HUMAN RESOURCE MANAGEMENT

KMBN 202
UNIT 1
HUMAN RESOURCE MANAGEMENT

Definition : HRM is a series of integrated decisions that form the

employment relationships,whose quality contributes to the ability
of the organization and the employees to achieve their
objectives.

Nature of HRM
1.Concerned with human element
2. Integral Part of Management
3.Wide range of activities
4.Motivation of Human Resource
5.Development of Human Resource
6.Pervasive Function
7.Continous function
8.Multidisciplinary approach
9.Service or staff function
OBJECTIVES OF HR FUNCTION
The primary objective of HRM is to ensure the availability of right people for right jobs so as
the organisational goals are achieved effectively.
This primary objective can further be divided into the following sub-objectives:
1. To help the organisation to attain its goals effectively and efficiently by providing
competent and motivated employees.
2. To utilize the available human resources effectively.
3. To increase to the fullest the employee’s job satisfaction and self-actualisation.
4. To develop and maintain the quality of work life (QWL) which makes employment in the
organisation a desirable personal and social situation.
5. To help maintain ethical policies and behaviour inside and outside the organisation.
6. To establish and maintain cordial relations between employees and management.
7. To reconcile individual/group goals with organisational goals.

Werther and Davis have classified the objectives of HRM into four categories:

1. Societal Objectives

2. Organisational Objectives

3. Functional Objectives

4. Personal Objectives
1. Societal Objectives : The societal objectives are socially and ethically
accountable for the requirements and difficulties of society. In the process, they
need to reduce the adverse impact of such demands on the business. The failure
of companies to utilize their resources for society’s gain in ethical ways can result
in restrictions. For instance, the society may restrict human resource decisions to
laws which enforce reservation in employing and laws which deal with
discrimination, safety or other such aspects of societal concern.

2. Organisational Objectives : The organisational objectives acknowledge the

function of human resource management in organisational effectiveness. HRM
isn’t an end in itself; it’s just an effective way to help the business with its main
objectives. Basically the HR department is out there to serve the rest of the
organisation.

3. Functional Objectives : Functional objectives attempt to maintain the

department’s contribution at a level suitable for the organisation’s requirements.
Human resources need to be adjusted to match the organisation’s demands. The
department’s level of service should be customized to suit the business it assists.

4. Personal Objectives : Personal objectives help workers in attaining their personal

goals, at least insofar since these objectives boost the individual’s contribution to
the organisation. Personal objectives of workers should be met if they’re to be
maintained, retained and motivated. Otherwise, staff performance and
satisfaction might drop giving rise to employee turnover.
SCOPE OF HRM
1. Personnel Aspect
a. Human Resource Planning – It is the process by which the organisation identifies the
number of jobs vacant.
b. Job Analysis and Job Design – Job analysis is the systematic process for gathering,
documenting, and analysing data about the work required for a job. Job analysis
is the procedure for identifying those duties or behaviour that define a job.
c. Recruitment and Selection – Recruitment is the process of preparing advertisements on
the basis of information collected from job analysis and publishing it in
newspaper. Selection is the process of choosing the best candidate among the
candidates applied for the job.
d. Orientation and Induction – Making the selected candidate informed about the
organization’s background, culture, values, and work ethics.
e. Training and Development – Training is provided to both new and existing employees to
improve their performance.
f. Performance Appraisal – Performance check is done of every employee by Human
Resource Management. Promotions, transfers, incentives, and salary increments
are decided on the basis of employee performance appraisal.
g. Compensation Planning and Remuneration – It is the job of Human Resource
Management to plan compensation and remunerate.
h. Motivation – Human Resource Management tries to keep employees motivated so that
employees put their maximum efforts in work.
2. Welfare Aspect – Human Resource Management have
to follow certain health and safety regulations for the
benefit of employees. It deals with working
conditions, and amenities like - canteens, creches,
rest and lunch rooms, housing, transport, medical
assistance, education, health and safety, recreation
facilities, etc.

3. Industrial Relation Aspect – HRM works to maintain

co-ordinal relation with the union members to avoid
strikes or lockouts to ensure smooth functioning of the
organisation. It also covers - joint consultation,
collective bargaining, grievance and disciplinary
procedures, and dispute settlement.
FUNCTIONS OF HRM
IMPORTANCE OF HRM
A. Importance for the organisation
1.Good HR practices can help in attracting and retaining the best people.
2.Appropriate recruitment & selection activities identify the best people for the jobs and make sure they
are placed in suitable positions.
3.Training develops individuals who need skills ,knowledge and attitudes different from those they
currently possess.
4. Good human resources practices can motivate organizational members to do outstanding work.
5.HRM establishes mechanism for the administration of welfare activities like medical ,housing ,transport
etc. for the workers.This creates a team of committed and loyal workforce for the organisation.
6.Effective personnel practices lead to healthy employer-employee relations and thus industrial harmony
in the organisation.
7. Change is necessary in modern organisations.HR Manager can prepare the people to adapt to
technological and other changes in the organisation.

B. Importance for the Society

1. It provides sound personnel policies for socio-psychological satisfaction to people at work.
2. It maintains a balance between the jobs available and the jobseekers in terms of
numbers ,qualifications ,needs and aptitudes.
3. It eliminates waste of human resources through conversation of physical and mental health of
people.
4. It provides status to the employees in the society in the sense that they are contributing to the
welfare of the society.
c. Importance for the Nation
1. Efficient management of human resources can play a vital role in the
growth ,development and self sufficiency of a nation.
2. If the people are educated ,skilled and efficient the country will progress in the
desired direction.
3. Committed manpower is a necessary prerequisite for the effective and efficient
utilization of a nation’s physical, financial and natural resources.
4. Proper management of people results in the development which in turn speeds
up the process of economic growth leading to higher standards of living and
employment opportunities.
SYSTEM APPROACH TO HRM
ENVIRONMENT OF HRM
 Totality of all factors which influence both the organisation and HRM Sub
system.
A. Internal environment :-  
                                       Internal environment comprises of the factors
which affect an organization’s human resources from inside the
organization’s boundaries. mission, hr policies, organization culture, hr
system etc are the variable of hr internal environment.
Internal Environment:
These are the forces internal to an organisation. Internal forces have profound influence on HR
functions. The internal environment of HRM consists of unions, organizational culture and conflict,
professional bodies, organisational objectives, polices, etc. A brief mention of these follows.

1.Unions:
Trade unions are formed to safeguard the interest of its members/workers. HR activities like
recruitment, selection, training, compensation, industrial relations and separations are carried
out in consultation with trade union leaders.

2. Organisational Culture and Conflict:

As individuals have personality, organizations have cultures. Each organisation has its own culture
that distinguishes one organisation from another. Culture may be understood as sharing of some
core values or beliefs by the members of the organisation “Value for time” are the culture of
Reliance Industries Limited. The culture of Tata conglomerate is “get the best people and set
them free”.
HR practices need to be implemented that best fit the organisation’s culture. There is often
conflict between organizational culture and employee’s attitude. Conflict usually surfaces
because of dualities such as personal goal vs. organisational goal, discipline vs. autonomy, rights
vs. duties, etc. Such conflicts have their bearings on HR activities in an organisation.

3. Professional Bodies:
Like other professional bodies, the NIPM as the HR professional body regulates the functions of HR
practitioners in India. For this the NIPM in of ethics which the HR practitioners are expected to
declare their allegiance to the code (see Figure 2.2). Thus, professional bodies also influence HR
functions of an organization.
B. External Environment :-  
                                        Economic, political, technological
and demographic factors include the external environment. 
External Environment:
External environment includes forces like economic, political, technological, demographic etc. these
exert considerable influence on HRM. Each of these external forces is examined here.

1. Economic:
Economic forces include growth rate and strategy, industrial production, national and per capita
incomes, money and capital markets, competitions, industrial labour and globalisation. All these
forces have significant influence on wage and salary levels. Growing unemployment and reservation
in employment also affect the choice for recruitment and selection of employees in organisations.

2. Political:
Political environment covers the impact of political institutions on HRM practices. For example,
democratic political system increases the expectations of workers for their well being.

3. Technological:
Technology is a systematic application of organised knowledge to practical tasks.
Technological advances affect the HR functions in more than one way:
First; technology makes the job more intellectual or upgraded.
Second, it renders workers dislocated if they do not equip themselves to the job.
Third, job becomes challenging for the employees who cope with the requirements of technology
Fourth, technology reduces human interaction at the work place. Finally job-holders become highly
professionalized and knowledgeable in the job they perform.

4. Demographic:
Demographic variables include sex, age, literacy, mobility, etc. Modem work force is characterized
by literate, women and scheduled caste and scheduled tides workers. Now, workers are called
knowledge workers’ and the organisations wherein they work are called ‘knowledge organisations’.
PERSONNEL MANAGEMENT AND HUMAN
RESOURCE MANAGEMENT
The following are the major differences between Personnel Management and Human
Resource Management:
1. The part of management that deals with the workforce within the enterprise is known
as Personnel Management. The branch of management, which focuses on the best
possible use of the enterprise’s manpower is known as Human Resource Management.
2. Personnel Management treats workers as tools or machines whereas Human Resource
Management treats it as an important asset of the organization.
3. Human Resource Management is the advanced version of Personnel Management.

4. Decision Making is slow in Personnel Management, but the same is comparatively fast
in Human Resource Management.
5. In Personnel Management there is a piecemeal distribution of initiatives. However,
integrated distribution of initiatives is there in Human Resource Management.
6. In Personnel Management, the basis of job design is the division of work while, in the
case of Human Resource Management, employees are divided into groups or teams for
performing any task.
7. In PM, the negotiations are based on collective bargaining with the union leader.
Conversely, in HRM, there is no need for collective bargaining as individual contracts
exist with each employee.
8. In PM, the pay is based on job evaluation. Unlike HRM, where the basis of pay is
performance evaluation.
9. Personnel management primarily focuses on ordinary activities, such as employee
hiring, remunerating, training, and harmony. On the contrary, human resource
management focuses on treating employees as valued assets, which are to be valued,
used and preserved.
CHALLENGES OF HRM
1. Advancement in Technology
2. Changes in legal Environment
3. Globalisation
4. Restructuring of organisations and
networking
5. Management of Information
6. Work force diversity
7. Need of quality human resource
8. Workforce empowerment
HRM VS HRD
Human Resource Management (HRM) is a branch of
management; that is concerned with making best possible
use of the enterprise’s human resources, by providing
better working conditions, to the employees. It involves
those activities that arrange and coordinates the human
resources of an entity.
Human Resource Development (HRD) is a wing of HRM that
keeps focusing on the growth and development part of the
organisation’s manpower.
HRM LINKAGE WITH TQM & PRODUCTIVITY

Total quality management (TQM) has far-

reaching implications for the management of
human resources. It emphasizes self-control,
autonomy, and creativity among employees
and calls for greater active cooperation
rather than just compliance.

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