Human Resource Management

1. HUMAN RESOURCE
MANAGEMENT

2. Meaning:
Human resource is defined as the total knowledge,
skills, creative abilities, talents and aptitude of persons
working in an organisation .
It is the sum total of inherent abilities, acquired
knowledge and skill represented by the talents and
aptitude of the persons employed in an organization.

3. Human Resource Management is concerned with the
management of people at work.
It is concerned with human beings in an organization.
It refers to the systematic approach to the problem of
selecting, training, motivating and retaining personnel
in any organization.

4. Human Resource Management is process of
bringing people and organisation together so that the
goals of each are met
Human Resource Management is a management
function concerned with hiring, motivating, and
maintaining workforce in an organisation.

5. Human resource management deals with issues
related to employees such as hiring, training,
development, compensation, motivation,
communication, and administration.
Human resource management ensures satisfaction of
employees and maximum contribution of employees to
the achievement of organisational objectives.

6. Definitions:
Edwin B Flippo,
Human Resource Management is the Planning,
organizing, directing and controlling of the
procurement, development, compensation,
integration, maintenance, and separation of human
resources to the end that individual, organizational,
and social objectives are accomplished.

7. The National Institute of Personnel Management
(NIPM) of India:
Human Resource Management as “that part of
management 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
organisation of the men and women who make up an
enterprise and having regard for the well-being of the
individuals and of working groups, to enable them to
make their best contribution to its success”.

8. Nature of HRM:
1. Inherent part of management- selecting people, training, motivating,
appraising their performance for improving their quality.
2. Pervasive function-present in all levels of mg in an organization
3. Action oriented-solve problem through rational(balanced) policies
rather than record keeping
4. People oriented-HRM is all about people at work. Assign jobs,
produce results, reward, motivate them towards improvements in
productivity
5. Future oriented- Effective HRM helps organization meet its goals
6. Development oriented-HRM develops full potential of employees
through reward, training, job rotation.

9. 7. Integrating mechanism: HRM maintains cordial relationship
between people working at various levels in organization.
8. Comprehensive function: Workforce signifies people working
at all levels, HRM differs with form & shape but the basic
objective of effective utilization of human resource remains the
same.
9. Continuous function: HRM is not a one shot deal it requires
constant awareness and alertness of human relations in every day
operation.
10. Based on human relation: Every person has different need,
perception and expectations. The manger should give due
attention to these factors.

10. The scope of HRM :
Personnel aspect-This is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, training
and development, layoff and retrenchment, remuneration,
incentives, productivity etc.
Welfare aspect-It deals with working conditions and amenities
such as canteens, cruches, rest and lunch rooms, housing,
transport, medical assistance, education, health and safety,
recreation facilities, etc.
Industrial relations aspect-This covers union-management
relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.

11. Objectives of HRM
1. To help the organization reach its goal
2. To employ the skills and abilities of the workforce
efficiently
3. To provide the organization with well trained & well
motivated employees
4. To increase employees job satisfaction and self
actualization (stimulate employees to realize their
potential)
5. To develop & maintain a quality of work life.

12. 6. To communicate HR policies to all employees.
7. To be ethically & socially responsive to the needs of
the society(ensuring compliance with legal & ethical
standards)
8. To provide an opportunity for expression & voice in
management
9. To provide fair, acceptable & efficient leadership
10. To establish sound organizational structure &
desirable working relationships.

13. Functions of HRM
MANAGERIAL FUNCTON
• PLANNING
• ORGANISING
• DIRECTING
• CONTROLLING
OPERATIVE FUNCTION
• EMPLOYMENT
• HUMAN RESOURCE
MGT
• COMPENSATION
• HUMAN RELATIONS
• EFFECTIVENESS OF
HRM

14. MANAGERIAL FUNCTION
PLANNING:
• It is the process of making decisions.
• It is the process of deciding in advance what is to be done, when and
where it is to be done, how it is to be done and by whom.
• This deals with the determination of the future course of action to
achieve the desired results.
• HR Manager is expected to determine the HRM
Programme regarding recruitment, selection, training,
compensation, of the employee of the organisation.

15. ORGANISING:
• Organising is concerned with the arrangements of
resources.
• This function is primarily concerned with proper
grouping of the human resource activities.
• Assignment of different groups of activities to
different individuals and delegation of authority.

16. DIRECTING:
• This involves supervising and guiding the Human
Resources of the enterprise.
• To execute plans, direction is essential: without
direction there is no destination.
• The success of the organisation depends on the
direction of the things rather than their design.
• It consists of Motivation and leadership.

17. CONTROLLING:
• It is process of measuring the employee’s performance.
• It is concerned with monitoring employees activities,
keeping the organisation on track toward its goals.
• Performances are observed, measured and compared
with what had been planned.
• It is the process of correcting negative deviations and
assuring the accomplishment of plans efficiently.

18. OPERATIVE FUNCTION:
EMPLOYMENT: The first operative function of HRM is
Employment. It is concerned with procuring and employing the
people possessing necessary skill, knowledge, aptitude. Etc
1. Job Analysis: It is the process of collecting information relating
to the operations and responsibilities of a specific job.
2. Human Resource Planning: It is process of determining and
assuring that the organisation will have an adequate number of
persons, available at right times, performing right jobs.
3. Recruitment: It is the process of searching for prospective
employees and stimulating them to apply for the job.

19. EMPLOYMENT:
4. Selection: It is the process of ascertaining the qualifications,
experience, skill, knowledge etc.. of an applicant with a view to
appraise his suitability to a job.
5. Placement: It is the process of assigning the selected candidate to
the most suitable job. It is matching of employee specification
with job requirements.
6. Induction: it is the technique by which a new employee is
rehabilitated in the changed surroundings and introduced to the
practices, policies, purposes and people of the organisation

20. HUMAN RESOURCE DEVELOPMENT
HRD: It is the process of improving, moulding, changing
and developing skills, knowledge, creative ability,
aptitude, attitude, values, commitment, etc.
1. Performance appraisal: It is the systematic evaluation
of individuals with respect to their performance on the
job and potential for development.
2. Training: Training is a systematic process by which
employees learn skills, knowledge, abilities or attitudes
to further organisational and personal goals.

21. HRD:
3. Management Development: it is the process of
designing and conducting suitable executive development
programmes so as to develop the managerial and human
relations skill of employees.
4. Career Planning and Development: it is the planning of
ones career and implementation of career plans by means
of Education, training, Job search and acquisition of work
experiences. It includes internal and external mobility.
5. Organisation development: Organisation development is
an organisation-wide, planned effort, managed from the
top, with a goal of increasing oganisational performance
through planned interventions. OD looks in depth at the
human side of the organisations. Its seeks to change
attitudes, Values, organisation structure and managerial
practices.

22. COMPENSATION
It is process of providing equitable and fair remuneration to
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 relating value or worth of job in
relation to other jobs in organisation.
It tries to make a systematic comparison between jobs to asses
their relative worth for the purpose of establishing a rational
pay structure.

23. 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 refer to rewards given to employees in monetary on non-
monetary form in order to motivate them to work efficiently.
It also known as Payment By Results (PBR).
Bonus:
It includes payment of statutory bonus according to Payment of
Bonus Act, 1965. it is to increase the Morale and Productivity.
Fringe Benefits:
In addition to compensating employees fairly and adequately, for
their contributions in the performances of their jobs,
organisations these days typically pay for a wide variety of
supplementary benefits- often called Fringe benefits.

24. Social Security Measures:
Managements provide social security to their employees in
addition to the fringe benefits.
These includes:
Workmen’s Compensation to those workers (or their
dependents) who are involved in accidents:
Maternity benefits to women employees. It aims to regulate the
employment of women in certain periods before and after
childbirth. will provide maternity benefits including maternity
leave, wages, bonus, nursing breaks etc
ESI: Sickness Benefit, Medical Benefit, Maternity, Disablement,
Dependents Benefits, Funeral Benefit and Other Benefit
Gratuity: Terminal Benefit
Provident Fund: Retirement benefit.

25. Human Relations:
It is the process of interaction among human beings.
Human relations is an area of management practice that leads in
integrating people into work situation in a way that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfaction.
Effectiveness of Human Resource Management:
Effectiveness of various HR Programmes and practices can be
measured and evaluated by means of Organizational Health and
Human Resource Accounting (HRA)
Organisation Health: Organisational health may be studiesby looking
into employees contribution to organisational goals and the
employee job satisfaction.
Employee satisfaction could be understood by labour turnover,
absenteeism, commitment and the like.

26. Human Resource Accounting (HRA):
It is a measurement of the cost and value of human resources to
the organisation.
HRM is said to be effective if the value and contribution of
human resources to the organisation is more than the cost of
human resources.
Human Resource Audit:
HR Audit refers to an examination and evaluation of policies,
procedures and practices to determine the effectiveness of
HRM.
Human Resource Research:
It is the process of Evaluating the effectiveness of human
resources policies and practices and developing more
appropriate ones.