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Human Resource Management



Quality of human resource is a critical factor in the success of any organization, and more so in service organizations like banking and insurance. HRM is concerned with managing manpower to improve individual, group and organizational effectiveness. HRM involves:

HR planning Recruitment and selection Training and development Motivation Performance appraisal Career development Promotions and transfers


David Decenzo and Stephen Robbins defined HRM as:

A process consists of four functions- acquisition, development, motivation and maintenance of Human resources. Human Resource Management is concerned with the people dimension in management. It is a process consisting of the acquisition, development, motivation and maintenance of Human resources.

Wendell French defines HRM as:

the philosophy, policies, procedures and practices related to the management of people within the organization.

Nature of HRM

HRM is a process

Acquisition Development Motivation Maintenance

Focus on Objectives Universal Application Continuous in Nature Integrated use of Subsystems Multidisciplinary Approach Key element in Coping with Problems Development of Team Spirit Development of Employees Potentialities Long term Benefits

Objectives of HRM

Ensure availability of competent workforce Integration of goals Cost containment Goals through able employees Harmonious Relationships Optimization of Human resources Growth and development of employees Satisfy needs Motivation Legal requirements Self Actualization

Scope of HRM

Human Resource Planning Job Analysis and Design Recruitment and Selection Orientation and Placement Training and Development Performance Appraisal Compensation Management Career Planning, promotions and transfers Motivation and communication Employee Welfare Human Resource Inventory HRIS Employee Safety and Health Industrial Relation

Indias Best Banks

Top ten largest banks in India

Axis PNB HDFC BOB Corporation Bank Andhra Bank Indian Bank Allahabad Bank State Bank of Hyderabad Canara Bank HSBC (rank 6) HDFC (rank 9)

The best companies to Work for in India

Structure of a Human Resource Department

Factors influencing the structure of a HRD are:


Size of the organization Management Philosophy Extent of decentralization Type of work Kind of people employed Type of service to be provided by HR

Classic Structure
President/ Director HR






Recruitment and Selection


Compensation and Benefits

Employee Welfare

Employee Relations

Functions of HR

HRP Organization and Job design Staffing T&D Performance Appraisal and Review Compensation and Reward Maintaining effective employer- employee relationship Health and Safety Management Employee Participation Organization Improvement

Personnel Management

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. Personnel management is basically an administrative record keeping function at the operational level. HRM is a refined and advanced form of personnel management. Personnel management views labour as a tool, the behavior of which can be manipulated for the benefit of the organization and replaced when worn out.

Difference between HRM and PM

Management Economic Man Managerial emphasis Cost and investment Communication Training and development

Human Resource Development

It is an integrated use of:
Training and Development  Organizational Development  Career Development To improve individual, group and organizational effectiveness

Nature of HRD
Continuous in nature Learning and Training Career Development Organizational Development Potential Appraisal Performance Appraisal

Role of HR Manager
Strategic Partner Employee Advocates Change Campion

Qualities of a good HR Manager

Intelligence Empathy Free of stereotypes and prejudice Motivating abilities Analytical abilities A holistic approach Good understanding of human nature and social environment

Challenges faced by HRM

Focus on knowledge and skill Globalization Attrition rate Reservation Issue Managing Women Workforce/ Workforce diversity Corporate Reorganizations Stress Management Work life balance Meet growing expectation of employees Future Challenges Technology Employee Health and safety


Ethical issues:
Recruitment and Selection  Performance Appraisal  Cash and incentive plans  Privacy issues

HRM challenges for Indian Bank

Human Resource Planning


Human resource planning is a process by which an organization ensures that


it has the right number and kinds of people at the right place at the right time capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives.


Linked to the organizations overall strategy and planning to compete domestically and globally. Overall plans and objectives must be translated into the number and types of workers needed. Senior HRM staff need to lead top management in planning for HRM issues.

Characteristic of HRP
Futuristic Continuous Process Part of Corporate planning Quantitative and Qualitative Long term and short term plans

Objectives of HRP

Forecasting Human Resource Requirement Effective management of Change Realizing Organizational Goals Promoting Employees Effective utilization of Human Resource Meeting Personnel Requirements Prevent Disruption of Work Control Costs Training and Management Development

Need for HRP

Smooth and efficient working of Organizations Filling Gaps in Manpower Expansion and Diversification Changing Technology Increased Employee Mobility Government Policies Budgeting Shortage of Skills

Steps in HRP
Analyzing the Organizational Plans Evaluation and Control

Forecasting the Overall Human Resource Requirement

Action planning

Assessment of Supply of human resources

Estimating manpower gaps


Problem of Accuracy Emphasis on Quantitative Aspects Uncertain Future Management Attitude Faulty Information System Expensive Time Consuming

Factors affecting HRP

Lack of Skilled Resources Separation of Employees Change in Organizational Objectives Change in Policies

Case Study