Human Resource Management (HRM)

CONTENT OF THE WORK

Definition and Concept

Importance of HRM

Various Processes in HRM.

Human Resource Planning

HRM Function

Function of HR Manager.

Definition and Concept

We often hear the term Human Resource Management, Employee

Relations and Personnel Management used in the popular press as well
as by Industry experts. Whenever we hear these terms, we conjure
images of efficient managers busily going about their work in glitzy
offices.

In this article, we look at the question “what is HRM?” by giving a broad

overview of the topic and introducing the readers to the practice of HRM
in contemporary organizations. Though as with all popular perceptions,
the above imagery has some validity, the fact remains that there is much
more to the field of HRM and despite popular depictions of the same, the
“art and science” of HRM is indeed complex.

We have chosen the term “art and science” as HRM is both the art of
managing people by recourse to creative and innovative approaches; it is
a science as well because of the precision and rigorous application of
theory that is required.

As outlined above, the process of defining HRM leads us to two different

definitions. The first definition of HRM is that it is the process of
managing people in organizations in a structured and thorough
manner. This covers the fields of staffing (hiring people), retention of
people, pay and perks setting and management, performance
management, change management and taking care of exits from the
company to round off the activities. This is the traditional definition of
HRM which leads some experts to define it as a modern version of the
Personnel Management function that was used earlier.

The second definition of HRM encompasses the management of

people in organizations from a macro perspective i.e. managing
people in the form of a collective relationship between management and
employees. This approach focuses on the objectives and outcomes of
the HRM function. What this means is that the HR function in
contemporary organizations is concerned with the notions of people
enabling, people development and a focus on making the “employment
relationship” fulfilling for both the management and employees.

These definitions emphasize the difference between Personnel

Management as defined in the second paragraph and human resource
management as described in the third paragraph.

To put it in one sentence, personnel management is essentially

“workforce” centered whereas human resource management is
“resource” centered. The key difference is HRM in recent times is
about fulfilling management objectives of providing and deploying people
and a greater emphasis on planning, monitoring and control.

Importance of HRM for Organizational Success

The practice of HRM must be viewed through the prism of overall
strategic goals for the organization instead of a standalone tint that takes
a unit based or a micro approach. The idea here is to adopt a holistic
perspective towards HRM that ensures that there are no piecemeal
strategies and the HRM policy enmeshes itself fully with those of the
organizational goals.

For instance, if the training needs of the employees are simply met with
perfunctory trainings on omnibus topics, the firm stands to lose not only
from the time that the employees spend in training but also a loss of
direction. Hence, the organization that takes its HRM policies seriously
will ensure that training is based on focused and topical methods.

In conclusion, the practice of HRM needs to be integrated with the

overall strategy to ensure effective use of people and provide better
returns to the organizations in terms of ROI (Return on Investment) for
every dollar or rupee spent on them. Unless the HRM practice is
designed in this way, the firms stand to lose from not utilizing people
fully. And this does not bode well for the success of the organization.

Processes in Human Resource Management

Each organization works towards the realization of one vision. The same
is achieved by formulation of certain strategies and execution of the
same, which is done by the HR department. At the base of this strategy
formulation lie various processes and the effectiveness of the former lies
in the meticulous design of these processes. But what exactly are and
entails these processes? Let’s read further and explore.

The following are the various HR processes:

1. Human resource planning (Recruitment, Selecting, Hiring, Training,

Induction, Orientation, Evaluation, Promotion and Layoff).
2. Employee remuneration and Benefits Administration.
3. Performance Management.
4. Employee Relations.

The efficient designing of these processes apart from other things

depends upon the degree of correspondence of each of these. This
means that each process is subservient to other. You start from Human
resource Planning and there is a continual value addition at each step.
To exemplify, the PMS (performance Management System) of an
organization like Infosys would different from an organization like
Walmart. Lets study each process separately.

1. Human Resource Planning: Generally, we consider Human

Resource Planning as the process of people forecasting. Right but
incomplete! It also involves the processes of Evaluation, Promotion
and Layoff.
1. Recruitment: It aims at attracting applicants that match a
certain Job criteria.
2. Selection: The next level of filtration. Aims at short listing
candidates who are the nearest match in terms qualifications,
expertise and potential for a certain job.
3. Hiring: Deciding upon the final candidate who gets the job.
4. Training and Development: Those processes that work on an
employee on board for his skills and abilities upgradation.
2. Employee Remuneration and Benefits Administration: The
process involves deciding upon salaries and wages, Incentives,
Fringe Benefits and Perquisites etc. Money is the prime motivator in
any job and therefore the importance of this process. Performing
employees seek raises, better salaries and bonuses.
3. Performance Management: It is meant to help the organization
train, motivate and reward workers. It is also meant to ensure that the
organizational goals are met with efficiency. The process not only
includes the employees but can also be for a department, product,
service or customer process; all towards enhancing or adding value
to them.
Nowadays there is an automated performance management system
(PMS) that carries all the information to help managers evaluate the
performance of the employees and assess them accordingly on their
training and development needs.
4. Employee Relations: Employee retention is a nuisance with
organizations especially in industries that are hugely competitive in
nature. Though there are myriad factors that motivate an individual to
stick to or leave an organization, but certainly few are under our
control.
Employee relations include Labor Law and Relations, Working
Environment, Employee health and safety, Employee- Employee
conflict management, Employee- Employee Conflict Management,
Quality of Work Life, Workers Compensation, Employee Wellness
and assistance programs, Counselling for occupational stress. All
these are critical to employee retention apart from the money which is
only a hygiene factor.
All processes are integral to the survival and success of HR strategies
and no single process can work in isolation; there has to be a high level
of conformity and cohesiveness between the same.

Human Resource Planning

Human Resource Planning (HRP) is the process of forecasting the
future human resource requirements of the organization and
determining as to how the existing human resource capacity of the
organization can be utilized to fulfil these requirements. It, thus,
focuses on the basic economic concept of demand and supply in context
to the human resource capacity of the organization.
It is the HRP process which helps the management of the organization in
meeting the future demand of human resource in the organization with
the supply of the appropriate people in appropriate numbers at the
appropriate time and place.

Further, it is only after proper analysis of the HR requirements can the

process of recruitment and selection be initiated by the management.
Also, HRP is essential in successfully achieving the strategies and
objectives of organization.

In fact, with the element of strategies and long term objectives of the
organization being widely associated with human resource planning
these days, HR Planning has now became Strategic HR Planning.

Though, HR Planning may sound quite simple a process of managing

the numbers in terms of human resource requirement of the
organization, yet, the actual activity may involve the HR manager to face
many roadblocks owing to the effect of the current workforce in the
organization, pressure to meet the business objectives and prevailing
workforce market condition. HR Planning, thus, help the organization in
many ways as follows:

 HR managers are in a stage of anticipating the workforce

requirements rather than getting surprised by the change of events
 Prevent the business from falling into the trap of shifting workforce
market, a common concern among all industries and sectors
 Work proactively as the expansion in the workforce market is not
always in conjunction with the workforce requirement of the
organization in terms of professional experience, talent needs, skills,
etc.
 Organizations in growth phase may face the challenge of meeting
the need for critical set of skills, competencies and talent to meet
their strategic objectives so they can stand well-prepared to meet
the HR needs
 Considering the organizational goals, HR Planning allows the
identification, selection and development of required talent or
competency within the organization.
It is, therefore, suitable on the part of the organization to opt for HR
Planning to prevent any unnecessary hurdles in its workforce needs. An
HR Consulting Firm can provide the organization with a comprehensive
HR assessment and planning to meet its future requirements in the most
cost-effective and timely manner.
An HR Planning process simply involves the following four broad
steps:

 Current HR Supply: Assessment of the current human resource

availability in the organization is the foremost step in HR Planning.
It includes a comprehensive study of the human resource strength
of the organization in terms of numbers, skills, talents,
competencies, qualifications, experience, age, tenures, performance
ratings, designations, grades, compensations, benefits, etc.
At this stage, the consultants may conduct extensive interviews with
the managers to understand the critical HR issues they face and
workforce capabilities they consider basic or crucial for various
business processes.
 Future HR Demand: Analysis of the future workforce requirements
of the business is the second step in HR Planning.
All the known HR variables like attrition, lay-offs, foreseeable
vacancies, retirements, promotions, pre-set transfers, etc. are
taken into consideration while determining future HR demand.
Further, certain unknown workforce variables like competitive
factors, resignations, abrupt transfers or dismissals are also
included in the scope of analysis.
 Demand Forecast: Next step is to match the current supply with
the future demand of HR, and create a demand forecast. Here, it is
also essential to understand the business strategy and objectives in
the long run so that the workforce demand forecast is such that it is
aligned to the organizational goals.
 HR Sourcing Strategy and Implementation: After reviewing the
gaps in the HR supply and demand, the HR Consulting Firm
 develops plans to meet these gaps as per the demand forecast
created by them.
This may include conducting communication programs with
employees, relocation, talent acquisition, recruitment and
outsourcing, talent management, training and coaching, and
revision of policies. The plans are, then, implemented taking into
confidence the mangers so as to make the process of execution
smooth and efficient.
Here, it is important to note that all the regulatory and legal
compliances are being followed by the consultants to prevent any
untoward situation coming from the employees.
Hence, a properly conducted process of HR Planning by an HR
Consulting Firm helps the organization in meeting its goals and
objectives in timely manner with the right HR strength in action.

The HRM Function and its Role in Organizational Processes

Functions of HRM:

1. Job design and job analysis

2. Employee hiring and selection
3. Employee training & development
4. Compensation and Benefits
5. Employee performance management
6. Managerial relations
7. Labour relations
8. Employee engagement & communication
9. Health and safety regulations
10. Personal support for employees
11. Succession Planning
12. Industrial Relations
1. Job design and job analysis

One of the foremost functions of HRM is job design and job analysis. Job
design involves the process of describing duties, responsibilities and
operations of the job. To hire the right employees based on rationality
and research, it is imperative to identify the traits of an ideal candidate
who would be suitable for the job. This can be accomplished by
describing the skills and character traits of your top-performing
employee. Doing so will help you determine the kind of candidate you
want for the job. You will be able to identify your key minimum
requirements in the candidate to qualify for the job.

Job analysis involves describing the job requirements, such as skills,

qualification and work experience. The vital day-to-day functions need to
be identified and described in detail, as they will decide the future course
of action while recruiting.

2. Employee hiring and selection

Recruitment is one of the primary functions of human resource

management. HRM aims to obtain and retain qualified and efficient
employees to achieve the goals and objectives of the company. All this
starts with hiring the right employees out of the list of applicants and
favourable candidates.

An HRM helps to source and identify the ideal candidates for interview
and selection. The candidates are then subjected to a
comprehensive screening process to filter out the most suitable
candidates from the pool of applicants. The screened candidates are
then taken through different interview rounds to test and analyse their
skills, knowledge and work experience required for the job position.

Once the primary functions of HRM in recruitment are completed, and

the candidate gets selected after rounds of interviews, they are then
provided with the job offer in the respective job positions. This process is
important because these selected employees will, after all, help the
company realise its goals and objectives.

3. Employee training & development

Imparting proper training and ensuring the right development of the

selected candidates is a crucial function of HR. After all, the success of
the organisation depends on how well the employees are trained for the
job and what are their growth and development opportunities within the
organisation.
The role of HR should be to ensure that the new employees acquire the
company-specific knowledge and skills to perform their task efficiently. It
boosts the overall efficiency and productivity of the workforce, which
ultimately results in better business for the company.

HRM plays a very crucial role in preparing employees for bigger tasks
and responsibilities, which leads to the holistic development of
employees at work. And an organisation which provides ample growth
and development opportunities to its employees is considered to be a
healthy organisation.

4. Compensation and Benefits

Benefits and compensation form the major crux of the total cost
expenditure of an organisation. It is a must to plug the expenses, and at
the same time, it is also necessary to pay the employees well. Therefore,
the role of human resource management is to formulate attractive yet
efficient benefits and compensation packages to attract more employees
into the workplace without disturbing the finances of the company.

The primary objective of the benefits and compensation is to establish

equitable and fair remuneration for everyone. Plus, HR can use benefits
and compensation as a leverage to boost employee productivity as
well as establish a good public image of the business.

Therefore, one of the core HR department functions is to lay down clear

policies and guidelines about employee compensation and their available
benefits. One of the functions of HR manager is to ensure the effective
implementation of these policies and guidelines. This creates equality
and builds transparency among the employees and the management
within the organisation. After all, the level of employee satisfaction at
work is directly proportional to the compensation and benefits they
receive.

5. Employee performance management

The next activity on HR functions list is effective employee performance

management. Effective performance management ensures that the
output of the employees meets the goals and objective of the
organisation. Performance management doesn’t just focus on the
performance of the employee. It also focuses on the performance of the
team, the department, and the organisation as a whole.
 The list of HR functions for performance management includes:

 Developing a proper job description

 Initiating an appropriate selection process to hire the right candidates for
the job positions
 Providing the right training and education needed to enhance the
performance of the employees
 Enabling real-time feedback and coaching employees to boost efficiency
among them
 Conducting performance reviews monthly or quarterly to discuss the
positives and the improvement areas of employees
 Formulating a proper exit interview process to understand why
experienced employees choose to leave the company
 Designing a proper appraisal and compensation system that recognises
and rewards the workforce for their effort and hard work
6. Managerial relations

Relationships in employment are normally divided into two parts —

managerial relations and labour relations. While labour relations is
mainly about the relationship between the workforce and the company,
managerial relations deals with the relationship between the various
processes in an organisation.

Managerial relations determine the amount of work that needs to be

done in a given day and how to mobilise the workforce to accomplish the
objective. It is about giving the appropriate project to the right group of
employees to ensure efficient completion of the project. At the same
time, it also entails managing the work schedules of employees to
ensure continued productivity. It is essential that HR handles such
relations effectively to maintain the efficiency and productivity of the
company.

7. Labour relations

Cordial labour relations are essential to maintain harmonious

relationships between employees at the workplace. At the workplace,
many employees work together towards a single objective. However,
individually, everyone is different from the other in characteristics.
Hence, it is natural to observe a communication gap between two
employees. If left unattended, such behaviours can spoil labour relations
in the company.

Therefore, it is crucial for an HR to provide proper rules, regulations and

policies about labour relations. This way, the employees have a proper
framework within which they need to operate. Therefore, every employee
will be aware of the policies which will create a cordial and harmonious
work environment.

Such a structured and calm work atmosphere also helps with improving
performance and aching higher targets.

8. Employee engagement and communication

Employee engagement is a crucial part of every organization. Higher

levels of engagement guarantee better productivity and greater
employee satisfaction. Efficiently managing employee engagement
activities will help in improving the employee retention rates too. HRM is
the right agent who can manage the employee engagement seamlessly.
Proper communication and engagement will do wonders for the
employees as well as the organization. The more engaged the
employees are, more committed and motivated they will be.

Human resource teams know the ‘humans’ of the organization better

than anyone else. This gives them an upper hand in planning
engagement activities. Although such activities might not fall under the
direct functions of HRM, they are indeed required for the organizational
welfare and employer branding.

9. Health and safety regulations

Every employer should mandatorily follow the health and safety

regulations laid out by the authorities. Our labour laws insist every
employer to provide whatever training, supplies, PPE, and essential
information to ensure the safety and health of the employees. Integrating
the health and safety regulations with company procedures or culture is
the right way to ensure the safety of the employees. Making these safety
regulations part of the company activities is one of the important
functions of HRM.
10. Personal support for employees

HRM assists employees when they run into personal problems which
may interfere with the workflow. Along with discharging administrative
responsibilities, HR departments also help employees in need. Since the
pandemic, the need for employee support and assistance has
substantially increased. For example, many employees needed extra
time off and medical assistance during the peak period of the pandemic.
For those who reached out for help, whether it may be in the form
of insurance assistance or extra leaves, companies provided help
through HR teams.

11. Succession Planning

Succession planning is a core function of HRMs. It aims at planning,

monitoring, and managing the growth path of the employees from within
the organizations.

What usually happens is that promising and bright employees within the
organization who have excelled in their roles are handpicked by their
supervisors and HRs, and their growth paths are developed.

This, of course, becomes quintessential as those employees who

recognize the fact that the company is investing in their growth and
development, and therefore, will stay loyal in the long run. However,
while developing such employees towards a higher role, companies must
keep in mind several aspects, such as improving employee engagement,
assigning challenging tasks and activities.

An employee leaving the organisation can prove to be disruptive and

expensive. Therefore, succession planning is a saviour of some sorts, as
it helps identify the next person who is just right to replace the outgoing
individual.

12. Industrial Relations

It’s usually the production lines and manufacturing units where this HR
function is mostly used. You see, Unions exist in factories and
manufacturing units. And their responsibility is towards the goodwill
about the workers — in fact, they’re always vocal and upfront about.
Now, for a company, especially into manufacturing and production, the
HRs must have ongoing Industrial Relations practices. They must also
continuously engage with the Unions in a friendly and positive manner to
maintain amicable relations.

The true motive of Industrial Relation touches on a lot of issues within

the company. For instance, Industrial Relations may be in place to meet
wage standards, reduce instances that call for strikes and protests,
improve working and safety conditions for employees, reduce resource
wastage and production time and so on.

Industrial Relations is extremely important because, if handled properly,

it can circumvent protests, violence, walkouts, lawsuits, loss of funds and
production time. IR is a sensitive yet critical function of the HR
department, naturally, it requires personnel with vast experience.

HRM plays a major role in the smooth functioning of the organisation.

The process starts with formulating the right policies for the job
requirements and ends with ensuring a successful business growth of
the company. Therefore, HRM works as an invisible agent that binds
together all the aspects of the organisation to ensure smooth progress.

HR Manager

Human resources managers plan, coordinate, and direct the

administrative functions of an organization. They oversee the recruiting,
interviewing, and hiring of new staff; consult with top executives on
strategic planning; and serve as a link between an organization's
management and its employees.

The Typical Functions of a HR Manager

Until now, we have discussed how the HRM function in organizations
works and the role of the function in organizational processes. We have
also discussed the changing nature of the HRM function in recent years
and how with the introduction of enterprise software, an entirely new
dimension has been added to these functions.

This article discusses the typical functions of a HR manager and

analyzes how he or she can make a positive contribution to the
organization and add value to the process. First, the HR manager has
to juggle between hiring, training, appraisals, and payroll among other
things. This means that a typical function of the HR manager would
encompass the end to end management of the employee people
lifecycle which means that the HR manager would have to take care of
everything that is concerned with the people aspect right from the time
the employee enters the organization till the time the employee quits or
retires from the organization.

Hence, the lifecycle of an employee’s time in an organization has to be

managed and this means that the HR manager is responsible for the
hiring, training, appraisals, payroll, and exit interviews.