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Subject - Human Resource Management
Unit –I
Introduction to Human Resource Management
1.1 - Meaning
1.2 - objectives
1.3 - Functions
1.4 - Importance of HRM
1.5 - Recent trends in HRM
1.1 – Meaning –
Human resource management is divided into two parts –
1. Human Resource and
2. Human Resource Management
 Human Resource - Human Resource means is a person (human) or employee that
works for an Organisation.
 Human Resource Management – Human resource management (HRM) is the
process of employing people, training them, compensating them, developing policies
relating to them, and developing strategies to retain them.
 Meaning of Human Resource Management -
Human resource management (HRM or HR) is the management of human resources. Human
resource management (HRM) it is independent or distinct and more important branch of
industrial management. This branch of knowledge relates to everyone from the chief manager
of the workforce working in the Organization at the enterprise level to the simple worker. As
a field, HRM has undergone many changes over the last twenty years, giving it an even more
important role in today’s organizations.
 Definitions of Human Resource Management -
1. Edvin Flippo –
“It is the planning, organising, directing and controlling of the procurement,
development compensation, integration, maintenance and separation of human
resources to the end that individual, organisational and social objectives are
accomplished.”
2. According to the Invancevich and Glueck –
“HRM is concerned with the most effective use of people to achieve organizational and
individual goals. It is the way of managing people at work, so that they give their best to
the organization”.
3. According to C.H. North Cott. –
“Labour resource management is an extension of general management that of prompting
and stimulating every employee to make his fullest contribution to the purpose of the
business”.
 Nature of Human Resource Management –
1. Pervasive Function
2. Result oriented
3. Tactful approach
4. People Centric
5. Integrative action
6. Continuous process
1. Pervasive Function –
HRM is practiced at all levels of Management and applies to all kinds of organizations, even
to non – profit organizations.
2. Result oriented –
It aims at achieving Organizational objectives through the optimum utilisation of human
resources.
3. Tactful approach –
HRM deals with the people who are distinct from one another; thus the manager needs to
apply diverse strategies and tactics at different point of time and in different situations.
4. People - Centric –
Human resource management is concerned majorly with the employees Working in an
Organisation.
5. Integrative Action –
It focuses on maintaining cordial relations among the employees with different levels and
also addresses employee grievances.
6. Continuous process –
HRM is on-going process of procurement, development and redirection of personnel towards
the organisational goals. It cannot be completed in a day, week or a month.
1.2 Objectives of human resource management -
1. 1.To ensure the effective utilisation of resources
2. To maintain organisational structure
3. To develop human resources
4. To respect for human beings
5. To maintain goal harmony
6. To ensure employee satisfaction
7. To ensure your employee discipline and moral
8. To increase organisational productivity
1. To ensure the effective utilisation of resources -
Human resource management ensures the effective utilisation of resources. Human resource
management teaches how to utilize human and non- human resources so that the goals can be
achieved. Organisational aiming to utilise their resources efficiently invites the HR
department to formulate required objectives and policies.
2. To maintain organisational structure
Organisational structure defines the working relationship between employees and
management. It defines and assign the task for each employee working in the organisation.
The task is to performed within the given constraints. It also defines positions, rights and
duties, accountability and responsibility, and other working relationship. The human resource
management system provides required information too timely and accurately. Hence, human
resource management helps to maintain organisational structure.
3. To develop human resources
Human resource management provides favourable environment for employees so that people
working in organisation can work creatively. This ultimately helps them to develop their
creative knowledge, ability and skill. To develop personality of employees, human resource
management organizes training and development campaigns which provide an opportunity
for employees to enhance their calibre to work.
4. To respect for human beings -
Another importance objective of human resource management is to provide a respectful
environment for each employee. Human resource management provides with required means
and facilitates employee along with an appropriate respect because the dominating tendency
develops that will result organisational crisis. Hence, all of them should get proper respect at
work. Human resource management focuses on developing good working relationship among
workers and managers in organisation. So, good human resource management system helps
for respecting the employees.
5. To maintain goal harmony -
Human resource management bridge the gap between individual goal and organisational goal
thereby resulting into a good harmony. Goal differences occurs, the employees will not be
willing to perform well. Hence, a proper match between individual goal and organisational
goal should be there in order to utilise organisational resources effectively and efficiently.
6. To ensure employee satisfaction -
Human resource management provides a series of facilities and opportunities to employees
for their career development. Will leads to job satisfaction and commitment. When the
employees are provided with every kind of facilities and opportunities, they will be satisfy
with their work performance.
7. To ensure employee discipline and moral -
Human resource management tries to promote employee discipline and moral through
performance-based incentives. It creates a health and friendly working environment
appropriate word design and assignment of jobs.
8. To ensure Organizational productivity -
Human resource management focuses on achieving higher production and most effective
utilisation of available resources. This leads to an enhancement in organisational goals
objectives.
1.3 Functions of Human Resource Management -
Human Resource Management (HRM) is a systematic approach that works to fill the gap
between an organization and its employees. Functions of HRM have been developed by the
Minister of Human Resource Development to simplify the task of managing the human
capital of the organization. These works are broadly classified into two categories:
1. Managerial Functions
2. Operative Functions
1. Managerial Functions:-
Human Resource Management (HRM) is required at all levels of an organization. Top
management is responsible for strategizing and directing the successful application of such
schemes. In this process, they perform the following functions:
a .Planning -
Planning is the first and basic function of management and everything depends on the plan;
before thinking of anything else, management needs to be aware of the vacancies or
workforce needs of the organization. After that, they are very much required to formulate a
strategy to meet future requirements. It is predetermined course of action. Planning pertains
to formulating strategies of personnel programmes and changes in advance that will
contribute to the organizational goals. It involves planning of human resources, requirement,
selection, training, etc.
b. Organizing –
The purpose of human resources is to bring together the available human resources and
physical resources with the organization; the manager sets a framework for operative tasks.
Along with organizing everything related to HR and the organization, Human resource
managers should be well aware that organizing is a process of creating and organizing
everything in a proper way to avoid any confusion and conflict. Thus, an organization
establishes relationship among the employees so that they can collectively contribute to the
attainment of company goals.
c. Directing –
Directing is a knowledge, discipline, and formal way of communicating to others what you
expect from them or an organization. The willing and effective co-operation of employees for
the attainment of organizational goals is possible through proper direction. Unless a human
resource manager has the ability to direct, a human resource manager cannot be said to be
full-fledged. When the HR manager has the right guidance capabilities, the manager instructs
the team to act accordingly and provides appropriate guidance to meet the organizational
objective.
d. Controlling
After, planning, organizing and directing various activities of personnel management, the
performance is to be verified in order to know that the personnel functions are performed in
conformity with the plans and directions of an organization. Controlling also involves
checking, verifying and comparing of the actuals with the plans, identification of deviations if
any correcting of identified deviations. Human resource managers must have full knowledge
of handling all matters related to human resources, as they must be fully capable of thinking
and deciding what should be done and what should not be done They also need to know how
employees should be treated and how not. Simultaneously he sets the standard for
management performance and subsequently analyses the results based on such criteria
through performance evaluation and job analysis.
2. Operative Functions:-
Operative functions are those that are performed at the departmental level or middle level and
are primarily concerned about the execution of plans and strategies created at the managerial
level. The operative functions of human resource management are related to specific
activities of personnel management e.g. employment, development, compensation and
relation. All these functions are interacted with managerial functions. Below we have
mentioned about various types of operative functions:
a. Procurement -
It is the first operative function of Human Resource Management. Acquisition of human
resources is the primary function of a manager. This includes all requirements of personnel,
Job analysis, Human Resource Planning, recruitment, and selection of suitable candidates, an
appointment to the right place of the workforce, and estimation of orientation.
Job analysis- it is the process of study and collection of information relating to the
operations and responsibilities of a specific job. It includes collection of data, information,
facts and ideas, providing the guides, plans and basis for job design and for all operative
functions of Human Resource Management.
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 and which would provide
satisfaction for the individuals involved. It involves calculation of net human resources
requirements based on present inventory of human resources, estimation of present and future
requirements and supply of human resources based on objectives and long range plans of an
organization.
Recruitment- it is the process of searching for prospective employees and simulative them to
apply for jobs in an organization. It deals with identification of existing sources of applicants
and developing them, creation or identification of new sources of applicants, striking a
balance between internal and external sources etc.
Selection- Selection means it is the process of asserting the qualifications, experiences, skills,
knowledge etc., of an applicant with a view to appraising his or her suitability of a job. This
function include formulating interviewing techniques , checking of references, framing and
developing application blanks, creating a developing valid and reliable testing techniques,
line managers decisions, sending letters of appointment and rejections, employing the
selected candidates who report for duty.
Placement- It is the process of assigning the selected candidate with the most suitable job in
terms of job requirements. It is matching of employee specifications with job requirements.
These functions include counseling the functional manager regarding placement, conducting
follow-up study, correcting miss placements, if any.
b. Human Resource Development –
It is the 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. This function includes performance appraisal, Training,
Management Development, Career Planning and Development, Internal mobility, etc. The
role of HR is to ensure that new employees acquire company-specific knowledge and skills
so that they can perform their tasks efficiently. This increases the overall efficiency and
productivity of the workforce, resulting in better business as well as greater profitability for
the company.
Performance appraisal - it is the systematic evaluation of individuals with respect to their
performance on the job and their potential for development it includes developing policies
procedures and techniques helping the functional managers reviewing of reports and
consolidation of reports and evaluating the effectiveness of various programs
Training - it is the process of imparting to the employees technical and operating skills and
knowledge it includes identification of training needs of the individuals and the company
developing suitable training programs helping and advising the management in the conduct of
training programs evaluating the effectiveness of training programs.
Management development - it is the process of designing and conducting suitable executive
development programs so as to develop the managerial and human relations skills of
employees it includes identification of the areas in which management development is needed
conducting development programs motivating the executives designing special development
programmers for promotions evaluating the effectiveness of executive development programs
Career Planning and development - it is the planning of one's career and implementation of
career plans by means of education and Training jobs search and activation of work
experience is it includes internal and external mobility
Internal mobility - it includes vertical and horizontal movement of an employee within an
organization it consist of transfer promotion and demotion.
Transfer - it is the process of placing employees in the same level jobs where they can be
utilized more effectively in consistency with their potential it is and needs of the employees
and the organization it also deals with developing transfer policies and procedures guiding
employees and line management on transfers evaluating the execution of transfer policies and
procedures
Promotion - it deals with a forward re assignment given to an employee in the organization
to occupy higher position which commands better status and air pic keeping in view the
human resources of the employees and the job requirements this functions cover the
formulating of equitable fair and consistent promotion policies and procedures
Demotion - it deals with downward reassignment to an employee in the organization develop
equitable fair and consistent demotion policies and procedures advising line managers on
matters relating to the motions oversee the implementations of demotion policies and
Procedures
Retention- employers prefer to retain more talented employees while their retrench less
talented employees modify existing human resource strategy and craft new strategies in order
to pay more salaries provide more benefits and create high quality of work life to retain the
best employees and management specialist to the less talented employees and planted a
trench the misfits as well as unwanted employees depending upon the negative business
trends
c. 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 etc.
Job Evaluation – It is the process of determining relative worth of jobs. It involves select
suitable job evaluation techniques, classify jobs into various categories, determining relative
value of jobs in various categories, etc.
Wage and Salary Administration – This is process of developing and operating a suitable
wage and salary programme. It covers, conducting wage and salary survey, determining wage
and salary rates based on various factors, evaluating its effectiveness, etc.
Incentives – It is the process of formulating, administering and reviewing the schemes of
financial incentives in addition to regular payment of wages and salary. It includes,
formulating incentive payment schemes, review them periodically to evaluate effectiveness,
etc.
Bonus – It includes payment of statutory bonus according to the payment of Bonus Act, 1965
and its latest amendments.
Fringe Benefits – These are the various benefits at the fringe of the wage. Management
provides these benefits to motivate the employees and to meet their life’s contingencies.
These benefits includes- Disablement benefit, Housing facilities, Canteen facilities, Credit
facilities, Medical, maternity and welfare facilities, etc.
Social Security Measures – Managements provide social security to their employees in
addition to the fringe benefits. These measures include- Sickness benefits and medical
benefits, Dependent benefits, Retirement benefits like provident fund, pension, gratuity, etc.,
Maternity benefits and medical benefits, etc.
d. Human Relations –
Practicing various human resources policies and programmes like employment, development
and compensation and interaction among employees create a sense of relationship between
the individual worker and management, among workers and trade unions and the
management. It is process of interaction among human beings. Human relations is an area of
management in integrating people into work situations in a way that motivates them to work
together productively, co=operatively and with economic, psychological and social
satisfaction. It includes – Motivating the employees, Boosting employee morale, Developing
the communication skills, Developing the leadership skills, Improving quality of work life of
employee through participation and other means, Counselling the employees in solving their
personal, family and work problems and releasing their stress, strain and tensions, etc.
e. Industrial Relations -
The term ‘Industrial relations’ refers to the study of relations among employees, employers,
government and trade unions. Industrial relations include- Indian labour market, Trade
unionism, Collective bargaining, Industrial Conflicts, workers participation in management
and Quality circles, etc.
f. Recent trends in HRM -
Human resources management has been advancing at a fast rate. The recent trends in HRM
include - Quality of work life, Total quality in human resources, HR accounting, audit and
research and Recent techniques of HRM, etc.
1.4 Importance of Human Resource Management -
Human Resource Management (HRM) is a modern approach of maintaining people at
workplace which focuses on acquisition, development, utilization and maintenance of human
resource. HRM is development oriented. It is concern of managers of all level and provides
space for employee involvement, performance and growth. Several companies nowadays
prefer HRM to personnel management because HRM plays vital role in maintaining quality
team of working experts.
1. To maintain quality of work life
2. To increase productivity and profit
3. To produce employees who are easily adaptable to change
4. To match demand and supply of human resource
5. To retain employees and motivate them to accomplish company’s goal
6. To recognize merit and contribution of employee
7. To create a feeling of belongingness and team spirit in the employee
8. To sustain business in the market
9. To resolve conflicts
10. To develop corporate image
11. Other Importance
1. To maintain quality of work life -
Quality of work life is the perception of employees regarding the relationship between
working condition with management. Simply, it is the relationship between employees and
total work environment. Quality of work life is concerned with the employee’s perception of
physical as well as psychological wellbeing at workplace and it can be obtained by
maintaining work autonomy, work freedom, job recognition, belongingness, rewards, etc.
2. To increase productivity and profit -
Human resource management ensures right quality and quantity of personnel in workplace,
apart from which, it creates opportunities to facilitate and motivate individual and group of
employees to grow and advance their career. Motivated employees work hard to meet their
personal career goal which directly influences productivity of organization. Minimizing cost
and maximizing profit is the essence of productivity.
3. To produce employees who are easily adaptable to change -
Human resource management performs various functions, among which training and
development of employees is one of the vital ones. Training and development programs keep
employees updated with skills necessary to adjust with alteration of organization’s
environment, structure and technology.
4. To match demand and supply of human resource –
Human resource management probes existing human resource in certain interval of time to
identify if the company has adequate number of workers or not. In case when company has
inadequate human resource, human resource management performs activities like recruitment
and selection to balance the need. In the same way, it lay-off inefficient employee in case
when the company has excessive employees.
5. To retain employees and motivate them to accomplish company’s goal -
Utilizing human resource to their fullest and maintaining them in the company for a long
term is a major function of human resource management. Under this function, HRM performs
tasks like providing fringe benefits, compensation and rewards to the deserving employees.
These activities do not only help in retaining employees in the company but also in achieving
organization’s goal effectively.
6. To recognize merit and contribution of employee –
Human resource management performs timely appraisal of employee’s performance in order
to recognize excellent and poor workers. The excellent workers are then rewarded as a return
for their contribution.
7. To create a feeling of belongingness and team spirit in the employee –
Human resource management designs job on the basis of teamwork. As teamwork demands
contribution from every team member, HRM focuses on making each and every employee
feel valued so that employee contributes best from their side.
8. To sustain business in the market –
Human resource management makes sure that the company has the best employee because
promising employees are capable of taking their company ahead in the race by delivering
excellent results. This guarantees organization’s success and stability in future.
9. To resolve conflicts –
In any company, either big or small, conflicts may arise between any parties/group. Conflicts
are inevitable and they should not be ignored. Human resource management acts as a
consultant to sort out such conflicts timely and conduct other organizational activities
smoothly.
10. To develop corporate image –
Every company should maintain good public image in order to sustain in the market. Any
individual would like to work for companies which are known for moral and social
behaviour. On the other hand, companies that do not treat their employees in a good manner
can run through employee deficiency and even collapse
11. Other Importance-
 Formulation of HR policies
 Implementation of HR policies
 Review of employee needs
 Utilization of Human Resource, etc.
1.5 Recent Trends in HRM –
1. Personnel Records
2. Human Resource Audit
3. Human Resource Research
4. Human Resource Accounting
5. Human Resource Information Systems
6. Stress and Counselling
7. Global Human Resource Management
8. “Repurposing” your Human Capital
9. Using Technology to Recruit
10. Reinvesting Talent Acquisition
1. Personnel Records :
Personnel Records are records pertaining to employees of an organization. These records are
accumulated, factual and comprehensive information related to concern records and detained.
All information with effect to human resources in the organization is kept in a systematic
order. Such records are helpful to a manager in various decisions -making areas. Personnel
records are maintained for formulating and reviewing personnel policies and procedures.
Complete details about all employees are maintained in personnel records, such as,
name, date of birth, marital status, academic qualifications, professional qualifications,
previous employment details, etc.
 Types of Personnel Records -
Records of employment contain applicants past records, list sources, employees progress,
medical reports, etc.
 Wages and salaries records contain pay roll records, methods of wages and salaries,
leave records, turnover records and other benefit records.
 Training and development contains appraisal reports, transfer cases, training schedule,
training methods.
 Health and safety records include sickness reports, safety provisions, medical history,
insurance reports, etc.
 Service Records are the essential records containing bio-data, residential and family
information, academic qualifications, marital status, past address and employment
records.
 Purposes of Personnel Records -
According to the critics of personnel records, this system is called as a wastage
of time and money. According to personnel records, followers of this : Dale Yoder, an
economist of Michigan University, USA has justified the significance of personnel
records after making an in-depth study. It helps to supply crucial information to
managers regarding the employees. To keep an update record of leaves, lockouts,
transfers, turnover, etc. of the employees. It helps the managers in framing various
training and development programmes on the basis of present scenario. It helps the
government organizations to gather data in respect to rate of turnover, rate of
absenteeism and other personnel matters.
It helps the managers to make salary revisions, allowances and other benefits related
to salaries.
It also helps the researchers to carry in- depth study with respect to industrial relations
and goodwill of the firm in the market.
Therefore, personnel records are really vital for an organization and are not a wasteful
exercise.
2. Human Resource Audit-
Human resource auditing is the process of evaluating various human resource programs and
practices in order to determine whether or not they serve their intended purposes. This
process is extremely thorough and usually involves multiple individuals and assessments. The
audit will typically investigate company compliance with laws and procedures, and identify
areas where improvement is needed. If the company does comply with the rules and
procedures set forth by government regulations and company policy, the human resource
audit will determine whether or not they are being implemented properly. Companies that
schedule periodic human resource audits will gain in-depth knowledge about the structure of
the company and the behaviour of its employees. The audit will also determine the amount of
human capital the company currently has access to.
 Why Are HR Audits Important?
An HR audit is the only way you can fully assess whether your HR processes and policies are
benefiting or harming your overall business. If you’re in danger of a lawsuit or criminal suit,
if your HR systems are inefficient, if your employees aren’t developing, or if you can’t attract
the right employees, your business will suffer. Improve those areas, and you can improve
your chances for success.
3. Human Resource Research -
The study of human resource practices and activities gives the extent of success or failure of
policies and practices. Research on HRM activities provides an understanding of what does
work, what does not work, what needs change, the nature and the extent of change. HR
research is, “the task of searching for, and analyzing of facts to the end that HR problems
may be solved or principles and laws governing their solutions derived.”
 According to Michael J. Jucius, - “HR research is the task of searching for and
analysing of facts to the end that HR problems may be solved or principle and laws
governing their solution derived”.
 According to Dale Yoder, “HR research is a shortcut to knowledge and understanding
which can replace the slower, more precarious road of trial and error in experience. It
implies searching investigations, re-examinations, reassessments and revaluation. It is
a purposive and systematic investigation designed to test carefully considered
hypotheses or thoroughly framed questions”.
Research is not the sole responsibility of any one particular group or department in an
organization. The initial responsibility is that of the personnel department which, however,
should be assisted by line supervisors and executives at all levels of management. The
assistance that can be rendered by trade unions and other organizations – for example,
educational institutions, private research groups and governmental agencies – should not be
ignored but should be properly made use of.
Human resource research areas are often identified in terms of high or low appearance –
selection, opinion measurement, training and development, appraisal, motivation,
organisational effectiveness, managerial obsolescence, counselling and retirement.
Managerial selection and development and general employee motivation have generally been
identified as the two main human resources areas which are in the greatest need of additional
research.
4. Human Resource Accounting -
Human Resource Accounting provides information about the total cost of human assets,
which can use for calculating their benefits for business by comparing it with the benefits
provided by employees. The main purpose of Human Resource Accounting is to help human
resource professionals and senior managers to use the human resources of an organization
efficiently and effectively. Human Resource Accounting (HRA) is the process of identifying,
and reporting investments made in the human resources of an organization that are presently
unaccounted for in the conventional accounting practice. It is an extension of standard
accounting principles. Measuring the value of the human resources can assist organizations in
accurately documenting their assets. In other words, human resource accounting is a process
of measuring the cost incurred by the organization to recruit, select, train, and develop human
assets.
Human resources are considered as important assets and are different from the physical
assets. Physi-cal assets do not have feelings and emotions, whereas human assets are
subjected to various types of feelings and emotions. In the same way, unlike physical assets
human assets never get depreciated.
Therefore, the valuations of human resources along with other assets are also required in
order to find out the total cost of an organization. In 1960s, Rensis Likert along with other
social researchers made an attempt to define the concept of human resource accounting
(HRA).
 Definition:
1. The American Association of Accountants (AAA) defines HRA as follows: ‘HRA is a
process of identifying and measuring data about human resources and communicating this
information to interested parties’.
 Methods of Valuation of Human Resources:
There are certain methods advocated for valuation of human resources. These methods
include histori-cal method, replacement cost method, present value method, opportunity cost
method and standard cost method. All methods have certain benefits as well as limitations.
5. Human Resource Information Systems –
HRIS stands for Human Resources Information System. The HRIS is a system that is used to
collect and store data on an organization’s employees. In most cases, an HRIS encompasses
the basic functionalities needed for end-to-end Human Resources Management (HRM). It is a
system for recruitment, performance management, learning & development, and more. An
HRIS is also known as HRIS software.
HRIS stands for human resources information system. It’s related to human resources
management system (HRMS) and human capital management (HCM), but there are some
subtle differences among the three.
 HRIS vs. HRMS vs. HCM
Both HRIS and HRMS can help employers manage various aspects of HR, such as payroll,
benefits administration and compliance. Where they may differ is talent and performance
management, which is sometimes exclusive to HRMS. HCM, meanwhile, refers to the broad
set of people management practices that can be accomplished with HRIS and HRMS.
6. Stress and Counselling –
Each employee is connected to each other through internal network, hence time bound
accomplishment of task is expected from superiors. They accumulate data and pass it on to
their seniors. This chain of information carries on up to the CEO level. The time bound
expectation of job accomplishment, the data and figures at the end of the week, month,
quarter, half yearly and yearly basis be communicated to superior. The entire process from
manufacturing to retail or consumer is done to fight competition, hence the entire chain from
the raw material stage to finish product is on very low inventory.
Besides professional issues, there are pressures of meeting family expectations, education of
children, late working hours and compatibility among spouse. Organizations have realized
that employees go under stress and their HR department evolved few activities like having a
Gym-room for doing quick workouts, healthy meals during working hours, approving
holidays and finance pleasure trips to unwind themselves and also health checkups.
Employees have been provided gadgets, and they can access any information in seconds and
communicate in faster speed. The soft-wares work in very high speed and with a high level of
accuracy.
Counseling -
Emotions are part of the nature of human beings and emotional upsets are part of their life. It
is sometimes more disastrous to suppress emotions. The emotional problems affect the
interest of the employees him - self and the organization in which he is working for. The
problems may reduce their productivity, morale and increase absenteeism. Hence the
managers should take steps to maintain a reasonable emotional balance of their employees
and channelize their emotions on the constructive lines. The instrument with which the
managers can achieve such balance is called counseling.
Counseling is a method of understanding and helping people who have technical, personal
and emotional or adjustment problems that usually has emotional contents that an employee
with the objective of reducing it so that performance is maintained at adequate level or even
improved upon.
7. Global Human Resource Management –
HR managers are responsible for the hiring, training, termination, and legal compliance of
company employees. Global HR managers are responsible for the same important tasks, but
on an international scale. Anytime a company expands internationally, they are faced with a
numbers of challenges. A strong global human resources team is a vital component of
international expansion. Whether a company is looking to hire domestically or
internationally, the goal is always to find the most qualified candidate to fill the position.
Understanding the job description and the desired skill set is essential to finding the right
candidate for the job. Training is required for all employees to fully understand their job
functions and company policies and procedures. While it is always important to maintain
consistency with onboarding new employees, it is especially important when operating on a
global scale. To ensure the same message is delivered to all employees, global HR managers
should use the same onboarding process at every company location. Legal compliance is a
huge responsibility for human resources, both domestically and internationally. To avoid
legal trouble, it is critical that HR understands, abides by, and helps the company to enforce
all legal requirements. Global HR managers are also responsible for ensuring employees who
are working internationally have all the resources they need to successfully transition into a
new country and culture. Since global HR managers understand cultural and legal
differences, they are well equipped to help relocated employees settle into their new role.
Global HR Managers are also able to maintain control of company operations. If every
location’s HR department acted independently, consistency and control would be a challenge
to maintain. By having Global HR Managers to oversee the company in its entirety, the
company is better able to maintain control of their international locations and overall
company brand, policies, and procedures.
International human resource management (IHRM) is the procurement, allocation, utilization,
and motivation of, human resources in the international area. International HRM is critical to
the strategy and success of global operations. There is evidence that culture and people issues
are the biggest roadblocks to global success. It is also found that the problem of hiring quality
personnel ranked as one of the main factors inhibiting expansion of US foreign investment in
Japan. These problems can be avoided by appointing people with significant experience in
foreign and international operations. The distinct features of International HRM are
multiculturalism and geographic dispersion as well as the need to address issues such as
international taxation, relocation and foreign cultures orientation. IHRM also generates more
involvement in personnel life. An international business must procure, motivate, retain, and
effectively utilize services of people both at the corporate office and at its foreign plants.
8. “Repurposing” Your Human Capital
Finding it difficult to hire, managers often forget about one of the most effective tactic HR
specialists sometimes use – moving current workers to available job opportunities across the
company. Of course, any given person must possess the particular skills that are relevant to
carry out the role’s responsibilities. A second and no less effective tactic is to use alternative
human capital, such as contractors, freelancers and outsourcing partners. This approach to
talent acquisition works best for companies facing rapidly changing business conditions. For
example, if you need to urgently reinvent one of your technology systems like ERP and don’t
have skilled in-house specialists. In that case, you can outsource your new technology project
to a dedicated development team. In accordance with global trends in the alternative
workforce, modern enterprises have an amazing opportunity to cooperate with vendors,
contractors, outsourcers and freelancers who are located overseas. Besides, this kind of
potential labor capital is typically cheaper and, thanks to up-to-date technologies, easily
accessible.
9. Using Technology to Recruit
With strong screening and sourcing technologies in place, HR managers can recruit and hire
first-class specialists in a timely manner. Unfortunately, not everyone has such capabilities at
their disposal. Having optimized technology at your fingertips allows recruiters and HR to
find, source and select candidates more efficiently. They are able to focus on data-driven
decisions – strongly considered the best approach to hiring procedures.
A vivid example of how new technology influences HR processes is the use of modern tools
powered by artificial intelligence. For example, modern organizations are now using
Chabot’s to optimize their application processes. Among other human resources best
practices, there is the rise in video interviewing, which allows HR teams to screen and select
the candidates who best match any position’s roles and responsibilities.
Machine-learning tools can also work wonders in your recruiting processes, helping you to
create a complete image of potential candidates. These tools provide huge benefits to modern
businesses by automating hiring process, which reduces time for screening candidates and
increases time for high-value activities.
10. Reinventing Talent Acquisition -
New approaches to talent acquisition encourage human capital specialists to not only find
new ways of accessing Talent, but also widen their perspective on the Talent view.
Rethinking the Talent acquisition mindset is vitally important for improving HR processes.
Companies need to reimagine what their potential employees may look like, where they
might find them and how to best use modern technologies at their full power. For example,
you might be used to offering full-time positions only, yet there’s a trend toward hiring
alternative capabilities like remote employees and freelancers. If you want to keep pace with
the times, you should keep these tendencies in mind.
How New Technology Makes Operations More Effective -
With all these new trends in mind, let’s take a look at how the implementation of new
technology can optimize and improve your HR operations. We’ve already mentioned that AI
is having a huge impact on the human resources sphere. It’s also able to quickly connect
quality data with computation services to create valuable insights. Let’s check out some of
the key benefits that artificial intelligence provides.

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HRM Subject Guide on Meaning, Objectives & Functions

  • 1. Subject - Human Resource Management Unit –I Introduction to Human Resource Management 1.1 - Meaning 1.2 - objectives 1.3 - Functions 1.4 - Importance of HRM 1.5 - Recent trends in HRM 1.1 – Meaning – Human resource management is divided into two parts – 1. Human Resource and 2. Human Resource Management  Human Resource - Human Resource means is a person (human) or employee that works for an Organisation.  Human Resource Management – Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them.  Meaning of Human Resource Management - Human resource management (HRM or HR) is the management of human resources. Human resource management (HRM) it is independent or distinct and more important branch of industrial management. This branch of knowledge relates to everyone from the chief manager of the workforce working in the Organization at the enterprise level to the simple worker. As a field, HRM has undergone many changes over the last twenty years, giving it an even more important role in today’s organizations.  Definitions of Human Resource Management - 1. Edvin Flippo – “It is the planning, organising, directing and controlling of the procurement, development compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished.”
  • 2. 2. According to the Invancevich and Glueck – “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”. 3. According to C.H. North Cott. – “Labour resource management is an extension of general management that of prompting and stimulating every employee to make his fullest contribution to the purpose of the business”.  Nature of Human Resource Management – 1. Pervasive Function 2. Result oriented 3. Tactful approach 4. People Centric 5. Integrative action 6. Continuous process 1. Pervasive Function – HRM is practiced at all levels of Management and applies to all kinds of organizations, even to non – profit organizations. 2. Result oriented – It aims at achieving Organizational objectives through the optimum utilisation of human resources. 3. Tactful approach – HRM deals with the people who are distinct from one another; thus the manager needs to apply diverse strategies and tactics at different point of time and in different situations. 4. People - Centric – Human resource management is concerned majorly with the employees Working in an Organisation. 5. Integrative Action – It focuses on maintaining cordial relations among the employees with different levels and also addresses employee grievances. 6. Continuous process – HRM is on-going process of procurement, development and redirection of personnel towards the organisational goals. It cannot be completed in a day, week or a month.
  • 3. 1.2 Objectives of human resource management - 1. 1.To ensure the effective utilisation of resources 2. To maintain organisational structure 3. To develop human resources 4. To respect for human beings 5. To maintain goal harmony 6. To ensure employee satisfaction 7. To ensure your employee discipline and moral 8. To increase organisational productivity 1. To ensure the effective utilisation of resources - Human resource management ensures the effective utilisation of resources. Human resource management teaches how to utilize human and non- human resources so that the goals can be achieved. Organisational aiming to utilise their resources efficiently invites the HR department to formulate required objectives and policies. 2. To maintain organisational structure Organisational structure defines the working relationship between employees and management. It defines and assign the task for each employee working in the organisation. The task is to performed within the given constraints. It also defines positions, rights and duties, accountability and responsibility, and other working relationship. The human resource management system provides required information too timely and accurately. Hence, human resource management helps to maintain organisational structure. 3. To develop human resources Human resource management provides favourable environment for employees so that people working in organisation can work creatively. This ultimately helps them to develop their creative knowledge, ability and skill. To develop personality of employees, human resource management organizes training and development campaigns which provide an opportunity for employees to enhance their calibre to work. 4. To respect for human beings - Another importance objective of human resource management is to provide a respectful environment for each employee. Human resource management provides with required means and facilitates employee along with an appropriate respect because the dominating tendency develops that will result organisational crisis. Hence, all of them should get proper respect at work. Human resource management focuses on developing good working relationship among
  • 4. workers and managers in organisation. So, good human resource management system helps for respecting the employees. 5. To maintain goal harmony - Human resource management bridge the gap between individual goal and organisational goal thereby resulting into a good harmony. Goal differences occurs, the employees will not be willing to perform well. Hence, a proper match between individual goal and organisational goal should be there in order to utilise organisational resources effectively and efficiently. 6. To ensure employee satisfaction - Human resource management provides a series of facilities and opportunities to employees for their career development. Will leads to job satisfaction and commitment. When the employees are provided with every kind of facilities and opportunities, they will be satisfy with their work performance. 7. To ensure employee discipline and moral - Human resource management tries to promote employee discipline and moral through performance-based incentives. It creates a health and friendly working environment appropriate word design and assignment of jobs. 8. To ensure Organizational productivity - Human resource management focuses on achieving higher production and most effective utilisation of available resources. This leads to an enhancement in organisational goals objectives. 1.3 Functions of Human Resource Management - Human Resource Management (HRM) is a systematic approach that works to fill the gap between an organization and its employees. Functions of HRM have been developed by the Minister of Human Resource Development to simplify the task of managing the human capital of the organization. These works are broadly classified into two categories: 1. Managerial Functions 2. Operative Functions 1. Managerial Functions:- Human Resource Management (HRM) is required at all levels of an organization. Top management is responsible for strategizing and directing the successful application of such schemes. In this process, they perform the following functions:
  • 5. a .Planning - Planning is the first and basic function of management and everything depends on the plan; before thinking of anything else, management needs to be aware of the vacancies or workforce needs of the organization. After that, they are very much required to formulate a strategy to meet future requirements. It is predetermined course of action. Planning pertains to formulating strategies of personnel programmes and changes in advance that will contribute to the organizational goals. It involves planning of human resources, requirement, selection, training, etc. b. Organizing – The purpose of human resources is to bring together the available human resources and physical resources with the organization; the manager sets a framework for operative tasks. Along with organizing everything related to HR and the organization, Human resource managers should be well aware that organizing is a process of creating and organizing everything in a proper way to avoid any confusion and conflict. Thus, an organization establishes relationship among the employees so that they can collectively contribute to the attainment of company goals. c. Directing – Directing is a knowledge, discipline, and formal way of communicating to others what you expect from them or an organization. The willing and effective co-operation of employees for the attainment of organizational goals is possible through proper direction. Unless a human resource manager has the ability to direct, a human resource manager cannot be said to be full-fledged. When the HR manager has the right guidance capabilities, the manager instructs the team to act accordingly and provides appropriate guidance to meet the organizational objective. d. Controlling After, planning, organizing and directing various activities of personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions of an organization. Controlling also involves checking, verifying and comparing of the actuals with the plans, identification of deviations if any correcting of identified deviations. Human resource managers must have full knowledge of handling all matters related to human resources, as they must be fully capable of thinking and deciding what should be done and what should not be done They also need to know how employees should be treated and how not. Simultaneously he sets the standard for
  • 6. management performance and subsequently analyses the results based on such criteria through performance evaluation and job analysis. 2. Operative Functions:- Operative functions are those that are performed at the departmental level or middle level and are primarily concerned about the execution of plans and strategies created at the managerial level. The operative functions of human resource management are related to specific activities of personnel management e.g. employment, development, compensation and relation. All these functions are interacted with managerial functions. Below we have mentioned about various types of operative functions: a. Procurement - It is the first operative function of Human Resource Management. Acquisition of human resources is the primary function of a manager. This includes all requirements of personnel, Job analysis, Human Resource Planning, recruitment, and selection of suitable candidates, an appointment to the right place of the workforce, and estimation of orientation. Job analysis- it is the process of study and collection of information relating to the operations and responsibilities of a specific job. It includes collection of data, information, facts and ideas, providing the guides, plans and basis for job design and for all operative functions of Human Resource Management. 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 and which would provide satisfaction for the individuals involved. It involves calculation of net human resources requirements based on present inventory of human resources, estimation of present and future requirements and supply of human resources based on objectives and long range plans of an organization. Recruitment- it is the process of searching for prospective employees and simulative them to apply for jobs in an organization. It deals with identification of existing sources of applicants and developing them, creation or identification of new sources of applicants, striking a balance between internal and external sources etc. Selection- Selection means it is the process of asserting the qualifications, experiences, skills, knowledge etc., of an applicant with a view to appraising his or her suitability of a job. This function include formulating interviewing techniques , checking of references, framing and developing application blanks, creating a developing valid and reliable testing techniques, line managers decisions, sending letters of appointment and rejections, employing the selected candidates who report for duty. Placement- It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employee specifications with job requirements.
  • 7. These functions include counseling the functional manager regarding placement, conducting follow-up study, correcting miss placements, if any. b. Human Resource Development – It is the 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. This function includes performance appraisal, Training, Management Development, Career Planning and Development, Internal mobility, etc. The role of HR is to ensure that new employees acquire company-specific knowledge and skills so that they can perform their tasks efficiently. This increases the overall efficiency and productivity of the workforce, resulting in better business as well as greater profitability for the company. Performance appraisal - it is the systematic evaluation of individuals with respect to their performance on the job and their potential for development it includes developing policies procedures and techniques helping the functional managers reviewing of reports and consolidation of reports and evaluating the effectiveness of various programs Training - it is the process of imparting to the employees technical and operating skills and knowledge it includes identification of training needs of the individuals and the company developing suitable training programs helping and advising the management in the conduct of training programs evaluating the effectiveness of training programs. Management development - it is the process of designing and conducting suitable executive development programs so as to develop the managerial and human relations skills of employees it includes identification of the areas in which management development is needed conducting development programs motivating the executives designing special development programmers for promotions evaluating the effectiveness of executive development programs Career Planning and development - it is the planning of one's career and implementation of career plans by means of education and Training jobs search and activation of work experience is it includes internal and external mobility Internal mobility - it includes vertical and horizontal movement of an employee within an organization it consist of transfer promotion and demotion. Transfer - it is the process of placing employees in the same level jobs where they can be utilized more effectively in consistency with their potential it is and needs of the employees and the organization it also deals with developing transfer policies and procedures guiding employees and line management on transfers evaluating the execution of transfer policies and procedures Promotion - it deals with a forward re assignment given to an employee in the organization to occupy higher position which commands better status and air pic keeping in view the human resources of the employees and the job requirements this functions cover the formulating of equitable fair and consistent promotion policies and procedures
  • 8. Demotion - it deals with downward reassignment to an employee in the organization develop equitable fair and consistent demotion policies and procedures advising line managers on matters relating to the motions oversee the implementations of demotion policies and Procedures Retention- employers prefer to retain more talented employees while their retrench less talented employees modify existing human resource strategy and craft new strategies in order to pay more salaries provide more benefits and create high quality of work life to retain the best employees and management specialist to the less talented employees and planted a trench the misfits as well as unwanted employees depending upon the negative business trends c. 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 etc. Job Evaluation – It is the process of determining relative worth of jobs. It involves select suitable job evaluation techniques, classify jobs into various categories, determining relative value of jobs in various categories, etc. Wage and Salary Administration – This is process of developing and operating a suitable wage and salary programme. It covers, conducting wage and salary survey, determining wage and salary rates based on various factors, evaluating its effectiveness, etc. Incentives – It is the process of formulating, administering and reviewing the schemes of financial incentives in addition to regular payment of wages and salary. It includes, formulating incentive payment schemes, review them periodically to evaluate effectiveness, etc. Bonus – It includes payment of statutory bonus according to the payment of Bonus Act, 1965 and its latest amendments. Fringe Benefits – These are the various benefits at the fringe of the wage. Management provides these benefits to motivate the employees and to meet their life’s contingencies. These benefits includes- Disablement benefit, Housing facilities, Canteen facilities, Credit facilities, Medical, maternity and welfare facilities, etc. Social Security Measures – Managements provide social security to their employees in addition to the fringe benefits. These measures include- Sickness benefits and medical benefits, Dependent benefits, Retirement benefits like provident fund, pension, gratuity, etc., Maternity benefits and medical benefits, etc. d. Human Relations – Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees create a sense of relationship between
  • 9. the individual worker and management, among workers and trade unions and the management. It is process of interaction among human beings. Human relations is an area of management in integrating people into work situations in a way that motivates them to work together productively, co=operatively and with economic, psychological and social satisfaction. It includes – Motivating the employees, Boosting employee morale, Developing the communication skills, Developing the leadership skills, Improving quality of work life of employee through participation and other means, Counselling the employees in solving their personal, family and work problems and releasing their stress, strain and tensions, etc. e. Industrial Relations - The term ‘Industrial relations’ refers to the study of relations among employees, employers, government and trade unions. Industrial relations include- Indian labour market, Trade unionism, Collective bargaining, Industrial Conflicts, workers participation in management and Quality circles, etc. f. Recent trends in HRM - Human resources management has been advancing at a fast rate. The recent trends in HRM include - Quality of work life, Total quality in human resources, HR accounting, audit and research and Recent techniques of HRM, etc. 1.4 Importance of Human Resource Management - Human Resource Management (HRM) is a modern approach of maintaining people at workplace which focuses on acquisition, development, utilization and maintenance of human resource. HRM is development oriented. It is concern of managers of all level and provides space for employee involvement, performance and growth. Several companies nowadays prefer HRM to personnel management because HRM plays vital role in maintaining quality team of working experts. 1. To maintain quality of work life 2. To increase productivity and profit 3. To produce employees who are easily adaptable to change 4. To match demand and supply of human resource 5. To retain employees and motivate them to accomplish company’s goal 6. To recognize merit and contribution of employee 7. To create a feeling of belongingness and team spirit in the employee 8. To sustain business in the market 9. To resolve conflicts 10. To develop corporate image 11. Other Importance
  • 10. 1. To maintain quality of work life - Quality of work life is the perception of employees regarding the relationship between working condition with management. Simply, it is the relationship between employees and total work environment. Quality of work life is concerned with the employee’s perception of physical as well as psychological wellbeing at workplace and it can be obtained by maintaining work autonomy, work freedom, job recognition, belongingness, rewards, etc. 2. To increase productivity and profit - Human resource management ensures right quality and quantity of personnel in workplace, apart from which, it creates opportunities to facilitate and motivate individual and group of employees to grow and advance their career. Motivated employees work hard to meet their personal career goal which directly influences productivity of organization. Minimizing cost and maximizing profit is the essence of productivity. 3. To produce employees who are easily adaptable to change - Human resource management performs various functions, among which training and development of employees is one of the vital ones. Training and development programs keep employees updated with skills necessary to adjust with alteration of organization’s environment, structure and technology. 4. To match demand and supply of human resource – Human resource management probes existing human resource in certain interval of time to identify if the company has adequate number of workers or not. In case when company has inadequate human resource, human resource management performs activities like recruitment and selection to balance the need. In the same way, it lay-off inefficient employee in case when the company has excessive employees. 5. To retain employees and motivate them to accomplish company’s goal - Utilizing human resource to their fullest and maintaining them in the company for a long term is a major function of human resource management. Under this function, HRM performs tasks like providing fringe benefits, compensation and rewards to the deserving employees. These activities do not only help in retaining employees in the company but also in achieving organization’s goal effectively. 6. To recognize merit and contribution of employee – Human resource management performs timely appraisal of employee’s performance in order to recognize excellent and poor workers. The excellent workers are then rewarded as a return for their contribution. 7. To create a feeling of belongingness and team spirit in the employee – Human resource management designs job on the basis of teamwork. As teamwork demands contribution from every team member, HRM focuses on making each and every employee feel valued so that employee contributes best from their side.
  • 11. 8. To sustain business in the market – Human resource management makes sure that the company has the best employee because promising employees are capable of taking their company ahead in the race by delivering excellent results. This guarantees organization’s success and stability in future. 9. To resolve conflicts – In any company, either big or small, conflicts may arise between any parties/group. Conflicts are inevitable and they should not be ignored. Human resource management acts as a consultant to sort out such conflicts timely and conduct other organizational activities smoothly. 10. To develop corporate image – Every company should maintain good public image in order to sustain in the market. Any individual would like to work for companies which are known for moral and social behaviour. On the other hand, companies that do not treat their employees in a good manner can run through employee deficiency and even collapse 11. Other Importance-  Formulation of HR policies  Implementation of HR policies  Review of employee needs  Utilization of Human Resource, etc. 1.5 Recent Trends in HRM – 1. Personnel Records 2. Human Resource Audit 3. Human Resource Research 4. Human Resource Accounting 5. Human Resource Information Systems 6. Stress and Counselling 7. Global Human Resource Management 8. “Repurposing” your Human Capital 9. Using Technology to Recruit 10. Reinvesting Talent Acquisition 1. Personnel Records : Personnel Records are records pertaining to employees of an organization. These records are accumulated, factual and comprehensive information related to concern records and detained. All information with effect to human resources in the organization is kept in a systematic order. Such records are helpful to a manager in various decisions -making areas. Personnel records are maintained for formulating and reviewing personnel policies and procedures. Complete details about all employees are maintained in personnel records, such as,
  • 12. name, date of birth, marital status, academic qualifications, professional qualifications, previous employment details, etc.  Types of Personnel Records - Records of employment contain applicants past records, list sources, employees progress, medical reports, etc.  Wages and salaries records contain pay roll records, methods of wages and salaries, leave records, turnover records and other benefit records.  Training and development contains appraisal reports, transfer cases, training schedule, training methods.  Health and safety records include sickness reports, safety provisions, medical history, insurance reports, etc.  Service Records are the essential records containing bio-data, residential and family information, academic qualifications, marital status, past address and employment records.  Purposes of Personnel Records - According to the critics of personnel records, this system is called as a wastage of time and money. According to personnel records, followers of this : Dale Yoder, an economist of Michigan University, USA has justified the significance of personnel records after making an in-depth study. It helps to supply crucial information to managers regarding the employees. To keep an update record of leaves, lockouts, transfers, turnover, etc. of the employees. It helps the managers in framing various training and development programmes on the basis of present scenario. It helps the government organizations to gather data in respect to rate of turnover, rate of absenteeism and other personnel matters. It helps the managers to make salary revisions, allowances and other benefits related to salaries. It also helps the researchers to carry in- depth study with respect to industrial relations and goodwill of the firm in the market. Therefore, personnel records are really vital for an organization and are not a wasteful exercise. 2. Human Resource Audit- Human resource auditing is the process of evaluating various human resource programs and practices in order to determine whether or not they serve their intended purposes. This process is extremely thorough and usually involves multiple individuals and assessments. The audit will typically investigate company compliance with laws and procedures, and identify areas where improvement is needed. If the company does comply with the rules and procedures set forth by government regulations and company policy, the human resource audit will determine whether or not they are being implemented properly. Companies that schedule periodic human resource audits will gain in-depth knowledge about the structure of
  • 13. the company and the behaviour of its employees. The audit will also determine the amount of human capital the company currently has access to.  Why Are HR Audits Important? An HR audit is the only way you can fully assess whether your HR processes and policies are benefiting or harming your overall business. If you’re in danger of a lawsuit or criminal suit, if your HR systems are inefficient, if your employees aren’t developing, or if you can’t attract the right employees, your business will suffer. Improve those areas, and you can improve your chances for success. 3. Human Resource Research - The study of human resource practices and activities gives the extent of success or failure of policies and practices. Research on HRM activities provides an understanding of what does work, what does not work, what needs change, the nature and the extent of change. HR research is, “the task of searching for, and analyzing of facts to the end that HR problems may be solved or principles and laws governing their solutions derived.”  According to Michael J. Jucius, - “HR research is the task of searching for and analysing of facts to the end that HR problems may be solved or principle and laws governing their solution derived”.  According to Dale Yoder, “HR research is a shortcut to knowledge and understanding which can replace the slower, more precarious road of trial and error in experience. It implies searching investigations, re-examinations, reassessments and revaluation. It is a purposive and systematic investigation designed to test carefully considered hypotheses or thoroughly framed questions”. Research is not the sole responsibility of any one particular group or department in an organization. The initial responsibility is that of the personnel department which, however, should be assisted by line supervisors and executives at all levels of management. The assistance that can be rendered by trade unions and other organizations – for example, educational institutions, private research groups and governmental agencies – should not be ignored but should be properly made use of. Human resource research areas are often identified in terms of high or low appearance – selection, opinion measurement, training and development, appraisal, motivation, organisational effectiveness, managerial obsolescence, counselling and retirement. Managerial selection and development and general employee motivation have generally been identified as the two main human resources areas which are in the greatest need of additional research. 4. Human Resource Accounting - Human Resource Accounting provides information about the total cost of human assets, which can use for calculating their benefits for business by comparing it with the benefits provided by employees. The main purpose of Human Resource Accounting is to help human
  • 14. resource professionals and senior managers to use the human resources of an organization efficiently and effectively. Human Resource Accounting (HRA) is the process of identifying, and reporting investments made in the human resources of an organization that are presently unaccounted for in the conventional accounting practice. It is an extension of standard accounting principles. Measuring the value of the human resources can assist organizations in accurately documenting their assets. In other words, human resource accounting is a process of measuring the cost incurred by the organization to recruit, select, train, and develop human assets. Human resources are considered as important assets and are different from the physical assets. Physi-cal assets do not have feelings and emotions, whereas human assets are subjected to various types of feelings and emotions. In the same way, unlike physical assets human assets never get depreciated. Therefore, the valuations of human resources along with other assets are also required in order to find out the total cost of an organization. In 1960s, Rensis Likert along with other social researchers made an attempt to define the concept of human resource accounting (HRA).  Definition: 1. The American Association of Accountants (AAA) defines HRA as follows: ‘HRA is a process of identifying and measuring data about human resources and communicating this information to interested parties’.  Methods of Valuation of Human Resources: There are certain methods advocated for valuation of human resources. These methods include histori-cal method, replacement cost method, present value method, opportunity cost method and standard cost method. All methods have certain benefits as well as limitations. 5. Human Resource Information Systems – HRIS stands for Human Resources Information System. The HRIS is a system that is used to collect and store data on an organization’s employees. In most cases, an HRIS encompasses the basic functionalities needed for end-to-end Human Resources Management (HRM). It is a system for recruitment, performance management, learning & development, and more. An HRIS is also known as HRIS software. HRIS stands for human resources information system. It’s related to human resources management system (HRMS) and human capital management (HCM), but there are some subtle differences among the three.  HRIS vs. HRMS vs. HCM Both HRIS and HRMS can help employers manage various aspects of HR, such as payroll, benefits administration and compliance. Where they may differ is talent and performance management, which is sometimes exclusive to HRMS. HCM, meanwhile, refers to the broad set of people management practices that can be accomplished with HRIS and HRMS.
  • 15. 6. Stress and Counselling – Each employee is connected to each other through internal network, hence time bound accomplishment of task is expected from superiors. They accumulate data and pass it on to their seniors. This chain of information carries on up to the CEO level. The time bound expectation of job accomplishment, the data and figures at the end of the week, month, quarter, half yearly and yearly basis be communicated to superior. The entire process from manufacturing to retail or consumer is done to fight competition, hence the entire chain from the raw material stage to finish product is on very low inventory. Besides professional issues, there are pressures of meeting family expectations, education of children, late working hours and compatibility among spouse. Organizations have realized that employees go under stress and their HR department evolved few activities like having a Gym-room for doing quick workouts, healthy meals during working hours, approving holidays and finance pleasure trips to unwind themselves and also health checkups. Employees have been provided gadgets, and they can access any information in seconds and communicate in faster speed. The soft-wares work in very high speed and with a high level of accuracy. Counseling - Emotions are part of the nature of human beings and emotional upsets are part of their life. It is sometimes more disastrous to suppress emotions. The emotional problems affect the interest of the employees him - self and the organization in which he is working for. The problems may reduce their productivity, morale and increase absenteeism. Hence the managers should take steps to maintain a reasonable emotional balance of their employees and channelize their emotions on the constructive lines. The instrument with which the managers can achieve such balance is called counseling. Counseling is a method of understanding and helping people who have technical, personal and emotional or adjustment problems that usually has emotional contents that an employee with the objective of reducing it so that performance is maintained at adequate level or even improved upon. 7. Global Human Resource Management – HR managers are responsible for the hiring, training, termination, and legal compliance of company employees. Global HR managers are responsible for the same important tasks, but on an international scale. Anytime a company expands internationally, they are faced with a numbers of challenges. A strong global human resources team is a vital component of international expansion. Whether a company is looking to hire domestically or internationally, the goal is always to find the most qualified candidate to fill the position. Understanding the job description and the desired skill set is essential to finding the right candidate for the job. Training is required for all employees to fully understand their job functions and company policies and procedures. While it is always important to maintain consistency with onboarding new employees, it is especially important when operating on a
  • 16. global scale. To ensure the same message is delivered to all employees, global HR managers should use the same onboarding process at every company location. Legal compliance is a huge responsibility for human resources, both domestically and internationally. To avoid legal trouble, it is critical that HR understands, abides by, and helps the company to enforce all legal requirements. Global HR managers are also responsible for ensuring employees who are working internationally have all the resources they need to successfully transition into a new country and culture. Since global HR managers understand cultural and legal differences, they are well equipped to help relocated employees settle into their new role. Global HR Managers are also able to maintain control of company operations. If every location’s HR department acted independently, consistency and control would be a challenge to maintain. By having Global HR Managers to oversee the company in its entirety, the company is better able to maintain control of their international locations and overall company brand, policies, and procedures. International human resource management (IHRM) is the procurement, allocation, utilization, and motivation of, human resources in the international area. International HRM is critical to the strategy and success of global operations. There is evidence that culture and people issues are the biggest roadblocks to global success. It is also found that the problem of hiring quality personnel ranked as one of the main factors inhibiting expansion of US foreign investment in Japan. These problems can be avoided by appointing people with significant experience in foreign and international operations. The distinct features of International HRM are multiculturalism and geographic dispersion as well as the need to address issues such as international taxation, relocation and foreign cultures orientation. IHRM also generates more involvement in personnel life. An international business must procure, motivate, retain, and effectively utilize services of people both at the corporate office and at its foreign plants. 8. “Repurposing” Your Human Capital Finding it difficult to hire, managers often forget about one of the most effective tactic HR specialists sometimes use – moving current workers to available job opportunities across the company. Of course, any given person must possess the particular skills that are relevant to carry out the role’s responsibilities. A second and no less effective tactic is to use alternative human capital, such as contractors, freelancers and outsourcing partners. This approach to talent acquisition works best for companies facing rapidly changing business conditions. For example, if you need to urgently reinvent one of your technology systems like ERP and don’t have skilled in-house specialists. In that case, you can outsource your new technology project to a dedicated development team. In accordance with global trends in the alternative workforce, modern enterprises have an amazing opportunity to cooperate with vendors, contractors, outsourcers and freelancers who are located overseas. Besides, this kind of potential labor capital is typically cheaper and, thanks to up-to-date technologies, easily accessible.
  • 17. 9. Using Technology to Recruit With strong screening and sourcing technologies in place, HR managers can recruit and hire first-class specialists in a timely manner. Unfortunately, not everyone has such capabilities at their disposal. Having optimized technology at your fingertips allows recruiters and HR to find, source and select candidates more efficiently. They are able to focus on data-driven decisions – strongly considered the best approach to hiring procedures. A vivid example of how new technology influences HR processes is the use of modern tools powered by artificial intelligence. For example, modern organizations are now using Chabot’s to optimize their application processes. Among other human resources best practices, there is the rise in video interviewing, which allows HR teams to screen and select the candidates who best match any position’s roles and responsibilities. Machine-learning tools can also work wonders in your recruiting processes, helping you to create a complete image of potential candidates. These tools provide huge benefits to modern businesses by automating hiring process, which reduces time for screening candidates and increases time for high-value activities. 10. Reinventing Talent Acquisition - New approaches to talent acquisition encourage human capital specialists to not only find new ways of accessing Talent, but also widen their perspective on the Talent view. Rethinking the Talent acquisition mindset is vitally important for improving HR processes. Companies need to reimagine what their potential employees may look like, where they might find them and how to best use modern technologies at their full power. For example, you might be used to offering full-time positions only, yet there’s a trend toward hiring alternative capabilities like remote employees and freelancers. If you want to keep pace with the times, you should keep these tendencies in mind. How New Technology Makes Operations More Effective - With all these new trends in mind, let’s take a look at how the implementation of new technology can optimize and improve your HR operations. We’ve already mentioned that AI is having a huge impact on the human resources sphere. It’s also able to quickly connect quality data with computation services to create valuable insights. Let’s check out some of the key benefits that artificial intelligence provides.