HUMAN RESOURCE

MANAGEMENT

UNIT-1
Introduction to HRM
 Organization is a group of people established either formally or informally for the attainment of certain
objectives. So, people are the foundation of any organization.

 In societal context, organization need people and people need organization.

 It is people who staff, lead and control organizations.

 Persons involved in an organization are referred as human resource.

 Simply, the overall management of such personnel in an organization is called human resource
management (HRM).
Human Resource Management
 An essential function of management and also an important part of every manager’s job.

 HRM is concerned with managing people in organizations.

 It is concerned with philosophy, principles, policies and practices related to human aspect of
management.

 It aims at achieving organizational objectives through the efficient and effective mobilization of human
resources.

 HRM is the process of accomplishing organizational objectives by acquiring, retaining, terminating,

developing and properly using the human resources in an organization.

 HRM refers to the policies and practices involved in carrying out the people or human resource aspects
of a management position, including recruiting, screening, training, rewarding and appraising.
Human Resource Management
 Human Resource Management (HRM) is a process concerned with the management of personnel
along with their energies and competencies for the achievement of organization objectives by the
process of acquiring, developing and utilizing such personnel.

 HRM is the planning, organizing, directing, and controlling of the procurement, development,
compensation integration, maintenance and separation of human resources to the end that individual,
organizational and social objective are accomplished
Nature of HRM
 HRM is based on certain principles and policies contribute to the achievement of organizational
objectives.

 HRM is a pervasive function – Human resource management is not specific to an individual

department, rather it is a broader function and spread throughout the organization, it manages all type
of people from lower level to top level departments of the organization.

 HRM is people oriented – People or human resource is the core of all the activities of human resource
management. Human resource management works with and for people. It brings people and
organization together to achieve individual and organizational goals.

 HRM is continuous activity – All factors of production are required to be continuously updated and
improved to cope up with the changes and increased competition. Similarly, human resource also
continuously trained, developed, or replaced to face the next level of competition. Hence, it is a
continuous activity.
Nature of HRM
 HRM is a part of management function.

 HRM aims at securing maximum contribution.

 HRM aims at optimum use of personnel power.

 HRM Involves the Application of Management Functions and Principles.

 Decision Relating to Employees must be Integrated.

 Decisions Made Influence the Effectiveness of an Organization.

Scope of HRM
Personnel Aspect

 Human Resource Planning – It is the process by which the organization identifies the number of jobs
vacant (Quantity + Quality).

 Job Analysis and Job Design – Job analysis is the systematic process for gathering, documenting,
and analyzing data about the work required for a job. Job analysis is the procedure for identifying those
duties or behavior that define a job.

 Recruitment and Selection – Recruitment is the process of preparing advertisements on the basis of
information collected from job analysis and publishing it in newspaper or anywhere else. Selection is
the process of choosing the best candidate among the candidates applied for the job.

 Orientation and Induction – Making the selected candidate informed about the organization’s
background, culture, values, and work ethics.
Scope of HRM
Personnel Aspect

 Training and Development – Training is provided to both new and existing employees to improve
their performance.

 Performance Appraisal – Performance check is done of every employee by Human Resource

Management. Promotions, transfers, incentives, and salary increments are decided on the basis of
employee performance appraisal.

 Compensation Planning and Remuneration – It is the job of Human Resource Management to plan
compensation and remunerate.

 Motivation – Human Resource Management tries to keep employees motivated so that employees put
their maximum efforts in work.
Scope of HRM
2. Welfare Aspect

Human Resource Management have to follow certain health and safety regulations for the benefit of
employees. It deals with working conditions, and amenities like - canteens, crèches, rest and lunch
rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

3. Industrial Relation Aspect

HRM works to maintain co- ordinal relation with the union members to avoid strikes or lockouts to ensure
smooth functioning of the organisation. It also covers - joint consultation, collective bargaining, grievance
and disciplinary procedures, and dispute settlement.
Importance of HRM
Human Resource Management is important to all managers despite their various
functions because of the following reasons:-

 Hire the right person for the job

 Low attrition rate
 Ensure people do their best
 Time saved in not conducting useless interviews
 Avoid legal action for any discrimination
 Safety laws are not ignored
 Equity towards employee in relation to salary etc.
 Effective training
 Avoid unfair labor practices
Functions of HRM
 Facilitating the retention of skilled and competent employees.

 Building the competencies by facilitating continuous learning and development.

 Developing practices that foster team work and flexibility.

 Making the employees feel that they are valued and rewarded for their
contribution.

 Developing management practices that endanger high commitment.

 Facilitating management of work force diversity and availability of equal

opportunities to all.
Functions of HRM
Objectives of HRM
 Human capital : assisting the organization in obtaining the right number and types of employees to fulfil
its strategic and operational goals

 Developing organizational climate: helping to create a climate in which employees are encouraged to
develop and utilize their skills to the fullest and to employ the skills and abilities of the workforce
efficiently.

 Helping to maintain performance standards and increase productivity through effective job design
providing adequate orientation, training and development, providing performance-related feedback, and
ensuring effective two-way communication.

 Helping to establish and maintain a harmonious employer/employee relationship.

 Helping to create and maintain a safe and healthy work environment.

 Developing programs to meet the economic, psychological, and social needs of the employees and
helping the organization to retain the productive employees
Objectives of HRM
 Ensuring that the organization is in compliance with provincial/territorial and federal laws affecting
the workplace (such as human rights, employment equity, occupational health and safety,
employment standards, and labour relations legislation). To help the organization to reach its goals.

 To provide organization with well-trained and well-motivated employees.

 To increase the employees satisfaction and self-actualization.

 To develop and maintain the quality of work life.

 To communicate HR policies to all employees.

 To help maintain ethical polices and behavior.

Objectives of HRM
 Societal objectives To be ethically & socially responsible to the needs of the society while
minimizing the negative impact of such demands upon the organization.

 Organizational objectives To recognize the role of HRM in bringing about organizational

effectiveness.

 Functional objectives To maintain the department’s contribution at a level appropriate to the

organization’s needs.

 Personal objectives To assist employees in achieving their personal goals in a manner that their
personal goals enhance the individual’s contribution to the organization.
Role of HRM
 Human Resource Planning.  Resolve Conflict.

 Job Analysis and Design.  Ensure Health and Safety of Employee.

 Hiring Candidates.  Rewards and Incentives.

 Training and Development.

 Design Workplace Policies.

 Monitor Performance.

 Maintaining Work Culture.

HRM Process
 The process of HRM involves attracting, developing and maintaining a talented and energetic
workforce.

 The basic goal of HRM is to build organizational performance capacity by raising human capital, to
ensure that highly capable and enthusiastic people are always available.

 The 3 major responsibilities of HRM are

 Attracting a quality workforce

 Developing a quality workforce

 Maintaining a quality workforce

HRM Process
Attracting a quality workforce :- Involves human resource planning, employee recruitment and
selection.
 Human Resource Planning
 Recruitment
 Selection
HRM Process

 Developing a quality workforce :- Involves employee orientation, training & development and
performance appraisal.

 Induction / Orientation.
 Training and Development.
 Performance Appraisal.

 Maintaining a quality workforce :- Involves career development, work life balance, compensation
and benefits, retention and turnover, and labor-management relations.

 Career Development
 Work Life Balance
 Compensation and Benefits
 Retention and turnover
 Labor- managements Relation
HR POLICIES

Policy
A policy is a pre determined established guideline towards the attainment of
accepted goals and objectives. Such guidelines facilitate properly designed
efforts to accomplish the strategic intent. Policy is not a strategy or tactic.
Strategy is a proposed course of action to exert a far reaching impact on the
ability of the enterprise to attain its goals.
HR POLICIES

Policies in the management of HR cover a wide variety of subjects. A comprehensive

coverage of policies embrace any action or decision, taken by either employees or
management in relation to the working environment, the rights and responsibilities of
employees and management, and the action of both parties.
Procedures prescribe the details for carrying out policies. They spell out the specific
rules and regulations, the steps, time, place, and personnel responsible for
implementing policies. Procedures also clarify what is to be done in particular
circumstances.
HR POLICIES
EMERGING TRENDS IN HRM

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, organizational and societal objectives are accomplished. The 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. Organisations have to adopt a holistic perspective towards HRM that
ensures that there are no piecemeal strategies and the HRM needs to evolve according to the changing
times. Hence, the organization that changes its practices will tend to survive profitably in the long run.
EMERGING TRENDS IN HRM
Need for integrated workforce management systems: Large Organisations should integrate various
personnel in Tax, Finance, IT, Legal and HR who never had to share data may now need to partner to
help avoid costly penalties. Gathering the required data from multiple systems can present a challenge
so it will be become even more important for businesses to consider an integrated human capital
management solution.

Shift from Work-Life Balance To Work-Life Integration: Just a few decades ago, the dream for most
employees was to achieve the elusive work-life balance. However, the growth of technology has made it
so that most employees are almost always accessible which has led to a shift away from separating
work life and personal life. In its place is the blurring of the two areas with flexibility to work during
nonwork hours and take short personal breaks during the traditional workday. Instead of work being a
place you go, work is now a thing you do. It has become an integrated part of most employees’ lives and
personalities. This means that work-life balance is dead and is being replaced by work-life integration.
Work = life and life = work.
EMERGING TRENDS IN HRM
Data driven recruiting: Data-driven recruiting will definitely be a trend that will gain more traction in
2016. Access to data is getting easier and cheaper with new technology and professional network
platforms. Talent acquisition leaders can arm themselves with data and become very strategic in their
decisions. For instance, build talent pools using data helps recruiters enhanced their understanding of
the market and be more efficient.

Big data analysis: The biggest HR Trend will be projecting data analysis. Organisations have
articulated about big data that it examining large data sets to uncover hidden patterns, unknown
correlations, market trends, customer preferences and other useful business information. The analytical
findings can lead to more effective marketing, new revenue opportunities, better customer service,
improved operational efficiency, competitive advantages over rival organizations and other business
benefits for some time and now it's time to start to act on that data and put it to use.

Associations not programs: HR should emphasis more on developing relationships rather than
programs and a deep understanding of the business. The key skill set for future HR people will be how
to effectively understand and manage the impact of mergers, demergers and globalization. These
changes have profound impact in the workplace.