Human resource management (HRM) involves planning, organizing, and managing employee recruitment and retention to contribute to organizational goals. It includes activities like training, performance management, compensation, and maintaining positive employee relations. HRM aims to attract the best employees, develop their skills through training, and motivate them to perform outstanding work. The key functions of HRM are managerial functions like planning, organizing, directing, and controlling human resources, as well as operational functions such as recruiting, selecting, placing, and developing employees. Overall, HRM seeks to effectively utilize human resources and maximize individual development and organizational performance.

1. 1
N. Durga Chaitanya Prasad M.Com,M.B.A(SITE) MS Material
UNIT-V
HUMAN RESOURCE MANAGEMENT
Introudction:
The informatin explosion, advances in technology,
and global competition have created enormous
presence on companies to change their day to day
activities. Most of the business houses are moving
into a very difficult world, markets are changing
much faster than previously. Certain sectors are
shrinking while new one are opening up. Because of
these reasons corporate cultures and values are also
in transition requires special skills to the persons
who are working in the organisation. Because of all
factors of production, materials, money, machinary
and men, men occupies an important place. HR is
essential in the organisations now a days.
Meaning:
Human resoure management is a set of activities
focussing on the effective use of human resources in
an organistion.it emcompasses the activities of
recruitment, selection, training, development, wage
and salary administration, health and safety,
benefits and services, union management, relations,
motivation, morale, communication & so on. Thus
Human Resource Management is that part of
Management which is related with management of
workers and employees. Human Resource
Management is the process of achieving the best fit
between individuals, jobs, organisation and the
environment. It defines the relationship between
employer, employee and employee and employee.
Definitions:
“Personnel Management as the Planning,
organising, directing and controlling of the
procurement, devlopment, compensation.
Integration and maintenance of employees for the
purpose of contributing to the organsiational goals”.
---------Edwin B. Flippo
HR management as the field of Management which
ahs to do with planning, organising, directing and
controlling the functions produring, developing,
maintaining and utilising the work force.”
---------Michel J. Jucius
‘HR management is that part of the management
progress which is primarily concerned with the
human constituents of the orgnisation”
---------Brech
Features of HRM:
 It is concerned with employees both as
individuals and as group in attaining goals
 It is concerned with the development of
human resources
 It is concerned with maninging people at
work
 It is a continuous in nature
 It is concerned with both blue and whiel
collared workers
 It is universal in nature
 It is action oriented. It works on the solution
of the employees problems
 It is action oriented
 It is future oriented.
Importance of HRM:
Hrm helps an organisation in multifarious ways
 Attracting People
 Best employees
 Improving skills
 Motivation
Attracting People:
Good human resource practice can help in attracting
and retaining the best people in the organisation.
Planning aletrs the company to the types of people
it will need in the short, medium and long run
Best employees:
Appropriate recruitment and selection activities
identify the best people for available jobs and make
sure they are placed in suitable positions
Improving Skills:
Performance appraisals and training develop
individuals who need skills, knowledge and attitude
different from those they currently possess.
Motivation:
Good human resource practice motivate the
organisational members to do outstanding work.

2. 2
N. Durga Chaitanya Prasad M.Com,M.B.A(SITE) MS Material
Objectives of HRM:
Main objectives dof HRM is to manage the workers
and employees of an enterprise in the best possible
manner. The role of HRM is to plan develop and
administer policies and programmes designed to
make expedition use of an orgnisations human
resources.
 To effective utilisation of human resources
 To eastablish desireable working
relationships among all members of an
organisation
 To maximise the individuals development.
 To increases the human welfare in the
organisation
 To arrange the effective communication
with resources.
 To arrange the sufficient number of efficient
employees in all the departments
 To increase the morale of the employees
 To motivate the employees to increase
productivity.
Functions of HRM:
The functions of HRM can be braodly classified
into two categories
Managerial Function:
Planning: It is a predetermined course of action. It
involves olanning of human resources requirements,
recruitment, selection, training etc.
Organising: an organisation is a structure and a
process by which co-operative group of human
beings allocates its tasks among its members,
identifies relationships and integrates it activites
towards common objectives.
Directing:the basic function of HRM at any level is
motivating, commanding, leading and activating
people. The dierection is an important managerial
function in that it helps in building souch industrial
and human relations.
Controlling: controling also involves checking,
verifying and comparing the actuals with the plans,
identified deviations.
Opetative functions:
1. Employment:
Employment is concerend with securing and
employing the poeple possessing required kind and
level of human resources necessary to achieve the
organisational objectives.
Job analysis: it is the process fo study and
collection of information relating to the operations
and responsibilities of a specific job.
HR Planning: it is a process of determing and
assuring that the organisation will have an adequate
number of qualified persons, available at peoper
times, performing hobs which would meet the needs
of the organisation.
Recruitment:it is the process of searching for
prospective employees and stimulating them to apply
for the jobs in an organisation.
Selection: it is the process of ascertaing the
qualifications, experience, skill and knowledge of an
applicant with a view to appraising his/her suitability
to a job.
Induction:induction and orientation are the
techniques by which a new employee is rehabilitated
in the changed surreoundings and introduced to the
practives, policies etc.
Placement:
It is the process of assigning the selected candidate
with most suitable job.

3. 3
N. Durga Chaitanya Prasad M.Com,M.B.A(SITE) MS Material
HR Development:
It is the process of improving moulding, changing
and developing the skill, knoledge, creative ability,
aptitude attitude, values, commitment etc based on
the present and future job and organisational
requirements.
Traning: it is the systematic process by which
employees learn knowledge, skills, abilities, attitudes
to fulfill organisational and personal goals
Management Development:
It is the process of designing and conducting suitable
executive development programmes to the
development of human relation skill of employees.
Career planning: it is theplanning of one’s career
and implementation of career plans by means of
education, traning, job search and acquisition of
work experience. Transfer and promotions are two
ways of personnel develpment in an organisation.
Organisational Devlopment: it is an organisation
wide, planned effort, managed form the top with a
goal of increasing organisational performance
through planed interventions.
Compensation Mangement:
It is the process of providing equiatble and fair
remuneration to the employees. It inclues job
evaluation, wage and salery administration, fringe
benefits, incentives.
Integration of Humna Relations:
It is the process of interaction among humna beings.
Human relations is an area of management practive
in integrating prople into work situation in a way
that motivates them to work together productively,
cooperatively and with economic, psychological
and social satisfaction.
Personel Research:it is the precess of evaluating
the effectiveness of human resources policies and
practives and developing more appropriate ones
Personel Audit:it refers to an examination and
evaluation of policies, procedures and practives to
determine the effectivesness of human resource
management.