valuable information to investors
9Enable mgmt.to effectively monitor the use of HR
HR Audit
HR Audit refers to an examination & evaluation of policies, procedures & practices to determine
the effectiveness of HRM.
To assess the “effectiveness of HR functions of an organization.”
The HR Audit is the process of evaluating the performance of Human Resource Department
followed towards the accomplishment of organizational goals.
The HR Audit is conducted to identify the lapses, shortcomings, gaps in the implementation of
HR functions and suggesting the remedial actions, if any.

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 Benefits /Merits/Advantages of HR Audit
– It identifies the contributions of the HR department.
– It improves the professional image of HR department.
– It encourages greater responsibility and professionalism amongst members of HR
department.
– It classifies the HR department's duties and responsibilities.
– It stimulates uniformity of personnel policies and practice.
– It identifies critical personnel problems.
– It ensures timely compliance with legal requirements.
– It reduces human resource costs.
APPROACHES TO HR AUDIT
Following are the approaches that can be adopted by an auditor to evaluate the performance of
the HR department:
• Comparative:
In this approach, the auditor identifies any company usually the competitor’s company as a
model. Then the results of the organization are compared with that of the model company.
• Outside Authority:
The auditor uses the standard set as a benchmark by the outside consultant and then compares
the organization’s performance with that.

• Statistical:
Under this approach, the auditor develops the statistical measures of performance for the
existing organization’s information, such as turnover rates, absenteeism.
• Compliance:
Here the auditor checks the past actions of the company to ensure that those activities comply
with the legal requirements and is in line with the company’s policy and procedures.

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 • Management by Objective:
Under this approach, the auditors check the performance of HR personnel against the goals set
by the top management.
It is recommended to have an HR audit once in a year so that, the performance of the HR
department in terms of its recruitment and selection process, compensation plan, grading
system, layoff schemes and other HR functions can be checked. By doing so, it can be ensured
that Human resource practices are carried out at its best and is reducing the organization’s
liability as a whole.
JOB ANALYSIS
A job analysis is a process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job.

Difference between HRM & Personnel Management

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