UNIT - 2

Human Resources Management

Meaning and Defination

Introduction :
Human resource management is known by different names. Some authorities call it personnel
management or personnel administration. Others call it manpower management or staff management. In
fact, human resource management is more widely known as personnel management.

In the words of E.F.L. Breach, “Personnel management is that part of the management process which
is primarily concerned with the human constituents of an organisation.”

It is clear that human resource management is a specialised branch of management of an organisation

which is specifically concerned with the management of human resources in respect of their procurement,
training and development and motivation towards the attainment of the objectives of the organisation .
 
 Characteristics or features of human resource management

• (a) Human resource management is concerned with managing people at work.

• (b) Human resource management covers the functions of recruitment and selection (i.e. employment), training and
development.

• (c) Human resource management is inherent in all types of organisations.

• (d) Human resource management is concerned with the management of al types of personnel or persons. It covers
both blue-collared.

• (e) Human resources management is an integral part of general management.

• (f) Human resources management is the management of human resources.

• (g) Human resources management is not the responsibility of just one department or one person. It is a pervasive
function.
Characteristics or features of Human Resources Management

h) Human resource management is concerned with employees as individua’s as well as a group.

(i) Human resource management has human orientation.
(j) Human resources management aims at optimum (i.e., fullest) contribution from all the personnel in
the organisation.
(k) Human resource management is a science as well as an art.
(l) Human resource management is inter-disciplinary.
(m) Human resource management is similar to the nervous
(g) Human resources management is not the responsibility of just one department or one person. It is
pervasive function.
(h) Human resource management is concerned with employees as individua’s as well as a group.
(i) Human resource management has human orientation.
Objectives of Human Resource Management
The important enterprise or organisational objectives are :

• (ii) To establish and balance the demand for and supply of personnel.

• (iii) To maintain an organisational climate conducive to the personnel development of the

personnel.

• (iv) To establish cordial working relations at all levels in the organisation.

• (v) To create a sense of belongingness among the personnel.

• vi) To maintain a high morale by ensuring the development of highly effective work force.

• The important individual or personal objectives are ;

• (i) To ensure adequate compensation or remuneration for the personnel

• (ii) To assure job security to the personnel.

Important Individual or Personal Objectives

iii) To provide sufficient facilities to the personnel for training and development.
(iv) To ensure suitable work environment.

(v) To afford sufficient opportunities for promotion.

(vi) To avoid wastage of efforts of the personnel.

(vii) To ensure the treatment of personnel with dignity.

Important union objectives are:

• (i) To ensure adequate compensation or remuneration for the personnel.
• (ii) To assure job security to the personnel.
 Important union objectives
• (iii) To provide sufficient facilities to the personnel for training and development.

• (iv) To ensure suitable work environment.

• (v) To afford sufficient opportunities for promotion.

• (vi) To provide job satisfaction to the personnel.

• (vii) To ensure the treatment of personnel with dignity.

Important social objectives are :

• (i) To create maximum employment opportunities.
• (ii) To ensure maximisation of productivity.

• (iii) To avoid wastage of efforts of the personnel.

Important social objectives are :

• Iv) To use productive resources in the best possible way and to minimise wastes.

• (v) Promote healthy relations between the management and labour and ensure
industrial peace.
• (vi) To promote social welfare.

• The important union objectives are :

• (i) To accord recognition to representative labour unions.

• (ii) To give the labour unions a say in the formulation of policies connected with the
labour.
• (iii) To inculcate the spirit of self-discipline among the labour unions.

• iv) To secure the co-operation of the labour unions with the management.
Function of Human Resource Management
A. Managerial Function
1. Planning
Planning involves thinking in advance. It is the determination of strategies, programmes, policies,
procedures to accomplish organisational objectives. Planning is a difficult task which involves ability to
think, to predict, to analyse, and to come to decisions. In the context of personnel management, it
requires the determination of human resource needs.
• Planning would involve :

• (a) Determining the needs of persons :

• (b) Deciding the sources of procuring them:

• (c) Determining training needs of personnel:

• (d) Selecting motivators for getting good performance from employees.

• (e) Preparing HR inventory, job analysis, job description etc.

2. Organising.

Organisation is a process of allocating the task among its members for

achieving organisational objectives. This is done by designing the structure or
relationship among jobs, personnel and physical factors. For achieving enterprise
goals a number of plans, policies and programmes are decided upon.
Organisation is a channel for implementing them and achieving good results. The
assignment of tasks and fixing of responsibilities will be the function of personnel
management. It decides who should do what. Who is responsible to whom?.
These decision will help in smooth working of the organisation.
3.Directing.
It is the basic function of HRM. Directing means telling people to do a
particular work. It does not mean only issuing orders to employees but also
ensures that they perform as per the directions. The employees are also given
instructions for carrying out their task. The orders and instructions should be
clear and precise so that these are obeyed properly.
4. Co-ordinating.

Organisational objectives will be achieved only if group-activities in

the enterprise are co-ordinated effectively. There may be a problem of each
group or department trying to pursue its own goals without bothering about
overall objectives. A co-ordinated approach will help in achieving common
goals.
5. Controlling.
Controlling is the act of checking, regulating and verifying whether
everything occurs as per the standards set and plans adopted. The
performance of persons is regularly reviewed to find out whether it is going
according to the standards or not. In case, performance is low then steps are
taken to improve it in future. Controlling function involves reviewing
performance and taking corrective measures. Personnel research, progress
review and feedback information also forms a fact of controlling
2. Objective Functions :
• The important operative functions of human resource management are :
• (a) Procurement of personnel
• (b) Training and development of personnel.
• (c ) Compensation or remuneration of personnel.
• (d) Integration of personnel.
• (e) Maintenance of personnel.
Procurement of Personnel:
• Procurement of personnel is the first important operative function of human
resource management. Procurement of personnel means getting Involves
recruitment and selection. It is done on the basis of proper job description (i.e.
definition of the recruitment of each job) job specifications (specifications of
qualifications, experience etc) of the personnel to be appointed for the job.
(b) Training and Development :
Training and development of personnel is another important operative
function of human resource management. Training and development of personnel
means providing the necessary training to the personnel to enable them to improve
their skills and become eligible for higher positions.

(c) Compensation of Remuneration :

Granting of adequate compensation or remuneration to the personnel for
the work done by them is one of the operative functions of human resource
management. This function involves fixation of reasonable wage rates, and provision
of other monetary and non-monetary incentives to the personnel to enable the to
satisfy their physical, safety, psychological ego and self-actualisation needs.
(d) Integration :
Integration involves infusing among the employees a sense of belonging to the
enterprise and making the employee identify their own individual interests with the
interests of the enterprise. Integration can be brought about by providing adequate and
effective channels of communication, setting up a permanent machinery for quick and
satisfactory solution of all problems of the personnel and maintaining healthy human
relations at all levels.
(e) Maintenance :
Maintenance of personnel is one of the important functions of human resource
management. Maintenance means keeping the personnel committed to the enterprise.
Maintenance involves the provisions of suitable working conditions (i.e. proper health and
safety standards, provision of canteen, recreation facilities, group insurance, employee
associations and other benefits and services) and improving the morale of the employees
to have favourable attitude towards the organisation.
 RECRUITMENT
• Definition and Meaning of Recruitment :
Recruitment is the process of identifying the sources from where
the job seekers can be employed and stimulating them to apply for the
jobs in the organisation
According to Edwin B. Flippo, “Recruitment is the process of
searching for prospective employees and stimulating them to apply for
jobs in the organisation”.
In the words of Yoder, “Recruitment is a process to discover the
sources of manpower to meet the requirements of the staffing
manpower in adequate numbers to facilitate effective selection of an
efficient work force”.
 Sources of Recruitment

The sources of recruitment can be broadly classified into two categories viz,

1. Internal sources and

2. external sources. 
• Internal Sources.

• Internal sources of recruitment refer to recruitment of personnel from among the

existing personnel of the organisation instead of importing new blood. Internal sources
comprise mainly (a) Transfers and (b)Promotions.

Transfer refers to the shifting of a person from one job to another. It does not involve
any drastic change in the status, responsibility and the emoluments of the person.
However, before effecting the transfer of a person, the management must ensure that the
person to be transferred to the new job is capable of performing it.
Promotion

Promotion refers to the shifting of a person from a lower position to a higher

position. Promotion carries higher status, better facilities, greater responsibilities
and more emoluments.

Advantages of Internal Sources of Recruitment:

• (i) It creates a sense of security among the personnel.

• (ii) It builds loyalty among the personnel towards the organisation.

• (iii) It serves as a very effective device to motivate the personnel.

• (iv) It keeps the personnel happy and in good morale.

• (v) It reduces labour turnover .

• (vi) It contributes to better employer-employee relations.

Advantages of Internal Sources of Recruitment:

• (vii) The prospect of getting promotion inspires the personnel to

improve their knowledge and skills.
• (viii) The management has up-to-date information about the skills,
capacity, experience, etc, of the personnel.
• (ix) It is quite economical, as it does not involve costs by way of
advertisement, recruitment, induction programmes, etc,
• (x) It ensures continuity of employment and organisational stability
Demerits of Internal Sources :
i. Internal source is suitable only for jobs above the entry level. It cannot be used for entry
level jobs.
ii.In the case of internal source, the organisation has to choose a person from among the
existing personnel, who may or may not be fully qualified for the new job.
iii.It may encourage favouritism and nepotism in the recruitment and selection of the
personnel.
iv.Internal source results in inbreeding of ideas. It prevents innovations or fresh ideas required
for the growth of the organisation.
v. Internal source denies opportunities to outsiders to prove their talents in a new
organisation.
vi.If a concern is extending its activities to new lines, internal candidates may not be quite
suitable for new positions and they may need extra training, which may involve extra cost.
vii.It narrows down the choice of selection.
viii.Internal source may lead to conflicts among employees who aspire for promotions or transfers.