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HRM
UNIT I
Importance of Human Factor
1.Output will be greater than the input
2.Each individual is different from culture, education, environment, background etc
3.We cant purchase the loyalty, dedication, devotion towards the organisation.
4.Time passes human factor can bring experience to organisation to accept the challenges
5.Recent developments like legislation, trade unions enhanced their importance.
HRM is a management function concerned with Hiring,
Motivating, and
Maintaining people in the organisation.
It focuses on people in the organisation.
HRM is broad concept
Personnel Management (PM) &
Human Resource Development are part of HRM.
Nature of HRM
1.Ogranisations is the people who manage.
2.HRM involves acquisitioning, developing, maintaining
3.Decisions relating to employees must be integrated.
4.Decisions made must influence the effectiveness of an organisation.
5.HRM functions are confirmed to Non-business organisation also.
Scope of HRM
The scope of HRM is very wide. Research in behavioural sciences, new trends in managing knowledge
workers and advances in the field of training have expanded the scope of HR function in recent years. The
Indian Institute of Personnel Management has specified the scope of HRM thus:
i. Personnel aspect: This is concerned with manpower planning, recruitment, selection, placement,
transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives,
productivity, etc.
ii. Welfare aspect: It deals with working conditions and amenities such as canteens, creches, rest and
lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
iii. Industrial relations aspect: This covers union-management relations, joint consultation, collective
bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Objectives of HRM
The principal objectives of HRM may be listed thus:

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i. To help the organisation reach its goals: HR department, like other departments in an organisation,
exists to achieve the goals of the organisation first and if it does not meet this purpose, HR department (or
for that matter any other unit) will wither and die.
ii. To employ the skills and abilities of the workforce efficiently: The primary purpose of HRM is to
make peoples strengths productive and to benefit customers, stockholders and employees.
iii. To provide the organisation with well-trained and well-motivated employees:
HRM requires that employees be motivated to exert their maximum efforts, that their performance be
evaluated properly for results and that they be remunerated on the basis of their contributions to the
organisation.
iv. To increase to the fullest the employees job satisfaction and self-actualisation: It tries to prompt
and stimulate every employee to realise his potential. To this end suitable programmes have to be
designed aimed at improving the quality of work life (QWL).
v. To develop and maintain a quality of work life: It makes employment in the organisation a desirable,
personal and social, situation. Without improvement in the quality of work life, it is difficult to improve
organisational performance.
vi. To communicate HR policies to all employees: It is the responsibility of HRM to communicate in
the fullest possible sense; tapping ideas, opinions and feelings of customers, non-customers, regulators
and other external public as well as understanding the views of internal human resources.

What are the Objectives of HRM?

Personal Objectives:To assist employees in achieving their personal goals, these goals enhance the individuals
contribution to the organisation.
Functional Objectives:To maintain the departments contribution at a level appropriate to the organization's needs
Organizational Objectives:- To recognize the role of HRM in bringing about organizational
effectiveness.
Societal Objectives:- To be ethical and socially responsible to the needs and challenges of the
society. Minimizing the negative impact of such demands on organisation.
Write the importance of HRM ?
The importance of HRM is discussed below:
1. At the enterprise level:
(a) Good HR practice can help in attracting & retaining the best people in the
organization planning alerts the company to the types of people it will need in the
short, medium of long run.

(b) It helps in training people for challenging roles developing right attitude towards the
job & the company, promoting team sprit among employee & developing loyalty &
commitment through appropriate reward schemes.
2. At the individual level: Effective management of HR helps employee thus:
(a) It promote team work & team spirit among employees.
(b) It office excellent growth opportunity to people who have the potential to rise.
(c) It allows people to work with diligence & commitment.
3. At the society level: Society, as a whole, is the major beneficiary of good HR practice.
(a) Employment opportunity multiply.
(b) Scare talents are but to best use. Companies that pay & treat people well always race
ahead of others & delivers excellent results.
4. At national level: Effective use of HR helps in exploitation of natural, physical &
financial resources in a better way. People with right skills proper way. People with right
skills, proper attitude & appropriate values help the nation to get ahead & compete with
the best in the world leading be letter standard of living & better employment.
Good HR Practice

Attract & rationales

Train people for Challenging role.
Develop skills & Competencies
Promote team spirit
Develop royalty & commitment
Increase productivity & profit
Improve job satisfaction
Enhance standard of Living
Generate employment operating.

Human Resource Management Functions:

P/HRM is concerned with two sets of functions, namely - managerial functions and operative
functions.
1. Managerial Functions
The basic managerial functions comprise planning, organizing directing and controlling.
Planning: This function deals with the determination of the future course and action to
achieve desired results, Planning of personnel today prevents crises tomorrow. The
personnel manager is expected to determine the personnel regarding recruitment,
selection and training of employees.
Organizing: This function is primarily concerned with proper grouping of personnel
activities, assigning different groups of activities to different individuals delegation of
authority. Creation of a proper structural framework is his primary task. Organizing, in

fact, is considered to be the wool of the entire management afford and hence afford to be
ignored.
Directing: This involves supervising and guiding the personnel. To execute plans, direction
is essential without direction there is no destination. Many a time, the success of the
organization depends on the direction of things rather than their design. Direction then
consists of motivation and leadership. The personnel manager must be an effective leader
who can create winning teams. While achieving results, the personnel manager must,
invariably, take care of the concerns and expectations of employees at all levels.
Controlling: Controlling function of personnel management comprises measuring the
employee's performance, correcting negative deviations industrial assuring an efficient
accomplishment of plans. It makes individuals aware of their performance through
review reports and personnel audit programmes. It ensures that the activities are being
carried out in accordance with stated plans.
2. Operative Functions
The operative functions of P/HRM are related to specific activities of personnel management,
viz; employment development, compensation and industrial relations. These functions are to be
performed in conjunction with managerial functions.
(a) Procurement functions: The first operative function of personnel management is
procurement. IT concerned with procuring and employing people who possess necessary skill,
knowledge and aptitude. Under its purview, you have job analysis, manpower planning,
recruitment, selection placement, induction and internal mobility.
1) Job analysis : It is process of collecting information relating to the operations and

responsibilities pertaining to a specific job.

2) Human resources planning: It is a process of determining and assuring that the organization

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will have an adequate number of qualified persons, available at proper times, performing jobs
which would meet their needs and provide satisfaction for the individuals involved.
Recruitment: It is the process of searching for prospective employees and stimulating them
to apply for jobs in the organization.
Selection: It is the process of ascertaining qualifications, experience, skill and knowledge of
an applicant with a view to appraising his/her suitability for the job in question.
Placement: It is the process that ensures a 360 o fit, matching the employee's qualifications,
experience, skills and interest with the job on offer. It is personnel manager's reasonability to
position the right candidate at the right level.
Induction and orientation: Induction and orientation are techniques by which a new
employee is rehabilitated in his new surroundings and introduced to the practices, policies,
and people. He must be acquainted with the principles which define and drive the
organization, its mission statement and values which form its backbone.
Internal Mobility: The movement of employees from one job to another through transfer
and promotions is called internal mobility. Some employees leave an organization due to
various reasons leading to resignation, retirement and even termination. These movements
are known as external mobility. In the best interest of an organization and its employees, such
job changes should be guided by well - conceived principles and policies.

Role of HR Manager
HR manager plays a variety of roles:

1. A specialist & counselor

2. An information provider

3. A liaison man

4. A controller

5. A Charge Agent

6. Welfare officer

7. A problem solver

8. As spokesperson

9. Productivity Enhance

10. As an intellectual

11. An education

12. Humanist

13. As a Leader

14. As a discrimination

15. Strategic Partner

16. Human capital developer.

Difference Between Personnel Management And Human Resource Management

Human resource management is the new version of personnel management. There is no any
watertight difference between human resource management and personnel management.
However, there are some differences in the following matters.
Special forces recruiting What is business administration Recruiting
1. Personnel management is a traditional approach of managing people in the organization.
Human resource management is a modern approach of managing people and their strengths in
the organization.
2. Personnel management focuses on personnel administration, employee welfare and labor
relation. Human resource management focuses on acquisition, development, motivation and
maintenance of human resources in the organization.
3. Personnel management assumes people as a input for achieving desired output. Human
resource management assumes people as an important and valuable resource for achieving
desired output.
4. Under personnel management, personnel function is undertaken for employee's satisfaction.
Under human resource management, administrative function is undertaken for goal
achievement.
5. Under personnel management, job design is done on the basis of division of labor. Under
human resource management, job design function is done on the basis of group work/team
work.
6. Under personnel management, employees are provided with less training and development
opportunities. Under human resource management, employees are provided with more training
and development opportunities.

7. In personnel management, decisions are made by the top management as per the rules and
regulation of the organization. In human resource management, decisions are made
collectively after considering employee's participation, authority, decentralization, competitive
environment etc.
8. Personnel management focuses on increased production and satisfied employees. Human
resource management focuses on effectiveness, culture, productivity and employee's
participation.
9. Personnel management is concerned with personnel manager. Human resource
management is concerned with all level of managers from top to bottom.
10. Personnel management is a routine function. Human resource management is a strategic
function.
STRATEGIC HUMAN RESOURCE MANAGEMENT
SHRM is the pattern of planned human resource developments and activities intended to
enable an organisation to achieve its goals (Wright and McMahan). This means accepting the HR
function as a strategic partner in both the formulation of the companys strategic, as well as in the
implementation of those activities through HR activities.
Barriers of SHRM
Short-term mentality/focus on current performance.
Inability of HR to think strategically.
Lack of appreciation of what HR can contribute.
risk investments.
Incentives for change that might arise.
Failure to understand general managers role as an HR manager.
STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic human resource management s a branch of Human resource management r HRM. It
a fairly new field, whh ha emerged out of the parent discipline of human resource
management.

Key Features f Strategic Human Resource Management

The key features of Strategic human resource management are
There s n explicit linkage btwn HR policy nd practices and verll organizational
strategic aims nd th organizational environment.
There ome organizing schema linking individual HR interventions tht thy ar
mutually supportive.
Much f th responsibility fr th management of human resources is devolved dwn the
line.
Importance of SHRM :
Strategic Human Resource Management is very important in order to gain competitive
performance by utilizing human resource of an organization effectively.
SHRM encourages managers to be proactive which means to think ahead.
Attainment of organization objectives through human capital.
It enhances individual performance by development of commitment at all levels.
It enables development of need based personnel policy/HR policy as a prerequisite for
optimum use of human resources.
Integration of HRM policy with business goals or objectives.
Developing supportive work culture in order to encourage creativity, team work, TQM as
well as innovation and a sense of belonging.
Creation of flexible environment because in flexible environment employees can easily
adapt to changing competitive environment.
Creation of flexible working hours/ function.
Integration of people related issues with business issues.