Introduction Human Resource Management


“ If you want 10 days of happiness, grow grain. If you want 10 years of happiness, grow a tree. If you want 100 years of happiness , grow people”. Organizations require many things in order to be effective: a method of producing, a way of marketing whatever product or service is created, and human resources. While all of these things are important to organizational effectiveness, the only factor that represents a potential competitive advantage is human resources and how these resources are managed.

Human Resources are the most valuable and unique assets of an organization. The successful management of an organization’s human resources is an exciting, dynamic& challenging task especially at a time when the world has become a global village .

The total knowledge, skill, creative abilities, talents and aptitudes of an organization’s workforce, as well as the value, attitudes and beliefs of the individuals involved.


Human resource (HR) management refers to the practices and policies you need to carry out the personnel aspects of your management job, specifically, acquiring, training, appraising, rewarding, and providing a safe and fair environment for your company’s employees.

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HRM is a Management function that helps managers recruit, select, train & develop members of an organization. It is concerned with people’s dimension in organizations. HRM is one of the functional areas of management and it has replaced the term ‘personnel Management’. It represents a new model of management with a different value system. It is based on ideas and techniques developed to enhance worker motivation, productivity & performance.

Definition: Human Resource Management is defined as a strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives.

Why Is HR Management Important to All Managers?
Personnel mistakes you don’t want to make  Hiring the wrong person for the job  Experiencing high turnover  Finding employees not doing their best  Having your company taken to court because of your discriminatory actions  Having your company cited under federal occupational safety laws for unsafe practices

HRM is concerned with the people’s dimension in organizations. - It is people who staff and manage organizations - HRM involves the application of management functions and principles. - Decisions on different aspects of employees must be consistent with HR decisions. - Decisions must influence the effectiveness of the organizations which must result in betterment of services to the customers. - HRM functions not confined to business establishments only. They are applicable to nonbusiness organizations too.

Control: HR Audit HR Accounting HRIS Acquisition: HR Planning, Recruitment , Selection, Placement.


Maintenance: Remuneration, Motivation, Health & Safety Social Security, Industrial Relations Performance Appraisal

Development: Training, Career Development, Organization Development, Internal Mobility


It is a process of improving, moulding and changing the skills, knowledge, creative ability, aptitude, attitude, values commitment, etc., based on present and future job and organizational requirements.

Scope of HRD






1.Performance Appraisal: It is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. 2. Training: It is a process of imparting the employees the technical and operating skills and knowledge. 3. Management Development: It is the process of designing and conducting suitable executive development programs so as to develop the managerial and human relations skill of employees.

4. Career Planning and development: It is the planning of one’s career and implementation of career plans by means of education, training, job search and acquisition of work experiences.

Features of HRM

HRM is concerned with employees both as individuals and as a group in attaining goals Is concerned with the development of human resource HRM covers all levels(top, middle, low) and categories (unskilled, skilled, technical, professional) of employees It appeals to the employees in all types of organizations in the world

Is a continuous never ending process Integrated approach aiming at attaining goals of individuals, organisations & society Is concerned with managing Human Resource at work Central subsystem of an organization Aims at securing unreserved cooperation from all employees

Functions of HRM

Managerial Functions Planning: It is a pre-determined course of action. Planning is future oriented concerned with clearly charting out the desired direction of business activities in future. Forecasting is one of the important elements in the planning process. Other functions of managers depend upon planning function. Organising: It is a process by which the structure and allocation of jobs are determined. It involves giving each subordinate a specific task, establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates.

Staffing: This is a process by which managers select, train, promote and retire their subordinates. This involves deciding what type of people should be hired, recruiting prospective employees, selecting employees, setting performance standards, compensating employees, evaluating performance, counselling employees, training and developing employees. Directing: It is the process of activating group efforts to achieve the desired goals. It includes activities like getting the subordinates to get the jobs done, maintaining morale, motivating subordinates, etc for achieving the goals of the organisation.


Controlling: It is the process of setting standards for performance, checking how actual performance compares with these set standards, and taking corrective actions as needed. OPERATIVE FUNCTIONS Employment: It is concerned with procuring right kind of people in appropriate number to be placed necessary to achieve the organizational objectives. It covers functions such as Job analysis: It is the process of study and collection of information relating to the operations and responsibilities of a specific job.


Human Resource Planning: It is a process for

determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization.

Recruitment: It is the process of searching for Selection: It is the process of ascertaining the

prospective employees and stimulating them to apply for jobs in an organization.

qualifications, experience, skill, knowledge, etc of an applicant with a view to appraising his/ her suitability to a job.



Placement: It is the process of assigning the selected candidates with the most suitable job in terms of job requirements. It is process of matching employee specifications with job requirements. Induction and Orientation: These are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and people, etc of the organization.

Human Resource Development: It is the improving, moulding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment, etc, based on present and future job and organizational requirements. - Performance Appraisal: It is the systematic evaluation of individuals with respect to their performance on the job and their potential for development.




Training: It is the process of imparting the employees the technical and operating skills and knowledge. Management Development: It is the process of designing and conducting suitable executive development programs so as to develop the managerial and human relations skill of the employees. Career Planning and Development: It is the planning of one’s career and implementation of career plans by means of education, training, job search and acquisition of work experience.


Organization Development: It is a planned process designed to improve organizational effectiveness and health through modifications in individual and group behavior, culture and systems of the organization using knowledge and technology of applied behavioral science. Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures.

Maintenance: It is concerned with protecting and promoting employees while at work. For this purpose, various benefits such as housing, medical, educational, transport facilities, etc are provided to the employees. Several security measures like provident fund, pension, gratuity, group insurance, etc are also arranged. It is important to note that the managerial and operative functions of HRM are performed in conjunction with each other in an organization, be large or small organizations.

Objectives of HRM
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To create and utilize an able and motivated workforce To establish and maintain sound organizational structure and desirable working relationships To secure the integration of individuals and groups with the organization To create facilities and opportunities for individual or group development To attain effective utilization of human resources

To identify and satisfy individual and group needs To maintain high employee morale and sound human relations To strengthen and appreciate the human assets continuously To provide an opportunity for expression and voice in management To provide fair, acceptable and efficient leadership. To provide facilities and conditions of work and creation of favorable atmosphere.

Objectives of HRM

Social Objectives Organisational Objectives Functional Objectives Individual Objectives

Social Objectives

Supportive Functions Legal Compliance Benefits – in monetary terms Union-management relations

Organizational Objectives
-Supportive Functions  HR Planning

Employee relations Selection Training and Development

Functional Objectives
- Supportive Functions  Appraisal

Placement Assessment

Individual Objectives
- Supportive Functions  Training and Development

Appraisal Placement Compensation Assessment

HRM Policy:
a set of proposals and actions that act as a reference point for managers in their dealings with employees. Personnel policies guide the course of action intended to accomplish personnel objectives. Ex: One of the personnel objectives of Indian Railways is to provide equal employment opportunities to the people of minority sections.

HRM Procedure:  a well thought out course of action. It prescribes the specific manner in which a piece of work is to be done.  Procedures are called “action guidelines”. They are generally derived from the policies.  Policies define a broad field , procedures show a sequence of activities within that area.  The basic purpose is to spell out clearly the way one is to go about doing something.

Need for HRM Policies
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Consider the favoritism & discrimination in treating the employees Minimise favoritism and discrimination in treating the employees. Ensure that the action will be continued though the managers in keys jobs. Have standards of performance. Create and develop employee enthusiasm and loyalty.

Advantages of HRM Policies
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Delegation Uniformity Better Control Standards of Efficiency Confidence Speedy decisions Co-ordinating devices

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Characteristics of a Sound HR policy
Related to Objectives Easy to understand Precise Stable as well as flexible Based on facts Appropriate number Just, fair and equitable Reasonable Review


Manager Personnel Dpty Mgr Dpty Mgr Dpty Mgr Employment Salary&Benefits HRD Asst Mgr Training Dpty Mgr Indl Rel Dpty Mgr Orgnal Climate

Asst Mgr Asst Mgr Exctv Dvpmnt Career Plng &Dvpt Persnl Officer Senior

Persnl Officer Junior

Divisonal Mgr - Personnel Dpty dvsnl mgrEmployment Dpty dvsnl mgrIndl Relations Branch Personnel Officer

Line Versus Staff Authority

Authority is the right to make decisions, to direct the work of others, and to give orders

Line Versus Staff Authority

Line managers are

Staff managers

authorized to direct the work of subordinates in charge of accomplishing the organization’s basic goals

assist and advise line managers in accomplishing these goals HR managers are generally staff managers

Line Managers’ H R Responsibilities
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Placing the right person in the right job Starting new employees in the organization Training employees for jobs that are new to them Interpreting the company’s policies and procedures Controlling labor costs Protecting employees’ health and physical conditions

Human Resource Department’s Management Responsibilities

Advice and counsel: The H R manager serves as an inhouse consultant to supervisors, managers and executives. They can be an invaluable resource for decision making. H R managers are also being relied on more heavily to advise compensation committees. Service: H R managers perform a host of service activities such as recruiting, selecting, testing, planning and conducting training programs and hearing employee concerns and complaints. Managers must be convinced that the HR is there to help them increase their productivity rather than impose obstacles to their goals. This requires a skill on the part of HR to communicate with the managers as well as executives.

Policy formulation and implementation: HR

managers generally propose and draft new policies or policy revisions to cover recurring problems or to prevent anticipated problems. These are proposed to the senior executives. However, HR may monitor the performance of line and staff departments to ensure conformity with the established HR policies, procedures and practices. Employee Advocacy: H R managers serve as an employee advocate, that is, listening to employee’s concern and representing their needs to the managers. Effective employee relations provide a support structure when disruptive changes interfere with normal daily activities.

Role of Human Resources Manager
1) Conscience Role 2) The Counselor 3) The Mediator 4) The Spokesman 5) The Problem Solver 6) The Change agent

Personnel Role

Welfare Role

Role of Personnel Manager
Clerical Role Fire-Fighting Role

Role of Personnel Manager Personnel Role
a) Advisory b) Manpower Planning c) Training & Development d) Measurement & assessment of individual and group behavior

Qualities of a HR Manager

Fairness and Firmness: HR should be fair in matters of promotions, demotions, transfers, layoffs, and be firm in enforcing discipline. Tact & Resourcefulness: HR must be tactful in dealing with difficult situations Tact implies determining what is good and fair in trying conditions, and skill in dealing with the most demanding situations.

Knowledge of labor & other items: HR must possess a sound knowledge of the constitution and other acts that influence labor interests. HR must be aware of the government’s policy towards labor and general economic conditions prevailing at a given time. Broad Social Outlook: Social Responsibility of business is a topic much discussed these days. It is desirable that the HR has a social outlook and contributes towards the betterment of quality of life of the employees and those who live around and beyond the company.

Competence to perform: HR must have the competence to perform activities relating to personnel better than his/her subordinates. His/her confidence would equip to face adverse situations with courage.

Factors affecting HRM

Technological factors: Technological change has
led to change in the demand for skilled candidates. It is found that procurement of skilled employees and their increase in the numbers to match the changing job requirement has become a complicated task.


Structure, values and education in a country:

Structure: The structure of employment has changed due to the entrance of workforce from different backgrounds. Organizational workforce is composed of people from different regions, due to increased transportation facility and mobile character of people.


Employee Values: Earlier the management
decided and the employees had to follow obediently. But gradually, this relationship has been replaced by the relationship where employees and management are partners. Even though there are good inputs of new values like emphasis on quality of life, work life balance, equality in gender, participation authority, fringe benefits, etc are provided, there has been negative change in values like decline in work ethics.



Education: Increased formal

education has led to the changes in the attitude of employees. The well educated employees always challenge and question the management’s decision and want a voice in company affairs affecting their interest. Increased level of education has also increased the level of expectation from both employers and employees.


Legal and government factors:

To mention a few important legislations affecting HRM are Factories Act, Trade Unions Act, The Payment of Wages Act, The Minimum Wages Act, The Employees State Insurance Act, Workmen’s Compensation Act, The payment of Bonus Act, and so on.  Employee’s Organization: These are power blocks in several countries including India. The issues related to employees are discussed with these unions.

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Customers Social Factors Economic Factors Political Factors

Considering the complexities and the challenges in the HRM, the management has to develop sophisticated techniques and efficient specialists to manage the personnel on sound lines.

Meeting Present and Emerging Human Resource Challenges

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Rapid change Workforce diversity Globalization Internet revolution Legislation Evolving work and family roles Skill Shortages Rise of the service sector

Key HR Challenges for Today’s Managers: Environmental

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Quality, distinctive capabilities Decentralization Downsizing Organizational restructuring Self-managed work teams Small business growth Technology Outsourcing

Key HR Challenges for Today’s Managers: Organizational

Key HR Challenges for Today’s Managers: Cultural

Basic assumptions and beliefs shared by members of an organization…

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rules, norms behaviors philosophy dominant values feeling or climate

Key HR Challenges for Today’s Managers: Individual
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Matching people and organizations Ethical dilemmas Social responsibility Productivity Empowerment Brain drain Job insecurity

Challenges in HRM
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Going Global Embracing new technology Managing change Managing talent Responding to market Managing the Vision Building Organizational capability Managing Human Relations

The word ‘strategy’, deriving from the Greek noun strategus, meaning ‘commander in  chief’, was first used in the English language in 1656. The development and usage of  the word suggests that it is composed of stratos (army) and agein (to lead). In a  management context, the word ‘strategy’ has now replaced the more traditional  term – ‘long-term planning’ – to denote a specific pattern of decisions and actions undertaken by the organization in order to accomplish performance goals

Strategic HRM

Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance.

Human Resources as a Strategic Partner

Although many HR functions have begun to play a strategic role in guiding succession management, knowledge retention, and other enterprise-wide initiatives, there is still opportunity for such functions to improve and truly transform key influencers and decision-makers .

The pressing need for organizations to maintain a diverse pool of talented leaders, capture expertise from exiting employees, and outsource transactional activities to focus on core capabilities has heightened the importance of the HR function. The corporate HR function sets the strategic tone and provides specialized knowledge and direction while HR generalists implement and adapt to fit the needs of specific business groups.

A healthy tension exists between the policy directives determined by corporate HR and the diverse needs of various business units, but the best practitioners are able to achieve a healthy balance because of their deep understanding of current HR practices, corporate strategy and divisional business objectives. For example, at Texas Instruments (TI) the leadership and HR have engaged in a strategic initiative aimed at reducing the costs of turnover and low morale resulting from expansion and contraction associated with the business cycle by using outsourced workers to provide a more flexible work force.

For HR to be an effective strategic partner in any organization, the HR professionals must understand two things: The business of the business and Knowledge of the business, support for the strategy, and the ability to translate every activity to strategic objectives undergird the success of our best practice leaders

HR work begins with the business, not HR. Another aspect of becoming a strategic partner with the business is demonstrating support for organizational/business strategies through alignment with those strategies. Such alignment puts HR in a better position to deliver value, which thereby demonstrates credibility

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Key questions to ask to ensure that HR is a key player in the organization’s strategic process include the following: What organizational capabilities must our organization have to gain and/or maintain a competitive advantage? What abilities do HR personnel need so that they can understand and respond to short-term and long-term market demands? How do we organize HR activities to deliver maximum value? How do we create an HR strategy that sets an agenda for how HR will help our company succeed?

Personnel vs. HRM

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