HUMAN RESOURCE MANAGEMENT (XCN505A)

UNIT-I
Definitions of HRM
In the words of Dale Yoder, "Personnel management effectively describes the processes of
planning and directing the application, development and utilisation of human resources in
employment.

According to Stephen P.Robbins, "HRM is concerned with the 'people' dimension in

management. It is a process consisting of four functions acquisition, development, motivation
and maintenance of human resources"

SCOPE OF HRM
(i) Human resource planning: Human resource planning is the primary activity of human
resource management. All human resource management activities start with human resource
planning. It is the process of Management identifying current and future human resource
requirements of an availability and future demand. organisation. It bridges the gap between
current human resource
(ii)Job analysis: Job analysis is a systematic process of collecting complete information about a
job. The organisation determines the nature of jobs, duties and responsibilities. Then it decides
the qualifications and skills required by an employee to perform a particular job.
(iii)Recruitment and selection: Based on job analysis, the firm plans for recruitment and
selection. Recruitment involves all steps to encourage potential candidates to apply for jobs.
Selection refers to conduct of tests and interviews to choose the most suitable candidate.
(iv) Induction: After selection of employees, they are inducted into the company. In the
induction program, employees are informed about the history of the organisation, its values,
culture, ethics, role, responsibilities and career growth path.

(v) Training and development: Employees need to be trained to improve their skills and
abilities. The HR department identifies the training needs of employees and designs suitable
training programs. Developmental activities are conducted to improve the conceptual, analytical
and decision making abilities of employees.
(vi) Performance appraisal: It is conducted to assess the performance of employees. It serves
as the basis for increments, promotions, incentives, transfers and demotion.
(vii) Compensation Management: The HR department designs the compensation structure and
benefits. It has to decide the basis and incentives to be provided to employees at various levels.

(viii) Motivation: Employees have to be motivated to improve performance and productivity.

The HR department has to design performance incentives and rewards to motivate employees.
There should be financial and non financial incentives to improve motivation.
(ix) Health, welfare and safety: Health, welfare and safety of employees is an important
responsibility of the HR department. The government has legislation to ensure health, welfare
and safety. The HR function has to ensure that all regulations are complied with.
(X) Industrial relations: Healthy relations between management and workers. are essential for
success of an organisation. Poor industrial relations results in strikes, lockouts, damage to
equipment, property and affects production. An important function of HR is enabling better
understanding and relationships.

OBJECTIVES OF HRM:

 To consider employees as human assets and human capital and not as costs.
 To effectively use human resources to achieve organisational goals.
 To ensure that HR policies, systems and procedures are consistent with one another.
 To align human resource goals with business strategy and objectives.
 To provide training and development to enable employees reach their full potential.
 To create strong value systems and create an environment of trust.
 To create flatter and flexible organisational structures which can adapt to change.
 To provide stability of employment to employees.
 To ensure fair wages, attractive incentives and rewarding good performance.
 To provide social security to employees and out placement in case of retrenchment.
 To provide for participative management and improve morale and motivation of
employees.
 To ensure retention of talented and skilled employees in the organisation.
 To create a climate in which employees are encouraged to develop and utilise their skills.
 To encourage team work and co-operation among employees.
 To improve employee engagement and loyalty to the organisation.
 To create incentives and reward systems to encourage high levels of performance.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
The functions of human resource management can be classified into: (1) Managerial functions
(2) Operative functions and (3) Advisory functions.
1.Managerial functions: The managerial functions performed by the HR manager are:

(1) Planning:
Planning is deciding what should be done and who should do it. In the HR function, planning is
related to deciding on personnel policies and procedure. It involves human resource planning,
planning for recruitment, selection, training, motivating and career growth.
(ii) Organising: Once the plans are made, the HR manager has to bring together the resources
required to achieve them. Organising involves.
(a) Identifying the work to be performed and grouping them into functions or positions

(b) Assigning activities to different groups

(c) Delegation of authority and responsibility
(d) Co-ordinating the activities of individuals and groups.
(iii)Staffing: The success of an organisation depends on the skills and performance of its
employees. It is recruitment and selection which ensures that the organisation has the right type
of talent. Acquiring skilled employees and retaining them is essential for long term success.
Employees have to be provided fair remuneration and incentives based on performance. They
should be motivated to improve performance and provided career growth opportunities.
(iv)Directing: It refers to leading, guiding and motivating employees to perform better and
achieve organisational goals.
The HR manager: (a)Leads, directs and commands his subordinates (b) Supervises their work
and points out areas of improvement (c) Motivates them to improve productivity (d) Guides them
to achieve organisational objectives.
(v) Co-ordinating: Co-ordination refers to blending of efforts to ensure achievement of
objectives. The HR manager has to efficiently co-ordinate the various activities of HR. He also
has to co-ordinate with managers of other functional areas.
(v) Controlling: It involves setting standards, measuring performance,comparison of
performance with standards, identifying deviations and taking corrective action. The HR
manager evaluates and controls the performance of HR department. It involves indepth study of
personnel records and HR audit
(vi) Innovation: The environment in which firms operate keeps changing. There are many
complex challenges that a HR manager has to face. He should adopt a creative approach and
implement new ideas. He should be prepared to try out new approaches.
(vii) Decision making: The HR manager should take decisions in a prudent manner. He should
get inputs, consider all alternatives and evaluate these before taking a decision. After a decision
is taken, it has communicated to employees.
2. Operative Functions: They are tasks and duties specifically assigned to the human resource
department. The following are the operative functions of the human resource department:
(i) Recruitment :Manpower requirements of the organisation in terms of number of people and
skills are assessed. Then steps are taken for recruitment, selection and placement. Recruitment
involves encouraging potential candidates to apply for jobs. Selection involves conduct of tests
and interviews to select the right person. After selection, the next step is induction and placement
(ii) Development: Development of human resources is an important function of the
management. The human resources department designs on the job and off the job training.
Training is provided to impart new skills and update existing skills of employees.
(iii) Compensation: This involves determining fair wages based on nature of the job, legal
provisions, wages of competitors and capacity to pay. Employees can be compensated through
monetary and non monetary incentives.
(iv) Maintenance: Employees should be provided safe, healthy and convenient working
conditions. Good working conditions would improve morale, motivation and efficiency of
employees. The HR department takes steps to provide welfare facilities such as canteens,
recreation, transport, education for children, housing, insurance and medical facilities.

(v) Motivation: The human resource manager designs various financial and non financial
rewards to motivate employees
(vi) Personnel records: The human resource department maintains records relating to
recruitment and selection, training, compensation transfer, promotion, labour turnover and
personnel policies of the organisation.
(vii) Separation: When employees retire or die while in service the HR manager should ensure
that retirement benefits are settled, In case of retrenchment, he can take steps for outplacement of
employees.
(viii) Industrial Relations: The human resource manager takes steps to maintain healthy
industrial relations. He has good knowledge of labour laws and involves in collective bargaining,
joint consultation and settlement of disputes.
3. Advisory Functions: The human resource manager is an expert with rich knowledge and
experience in the human resources area. He offers advice relating to:

 Top management : The HR Manager provides advice to the top management for
preparation and implementation of HR Policies and programmes. He suggest measures
for achieving good human relations and improving morale and motivation.
 Departmental heads: The HR Manager provides advice to departmental heads on
human resource planning ,job analysis and design, recruitment, selection, training and
appraisal.

ROLE OF HR MANAGER
In the early days, the role of the HR manager was restricted to recruitment and selection of
employees. The HR manager is today a key person in the organisation. He performs the
following important roles:

(i) The Counsellor: The HR manager acts as a counsellor and provides counselling to
employees. Employees discuss problems relating to health, emotions, finance, work, colleagues,
family etc., with the HR manager. He guides them to find suitable solutions.
(ii) The Advisor: The HR manager advises the management on human resource planning,
recruitment, selection, training, appraisal, compensation and integration. He guides the
management in preventing and solving industrial disputes.
(iii) The Problem Solver: Organisations face variety of problems which are complex in nature.
The HR manager takes steps to anticipate and prevent problems in the HR area. He also gives
ideas to solve problems faced by the organisation.
(iv) The Welfare Role: Welfare facilities improve the physical, economic, intellectual and moral
well-being of workers. The HR manager focuses his attention in providing and improving
welfare facilities for employees. He takes steps to provide facilities more than what is
mandatory.

(v) The Mediator: The HR manager acts as the link between management and workers. He
conveys the problems of workers to management and the management thinking to workers. He
plays the role of a peace keeper and resolves conflicts.
(vi) The Legal Role: The HR manager should ensure that government rules and regulations
relating to HR are followed. He plays an important role in collective bargaining, redressal of
grievances, enforcing discipline and settling disputes.
(vii)Change Agent: The HR manager improves the firm's capacity to change. He communicates
the need for change and overcomes resistance to change. He implements changes to make the
firm flexible and responsive.

COMPUTER APPLICATION IN HUMAN RESOURCE MANAGEMENT

The following are the applications of computers in HRM

HR Planning

(i) Analyse and project trends in promotion, transfers and separations.

(ii) Project future requirements for recruitment planning

(iii) Aid in career planning decisions

Computer Applications in Recruitment

(i) Utilisation of internet for advertising job vacancies.

(ii) Usage of social media sites such as Linkedin, Pinterest and Facebook for recruitment.

(iii) Matching qualifications of applicants with job requirements.

(iv) Targetting candidates using digital advertising technology that tracks websites they visit

(v) Computerised skills inventory gives information of employees who can fill higher positions.

(vi) Applicant tracking systems generate letters to candidates including interview offers and
rejections.

Computer Applications in Selection

(i) Online conduct of tests and evaluation of results.

(ii) Interviews conducted based on information generated by the computer.

(iii) Conducting studies to assess effectiveness of the interview process.

Computer Applications in Training and Development

(i) Assessment of training needs.

(ii) Computer Based Training and Computer Aided Training.

(iii) Use of computer based simulation in training.

(iv) Delivery of training materials through the internet to enable anytime, anyplace and anywhere
learning.

(v) Analysing effectiveness of training by comparing productivity before and after training
programs.

Computer Applications in Career Planning

(i) Identification of high potential performers for fast track career growth (ii) Computer Assisted
Career Guidance Systems (CAGS) (iii) Efficiently update large quantities of employee
information.

Computer Applications in Industrial Relations

(i) Used in negotiations between the management and trade union (ii) Tracking grievances
reported and resolved. (iii) Monitoring accident rates to assess effectiveness of safety measures.

HUMAN RESOURCE AUDIT:

Introduction:

HR audit is an objective and systematic inquiry to find the effectiveness of the HR

department and its functions. It reviews human resource policies, procedures, documents and
systems to identify areas requiring improvement. It verifies whether the HR function has
complied with legal regulations and throughout the organisation. It not only determines the
effectiveness of HR company policies. It makes sure that HR policies are followed uniformly
practices but also measures their cost to the organisation.

HR audit covers human resource functions of recruitment and selection, training and
development, compensation, performance appraisal, promotions and transfers, discipline,
grievances and employee separation. It is conducted by company officials or by outside experts.
Though it is not mandatory, companies undertake HR audit to improve the efficiency of HR
functions.
 Definitions:

HR audit is defined as a way of assessing the nature and impact of human resource
department activity at particular points in time. Rosemary Harrison

Human Resource Audit is a systematic assessment of the strengths, limitations and

developmental needs of its existing human resources in the context of organisational
performance. Flamholtz

FEATURES OF HR AUDIT

(1) HR audit is an objective assessment of the HR function of an organisation.

(ii) It is carried out regularly, usually every one year.

(iii) It can be conducted by company officials or by outside experts.

(iv) Data relating to various aspects of HR activities is collected. This data is the basis for
conduct of the audit.

HUMAN RESOURCE MANAGEMENT PRACTICES IN INDIA

Human resource management (HRM) practices in India are evolving, with a shift towards
strategic approaches that encompass talent acquisition, development, and retention, alongside
traditional compliance and administrative functions. Key practices include recruitment and
selection, training and development, performance management, compensation and benefits, and
employee relations. Organizations are also focusing on creating a positive work environment,
fostering employee well-being, and adapting to technological advancements.

Key HRM Practices in India:

 Recruitment and Selection:

This involves attracting and hiring qualified individuals, often utilizing online platforms and
campus recruitment.

 Training and Development:

Companies invest in training programs to enhance employee skills and knowledge, including
on boarding, skill development, and leadership training.

 Performance Management:

Regular performance appraisals, feedback mechanisms, and goal setting are used to assess and
improve employee performance.
 Compensation and Benefits:
 Competitive salary packages, health insurance, and other benefits are offered to attract and
retain talent.
 Employee Relations:
Creating a positive work environment, addressing employee grievances, and promoting open
communication are crucial aspects.
 Employee Well-being:
Initiatives like flexible work arrangements, work-life balance programs, and wellness programs
are increasingly being implemented.
 Diversity and Inclusion:
Organizations are focusing on building a diverse and inclusive workforce, promoting equal
opportunities, and creating an inclusive culture.
 Technology Adoption:
HRM systems and tools are being adopted to streamline processes, manage data, and enhance
HR operations.
 Employer Branding:
Companies are actively building their employer brand to attract top talent and create a positive
image.