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y Human Resource Management (HRM) is the function

within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. y Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.


y Edwin Flippo defies HRM as

planning, organizing,directing,controlling of,procurement,development,compensation , integration,maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.

y Integration of goals: HRM seeks to

integrate all the individuals and groups within the organization by reconciling individual/group goals with those of the organization. y Cost containment: In today s competitive business environment, keeping expenses down or cost containment, is a critical HRM goal.

y Goals through able employees: HRM seeks to

help the organization attain its goals by providing it with competent and dedicated employees. y Optimization of human resources: By employing the knowledge and skills of employees efficiently and effectively, HRM seeks to optimally utilize the humanresources of the organization. y Growth and development of employees: HRM seeks to ensure the growth and development of the employees by providing opportunities for training and advancement.

y Self-actualization: HRM aims to increase employee s job satisfaction and set them on the path of self-actualization by providing them with opportunities to utilize their potential to the fullest. y Satisfy needs: By providing adequate compensation, HRM seeks to ensure that the basic needs of the employees are satisfied and they are able to live a dignified life. y Motivation: An important goal of HRM is to motivate the human resources through adequate monetary and nonmonetary incentives so as to stimulate better performance, which in turn will enable the organization to accomplish its objectives. It also helps to retain talented employees and reduce employee s turnover.

y HRM covers the following areas:

Human resource planning Job analysis and design Recruitment and selection and induction Training and development Performance appraisal Transfers and promotion

y Human resource planning: Human resource planning is the process of assessing the organization s human resources needs in the light of organizational goals and changing conditions and making plans to ensure that a competent, motivated work force is employed. y Organizational and job designing: An important activity of HRM is developing an organization which caters for all the activities required, groups, them together in a way which encourages integration, cooperation, and provides for effective communication and design making.

y Staffing activities include: attracting qualified

people to the organization, selecting from among candidates, reassigning employees through transfer, promotion or demotion and ultimately managing the employee separation through resignation, discharge or retirement. y Training and development: This activity of HRM focuses on improving the performance of individuals and groups within the organization. These activities aim to help employees learn new skills or refine existing skills.

y Performance appraisal and review: Performance appraisal and

review is an ongoing evaluation of individual and group contributions to the organization and the communications of those evaluations to the persons involved. This HRM functions is carried out for a number of purposes: To provide feedback about performance, to determine the need for training, to make decisions about promotions, pay increases and so on. y Employee participation: This is a relatively new function of HRM. Employee participation focuses on giving employees a voice, sharing information with them and consulting them on matters of mutual interest.

y Compensation and reward: Organization compensates employees through wages and salaries, bonuses and benefits, such as health insurance, vacation time, and pension programs. The presence or absence of rewards and recognition is important to employee morale and performance.

Compensation decisions include determining: ensuring fair and equitable pay differences among employees, designing a pay packages relative to that of its competitors ,forms of compensation and so on.

y 1. Globalization: Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work ethics and more. HR managers have a challenge to deal with more functions, and more involvement in employee s personal life. y 2. Corporate Re-organizations: Reorganization relates to mergers and acquisitions, joint ventures, take over, internal restructuring of organizations. In these situations, it is difficult to imagine circumstances that pose a greater challenge for HRM than reorganizations itself. It is a challenge to manage employees anxiety, uncertainties, insecurities and fears during these dynamic trends.

y 3. Changing Demographics of Workforce: - Changes in

workforce are largely reflected by dual career couples, large chunk of young blood between age old superannuating employees, working mothers, more educated and aware workers etc. These dynamic workforces have their own implications for HR managers and from HRM point of view is a true challenge to handle. y 4. Changed employee expectations: With the changes in workforce demographics, employee expectations and attitudes have also transformed. Traditional allurements like job security, house, and remunerations are not much attractive today, rather employees are demanding empowerment and equality with management. Hence it is a challenge for HRM to redesign the profile of workers, and discover new methods of hiring, training, remunerating and motivating employees.

y Contribution to the success of organizations: - The biggest challenge to an HR manager is to make all employees contribute to the success of the organization in an ethical and socially responsible way. Because society s well being to a large extent depends on its organizations.