HRM

2. DEFINITIONS
 MANAGEMENT – Effective utilization of human resources
for the achievement of organizational objectives thru the
combined efforts of human resources that technological,
financial, physical and all other resources are utilized.
 HUMAN RESOURCES – Defined as the total knowledge,
skills, creative abilities, talents and aptitudes of an
organization's workforce, as well as the values, attitudes,
approaches and beliefs of the individuals involved in the
affairs of the organization.

3. HUMAN RESOURCE MANAGEMENT
 HRM is an integral but distinctive part of management,
concerned with people at work and their relationship within
the enterprise.
 HRM can be defined as managing (planning, organising,
directing, controlling) the functions of employing ,
developing and compensating human resources resulting in
the creation and development of human relations with a
view to contribute proportionately to the organisational,
individual and social goals.

4. SIMILAR TERMS
 Labour Management
 Labour Administration
 Personnel Management
 Personnel Administration
 Human Capital Management
 Human Asset Management
 Employment Administration
 Employee-Employer Relations
 Union Management Relations
 Industrial Relations

5. NATURE OF HRM
 Comprehensive Function – Concerned with all types of
people inside the organization
 People Oriented – Dealing with human relationships
within an organisation
 Action Oriented – Actions rather than procedures and
records – Solution of personnel problems to achieve both
organisational and personal goals.
 Individual Oriented – Provide services and programmes
to facilitate employee satisfaction and growth.
 Development Oriented – Developing the potential of
employees to achieve maximum.

6. • Pervasive Function – Inherent in all organisations and at
all levels
• Continuous Function – On going or never ending exercise
rather than a one shot function.
• Future Oriented – Concerned with helping an organisation
to achieve its objectives in the future.
• Challenging Function – Due to dynamic nature of people’s
emotions and they can’t be treated like machines
• Science as well as Art – Science –Tools, Principles and
Techniques ; Art – Handling People

7. • Staff Function – Advisory or Directing or monitoring
Function
•Young Discipline – Started in the last part of 19th
century.Relatively new specialized area as compared to
manufacturing and marketing.
•Interdisciplinary – Involves application of knowledge
drawn from Sociology, Psychology and Economics.
•Nervous System – Intimately associated with every
movement inside the organisation

8. OBJECTIVES OF HRM
1. To create and utilize an able and motivated workforce, to
accomplish the basic organizational goals.
2. To establish and maintain sound organizational structure
and desirable working relationships among all the members
of the organization.
3. To secure the integration of individual or groups within
the organization by co-ordination of the individual and
group goals with those of the organization.
4. To create facilities and opportunities for individual or
group development so as to match it with the growth of the
organization

9. 5. To attain an effective utilization of human resources in
the achievement of organizational goals.
6. To identify and satisfy individual and group needs by
providing adequate and equitable wages, incentives,
employee benefits and social security and measures for
challenging work, prestige, recognition, security, status.
7. To maintain high employees morale and sound human
relations by sustaining and improving the various
conditions and facilities.
8. To strengthen and appreciate the human assets
continuously by providing training and development
programs.

10. 9. To consider and contribute to the minimization of socio-
economic evils such as unemployment, under-
employment, inequalities in the distribution of income and
wealth and to improve the welfare of the society by
providing employment opportunities to women and
disadvantaged sections of the society.
10. To provide an opportunity for expression and voice
management.
11. To provide fair, acceptable and efficient leadership.
12. To provide facilities and conditions of work and creation
of favorable atmosphere for maintaining stability of
employment.

11. FUNCTIONS OF HRM
MANAGERIAL FUNCTIONS
 Planning – Formulating the future course of action
 Organising – Establishing an intentional structure of roles for
people in an orgn such as chain of command, division of labour,
assignment of responsibilities.
 Staffing – Obtaining and maintaining capable and competent
personnel.
 Directing – Coordinating and motivating towards
organisational objectives
 Controlling – Measurement and rectification of activities

12. Operative Functions Of HRM
 Employment – Involves procuring & employing
individuals with suitable knowledge, skills & exp
 Human Resource Development – Process of training
and developing employees to improve and update their
knowledge and skills
 Compensation Management – Includes all the extrinsic
rewards that an employee receives during and after the
course of his job
 Employee Relations – deals with employees in the
organisational context , as a social group that contributes
to the orgn.

13. EMPLOYMENT
 Human Resource Planning – Forecasting the human
resource requirements
 Recruitment – process of seeking and attracting
prospective candidates against a vacancy in an orgn
 Selection – choose the right candidate for a job
 Placement – Selected candidate conveys his acceptance of
the offer of employment made by the orgn
 Induction – Introducing a new employee to the orgn, its
business, culture,values, practices and procedures

14. HUMAN RESOURCE DEVELOPMENT
 Performance Appraisal – Process of evaluating the
performance of an employee on the job & developing a plan for
improvement
 Training – Systematic development of knowledge, skills,
attitudes required to perform a given task successfully.
 Management Development – developing the employees of an
orgn to meet future changes and challenges
 Career Planning & Development – Identifying one’s career
goals & formulating plans of reaching them thru education, work
exp.
 Organisation Changes & Organisation Development

15. COMPENSATION MANAGEMENT
 Job Evaluation – Systematic determination of the value of
each job in relation to other jobs in the orgn, industry &
market.
 Wage and Salary Administration - Process of
formulating and operating a suitable wage and salary
program
 Fringe Benefits – Monetary & Non-Monetary benefits
given to employees during their employment & post
employment period.

16. SOME OF THE FRINGE BENEFITS
 Disablement Benefits
 Housing Facilities
 Canteen Facilities
 Conveyance Facilities
 Educational facilities for employees and their children
 Credit Facilities
 Recreational Facilities
 Medical & Welfare Facilities
 Post Retirement Benefits

17. EMPLOYEE RELATIONS
 Motivation
 Morale
 Job Satisfaction
 Communication
 Grievance & Disciplinary

18. IMPORTANCE OF HRM
SIGNIFICANCE FOR AN ENTERPRISE
 Attracting and retaining the required talent thru effective
HRP, recruitment, selection, placement, orientation,
compensation and promotion policies.
 Developing the necessary skills & right attitude among the
employees thru training, development and performance
appraisal
 Securing the willing cooperation of all employees thru
motivation, grievance handling.
 Utilising effectively the available human resources

19. PROFESSIONAL SIGNIFICANCE
 Providing maximum opportunities for personal
development of each employee.
 Maintaining healthy relationships between individuals,
and different work groups.
 Allocating work properly.

20. SOCIAL SIGNIFICANCE
 Providing suitable employment that provides social and
psychological satisfaction to employees
 Maintaining a balance between the jobs available and the
job seekers in terms of numbers, qualifications, needs and
aptitudes
 Eliminating wastage of human resources thru conservation
of physical and mental health.

21. ROLE OF HR MANAGER
 Service Provider - Providing info to individual employees,
Depts or groups and also to the top mgmt
 Executive – to carry out recruitment, compensation, etc
 Facilitator – To coordinate and facilitate the resources to
the employees
 Consultant – Motivation, Training, Grievance Handling
 Auditor – Ensuring that all members of the mgmt perform
their respective roles

22. HUMAN RESOURCE POLICIES
 Policies are plans of action.
 Organizations need to evolve HR policies as they ensure
consistency and uniformity in treating people. They help,
motivate, and build loyalty
 Policies become benchmarks to compare and evaluate
performance.

23. BENEFITS OF HR POLICIES
 The work involved in formulating personnel policies
requires that the mgmt give deep thought to the basic needs
of both the orgn and the employees.
 Favoritism and discrimination are thereby minimised
 Policies serve as a standard of performance
 Sound policies help build employee motivation and loyalty
 Sound policies help resolve intrapersonal, interpersonal and
intergroup conflicts.

24. 5 PRINCIPAL SOURCES FOR DETERMINING THE
CONTENT & MEANING OF POLICIES
 Past practice in the organisation
 Prevailing practice in rival companies
 Attitudes and philosophy of founders of the company and
top management
 Attitudes and philosophy of middle and lower management
 The knowledge and experience gained from handling
countless personnel problems on a day-to-day basis

25. PERSONNEL PRINCIPLES –
Fundamental truth established by research, investigation
and analysis
 Principle of individual development
 Principle of scientific selection
 Principle of free flow of communication
 Principle of participation
 Principle of fair remuneration
 Principle of incentive
 Principle of dignity of labour
 Principle of labour management cooperation
 Principle team spirit
 Principle of contribution to national prosperity

26. Thank You