HRM UNIT

PGP COLLEGE OF ARTS AND SCIENCE, NAMAKKAL
DEPARTMENT OF HMCS
HUMAN RESOURCE MGT – 12UHM14
UNIT – 1
Unit-1
Human Resource Management - Meaning, nature, scope, and objective - Functions of Human
Resource Department - The role of HR Manager - Organization of HR Department – HR policies &
procedures
Father of Personnel Management is Robert Owen (14 May 1771 – 17 November 1858)
Father of Human Resource Management George Elton Mayo (26 December 1880 - 7 September
1949)
INTRODUCTON:
The term human resource means “people”. It whole consisting of interrelated, inter-dependent
and interacting physiological, psychological, sociological and ethical components.
In simple words HRM is a process of making the efficient and effective use of human resource,
so that the set of goals are achieved.
MEANING:
“Human resource management is a process of making efficient and effective use of
human resource, so the set of goals are achieved.”
Human resource management in the sense of getting things done through people. It’s an
essential part of every manager’s responsibilities, but many organizations find it advantageous to
establish a specialist division to provide an expert services dedicated to ensuring that the human
resource function is performed efficiently because “people are our most valuable asset”.
DEFINITION:
“Human resources management effectively describes the process of planning and directing the
application development and utilization of human resources in employment”
“HRM is the part of management process which is primarily concerned with the human
constituents of an organization” – E.F.L.Breach
“The personal function is concerned with the procurement ,development compensation,
integration and maintenance of the personal of an organization for the purpose of contributing
towards the accomplishment of that organization’s major goals or objectives” – Flippo.
“It is the field of management which has to do with planning, organization, directing and
controlling the various operative functions of procuring, developing maintaining and utilizing a labors
force for the attainment of the company’s objectives-“Jucius.
“It is the part of 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 of the men and women who make up an enterprise and having regard to the well being

DEPARTMENT OF HMCS
of an individual and of working groups to an able to make their best contribution its success”-The
British institute of Personal Management.
CHARACTERISTICS AND NATURE OF HRM:
1. Integral part of management:
HRM is inherent in the process of management. If the manager is to get the best of his people,
he must undertake the basic responsibility of selecting people who will work under him. He must also
take interest in training and motivating the employees and appraising their for improving their quality
2. Pervasive function:
Personnel management is a pervasive function of management. It is performed by all managers
at various levels in the organization. Every managing director or Foreman is required to perform the
personnel functions on a continuous basis. it is not a responsibility that a manager can leave
completely to someone else. However he may secure advice and help in managing people from
expects who have special competence in personal management and industrial relations.
3. It is universally relevant:
HRM is relevant not just for a business organization alone. It has universe relevance. Effective
management of the human resource is a task to be performed right from the house hold level to a
government. The very fact that the govt of India has created a separate ministry called the “ministry
of HRM”
4. It is Goal-Oriented:
The goal of HRM is to make the best use of the available manpower resource of the
organization, ie, the targeted level of projects in the case of a business organization.
5. Systematic approach in handling the manpower resource:
HRM lays emphasis on a systematic approach to the task managing the HR of an organization.
This is done by the performance of two of functions ie, managerial function and operation functions.
6. On-going Activity:
Management of HR is perhaps the most challenging task of every manager. This is because HR
has certain peculiar characteristics. People have feeling and therefore they cannot be handled in the
way of ultimate things like machines are handled.
7. Development of Manpower Resources:
HRD is a part of HRM and the Development of the resources through training program and it is
as important as its procurement needless to say only the HR that be trained to acquire greater skills.
8. It is science as well as an Art:
The subject of HRM is both science and art as a social science and it lies on experiments and
observations for the lake of making for the effective handling of the manpower resources.
9. Relatively New:
When compared with subjects like psychology, sociology, economics, marketing, financial
management etc.HRM is relatively a new subject a popularly and its scope is widened.

DEPARTMENT OF HMCS
SCOPE OF HRM:
The Indian institute of personnel management has laid down the scope of HRM as
follows:
 Welfare Aspects of employees:
Functions associated with the welfare aspects of labors are
connected with the conditions of work and the amenities such as provision of canteens, creates,
housing, transport, medical education, recreational and cultural facilities and health and safety
provisions. The personnel managers must be fully conversant wish the provision of the factories
Act.1948 and other labor laws minimum wages Act, Esi, Maternity etc.
 Industrial Relational Aspects of Employees:
Industrial of labour relational aspects is concerned
with the company’s relations with the employees as a group and includes such as union management
relations, joint installation negotiation and collective bargaining processes, discretionary action,
grievance handling management and helps in achieving and maintaining good industrial relations.
DALE YODER HAS SPECIFIED THE SCOPE OF HRM IN TERMS OF THE FOLLOWING
FUNCTIONS:
(a) Management Policy: Setting general and specific management policy for organizational
relationship and establishing and maintaining a reliable organization for leadership and
cooperation.
(b) Employees’ development: Collecting bargaining, contract negotiations, contract administration
and grievance handling.
(c) Staffing the organization: Staffing the organization, finding, getting and handling prescribed
types and number of workers.
(d) Motivation of employees: Adding in the self-development of employees at all levels providing
opportunities for personal development and growth as used as for acquiring request skills and
expensive.
(e) Incentive to employees: Developing and maintaining motivation for workers by providing
incentives.
(f) Role of manpower: Receiving and auditing manpower management in the organization.
(g) Industrial research: Industrial relations carrying out studies designed to explain employees
behavior and there and by affecting improvements in manpower management.
OBJECTIVES OF HRM:
 To make an optimum utilization of the human resource of the organization:

DEPARTMENT OF HMCS
By this we mean that every individual in the enterprise shall work to his potentials. Only then
the amount spent on HR will be adjusted.
 To ensure that the organization has requires number of staff:
The objective here is to do away with the problems of both surplus and shortage of labor.
Surplus labor would mean higher labor cost and inefficiency. Shortage of labor would mean that the
organization is ill equipped to cope with the volume of work.
 To establish and maintain a sound organization structure:
HRM aims at dividing the organization tasks into different functions, jobs and positions. The
authority and responsibility associated with each such position is clearly defined.
 To reconcile and organizational goals:
There is often a clash between individual goal and organizational goal.HRM aims at integrating
personal and organizational goals guiding the employees to work with a sense of involvement,
commitment and loyalty towards the enterprise.
 To provide scope for the development of personnel:
HRM provides scope for the employees to enrich their job knowledge and skill by undergoing
relevant training programmes. Employees need to update themselves in lone with requirements.
 To ensure that the employees have higher job satisfaction:
HRM ensures a higher level of job satisfaction among employees by providing them the
kind of work environment that is equitable remuneration and social security benefits like provident
fund, quality and insurance etc.
 To provide scope of participation in decision making:
Under HRM employees are involved in the process of division making .The decision
binding on employees are made with their participation. In other words management does not take
unilateral decisions. As employees are involved in decision making they extend their support to the
implementation do any decision and don’t show resistance.
IMPORTNCE / ESSENTIALS OF HRM:
1. It helps the Organization to identify correctly its manpower Needs:
The manpower needs of an organization will have to be correctly determined. As amount spent
of HR is deemed an investment, it is necessary to determine the number of men required for doing the
various jobs in the enterprise accurately so that investment in HR will be at the optimum level.
2. It ensures that the organization does not suffer from either surplus or shortage of manpower:
It is further important that the number of persons employed in the organizational at any given
point of time should neither be more or less than what is accurately required.HRM helps to do away
with the problem of both surplus and shortage of labor.
3. It facilitates the selectionof the right man for the right job:

DEPARTMENT OF HMCS
HRM ensures the selection of the right man for the right job. It recognizes the fact that if a
candidate overqualified for the job, he will not have a positive attitude toward work and on the other
hand, if he is under qualified, he cannot carry out the task assigned.
4. It focuses attention on the development of the skill of every individual in order to make him
up-to-date.:
Every person in the work place has to update his knowledge and skill in tune with the development in
work methods.HRM takes note of the fact that a person who does not level of efficiency.
5. It considers the need to provide incentives to the employees performing well:
Employees who are very good in their work need inducement in the form of incentives. These
incentives may be financial as well as non-financial.HRM does recognize the fact that if good
workers are not suitably rewarded and they may lose interest in their work.
6. It givers utmost importance to securing a favorable employee attitude:
The attitude of the employees toward work is a crucial factor determining performance.HRM
makes an earnest attempt to secure a favorable employees attitude .this is done by providing the
employees with proper working environment counseling are provided to those employees who
undergo stress.
7.It emphases he need for God human relation in every Workplace:
HRM places emphasis on cordial human relations confects shall not be allowed to damage inter
personnel relationships
8. It provides shall encourage the employees to form a union the workplace.
This will give the employees the benefit of collective bargaining. In the absence of such union
if any individual has certain grievances, he may find it difficult to respect the same to the
management in his personal capacity.
VARIOUS FUNCTIONS OF HRM:
Functions of HRM
Managerial Operational Advisory Performance Functions
Functions Functions Functions
1. Planning 1.Employment
2. Organizing 2.Training and development
3. Directing 3.Remuneration
4. Controlling 4.Working Condition
5. Motivating 5.Motivation
6. Co-coordinating 6.Industrial relations
7. Industrial relations
8. Separations.

DEPARTMENT OF HMCS
FUNCTIONS OF HRM
The HR department performs the following functions are:
I. Managerial functions:
1. Planning: Planning is dividing in advance what should be done. It helps to work in a
systematic manner and eliminates the need for working at man. Planning involves the determination
of objective, policies, procedures, rules, strategies, programmes and budgets.
In the context of HRM planning is necessary to determine the manpower needs of the enterprise,
The ensures that at any given point of time the right numbers and type of persons are employed in
different department of the enterprise and there is no problem of either surplus or shortage of labour
HR planning is also vital for formulating suitable personnel policies and programmes.
2. Organizing: involves the performance of the following tasks:
(a).Division of work among employees (assignment of duties)
(b).Delegation of authority/Transfer if officials rights by a superior to his subordinate and
(c).Creation of accountability (i.e.) the subordinate to who has been assigned and authority has
been delegated and is made answerable for the progress of work.
3. Directing: Directing the HR does not mean the progress of issuing more orders and institutions
to the subordinate staff. It is in fact the progress of supervising, guiding and motivating the
employees in order to get the best out of them. By performing the function the human resource
manager will also be able to get the whole hearted support and co-operation of all his subordinate
staff. This helps in the effective attainment of the enterprise objectives.
4. Controlling: If planning is looking a head, controlling is looking back. The object of the
control function is to ensure that what planned has been successfully achieved, planning without. The
process of control involves the forming stages.
(a)Establishing standards.
(b)Measuring actual Performance
(c)Comparing the actual performance with the standards lay down already.
(d)Measuring deviation and
(e)Taking corrective actions.
Controlling in the context of human resource management is performed by means of direct
observation, supervision, reports records and audit.
5. Motivating: HRM motivates the employees of the organization by providing monetary and
non-monetary incentives. This enables the management to get the maximum advantages out their
capability and efficiency.
6. Co-ordinating: HRM is responsible for establishing effective co-ordination
Between labor and capital resources of the enterprises.
II. Operative functions:

DEPARTMENT OF HMCS
The operative functions are those tasks on duties which are specifically entrusted to the HR
department under the greater supervision of HR manager. There are associated with employment
development, compensation, integration and maintainers of personnel of the organization.
1. Employment:
The first operative functions of HR department are the employment of proper kind and number
of person necessary to achieve the organization. This involves recruitment selection and placement
etc.
2. Training and development: Training and development of HR is a follow up of the employment
functions. It is a duty of management to train each employee properly to develop technical skills for
the job which he has been employed and also to develop him for the higher jobs in the organization.
Proper development of HR is necessary to increase their skills in doing their jobs and in satisfying
their growth need. For this purpose the HR department will desire appropriate training programmes.
3. Compensation or remuneration: This function is concerned with the determination of adequate
and equitable remuneration of the employees in the organization for their contribution to the
organizational goals and the personnel can be compensated both in terms of monetary as well as non-
monetary rewards. Factors which must be borne in mind while fixing the remuneration of personal
are other basic needs and requirements of jobs, legal provisions regarding maximum wages capacity
of the organization to pay, wage level afforded by competitions etc.
4. Maintenance of working conditions and welfare: Appointments and training of people is not
sufficient, they must be provided with good working conditions. So that they may like their work and
workplace and maintain their efficiency. Working conditions certainly influences the motivation and
morale of the employees. These include measures taken for health, safety and comfort of the
workplace.
5. Motivation: Employees work in the organization for the satisfaction of their needs. In many of the
cases, it is found that they do not contribute towards the organizational goals as much as they can.
This happen because employees are not adequate motivated. The HR manager helps the various
department managers to design a system of financial and non financial rewards to motivate the
employees.
6. Personnel records: Personal department maintains the records of the employees working in the
enterprise. It keeps full records of their taken achievements, transfer, promotion etc., It also preserves
many other relating to the behavior of personnel like absenteeism and labour turnover and the
personnel programmes and policies of the organization.
7. Industrial Relations: The responsibility of maintaining good industrial relations is associated to
HR managers. The HR managers can help in collective bargaining point consultation and joint
consultation and settlement of disputes, if they arise. The HR manager can do a great deal in
maintaining industrial peace in organization as he is deeply associated with various committees on
discipline, labor, welfare, safety, grievance etc.

DEPARTMENT OF HMCS
8. Separation: Most people don’t die on the job. The Organization is responsible for the meeting
certain requirements of due process in separation as well as assuming that the returned person is in as
good shape as possible. The HR manager has to ensure the release of retirement benefits to returning
in time.
III. Advisory functions:
HR manager has specialized education and training in maintaining human education and
training in maintaining human relations. He is an expert in his area and so can give advice on matters
relating to human resources. He offers his advice to employees and management. The HR managers
adviser the top management in formulation and evaluation of personnel programmes, policies and
procedures.
He also gives advice for achieving and motivating good human relations and high employee
morale so that these can be motivated to work and help profitability of the organization.
IV. Performance Evaluation:
The performance evaluation of HR requires specialized knowledge and skill this department
should be entrusted to the person who possesses these skills. The main objectives of the HR
department are to procure, develop compensate and motivate the people for the achievement of
organizational goals.
PERSONNEL MANAGEMENT
The term resource management refers to the task of handling people who belong to the different
strata of the society that is student’s employees, employer and the self employed spots man house
wells etc.
DISTINCTION BETWEEN HRM AND PERSONAL MANAGEMENT:
S.NO HRM PERSONAL MANAGEMENT
1 Contemporary management This is a conventional name
2
The term when used in a Broader sense
refers to the Task managing people
Belonging to the different Sections of
the society
The term however used refers to the
tasks of managing employee of the
concern
3
It has relevance not only for a Business
organisation but for a government as
well
It is mainly relevant for Business
establishment.
4
To employee is seen as a resource of the
enterprise like any other resource
Employee is seen as a commodity that
can be purchased for a price

DEPARTMENT OF HMCS
5
Measures are taken for the overall
Progress of the employee that is His
economic social and Psychological
Measure is taken to satisfy the
economic needs of the employee
mainly
6
The amount spent on the employee is
received as an investment
The amount spent on the employee.
Is only seen as expenditure incurred
7 The term has wider scope The term has limited scope
ROLE OF HUMAN RESOURCE MANAGER:
 To provide Counseling: In the workplace, the employees may undergo stress may
related to both official and personal problems on such a situation, the employees may approach the
HR manager for help and the Katter is expected to provide the necessary counseling to unable the
employees to get aid of their stress.
 To Act as a link between the differences individuals in the organization: The
Interpersonal relationship in the work place must always be conductive for work. Difference of
opinion is bound to arise on several organization matters. The HR has to make effort to settle any
dispute that may arise between the individuals.
 To ensure that the employee get what is due to them: The HR manager has the duty to
ensure that the employees are aware of benefit monetary or non-monetary that they are entitled to get
from the management.
 To Act as a spokesman of the Organization: It is the various executives in the
organization; it is the HR manager who has better knowledge of the activities of the enterprise and id
therefore the right persons to answer queries.
 To introduce any change without facing resistance from anyside: Changes inevitable for
an organization to progress changes may be effected in the work methods, Working hours, working
conditions and so on. The employee may resist certain changes prepared by the management while
the management may not accept changes desired by the employees. In their case it is the HR manager
who is the right person to convince everyone and introduce any change without the problem of
resistance.
 To advice the line Managers: The HR manager, who is a staff manager, advisor the line
manager eg., The Production manager and the marketing manager on certain matters pertaining to
recruitment, selection, training, appraisal of performance and so on. The Relationship between the
line managers and the HR managers shall always be coronial.
QUALITIES OF A HUMAN RESOURCE MANAGER:
To be successful on his job the HR manager shall hold on MBA with specialization in
HRM or personnel management obtained from one of the Indian institutes of management (IIMS) or

DEPARTMENT OF HMCS
its equivalent.Knowledge of organization theory, behavioral science and labor is absolutely necessary
for such a person.
A part from the academic qualifications mentioned above, the HR manager is expected to
have certain other qualities to be successful in his work.
(a) He should possess good communication skills. He should be fluent in English, Hindhi, and a
couple of Indian languages any then; he will be able to convey his ideal emphatically.
(b) He should be creative person and only then he will be able to conceive novel ideas to solve
complex HR management problems.
(c) He should be able to analyze any problem objectively. Only then he will be able to arrive at a
practical solution.
(d) He should be able to inspire, induce and motivate the employees to put in their best efforts. The
management must motivate person himself.
(e) He should not be fair and honest in his dealings. Only then the subordinate’s staffs will
response faith in him.
(f) He should have ability to make decisions independently.
(g) He should have leadership qualities without which he is not able to lead a team of
subordinate’s staff and guide them properly.
(h) He should be curious always and able to be a dynamic person.
(i) He should have good memory to be able to recollect anything. He should not give scope for
others to prompt him the art.
ORGANIZATION OF HR DEPARTMENT
Human Resource Department involves the planning for the future and finding out how many
employees will be needed in the future by the business and what types of skills should they possess.
It depends on the following factors
 The number of people leaving the job
 The projected growth in sales of the business
 Technological changes
 Productivity level of the workers
 Human Resource Department is also involved in designing the Job analysis and Job
description for the prospective vacancies.
A job analysis is the process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job.
Job descriptions are written statements that describe the:
 duties,
 responsibilities,
 most important contributions and outcomes needed from a position,
 required qualifications of candidates, and reporting relationship and co-workers of a particular
job.

DEPARTMENT OF HMCS
 Determining wages and salaries
 Recruitment and Selection
 Performance Appraisal
 Training and Development
 Employee welfare and motivation
 Addressing employees grievances
 Labour management relations
 Implementing organizational policies
 Dismissal and redundancy
HR Policies & Procedures
Human resource policies and procedures are industry-specific and will vary between different
business entities. Such policies help establish processes and practices that protect and enhance an
organization's objectives. These human resource practices manage a company’s risks, address
employee needs and assist in adhering to state and federal labor laws. When policies and procedures
parallel the organization’s mission, vision, values, strategic goals and objectives, they become the tools
used to help the company achieve those things.

HRM UNIT

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