Human Resource Management(HRM) is a process of bringing people & organizations together so that the goals of each are met

HRM may be defined as the art of

procuring , developing and maintaining competent workforce to achieve the goals of an organization in an efficient manner

 It can also be defined as a process consisting of the acquisition, development , motivation and maintenance of human resource

 HRM is the planning , organizing , directing &controlling of the procurement , development , compensation , integration , maintenance & separation of the human resources to the end that individual , organizational & social objectives are accomplished.

Features or Nature of Human Resource Management

 Pervasive Force :

HRM is pervasive in nature. It is present in all enterprises all levels of management in an organization

 Action Oriented : HRM focus attention on action , rather than a record keeping , written procedures & rules

 Individually oriented: It helps employees to develop their potential fully.

 People Oriented: HRM is all about people at work, both as individuals and groups.

 Future Oriented : Effective HRM helps the organization meet its goal in the future by providing for competent and well motivated employees .

 Development Oriented : HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of the employees. Training is offered to sharpen & improve their skills.

 Integrating Mechanism: HRM tries to build & maintain cordial relations between people working at various level in the organization

 Inter-disciplinary function: HRM is a multi-disciplinary activity , utilizing knowledge & inputs drawn from psychology , sociology and economics .

 Continuous Function : HRM requires a constant alertness & awareness of human relations & their importance in every day operations

Scope of Human Resource Management

The scope of HRM is very wide. The Indian institute of management has specified the scope of HRM thus:

Personnel aspect: This is concerned with the manpower planning, recruitment , selection, placement, transfer ,promotion , training & development, lay off & retrenchment, remuneration, incentives , productivity etc..

 Welfare aspect : It deals with working conditions & amenities such as canteens , crches , rest & lunch rooms , housing , transport , medical assistance, education etc.

 Industrial relations aspect: This covers union-government relations , joint consultation, collective bargaining, grievance & disciplinary procedures, settlement of disputes .

Functions of Human Resource Management

Functions of HRM
Managerial Functions Operative Functions

Managerial Functions:
Managerial functions of personal management involve planning , organizing , directing and controlling. All these functions influence the operative functions

Managerial Functions

Planning
Organizing

Directing Controlling

 Planning: This involves planning of planning of human resources, requirement , recruitment , selection , training etc. It also involves forecasting of personnel needs, changing values, attitudes and behavior of employees of employees and their impact on the organization.

 Organizing: An organization is a means to an end. It is essential to carry out the determined course of action.

 Directing: The basic function of personnel management at any level is motivating, commanding, leading& activating people. The willing & effective co-operation of employees for the attainment of organization goals is possible through proper direction . Tapping the maximum potentialities of the people is possible through motivation and command.

 Controlling: Controlling involves checking , verifying and comparing of the actual with the plans , identification of deviations if any & correcting of identified deviations. Thus action & operation are adjusted to perdetermined plans and standards through control.

Operative Functions:
Operative Functions of HRM are related to specific activities of personnel management that is employment, development, compensation and relations .

Operative Functions
Employment
Human Resource Development

Compensation
Human relations Industrial relations

 Employment :
It is concerned with securing & employing the people possessing the required kind of & level of human resources necessary to achieve the organizational objectives . It covers functions such as follows.

Employment
Job analysis HR planning Recruitment

Selection
Placement
Induction & Orientation

 Job Analysis : It is the process of study & collection of information relating to the operations & responsibilities of a specific job .

 Human Resources Planning : It is a process of determination & assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization & which would provide satisfaction for the individual involved .

 Recruitment : It is the process of searching for prospective employees & stimulating them to apply for the jobs in an organization.

 Selection : It is the process of ascertaining the qualifications, experiences, skills ,knowledge etc of an applicant with a view to appraising his/her suitability to a job.

 Placement : It is the process of assigning the selected candidate with the most suitable job in terms of job requirements . It is matching of employee specifications with job requirements .

 Induction & Orientation : These are the techniques by which a new employee is rehabilitated in the changed surrounding & introduced to the practices ,policies, purposes & people etc of the organization.

Human resource development Performance appraisal Training Managerial Development Career Planning & Development

 Performance appraisal : It is the systematic evaluation of individuals with the respect to their performance on the job & their potential for development .

 Training : It is the process of imparting to the employees technical & operating skills & knowledge .

 Management Development :
It is the process of designing & conducting suitable executive development programs so as to development programs so as to develop the managerial & human relations skill of employees .

 Career planning and development : It is the planning of ones career & implementation of career plans by means of education , training , job search & acquisition of work experiences . It includes internal and external mobility .

Compensation
Job evaluation
Wag e & Salary administration

Incentives Bonus Fringe Benefits

Social Security measures

 Job evaluation:
Its a process of determining relative worth of jobs.  Select suitable job evaluation techniques.  Classify jobs into various categories.  Determining relative value of jobs in various categories.

 Wage & Salary Administration: This is the process of developing & operating a suitable wage & salary program. It includes

Conducting wage & salary survey Determining wage & salary rates based on various factors Administering wage & salary programs Evaluating its effectives

 Incentives: Its the process of formulating, administering & reviewing the schemes of financial incentives in addition to regular payment of wages & salary

 Bonus : It includes payment of statutory bonus act,1965 & its latest amendments.

 Fringe Benefits: These are the various benefits at the fringe of the wage. Management provides these benefits to motivate the employees & to meet their lifes contingencies.

 Social security Measures:

Management provide social security to their employees in addition t the fringe benefits.

Human Relations :
It is the process of interaction among human beings. Human relations is an area of management in interacting people into work situations in a way that motivates them to work together productively, co-operatively & with economic, psychological & social satisfaction

 Industrial Relation:
Industrial relations refer to he study of relations among employees, employer, government & trade unions.

Qualities Of HR Manager

Managerial Qualities : The managerial qualities,

Intelligence:
The HR manager should be intelligent. This includes skills to communicate, articulate, moderate, understand, command over language, mental ability and tact in dealing with the people intelligently, ability to draft agreements and tact in dealing with the people intelligently, ability to draft agreements, policies etc ..

 Conceptual skill:
Personnel manager is expected to execute the managements decisions regarding personnel issues with speed, accuracy and objectivity. Conceptual skills are involving the ability to understand how the parts and people of an organizational depend each other

 Motivating Qualities :
HR manager should motivate people to strive willingly to attain organizational objectives .

 Emotional Stability:
HR manager should act with selfconfidence, avoid anger , take decisions on a rational basis and think clearly and maturely. He should have high frustration tolerance.

Job Related Qualities:

 Empathy:
HR manager should be able to look at the things objectively. He should respect the beliefs and sentiments of others.

 Communication Skill :
HR manager should have the ability to persuade, to inform, stimulate , direct and convince his employees. To achieve this he should have good communication skill.

 Human Skill:
HR manager should considerate towards the employees because his success largely depends upon co-operation of his followers.

 Professional attitude:
He should have people patience and understanding , ability to listen before offering advice. He must be able to couple his social justice with a warm personal interest in people which must be secured by an uncommon degree of common sense

Role of HR Manager

It has been recognized that the basic role that of the HR manager is the management of manpower resources. The challenge of HR manager today is to recognize the talent and nurture the same carefully and achieve significant productivity gains over a period of time.

The following are the important roles performed by the HR Manager:

 Counselor role:
The personnel manager plays the role of a counselor to whom the employees frequently go for consultation and with the whom they discuss their marital, health, mental, physical and career problems

 Mediator:
As a mediator, he plays the role of a peace maker, offering to settle the disputes that may arise among individuals or groups. He acts a liaison and communicating link btw an individual and a group and btw labor and management

 Spokes-man:
The personnel manager has always been a frequent spokesman for or representative of the company. Because he has a better picture of his companys operations, since he deals intimately with many key organizational activities and functions .

 Problem Solver:
The personnel manager also acts as a problem solver with respect to the issues that involve human resources management and overall long range organization planning

 Change agent:
He works as a change agent within the organization because he is best suited to introduce and implement major institutional changes . He takes initiative for installing organizational development programs & convinces the top management of their need.

Personnel v/s HRM

Personnel Management
It is a management of people employed

HRM
Objectives resources management is the management of employees skills knowledge , abilities , talents , aptitudes creative abilities etc

Employee is personnel Employee in HRM is treated not management is the mostly treated only as economic man but also as as an economic man as his services social and psychological man are exchanged for wage/salary

Employee is viewed as a Employee is treated as a commodity or tool or equipment resource which can be purchased and used Employee are treated as cost centre and therefore management controls the cost of labor Employees are used mostly for organizational benefits Employees are treated as profit center and therefore, invest capital for human resource development & future utility Employees are used for multiple mutual benefit of the organizational , employees and their family members HRM is strategic management

Personnel function is treated as only an auxiliary

Objectives Of HRM

Objectives of HRM :
To utilize human resources effectively. To maintain good morale and good human relations within the organization To recognize & satisfy individual needs and group goals by offering appropriate monetary and non monetary incentives

 To create facilities and opportunities for individual or group development . To help ethical policies & behavior inside & outside the organization To enhance job satisfaction and self actualization of employee by encouraging and assisting every employee to realize his full potential

 To help organizational attain its goals by providing well trained and well motivated employees. To respect the individual as people are the greatest assets

Elements or Components or Steps in HRM

 Human Resource planning :

Its means to calculate how many people the organization wants , the type of people the organization needs at present and in future in terms of their expertise and how they fit the corporate culture

Human resource systems :

HRS includes the following.

     

Recruitment and selection Training and development Performance appraisal Reward management Health and safety management Discipline management

 Human Resource Organization:

Its concerned with achieving success by organization design and development, motivation, the application of effective leadership

 Human resource Development:

Every organization and its management has responsibility to develop its human resource if at all it wanted to remain in business , face the competition .

Significance or Importance of HRM

Human resource relationships:

It deals with handling of employees individually and collectively as members of trade unions or staff associations.

 Human resource utilization:

In order to increase productivity through people, it is very essential to treat them as adults , treat them as partner , treat them with dignity and treat them with respect .

 Human resource accounting:

It means accounting for the people as the organizational resource.HRA is a measurement of the cost and value of people to organization

 Human Resource Audit:

The main object of HR audit is to assess the effectiveness of human resources function & to ensure regulatory compliance.

Significance for corporate or enterprise :

 Creating right attitude or enterprise in achieving its goals effective motivation  Utilizing effectively the available human resource  Altering and retains the required talent through effective human resource planning, recruitment ,selection  Developing the necessary skills and right attitude among the employees

Social significance:

 Maintaining a balance between the job available and the job seekers, according to the qualifications and needs  Providing suitable and most productive employment which might bring them psychological satisfaction  By helping people make their own decisions that are in their interest  Eliminating waste or improper use of human resource through conversion of its energy and health

Professional significance :

 Maintaining the dignity of the employee as human being  Providing maximum opportunity for personal development  Providing healthy relationship between different work groups  Improving the employee working skills and capacity.

National Significance: Proper utilization of nations natural, physical and financial resources require an efficient and commuted manpower.