HUMAN RESOURCE

MANAGEMENT
MEANING AND DEFINITION

• Human resource management is the process of bringing people and organization together
so that the goals of each are met. It tries to secure the best from the people by winning
their co -operation.
• It is the art of procuring, developing and maintaining competent workforce to achieve the
goals of the organization in an effective and efficient manner.
 Pervasive force Action oriented Individually oriented

Integratin
g People
Mechanis oriented
m Nature of human
resource
management

Future
oriented
Interdisci
plinary
function
Continuous Development
Auxiliary service
function oriented
NATURE OF HRM
• Pervasive force : HRM is pervasive in nature that means human resource is spread
through out the organization. As enterprise or organization is composed existing
human asset in the organization.
• Action oriented : It is action oriented as it focuses on action rather than record
keeping, written procedures or rules. It is proactive in nature and focuses on
solving existing problems of the employees through implementation of existing
HR policies framed to safeguard the employees interest.
• Individually oriented : It not only focuses on enhancement of organization but
also pays attention towards individual development through the means of training
and development and encourages them to give their best to the organization.
• People oriented: HRM is all about people at work. It tries to co-ordinate the
individual as well as group activities towards attainment of organizational goal. It
tries to put people on assigned jobs in order to produce good results. The profits
generated through the means of human resource are returned to the employees in
form of reward to motivate them to deliver effective performance.
• Future oriented : It helps organization to meet its goal in future by providing competent
and well motivated employees.
• Development oriented : It focuses on employee development in the organization. The
reward structure is tuned to the needs of employees and also provides required training
and development which helps the employees to be flexible in terms of coping up with the
changes around.
• Integrating mechanism: It tries to build and maintain cordial relations between people
working at different levels in the organization.
• Auxiliary services: HR departments also plays a role of special advisor in helping other
department in accomplishment of their activities.
• Continuous Function: HRM is not a one shot deal. It cannot be practiced only one hour
each day or one day a week. It requires a constant alertness and awareness of human
relations and their importance in everyday operations.
• Inter- disciplinary Function: It is a multi –disciplinary activity utilising knowledge and
inputs drawn from psychology, sociology, anthropology, etc. To unravel the mystery
surrounding the human brain, managers need to understand and appreciate the
contributions of all discipline.
SCOPE OF HRM

Personnel
aspect

Welfare Industrial
relations
aspect aspect
SCOPE OF HRM
• Personnel aspect : It is concerned with man power planning, recruitment,
selection, placement, training & development, remuneration, incentives, etc.
• Welfare aspect :It deals with the working conditions, housing, transport,
medical assistance, education, health etc.
• Industrial relation aspect : This covers union management relationship, joint
consultations, collective bargaining, settlement of disputes etc.
OBJECTIVES OF HRM

• Help organization reach its goal

• To employ skill and abilities of the workforce efficiently
• To provide organization with well trained and motivated employees.
• It focuses on increasing employee’s job satisfaction and self actualization.
• To develop and maintain quality of work life.
• Communicate HR policies to all employees in organization.
IMPORTANCE OF HRM

• At the Enterprise Level

• At the Individual Level
• At the Society Level
• At the National Level
EVOLUTION OF HRM

• Commodity concept: In the early years human resource was regarded as the
commodity to be bought and sold. It was more of profit centric then human
centric approach that was followed in the early years.
• Factor of production concept: Labor is like any other factor of production
that is money, material, land, etc. workers are like machine tools . So they
only focused on getting work done from human resource in organization.
• Goodwill concept: It focused on welfare aspect of employees they concentrated
on providing the facilities such as safety, lunch room and other basic
infrastructure facilities required to enhance employees performance.
• Paternalistic concept: Management must be protective assume a fatherly and
protective attitude towards employees. It focuses on satisfying various needs of
the employees as parents meet the requirements of children.
• Humanitarian concept: This concept gave importance on fulfilling and
improving productivity, physical, social and psychological needs of workers. It
viewed organization as a social system that has both economic and social
dimension.
• Human resource concept: It treats employees as valuable assets of organization.
Conscious efforts were done to realize organizational goals by satisfying needs and
aspirations of employees.
• Emerging concept : Decentralized concept of decision making came into picture.
Companies are becoming more of employee centric as welfare of employee is main focus
of companies. Organization believe in profit sharing with the employees as it increases
sense of belongingness among the employees in the organization.
 FUNCTIONS OF HRM
Managerial Operative
Functions Functions

Motivation &
Managerial Procurement Development Maintenance Integration Emerging issues
Compensation
• Planning • Job analysis • Training • Job design • Health and • Grievance • Personal records
• Organizing • Human resource • Executive • Work scheduling safety redressal • Human resource
• Directing planning development • Motivation • Employee • Discipline audit
• Controlling • Recruitment • Career planning • Job evaluation welfare • Team and team • Human resource
• Selection and • Performance • Social security work research
• Placement development appraisal measures • Collective • Human resource
• Induction and • Human resource • Compensation bargaining accounting
orientation development administration • Employee • Human resource
• Internal mobility participation and information
empowerment system
• Trade unions • Stress and
and employees counseling
association • International
• Industrial human resource
Relations management:
FUNCTIONS OF HRM
• MANAGERIAL FUNCTIONS :
• Planning : This function deals with determination of future course of action to
achieve desired results. Personnel manager is expected to determine the
personnel programme regarding recruitment, selection and training of
employees.
• Organizing : It is concerned with proper grouping of personnel activities,
assigning different group of activities to different individuals and delegation of
authority. Creation of a proper structural framework is its primary tasks.
• Directing : It involves supervising and guiding the personnel. Personnel
manager must be an effective leader who can create winning teams taking into
consideration the expectation of employees at different level.
• Controlling : It comprises of measuring the employees performance, correcting
negative deviations providing them feedback on their performance weaving
path for their further development.
OPERATIVE FUNCTIONS

• Procurement function
• Development
• Motivation & Compensation
• Maintenance
• Integration function
• Emerging issues
 PROCUREMENT FUNCTION

• Job analysis : it is the process of collecting the information relating to the

operations and responsibilities pertaining to a specific job.
• Human resource planning: it is the process of determining and assuring that
the organization will have an adequate number of qualified persons,
available at proper time and performing jobs.
• Recruitment : process of searching for efficient employees and stimulating
them to apply for jobs.
• Selection : is process of making comparison between the skills required for
job and asses weather the candidate possess the same abilities in him
required to perform the job.
• Placement : is the process of placing right candidate for right job.
• Induction and orientation : is the process through which new employees get an
overview about the company policies, rules, regulations etc.
• Internal mobility : the movement of employees within the organization
through the means of transfer & promotion.
DEVELOPMENT

• Training : is a continuous process by which employees learn skills, knowledge, abilities and
attitudes to achieve further individual as well as organizational goals.
• Executive development: process of developing managerial skills and capabilities through
appropriate programs.
• Career planning and development: it is concerned with the task of planning employees career plans
by the means of education, training etc.
• Human resource development: it aims at development of total organization. It creates working
environment where employees are required to update their knowledge at regular interval of time to
attain organization as well as individual goals.
 MOTIVATION AND COMPENSATION

• Job design : organizing task and responsibilities for making the work flow
productive in the organization. Its main purpose is to integrate the needs of
employers to suit the requirements of an organization.
• Work scheduling: it is an attempt to structure the activities incorporating
physical, psychological and behavioral aspects of work like flexible timings,
work sharing, etc.
• Motivation : is process of winning employees cooperation towards delivering
efficient performance by properly administered rewards for effective and
qualitative performance.
• Job evaluation : it refers to evaluating the value of job so as to determine the
relative worth of jobs in order to establish which jobs should be paid more
than others within the organization.
• Performance appraisal: refers to evaluating performance of employee at
regular interval to provide feedback to employees on their performance. It is
a systematic way of evaluating work related behavior and potential of
employees.
• Compensation administration: is the process of dividing how much an
employee should be paid. Main motto of compensation is to ensure effective
low- cost pay plan which can attract new employees and retain present
employees in the organization.
MAINTENANCE

• Health and safety: it ensures that the employees in the organization

are protected from physical hazards and unhealthy conditions
• Employee welfare : includes amenities and facilities offered to
within or outside the establishment for their physical, psychological
and social well being like housing, transportation, etc..
• Social security measures: security provided to employees in
addition to fringe benefits.
INTEGRATION FUNCTION

• Grievance redressal : it is concerned with addressing problems related

to wages, working hours or condition and of employment. It focuses
on sorting issues between trade union and management.
• Discipline : it abides the employees to follow rules and regulation
set by organization to monitor and control the activities of workforce.
• Team and team work: it focuses creating teams, groups in the
organization and coordinate their activities towards organization task
accomplishment.
• Collective bargaining: it take place in organization to get collective
consent of management as well as employees on certain terms and
conditions. Agreement is mostly based on issues related to wages,
hours of work, promotion etc.
• Employee participation and empowerment: refers decentralized system of
decision making in the organization. It enhances employees performance as
employees get feeling of belonging towards organization.
• Trade unions and employees association: it is an association of employees or
employers. It is permanent body working in the organization to protect
interest of employees in company.
• Industrial relations : it main object is to maintain harmony between
employees and management.
 EMERGING ISSUES
• Personal records : records such as papers, files, etc. are maintained to have
tangible record of what is actually happening in an organization and to
formulate HR policies and programs based on these records from time to
time.
• Human resource audit: refers to examination and evaluation of policies,
procedures and practices to determine the effectiveness of HRM in company.
• Human resource research: evaluating the effectiveness of existing HR
policies and practices and developing more appropriate ones.
• Human resource accounting: measurement of cost and value of human
resource to the organization. HRM is said to be effective if its value and
contribution is more than its cost.
• Human resource information system: it is an integrated system designed to maintain HR
compiled data and is useful to the management by serving as a source of information.
• Stress and counseling: it is the psychological and physical reaction to certain life situations and
can result in abuse substance. Companies are looking at what should be done to promote the
physical and mental well being of employees through proper counseling and employee
development programs.
• International human resource management: it gives emphasis on a no. of responsibilities and
functions such as orientation, training services to help employees adapt to a new and different
environment outside country.