Introduction HRM

An organization is driven by human capital and the quality and effectiveness of the
organization is determined by the quality of the people that are employed. the resources of
men money material and machine are collected and coordinated through people. Without
people organization can not exist. Success for most organizations depends on finding the
employees with the skills to successfully perform the tasks required to attain the company’s
strategic goals. Management decisions and processes for dealing with employees are critical
to ensure that the organization gets and keeps the right staff.

HRM may be defined as a set of policies practices and programs designed to maximize both
personal and organizational goals. The process of binding people and organizations together
so that the objectives of the each are achieved. Some definitions of HRM are as follows

“HRM is the management function that is concerned with getting, training, motivating
and keeping competent employees.”

“HRM is a most advanced approach in the field of resource mgmt. talks about optimal
utilization of human capital. The approach is integrative and supportive.”

“HRM does talk about the cultivation of a skillful environment in which people or
employee associate are able to extract their highest potential.”

HRM deals with the day to day operations of the human resources department. This
curriculum would include business law, compensation, employee relations, benefits, and
medical etc.

Human Resource Management ("HRM") is a way of management that links people-related

activities to the strategy of a business or organization. HRM is often referred to as "strategic
HRM". It has several goals:

• To meet the needs of the business and management (rather than just serve the interests
of employees);
• To link human resource strategies / policies to the business goals and objectives;
• To find ways for human resources to "add value" to a business;
• To help a business gain the commitment of employees to its values, goals and
objectives

Definition of HRD

HRD DEALS WITH DEVLOPMENT & UPGRADATION OF HUMAN CAPITAL

(EXSISTING MAN POWER’S UPGRADATION IN AN ORGANISATION).IT IS A
LONG TERM PROCESS.

A Set of systematic and planned activities designed by an organization, to provide its

members with the necessary skills to meet current and future job demands. It is a part
of HRM.

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HRD: Human Resource Development deals with the training and the developmental aspect
of employees. Most HRD curriculum includes classes like T & D, Organizational dev.,
industrial psy.

DIFFERENCE B\W HRM & HRD

HRM stocks the human capital as given and tries to optimally allocate among different
process activity in such a way that the output is maximized.

HRD tries to bring qualitative changes in stock of human capital in accordance with the need
of organization and corporate objective .it tries to mold the employee according to
organization requirement.

HRD focuses on training and optimizing work performance. HRM focuses on whom you
hire, whom you fire and remediation to employees who need discipline and retooling to
continue their employment.

HRD is more proactive; it copes with the changing needs of the people as well as anticipates
these needs and HRD is function more independent with separate roles to play.

HRD is sub-system of a large system, more organizational oriented and HRD is function
more independent with separate roles to play.

HRD is developing the whole organization and HRM is concerned with people only.

HRD is continuous process and HRM is a routine and administrative function.

HRD is involvement of the entire work force from top to bottom is more and a must in most
of the cases and HRM is basically the responsibilities of the HR department

Point of distinction HRM HRD

1. status It is and independent
functions with independent
sub function.
2. orientation It is a service and reactive
function
3. aims It seeks to improve
efficiency of people and
administration
4. incentives used It focuses on salary,
economic rewards, job
simplification and job
specification for
motivating people.
5. responsibility It is considered to be
responsibility of hrm
It is an integrated system
consisting of
interdependent sub system
It is a proactive function
It seeks to develop total
organization and its
culture.
It focuses on autonomous
work group. Job challenges
and creativity for
motivating people
It is the responsibility of all
manager

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FUNCTIONS OF HRM mgmt of HRM consist of several interrelated functions. These
functions are common to all organization .these functions may be broadly classified into two
categories

1. MANAGERIAL FUNCTIONS

2. OPERATIVE FUNCTIONS

MANAGERIAL FUNCTIONS

1. PLANNING
2. ORGANISING
3. DIRECTING
4. CONTROLLING

PLANNING:

IT IS DECIDING IN ADVANCE THE FUTURE COURSE OF ACTION. IT INVOLVES

FORECASTING AND RESEARCH .IT FORECASTS NEED FOR HUMAN
RESOUCES .PREDICTING LABOUR, WAGES ETC.

ORGANISING:

IT IS THE PROCESS OF ALLOCATING TASKS AMONG THE MEMBERS OF GROUP,

ESTABLISHING AUTHORITY –RESPONSIBILITY RELATIONSHIPS AND
INTEGRATING ACTIVITIES AMONG THEM. AN EFFECTIVE ORGANISATIONAL
STRUCTURE IS FORMULATED THROUGH PERSONNEL RELATIONSHIPS.

DIRECTING:

IT IS THE PROCESS OF MOTIVATING ACTIVATING, LEADING AND

SUPERVISING PEOPLE, IT INCLUDES SUPERVISION OF SUBORDINATES.

DIRECTING IS THE HEART OF THE MANAGEMENT PROCESS BECAUSE IT IS

CONCERNED WITH INITIATING ACTION, SECRUING WILLING COOPERATION
OF EMPLOYEES AND TAPPING THEIR MAXIMUM.

CONTROLLING

IT REFERS TO COMPARING OF THE ACTUAL PERFORMANCE WITH

PREDECIDED STANDARDS.IT IMPLIES CHECKING ,VERIFYING AND
REGULATING TO ENSURE THAT EVERY THING OCCURS IN CONFIRMITY WITH
THE PLANS ADOPTED AND THE INSTRUCTIONS ISSUED.

CONTROLLING THE MANAGEMNT OF HR INVOLVES AUDITING TRAINING

PROGRAMS, ANALYSING LABOUR TURNOVER RECORDS, DIRECTING MORALE,
SURVEYS etc

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OPERATIVE FUNCTIONS

1. Procurement function: It is concerned with securing and employing the right kind
and proper number of people required accomplishing the organization objective.

a. Job analysis: It is the process of studying in detail the operation and

responsibilities involved in a job so as to identify the nature and level of HR
required. Job description is prepared with the help of information provided by
Job Analysis.
b. Hr planning: It is the process of estimating present and future manpower
requirements of organization and formulating action programs to bridge the gap
of manpower.
c. Recruitment: It is the process of searching for required personnel and
stimulating them to apply for job in the organization. A proper balance should
be maintained between internal and external sources of recruitment.
d. Selection: It refers to employers judging the suitability of different candidates
for job in the organization and choosing the most appropriate persons
e. Placement: It means assigning suitable jobs to selected candidates so as to
match employees qualification with job requirement
f. Induction: It involves familiarizing the new employees with company. the
work environment and existing employees so that the new people feel at home
and can start work confidently.

2. DEVELOPMENT HR development Is a process of improving knowledge skills

aptitudes and values of employees so that they can perform the present and future jobs
more effectively.

a) Performance appraisal; It refers to employers’ systematic evaluation of

employees with respect to their performance on the job and their potential for
development
b) Training; It is the process by which employees learn knowledge skills and
attitudes to further organizational and personal goals.
c) Executive development: It is the process of developing managerial talent
through programs.
d) Career planning and development; it involves planning and implementing
career plans so as to fulfill the career aspirations of people. it involves mobility
of personal of personnel through promotion and transfers.

3. Compensation It refers to fair and equitable remuneration to employees for their

contribution to the attainment of organizational objectives. It consists of:

a) Job evaluation: It is the process of determining real worth of the job. the
effectiveness of job is compared with its relative worth in terms of time and
money.

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 b) Wages and salary administration; It implies developing and operating
suitable wages and salary programmed conducted to determine wages and
salary structure for various jobs in the organization.
c) Bonus: It involves payment of bonus paid under the Payment of Bonus Act,
1965 as well as non – statutory and other incentives.
d) Payroll; Maintenance of proper and systematic records of existing employees
along with essential details.

4. INTEGRATION FUNCTION; It is the process of reconciling organizational goals

with those of its members. Integration involves motivating employees through
various financial and non financial incentives providing satisfaction ,handling
employees grievances through formal grievance ,collective bargaining ,workers
participation in management , conflict resolution developing cordial human
relationship employee consulting improving quality of work life. It includes:

• Motivation : it is the force which instigates an employee to work in a proper

direction
• Job satisfaction: it is the amount of satisfaction and contentment derived from
ones job, its pay and environment.
• Grievance redressal ; various problems and conflict which are amongst the
employees should be properly and cordially handled
• Collective bargaining: It means negotiating with the managers on various
terms and conditions.
• Conflict management: It refers to effective and efficient management of
conflict arising in the organization.
• Participation of employees; Employees should be given a chance to participate
in the working of the firm. their suggestion
• Discipline; It is one of the most essential requirements of organization for its
smooth and efficient working.

5. Maintenance; It is concerned with promoting physical and mental health of

employees by providing various benefits and facilities

• Health; it provides health facilities, medical aid etc.

• Safety it provides security measures like PF, pension, gratuity, injury/
disablement benefits allowances, group insurances etc.
• Welfare schemes; health, safety and welfare measures are designed to preserve
the HR of the organizations.
• Personnel records: they are maintained to keep entire records of the employees
and update them.
• Personnel research. Research is conducted to check whether HR is sufficient
as per the current status.
• Personnel audit: controlling and evaluating current HR status and
requirements

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OBJECTIVES OF HRM

1. SOCIETAL- To be ethically and socially responsible to the needs and

challenges of the society.
2. ORGANIZATIONAL-To bring organizational effectiveness and serve
other departments
3. FUNCTIONAL- To do the optimal utilization of the resources and
respond to the need of the organization.
4. PERSONAL-To assist employees in achieving their personal goals to
motivate and retain them thereby, enhancing the individuals contribution
to the organization

9 Resource Areas of ASTD MODEL

 T&D
 OD
 Organizational/ Job design
 HRP
 Selection and Staffing
 Personal Research and IS
 Compensation and Benefits
 Employee Assistance
 Labor and Union Relations