HRM

UNIT I
INTRODUCTION OF HRM
 INTRODUCTION

• ‘EMPLOYEES ARE THE MOST IMPORTANT ASSET OF THE

ORGANIZATION’
• The quality and effectiveness of the organization is determined
by the quality of the people that are employed.
• Success for most organizations depends on finding the
employees with the skills to successfully perform the tasks
required to attain the company’s strategic goals.
• HRM is the process of bringing people and organization together
so that the goals of each are met.
• “Human Resource Management may be defined as the art of
procuring, developing and maintaining competent workforce to
achieve the goal of organization in an effective and efficient
manner.”

• Human Resource Management includes all activities used to

attract & retain employees and to ensure they perform at a high
level in meeting organizational goals.
 NATURE OF HUMAN RESOURCE
MANAGEMENT
• Pervasive Force – HRM is pervasive in nature. It is present in all enterprises
and at all levels of management.
• Action Oriented – HRM focuses attention on action rather than an record
keeping , written procedures or rules. The problems of employees are solved
through rational policies.
• Individually Oriented – It tries to develop the employee’s potential. It
motivates the people trough a systematic process of recruitment, selection,
training and development & faire wage policy.
• People Oriented – HRM deals with people at individual and group level. It tries
to put the people an assigned job in order to produce good results.
• Development Oriented – Develop the full potentials of employees. Training is
offered to sharpen and improve their skills. Employees are rotated on various
jobs so that they gain experience & exposure.
• Integrating Mechanism – HRM tries to build and maintain cordial relations
between people working at various levels in the organization.
• Auxiliary Function – HR department exist to assist and advice the line or
operating managers to do their personnel work more effectively. An HR
manager is the specilise advisor i.e it is a staff function.
• Inter- Disciplinary Function – HRM is a multi- disciplinary activity, utilizing
knowledge and inputs drawn from psychology, sociology, anthropology,
economics etc.
• Continuous Function – HRM is not a one short deal. It cannot be practiced
only one hour each day or one day a week. It requires constant alertness and
awareness of human relation and their importance in every day operations.
OBJECTIVES
OF HRM
 • It is concerned with the optimum utilization of
the human resources within and organization.
• It is concerned with the creation of conditions
in which each employee is encouraged to
make his best possible contribution to the
effective working of the undertaking.
• It is also concerned with the development of
PERSONAL
OBJECTIVES the sense of mutual respect and trust between
management and workers through sound
relations.
• It endeavors to increase the productive
efficiency to the workers through training,
guidance and counseling and
• It tries to raise the morale of the employee.
 • Functional objectives of Human Resource
Management (HRM) are the specific goals
and tasks that HRM aims to achieve to
manage an organization's workforce. Such
functions are:

FUNCTIONAL • Recruitment & Selection

OBJECTIVES • Training & development
• Performance Appraisal
• Compensation
• Employee relations
 • To recognize the role of HRM in bringing
about organizational effectiveness.
• HRM is not an end itself. It is only a
ORGANIZATIONA means to assist the organization with
L OBJECTIVES its primary objectives.
• Simply stated, the department exist to
serve the rest of the organization.
 • To be ethically and socially responsible to the
needs and challenges of the society while
minimizing the negative impact of such
demands upon the organization.
• The failure of organizations to use their
SOCIETAL
resources for the society’s benefit in ethical
OBJECTIVES
way may lead to restrictions.
• For example, the society may limit HR
decisions through laws that enforce
reservation in hiring and laws that address
discrimination, safety or other such areas of
social concern.
FUNCTION
S OF HRM
 IMPORTANCE OF HRM
• At Enterprise level:
•Good human resource practices can help in attracting and
retaining the best people in organization.
•It help in training people for challenging roles, developing right
attitudes towards the job and the company, promoting team
spirit among employees and developing loyalty and
commitment through appropriate reward schemes.
•HRM effectively secures the willing cooperation of employees
through motivation, grievance handling and so on.
• At the individual level-
It promotes team work and team spirit among employees.
It offers excellent growth opportunities to people who have the
potential to rise.
Creating right attitudes among the employees through effective
motivation.

• At the society Level-

Maintaining a balance between the jobs available and job seekers
according to the qualification and needs.
Providing suitable and most productive employment
• At the National Level-

Effective use of human resources helps in exploitation

of natural , physical and financial resources in a better
way.
People with right skills, proper attitudes and
appropriate values help the nation to get ahead and
compete with the best leading to better standard of
living.
 ROLE OF HR MANAGER
• Design Workplace Policies
• Monitor Performance
• Maintaining Work Culture
• Resolve Conflict
• Ensure Health and Safety of Employee
• Rewards and Incentives
• Human Resource Planning & Job Analysis and Design
• Hiring Candidates
• Training and Development:
 BASIS FOR COMPARISON HRM HRD
Meaning Human Resource Human Resource
Management refers to the Development means a
application of principles of continuous development
management to manage the function that intends to
people working in the improve the performance of
organization. people working in the
organization.

What is it? Management function. Subset of Human Resource

Management.
Function Reactive Proactive
Objective To improve the performance To develop the skills,
of the employees. knowledge and competency
of employees.
Process Routine Ongoing
Dependency Independent It is a subsystem.
Concerned with People only Development of the entire
organization.
 CHALLENGES OF HRM
• Globalization
• Workforce Diversity
• Compliance With Employment Laws
• Engaging Employees
• Retaining the Best Talent
• Maintaining Workers’ Health and Safety at Workplace
• Organizational Data and Integrity Management
• Technology
• Work life balance
• Ethics and Social Responsibility
• Matching People and Organizations
• Organizational Restructuring and Downsizing
• Globalization: Growing internationalization of business has its impact on
HRM in terms of problems of competitions, attitudes, management styles, work
ethics, unfamiliar laws, languages, practices etc. HR managers have a
challenge to deal with more heterogeneous function.
• Workforce Diversity: Workforce diversity include age, ethnicity, ancestry,
gender, physical abilities/qualities, race, gender orientation, educational
background, geographic location, income, marital status, military experience,
religious beliefs, parental status, and work experience. HR policies must
promote inclusivity and harness the benefits of a diverse workforce, such as
enhanced creativity and broader skills, while also addressing potential conflicts.
• Compliance With Employment Laws: Employment laws keep changing,
and it is upto the HR professionals to stay abreast with the latest laws to avoid
audits and lawsuits that could affect your business performance. Employment
laws are regulations that assist in effective hiring, employee management, and
workplace safety.
• Engaging Employees: Besides talent acquisition challenges, HR departments
struggle to keep their workforce engaged and maximize productivity. Consider
having frequent meetings and let them know about recent developments. Regular
feedback is also essential to identify areas that need extra attention.
• Retaining the Best Talent: HRM faces a serious challenge in retaining employees.
Employee development initiatives, in particular, can help the organization enhance
employee engagement while also earning their trust, loyalty, and retention. To
maintain the best talent, you should also create a conducive work environment,
provide room for career development, and motivate them to perform better.
• Maintaining Workers’ Health and Safety at Workplace: According to a study, healthy
employees are 67% more likely to be engaged at work. This demonstrates that
having a healthy staff is advantageous to corporate growth and management.
However, maintaining a healthy workforce can bring a lot of challenges for HRM. To
meet this challenge of HRM, counseling should be provided, along with flexibility in
deadlines, and develop family-friendly work policies. These initiatives can enhance
employee well-being, which will foster the organization's growth.
• Organizational Data and Integrity Management : Businesses are becoming
more digitized, using electronic devices to manage various tasks. However,
while they enjoy the benefits of the advancing technology, their data are at risk
of leaking into the wrong hands. These challenges for HR people make HR
professionals struggle to secure their companies’ data and maintain their
integrity. Therefore, you need to ensure the data security department is on its
toes to secure data. Also, consider communicating with your employees about
data security best practices such as the use of passwords, phishing emails,
desktop rules, etc.

• Technology Development: One of the recurrent challenges of HRM is

employee re-training and development. The process of continuous training can
be exhaustive and expensive for organizations. In this regard, organizations
can adopt e-learning solutions and online certification programs for employees,
enabling them to learn new technologies most effectively while also being cost-
effective.
• Work life balance: The rise of dual-career families and changing social
roles bring challenges in balancing work and family life. HR policies
need to support flexible working conditions to attract and retain talent.
• Ethics and Social Responsibility: HR must uphold ethical standards
and promote social responsibility within the organization to foster a
positive public image and ensure legal compliance.
• Matching People and Organizations: Ensuring that the workforce
aligns with the organization's culture and goals is vital for mutual
success. HR practices should focus on hiring and retaining individuals
who fit well with the organization’s ethos.
• Organizational Restructuring and Downsizing: HR must manage
the processes of restructuring and downsizing sensitively and efficiently
to minimize negative impacts on employee morale and productivity.