Human Resource Management

Unit 1

Introduction to Human Resource Management (HRM)

Meaning of HRM

Human Resource Management (HRM) is the strategic approach to managing people

in an organization to maximize their performance in alignment with business
objectives. HRM involves acquiring, training, developing, utilizing, and retaining
employees while ensuring their well-being and legal compliance.

Definitions of HRM

 Edwin Flippo – “Human Resource Management 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 objectives are accomplished.”
 Michael Jucius – “HRM is the field of management which deals with
planning, organizing, directing, and controlling various operative functions of
procuring, developing, maintaining, and utilizing a labor force.”
 Gary Dessler – “HRM is the process of acquiring, training, appraising, and
compensating employees, and of attending to their labor relations, health,
safety, and fairness concerns.”

Features of HRM

1. People-Oriented – HRM focuses on managing the workforce of an

organization.
2. Continuous Process – HRM is an ongoing function that requires constant
planning, implementation, and evaluation.
3. Goal-Oriented – It aims at achieving both organizational and individual
goals.
4. Universal Function – HRM applies to all organizations, regardless of their
size or industry.
5. Development-Oriented – HRM focuses on employee training and
development to enhance productivity and skills.
6. Strategic in Nature – It aligns HR practices with business goals to improve
performance.
7. Dynamic Function – HRM evolves with changes in technology, workforce
expectations, and legal regulations.
8. Legal Compliance – It ensures adherence to labor laws, ethical standards,
and industry regulations.

Prof. Mohan R, SFGC, Yelahanka

Human Resource Management
9. Multidisciplinary Approach – HRM integrates principles from psychology,
sociology, economics, and management.
10.Employee-Centric – It prioritizes employee welfare, motivation, and
engagement.

Objectives of HRM

1. Attracting Talent – Recruiting the right employees for the right jobs.
2. Training and Development – Enhancing employees’ skills to improve
efficiency and productivity.
3. Ensuring Job Satisfaction – Creating a positive work environment and
employee engagement.
4. Enhancing Productivity – Encouraging efficiency through motivation and
development programs.
5. Promoting Employee Welfare – Providing fair wages, incentives, and a safe
work environment.
6. Maintaining Industrial Relations – Building a strong employer-employee
relationship.
7. Ensuring Legal Compliance – Following employment laws and company
policies.
8. Developing Leadership Skills – Encouraging employees to take leadership
roles.
9. Adapting to Technological Changes – Keeping the workforce updated with
the latest advancements.
10.Improving Organizational Effectiveness – Aligning HR policies with
business strategies.

Importance of HRM

1. Efficient Utilization of Human Resources – HRM ensures optimal

deployment of employees.
2. Enhances Employee Performance – Training and motivation boost
workforce efficiency.
3. Maintains Workplace Harmony – HRM minimizes conflicts and promotes
teamwork.
4. Ensures Compliance with Labor Laws – Prevents legal disputes by
following regulations.
5. Boosts Employee Morale – Provides incentives, career growth, and job
security.
6. Supports Organizational Growth – Aligns HR strategies with business
expansion.
7. Encourages Innovation – HRM fosters creativity and adaptability.
8. Improves Job Satisfaction – Ensures a positive workplace culture.
Prof. Mohan R, SFGC, Yelahanka
Human Resource Management
9. Enhances Competitive Advantage – A well-managed workforce strengthens
a company’s market position.
10.Promotes a Positive Work Culture – Encourages ethical practices and
employee engagement.

Functions of HRM

HRM functions can be categorized into Managerial Functions and Operative

Functions.

1. Managerial Functions

These functions involve planning and decision-making to manage human resources

effectively.

 Planning – Forecasting HR needs and designing strategies for recruitment

and retention.
 Organizing – Structuring HR functions and assigning responsibilities.
 Directing – Motivating employees and providing leadership.
 Controlling – Monitoring employee performance and ensuring adherence to
policies.

2. Operative Functions

These functions focus on practical HR activities.

 Recruitment and Selection – Hiring skilled individuals for various job roles.
 Training and Development – Conducting programs to enhance skills.
 Performance Appraisal – Evaluating employee contributions.
 Compensation and Benefits – Ensuring fair salaries, bonuses, and
incentives.
 Employee Welfare – Providing healthcare, insurance, and workplace safety.
 Industrial Relations – Building good relationships between employees and
management.
 HR Research and Analytics – Using data insights to improve HR practices.

Process of HRM

The HRM process follows a systematic approach to managing human resources:

1. Human Resource Planning (HRP) – Forecasting future workforce needs.

2. Job Analysis and Design – Defining job roles and responsibilities.
3. Recruitment and Selection – Hiring employees through structured
processes.
Prof. Mohan R, SFGC, Yelahanka
Human Resource Management
4. Orientation and Onboarding – Familiarizing new employees with company
policies.
5. Training and Development – Enhancing employees' knowledge and skills.
6. Performance Management – Monitoring and evaluating employee
efficiency.
7. Compensation and Benefits – Managing salaries, incentives, and rewards.
8. Employee Relations – Ensuring a positive and conflict-free work
environment.
9. Career Development – Helping employees grow in their careers.
10.Retirement and Exit Management – Managing resignations and retirements
smoothly.

Role of HR Manager

HR managers play a crucial role in workforce management. Their key

responsibilities include:

1. Strategic Partner – Aligning HR practices with business goals.

2. Talent Acquisition Specialist – Recruiting top talent.
3. Training Facilitator – Conducting employee development programs.
4. Performance Evaluator – Assessing employee productivity.
5. Compensation Manager – Designing fair salary structures.
6. Employee Welfare Officer – Ensuring safety and health measures.
7. Change Agent – Implementing new HR strategies.
8. Conflict Resolver – Managing workplace disputes.
9. Legal Advisor – Ensuring compliance with labor laws.
10.Cultural Ambassador – Promoting workplace ethics and engagement.

Trends Influencing HR Practices

HRM is continuously evolving due to changes in technology, workforce

expectations, and globalization. Some key trends include:

1. Artificial Intelligence (AI) in HR – Automating HR functions like

recruitment and performance tracking.
2. Remote Work and Hybrid Work Models – Providing flexible work
arrangements.
3. Diversity and Inclusion – Promoting workplace equality.
4. Employee Well-being Programs – Enhancing mental and physical health
support.
5. HR Analytics – Using data insights for decision-making.
6. Gig Economy and Freelance Work – Hiring contract-based professionals.

Prof. Mohan R, SFGC, Yelahanka

Human Resource Management
7. Continuous Learning and Upskilling – Encouraging professional
development.
8. Sustainability and CSR (Corporate Social Responsibility) – Integrating
ethical practices.
9. Digital Transformation – Implementing HR software for efficiency.
10.Workforce Globalization – Managing a culturally diverse workforce

Prof. Mohan R, SFGC, Yelahanka