SEMCOM

VALLABH VIDYANAGAR
(WHAT WE THINK, OTHERS DON’T)

Class : SYBCom/SYBBA/SYBBA ITM (SEM III) 2021-22

Subject : Human Resource Management
Faculty : Dr. Joe Mary George
Unit 1 : Human Resource Management

Meaning, Concept & Definition

Organizations are made up of people and function through people. Without people Organizations
cannot exist. The resources of men, money, materials and machinery are collected, coordinated and
utilized through people. It is through the combined efforts of people that material and monetary
resources are effectively utilized for the attainment of common objectives. All the activities of an
organization are initiated and completed by the persons who make up the organization. Therefore,
people are the most significant resource of any organization. This resource is called human resource
and it is the most important factor of production. In the opinion of L.F. Urwick, “business houses are
made or broken in the long run not by markets or capital, patents or equipment but by men.”
Of all the resources manpower is the only resource which does not depreciate, with the passage of time.
This resource is called human resource.
From the National point of view, human resources may be defined as “the knowledge, skills,
creative abilities, talents and aptitudes obtained in the population.”
According to Megginson human resources refer to “the total knowledge, skills, creative abilities,
talents and aptitudes of an organisation’s workforce, as well as the values, attitudes and beliefs of the
individuals involved.” Thus human resources represent the quantitative and qualitative measurement of
the workforce required in an organization.
According to Flippo, human resource management is “the planning, organizing, directing and
controlling of the procurement, development, compensation, integration, maintenance and reproduction
of human resources to the end that individual, organisational and societal objectives are accomplished.”

Evolution of HRM (as in the PPT)

Features/Characteristics of Human Resource Management

On the basis of the definitions give above, the following features of human resource management can
be identified:
1. Comprehensive Function: Human resource management is concerned with managing people at
work. It covers all types of people at all levels in the organization. It applies to workers, supervisors,
officers, managers and other types of personnel.
2. People Oriented: Human resource management is concerned with employees as individuals as well
as groups. It is the process of achieving the best fit between individuals, jobs, organization and the
environment. It is the process of bringing people and organisations together so that the goals of each are
met.

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3. Action Oriented: Human resource management focuses on action rather than on record keeping or
procedures. It stresses the solution of human resource problems to achieve both organizational
objectives and employees’ personal goals.
4. Individuals oriented:Under human resource management, every employee is considered as an
individual so as to provide services and programmes to facilitate employee satisfaction and growth.
5.Development Oriented: Human resource management is concerned with developing potential of
employees so that they get maximum satisfaction from their work and give their best efforts to the
organization
6.Pervasive Function: Human resource management is inherent in all organization and at all levels. It
is not confined to industry alone. It is equally useful and necessary in government, armed forces, sports
organisations and the like. It permeates all the functional areas e g production marketing, finance,
research, etc.Each and every manager is involved with human resource function. In big organisations,
there is generally a human resource department. But tis department only provides expert staff, advice
and assistance.
7.Continuous Functions: Management of human resources is an ongoing or never ending exercise
rather than a one shot function. In the words of Terry. “It cannot be turned on and off like water from a
faucet; it cannot be practiced only one hour each day or one day a week. Human resource management
requires a constant alertness and awareness of human relations and their importance in everyday
operations.
8. Future oriented: Human resource management is concerned with helping an organization achieve
its objectives in the future by providing for competent and well-motivated employees.
9.Challenging Function: Managing of human resources is a challenging job due to the dynamic nature
of people. People have sentiments and emotions so they cannot be treated like machines. It is, therefore,
necessary to handle them tactfully. It is not simply managing people but administering a social system.
10.Science as well as Art: HRM is a science as it contains an organized bod of knowledge consisting
of principles and techniques. It is also an art because it involves application of theoretical knowledge to
the problems of human resources .In fact, handling people is one of the most creative arts.
11.Staff Function: the function of human resource management is advisory in nature. Human resource
managers do not manufacture or sell goods but they do contribute to the success and growth of an
organization by advising the operating departments on human resource maters. Like the director of a
movie, their performance can be judged from the success of the total organization.
12.Young Discipline: Human resource management is of comparatively recent origin. It started in the
last part of the 19th century. It is relatively a new specialized area as compared to manufacturing and
marketing.
13.Interdisciplinary: Human resource management involves application of knowledge drawn from
several disciplines like sociology, anthropology, psychology, economics.et. In order to deal with human
problems effectively, a manager must depend upon such knowledge.

Functions of Human Resource Management

Management of human resources consists of several inter-related functions. These functions are
common to all organisations though every organisation may have its, own human resource
management programme. These functions of human resource management may broadly be classified
into two categories, viz., (1) managerial functions, and (2) operating functions.

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 1 Managerial Functions
Managing people is the essence of being a manager. Like other managers, a human resource manager
performs the functions of planning, organising, directing and controlling,
1. Planning. A plan is a predetermined course of action. Planning is the process of deciding the goals
and formulating policies and programmes to achieve the goals. Planning involves forecasting and
research. Forecasting implies scientific anticipation of the future environment. Human resource
management involves forecasting needs for human resources, predicting trends in labour market,
wages, union demands, etc. and their impact on the organisation. Planning helps to face successfully
the changes that are likely to take place in future. It bridges the gap between where we are and where
we want to go. Without planning events are left to chance. Planning is the means to manage change.
Planning today avoids crisis tomorrow.
In the area of human resource management, planning involves deciding human resource goals,
formulating human resource policies and programmes, preparing the human resource budget, etc.
2. Organising. In order to implement the plans, a sound organisation structure is required. Organising
is the process of allocating tasks among the members of the group, establishing authority –
responsibility relationships among them and integrating their activities towards the common objectives.
In this way, a structure of relationships among jobs, personnel and physical factors is developed. The
right organisation structure is the foundation of effective management because without it the best
performance in all other areas will be ineffective. Organisation is the framework through which
management directs, controls and coordinates the efforts of people.
3. Directing. Directing is the process of motivating, activating, leading and supervising people.
Directing includes all those activities by which a manager influences the actions of subordinates. It
involves getting others to act after all preparations have been made. It helps to secure the willing and
effective cooperation of employees for attaining organisational goals. A manager can tap the maximum
potential of employees through proper direction. Directing also helps in building sound individual and
human relations in the organisation.
4. Controlling. It implies checking, verifying and regulating to ensure that everything occurs in
conformity with the plans adopted and the instructions issued. Such monitoring helps to minimise the
gap between desired results and actual performance. Controlling the management of human resources
involves auditing training programmes, analysing labour turnover records, directing morale surveys,
conducting separation interviews and such other means.

2. Operative Functions
The operative or service functions of human resource management are the tasks which are entrusted to
the human resource department. These functions are concerned with specific activities of procuring,

developing, compensating and maintaining an efficient work force.

1. Procurement Function. It is concerned with securing and employing the right kind and proper
number of people required to accomplish the organisational objectives. It consists of the following
activities:
(a)Job Analysis. It is the process of studying in detail the operations and responsibilities involved in a
job so as to identify the nature and level of human resources required to perform the job effectively. Job
descriptions and job specifications are prepared with the help of information provided by job analysis.
(b)Human Resource Planning. It is the process of estimating the present and future manpower
requirements of the organisation, preparing inventory of present manpower and formulating action
programmes to bridge the gaps in manpower.
(c)Recruitment. It is the process of searching for required human resource and stimulating them to
apply for jobs in the organisation. A proper balance should be maintained between the internal and
external sources of recruitment.

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(d)Selection. It implies judging the suitability of different candidates for jobs in the organisation and
choosing the most appropriate people.
(e)Placement. It means assigning suitable jobs to the selected candidates so as to match employee
qualifications with job requirements.
(f)Induction or Orientation. It involves familiarising the new employees with the company, the work
environment and the existing employees so that the new people feel at home and can start work
confidently.
2.Development Function. Human resource development is the process of improving the knowledge,
skills, aptitudes and values of employees so that they can perform the present and future jobs more
effectively. This function comprises the following activities:
(a)Performance and Potential Appraisal. It implies systematic evaluation of employees with respect
to their performance on the job and their potential for development.
(b)Training. It is the process by which employees learn knowledge, skills and attitudes to further
organisational and personal goals.
(c)Executive Development. It is the process of developing managerial talent through appropriate
programmes.
(d)Career Planning and Development. It involves planning the career of employees and
implementing career plans so as to fulfill the career aspirations of people. It involves mobility of
human resource through promotions and transfers.
3. Compensation Function. It refers to providing equitable and fair remuneration to employees for
their contribution to the attainment of organisational objectives. It consists of the following activities:
(a)Job Evaluation. It is the process of determining the relative worth of a job.
(b)Wage and Salary Administration. It implies developing and operating a suitable wage and salary
programme. Surveys are conducted to determine wage and salary structure for various jobs in the
organisation.
(c) Bonus. It involves payment of bonus under the payment of Bonus Act, 1965 as well as non-
statutory bonus and other incentives.
4. Integration Function. It is the process of reconciling the goals of the organisation with those of its
members. Integration involves motivating employees through various financial and non-financial
incentives, providing job satisfaction, handling employee grievances through formal grievance
procedures, collective bargaining, workers' participation in management, conflict resolution,
developing sound human relations, employee counselling, improving quality of work life, etc.
5. Maintenance Function. It is concerned with protecting and promoting the physical and mental
health of employees. For this purpose, several types of fringe benefits such as housing, medical aid,
educational facilities, conveyance facilities, etc. are provided to employees. Social security measures
like provident fund, pension, gratuity, maternity benefits, injury/disablement allowance, group
insurance, etc. are also arranged. Health, safety and welfare measures are designed to preserve the
human resources of the organisation. Human resource records and research are also important elements
of the maintenance function.
The managerial functions and operating functions of human resource management are performed in
conjunction with each other.

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Objectives of Human Resource Management
Objectives of human resource management are derived from the basic objectives of an organization. In
order to achieve organizational objectives integration of employer’s interest and employee interests is
necessary.
In this, light, the objectives of human resource management may be summarized as follows:
(i) To help the organization attain its goals by providing well trained and well-motivated employees.
(ii) To employ the skills and knowledge of employees efficiently and effectively, i.e. to utilize human
resources effectively.
(iii) To enhance job satisfaction and self-actualization of employees by encouraging and assisting every
employee to realize his/ her full potential.
(iv) To establish and maintain productive, self-respecting and internally satisfying working
relationships among all the members of the organization.
(v) To bring about maximum individual development of members of the organization by providing
opportunities for training and advancement.
(vi) To secure the integration of all the individuals and groups with the organization by reconciling
individual/ group goals with those of an organization.
(vii) To develop and maintain a quality life (QWL) which makes employment in the organization a
desirable personal and social situation.

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(viii) To maintain high morale and good human relations within the organization.
(ix) To help maintain ethical policies and behavior inside and outside the organization.
(x) To manage change to the mutual advantage of individuals, groups, the organization and the society.
(xi)To recognize and satisfy individual needs and group goals by offering appropriate monetary and
non -monetary incentives.
Thus, human resource management seeks to (a) attain economically and effectively the organizational
goals, (b) serve to the highest possible degree the individual goals and (c) preserve and promote the
general welfare of the community .To sum up, human resource management seeks to accomplish
societal, organizational and individual goals.

DISCLAIMER: This study material is prepared by Dr. Joe Mary George. The basic objective
is to supplement teaching and discussion in the classroom in the subject.

Students are required to go for extra reading in the subject through library work.