MODULE - I

HRM (Meaning):

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.
OBJECTIVES OF HRM:
The primary objective of HRM is to make certain the provision of competent human resources in
the business enterprise so that it will contribute in reaching organizational objectives.
i. Employee Motivation - A crucial objective of human resource management is employee
motivation. It is essential to ensure that the employees give their best efforts to produce
high-quality results for the organization. Some ways this can be achieved include giving
the employees the freedom to make suggestions and decisions, performance-based
assessments to provide compensation or rewards, and respecting their perspective.
Further, regular feedback keeps the employees engaged and productive.
ii. Team Integration - HRM aims to find effective tools and integration solutions to
facilitate easier communication and collaboration between different teams in an
organization. his further helps in streamlining various operations and activities of the
organization.
iii. Retention - Maintaining the retention rate is another basic objective of HRM. It focuses
not only on recruiting employees but ensuring they stay for a long time. If employees
leave in a short period of time, after the recruitment, selection, and onboarding process, it
can be challenging for the organization. Therefore, HR professionals work towards
maintaining employee engagement and satisfaction to retain employees for longer terms.
iv. Training and Development - The objectives of HRM are incomplete without the
effective performance of the employees. Hence, training is a necessary step when an
employee is hired. Once trained, employees develop a sense of security and responsibility
about the duties and tasks they are required to perform. It also increases their productivity
and helps them grow personally and professionally.
v. Work Culture - The work culture plays a significant role in determining human resource
management performance. It includes several things like friendly support from the
teammates, approval of leave requests without hassle, and acknowledgment of
reimbursement requests. Maintaining a good work culture also involves establishing
positive relations with the company’s employees.
vi. Personal Objectives - These objectives include acquiring, developing, utilizing, and
retaining skilled employees for the effective and efficient performance of the
organization. These can be achieved if the employee works for the organization’s benefit
along with their individual growth and development.
 vii. Societal Objectives - These objectives ensure that the organization meets the
psychological, behavioral, economic, social, and ethical needs. They include motivating
employees with certain opportunities, like specific benefits programs, community
relations programs, disability employment programs, and equal opportunity programs.
These opportunities help maintain the employees’ productivity through constant
motivation and support and make the company more sustainable and responsible.
viii. Organizational Objectives - These objectives involve various policies like
facilities provided to the employee, a clean and safe environment for working, and
technical guidance and support. HR managers are responsible for assisting the
organization in improving the employer-employee relationship. They enable the
employees to have the same goal by discussing fair compensation, rewards for good
work, and benefits for thinking out of the box.
NATURE OF HRM:
1. People Centric - It includes people centric functions such as recruiting, training and
development, performance feedback, compensation, employee health, safety and welfare, and so
on. HRM more importantly emphasizes on creating human capital.
2. Universal - HRM is universal. It is prevalant everywhere. It is not just restricted to business
organizations only. It is diversified in nature and is relevant in non business organizations too.
3. Ongoing Process - HRM is an ongoing process. For smooth and effective functioning of
organization, there must be effective employee management. HRM is a continuous process of
managing people and their competencies Its a never ending process in which manager
continuously deals with people.
4. Action Oriented - HRM is action oriented. It means that it is not confined to rules, regulations
and record keeping only. It aims at taking actions for quick resolution of employees problems.
The focus is on providing an effective and timely solution to employees for any problems,
tensions, or controversies faced by them.
5. Future Oriented - HRM is future oriented. Effective HRM helps in achieving future
organizational goals by recruiting and training competent and well motivated employees.
6. Enhance Employee Relations - HRM helps to build a healthy relationship between the
employees at various levels. It encourages mentoring and counseling to help employees in times
of need. It aims at creating a culture in the organization that is conducive to learning and growth.

SCOPE OF HRM:

FUNCTIONS OF HRM:
1. Recruitment and Selection - Recruitment of candidates is the function preceding the
 selection, which brings the pool of prospective candidates for the organization so that the
management can select the right candidate from this pool.
2. Job Analysis and Design - Job analysis is the process of describing the nature of a job
and specifying the human requirements like qualifications, skills, and work experience to
perform that job. Job design aims at outlining and organizing tasks, duties, and
responsibilities into a single unit of work for the achievement of certain objectives.
3. Performance Appraisal - Human resource professionals are required to perform this
function to ensure that the performance of employees is at an acceptable level.
4. Training and Development - This function of human resource management helps
employees acquire skills and knowledge to perform their jobs effectively. Training and
development programs are organized for both new and existing employees. Employees
are prepared for higher-level responsibilities through training and development.
5. Wage and Salary Administration - Human resource management determines what is to
be paid for different types of jobs. Human resource management decides employee
compensation which includes - wage administration, salary administration, incentives,
bonuses, fringe benefits, etc,.
6. Employee Welfare - This function refers to various services, benefits, and facilities that
are provided to employees for their well-being.
7. Maintenance - Human resources is considered an asset for the organization. Employee
turnover is not considered good for the organization. Human resource management
always tries to keep their best-performing employees with the organization.
8. Labour Relations - This function refers to human resource management interaction with
employees represented by a trade union. Employees come together and form a union to
obtain more voice in decisions affecting wages, benefits, working conditions, etc,.
9. Personnel Research - Personnel research is done by human resource management to
gather employees' opinions on wages and salaries, promotions, working conditions,
welfare activities, leadership, etc,. Such researches help in understanding employee
satisfaction, employee turnover, employee termination, etc,.
10. Personnel Record - This function involves recording, maintaining, and retrieving
employee-related information like - application forms, employment history, working
hours, earnings, employee absents and presents, employee turnover, and other data
related to employees.
HR MANAGER - Roles, status and Competencies:
• Roles: https://in.indeed.com/career-advice/career-development/hr-manager-
roles
i. Hiring and Recruitment - As an HR manager, the role is crucial in creating effective
hiring and recruitment processes. As a matter of fact, this is necessary to ensure the
success of the organization. Most importantly, these responsibilities extend beyond
 administrative tasks. The HR manager plays a strategic role in acquiring the right talent
that is essential to build a strong company.
ii. Create Compelling Job Descriptions - Needless to say, this entails clearly outlining the
responsibilities, qualifications, and expectations for each role within the organization. In
essence, this helps in attracting suitable candidates who suit the organization’s culture and
requirements.
iii. Design Effective Onboarding and Training Programs - Design comprehensive
onboarding programs and facilitate training and development initiatives to ensure that the
new hires feel welcome and supported. Furthermore, this also helps them to get better
equipped to transition into their new roles smoothly.
iv. Strategic Talent Management - The role of HR manager also calls for implementing
strategic talent management practices. This includes identifying high-potential
employees, creating development opportunities, and implementing succession planning.
Moreover, by nurturing and retaining top talent, HR managers can ensure a strong and
capable workforce. Again, this contributes to the long-term success of the organization.
v. Develop Employee Retention Strategies - Another requisite is that one must focus on
implementing initiatives to improve employee satisfaction and engagement. In short, this
necessitates creating strategies for higher retention rates. Furthermore, this involves
conducting exit interviews, analyzing employee feedback, and proactively addressing any
issues or concerns raised by employees.
vi. Manage Compensation and Benefits - HR managers are responsible for implementing
competitive compensation and benefits packages to attract and retain talented employees.
Therefore, one needs to stay up-to-date on the market trends. Moreover, HR managers
need to benchmark salaries to ensure employees are fairly compensated for their skills
and contributions.
vii. Streamline Event Planning and Scheduling - Organizing job fairs to attract potential
talent is a crucial aspect of the recruitment process. Simply put, the role of the HR
manager is vital for ensuring the hiring processes run smoothly and efficiently. Equally
important is providing a positive experience to the candidates. This, in turn, helps drive
successful hiring outcomes.
viii. Ensure Compliance With Rules and Regulations - An HR manager should
ensure the organization complies with employment laws, internal policies, and industry
standards. In addition, they also need to promote a fair and respectful work culture. This
further contributes to the overall growth of the organization.
ix. Facilitate Performance Reviews - Performance reviews are essential for providing
feedback, setting goals, and building a future roadmap for employees. Therefore, HR
managers must facilitate the performance review process and help employees if they face
any challenges during the same.
x. Setting an Ideal Work Culture - The role of the HR manager is significant in shaping
and maintaining an ideal work culture within the organization. Hence, they need to
 actively promote a positive work culture by implementing reward-and-recognition
programs. In brief, cultivate a culture that values diversity and inclusion and encourages
open communication and respect. HR managers should create an environment where
employees can thrive and contribute their best. Furthermore, they must regularly assess
and refine the work culture to ensure it aligns with the organization’s overall mission and
vision. This will definitely attract top talent and enhance employee satisfaction and
retention.
• Competencies:
i. Strong Communication Skills - HR managers must communicate effectively with both
employees and senior management. This includes clear verbal and written
communication, active listening, and the ability to handle sensitive conversations with
tact.
ii. Problem-Solving and Decision-Making - HR managers are often faced with complex
issues that require thoughtful problem-solving and decision-making skills. Whether
resolving employee conflicts or designing compensation packages, they must be able to
analyze situations and make informed decisions that benefit the organization and its
workforce.
iii. Leadership and Management Abilities - HR managers lead by example and must
inspire confidence in their ability to manage people-related matters. They oversee the HR
department and ensure that its functions align with business goals, all while fostering a
positive working environment.
iv. Knowledge of Employment Laws - A deep understanding of employment laws and
regulations is essential for HR managers. This helps them ensure that the company
remains compliant with local, state, and federal laws, reducing the risk of legal issues.
v. Emotional Intelligence - Managing people requires a high degree of emotional
intelligence. HR managers must empathize with employees, understand their concerns,
and respond to emotional cues effectively. Building strong relationships through empathy
helps create trust between the HR department and the workforce.
vi. Organizational Skills - HR managers oversee various tasks, including recruitment,
training, performance management, and policy development. They need strong
organizational skills to manage their time, prioritize tasks, and handle multiple
responsibilities simultaneously.
vii. Patience - He should be extremely patient and not someone who loses his temper easily.
While dealing with employees, it is important to be a good listener, especially when an
employee is voicing his concerns. And good listening skills require a lot of patience.
Further, since employees tend to talk to the HR manager about their problems, they can
get agitated and verbally abusive. In such situations, it is imperative that the HR manager
keeps his cool and controls the situation.
viii. Social Responsibility - A good human resource manager must have a strong sense
of social responsibility. He should encourage employees to contribute to society by
 supporting social causes and community initiatives. His role goes beyond serving the
organization; it involves shaping employees into responsible citizens and recognizing that
a business is part of a larger social system.
HR Policies:
Human resource policies are the formal rules and guidelines that businesses put in place to hire,
train, assess, and reward the members of their workforce. These are also defined as the body of
principles and rules of conduct which govern the enterprise in its relationship with employees.
These policies, when organised and presented in an easily used form, can prevent many
misunderstandings between employees and employers about their rights and obligations in the
organisation. Such a policy statement provides guidelines for a wide variety of employment
relationships in the organization. The purpose and significance of the HR policies hardly need
any elaboration. Every organization needs policies to ensure consistency in action and equity in
its relation with employees.

EVOLUTION OF HRM: https://101hrm.com/evolution-of-human-resource-

management/
I. The Industrial Revolution (1850-1900)

Managing workers at companies began at the time of the Industrial Revolution during the late
eighteenth century. Before this era, many large organizations existed, but without the advanced
technology, it was hard to maintain them. During this time, the work atmosphere was very
unfavorable and the employees used to put in endless hours in the company for very little pay.
FW Taylor introduced scientific management in the twentieth century. He gathered that there was
‘one best way’ to handle every role in every company to make it run more efficiently and
smoothly. Taylor examined the job and narrowed it down into essential elements, i.e. job
specialization.
He believed that employees could be trained at one job role to become an expert, but he
completely ignored the fact that doing the same job every day will get boring and mundane for
the employees. During this Revolution, science and technology started being applied to all
elements of work in modern industries. This affected every Human Capital Management in many
ways such as;
• The area of the job for all the employees changed from their home to a common area,
where everyone performed tasks under the same roof. The production techniques evolved
from manual to machines.
• The introduction of mechanization made work so easy with the evolution of HRM human
resource management constantly.
• With the help of computer technology, controlling industrial activities became very
productive and efficient. Inventory control, production control, method control,
manpower control, and financial control had all become very efficient with the
 introduction of computerized procedures.
• The expanded use of machines resulted in a vast change in employment. Working the
machinery required skilled knowledge, which many employees did not have. This ended
up making them unemployed and helpless.
In conclusion, the Industrial Revolution brought about discipline, monotony, materialism, job
displacement, work interdependence, and impersonality. In economic terms, the revolution
increased the accumulation of capital and goods to a large extent. Consequently, commerce and
business were highly accelerated, entrepreneurs and owners performed well, but the average
citizen poorly failed.
II. Period of Trade Unionism (1900-1970)

Soon after the factory system surfaced, many employees began to get together to discuss their
common dilemmas. Every employee was forced to work for long hours under dangerous
conditions, for practically no wage. This encouraged the employees to join together and protest
to prove their worth and importance to an organization.
They used different kinds of techniques like strike, walkouts, slowdowns, boycotts, picketing,
and sabotage. Even physical force was used at times. This, however, proved to be a success, as
without the employees the companies would come crashing down. The employers were forced to
listen to every demand of all the employees. New organizational units were created especially to
deal with the method improvements, the study of wages, and more attention was paid to the
needs of every employee.
i. Social Responsibility
As seen above, the earlier employers were not sympathetic towards their workers and their
needs. With time, they started to realize the importance of every employee and started giving
them the importance that they deserve. The companies started creating a positive work
environment where the employees were satisfied and hence started showing more productivity.
Labour laws were renewed according to which child labor was abolished. The workers were
given proper training on how to use the machinery. High wages and good working conditions
helped the workers in being more productive, which in turn contributed to the growth of a
company.
III. Scientific Management

The scientific management era began in 1900 and reached its peak by 1930. It was a major
revolution and thus has managed to stay somewhat alive to date. Handling everything manually
was getting exhausting for the employees and was hampering their productivity and efficiency.
There was a need to introduce new advanced technology which would eliminate the burden on
the employees. Employees used to perform slowly as they used to think that if they performed at
a fast pace, it would result in a grave error, which could cost them their jobs. This resulted in
plenty of time wastage and loss of productivity. Employees were forced to take up jobs outside
of their comfort zone and skills.
Not having knowledge about that field, hampered the credibility of an employee as well as the
company. Thus, Taylor introduced the best way to solve this, by picking the right man for the
right job. By putting the suited employee for the right job with the correct tools, companies were
able to make significant improvements in productivity. This was done by offering the employees
great economic incentives and higher daily wages.
To boost up the morale of every employee, the reward and performance management system was
introduced. This created a healthy competitive environment by encouraging employees to
perform harder to achieve rewards. Scientific management included a lot of essential elements
such as;
Task Planning - Scientific task planning entails the total number of hours an employee can
perform every day, which is called a fair day’s work. The management decides in advance what
task needs to be done by which employee and within what amount of time. The final goal is to
make maximum utilization of resources available in a timely sequence to promote maximum
productivity and efficiency.
Time Study - Time and motion studies were introduced to avoid wastage of time and resources.
The same task was given to different employees, and the hours are taken by everyone to
complete it was noted. This helped in taking out the average time required to complete a
particular task. Fatigue studies were also conducted, where the boredom and monotony caused
due to a particular task were noted.
Standardization - Various standards were set up in advance to ensure that the employees are clear
about the objective and target. It was also used to avoid wastage of resources and improve the
work quality.
Wages Bottomed on Productivity - To ensure that the employees are giving their best and not
taking advantage of the resources, wages were given out based on work done in the lowest
amount of time. According to this, an employee who finishes the entire work on time gets paid a
higher wage than the worker who doesn’t complete the task at a given time. This creates a sense
of healthy competition, ensuring that the employees give their best to earn a maximum wage.
Evolution of Human Resource Management – Introduction to HRM
As time changes, the techniques need to change too. With the coming of advanced hr technology,
a need for a better system emerged to handle the employees in every organization successfully.
Over the years the evolution of HRM concept has increased and is continuing to do so.
The integration of HRMS software in businesses is a tried and tested method to improve
productivity and increase efficiency. With the numerous benefits of human resource
management, many companies are taking advantage of it, and needless to say, are very happy
with the outcome. With the increase in the number of companies and their employees, a single
person could not handle the administrative tasks of everyone in the organization.
HCM software was created to develop and handle all the tasks systematically and efficiently.
Right from attracting candidates, to their recruitment, onboarding, and retention. Everything is
now handled by a human resource department. The three key responsibilities of HR are;
1. Recruitment - In today’s competitive business world, recruitment has become a wearying task.
Recruitment management system companies are competing with each other neck-to-neck, to find
the best potential candidate for their firms. For any job role, there are numerous applicants. It is
the responsibility of human resources to find the perfect candidate for the company.
2. Onboarding - When new hires join the organization, they have expectations and aspirations for
their job. The human resource department ensures that the onboarding of every new hire is easy
and seamless. They introduce an employee to the rules and regulations of the company and make
sure that the goals and targets of the new hires are aligned with that of the organization.
3. Retention - The most important role of the human resource department is to make sure that
their best employees are happy and satisfied with their jobs. They don’t want the company to
lose a crucial asset. Human resource organizes various activities and gives appraisals and
rewards to deserving employees. This helps the employees in being satisfied with their job, thus
helping the company to retain them for the long haul.
Thus, the growth and evolution of HRM (human resource management) have come a long way.
With the advanced technology and software, managing the employees in every organization has
become smooth sailing for human resources.

EMERGING CHALLENGES OF HRM:

i. Workforce Diversity - Workforce diversity is concerned with the similarities and
differences in such characteristics as age, gender, ethnic heritage, physical abilitiesand
disabilities, race and sexual orientation, among the employees of organizations.
Businesses need to be aware of the challenges that comes with a workforce that is diverse
which may lead to conflicts, discrimination, communication barriers between the workers
affecting the performance of the organisation.
The managers will be required to shift their approach from treating each group of workers
alike to recognizing differences among them and following such policies so as to
encourage creativity, improve productivity, reduce labour turnover and avoid any of
discrimination.
ii. Empowerment - Empowerment is the process of granting employees in an organisation
the authority, power, responsibility, resources, and freedom to make decisions and solve
work-related problems. They are given sufficient authority and
resources to take such initiatives and decisions.
iii. Downsizing -

iv. Voluntary Retirement Scheme -

v. Work-Life Balance - Work life balance is a technique that assists employees in
balancing their personal and professional lives. It encourages employees to prioritise their
time and maintain a balance by devoting time to family, health, vacations, and so on, in
 addition to making a career, business travel, and so on. Employees are busy at their
workplaces all day, and sometimes even on weekends. They have very little time to
interact with their family as a result, family members are frequently neglected due to high
demands of work. It also affects health due stressful jobs. Work-life balance enables an
employee to maintain a fine balance between their work and personal matters. People can
have a good work life by striking a good balance.
vi. ATTRITION: Employee attrition occurs when a worker leaves a company for any reason,
including voluntary resignations, layoffs, failure to return from a leave of absence, or
even illness or death. Employee attrition occurs when someone leaves a company for any
reason and is not replaced for an extended period of time (if ever).
There are two main types of employee attrition:
Voluntary attrition: Voluntary attrition occurs when an employee chooses to leave the
company. This can include any reason when employee leaves on their own such as
resignations for a new job or to relocate across the country, an employee who leaves for
health reasons or simply because the work environment is toxic.
Involuntary attrition: Involuntary attrition occurs when a company decides to part ways
with an employee. This can occur as a result of reorganisation or layoffs, for cause (such
as stealing or fighting), poor performance, or termination when someone quits their job.
vii. ABSENTEEISM: Absenteeism is a condition in which an employee is absent
from work without notice.