This document defines human resource management and its key functions. It states that HRM is the process of managing human resources in an organization by planning, organizing, directing and controlling functions like procurement, development, compensation, integration and maintenance of employees. The document also outlines the managerial and operative functions of HRM and discusses the importance, objectives, role of the human resource manager, and qualitative and quantitative indicators for auditing human resource management.

1. Definitions
“Human resource or manpower management effectively
describes the process of planning and directing the application,
development and utilization of human resources in employment” –
Dale Yoder.
“HRM is that part of management process which is primarily
concerned with the human constituents of an organization” –
E.F.L.Brech.
“The personnel function is concerned with the procurement,
development, compensation, integration and maintenance of the
personnel of an organization for the purpose of contributing towards
the accomplishment of that organisation’s major goals or objectives”
– Flippo.
cont’d…

2.  “It is the field of management which has to do with
planning, organizing, directing and controlling the various
operative functions of procuring, developing ,
maintaining and utilizing a labour force for the attainment
of the company’s objectives” – Prof. Jucius.
 “It is that part of the management function which is
concerned with people at work and with their relationship
within an enterprise. Its aim is to bring together and
develop into an effective organization the men and
women who make up an enterprise and having regard to
the well-being of an individual and of working groups, to
enable to make their best contribution to its success” –
The British Institute of Personnel Management.

3. Function
Managerial functions
Operative function

4. Managerial Functions
 Planning
 Organising
 Directing
 Controlling

5. Functions of Human Resource Management
Managerial Functions Operative Functions
Planning Organising Directing Controlling
Procurement Development Compensation Integration Maintenance

6. Operative Function
• Procurement
• Development
• Compensation
• Integration
• Maintenance

7. Human Resource
• Peculiar Characteristics
• Exist
• Lives
• Created the other resources
• Commitment, devotion, enthusiasm,
energy, interest, intelligence,
• Creative

8. Nature of Human Resource Management
 It is universally relevant
 It is goal-oriented
 It adopts a systematic approach in handling the
manpower resource
 It is pervasive in nature
 It is an on-going activity
 It is a dynamic field of activity
 It focuses on the development of manpower
resource
 It is a Science as well as an Art
 It is inter disciplinary
 It is relatively new

9. Importance/role of Human Resource Management
(HRM)
 Identify correctly its manpower needs
 Right man for the right job
 Development of the skill of every individual
 Appraisal
 Incentives
 Employee attitude
 Good human relations
 Collective bargaining

10. The Role of a Human Resource Manager
Counselling
Act as a link
Employees get what is due to them
Spokesman
Introduce any change
Advise the line Managers

11. Qualities of a Human Resource Manager
 Good Communication Skills
 Creative
 Analyse any problem objectively
 Inspire, induce and motivate
 Leadership qualities
 Friendly and approachable
 Fair and honest
 Make decisions independently
 Curious always.
 Dynamic Person
 Good Memory

12. Objectives of Human Resource Management
• To make an optimum utilisation of the human
resource of the organisation
• To ensure that the organisation has the required
number staff
• To establish and maintain a sound organisation
structure
• To reconcile personal and organisational goals
• To provide scope for the development of personnel
• To ensure that the employees have higher job
satisfaction
• To provide scope for participation in decision-
making

13. Human Resource Audit
Meaning
Human Resource Audit (HR Audit) is
concerned with the examination and
evaluation of the policies, procedures
and practices with reference to the
human resource of the organisation. It
is a periodic review to measure the
efficiency and effectiveness of human
resource management.

14. Objectives of HR Audit
o To review the entire system of procuring,
developing, allocating and utilising the human
resources in an organisation
o To seek explanation on any matter pertaining to the
human resource of the organisation.
o To evaluate the extent of implementation of the
human resource policies and programmes
o To evaluate the performance of the staff looking
after the HRM function.

15. IMPORTANCE OF HR AUDIT
Due to the
Importance of
the human
resource itself
To face any
future
enquiry
To meet the
challenges of
trade unions
To have
control over
cost of labour
To improve the
performance of
human resource

16. Human Resource
Management Function
Qualitative Indicators
1. Procurement
2. Development
3. Compensation
4. Integration
5. Maintenance
Quality of HR planning, Job Specification, Source of
Recruitment, Selection Procedure.
Type of Training, Management Development
Programme, performance Appraisal Methods,
promotion Criteria, Career Planning.
Method of Job Evaluation, Methods of Wage Payment,
Type of Incentives, Fringe Benefits, Union Demands.
Handling of Grievances and Conflicts, Measures taken
to ensure Discipline and a high level of Morale,
Employees’ participation in decisions.
Steps taken to provide Job Satisfaction, Measures
adopted to control labour turnover.
Qualitative Indicators for HR Audit

17. Human Resource
Management Function
Quantitative Indicators
1. Procurement
2. Development
3. Compensation
4. Integration
5. Maintenance
Time taken to fill up vacancies, Ratio of Vacancies to
Number of Posts, Number of Employees recruited
during the year.
Duration of each Training Programme, Number of
Trainees in every Programme. Productivity Increase.
Pay differentials, Number of employees earning bonus
and other incentives.
Level of Morale, Grievances and Conflicts, Rate of
Absenteeism.
Level of Job Satisfaction, Rate of Labour Turnover.
Quantitative Indicators