Human resource management (hrm)

Human Resource
Management (HRM)

Meaning
Human Resource Management (HRM) is the term
used to describe formal systems devised for
the management of people within an organization.
The responsibilities of a human resource manager
fall into three major areas: staffing, employee
compensation and benefits,and defining/designing
work.
Human Resource Management

Objective
• it help the organization reach its goals.
• To ensure effective utilization and maximum development of human resources.
• To ensure respect for human beings. To identify and satisfy the needs of indls.
• To ensure reconciliation of individual goals with those of the organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-motivated employees.
• To increase to the fullest the employee’s job satisfaction and self-actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To develop overall personality of each employee in its multidimensional aspect.
• To enhance employee’s capabilities to perform the present job.
• To introduce the sense of team spirit, team work and inter-team collaboration.

Recruitment and Training
This is one of the major responsibilities of the human resource team. The
HR managers come up with plans and strategies for hiring the right kind
of people. They design the criteria which is best suited for a specific job
description. Their other tasks related to recruitment include formulating
the obligations of an employee and the scope of tasks assigned to him or
her. Based on these two factors, the contract of an employee with the
company is prepared. When needed, they also provide training to the
employees according to the requirements of the organisation. Thus, the
staff members get the opportunity to sharpen their existing skills or
develop specialised skills which in turn, will help them to take up some
new roles.
Importance of HRM

Managing Disputes
In an organisation, there are several issues on which disputes may
arise between the employees and the employers. You can say conflicts
are almost inevitable. In such a scenario, it is the human resource
department which acts as a consultant and mediator to sort out those
issues in an effective manner. They first hear the grievances of the
employees. Then they come up with suitable solutions to sort them
out. In other words, they take timely action and prevent things from
going out of hands.
Performance Appraisals
HRM encourages the people working in an organisation, to work
according to their potential and gives them suggestions that can help
them to bring about improvement in it. The team communicates with
the staff individually from time to time and provides all the necessary
information regarding their performances and also defines their
respective roles. This is beneficial as it enables them to form an outline
of their anticipated goals in much clearer terms and thereby, helps
them execute the goals with best possible efforts. Performance
appraisals, when taken on a regular basis, motivate the employees.

Maintaining Work Atmosphere
This is a vital aspect of HRM because the performance of an individual in
an organisation is largely driven by the work atmosphere or work culture
that prevails at the workplace. A good working condition is one of the
benefits that the employees can expect from an efficient human resource
team. A safe, clean and healthy environment can bring out the best in an
employee. A friendly atmosphere gives the staff members job satisfaction
as well.
Developing Public Relations
The responsibility of establishing good public relations lies with the HRM
to a great extent. They organise business meetings, seminars and
various official gatherings on behalf of the company in order to build up
relationships with other business sectors. Sometimes, the HR
department plays an active role in preparing the business and marketing
plans for the organisation too.
Any organisation, without a proper setup for HRM is bound to suffer from
serious problems while managing its regular activities. For this reason,
today, companies must put a lot of effort and energy into setting up a
strong and effective HRM.

FUNCTIONS OF HRM
THERE ARE THREE MAJOR TYPE OF FUNTION :_
1. MANAGERIAL – PODC
2. OPERATIVE – Employment, development ,Compensation,
maintenance, motivation, personal records, industrial relation,
separation
3. ADVISORY – advise to top level management and departmental
heads

1. Managerial Functions:
The Human Resource Manager is a part of the organisational
management. So he must perform the basic managerial
functions of planning, organising, directing and controlling in
relation to his department.
A. Planning:
To get things done through the subordinates, a manager must plan
ahead. Planning is necessary to determine the goals of the organisation
and lay down policies and procedures to reach the goals. For a human
resource manager, planning means the determination of personnel
programs that will contribute to the goals of the enterprise, i.e.,
anticipating vacancies, planning job requirements, job descriptions and
determination of the sources of recruitment.
The process of personnel planning involves three essential steps.
Firstly, a supply and demand forecast for each job category is made. This
step requires knowledge to both labour market conditions and the
strategic posture and goals of the organisation.
Secondly, net shortage and excess of personnel by job category are
projected for a specific time horizon.
Finally, plans are developed to eliminate the forecast shortages and
excess of particular categories of human resources.

B. Organizing:
Once the human resource manager has established objectives and
developed plans and programs to reach them, he must design and
develop organisation structure to carry out the various operations.
The organisation structure basically includes the following:
(i) Grouping of personnel activity logically into functions or positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and
responsibilities involved;
(iv) Co-ordination of activities of different individuals.
C. Directing:
The plans are to be pure into effect by people. But how smoothly the
plans are implemented depends on the motivation of people. The
direction function of the personnel manager involves encouraging
people to work willingly and effectively for the goals of the enterprise.
In other words, the direction function is meant to guide and motivate
the people to accomplish the personnel programs. The personnel
manager can motivate the employees in an organisation through
career planning, salary administration, ensuring employee morale,
developing cordial relationships and provision of safety requirements
and welfare of employees.

The motivational function poses a great challenge for any manager.
The personnel manager must have the ability to identify the needs of
employees and the means and methods of satisfy those needs.
Motivation is a continuous process as new needs and expectations
emerge among employees when old ones are satisfied.
D. Controlling:
Controlling is concerned with the regulation of activities in accordance
with the plans, which in turn have been formulated on the basis of the
objectives of the organisation. Thus, controlling completes the cycle and
leads back to planning. It involves the observation and comparison of
results with the standards and correction of deviations that may occur.
Controlling helps the personnel manager to evaluate the control the
performance of the personnel department in terms of various operative
functions. It involves performance appraisal, critical examination of
personnel records and statistics and personnel audit.

2. Operative Functions:
The operative functions are those tasks or duties which are specifically
entrusted to the human resource or personnel department. These are
concerned with employment, development, compensation, integration
and maintenance of personnel of the organisation.
A. Employment:
The first operative function of the human resource of personnel
department is the employment of proper kind and number of persons
necessary to achieve the objectives of the organisation. This involves
recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the
manpower requirements both in terms of number and quality of the
personnel. Recruitment and selection cover the sources of supply of
labour and the devices designed to select the right type of people for
various jobs. Induction and placement of personnel for their better
performance also come under the employment or procurement
function.

2. Development:
Training and development of personnel is a follow up of the
employment function. It is a duty of management to train each
employee property to develop technical skills for the job for which he
has been employed and also to develop him for the higher jobs in the
organisation. Proper development of personnel is necessary to increase
their skills in doing their jobs and in satisfying their growth need.
For this purpose, the personnel departments will device appropriate
training programs. There are several on- the-job and off-the-job
methods available for training purposes. A good training program
should include a mixture of both types of methods. It is important to
point out that personnel department arranges for training not only of
new employees but also of old employees to update their knowledge in
the use of latest techniques.

3. Compensation:
This function is concerned with the determination of adequate and
equitable remuneration of the employees in the organisation of their
contribution to the organisational goals. 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
personnel are their basic needs, requirements of jobs, legal provisions
regarding minimum wages, capacity of the organisation to pay, wage
level afforded by competitors etc. For fixing the wage levels, the
personnel department can make use of certain techniques like job
evaluation and performance appraisal.
4. Maintenance (Working Conditions and Welfare):
Merely appointment 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 influence the motivation and morale of the employees.

These include measures taken for health, safety, and comfort of the
workforce. The personnel department also provides for various welfare
services which relate to the physical and social well-being of the
employees. These may include provision of cafeteria, rest rooms,
counselling, group insurance, education for children of employees,
recreational facilities, etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their needs.
In many of the cases, it is found that they do not contribute towards the
organisational goals as much as they can. This happens because
employees are not adequately motivated. The human resource manager
helps the various departmental managers to design a system of
financial and non-financial rewards to motivate the employees.
6. Personnel Records:
The human resource or personnel department maintains the records of
the employees working in the enterprise. It keeps full records of their
training, achievements, transfer, promotion, etc. It also preserves many
other records relating to the behaviour of personnel like absenteeism
and labour turnover and the personnel programs and policies of the
organisation.

7. Industrial Relations:
These days, the responsibility of maintaining good industrial relations is
mainly discharged by the human resource manager. The human
resource manager can help in collective bargaining, joint consultation
and settlement of disputes, if the need arises. This is because of the
fact that he is in possession of full information relating to personnel and
has the working knowledge of various labour enactments.
The human resource manager can do a great deal in maintaining
industrial peace in the organisation as he is deeply associated with
various committees on discipline, labour welfare, safety, grievance, etc.
He helps in laying down the grievance procedure to redress the
grievances of the employees. He also gives authentic information to the
trade union leaders and conveys their views on various labour problems
to the top management.
8. Separation:
Since the first function of human resource management is to procure
the employees, it is logical that the last should be the separation and
return of that person to society. Most people do not die on the job. The
organisation is responsible for meeting certain requirements of due
process in separation, as well as assuring that the returned person is in
as good shape as possible. The personnel manager has to ensure the
release of retirement benefits to the retiring personnel in time.

3. Advisory Functions:
Human resource manager has specialised education and training in
managing human resources. He is an expert in his area and so can
give advise on matters relating to human resources of the
organisation.
He offers his advise to:
1. Advised to Top Management:
Personnel manager advises the top management in formulation and
evaluation of personnel programs, policies and procedures. He also
gives advice for achieving and maintaining good human relations and
high employee morale.
2. Advised to Departmental Heads:
Personnel manager offers advice to the heads of various departments
on matters such as manpower planning, job analysis and design,
recruitment and selection, placement, training, performance appraisal,
etc.

1) Administer compensation, benefits and performance
management systems, and safety and recreation programs.
2) Identify staff vacancies and recruit, interview and select
applicants.
3) Allocate human resources, ensuring appropriate matches
between personnel.
4) Provide current and prospective employees with information
about policies, job duties, working conditions, wages, opportunities
for promotion and employee benefits.
5) Perform difficult staffing duties, including dealing with
understaffing, refereeing disputes, firing employees, and
administering disciplinary procedures.
6) Advise managers on organizational policy matters such as equal
employment opportunity and sexual harassment, and recommend
needed changes.
Duties of HR manager

Human resources planning is a process that identifies current and
future human resources needs for an organization to achieve its goals.
Human resources planning should serve as a link between human
resources management and the overall strategic plan of an
organization. Aging worker populations in most western countries and
growing demands for qualified workers in developing economies have
underscored the importance of effective Human Resources Planning.
Human resources Planning ,
Recruitment and Selection
MEANING
As defined by Bulla and Scott, human resource planning is ‘the
process for ensuring that the human resource requirements of an
organization are identified and plans are made for satisfying those
requirements.

1. Human resource planning meets the organisation need for
right type of people in right number at right times.
2. By maintaining a balance between demand for and supply of
human resources, human resource planning makes optimum use
of human resources, on the one hand, and reduces labour cost
substantially, on the other.
3. Careful consideration of likely future events, through human
resource planning might lead to the discovery of better means for
managing human resources. Thus, foreseeable pitfalls might be
avoided.
4. Manpower shortfalls and surpluses may be avoided, to a large
extent.
5. Human resource planning helps the organisation create and
develop training and succession planning for employees and
managers. Thus, it provides enough lead time for internal
succession of employees to higher positions through promotions.
Importance of HRP

6. It also provides multiple gains to the employees by way of promotions,
increase in salary and other perquisites and fringe benefits.
7. Some of the problems of managing change may be foreseen and their
consequences mitigated. Consultations with affected groups and
individuals can take place at an early stage in the change process. This
may avoid resistance for change.
8. Human resource planning compels management to asses critically the
strength and weaknesses of its employees and personnel policies on
continuous basis and, in turn, take corrective measures to improve the
situation.
9. Through human resource planning, duplication of efforts and conflict
among efforts can be avoided, on the one hand, and coordination of
worker’s efforts can be improved, on the other.
10. Last but no means the least, with increase in skill, knowledge,
potentialities, productivity and job satisfaction, organisation becomes the
main beneficiary. Organisation is benefitted in terms of increase in
prosperity/production, growth, development, profit and, thus, an edge
over its competitors in the market.

Benefits of HRP
1. RECRUITMENT AND SELECTION
2. FUTURE PERSONNEL NEED
3. PROMOTION OPPURTUNITY
4. HRP AVOIDS SHORTAGE OR EXCESS OF PERSONNEL
5. TRAINING
6. PERFORMANCE APPRAISAL

The process of finding and hiring the best-qualified candidate (from
within or outside of an organization) for a job opening, in a timely
and cost effective manner. The recruitment process includes
analyzing the requirements of a job, attracting employees to that
job, screening and selecting applicants, hiring, and integrating the
new employee to the organization.
Meaning
Definition
It is a process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an
organisation.

1. Direct Method
2. Indirect Method
3. Third Party Method.
Methods of Recruitment
1. Direct Method:
In this method, the representatives of the organisation are sent to the
potential candidates in the educational and training institutes. They
establish contacts with the candidates seeking jobs. These
representatives work in cooperation with placement cells in the
institutions Persons pursuing management; engineering, medical etc.
programmes are mostly picked up in this manner.
Sometimes, some employer firms establish direct contact with the
professors and solicit information about students with excellent
academic records. Sending the recruiter to the conventions, seminars,
setting up exhibits at fairs and using mobile office to go to the desired
centres are some other methods used to establish direct contact with
the job seekers.

2. Indirect Methods:
Indirect methods include advertisements in news papers, on the radio
and television, in professional journals, technical magazines etc.
This method is useful when:
(I ) Organisation does not find suitable candidates to be promoted to
fill up the higher posts
(ii) When the organisation wants to reach out to a vast territory, and
(iii) When organisation wants to fill up scientific, professional and
technical posts.
The experience suggests that the higher the position to be filled up in
the organisation, or the skill sought by the more sophisticated one, the
more widely dispersed advertisement is likely to be used to reach to
many suitable candidates.
Sometimes, many organisations go for what is referred to as blind
advertisement in which only Box No. is given and the identity of the
organisation is not disclosed. However, organisations with regional or
national repute do not usually use blind advertisements for obvious
reasons.

3. Third Party Methods:
These include the use of private employment agencies, management
consultants, professional bodies/associations, employee
referral/recommendations, voluntary organisations, trade unions, data
banks, labour contractors etc., to establish contact with the job-
seekers.

Selection is the process of selecting a qualified person who can
successfully do a job and deliver valuable contributions to the
organization. A selection system should depend on job analysis. This
ensures that the selection criteria are job related and will provide
meaningful organizational value.
MEANING

1. Inviting applications:
The prospective candidates from within the organization or outside the
organization are called for applying for the post. Detailed job
description and job specification are provided in the advertisement for
the job. It attracts a large number of candidates from various areas.
2. Receiving applications:
Detailed applications are collected from the candidates which provide
the necessary information about personal and professional details of a
person. These applications facilitate analysis and comparison of the
candidates.
3. Scrutiny of applications:
As the limit of the period within which the company is supposed to
receive applications ends, the applications are sorted out. Incomplete
applications get rejected; applicants with un-matching job
specifications are also rejected.
.
STEPS IN SELECTION PROCESS

4. Written tests:
As the final list of candidates becomes ready after the scrutiny of
applications, the written test is conducted. This test is conducted for
understanding the technical knowledge, attitude and interest of the
candidates. This process is useful when the number of applicants is
large. Many times, a second chance is given to candidates to prove
themselves by conducting another written test.
5. Psychological tests:
These tests are conducted individually and they help for finding out the
individual quality and skill of a person. The types of psychological tests
are aptitude test, intelligence test, synthetic test and personality test
6. Personal interview:
Candidates proving themselves successful through tests are
interviewed personally. The interviewers may be individual or a panel.
It generally involves officers from the top management.
The candidates are asked several questions about their experience on
another job, their family background, their interests, etc. They are
supposed to describe their expectations from the said job. Their
strengths and weaknesses are identified and noted by the interviewers
which help them to take the final decision of selection.

7. Reference check:
Generally, at least two references are asked for by the company from
the candidate. Reference check is a type of crosscheck for the
information provided by the candidate through their application form
and during the interviews.
8. Medical examination:
Physical strength and fitness of a candidate is must before they takes
up the job. In-spite of good performance in tests and interviews,
candidates can be rejected on the basis of their ill health.
9. Final selection:
At this step, the candidate is given the appointment letter to join the
organization on a particular date. The appointment letter specifies the
post, title, salary and terms of employment. Generally, initial
appointment is on probation and after specific time period it becomes
permanent.
10. Placement:
This is a final step. A suitable job is allocated to the appointed
candidate so that they can get the whole idea about the nature of the
job. They can get adjusted to the job and perform well in future with
all capacities and strengths

Human resource management (hrm)

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