The document provides an overview of human capital management (HCM) and human resource management (HRM). It defines HRM as the organizational function dealing with managing employee hiring, motivation, and retention. The key functions of HRM include planning, recruitment, performance management, training, compensation, and labor relations. Contemporary issues in HRM discussed include adapting to the gig economy, automation, changing regulations, talent retention, and managing diversity. The role of HRM is shifting in India and globally to be more strategic and focus on developing employee skills and engagement to meet business needs.

1. Module 1
Essentials of HCM
• 1.1Introduction and Nature of HRM,
• 1.2scope, functions and importance of HRM,
• 1.3contemporary issues and practices in HRM,
• 1.4changing concept of HRM in India and in the globe.

2. Introduction
To understand what is Human Capital Management Let's first understand what is
management.

3. • Management: refer to maximum or proper utilization and best use of
limited and a scarce resource.
• The success of any organization depends upon how it manages its
resources. While several resources are non human resource such as land,
capital and equipment, it is the human resource and its management which
is at the heart of an organization’s success.
• Human Resource (HR) refers to all the people who work in an
organization called personnel.
• Human Resource Management refers to the organizational function
which includes practices that help the organization to deal effectively with
its people during the various phases of the employment cycle.
• HRM is management function concerned with hiring, motivating, and
maintaining people in an organisation. It focuses on people in the
organisation.

5. Nature of HRM
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good results.
• It helps an organization meet its goals in the future by providing for
competent and well-motivated employees.
• It tries to build and maintain cordial relations between people working at
various levels in the organization.
• It is a multi-disciplinary activity, utilizing knowledge and inputs drawn
from psychology, economics, etc.

6. HRM is concerned with:
• It is concerned with the “people” dimension in management.
• It includes activities focusing on the effective use of human resources in
an organization.
• It is concerned with the development of a highly motivated and smooth
functioning workforce.
• It also includes planning, acquiring, developing, utilizing and
maintaining ‘human resources’ in the achievement of organizational goals.

7. Importance of H.R.M
• To hire right person for the right job
• To avoid high manpower turnover
• To ensure people doing their best
• To conduct proper interview
• To avoid legal implications
• To ensure proper compensation management
• To ensure equity and justice and right pay for right person
• To avoid unfair labor practices

8. Therefore HRM is concerned with:

9. Functions of HRM

10. Functions of HRM
A)Managerial Functions- It refers to the administrative functions of an organization which includes decision
making. It has following parts-
1.Planning
2.Organising
3.Directing
4.Controlling
B)Operative Functions-The operative functions are those tasks or duties or functions which a company entrusts
to the human resource or personnel department.
1.Recruitment and selection of employees
2.Job Design
3.Performance Appraisal
4.Training and Development-
5.Maintenance
6.Labor Welfare
C)Advisory Functions- Advisory functions means providing advice to top level management in formulation of
plan, job analysis and recruitment , selection of employees also it provides advises to various heads of
department regarding training and development of its employees.
(a)Personnel Policies
(b) Personnel Procedures

11. contemporary issues in HRM
• The Gig Economy
• Innovation and Automation
• Changing Regulatory Issues
• Recruiting and Retaining Top Talent
• Diversity and Harmony Issues
Note:A contemporary issue is any event, idea, opinion or topic for any subject that relates to the present
day. They can be found in almost any matter known to human being.

12. The Gig Economy
• Many talented people have decided to leave the traditional workforce in
exchange for freelance work in their area of expertise. This gives them
desired flexibility in their lifestyle, and is a great selling point for potential
clients, because overhead is less when you are a contract employee.
• Although this is great system for the talent, working with a different system
is a challenge for human resources managers. If the best talent is no longer
available for an in-house position, human resource managers must find
ways to either create long-term contracts or to develop other suitable
talents.

13. Innovation and Automation
• Human resources departments are often tasked with training and
developing employees. This means that when a new company rollout
includes technological advances, the human resources department needs to
prepare itself to train people.
• In some instances, this means coordinating with technology developers to
create programming that is easily rolled out to employees. In other cases,
the human resources department must help roll out the program and help
run the training programs internally.

14. Changing Regulatory Issues
• Compliance with regulatory issues is a primary duty of human resources
managers. While this job duty hasn't changed over the years, what it covers
evolves constantly. This means that human resource managers need to be
on top of all changes. An example of changes is new laws regarding
healthcare benefits.
• Privacy laws are constantly requiring updated disclosures and employee
training and acknowledgments. If the human resources manager is not
current on new regulations and laws, the company is exposed to lawsuits,
penalties and potential public scrutiny.

15. Recruiting and Retaining TopTalent
• Finding and keeping great talent is difficult, especially for small businesses
that don't have the resources to offer huge compensation and benefits
packages.
• This means that human resources managers are always looking to find
talented, loyal prospects for the company. It is important for human
resources managers to look for talent internally and externally, as it is not
enough to just go to job fairs or to reach out to people on LinkedIn.
• HR managers must not only cultivate these relationships, they must also
cultivate internal employees that are suitable for development and
promotion.

16. Diversity and Harmony Issues
• Business owners know that a diverse workforce that's working together in
harmony will build stronger teams, yield better ideas and offer broader
customer satisfaction. However, without the harmony, that diverse
workforce has low morale, and therefore, low productivity. This isn't solely
a company culture and productivity issue, either. Diversity is a serious legal
liability if employees or customers are feeling harassed in some way.
• Human resource managers must understand diversity laws, and must
ensure that the company has the protocol to deal appropriately with
complaints, and also to focus on harmonizing the diversity. This is done
with training and workshops that build cohesiveness and embrace the
differences in each other.

17. Practices in HRM:
• 1.Providing security to employees
• 2.Selective hiring: Hiring the right people
• 3.Self-managed and effective teams
• 4.Fair and performance-based compensation/li
• 5.Training in relevant skills
• 6.Creating a flat and egalitarian organization
• 7.Making information easily accessible to those who need it

18. The changing concept of HRM in
India and in Globe
• Changing Role of Human Resource in India
• The role of HR has evolved from a compliance checking body to a
strategic partner to the organization. Thei role is not limited to meet the
changing the market demands, attract high performing talent, evaluating
performance, retaining top talent and ensuring that employees are
motivated adnd engaged.
• They are the change agents, counselors, motivators, trainers and the
spokeman of the employees.

19. • HRM Challenges in India
• Upgrading Skill Set
• Changing Business
• Managing Technology
• Developing Accountability
• Managing Workforce Stress and Employment Relations
• Managing Inter-functional Conflict
• Managing Workplace Diversity
The changing concept of HRM in
India and in Globe

20. HRM challenges in Globe:
• Trends in the nature of work : technological and globalization are producing change in the nature
of jobs. Following are a few trends:
• Increase use of part-time employees
• IT and computers have allowed organizations to relocate work to
locations with lower wages
• A Service Society :
• A shift from manufacturing jobs to service jobs.
• new types of knowledge workers and new HRM methods to manage them
• Knowledge Work and Human Capital :
• Growing emphasis on human capital, their training and development
• Companies are relying more on employees creativity and skills.
• Other Trends affecting HRM :
• Equal employment opportunities that bar discrimination based on any race, age,
sex etc.
• Mandated health benefits, occupational safety and health requirements
• Union-management relations

21. Assignment:
Q1. Assess how human resource management functions help
your chosen organisation in achieving its functions.
Select any organization as example and explain?
Q2. “People are organization's most valuable asset.” Comment

22. Thanks