Human resource management

Introduction

Human resource management is relatively a new term, emerged during 1970's. Many people
continue to use, traditional titles like personal management or personal administration to this
new discipline. At present the term is used in industry circles as HRM. It is relatively a
modern concept, which involves a range of ideas and practices, in managing people.

Meaning And Definition:

According to Edwin B Flippo, personnel management/ human resource management is "
planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance, and reproduction of human resources, to the end that
individual, organisational; and societal objectives are established."
Features of Human Resources Management
1. Management Function:- Human resource management is an essential component of general
management. Therefore HRM also involves the application of management functions and
principles.
2. Comprehensive Function:- HRM is a comprehensive function because it is related with
managing people at work.
3. Individual Consideration:- Every employee is considered as an individual. Programmes
and policies are designed with a view to facilitate employee satisfaction and growth.
4. Action Oriented:- Human resource management is action oriented. All the activities are
undertaken to solve personnel problem to achieve both organisational and personal
objectives.
5. Continuous Function:- Human resource management is a continuous function. It is a never
ending process. This function takes place in the business continuously from its
commencement to closure. There is no holiday for human resource management.
Scope of HRM
1. Human resource planning:

It is concerned with the determination of the number and type of employees required in an
organisation. Right person should be appointed at right job at right time

2. Job Analysis

Job analysis is a detailed and systematic study of jobs. It is related with deciding the contents
of the job in terms of its duties and responsibilities.

3. Recruitment and Selection

Recruitment is a systematic process of searching the required qualified personnel and

stimulates them to apply for jobs in the establishment. Suitable employees are selected among
the qualified applicants. Selection is the process of choosing the most suitable persons out of
all applicants.

4. Orientation and Placement

Orientation is given to newly selected employees in order to provide variety of information

relating to organisation such as its rules and regulations, his subordinates and superiors.
5. Training and Development
Proper training should be given to employees to acquire new knowledge and skills. Many
training and development programmes are designed by the company in order to make the
employees more capable and fit in performing their work.

6. Performance Appraisal and Job Evaluation

Performance appraisal is the process of assessing the performance and progress of an

employee or of a group of employees on a given job. It also measures their potential for
development. In job evaluation, the relative worth of the job is determined.

7. Employee and Executive Remuneration

It is the responsibility of the every human resource manager to design and implement a
suitable wage and salary structure for the benefit of the employees.

Personnel Management (PM) and Human Resources Management (HRM)

BASIS FOR HUMAN RESOURCE

PERSONNEL MANAGEMENT
COMPARISON MANAGEMENT
Meaning The aspect of management that is The branch of management that focuses
concerned with the work force and on the most effective use of the
their relationship with the entity is manpower of an entity, to achieve the
known as Personnel Management. organizational goals is known as
Human Resource Management.
Approach Traditional Modern
Treatment of Machines or Tools Asset
manpower
Type of function Routine function Strategic function
Basis of Pay Job Evaluation Performance Evaluation
Communication Indirect Direct
Labor Collective Bargaining Contracts Individual Contracts
Management
Decision Making Slow Fast

Approaches to HRM
System Approach to HRM:
By adopting a system approach to HRM, organizations can create a cohesive and effective
HR strategy that supports business objectives.
The systems approach to Human Resource Management (HRM) views an organization as a
complex, interconnected system where the HR function is a critical subsystem. This approach
emphasizes the importance of understanding how different HR activities and the organization
as a whole interact and influence each other.
1. Inputs: Recruitment, selection, training, development
2. Processes: Performance management, compensation, employee relations
3. Outputs: Employee productivity, job satisfaction, retention
4. Feedback: Evaluation and improvement of HR processes
Key Components:
1. HR Planning: Forecasting HR needs and developing strategies
2. Recruitment and Selection: Attracting and hiring talent
3. Training and Development: Enhancing employee skills and knowledge
4. Performance Management: Evaluating and improving employee performance
Strategic Approach:
1. Align HR with Business Goals: Integrate HR strategies with organizational objectives.
2. Focus on Long-term: Plan for future HR needs and develop strategies to meet them.
3. Proactive Approach: Anticipate and respond to changes in the business environment.
4. Employee Development: Invest in employee growth and development to enhance
performance.
Functions of HRM
Managerial Functions:
1. Planning: Determining HR needs and strategies.
Planning of human resource specifically include the following.

a. Determination of human resource needs.

b. Deciding the source of procurement of human resources.

c. Determination of training needs of personnel.

d. Selecting appropriate motivation techniques for inducing the personnel to contribute

maximum to accomplish desired result

2. Organizing: Designing and structuring HR functions.

Assignment of duties
Fixing the responsibilities
3. Directing: Guiding and motivating HR staff to achieve the organisational objectives
effectively.
Direction includes supervision, motivation,leadership, and communication.
4. Co-ordination

The entire activities of the organisation are to be properly coordinated to achieve

organisational goals. Co-ordination should be done at all levels of an organisation. HRM
department co-ordinates the task of developing, interpreting and reviewing personal
programmes and policies related to employees.

5. Controlling

Controlling is a process which verifies whether everything occurs in the organisation

according to plans. If variations are found, corrective measures are taken immediately. The
personnel manager evaluates the performance of personnel and formulates future plan,
policies and programmes.
Operative Functions:
1. Procurement: simply means hiring of employees.

Right person should be appointed at the right place; at the right time.

2. Training and Development

The development function is concerned with the development of employees by increasing

their skills and proficiency in work. Proper training should be given to employees for
increasing their skills and abilities.
3. Compensation
The personnel management / HRM must determine the remuneration of workers in the
organisation. The employees must get adequate and equitable remuneration for the work
done.

4. Integration

The human resource/ personnel manager should reconcile the interest of workers with that of
the organisation. A sense of belonging is to be created among employees. They are to be
properly motivated. They should think that whatever may be done for organisation, it is for
them also. This will bring about harmony of interest among the employees and employer.

5. Maintenance

Superior environmental condition must exist in the organisation. Employees feel happy to
work only under such conditions. The personnel manager has to look after the health of the
workers at work and off work. They should be provided with sanitation, safety measures,
canteen, recreation room etc. A pleasant work environment will increase the motivation and
morale of employees.

6. Welfare Activities

The personnel management should provide various welfare services which relate to the
physical and social well-being of the employees. It includes

1. Provision of medical facilities

2. Provide restaurants and other recreation facilities.

3. Provision of cafeteria, rest room, counselling, group insurance, etc.,

7. Personnel Records

Personnel department should maintain personnel record of employees.

Role, Power and Responsibilities of a Human resource Manager
1. As a specialist :- HR/personnel manager is an expert in personnel matters. He advises and
counsels management with regard to personnel policies, principles and methods.
2. As an information source:- Personnel manager possess knowledge about labour laws,
government policy on labour & economy, etc. He can provide this information while
preparing personnel policies and procedures.
3. Personnel record keeper:- He maintains the personnel records of employees such as bio-
data, date of joining, date of increment, promotion, transfer etc.
4. Acts as an innovator: He acts as an innovator in relation with personnel matters.
5. As a controller:- He helps other departmental heads for effective implementation of
Personnel policies, procedures and practice. He monitors the progress of implementation.
6. As a liaison officer:- He acts as a connection link between different departments.
7. As a guardian:- The personnel manager looks after the safety, health, welfare, social
security etc. of employees.
8. As a trouble shooter:- When there is conflict between management and labour union, he
acts as a shock absorber. He has the power to act as a mediator to settle disputes.
Powers and Responsibilities of a Human Resource Manager
1. Formulation and development of personnel policies
A personnel policy provides guidelines for a wide variety of personnel function such as
recruitment, selection, training, compensation, promotion, trade union relation, and public
relation. A personnel manager has the power and responsibility for the formulation and
development of suitable personnel policies..
2. Employees training and development
. The personnel/ human resource manager has to design appropriate training programs for
employees. He makes arrangements to impart training to employees belong to different
departments.
3. Establishment of good relation with employee
A HR manager is a connecting link between management and employees. He is responsible
to maintain good relation with employees.
4. Transfer, promotion etc
As a responsible officer, he is required to give guidance and advise to top level management
on matters related to transfer, promotion, demotion, termination etc
5. Personnel records
It is the responsibility of the personnel manager to maintain personnel records of each
employee in the organisation.
6. Effective communicator
It is the responsibility of the HR manager to communicate personnel policies and
programmes of the management to employees.
7. Advisor to line manager
He is also responsible for advising line managers with regard to the matters relating to
administration of personnel policies, hiring, training, appraising, and firing employees at all
levels.
8. Comply with laws: He should ensure that the various labour laws are duly complied with.
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