A Study On The Relevance of Human Resource in Today'S Business Environment

“A STUDY ON THE RELEVANCE OF HUMAN
RESOURCE IN TODAY’S BUSINESS ENVIRONMENT”
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

AWARD OF
BACHELOR OF BUSINESS ADMINISTRATION
2016-2019
Submitted to: Submitted by:
Mr. Deepak Kaushal, Sarthak Katiyar,
Department of Management Studies, BBA 6th Semester (HR),
Graphic Era Graphic Era
(Deemed To Be University) (Deemed To Be University)

DECLARATION
I hereby declare that the project entitled “A Study On The Relevance Of Human
Resource In Today’s Business Environment” submitted in partial fulfilment of the
requirement for the degree of BBA at GRAPHIC ERA (DEEMED TO BE
UNIVERSITY), at Dehradun is my original work and not submitted for award if any
other degree/ diploma or similar title or prize.
DATE: ……. 2019 SARTHAK KATIYAR
PLACE: Dehradun BBA (2016-19)

ACKNOWLEDGEMENT
With immense pleasure I am presenting “A Study On The Relevance Of Human Resource

In Today’s Business Environment” Project report as part of the curriculum of ‘Bachelor of
Business Administration. I wish to thank all the people who gave me unending support.
I express my profound gratitude to Mr. Deepak Kaushal, who guided and helped me in
preparation of this project.
I also like to extend my gratitude to all staff and colleagues, who provided moral support, a
conductive work environment and the much-needed inspiration to conclude the project in
time.
Thanking you.
Sarthak Katiyar.
Chapter 1
Introduction
1.1 Introduction
It is rather difficult to say spontaneously what management means, through we are studied a
course in management. But it is necessary to recall what management is before studying
Human Resource Management (HRM). Management has been defined by Mary Follett as,
“The art of getting things done through people.” But it is felt that management is much
more then what is said in this definition. Management id further defined as, “…. That field
of human behavior in which in which managers plan, organize, staff, direct and control
human, physical and financial resources in an organized effort, in order to achieve desired
individual and group objectives with optimum efficiency and effectiveness.” It is clear from
the definition that management is concerned with the accomplishment of objectives by
utilizing physical and financial resources through the efforts of human resources. Thus,
human resource is a crucial sub-system in the process of management. The term human
resource is quite popular in India with the institution of ‘Ministry of Human Resources
Development’ in the union cabinet. But most people may not know what exactly the term
human resource means.
Human Resource Management is the process of managing the people of an organization with
a human approach. It also includes Human Resource planning, development, career planning,
succession planning, maintaining a high quality work life taking care of the welfare of the
people who work forte organization, counseling, guiding, motivating, actuating,
compensation, rewarding, evaluating, integrating, information storing and finally separating
in addition to recruitment, training, placement, induction, etc; Thus, human resource
management is the system that focuses on human resources development, on the hand, and
effective management of people on the other, so that people will enjoy human dignity in their
employment.
One of the earlier views of HRM put forward by Scheain was HRPD (Human
Resources Planning and Development). According to him, HRPD should match
organizational need for human resources and individual needs for a career and growth. His
HRDP included human resource planning, recruitment, selection, performance appraisal,
educating, job enrichment, counseling, and other functions. Training and development,
feedback, organization development ,research and developmental activities has been
additionally included in the HRD system by writers like Udai Pareek and T.V. Rao, In fathom
must be capable to accommodate all such aspects. Human Resource Management is involved
in providing human dignity to the employees taking into account their capabilities, potential,
talent, achievement, motivation, skill, commitment, creative abilities and so on, so that their
personalities are reckoned as valuable human beings. Thus, HRM is involved in every
business, managerial activity, or function. We can remark here: if actuating implies getting
things done by people, which is the
primary managerial job, management is primarily human resource management.
In this context, Human Resource Management is the process of managing human beings as
the most important resource of an organization. A stress on the human performance. In the
contrary, individual human beings are enabled to enjoy dignity of being associated with
their organization’s since they are treated as the most valuable assets and resources leading
to humanization of the work environment, it implies that human resource management
approach provides as superior quality of work life which gives a sense of belonging and a
higher job satisfaction to an organization’s own people. Thus, Human Resource Management
is totally a novel approach to an organization’s own people at work on the one hand to the
organization’s own business on the other.
Human Resource Management can be define as that part of management process which
develops, and manages the human elements of enterprise considering the resourcefulness of
the organization’s own people in terms of e knowledge, skills, creative abilities, talents,
aptitudes and potentialities for effective actuating. Every individual is the part of the resource
of an organization, while he or she is a valuable soul. By mismanaging the human resources,
a manager kills, not only the invaluable resourcefulness of his people, but the most important
souls. Hence, every human resource management strategy must be guided by the golden rule,
“give love and get love.”
From this discussion, it is to be emphasized that HRM is not a dignified term of personnel
management, through personnel management is enmeshed harmoniously in it. While HRM
is closely linked with HRD, counseling is indispensable for effective human resources
development. As we already observed, HRM is at the center of actuating.
1.2. Human Resources: The Concept
Human Resource Management (HRM) is concerned with the human beings in an

organization. It reflected a new philosophy, a new outlook, approach, ad strategy, which
views an organization’s manpower as its resources and assets, and not as liabilities or mere
hands.
Resources are the means which can be drawn on. They are collective means for production,
support and defence, as well as a source of strength and aid. Human resources are wealth or
means that can be drawn on. Human capital and manpower of the company can be treated as
its human resources. It can otherwise be understood as the resourcefulness of the human
resources. It can otherwise be understood as the resourcefulness of the human beings or
people available for an organization.
In generic terms, human resources can be define as the total knowledge, skills, creative
abilities, talent and aptitudes of an organization’s workforce, as well as the values, attitudes,
approaches and beliefs of the individuals involved in the affairs of the organization. It is the
sum total or aggregate of inherent abilities, acquired knowledge’s and skills represented by
the talents and aptitudes of the employed persons in an organization.
Human resources approaches takes into consideration the potentiality and vitality of the
people available for the organization. Even in the age of the automation as of today,
manpower is the most essential and indispensable resources of any organization.
Resourcefulness of various categories of people says: managers, scientific and research
people, executives, supervisors, workers (skilled, unskilled) and all such people available for
the organization to be drawn on, can be treated as human resources. In fact, without
appreciate human resources, no business or organization can exit and grow. This is the
perhaps, the reason why human resources management has become the focus of attention of
progressive organization of today.
1.3. Definitions or Meaning of Human Resource Management
(HRM)
Different terms are used to denote human resource management. They are: labour
management, labour administration, labour management relationship, employee -employer
relations, industrial relations, personnel administration, personnel management, human
capital management, human asst management, human resource management and the like.
In simple sense, human resource management means employing people, developing their
resources, utilizing, maintaining and compensating their services in tune with the job and
organizational requirement.
Wendell French describes Human Resource Management as “The philosophy, policies,
procedures and practices related to the management of people within the
organization.”
According to Decenzo and Robbins, “Human Resource Management is concerned with

the ‘people’ dimensions in management. It is the process of the acquisition
development, motivation and maintenance if human resources.”
Human Resource Management (personnel management) as defined by the Institute of Human

Resource Management (personnel management) in U.K. and subsequently adopted by
Indian Institute of Human Resource Management (Personnel management) is as follows:
“Human Resource Management (personnel management) is responsibility of all those

who manage people as well as being a description of the work of those who are employed
as specialists. It is that part of management which is concerned with people at work and
with their relationship within an enterprise. It applies not only to industry and
commerce nut to all fields of employment.”
Michael J. Jucius defined Human Resource Management (personnel management) as,

“The field of management which has to so with planning, organizing, directing
and controlling the functions of
procuring, developing, maintaining and utilizing a labour force, such that the -----
(a) Objective for which the company is established is attained economically and
effectively, (b) Objectives of all levels of Human (personnel) are served to the highest
possible degree, (c) Objectives of society are duly considered and served.”
1.4. Functions of Human Resource Management (HRM)
Human Resource Management involves a large number of functions or activities. The

number varies according to the size and need of the organization internally. The major
functions of Human Resource Management are:-
1. Human Resource Planning:-
Human Resource Planning is the process of assessing the organization’s human resource need
in the luminosity of organizational aspiration and changing state of affairs and making plans
to ensure that a proficient motivated work force is employed.
Human Resource Planning is very important in these modern epochs where everything is
fluid and changes are stirring at enormous speed.
2. Organizational and Job Design:-
A important activity of Human Resource Management developing an organization which

caters for all the activities required, groups them together
in a way which encourages integration, co-operation and provides for effective
communication and design making.
3. Staffing:-
Staffing or acquisition of Human Resources is an additional bustle of Human Resource

Management. Staffing actions determine the reimbursement of an organization’s Human
Resources.
Staffing activity includes:
Attracting qualified people to the organization; Selecting from in the
midst of candidates; Reassigning employees through transfer;
Promotion or relegation and ultimately managing the employees division through

resignation;
Discharge or retirement.
4. Training and Development:-
This activity of Human Resource Management focuses on improving the performance of

individual and groups within the organization. These activities aim to help employees gain
knowledge of new dexterity and purify existing skills.
Human Resource Managers must decide which skill or knowledge areas require development
and which methods are most effective for serving employees get hold of skills and
knowledge.
5. Performance Appraisal and Review:-
Performance appraisal and review is an ongoing evaluation of individual and group

contributions to the organizations and the communication of the evaluations to the persons
involved.
The Human Resource Managements function is carried out for a number
of purposes:-
⎫ To provide feedback about performance, to determine the need or training;

⎫ To make decisions about promotions, pay increased and so on.
6. Compensation and Reward:-
Organizations reimburse employees through wages and salaries, bonuses and benefits, such
as health insurance, vacation instance and pension programmes. The charisma and dearth
of plunder and appreciation is essential to employee moral and performance. This is looked
subsequent to Human Resource Management.
7. Managing Effective Employee Employer Relationship:-

An important function of Human Resource Management is to promote harmonious
relationship between the management and employees. The aim of Human Resource
Management is to increase in the companies affairs.
The functions of Human Resource Management include addressing employee grievances and
taking suitable steps towards solving them.
8. Health and Safety Management:-
The function of Human Resource Management includes activities and events that serve to
protect organization members from illness and physical dangers in the workplace and to
assist them with their physical and emotional health.
For many organizations, protecting the health and safety of Human Resources is a prime
social responsibility. This Human Resource Management functions serves to preserve the
Human Resources of the organization.
9. Employee Participation:-
This is relatively new unction of Human Resource Management. Employee participation

focuses on giving employees a voice, sharing information with them and consulting them on
matters of mutual interest.
Employee’s participation is an important step in establishing industrial democracy.
10. Organizational improvement:-
Organizations must constantly improve themselves due to the emergence of new ideas
regarding productivity, rapid changing technology and competition from other organizations.
The function of Human Resource Manager is to ensure the flow of event through which
people in the organization improve the organization’s effectiveness. He has to constantly
look out for ways to improve the organization through employee training implementing work
redesign programs and so on.
1.5. RESEARCH DESIGN & METHODOLOGY
This study involved an exploratory research aimed at developing solution for present HRM
problems. It is based as an inter-disciplinary approach whereby techniques available in
various related fields are used to develop solution for present HRM.
It is realized that the concept of human capital exposes a broader view of human investment
at macro level than that of the human assets at the enterprise level. The difference between
the two concepts relates to the views which economists and accountants holds regarding
what comprises human investment at enterprise level. Where as the economic concept of
human capital considers investment in health services, migration (internal mobility of labour)
and acquisition of labour market information as a part of the human investment, these
investment are unjustified excluded from the reckoning of the human assets at the enterprise
level. However, since the
economic concept of human capital is theoretically well entrenched, and has a better
conceptual orientation than the accounting concept of human assets, the distinguish between
these two concepts seems to be rather artificial and totally unwarranted. To bring, therefore,
some consistency into the treatment of these two concepts, it is found crucial to extend the
confines of human investment at enterprise level to include investments in such activities as
health services, internal mobility of labour, and acquisition of market information.
1.5.1. The Universe – The present study has covered all the apex insurance companies
having corporate office in Maharastra State. Below mentioned insurance companies are
financially sound and giving first priority to human resource as compared to its any
other assets in the balance sheet.
1. Life Insurance corporation of India Ltd
2. Max New York Life Insurance
3. State Bank of India.
4. The Thane District Central Bank Ltd.
5. Vijaya Bank.
6. UTI Bank.
7. Indian Bank.
8. Caneara Bank.
9. ICICI Bank.
10.HDFC Bank.
11.Union Bank Of Indian.
12.Bank Of Maharastra
1.5.2 Techniques of Analysis – For this study, the collected data has been processed and
tabulated by way of tables. The tables have been formed to bring out the information on all
aspects of HRA, and the queries and suggestion of administration wing. While analyzing
the data, simple statistical techniques such as percentages, ratio and average were used.
Moreover the data was presented with the help of charts, flow chars & tables. For
evaluating the performance of insurance companies.
1.6 TOOLS USED FOR COLLECTION OF DATA
1.6.1 For the Secondary Data: - The secondary data was gathered from following sources;
A) Published Sources – Books, Periodicals etc.
B) Audited financial Statements of the selected insurance companies. C) Professional
Bodies Circulars.
D) Internet web sides of various research journals.
1.7 SIGNIFICANCE OF THE STUDY
When we are at the threshold of the 21st century, management profession has to be prepared
to meet the challenges of fast changing global environment.
The need for an information system, which will deal with human resources, is seen by many
as one of the most important shortcomings in present managerial information. Its use would
aid decision-making by management and investors. It would provide a better estimate of the
value of the insurance companies and its return on investment and would lead to a more
efficient allocation of resources within the economy.
Keeping in view these considerations, it is possible that human resource management will
represent one of the major innovations in management and control in the times to come.
The need for the value of human resources being shown in the insurance companies balance
sheet has been very nicely brought out in the following poem by Webster: 41
“Though your balance sheet is a model of what balance sheets should be;
Typed and ruled with great precision in a type that all can see; Though the
grouping of the assets is commendable and clear; And the details which are
given more than usually appear;
Though investments have been valued at the sale price of the day; Moreover, the
auditor’s certificate shows everything O.K.;
One asset is omitted, and its worth I want to know; The asset is
the value of the men who run the show.”
1.8 SCOPE AND LIMITATIONS OF THE STUDY

The findings of this study and the conclusions reached are based on analysis of the
information supplied in the questionnaire. As responses have been checked according
to the perception of the person filling the questionnaire, the probability of certain
amount of subjectivity in the response cannot be ruled out.
In preparing the questionnaire related to stock of human resource, labour

turnover, absenteeism, age, qualification, grouping, earnings, own funds, total assets,
HRD expenditure, net sales, profit information, capital employed etc. has been used ,
as it was felt that the other basis would create confusion in the mind of respondents.
As stated earlier, the term human resource reefers to the knowledge, skills, creative abilities’,
talents, aptitude, values and beliefs of an organization’s workforce.
References
1. Peter F. Drucker, management: Tasks, Responsibilities, Practice, William Heinemann

Ltd., London, 1973, p. 308.
2. James A.F. stoner, management, prentice-Hall of India (p) Ltd; New
Delhi, 1984, p.87
3. Quoted in chandan J.S., Fundamentals of modern management, Vikas
Publishing House (p) Ltd; 1986, New Delhi p.1.
4. Megginson, Leon C., Personnel and Human Resources Administration,, Richard

D. Irwin Inc., Homewood, IIIinois, 1977, p.4.
5. Sur Mary (Ed.), personnel Management in India, complied by Indian institute of personnel
management, Asia publishing House 1973, p.
31.
6. R. Wayne Mondy and Robert M. Noe III, personnel; the Management of Human
Resources, Allyn and Bacon Inc., Boston, 1981, p.5.
7. Michal J. Jucius, Personnel Management, Richard D. Irwin Inc., Homewood, IIIinois,
1979, p.5.
8. Lewis Arthur, The History of Economic Growth, George Allen & Urwin Ltd., London,
1965, p.(ii)
9. Leon C. Megginson, Personnel, Richard D. Irwin Inc., Homewood, IIIinois, 1972, p.14.
10.Myrdal Gunnar, Asian Drama, Penguin Book Ltd., Middlesex, 1968.
11.Curle, Adam, some aspects of Educational Planning In Underdeveloped Areas Harvard

Business Review, vol.32, No.3, summer 1962, p. 360.
12.Dale s. Beach, Personnel , Macmillan publishing co. New york, 1985, p.109.
13.Dale S. Beach, op. cit., pp. 36.
Chapter 2
Review of Literature
2.1 History:-
Human Resource Management is about managing people. It is a process of binding people

and organization together so that the objectives of each are achieved. It is the most precious
processions of any organization. It is, therefore essential to take utmost care for the
endurance and enlargement. Liberalization and globalization has augmented the magnitude
of human resources management by manifold.
2.1.2. Ancient Indian Literature:-
There are traces of some sort of human resources approach in the ancient
Indian literature. Valmiki, in his Ramayana (sundarakand sarge 64, slokas
16 and 17), observed that people who carried out difficult and important task must be give
due respect, and no coercion was mandatory for such people to complete fighting fit. It was
implied that good performers obligatory having sovereignty of achievement and admiration.
It is also interesting to note that Thiruvalluvar, a Tamil scholar who lived 2000 years ago,
emphasized the need for careful selection of employees. Employers were instructed to
entrust tasks to the employees’ only after properly testing them. Thiruvalluvar
specifically suggested that full trust must be put on the employees who were found
trustworthy. A good employee is the one, who
performs, not only assigned main task, but also additional complementary tasks according to
Valmiki.
One who performed only the assigned tasks may be considered as average employee, while
one who failed to complete even the assigned task is a bad servant. This can be used as
standards for performance evaluation. Payment of remuneration may be influenced by such
performance evaluation.
In selection and recruitment of employees, Brihaspati has disapproved the appointment of

hostile (vive/Sino), indolent (alasa), and timid (bhiravh) avaricious, too old or too young.
Cruel master ill-treated and punished employees, while kind and humane treatment to the
employees was considered as a virtue by many people.
In Kalidasa’s shakuntalam, kanva muni (sage) advised shakuntala to treat the servants of the
king’s household mercifully. However, an autocratic style of managing people existed during
the rule of pathans and Mughals which did nit last for a very long time. A tradition-bound
feudalistic society, backed by serfdom and bonded labour existed in, medieval India, had less
scope for human resources approach. Good relations existed in the factories during the
Mauryan period. Workers were well regarded and the employer-employee relations were
cordial.
2.2. HRM vis-à-vis HRD
Some writers have used both the terms interchangeably. But these two terms cannot be one
and the same or synonyms. They are used in different context
and they represent different concepts. At the same time HRD is at the center of HRM. HRD
is examined in detail elsewhere in this book.
As a result of the fundamental changes in attitudes, approaches, outlook, philosophy,

perspective and practices emerged I the personnel area in the form of human resources
management (HRM) strategy, it has become necessary for every organization to develop
skill, talent, potentialities, capabilities and attitudes of company’s own people to meet the
emerging challenges. Hence, HRD (human resource development) have been adopted by
many companies. It is now-a-day spreading to many others. HRD strategies are supported
to bring forth necessary changes in skills, capabilities and attitudes of people who are
required to cope with the emerging changes. Thus, HRD has become an integral part of
human resources management.
The new HRD approach, which stresses the need for developing the company’s own people
to suit the update technology, modernization of machinery and equipments and the changing
trends in attitudes and approaches, necessitates to develop individual employee in accordance
with his aspirations and potentialities on the one hand, and the company’s requirement in the
other. This is what the HRD does. Quite often Organization Development (OD) programmes
are effectively integrated with the HRD programmes. Of course, OD programmes are the
programmes which the OD interventionists prescribe for the effectiveness of the
organization. It needs not to be what the individual members of the organizational needs.
Training and development programmes from part of
OD, while training and development are the most decisive aspects of HRD
too.
HRD efforts are now described in terms of the training and educating programmes and the
number of people who are exposed to these programmes. Unless a systematic and
constant monitoring of these programmes, in terms of actual result achieved can be
determined, it may not be possible to understand whether the real purpose is served be these
programmes. At present, therefore, the end result of both HRD and OD are perceived as
synonymous. Of course, no change can be effectively and totally incorporated nor their
results achieved considerably long period. These efforts must go on simultaneously with
the human resources management strategy.
HRM has its various tools like appraisal schemes, feed-back system, Quality Circle and
Organization Development intervention, T-Group training, MBO objective setting,
consensus in decision-making, and so on. All such tools are useful in human resources
development also. At present, however, training programmes seem to determine the HRD
scene. An effective management information system backed by information collecting,
storing and retrieval system and research and analysis must be the basis for every HRD
programme. This would enable the organization to motivate its own people to strive to be
developed in accordance with the organization to motivate its own (existing and expected).
Thus, HRM is the integrated approach to actuating and managing the company’s own people,
while their aspirations and to suit the organizational needs. Both are not synonyms; the
latter is at the center of the former, and both are interdependent and integrated into
one system.
2.3. Evaluation and Development of Human Resource
Management (HRM)
The history of development of Human Resources Management in India is comparatively of

recent origin, But Kautilya had dealt with some of the important aspects of human resources
management in his “Arthasastra”400
B.C. Government in those days adopted the techniques of H.R.M. as suggested be Kautilya.
In its modern sense it had developed only since independence. Though the importance of
labour officers was recognized as early as 1929, the appointment of officer to solve labour
and welfare problems gained momentum only after the enactment of the Factories Act of
1948. Section 49 of the Act required the appointment of Welfare Officers in companies
employing more then 500 workers. At the beginning, Government was concerned
only with limited aspects of labour welfare. The earliest labour legislation in India dealt with
certain aspect of Indian laborers (Regulation of Recruitment, Forwarding and Employment)
sent to various British colonies in 1830. Important phases of evolution of HRM are
presented in Exhibit 1.1
Period Development Outlook Emphasis Status
Status
Clerical
1920s- Beginning Pragmatism Statutory, welfare
1930s- of capitalists paternalism
1940s- Struggling for Technical, Introduction of Administrativ
1960s- recognition Legalistic Techniques e
1970s- Achieving Managerial

Professional, Regulatory, conform-
Ing Imposition
of
1980s- Sophistication Legalistic, Standards on
promising impersonal other functions
1990s- Philosophical Executive

Human values, produ ctivity
through people
2.4.Scope Of Human Resource Management (HRM)
Human Resource Management (HRM) approach improves the organizational efficiency,

work culture, job satisfaction of people, better understanding and human relationships
resulting in the cordial industrial relations and better productivity. While the management
incorporates human resources policy backed by great human values, understanding, concern
for the welfare of their people, and constant efforts of human development there is possibility
for the organization’s people to reciprocate with better behavior, self co-ordination,
sincerity, achievement motivation and greater cooperation. To be precise, HRM has great
scope to improve organizational climate and efficiency. The vast scope of HRM in the
context of a business organization can be summed up as follows:
A cordial worker manager relationship would be possible;
Management would be able to understand their people better;
A situation would be created in the organization for the employees to enjoy their work and
gain substantial job satisfaction;
Management would be able to get better coordination from its workers / employees.
Employees would be able to gain a sense of accomplishment through their work;
Organizational efficiency and workers’ productivity would increase;
It would help the employee to gain a scene of belonging to their work place;
Better organizational climate and culture may emerge as a result of good HRM;
As the people would be able to foster a scene of belonging, their sense of fulfillment and
accomplishment would remain high;
Management gets enlightened workforce;
A good communication channel would become possible as a result of mutual understanding

and better coordination;
Influence level of management and manager would increase;
Gulf between management and workers can be reduced;
A good HRM policy would improve the possibility for industrial peace, which is badly
needed in India now-a- days; and
It would become easier for the management to identify and train appropriate talents for every
job.
In fact, a well planned human resource management process id the need of the hour. It helps
in efficiently managing business. The scope of HRM is therefore, extensive to the extent that
there cannot be a study of management without proper attention on human resources
management; through it has its own limitations also.
2.5. ROLE OF Human Resource Management (HRM)
The Human Resource Department has staff relationship with other departments /managers in
the total organization. The Human Resource Department is responsible for advising
management from Managing Directors to the lowest line supervisor on all areas relating to
the personnel management and Industrial relations. Human Resource Department performs
various functions of employment, training and development. It represent management in
many of the relationships that affect the organization as a whole It also conscientious for
representing various workers problem to management.
Human Resource Department generally acts I an advisory capacity; it provides information,

offers suggestions and is not responsible for the end results. The Human Resource Manager
must exercise control very tactfully in order to win the confidence and co-operation of all
line managers. He has to persuade the line managers to work with staff specialist and not
against them. The Authority of Human Resource Manager should derive from concrete
personnel policy and programmes and from the advantage and result of accepted
specialized knowledge.
2.5.1. As a Source of Help:-

In certain situations (when line managers lack skill or knowledge in dealing with employee
problems) experienced Human Resource Managers assume line responsibility for personnel
matters. But it may be resented by the very managers who ought to seek staff assistance
in meeting their personnel responsibilities. Human Resources Managers should earn the
reputation and confidence of line managers of being a source of help rather than a source of
threat to line managers. Staff assistance is likely to be effective when it is wanted rather than
imposed.
2.5.2. As a Change Agent:-
Human Resource Manager should work as an enable and change agent regarding personnel
areas and he should be a familiar with different disciplines like management, technology,
sociology, psychological and organizational behavior as organizational adaptability, viability
and development are dependent on Human Resource Development. So the Human
Resource Manager should work as a consultant of an organizational development by
providing necessary information and infrastructure to the line manager. Thus, the role of
Human Resource manager is more concerned with providing information and offering advice
to the decision makers rather then making decisions.
2.5.3. As a Controller:-
Nevertheless it is still true that effective personnel executives’ advices on policies help
managers in implementing their programmes and provide service and exercise the monitoring
and control function sparingly.
2.5.4. Responsibilities within Human Resource Department:-
As other managers the Human Resource Manager is also a line manager in relation to
subordinates within the Human Resource Department. Human Resource Manager is
responsible for the success or failure of his department in contributing to the organizational
goals. In most of the organizations the Human Resource Manager is responsible for
supervising the activities of his subordinates, like employment manager, wage and salary
manager, manager for training ad development, manager industrial relations etc; He is also
responsible for the operations of Human Resource Manager at divisional and branch levels.
As the chief of the Human Resource Department the ‘human Resource Manager has to get
effective result with the co-operation of a;; the employees working in the department and
showing the viability of the concept of the team work. The success of the Human Resource
Department should be measured in terms of its contribution to the personnel
programmes.
2.6. Task of Human Resource Management:-

2.6.1.Job Design:-
Job design is define as the process of deciding on the content of a job in terms of its duties
and responsibilities; on the methods to be used in carrying out the job, in terms of the
techniques, systems and procedures and on the relationships that should exist between the
job holder and his superiors, subordinates and colleagues.”1 Two important goals of job
design are:
I) To meet the organizational requirements such as higher productivity, operational

efficiency, quality of product/service etc. and
II) To satisfy the need if the individual employees like interests, challenge, achievement
or accomplishment, etc. Finally the goal of the job design is to integrate the need of the
individual with the organizational requirements.
CHAPTER - 4
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them.
Research methodology has many dimensions and research methods do constitute a part of
the research methodology. The scope of research methodo
logy is wider than that of research methods. Thus, when we talk of research methodology we
not only talk of the research methods but also consider the logic behind the methods we use
in the context of our research study and explain why we are using a particular method or
technique and why we are not using others so that research results are capable of being
evaluated either by the researcher himself or by others. Why a research study has been
undertaken, how the research problem has been defined, in what way and why the hypothesis
has been formulated, what data have been collected and what particular method has been
adopted, why particular technique of analyzing data has been used and a host of similar other
questions are usually answered when we talk of research methodology concerning a research
problem or study.
4.1. Topic of Study
This study focuses on the effectiveness of training and development processes in Sriv
irad Systems and Services Pvt ltd. Training is the process of increasing the knowledge and
skills of the employee. A better knowledge about these things can facilitate the trainer as
well as the trainee in conducting and benefiting from the training. But training being a very
complex process makes it a bit difficult. So the best way to achieve it is by studying and
analyzing the feedback of employees as well as managers. The project includes collecting
information from staffs of Srivirad Systems and services, analyzing it, interpreting it, and
making observation and providing useful suggestions from it.
This study helps to know the impact of training process on employees in the
organization. And also it enables
to know the attitude of employees towards training, satisfaction of employees, efficiency of
training programs and trainers, and impact of training on the productivity of the organization.
This study provides the management with information regarding the effectiveness of their
training process and the satisfaction level of their employees with which they can understand
the areas of strengths and weaknesses of their training program and their by take necessary
managerial decisions.
The study mainly deals with the efficiency of training processes which has to b
increased. The objective, relevancy of training, methods, materials, environment and time
duration of training, personal sati
sfaction of employees all affect the effectiveness of training. The study tries to cover as many
areas as possible in order to come with the best and accurate conclusions. The feedbacks of
the participants and trainers of training process have contributed a lot to achieve this.
4.2. Sources of Data
Data refers to information or facts however it also includes descriptive facts, non
numerical information, qualitative and quantitative information
Data could be broadly classified as
Primary data
Secondary data
4.2.1. Primary data
Primary data is the data collected for the first time through field survey. It is collected with
a set of objectives to assess the current status of any variable stu
died. Primary data reveals the cross-section picture of the object under scruting. Therefore
primary data are those collected by the investigator (or researcher) himself for the first time
and thus they are original in character.
Advantages of primary data
They are the first hand information.
The data collected are

reliable as they are colle
cted by te researcher for hims
elf.
The primary data are useful for knowing opinion, qualities and attitudes of
respondents.
4.2.2. Secondary data
Secondary data refers to the information or facts already collected. It is collected with
objective of understanding the part status of any variable or the data collected and reported
by some source is accessed and used for the objective of a study. Normally in
research, the scholars collect published data analyze it in order to explain the
relationship between variables.
Advantages of secondary data
The information can be collected by incurring least cost.
The time required for obtaining the information is very less.
Most of the secondary data are those published by big institutions. So they
contain large quantity of information
4.2.1 Sources of information
Primary data
i. Questionnaire or schedule ii.
Observation
iii. Feedback
form iv. Interview
v. Projective techniques vi.
Content analysis
vii. Consumer panels
Secondary data
i. Book
ii. Periodicals or journals
iii. Research thesis and
dissertations iv. Footnotes

v. Encyclopedias
vi. Statistical data sources vii.
Websites/blogs
4.3. Tools Used for Data Collection
Data collection tools are instruments used to collect information for performance
assessments, self-evaluations, and external evaluations. The data col
lection tools need to be strong enough to support what the evaluations find during research.
The researcher has used the method of interview to collect the information in that
organization and other techniques like observation to collect primary data.
4.3.1. Questionnaire
The questionnaire contains two parts; Part A and Part B. Part A contains personal questions.
The question about name is avoided to get true answers from respondents. The questions
such as marital status, age, gender are asked because they have individual influence on the
study.
Part B contains 20 questions. All questions are provided with options and all of them were
given with checkbox such that the employees can easily record their response.
4.3.2. Observation technique
It is well known that observation is a method of collecting data with sensible organs in
understanding less explained or explained phenomena.
In this method researcher observes some of the data like utilization of resources, level of
performance of workers, idle time given for workers, training frequency etc.
4.4. Research design
A research design is the assignment of conditions for collection and analysis of data in a
manner that aims to combine relevance to the search purpose formidable problem that follow
the fact defining the research is the preparation in this study the researcher has made use of
the descriptive research design this is used to determine some definitive purpose with the
help of structured questionnaire to further primary information to focus on the accurate
description of the variable present in the problem
4.5. Sampling
Sampling is concerned with the selection of a subset of individuals from within a population
to estimate characteristics of the whole population.
Researchers rarely survey the entire population because the cost of a

census is too high. The three main advantages of sampling are that the cost is lower,
data collection is faster, and since the data set is smaller it is possible to ensure homogeneity
and to improve the accuracy and quality of the data. In the study researcher has used
probability sampling.
4.5.2. Sample size
The total number of population [employees] is 50. It would be time consuming as well as
difficult to interview all 50 employees. So he researcher has selected 30% of population for
sampling. The samples were selected using simple random sampling techniques ie every
individual in the total population had equal chances of being selected.
4.6. Selection of Sample Respondents
4.6.1. Simple random sampling
A simple random sample is a subset of individuals (a sample) chosen from a larger set (a
population). Each individual is chosen randomly and entirely by chance, such that each
individual h
as the same probability of being chosen at any stage during the sampling process, and each
subset of k individuals has the same probability of being chosen for the sample as any other
subset of k individuals. This process and technique is known as simple random sampling.
In our study the total population (employees who participated in training ) is 150. Every
employee of the population had equal chances of being selected among which 45 (30%)
employees were chosen to conduct the study.
4.7. Tools Used for Data Analysis
For this research researcher has used some of the tolls like probability, graphical methods,
pie charts, bar diagram etc for doing the data analysis.
DATA ANALYSIS AND INTERPRETATION
1. Management is interested in motivating the employees
SL NUMBER OF
N
O PARTICULA PERCENTAG
R RESPONDENT E
S
1 Strongly Agree 27 54
2 Agree 20 40
3 Neutral 3 6
4 Disagree 0 0
5 Strongly 0 0
Disagree
Total 50 100
INTERPRETATION:
The table shows that 54% of the respondents are strongly agreeing that the management is
interested in motivating the employees.
2. Satisfaction with the present incentives scheme
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Highly satisfied 18 36
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
5 Highly satisfied 0 0
Total 50 100
INTERPRETATION : The table shows that 58% of the respondents are satisfied with the
present incentive scheme of the organization.
3 . Periodical increase in salary.
SL NO NUMBER OF
PARTICULAR
2 Agree 23 46
3 Neutral 3 6
4 Disagree 9 18
5 Strongly Disagree 3 6
Total 50 100
INTERPRETATION
The table shows 46% of employees agree that there is a periodical increase in the salary.
4. Job Security existing in the company
SL NO NUMBER OF
PARTICULAR
2 Agree 18 36
3 Neutral 11 22
4 Disagree 3 6
Total 50 100
INTERPRETATION: The table shows 35% of employees agree with good job security exist
in the company.
5. Good relations with the co-workers.
SL NO NUMBER OF
PARTICULAR
2 Agree 27 54
3 Neutral 8 16
4 Disagree 0 0
Total 50 100
INTERPRETATION The table shows 54% of the respondents agree that they have good
relations with co-worker
6. Effective performance appraisal system.
SL NO NUMBER OF
PARTICULAR
2 Agree 23 46
3 Neutral 8 16
4 Disagree 6 12
Total 50 100
INTERPRETATION
The table shows 46% of the respondents agree to effective performance appraisal system
existing in the company.
7. Performance appraisal activities are helpful to get motivated.
SL NO NUMBER OF
PARTICULAR
2 Agree 23 46
3 Neutral 6 12
4 Disagree 3 3
Total 50 100
INTERPRETATION
The table shows 46% of the respondents agree that the performance appraisal activities are
helpful to get motivated.
8. Support from the co-worker is helpful to get motivated
SL NO NUMBER OF
PARTICULAR
2 Agree 29 46
3 Neutral 0 0
4 Disagree 6 12
Total 50 100
INTERPRETATION
The table shows 58% of the respondents agree that the support from the co-worker is helpful
to get motivated.
9. Effective promotional opportunities in present job
SL NO NUMBER OF
PARTICULAR
2 Agree 26 52
3 Neutral 9 18
4 Disagree 3 6
Total 50 100
INTERPRETATION : The table shows 52% of the respondents agree with effective
promotional opportunities in their present job.
10. The company is eagerness in recognizing and acknowledging employee’s work.
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAG
E
2 Agree 29 58
3 Neutral 3 6
4 Disagree 0 0
Total 50 100
INTERPRETATION
From the study, 58% of employees agreed that the company is eager in recognizing and
acknowledging their work, 36% strongly agreed and only 6% showed neutral response.
11. Career development opportunities are helpful to get motivated
SL NO NUMBER OF
PARTICULAR
2 Agree 26 52
3 Neutral 2 4
4 Disagree 4 8
Total 50 100
INTERPRETATION
The table shows 52% of the respondents agree that the career development opportunities are
helpful to get motivated
FINDINGS
The findings of the study are follows
1. The companies included in this study have a well defined organization structure.
2. There is a harmonious relationship is exist in the organization between employees and
management.
3. The employees are really motivated by the management.
4. The employees are satisfied with the present incentive plan of the company.
5. The study reveals that there is a good relationship exists among employees.
6. Majority of the employees agreed that there job security to their present job.
7. The company is providing good safety measures for ensuring the employees safety.
8. From the study it is clear that most of employees agrees to the fact that performance
appraisal activities and support from the coworkers in helpful to get motivated.
9. The incentives and other benefits will influence the performance of the employees.
Chapter 4
Human Resource Management

Scope
4.1. Human Resource Management
An Overview
Human Resource Management (HRM) is an approach to the management of the people,

based on four fundamental principles. First, human resources are the most important assets
of the organization have and their effective management is the key to its success. Second,
this success is most likely to be achieved, if the personnel policies and procedure of the
enterprise are closely linked with, and make a major contribution to, the achievement of
corporate objectives and strategic plans. Third, the corporate culture and the values,
organizational climate and managerial behavior that emanate from that culture will exert a
major influence in the achievement of excellence. This culture therefore, e managed which
means that organizational values may need to be changed or reinforced, and that continuous
efforts, starting from the top, will require getting them accepted and act upon. Finally, HRM
is concerned with integration-getting all the members of the organization involved and
working together with a sense of common purpose.
HRM is a strategic approach to the acquisition, motivation, development and management of

the organizations human resources. It is the specialized field that attempts to develop
programmes, policies and activities to promote the satisfaction of both individual and
organizational needs, goals and objectives. It is devoted to shaping an appropriate
corporate culture, and introducing programmes which reflect and support the core values of
the enterprise and ensure its success. HRM is proactive rather then reactive, i.e., always
looking forward to what need to be done and then doing it, rather then waiting to be told
what to do about recruiting, paying or training people, or dealing with employee relations
problems as they arise. The techniques for the application of HRM will include many familiar
functions of personnel managers, such as manpower planning, selection, performance
appraisal, salary administration, training and management development. These will be
overlaid by special programmes designed to improve communication systems, involvement,
commitment, and productivity.
Broadly, there are three meanings attached to the concept of HRM. In the first place, persons
working in organizations are regarded as a valuable source, implying that there is a need to
invest time and effort in their development. Secondly they are human resources which mean
that they have their own special characteristics and, therefore, cannot be treated like
material resources. The approach focuses on the need to humanize organizational life and
introduce human values in the organization. And, thirdly, human resources do not merely
focus on employees as individuals,
but also on other social realities, units and process in the organization. These include the role
or the job a person has in the organization, the dyadic unit (consisting of the person and
his superior), the various teams in which people work, inter-team processes, and the entity
of the total organization.
In its essence, HRM is the qualitative improvement of the human being who is considered
the most valuable asset of an organization –the sources, resources, and end-user of all
products and services. HRM is, no doubt, an outgrowth of the older process and approach.
But it is much more than its parent disciplines viz., personnel management and behavioral
science. HRM is also more comprehensive and deep-rooted than training and development.
Its approach is multi-disciplinary from the beginning to the end. It is a scientific process of
continuously enabling the employees to improve their competency and capability to play
their present as well as future expected roles so that the goal of the organization are achieved
more fully and at the same time the needs of the employees are also met to an adequate extent.
HRM is the production model approach to personnel management. The HRM model is
characterized as being employee-oriented with an emphasis on the maximization of
individual skills and motivation through consultation with the workforce so as to produce
high levels of commitment to company strategic management is non-strategic, separate from
the business, reactive, short-term, and constrained by a limited definition of its role as dealing
with mostly unionized and low level employees. The major attention of traditional
personnel function is on personnel administration or management while the major attention
of HRM is on developing people and their
competencies. If personnel management is creative, HRM is preventive. The key
distinguished feature of HRM is it evolving strategic role.
Legge (1989) drew distinction between personnel management and HRM by reviewing the
definition of a variety of writers and she identified three main differences:
a) Personnel management is an activity aimed primarily to non-managers whereas HRM is
less clearly focused but is certainly concerned more with managerial staff;
b) HRM is much more of an integrated line management activity whereas personnel

management seeks to influence line management;
c) HRM emphasis the importance of management of culture whereas personnel

management has always been rather suspicious of organization development and related
unitarist, socio-psychologically-oriented ideas. Practitioners in the field regard HRM as
‘just another set of initials’ or ‘old wine in new bottles’ or ‘old bottles with new labels’
(Armstrong 1987).
HRM essentially emphasizes and incorporates those expectations which are not being
fulfilled through the traditional personnel management. It integrates in meaningful way
the various sub-systems like performance appraisal, potentiality appraisal and development,
career planning, training and development, organization development, research and system
development, rewards, employee welfare and quality of work life, industrial relations and
human resource information. Under the HRM approach, some
basic assumptions about human resources are different from the traditional approach.
The important assumptions of HRM are as follows:
1. The members of an organization are reservoirs of these resources.

2. There is scope for unlimited development of these resources.
3. It is more in the nature of self-development than development thrust from outside. the
employees.
4. The organization also undergoes development with the overall benefits along with the
development of its members.
5. The organization further develops a culture in which utmost emphasis is placed on
harmonious superior-subordinate relations, teamwork, and collaboration among different
groups of individuals, open communication, and above all, integration of the goals of the
organization with the needs of the employees.
6. Top management takes the initiative of HRM, formulates necessary plans and strategies,
and creates an overall climate and support for its implementation.
The management of human resources is more of an art than a science. In practice it is an “art”
full of pitfalls, judgment calls, and learning from past mistakes.
4.2. Some basic Assumptions Underlying Traditional
personnel Function and Human Resources system
Traditional Personnel Function Human Resource System (HRS)
(TPF)
TPF is as independent function. HRS is a sub-system of a larger
system (organization)
There are several sub-functions HRS is an organic whole: All the
under TPF pates are interlinked
The main task of TPF is to respond The main task of HRS is to develop
effectively to the demands (coping enabling capabilities (proacting role)
role)
The major attention of TPF is on The major attention of HRS is on

personnel administration or developing people and their
management. competencies
Personnel system and procedures should HR systems and procedures should be

be designed to achieve designed on the basis of process
maximum efficiency values to reduce human wastage
People in the organization are motivated People are primarily motivated by
mainly be salary and rewards challenges and opportunities for
development and creativity
The primary objective of HRM is to ensure the availability of competent and willing
workforce to an organization. Beyond this, there are other objectives too. Specifically, HRM
objectives are four fold societal, organizational, functional and personal.
INSURANCE BUSINESS IN PRE-NATIONALIZATION ERA
In India, the history of insurance, in its present form, can be traced with the establishment of
a British Firms, Oriental Life Insurance Company in Calcutta in 1818. This was followed by
the formation of Bombay Life Insurance Company in 1823, the Madras Equitable Life
Insurance Company in 1829 and the Oriental Government Security Life Insurance Company
in
1874. The first general insurance limited company was established in 1850. The Indian
Mercantile Insurance Company Limited, which was set-up in Bombay in 1907, was the first
Indian Company to transact all classes of general insurance business. Even though the first
life insurance company was established as early as 1818, there was no exclusive
legislation to govern the activities of insurance companies during the nineteenth century.
The Indian Companies Act passed in 1866 regulated all companies, including insurance
companies.
After the Indian Insurance Companies Act 1938 was passed, there was mushroom growth of
insurance companies in India. In spite of mushrooming
of many insurance companies per capita insurance in India was merely Rs. 8 in 1944 as
against Rs. 2000 and Rs. 600 in US and UK respectively. Even this limited growth is
marked by many malpractices, deficiencies, and frequent liquidations of insurance
companies shaking publics’ confidence and depriving policyholders of their saving and
security. It is reported that in those days insurance and banking was in the control of big
industry houses resulting in interlocking of funds between banks and insurance companies.
These dark deeds of dishonest insurance men helped to intensify the public chauvinism and
invited public demand for nationalization. As a consequence the entire private companies
less than one corporation.
INSURANCE BUSINESS IN POST-NATIONALIZATION ERA
Life Insurance Corporation of India set-up by Government of India in the year 1956
dominated life insurance sector. General insurance sector still was in private hands. It was
mainly confined to small entrepreneurs and ancillary units attached to big industrial plants.
With the growth in the process of industrialization in India, number of companies in the
general insurance sector increased steadily and by 1972 their number had gone to 107. But
many of these companies did not have a strong financial base as they were mainly dependent
upon premiums received units to run their operations. Because of there was in a decade (1962,
1965 and 1971) focus of Central Government shifted from industrial sector to defense
sector. This shift caused economic slowdown, which resulted in fund shortage faced
by
industrial units. All these developments had a bad effect on the end of 1972;
more than 50% were in financially bad shape.
Since 1973, the insurance sector has been totally under the control of government of India
through LIC and GIC and its subsidiaries. As a result, revenue of both of them increased
significantly in the later years.
4.3. Components of Human Resource Management
4.3.1. Human Resource Organization:-
Human Resource Organization is concerned with achieving success by organization designed

and development, motivation, the application of effective leadership, and the process of
getting across the message about what the enterprise is setting out to do and how it purposes
to do it. The fundamental objectives of human resource organization is to ensure that every
aspect of the organization, employment, motivation, and management of people is integrated
with the strategic objectives of the business and contribute to the successful achieve of those
objectives. The human resource organization programme has to take account of cultural
issues so that the desired corporate culture can be developed or reinforced. Moreover,
organizational development programmes and intervention are needed to achieve better
integration, improve teamwork, motivate human resource, develop proper leadership,
facilitate communication system, manage conflict and change, and obtain commitment.
4.3.2. Human Resource Planning;-
Human resource planning sets out to define how many people the organization wants; the
type of people the organization need at present and future, In terms of their expertise; and
how they “fit” the corporate culture. It involves the forecasting of both the supply and demand
for future labour. It provides the base for recruitment programmes and for human
resources development plans.
4.3.3. Human Resource System:-
Human resource systems are the essential programmes needed to recruit, appraise, pay and
look after the health, safety and well-being of the employees in the organization. The key
programmes are:
a. Recruitment management: It is a process of obtaining the required human

resource for an organization.
b. Information Management: It is a method of ensuring that all policies and practices are
to be well articulated and effectively communicated to the workforce.
c. Training Management: It is a system of identification of training needs,
preparation of training strategy, and an appropriate training system.
d. Performance Management: It is techniques of appraising performance systematically
against define criteria, reviewing
progress to data and assuming the potential for advancement. There are three main
appraisal systems such as performance appraisal, potential appraisal, and performance
coaching or counseling.
e. Reward Management: It is a method to ensure that people are rewarded in accordance
with their contribution.
f. Career Management: It is a system f charting special career paths for the individual
employees for advancement in the organization.
g. Health and Safety Management: It is a system of maintaining a healthy and safe system
of work in an organization.
h. Disciplinary Management: It is a system of administrating discipline to foster
positive employee behavior that will promote organizational objectives.
i. Culture Management: It is a system of thinking and behaving shaped by the values,
attitudes, rituals and sanction in an organization.
4.3.4. Human Resource Development:
Lippit (1978) points out that HRD as a system depends on:
¬ The work itself which generates higher degree of responsibility for the employee;
¬ The individual’s personal and professional growth;
¬ The improved quality output as a result of increased responsibility; and

¬ The organization as an open system. Focus on all these aspects is what HRD all about.
Rao (1985) defines HRD as “a process by which the employees of an organization are helped,
I a continuous planned way to:
⎫ Acquire or sharpen capabilities are required to perform various tasks and functions
associated with their present or expected future roles;
⎫ Develop their general enabling capabilities as individuals so that they are able to discover
and exploited their own inner potentials for their own and/ or organizational development
purposes; and
⎫ Develop an organizational culture where superior- subordinate relationship, team-
work, and collaborations among different sub-units ate strong and contribute to the
organizational health, dynamism a and pride of employees;”
HRD is a series of organized activities conducted within a specified time and designed to
produce behavioral change. It is rooted I the belief that human beings have the potential to
do better. It has two main purposes:
i. To provide employees with a greater opportunity to grow and succeed within a
company; and
ii. To strengthen management and professional teams at all organizational levels.
Furthermore, it aims at developing employee capabilities in line with their interests and with
the Pareek (1970) found the following sub-systems necessary for introducing HRD in the
organization:
1. Planning and administration of human resources. This includes four main aspects , viz;
⎫ Manpower planning
⎫ Recruitment
⎫ Promotion
⎫ Career planning
2. The second HRD system is about job and salary administration like performance
appraisal, job analysis, and potential appraisal.
3. The third aspects of HRD is mainly confined to training, performance feedback, counseling
and organizational development.
4. The last system relates to the industrial relations and welfare of workers.
HRD as a function consist of various activities related to training, education and
development, and performance appraisal. All aspects of training and appraisal play a
significant role in achieving the individual’s growth and development. In this respect HRD
is more a proactive and supportive function wherein the organization has to tale a lead in
helping the people to grow and realize their potential role.
Human Resource development programmes help to ensure that the organization has the
people with the skill and knowledge it needs to achieve
its strategic objectives. They aim to train new employees to the level of performance required
I their jobs quickly and economically and to develop the abilities of existing staff so that
performance in their present jobs are improved and they are prepared to take on increased
responsibilities in the future.
The trust on human resource development is on training and development. It is a dynamic
process which aims at improving the skills and talents of the personnel. Training fills the gap
between what someone can do and what he should be able to do. Its first aim is to ensure that,
as quickly as possible, people can reach an acceptable level I their jobs. Training then builds
on this foundation by enhancing skills and knowledge as required to improve performance in
the present job or to develop the potential for the potential for the future. Development
operates at all levels- shop floor level, middle management level, and top management level
covering executives and non- executives.
Perhaps one of the biggest mistakes that many companies make is to delegate much
of the HRD accountability to the personnel department. The personnel staff typically has the
expertise in this area, but line management is in the best position to implement the
programmes. Line management, not the personnel department is top management’s key
representative to employees in most organizations. The personnel department should
establish key policies, practices, and programmes as well as advising line managers regarding
the implementation. Human resource specialist should act as consultants to line managers,
providing information about various techniques or suggestions about policies and ways
to implement them.
HRD is an important force for the future. The challenges to HRD will continue. Instead of
doers, HRD practitioners will be the process designers,
researchers, strategists, advisors, business managers, and consultants. Looking a head to the
21st century, it is clear that the HRD community must accelerate the trends that have just
begun. They must:
Ensure that all people practice and support continues development, learning and
high performance;
Work to create participative cultures and to dissolve autocratic and dependent mindsets;
Help prepare people and institutions to succeed in a rapidly changing global village;
Treat their employees like customers for enduring success of the organization.
4.3.5. Human Resource Relationships:
Human Resource relationships deal with the handling of employees individually and
collectively as members of trade unions or staff associations. Their main aim is to
increase co-operation and trust and to involve employees actively in the company’s affairs.
It also deals with problem solving techniques, particularly to solve problems relating to
disciplinary cases and grievances. There are two sides to a dispute in most organizations- the
management and workers. There is a gap and the means have to be found to bridge that gap.
Whether or not unions exist, it is highly desirable for the management to develop methods of
dealing with employees collectively. Nonetheless, relationships with unions often involved
confrontations. The necessary techniques must be evolved for encouraging mutuality and
working together in the interest of all. Unions have to be managed like everything else in an
organization. Management normally gets
the union it deserved. If it handles unions the wrong way, the result for the results for the
organization can be disastrous.
An approach to collective dealing should be:
a. The recognition of the union,
b. The respective role performance of management and union,

c. The type of procedures one can adopt to regularize relationship with unions,
d. The basis techniques of negotiating with unions,
e. The mechanism of involvement through participation, both traditional forms of joint

consultation as well as the more recent Japanese import of quality circles.
4.3.6. Human Resource Utilization:
According to Peters and waterman, to achieve productivity through people, it is very

essential to “treat them as adults, treat them as parent treat them with dignity, and treat them
with respect.” These fundamental human relations values provide the base or productivity
management programmes, which use techniques such as method study to improve efficiency.
Both managers and workers must be persuaded somehow to realize that they have a common
interest in increasing output.
The following actions are required to improve the use of human resources:
a. Conduct a productivity drive;
b. Improve manpower budgeting and control techniques;
c. Introduce work measurement;
d. Use appropriate payment method by results, bonus and profit-sharing schemes;

e. Improve motivation;
f. Involve employees in improvement programmes;
g. Introduce new technology;
h. Negotiate appropriate productivity agreement; and
i. Introduce training programmes based on an analysis of productivity needs.
4.4. Human Resource Functions:-
HR’s primary function is managing the entirety of an organization’s human resources. HR

involves nothing less than managing change, technology, innovation and diversity. HR has
become dynamic, flexible, and creative. It is no longer confined to the culture or ethos of any
single organization; its keynote is a cross-fertilization of ideas from different organizations.
Periodic social audit of HR functions are consider essential.
HR professionals have an all-encompassing role. They are required to have a though
knowledge of the organization and its intricacies and complexities. The ultimate goal of
every HR person should be to develop a linkage between the employee and the
organization because the employee’s commitment to the organization is crucial. The first
and foremost role of HR functionary is to impart continuous education to employees
about the changes and challenges facing the country in general and their organization in
particular. The employee should know about their balance sheet, sales progress,
diversification plans, restructuring plans, sharp price movements, turnover and all such
details. The HR professionals should import education to all employees through small
booklets, video films, lectures, and the like. The primary responsibilities of a human
resource manager are:
1. To develop a through knowledge of corporate culture, plans and policies.
2. To act as an internal change agent and consultant.
3. To initiate change and act as an expert and facilitator.
4. To actively involve himself in company’s strategy formulation.

5. To keep communication lines open between the HRD functions and individuals and
groups both within an outside the organization.
6. To identify and evolve HRD strategies in consonance with overall business strategy.
7. To facilitate the development of various organizational teams and their working
relationship with other teams and individuals.
8. To try and relate people and work so that the organization objectives are
achieves effectively and efficiently.
9. To diagnose problems and to determine appropriate solution particularly in the human
resource areas.
10.To provide co-ordination and support services for the delivery of HRD programmes and
services.
11.To evaluate impact of an HRD intervention or to conduct research so as to identify,
develop or test how HRD in general has improved individual or organizational performance.
The following are to nine new roles of HR practitioner as suggested by Pat
McLegan:
a. To bring the issues and trends concerning an organization’s external and

internal people to the
attention of strategic decision-makers, and to recommend long-term strategies to support
organizational excellence and endurance.
b. To design and prepared HR systems and actions for implementation so that they can
produce maximum impact on organizational performance and development.
c. To facilitate the development and implementation of strategies for transforming one’s own
organization by pursuing values and visions.
d. To create the smoothest flow of products and services to customers; to ensure the best
and most flexible use of resources and competencies; and to create commitment among the
people who help us to meet customers’ needs whether those people work directly for the
organization or not.
e. To identify learning needs and then design and develop structured learning programmes
and materials to help accelerate for individuals and groups.
f. To help individuals and groups work in new situations and to expand and change their
views so that people in power move from authoritarian to participative models of leadership.
g. To help people assess their competencies, values, and goals so that they can identify,
plans, and implement development actions.
h. To assist individuals to add value in the workplace and to focus on the interventions and
interpersonal skills for helping people change and sustain change.
i. To assess the impact of HRD practices and programmes and to communicate result so that
the organization and its people accelerate their change and development.
To compete today, HR departments are asked to achieve four seemingly contradictory
goals; First, HR functions are being asked to be more strategic. Second, HR functions are
also being asked to be more flexible. Third, they are also being asked to take a hard line of
costs. Finally, HR departments have to be more strategic, flexible, cost-efficient, and
system-oriented. Ironically, while the need for HR is obviously booming, the future of the
human resource department itself sometimes seems in doubt. Human resource
departments will face downsizing, reengineering and outsourcing. They face pressure from
senior management to add value t the organization or have their functions contracted out.
The human resource activities which are normally outsourced are temporary staffing,
recruiting, benefits and services administration, payroll, or training. Cost reduction is
the most commonly cited explanation for these measures.
What the human resource departments have to do keep themselves from getting outsourced?
They need to focus more on activities that clearly add value to the company’s bottom line
activities such as strategic planning, change management, corporate culture transition, and
development of human capital.
Human Resource Management has receives tremendous attention in recent years. Its role in
organizations has also undergone a substantial change and many organizations have
gradually oriented themselves from the traditional
personnel management to a human resource management approach, although many see it as
the “old wine in a new bottle.” The basic approach of HRM systems are designed without
understanding the organization’s structure, tasks, processes and people. It is imperative for
any HRM activity to have a conductive organizational climate to stabilize such efforts in
reality. It is essential that HRM systems are designed in the framework of the total
organization. HRM efforts fail miserable in such organizations where no attention is paid to
these systems. HR intranet offers the greatest innovation to HR departments since the advent
of the desktop computer. HR intranets allow the HR department to be open virtually 24 hours
per day to efficiently perform many of the routine tasks required of human resources
organizations. These include:
Rapid dissemination of valuable information on a wide variety of topics.
Collection o information from employees.
Enabling employees to perform HR related tasks with minimal
HR time requirement.
4.5. Total Quality Management Approach to HRM
Total Quality Management (TQM) is a set of concepts and tools for getting all employees
focused on continuous improvement in the eyes if the customer. It involves collection of data,
multi-functional teams, brain storming, advance experimental methods and group based
rewards and recognition. The journey toward total quality can be broadly segregated into
six major steps:
⎫ Preparation,
⎫ Planning,
⎫ Awareness,
⎫ Deployment,
⎫ Implementation, and
⎫ Continuous improvement.
Preparation involves homework that top management must do. They must understand quality
as a means of gaining competitive advantage and customer satisfaction. Planning
necessitates setting broad goals for improving quality, selecting a quality management
system and developing and improvement plan. Awareness is about communicating all that
has been done. Everyone needs to become familiar with the philosophy, direction and
approach that the management team has developed. This is where the management capture
the heart and minds of people and makes them believes that pursuing TQM is in their best
interest. Deployment involves organizing teams, relevant and appropriate training and
assigning responsibilities. At the implementation stage process and product improvements
actually takes place. Continuous improvement is a never ending process. It involves assessing
and rewarding progress, resetting improvement goals, and conducting on-going training.
Philip Crosby, despite his reservations about HR executives, believes` that “HR should the
architect of corporate culture.” It is the function of HR departments to build values and
practices supporting continuous, incremental improvement in quality throughout the
organization. And that emphasis must be applied with equal force within the HR department
itself. W. Edwards Deming talks about driving fear out of the workplace. Much of this fear
is tied into the control and hierarchy-dominated fabric of many
organizations. The “workers” fear the “bosses”, and this fear distracts from high-quality,
collaborative work.
Once the HRM department has learned to make quality a way of life within its own function,
it can assume an expanded role of supporting TQM throughout the organization a long history
of research has focused on the relationship between product (and service) quality and a
number of HR practices and systems. With the emphasis on TQM some of the current human
resource practices need to be reviewed. The following HR practices can have a significant
impact on quality performance.
4.5. Selection:
For decades, research in this field has validated various selection devices as indicators of how
a candidate will perform on the job, in both productivity and quality. The current focus on
total quality management, however, has brought a new dimension into play. Ability testing,
in particular, needs to be viewed differently. Organizations that adopt a total quality
management approach required individuals who are keen problem solvers, and good at
teamwork. These are the abilities which need to be tested during the selection process.
Many Japanese companies that operate in the US have an extensive selection process.
Selection should also identify candidates who can function well in group setting.
4.6. Development and Training:
Development and training are the major features of all TQM programmes. Typically, the
training covers problem-solving techniques, problem analysis, statistical process control, and
quality measurement. All these go beyond a
specific job skill. Organizations also conduct extensive training in group process and group
decision-making. At a higher level, managers and others are also required to be sensitized
to the importance of quality. HR department can add value to the efforts if they approach
towards training with a customer service focus.
4.7. Career Development:
Traditionally, most organizations are supported linear careers, i.e., careers that move up the
hierarch. For TQM, however, a different focus is required. TQM requires employees with a
system-oriented-a view of the whole as well as expertise in particular functions. It requires
cross-functional experience, and more power and decision-making authority in the hands of
individuals at lower levels of the organization.
4.8. Performance Management:
In most of the organizations, performance appraisal is the basis of human resource

management. It is used for determining reward levels, to validate tests, to aid career
development, to improve communications, and to facilitate understanding of job duties.
Most quality gurus are critical about the existing performance appraisal practices. They point
out that these practices focus too much on the individual as far as quality problems are
concerned. Deming argues that most quality problems are the product of systems and
processes. According to him, focus on individuals is counterproductive, in that it diverts
attention from the root causes of poor quality. Hence, he calls for total scrapping of individual
performance appraisal systems particularly those that encourage competence within the
organization. An ideal performance management system can focus strongly on developing
skills and abilities necessary to perform well and, as such, directly support collective
responsibility.
4.9. Pay System:
Most pay systems have likewise focused on individuals, job descriptions spell out what an
individual is to do, job evaluation systems suggest how much the job is worth, and merit
rating reflect how well the individual has done the job. Again, there is a strong, direct
conflict between these traditional practices and the TQM emphasis on collective
responsibility, horizontal relationships, and horizontal learning. Quality management
programmes have emphasized abandoning individual-based merit increase systems.
Typically, however, they have not suggested an alternative.
4.10. Industrial Relationships:
Industrial relations experienced by most organizations are just the opposite of what is
required under shared responsibility to produce high quality products and services. If union
management agreements are based in contract, carefully specified jobs, accountabilities,
and elaborate grievance procedure, there is little room for participation, problem- solving
and systems solutions. TQM recognizes unions as partners in the organization’s success and
regard them as critical players. The union also assumes responsibility for quality
improvement. All this creates a climate in which employees participate in important
discussions. If there is no union support there is a danger that employees will not trust the
purpose and activities that
are part of the total quality programme. Thus, relationship with union has to be moved into a
partnership mode for a TQM effort to succeed. It requires considerable change in related
activities such as collective bargaining, grievance handling, and the like.
4.11. Communication:
Information is a very versatile commodity. Easier said than done making information flow
within the organization is a complex and difficult task. Information and total quality are inter-
linked. Feedback about quality and information is a critical to all quality improvement
programmes. Open flow of information about quality and business results must e shared
throughout the organization. This is in contrast to prevailing practices in many large
organizations which are secretive about their performance results, business plans and major
changes for a variety of reasons. Employees who receive information should possess
necessary skills to understand the same and participate in problem-solving activities.
4.12. Computerizing of Human Resource Systems:
Consider the paper work required to manage the company’s human resource system. Very
small firms can handle all or most of the human resource record keeping through manual
systems. But as the company grows, various components of the human resource systems have
to be computerized if the firm is to remain competitive. As the company grows, it
become increasingly unwieldy and uncompetitive to rely exclusively on manual
human resource systems. There are firms which provide software solutions for virtually all
personnel tasks ranging from benefits management, compensation, statutory compliance,
employee relations, outsourcing, payroll, time and attendance systems, writing employee
policy manuals, writing performance reviews, creating job descriptions, and conducting
employee surveys.
4.13. Mergers and Acquisitions:
One strategy organizations can use in response to organizational pressure is to become

smaller- i.e., to downsize. Another strategy is to become larger. Instead of just becoming a
larger version of what the organization already is, organization can choose to “marry” another
organization as a way of increasing their size. Organizational marriages encompass the
concept of mergers and acquisitions. The technical distinction between mergers and
acquisitions is slim. A merger is the joining of two organizations of equal status and power.
Their union is mutually decided. Both organizations think they will be more prosperous by
their formal association with the other. An acquisition, on the other hand, is the procurement
on=f one organization by the other. The purchasing organization becomes more dominant
and plays a powerful role.
Once the merger or acquisition is agreed, it has to be successfully managed. Employees need
to be afforded opportunities to participate in the organizational change and communication
process. People aspect is very important in any acquisition process. The success of any
merger or acquisition is highly dependent on managing cultural differences. The various
questions that can be raised in this context are:
1) How do the respective companies go about their business?
2) What are the social and educational backgrounds of key executives?
3) Does the company to be acquired have hierarchical or flat structure?
4) What is the status of a trade union, if any, and how the relationship is being
managed?
5) What do the compensation and benefit policies signify?
These and other questions can provide the basis for an audit of human resource management
that will provide essential information if the new company is to be successfully integrated.
The communications framework is the most important factor for smooth integration in an
acquisition. With effective communications the acquiring company can develop a climate of
confidence and, hopefully, eliminate much of the friction which frequently occurs.
4.14. HUMAN RESOURCE MANAGEMENT IN LIC
4.14.1 Recruitment At LIC
Recruitment at LIC is done by the central office at Mumbai. The recruitment process for
Assistant Administrative Officers (AAOs) at LIC begins with the placing of advertisements
in popular national and regional newspapers across the country.
Candidates applying for the post of AAOs should be between 21 and 28 years of age. They
should hold a graduate / postgraduate degree in any subject with minimum of 50% marks.
Candidates from certain backgrounds
(SC, ST, and OBC) are given some concessions with regard to age and marks.
Short listed candidates are asked to appear for an entrance examination. The entrance
examination has two papers – one is of an objective types and the other an essay type. The
objective type paper test intelligence, aptitude, mathematical knowledge, logical reasoning,
general knowledge and awareness of political and cultural events.
After the written test, candidates have to appear for interview, which are conducted by LIC
offices across the country. Based on their overall performance, candidates are selected.
4.14.2. PRAMOTIONAL POLICIES IN LIC
In LIC, employees promoted to higher posts are placed on probation ranging from 6 months
to 1 year depending upon the class (explain below) to which he belongs. The competent
authorities may used their discretion to a maximum period of 2 years.
An employee on probation is liable to be reverted to his earlier position without notice;
however the period of probation will be counted permanent service for all purposes.
The organizational hierarchy in LIC is expressed in terms of various classes.
1. CLASS 1: Include the chairman, the managing directors, the executive directors, branch
managers or administrative officers to assistant branch managers or assistant administrative
officers.
2. CLASS 2: This class comprises of development officers. These development officers have
agent under then who work on commission and not on salary.
3. CLASS 3: This class comprises of all the administrative staff they are higher-grade
assistant (HGA), assistances, record clerks (RC), cashier and machine operators.
4. CLASS 4: This class comprises of the sub-staff. They are the peons, watchmen, sweepers,
divers, etc.
Chapter 5
CONCLUSION AND SUGGESTIONS
5.1. Summary
The human capital of an organization represents one of its largest investments. The objectives
of HRM include getting the organization right people, paying and treating them fairly,
and getting them involved in working productively. The attainment of these objectives
necessitates the performance of several functions. The main HRM systems are:
⎫ Appraisal system;
⎫ Career system;
⎫ Training system;
⎫ Work system;
⎫ Cultural system; and
⎫ Self-renewal system.
All systems and sub systems of HRM must be incorporated in the organization while setting
the goals and objectives. This will also indicate the purpose and processes and make HRM
more meaningful. Human resource functions are many and varied and include such things
as human resource planning, recruitment, selecting, training, and canceling employees,
compensation management, and employer-employee relations. In small organizations, most
human resource functions are performed by owners or operating managers. Large
organizations usually have a human resource or personnel department that is responsible for
co-coordinating and directing the human resource functions. However, little systematic
information exists in the area of HRM policies and programmed that are generally followed
in organizations to achieve their corporate goals and objectives. The General Insurance
Corporation recognizes that human recourses are its most valuable assets. Training and
performance appraisal in the GIC is dealt in the 3rd chapter. It is concluded that the training
brings perfection and specialization in the performance of the individual in the GIC. It has
been conducted various training program from time to time in order to maintain and for the
augment of the skills of its employees. Successful human resource management is essential
to organizational growth and success. In the light of new challenges, organization’s long-
range planning and policy-making activities.
BIBLOGRAPHY
1. Batra G.S., Modern Trends in Accounting Research. Deep & Deep Publications,
New Delhi, 2000.
2. Stewart Thomas A., “Your Bank’s most valuable asset: Intellectual Capital.” Fortune,
Oct. 3,1994.
3. Sadan, S.S. and L.B. Auerbach, Op.cit,
4. Tarmoom, A.Z., A conceptual structure for human resource – Total cost

accounting model”, Himalaya Publishing House, New Delhi-110002
5. Likert R., The human organization: Its management and value, McGraw Hill, New
York, 1967.
6. Dr. Mamta Jain, Insurance HRD practice.
REFERENCES
1. Tarmoom, A. Z., “A conceptual structure for human resource - Total cost accounting
model”, Himalaya Publishing House, New Delhi-110002, p. 17
2. Ibid, p. 18
3. Ibid, p. 18
4. Likert R., The human organization: Its management and value, McGraw Hill, New
York, 1967.
5. Giles, W. J. and D. F. Robinson, Human asset accounting, Lawrence – Allen,
Great Britain Revised 1980.
6. American Accounting Association 1971, A statement of basic accounting theory,
Evanston III, p. 10.
7. American Accounting Association 1972, “A report of the committee on human

resource accounting”, The Accounting Review, Supplement, Vol. XLVII,pp. 182 –
185.
8. Jurkus, A. F., “The Uncertainty factor in Human Resource
Accounting”, Personal Journal, Vol.56, No. – 6, Nov. – Dec. –
1979. P.72 -75.
9. Flamholtz, E. G. , “Human Resource Accounting: Advances in
concepts, methods and applications”, Jessey – Base INC, San
Francisco, California, Second Edition- 1986.p.96.
10. Ibid, p.121.
11. Batra, G. S., Modern Trends In Accounting Research, Deep
and Deep Publications, New Delhi- 110027, p.233 – 235.

12. Ibid, p.224.
13. Ibid, p.224.

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“A STUDY ON THE RELEVANCE OF HUMAN

RESOURCE IN TODAY’S BUSINESS ENVIRONMENT”

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

Submitted to: Submitted by:

Mr. Deepak Kaushal, Sarthak Katiyar,

Department of Management Studies, BBA 6th Semester (HR),

Graphic Era Graphic Era

(Deemed To Be University) (Deemed To Be University)

DATE: ……. 2019 SARTHAK KATIYAR

PLACE: Dehradun BBA (2016-19)

With immense pleasure I am presenting “A Study On The Relevance Of Human Resource

Human Resource Management (HRM) is concerned with the human beings in an

According to Decenzo and Robbins, “Human Resource Management is concerned with

Human Resource Management (personnel management) as defined by the Institute of Human

“Human Resource Management (personnel management) is responsibility of all those

Michael J. Jucius defined Human Resource Management (personnel management) as,

1.4. Functions of Human Resource Management (HRM)

Human Resource Management involves a large number of functions or activities. The

2. Organizational and Job Design:-

A important activity of Human Resource Management developing an organization which

Staffing or acquisition of Human Resources is an additional bustle of Human Resource

Attracting qualified people to the organization; Selecting from in the

midst of candidates; Reassigning employees through transfer;

Promotion or relegation and ultimately managing the employees division through

4. Training and Development:-

This activity of Human Resource Management focuses on improving the performance of

5. Performance Appraisal and Review:-

Performance appraisal and review is an ongoing evaluation of individual and group

⎫ To provide feedback about performance, to determine the need or training;

6. Compensation and Reward:-

7. Managing Effective Employee Employer Relationship:-

8. Health and Safety Management:-

This is relatively new unction of Human Resource Management. Employee participation

10. Organizational improvement:-

1.5. RESEARCH DESIGN & METHODOLOGY

1. Life Insurance corporation of India Ltd

2. Max New York Life Insurance

3. State Bank of India.

4. The Thane District Central Bank Ltd.

11.Union Bank Of Indian.

1.6 TOOLS USED FOR COLLECTION OF DATA

A) Published Sources – Books, Periodicals etc.

B) Audited financial Statements of the selected insurance companies. C) Professional

D) Internet web sides of various research journals.

1.7 SIGNIFICANCE OF THE STUDY

given more than usually appear;

auditor’s certificate shows everything O.K.;

the value of the men who run the show.”

1.8 SCOPE AND LIMITATIONS OF THE STUDY

In preparing the questionnaire related to stock of human resource, labour

1. Peter F. Drucker, management: Tasks, Responsibilities, Practice, William Heinemann

Delhi, 1984, p.87

3. Quoted in chandan J.S., Fundamentals of modern management, Vikas

Publishing House (p) Ltd; 1986, New Delhi p.1.

4. Megginson, Leon C., Personnel and Human Resources Administration,, Richard

11.Curle, Adam, some aspects of Educational Planning In Underdeveloped Areas Harvard

Human Resource Management is about managing people. It is a process of binding people

2.1.2. Ancient Indian Literature:-

Indian literature. Valmiki, in his Ramayana (sundarakand sarge 64, slokas

In selection and recruitment of employees, Brihaspati has disapproved the appointment of

2.2. HRM vis-à-vis HRD

As a result of the fundamental changes in attitudes, approaches, outlook, philosophy,