MODULE 1- HRM DEFINITION, SCOPE & SIGNIFICANCE, APPROACHES, HRM VS PM,

FUNCTIONS, ROLE OF HR MANAGER, SYSTEMS APPROACH TO HRM

Human resources management is a management function concerned with hiring, motivating, and
maintaining people in an organization. It focuses on people in organizations. Human resource
management is designing management systems to ensure that human talent is used efficiently
and effectively to accomplish organizational goals.

Human Resource Management (HRM) as “planning, organizing, directing, controlling of

procurement, development, compensation, integration, maintenance, and separation of human
resources to the end that individual, organizational and social objectives are achieved. By Edwin
Flippo

Features of Human Resource Management

 People Oriented
Human Resource Management is concerned with employees as both individuals and groups who
are working towards achieving the goals of the organization. It is concerned with the
improvement of the Quality of Work Life of employees working at all levels of the organization.
 Individual Oriented
Human Resource Management is concerned with the development of each and every employee
working in the organization by developing their skills, knowledge, capabilities, and potentialities
which help in training the goals of the employees as well as the objectives of the organization.
 Continuous Function
Human Resource Management is a continuous and never-ending process. There is a constant
need in the organization to improve the skills of the employees and ensure that the employees are
satisfied. Due to this, Human Resources Department has to work continuously in this regard.
 Pervasive Function
The function of managing human resources has to be undertaken by all the managers in the
organisation. The employees working under each manager have to be managed by that manager

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only and this task cannot be delegated to someone else be it the Managing Director of the
company or a foreman supervising the workers in the factory.

 Challenging Function
The management of human resources is a challenging activity due to the dynamic and unique
nature of human resources. Human Resource Management aims at securing unreserved
cooperation from all employees for attaining the goals of the organization.

 Based on Human Relations

Human Resource Management is concerned with the motivation of human resources. For this,
the needs, perceptions, and expectations of each and every individual worker have to be
identified. Further, human relation skills also are also required in training, performance appraisal,
transfer, and promotion of subordinates.
If human relations are maintained by the managers, the atmosphere in the organization would
remain cordial and it would help the organization to attain the decided objectives without any
hindrances.

OBJECTIVES OF HRM

The primary objective of HRM is to ensure the availability of competent and willing workforce
to an organization.

The specific objectives include the following:

a. Human capital: assisting the organization in obtaining the right number and types of
employees to fulfill its strategic and operational goals.

b. To develop 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.

c. 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.

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d. To Promote Harmony: Helping to establish and maintain a harmonious relationship between
employer/employee.

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

f. Developing programs to meet the economic, psychological, and social needs of the employees
and helping the organization to retain the productive employees.

g. 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.

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

i. To increase the employee’s satisfaction and self-actualization.

j. To develop and maintain the quality of work life.

k. To communicate HR policies to all employees.

l. To help maintain ethical polices and behaviour.

FUNCTIONS OF HRM

Human Resource Management functions can be classified in following three categories.

1. Managerial Functions

2. Operative Functions

3. Advisory Functions

Managerial Functions: The Managerial Functions of Human Resource Management are as

follows:

1. Planning

In this function of HRM, the number and type of employees needed to accomplish
organisational goals is determined. Research is an important part of this function, information is

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collected and analysed to identify current and future human resource needs and to forecast
changing values, attitude, and behaviour of employees and their impact on organisation.

2. Organising

In an organisation tasks are allocated among its members, relationships are identified, and
activities are integrated towards a common objective. Relationships are established among the
employees so that they can collectively contribute to the attainment of organisation goal.

3. Directing

Activating employees at different level and making them contribute maximum to the
organisation is possible through proper direction and motivation. Taping the maximum
potentialities of the employees is possible through motivation and command.

4.Controlling

After planning, organising, and directing, the actual performance of employees is checked,
verified, and compared with the plans. If the actual performance is found deviated from the plan,
control measures are required to be taken.

Operative Functions:

The Operative Functions of Human Resource Management are as follows:

1. Procurement

Recruitment of candidates is the function preceding the selection, which brings the pool of
prospective candidates for the organisation so that the management can select the right
candidate from this pool.

2. Development

This function of human resource management helps the employees to acquire skills and
knowledge to perform their jobs effectively. Training an development programs are organised
for both new and existing employees. Employees are prepared for higher level
responsibilities through training and development.

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3. Compensation

Human resource management determines what is to be paid for different type of jobs. Human
resource management decides employees compensation which includes - wage
administration, salary administration, incentives, bonuses, fringe benefits, and etc.,

4. Maintenance

Human resource is considered as asset for the organisation. Employee turnover is not
considered good for the organisation. Human resource management always tries to keep their
best performing employees with the organisation.

Advisory Functions:

Human Resource Management is expert in managing human resources and so can give
advice on matters related to human resources of the organisation. Human Resource
Management can offer advice to:

1. To Top Management: Personnel manager advises the top management in formulation and
evaluation of personnel programs, policies, and procedures.

2. To Departmental Heads: Personnel manager advises the heads of various departments on

matters such as manpower planning, job analysis, job design, recruitment, selection,
placement, training, performance appraisal, etc.

Importance of HRM

Human Resource Management has a place of great importance. According to Peter F.

Drucker, ―The proper or improper use of the different factors of production depends on the
wishes of the human resources. Hence, besides other resources human resources need more
development. Human resources can increase cooperation but it needs proper and efficient
management to guide it.

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1.It helps management in the preparation adoption and continuing evolution of personnel
programmes and policies.

2.It supplies skilled workers through scientific selection process.

3. It ensures maximum benefit out of the expenditure on training and development and
appreciates the human assets.

4. It prepares workers according to the changing needs of industry and environment.

5. It motivates workers and upgrades them so as to enable them to accomplish the

organisation goals. 6. Through innovation and experimentation in the fields of personnel, it
helps in reducing casts and helps in increasing productivity.

7. It contributes a lot in restoring the industrial harmony and healthy employer-employee

relations.

8. It establishes mechanism for the administration of personnel services that are delegated to
the personnel department

HRM VS PERSONNEL MANAGEMENT

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 Scope of HRM

Human Resource Management is a continuous process of ensuring the availability of eligible and
willing workforce i.e. putting the right man at the right job. In a nutshell, it is an art of utilizing
the human resources of an organization, in the most efficient and effective way. HRM covers a
broad spectrum of activities which includes:

 Employment
 Recruitment and Selection
 Training and Development
 Employee Services
 Salary and Wages
 Industrial Relations
 Health and safety
 Education
 Working conditions
 Appraisal and Assessment

Approaches to Human Resource Management

1. Strategic Approach

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People are the strategic asset of an organization. People have core competencies, the basis of
competitive advantage.Human resources are the combination of talent and skills; some are
inborn and other skills they have acquired through learning and education. The strategic
HRM approach focuses on people management programs and long-term solutions. It stresses
organizational development interventions, achieving employee organizational fit, and other
aspects that ensure employees add value.

2. Management Approach

HRM is a part of general management. Management is nothing but managing people in the
workplace. Managers at all levels are responsible for managing their employees or
subordinates.

3. Human Resource Approach

People are human beings with a lot of potential and intellectual abilities. It is important to
treat people with respect and dignity.

4. Commodity Approach
People are a commodity. They are viewed as a cog of a machine. People can be hired and
fired through money. It is money that matters most. There is a saying, “money is sweeter than
honey.” This approach views people as economic men.

5. Proactive Approach
HR managers must anticipate the challenges or problems before they arise. Prevention is
better than cure.The proactive approach will save companies considerable time and money in
the short and long run. P. F. Drucker (1997) rightly highlighted the importance of a proactive
approach.He argues,” In a perfect world, every startup would take the proactive approach and
build their company from the beginning by identifying not only the mission, vision, values,
goals, objectives, etc.But will determine where they want to go in the short and long-term
and build a holistic, aligned organization beginning at the founder level where they can
attract, hire, and retain the top talent to get them where they want to go.

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6. Reactive Approach
It occurs when decision-makers respond to problems. If efforts are reactive only, problems
may be compounded, opportunities may be missed, and organizations may suffer
loss.Companies may lose time and money if they take a reactive approach.

7. System Approach
A system is a set of interrelated but separate elements or parts working together for a
common goal. HRM system is a system which transforms employees into productive human
resources. he input components are transformed into refined output throughout managerial
process. Various sub-systems like" employment, training and development, compensation,
maintenance, personnel resources are activated in HRM system. HRM system should adopt
environmental changes like" political# economical# socio-cultural# and technological goal.
HRM system is the open system that consists of input# processing $ transformation and
output relationship.

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 Role of HR manager

1. Advisory Role:
One of the major roles of HR manager is, to advise the top management in the matter
relating to management and development of human resource, in order to achieve
organizational objects.

2. Pro-Acting Role:
HR manager ascertains the probable areas of conflict and differences between workers and
management, identifies the factors that may create problems in future, forecasts the extent,
quantum of loss that may occur and the department may suffer loss and takes remedial
measures beforehand by way of developing organizational culture, climate, introducing
system, mechanism, and does not leave any room to crop up problems, grievances.

3. Welfare Role:
HR executive looks to the welfare aspect of the employee’s viz., canteen, creche, rest-room,
hospital, transportation, housing accommodation, school, etc. His one of the principal roles
is to provide welfare facilities to the employees for their betterment and well-being.

4. Developmental Role:
Development of workers for attaining company goals is made by the HR manager through
improvement of knowledge, skill, abilities, aptitude, attitude, value, beliefs etc. HR manager
takes all possible measures for growth and development of employees through formulation
of HR policies in the matter of training, career planning and development, counselling etc.

5. Mediator’s Role:
HR manager works as a link personality between trade unions and top management in order
to eliminate the differences of opinions cropped up in process of settlement of disputes. He
takes initiative to sort out problems through collective bargaining/ bipartite negotiation
process.

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6. Counsellor’s Role:
Because of illiteracy and ignorance workers cannot take decision in their personal problems
and they need advice to sort out such problems, viz. education of children, medical
treatment, marital matter, family problems, etc. HR manager, as he comes close to the
workers because of his nature of work, develops understanding between them and advises,
guides the workers in right direction.

7. Spokesperson Role:
HR executive works as a spokesperson of the company especially, in the matter of depicting
organization health, condition, strength etc. to the employees while negotiating for
settlement of industrial disputes. He also acts as a representative of the workers when they
are non-unionized/unorganized and cannot represent their case properly to the top
management. Under such circumstances HR manager places their grievances, problems,
demand to the top management for settlement/redressal.

8. Motivator’s Role:
One of the functions of HR manager is to motivate the employees to achieve their own
goals, as well as organizational goals HR manager performs such role by way of introducing
reward schemes. HR manager’s role of establishing mutual understanding, mutual
confidence and mutual trust helps to motivate the employees to excel in the level of their
performance.

9. Change Agent Role:

In changing scenario, workers are required to change their attitudes, belief, perceptible state,
values to meet organization needs, requirement and expectation. In the age of stiff
competition organization can survive and develop only if the workers are adaptive to change
requirement. It is the HR executive who through establishment of sound human relation
convinces the workers about the necessity of changing attitude, values to accept change role,
as reinforced by introduction of OD programme, TQM concept, quality circle etc.

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10. Maintenance Role:
HR manager plays a pivotal role to retain the dynamic, excellent, highly skilled workers by
providing attractive compensation package, introducing reward management, career
planning and development, welfare, fringe benefits and social security schemes. Suitable
policies are formulated, programmes are designed, necessary measures are taken to
implement schemes for growth and development of employees, with and through the active
efforts of the HR manager.

11. Disputes Prevention Role:

HR manager takes remedial measures-curative and prophylactic to redress and prevent
grievances, disputes in order to bring harmony and peace in an organization through
introducing, grievance handling machinery, collective bargaining process, rational
approaches to discipline management, quality of working life, participative concept and the
like.

12. Decision Maker’s Role:

HR manager is the supreme person to make decisions in respect of management and
development of human resource. Organizational policies, programmes objectives concerning
human resource are formulated by him.

13. Coordinator’s Role:

HR executive coordinates the task of developing, interpreting of HR programmes, policies
which are put into operation by the line people, and develops a team spirit amongst them.

14. Monitoring Role:

HR manager acts as regulator/monitor to ensure, that HR policies, procedures, programmes,
so formulated are monitored effectively to meet the objectives.

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