Human Recourse Management (HRM)

Unit 2
Introduction to Human Resource Management

Topics to be covered
• Introduction to Human Resource Management
• Definition, Scope and objectives of HRM,
• Importance of HRM, Functions of HRM,
• Role of HR Manager,
• Challenges before HR
Introduction
The concept of Human Resource Management (HRM) has started gaining prominence and focus
in management during the last 25-30 years. HRM has been known from ages, its rediscovery has
been necessitated by the deteriorating social conditions, increased competition and rapid
technological advancement. Human resource, will help in finding solutions to the social and
material problems faced by mankind.

HRM is the planning, organizing, directing and controlling the operative functions of
procurement, development, compensation and maintenance of human resource in order to
achieve an organization’s goals or objectives.

The organizational objectives can be best attained by acquiring human resource, developing
their skills, motivating them for high performance and ensuring that they continue to maintain
their commitment and loyalty towards the organization.

Definitions….
Definitions
Personnel management is the planning, organizing and controlling of
the procurement, development, compensation, integration and
maintenance of people for the purpose of contributing to the
organisational individuals and social goals.

Edwin Flippo

HRM is process concerned with the management of human energies

and competencies for achieving organisational goals through
acquisition, development, utilization and maintenance of the
competent and committed workforce in a changing environment.

G. R. Agarwal

Importance of HR….
Importance of HRM
HRM plays an important role in every organisation at all levels (Top-Middle-Lower). They
achieve their goals with the help of HR department and their policies (right man at right place
at right time).
At personal level, HR get people with their talent and skills to achieve the organisational goals
with committed people.

At social level, HR gives the status to the employee with their designation and facilities
provided in the organisation to satisfy the social needs.

At the National level, HR reduces the unemployment by providing skilled and specialist
employees at right place which provides good returns by uplifting their standard of living.

At the organisational level, HR promotes good work culture and increases productivity with
the help of talented and committed employee. For long run it will be beneficial for making
policies and strategies of the organisation.

objectives, scope and functions….

Objectives of HRM
To create an environment to maintain high morale and to encourage a value system of
trust, bonding and mutual interest.
To provide training and education for developing quality work force.
To provide opportunities for participation and recognition by fair and acceptable
leadership.
To provide monitory and non-monitory incentives in order to ensure high retention
rate.

The scope of Human Resource Management is vast. It covers all the activities in the
working life of an employee. The activities that come under the purview of HRM and
treated as the functions of HRM also:
Human Resource Planning, Recruitment and Selection, Training and Development,
Organizational Development, Career Development, Labour Relations, Performance
Management Systems, Employee retirement and separation, Compensation, Industrial
relations, Personnel research……
Human Resource Planning: - It involves
determining the organization’s human resource
needs and strategies. It involves analysis of the
internal and external factors such as skills needed,
number of vacancies etc.
Recruitment and Selection: -
Recruitment is concerned with developing a pool of
candidates in line with the human resource plan.
Selection is the process of matching people and
their career needs and capabilities with the jobs and
career paths. It ends with the ultimate hiring of a
candidate .
Organizational Development: - This element
assures healthy inter and intra-unit relationships. It
helps work groups in initiating and managing
change.
Career Development: - It ensures an alignment
of the management requirements with individual
requirements. It is a process of achieving an match
of individual and organizational needs
Labour Relations: - This variable assures
healthy union-organization relationship. It aims at
creating an environment of industrial peace and
harmony.
Training and Development: -
This involves identification of individual
potentialities and helping in the development of key
competencies through a planned learning process.
The competencies are to be developed to enable
individuals to perform current as well as future jobs.
Employee retirement and separation
Retirement:- Most of the employee get separated
from the organisation due to retirement. The event
of retirement is very important for the retiring
employee, so HR department has to arrange small
programme to acknowledge their services.
(compulsory, forced and VRS retirement)
Performance Management Systems: - The
performance management systems ensure
linkages between individual and organizational
goals. They aim at ensuring that every individual’s
efforts and actions support the goals of the
organization.
Industrial relations
It is concerned with the relationship between
management and workers. It covers collective
bargaining for resolving industrial disputes and
grievances, setting disciplinary policies and legal
aspects of labour.

Separation:- It is due to the end of the contract /
agreement of services for some reasons like; resignation,
suspension, dismissal, release.
Compensation:- It is major cost for all the organisations
so it required a careful attention in human resource
planning. It is also related to employee development
because it provides incentive in motivating employee to
achieve higher level of performance.
Personnel research
In a good research approach the objective is to
get facts and specific information about
personnel in order to develop and maintain a
programme at work.
A well designed survey based on information
regarding employees opinion about wages and
salary, promotions, transfers, working
conditions etc. will be conducted. This will help
in preventing issues like resistance of change,
policies regarding employee etc. in future.
Principles of HRM ….
 Principles of Human Resource Management
The success of Human Resource Management depends on the manner in
which HR policies and procedures are framed, implemented and governed.
The effectiveness of HR policies depends on the following principles:
a) Individualistic approach: People should be dealt with as individuals. This
calls for a clear understanding of what the employees feel about their work
assignments, personnel policies and all those decisions that affect their
interests.
b) Make employees feel worthwhile: It is important that employees are made
to feel that they are valuable to the organization. It is important to consider
and respect the employees’ feeling of accomplishment, pride and good
relations with co-workers and management.
c) Fair and just policies: The policies and practices should be fair and just. It is
necessary to give equal opportunities to all the employees. Sanctions should
also be applied uniformly.
d) Rewards should be earned: The employees should be informed that they
will not be ‘given’ rewards; instead they should strive hard to ‘earn’ rewards. In
other words, rewards should be performance-based and should not be
demanded or given as a matter of right.
e) Access to organizational information: All employees have a right to
organizational information as it facilitates timely execution of work. Denying
information is similar to creating obstacles in the employees’ ways.
f) Judge the strength: The HR manager should judge the strength and
intelligence of the employees properly. This is necessary to avoid resentment
and frustrations.
g) Equal pay for equal work: All employees should be paid on the basis of
equal pay for equal work. This approach has tremendous motivational value.
h) Do what you speak: The leaders should set examples before the
subordinates. It is important to remember that actions are louder than words.
Individual employee feel valuable themselves with fair policies, rewards, information, strength, and equal pay.
Role of HR manager
Role as a Advisor
Role as a Counsellor
Role as a Legal advisor
Role as a Policy Maker
Role as a Record Keeper

Role as a Advisor:- It is a responsibility of a HR manager to guide the employee from

time to time to follow the statutory regulations.
Role as a Counsellor:- HR manager need to be very much concern for the families of
the employees, to boost their morale, guiding in their personal problems or financial
problems etc.
Role as a Legal advisor:- HR manager plays an important role in grievance handling,
settling disputes, implementing various laws in the organisation, civil court matters etc.
Role as a Policy Maker:- HR manager is responsible in making policies towards
important aspects regarding organisation to achieve the goal of the organisation.
Role as a Record keeper:- It is a routine work of the HR manager to maintain the
records up-to-date, as it will be used as an evidence in the future.
Human resource challenges ….
To remain in business, human resource managers need to efficiently handle the
following human resource challenges:
1. Handling multicultural/diverse workforce: Dealing with people from different age,
gender, educational background, location, income, religious beliefs, marital status and
work experience can be a challenging task for HR managers. With this, managing
people with different set of ideologies, views, lifestyles and psychology can be very
risky. Effective communication, adaptability and positive attitude of HR managers can
bind the diverse workforce and retain talents in the organisation.

2. Managing change: Bringing change in organisational processes and procedures,

implementing it and then managing it is one of the biggest concerns of HR managers.
Business environment is very volatile. Technology keeps changing every now and then.
All thanks to globalisation. Upgrading the existing technology and training people for
them is a tough job for HR department. The success rate of technology change
depends how well HRD can handle the change and manage people issues in the
process.
3. Retaining talents: Globalisation has given freedom to working professionals to work
anywhere in the world. Now that they have endless rewarding opportunities to work,
hiring and retaining the best industry talent is not easy. Maintaining harmonious
relations with them, providing excellent work environment and offering more
remuneration than your competitors can retain and motivate them.

4. Conflict management: HR managers should know how to handle employee-

employer and employee-employee conflicts without hurting their feelings. Although it
is almost impossible to avoid conflicts among people still handling them tactfully can
help HR managers to resolve the issues. They should be able to listen to each party,
decide and communicate to them in a convincing manner in order to avoid future
conflicts.

HR professional must be proactive with all strategies and action plans in order to meet
the changing needs of the organisation. They must be thorough with the basic
functions of HR including planning, organizing, leading and controlling human
resources.
Case study- Home work and class presentation
 Thank you

Unit Name:-Introduction to Organizational Behavior and

Individuals in Organization & Unit Number:- 1