Prepared by B B Patil
Unit 3 MMT
Human Resource Management
Content: Meaning, objectives, functions, HRM process, job analysis, job design,
recruitment, selection, placement, Training and development, retention of
employees, employee morale, performance appraisal.
Introduction:
Human resource management can be defined as that part of management process
which develops and manages the human elements of enterprise considering the
resourcefulness of the organisation’s own people in terms of total knowledge,
skills, creative abilities, talents, aptitudes and potentialities. It refers to the
qualitative and quantitative aspects of employees working in an organization. It
is a process of making the efficient and effective use of human resources so that
the set goals are achieved.
In simple sense, “Human Resource Management means employing people,
developing their resources, utilizing, maintaining and compensating their
services in tune with the job and organizational requirements with a view to
contribute to the goals of the organization, individual and society”.
According to Flippo, “Human Resource Management is planning,
organizing,directing and controlling of the, development, compensation,
integration, maintenance and separation of human resources to the end that
individual, organizational and social objectives are accomplished”.
According to National Institute of Personnel Management of India, “Human
Resource Management is that part of management which is concerned with
people at work and with their relationships within the organization. It seeks to
bring men and women who make up an enterprise, enabling each to make their
own best contribution to its success both as an individual and as a member of a
working group”.
It is clear from the above definitions that human resources refer to the qualitative
and quantitative aspects of employee working in an organization. Human
Resource Management as a process of making the efficient and effective use of
human resources so that the set goals are achieved.
Prepared by B B Patil
In short, HRM can be defined as a process of procuring, developing and
maintaining competent human resources in the organization so that the goals of
an organization are achieved in an effective and efficient manner. It also an art of
managing people at work in such a manner that they give their best to the
organization.
Objectives of Human Resource Management (HRM)
• Talent acquisition: Finding and keeping skilled employees
• Training and development: Improving employee knowledge and skills
• Performance management: Evaluating and improving employee
performance
• Employee engagement: Motivating and committing employees
• Compensation management: Designing fair and competitive
compensation packages
• Workplace health and safety: Ensuring a safe and healthy work
environment
• Organizational structure: Designing and maintaining the organization's
structure
• Career development: Identifying growth paths for employees
• Compliance: Ensuring the organization complies with labour laws and
regulations
• Employee well-being: Supporting employees' overall well-being and
social welfare.
Functions of HRM:
Human Resources management has an important role to play in equipping
organizations to meet the challenges of an expanding and increasingly
competitive sector. The functions are responsive to current staffing needs, but can
be proactive in reshaping organizational objectives.
1. Strategic HR Management: As a part of maintaining organizational
competitiveness, strategic planning for HR effectiveness can be increased
through the use of HR metrics (data points that track and measure HR
activities and employee performance) and HR technology (the use of
software and hardware to automate HR functions).
Prepared by B B Patil
Human resource planning (HRP) function determine the number and type
of employees needed to accomplish organizational goals. HRP includes
creating venture teams with a balanced skill-mix, recruiting the right
people, and voluntary team assignment. This function analyses and
determines personnel needs in order to create effective innovation teams.
The basic HRP strategy is staffing and employee development.
2. Equal Employment Opportunity: Compliance with equal employment
opportunity (EEO) laws and regulations affects all other HR activities.
3. Staffing: The aim of staffing is to provide a sufficient supply of qualified
individuals to fill jobs in an organization. Job analysis, recruitment and
selection are the main functions under staffing. Workers job design and job
analysis laid the foundation for staffing by identifying what diverse people
do in their jobs and how they are affected by them. Job analysis is the
process of describing the nature of a job and specifying the human
requirements such as knowledge, skills, and experience needed to perform
the job. The end result of job analysis is job description. Job description
spells out work duties and activities of employees.
4. Talent Management and Development: Beginning with the orientation
of new employees, talent management and development includes different
types of training. Orientation is the first step towards helping a new
employee to adjust himself to the new job and the employer. It is a method
to acquaint new employees with particular aspects of their new job,
including pay and benefit programmes, working hours and company rules
and expectations. Training and Development programs provide useful
means of assuring that the employees are capable of performing their jobs
at acceptable levels and also more than that. All the organizations provide
training for new and in experienced employee. In addition, organization
often provide both on the job and off the job training programmes for those
employees whose jobs are undergoing change.
5. Total Rewards: Compensation in the form of pay, incentives and benefits
are the rewards given to the employees for performing organizational
work. Compensation management is the method for determining how
much employees should be paid for performing certain jobs. Compensation
affects staffing in that people are generally attracted to organizations
offering a higher level of pay in exchange for the work performed.
Prepared by B B Patil
6. Risk Management and Worker Protection: HRM addresses various
workplace risks to ensure protection of workers by meeting legal
requirements and being more responsive to concerns for workplace health
and safety along with disaster and recovery planning.
7. Employee and Labour Relations: The relationship between managers
and their employees must be handled legally and effectively. Employer and
employee rights must be addressed. It is important to develop,
communicate, and update HR policies and procedures so that managers and
employees alike know what is expected. The term labour relation refers to
the interaction with employees who are represented by a trade union.
Unions are organization of employees who join together to obtain more
voice in decisions affecting wages, benefits, working conditions and other
aspects of employment.
Role of HRM
The role of HRM is to plan, develop and administer policies and programs
designed to make optimum use of an organizations human resources. It is that
part of management which is concerned with the people at work and with their
relationship within enterprises. Its objectives are: (a) effective utilization of
human resources, (b) desirable working relationships among all members of the
organizations, and (c) maximum individual development. Human resources
function as primarily administrative and professional. HR staff focused on
administering benefits and other payroll and operational functions and didn’t
think of themselves as playing a part in the firm’s overall strategy.
The primary responsibilities of Human Resource managers are:
• To develop a thorough knowledge of corporate culture, plans and policies.
• To initiate change and act as an expert and facilitator
• To actively involved in company’s strategy formulation
• To keep communication line open between the HRD function and individuals
and groups both within and outside the organization
Prepared by B B
• Patil of various organizational teams and their working
To facilitate the development
relationship with other teams and individuals.
• To try and relate people and work so that the organization objectives are
achieved efficiently and effectively.
• To diagnose problems and determine appropriate solution particularly in the
human resource areas.
HRM Process:
Human Resource Management – HRM process is a strategic approach which
helps the business or the organization to achieve the competitive advantage by
maximizing the performance of employees. It indirectly contributes achieving the
goals of organization. Whereas, Human Resource Management process is the
term which implies selecting, recruiting, training, appraisals of employees,
providing orientation, benefits, compensation, security & safety in compliance
with labor laws of the particular country or government.
HRM Process includes the Followings :
1.Recruitment: Recruitment is one of the most significant part of the HRM
process. Recruitment process of a company depends on the human resource
management which issues recruitment notifications through websites,
newspapers & articles. In other words, it is a process of inviting eligible
candidates to join the organization through various modes.
Recruitments are of two types, internal & external. Internal recruitment is when
the organization recruits candidates within its workforce. Whereas, external
recruitment process refers when the company or organization recruits eligible
candidates outside its workforce by issuing notification.
2.Selection: Selection is the second step of the HRM process in which, an
organization selects candidates based on eligibility criteria which includes
knowing particular work & having particular skill, education, attitude. All the
candidates invited for recruitment may not get selected since the recruitment
process includes various stages where one might get rejected. Selection process
often includes two to three stages, such as preliminary interview, screening of
applicants, employment tests, selection interview etc.
Prepared by B B
Patil
3.Training: Training comes after selection to boost the knowledge & updating
the skill of the selected candidates for the requirement of particular job role.
Optimizing cost & helping to maximize the efficiency of selected candidates is
one of the prime roles of human resource management. The Human Resource
Management Process helps to identify the training needs, preparing the training
programme & implementing it & also preparing the learners.
Job training are of two types, on the job & off the job training. On the job training
is the training which is provided at the workplace & with the equipment’s which
are at the office itself. It includes job rotation, coaching, job instruction through
step by step or by assigning particular work.
Whereas, off the job training implies where selected candidates are trained away
from the actual work floor with provided equipment that are solely meant for
training purposes. Candidates are required to learn the techniques & skills in this
period in order to work efficiently on the actual work floor.
4.Assessing performance: Assessing performance of an employee is conducted
through comparing the efficiency of the present employee & the standard which
has already been set previously by the organization itself. The HRM also gives
feedback to the employees so that they can improve themselves as per the
requirement of the organization. Whereas, performance appraisal is the to
determine whether the employees will be promoted or demoted.
The employees’ performance assessment can be done in two ways i.e. through
traditional methods and modern methods. The example of the traditional methods
are rating scale or a checklist method, where in technological advancement are
not involved. Modern methods include behaviourally anchored rating scale,
critical incident method, assessment centre method et cetera. The performance
assessment boosts the Human Resource Management Process as a while.
5.Motivating: Motive is something that cause a person to act, in most cases,
motivating comes under the clause when a person completes the task he will get
a reward of fulfilment. The efficient Human Resource Management Process
motivates & encourages employees to reach their maximum efficiency by giving
their cent percent at work.
Prepared by B B
Patil
HRM often motivates employees to do better by giving them Rewards and
Recognition & other benefits, such as different allowances & perks other than
mentioned in the payslip.
The rewards are often given in a non-financial way by giving best employees
recognition for the work they have done for the company. Such as, annual or
montly awards.
6.Compensating: Before compensating the employees for their work, the HRM
needs to assess the work carefully so that it doesn’t negatively impact the
financial budget of the organization. The HRM process is the one segment of
company which assess the gravity of compensation & manages compensation
effectively, the management must be aware of the labour laws of the country in
compliance with international labour organization.
7.Maintaining Labour Relations: Maintaining proper & healthy relationship
with the employees is also a task of the HRM. The management develops the
policies related to employee relations and ensures the application of company
policies and procedures. They also take the responsibility of the employee-
employer relationship dispute to resolve.
8. Healthy welfare & safety of employees: Human Resource Management
Process has to ensure proper safety & healthy environment to work for the
employees under law. Such as ensuring proper cleanliness, drinking water,
latrines & urinals, spittoons, ventilation & temperature, disposal of waste &
effluents, lighting, first aid appliances, washing, canteen, shelter, lunch room
etcetera.
9. Compliance to labor laws: The labour laws such as mines act or minimum
wages act etc. should be in accordance with the compliance. The HRM process
incorporates not only the national labour laws, but also the international labour
laws according to the industry as well as economic standards.
Job Analysis:
Prepared by B B
PATIL
Prepared by B B
PATIL
