What is HRM?

Defination of HRM:

Human resource management, HRM, is the department of a business organization that looks after the
hiring, management and firing of staff. HRM focuses on the function of people within the business,
ensuring best work practices are in place at all times.
OR
Human Resource Management is a function within an organization which focuses mainly on the
recruitment of, management of, and providing guidelines to the manpower in a company. It is a function
of the company or organization which deals with concerns that are related to the staff of the company
in terms of hiring, compensation, performance, safety, wellness, benefits, motivation and training
OR
Human resource management (HRM) is concerned with all aspects of how people are
employed and managed in organizations
• Why do we call it as Human Resource Management?

Human: refers to the skilled workforce in an organization.

Resource: refers to limited availability or scarce.
Management: refers how to optimize and make best use of such limited or scarce resource so as to meet the
organization goals and objectives.
Therefore, human resource management is meant for proper utilisation of available skilled workforce and also to
make efficient use of existing human resource in the organisation.
The goals of HRM
The goals of HRM are to:
● support the organization in achieving its objectives by developing and implementing human resource (HR)
strategies that are integrated with the business strategy (strategic HRM);
● contribute to the development of a high-performance culture;
● ensure that the organization has the talented, skilled and engaged people it needs;
● create a positive employment relationship between management and employees and a climate of mutual trust
● encourage the application of an ethical approach to people management.
Nature of HRM:
• HRM involves management functions like planning, organizing, directing and controlling.
• It involves procurement, development, maintenance and management of human resource.
• It helps to achieve individual, organizational and social objectives.
• HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and
sociology.
• It involves team spirit and team work.
SCOPE of HRM :
• Human resources planning: – Human resource planning is a process by which the company to identify the
number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess
or shortage.
• Job analysis design: – Another important area of HRM is job analysis. Job analysis gives a detailed explanation
about each and every job in the company. Based on this job analysis the company prepares advertisements.
• Recruitment and selection: – Based on information collected from job analysis the company prepares
advertisements and publishes them in the news papers. A number of applications are received after the
advertisement is published, interviews are conducted and the right employee is selected thus recruitment and
selection are yet another important areas of HRM.
• Orientation and induction: – Once the employees have been selected an induction or orientation program is
conducted. The employees are informed about the background of the company. They are told about the
 CONTINUE

• Training and development: – Every employee goes under training program which helps him to put up a better
performance on the job. 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 were the company spends a huge amount.
• Performance appraisal: – Once the employee has put in around 1 year of service, performance appraisal is
conducted i.e. the HR department checks the performance of the employee. Based on these appraisal future
promotions, incentives, increments in salary are decided.
• Compensation planning and remuneration: – There are various rules regarding compensation and other benefits.
It is the job of the HR department to look into remuneration and compensation planning.
• Motivation, welfare, health and safety: – Motivation becomes important to sustain the number of employees in
the company. It is the job of the HR department to look into the different methods of motivation. Apart from this
certain health and safety regulations have to be followed for the benefits of the employees.
• Industrial relations: – Another important area of HRM is maintaining co-ordinal relations with the union
members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company
The different specialist areas of HR :

1. Recruiting and Onboarding New Employees:

2. Organizational Structure
3. Performance Management
4. Employee Compensation and Benefits
5. Training and Development
6. Employee and Labor Relations
7. Workplace Safety and Health Issues
8. Employee Satisfaction
Typical roles in HR and responsibilities:

HR advisor: HR advisors oversee the human resources administrative procedures in a company and ensure that
labor policies are implemented. They are responsible for the hiring, payment, benefits, and departure of staff and
they have up-to-date knowledge of policies such as workplace safety, employee rights.
HR officer: HR Officer is a HR professional responsible for providing support in the various human resources and
functions, which include recruitment, staffing, training and development, performance monitoring and employee
counseling.
HR assistant: An HR Assistant, or Human Resources Assistant, is a credentialed professional who performs daily
administrative and human resources duties in an organisation. Their duties include assisting with recruitment,
payroll processing, compiling and maintaining records.
Employee relations officer: They interview workers and discuss personnel, human relations, and work-related
problems that adversely affect morale, health, and productivity. This person also evaluates and resolves human
relations, labor relations, and work-related problems, and meets with management to determine appropriate
action.
 Strategic HRM(SHRM)
• “SHRM is an approach to the development and implementation
of HR strategies that are integrated with business strategies and
enable the organization to achieve its goals.”
• Conceptually SHRM is to achieve “ fit between HR and business
strategies”

To understand strategic human resource management, it is very

important to appreciate the concepts of human resource
management and strategy.
Introduction : human resource management

• HRM: It is defined as a strategic and coherent approach to the management of

and organization’s most valued assets- the people working there, who individually
and collectively contribute to the achievement of its objectives.
• HRM is further defined by the two models developed by what might be describe
as its founding futhers
 The matching model of HRM

1) The matching model of HRM :

“HR systems and the organization structure should be managed in a way
that is congruent with organization strategy” (hence the name matching model)
“made by the Michigan school 1984”
• The model futher explained that there is a human resource cycle. Which is
consisits of four generic processes or functions that are performed in all
organization. These are :
• Selection – matching available human resource to jobs.
• Apprasial – performance management.
• Rewards – ‘ the rewards systems is one of the most under- utilized and
mishandled managerial tools for driving organizational performance. It must
reward short as well as long term achievements. Bearing in mind that ‘business
must perform in the present to succeed in the future’
• Development – developing high-quality employees.
The importance of Human Resource management (HRM)
• As a necessary part of the organizing function of management
Selecting, training and evaluating the work force
• As a important strategic tool
HRM helps establish an organization’s sustainable competitive advantage.
• Adds value to the frim
high performance work practices lead to both high individual and high organizational
performance.
Examples of High-performace work practices:
• Self-managed teams
• Decentralized decision making
• Training program to develop knowledge, skills, and abilities.
• Flexibles job assignments
• Open communication
• Performnce based compensation.
 HARD AND SOFT MODELS OF HRM
Point of difference
• Employee treatment
• Focus
• Communication
• Employeee empowerment
• Pay structure
• Link with the corporate planning
• Organisational structure
• Leadership tyle
• Appraisal system
point of difference:
1) Employee treatment:
hard: treats employees simply as a resource of the business just like machinery
and the building.(fixed assest)
Soft: treats employees as the most important resource in the business and as a
source of competitive advantage
2) focus:
hard: identity workforce needs of the business and then recruit and manage
accordingly(hiring, moving and firing) = task is focus
Soft: concentrate on the needs of employees, their roles, rewards, motivation
etc. = employees needs taken into considreation
3) Comunication:
hard : minimal communication, from the top down
Soft : strong and regular two way communication.
4) Employees empowerment or delegation:
Hard : little empowerment or delegation (power of taking decision)
soft : employess abd encourage to seek delegation and take responsibilities
5) Pay structure :
hard : enough to recruit and retain enough staff (minimum wages)
soft: competitive pay structure, with suitable performance related reward .
6) Link with corporate planning:
hard : strong link with corporate business planning – what resource do we
need, how s we get them and how much will they cost.
soft : employess are treated as individuals and their needs are planned
accordingkly.
7) Organization structure :
hard : taller organization structure
soft : flatter organization structure
8) Leadership styles
hard : suits autocratic leadership styles
Soft : suits democratic leadership style
9) Apprasial systems :
hard : appraisal system focused on making judgemnets (good or bad ) about staff
soft : appraisal system focused on identitying and addressing training and other
development needs.