Human Resource Management (HRM) is a crucial function within organizations that focuses on managing the people who work for the organization. Its primary objective is to maximize employee performance to achieve the organization's goals effectively.

1. Unit 1

2. • SCOTT, CLOTHIER AND SPRIEGEL -have defined Human
ResourceManagement as that branch of management which is
responsible on a staff basis for concentrating on those aspects of
operations which are primarily concerned with the relationship of
management to employees and employeesto employees and with the
development of the individual and the group.
• French Wendell- defines Human resource management as the
recruitment,selection, development, utilisation, compensation and
motivation of humanresources by the organisation.

3. OBJECTIVES OF HRM
• To ensure effective utilisation of human resources , all other
organisational resources will be efficiently utilised by the human
resources.
• To establish and maintain an adequate organisational structure of
relationship among all the members of an organisation by dividing of
organisation tasks into functions, positions and jobs, and by
definingclearly the responsibility, accountability, authority for each
job and itsrelation with other jobs in the organisation.

4. • To generate maximum development of humanresources within the
organisation by offering opportunities for advancement to employees
through training and education.
• To ensure respect for human beings by providing various services and
welfare facilities to the personnel.
• To ensure reconciliation of individual/group goals with those of the
organisation in such a manner that thepersonnel feel a sense of
commitment and loyalty towards it.
• To identify and satisfy the needs of individuals by offering various
monetary and non-monetary rewards .

5. NATURE OF HUMAN RESOURCE MANAGEMENT
• Inherent Part Of Management
• Pervasive Function
• Basic to all Functional Areas
• People Centered

6. Functions of HRM

7. Evolution of HRM
• Early Personnel Management: In the early 20th century, HRM was in
its infancy and was primarily referred to as personnel management.
During this era, HRM's role was predominantly administrative in
nature. The primary focus revolved around executing basic tasks like
payroll management, record-keeping, and addressing labor relations.
The overarching objective of personnel management was to ensure
strict compliance with labor laws and maintain workforce stability.

8. • Transition to Human Resource Management: The 1980s marked a
significant turning point in the evolution of HRM. During this era,
HRM underwent a remarkable transformation and emerged as a
distinct field of study and practice. Organizations began to realize the
strategic importance of effective human resource management. HRM
expanded its scope beyond mere administrative tasks and started
encompassing a broader range of functions.

9. • The Strategic HRM Era: As we moved into the late 20th century and
the early 21st century, HRM entered what can be termed as the
Strategic Human Resource Management era. During this phase, HRM
evolved into a strategic partner within organizations. . Strategic HRM
emphasized the alignment of HR practices with the broader
organizational objectives. HRM professionals began to actively engage
in strategic decision-making processes, such as talent management,
succession planning, and workforce analytics.

10. HRM in Indian and Global Scenario.
1) Compliance with laws and regulations
• The countries are amending Labour laws to be more employee-friendly. This is
becoming a challenge for organizations, especially small and medium enterprises,
as they need more resources to keep pace with such regulatory changes.
• This is because smaller companies don’t usually have focused departments for HR
that can update the company employment policies by changing laws. Failure to
comply with laws and regulations can make your organization liable for a lawsuit.
An easy solution to this HRM problem is to hire statutory compliance agencies. It
saves time, and you receive expert opinions and consultation on all the policies
and guidelines that are a must for your industry. This convenience comes at a
cost, but it’s a small price to pay compared to the risks of non-compliance and the
threat to your brand image

11. Health and safety of staff
• Similar to laws and regulations, it is human resources’ responsibility to ensure the
workers’ health and safety within the company. The challenge is creating and
enforcing health and safety processes within the organization.
• Your organization must have employee training programs to help them
understand the health and safety measures necessary for the role. In an industry
such as mining, manufacturing, or construction, tracking workplace injuries or
safety violations becomes a challenge due to the extensive work area.
• The solution is to create a designated health and safety committee within your
organization. If you are a small or medium-scale enterprise, you can assign a
single person to that role

12. Building leadership within the team
• When you’re too focused on creating resources and training tools for
the staff, it is easy to overlook the need for grooming leaders within
the workforce. Leaders are essential in influencing the organizational
structure and deciding staff satisfaction. You will face frequent
employer and employee conflicts if you lack leadership grooming.
Such disagreements result in an unhealthy work environment,
adversely affecting the morale and productivity of your workers.
• The solution lies in creating a learning and development strategy
targeting employees at all levels within the organizational chart. It is
essential that leaders are trained, mentored, and guided by mentors
within the management.

13. Attracting and retaining top talents
• Competition is one of the essential factors that must be kept into consideration
when planning HR strategies. It is even more pressing for small and medium
companies because hiring and retaining skilled workers is difficult when they
compete with big names and brands.
• Recruitment is challenging, but retention is only possible if you are providing staff
with the correct benefits, opportunities, exposure, and a positive work
environment. Attracting and retaining top talent is one of the most significant
challenges of HRM in India.
• The solution is to create a strong employer brand to attract top talent into your
organization. Employees can do background checks on the company and
understand their employer’s value easily by connecting with other workers from
the same company through social media.

14. Adding diversity in the workplace
• Having diversity in the workforce is a boon for any organization. Bringing people
from diverse cultures and ethnicities enhances your organization’s problem-
solving capability and innovation. However, for human resource management,
this also brings challenges related to diversity in age, gender, nationality, culture,
etc.
• It is a great challenge to cater to the unique requirements of the workers
dependent on their age, gender, or ethnicity. As a manager, maintaining
employee engagement while fostering effective communication when workers
from different backgrounds work together is difficult because employee
disagreements are much more frequent.
• To resolve conflicts arising due to diversity, human resource management must
make arrangements to sensitize all staff to respect and show compassion towards
the culture of other people they are working with. You can make culture
orientation part of the onboarding process within your company.

15. Key Differences Between HRM and HRD
• Human Resource Management refers to the application of principles
of management to manage the people working in the organisation.
Human Resource Development means a continuous development
function that intends to improve the performance of people working
in the organisation.
• HRM is a function of management. Conversely, HRD falls under the
umbrella of HRM.
• HRM is a reactive function as it attempts to fulfil the demands that
arise while HRD is a proactive function, that meets the changing
demands of the human resource in the organisation and anticipates
it.

16. • HRM is a routine process and a function of administration. On the
other hand, HRD is an ongoing process.
• The basic objective of HRM is to improve the efficiency of employees.
In contrast to HRD, which aims at developing the skill, knowledge and
competency of workers and the entire organisation.
• HRD is an organizationally oriented process; that is a subsystem of a
big system. As opposed to HRM where there are separate roles to
play, which makes it an independent function.
• Human Resource Management is concerned with people only. Unlike
Human Resource Development, that focus on the development of the
entire organisation.

17. SHRM vs. Conventional HRM.
• SHRM is the process of aligning the business strategy with the
company’s human resource practices, so as to attain strategic goals of
an organization. In SHRM, the workforce of the company is managed
proactively.
• The aim of SHRM is that companies must adjust their HR strategy
within the periphery of overall business objectives, thus ensuring that
HR practices are in tune with the strategic objectives of the
organization.

18. • The governance of manpower of the organisation in a thorough and
structured manner is called Human Resource Management or HRM. A
managerial function which implies framing of HR strategies in such a
way to direct employees efforts towards the goals of an organisation
is known as SHRM.
• The process of HRM is reactive in nature. On the other hand, SHRM is
a proactive management function.
• In human resource management, the responsibility of manpower lies
with the staff specialists, whereas in strategic human resource
management, the task of managing the workforce, is vested in the
line managers.

19. • HRM follows fragmented approach, which stresses on applying
management principles while managing people in an organisation. As
against this, SHRM follows an integrated approach, which involves
lining up of business strategy with the company’s HR practices.
• Human resource management emphasises on employee relations,
ensuring employees motivation, and also the firm conforms to the
necessary employment laws. Conversely, SHRM focuses on a
partnership with internal and external constituent groups.

20. • HRM supports short-term business goals and outcomes, but SHRM
supports long-term goals and results of business.
• In human resource management, the human resource manager plays
the role of change follower, i.e. he/she responses to change, hence
pursues transactional leadership style. As opposed to SHRM, the
human resource manager is a change leader, i.e. an imitator, thus
seeks transformational leadership.
• The primary element in HRM is the capital and products, but people
and their knowledge are the building blocks of SHRM.

21. • If we talk about accountability, a conventional HRM is a cost centre.
Unlike a strategic HRM which is an investment centre.
• In human resource management, stringent control over employees is
exercised. As against this, in strategic human resource management,
no such control is imposed, rather the rules for managing manpower
is lenient.

22. Computer Application in Human Resource
Management
• Decisions Support System:A decision support system can be created
in which senior and experienced manager’s procedures and methods
of decision making can be replicated. It will help the managers
immensely to arrive quickly at a decision on any problem related to
human resources of the organisation.
• DSS facilitates the present executive to have experts’ advice at his
finger tips. The system is user friendly. It provides a readymade advice
to the executive. DSS for several human resources problems can be
developed and kept ready. DSS helps an executive to plan for future.

23. Data base Management System:
• It is a collection of software for processing interrelated data. In large
organisations there is an expansion in succession at the bottom
structure. They face with a problem of integrating the organisations
human resources information. The data base management systems
are special computer programmes enabling user to create,
manipulate, retrieve and maintain file data. The database
management system facilitates creation, addition, deletion and
modification and sorting of records.
• It also helps in preparing printed reports as per required
specifications. It helps in arranging the data in desired sequence. It
acts as an interface between applications programme and the office
files.

24. Qualities of HR Manager
• Sympathetic Attitude
• Quick Decisions
• Integrity
• Patience
• Formal Authority
• Leadership
• Social Responsibility
• Good Communication Skills

25. • Sympathetic Attitude-A good personnel manager must have
a humane approach to human resource problems. Regardless of the
problems faced by the employees, he must have a sympathetic
attitude while dealing with them.
• Quick Decisions-He should display the ability to make quick decisions.
Let’s assume that there is a conflict between a superior and an
employee in the organization. When the HR manager tries to mediate
and put an end to the conflict, he might have to make some
quick decisions. He should be mentally alert and therefore not get
caught unawares.

26. • Integrity-Being the head of the personnel or human resource
department, an HR manager should display integrity. Honesty and
frankness are the hallmarks of a good human resource manager. At
no time can the employees doubt the integrity of the personnel
manager.
• Patience-He should be extremely patient and not someone who loses
his temper easily. While dealing with employees, it is important to be
a good listener, especially when an employee is voicing his concerns.
And good listening skills require a lot of patience.

27. • Formal Authority-He should depend on his formal authority alone. In
fact, an effective HR manager earns his informal authority of
influencing people through his interpersonal skills.
• Leadership-Good leadership skills are essential to guide the
employees towards achieving the organization’s objectives. He should
also keep people motivated and encourage them to use their skills for
the overall good of the enterprise.
• Social Responsibility-He should have a sense of social responsibility.
Further, he must encourage employees to discharge their social
obligations to different segments of society. After all, a good human
resource manager isn’t only about the organization. He also needs to
look at the broader human resource element.

28. • Good Communication Skills-Another essential quality of a human
resource manager is that he must possess good communication skills.
In fact, since a major part of his role involves interacting with
employees, unions, and management, being a good communicator is
a must.