CHAPTER-1

INTRODUCTION

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INTRODUCTION

The concept of human resource management is increasingly becoming a most vital

function of a modern manager. Human resource management is the management of
employees’ knowledge, abilities, talents, aptitudes, creative abilities, etc.

Human resources take active role in the modern economic scenario of any country. The
abundant physical resources alone cannot benefit the growth of the country without
human resource component, which transforms physical resources into productive
resources. In fact, the differences in the level of economic development of the countries
are largely a reflection of the differences in quality of their human resources. The key
element in this proposition is that the values, attitudes, general orientation and quality of
people of a country that determines its economic development.

“People are our most valuable asset” is a cliché which is no member of any management
team would disagree with.

The concept of HRM assumes immense importance as HRM plays vital role in meeting
the challenging requirements of highly skilled & component human resources due to
globalization.

DEFINITION

Human resource management is planning, organizing, directing & controlling of the

procurement, development, compensation, integration, maintenance & separation of
human resources to the end that individual, organizational and social objectives are
accomplished.

Human Resource Management is the process of recruiting, selecting, inducting

employees, providing orientation, imparting training and development, appraising the
performance of employees, deciding compensation and providing benefits, motivating
employees, maintaining proper relations with employees and their trade unions, ensuring
employees safety, welfare and healthy measures in compliance with labour laws of the
land.

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 MEANING
Human resources management involves all management decisions & practices that
directly affect or influence people or human resources, who work for the organization. In
recent years, increased attention has been devoted to how organizations manage human
resources. This increased attention comes from the realization that an organization’s
employees enable an organization to achieve its goals, & the management of these human
resources is critical to the success of the organization.
HRM is management function that helps managers to recruit, select, train & develop
members for an organization. Obviously HRM is concerned with the people’s dimensions
in organizations. HRM refers to set of programs, functions & activities designed &
carried out.
Human resource management means employing people, developing their resources,
utilizing, maintaining & compensating their services in consonance with the job &
organizational requirements.
CORE ELEMENTS OF HRM
 People: Organizations mean people. It is the people who staff & manage organizations.

 Management: HRM involves application of management functions & principles for

acquisitioning, developing, maintaining & remunerating employees in organizations.

 Integration & Consistency: Decisions regarding people must be integrated & consistent.

 Influence: Decisions must influence the effectiveness of organization resulting into

betterment of services to customers in the form of high quality products supplied at
reasonable costs.

 Applicability: HRM principles are applicable to business as well as non-business

organizations too, such as education, health recreation & the like.

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 HRM Activities:-

1. HR Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee & Executive Remuneration
10. Motivation
11. Communication
12. Welfare
13. Safety & Health

SCOPE OF HRM

NATURE
OF HRM

PROSPECT EMPLOYEE
S OF HRM HIRING

HUMAN
RESOURCE
MANAGEME EMPLOYEE &
INDUSTRIA
L
NT EXECUTIVE
REMUNERATI
RELATIONS
ON

EMPLOYEE EMPLOYEE
MAINTENAN MOTIVATI
CE ON

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 OBJECTIVES
 Societal Objectives: to be ethically & socially responsible to the needs & challenges of
the society while minimising the negative impact ofsuch demands upon the organisation.

 Organisational Objectives: To recognise the role of HRM in bringing about

organisational effectiveness. HRM is only means to achieve & assist the organisation
with its primary objectives.

 Functional Objectives: To maintain department’s contribution & level of services at a

level appropriate to the organisation’s needs.

 Personal Objectives: To assist employees in achieving their personal goals, at least in so

far as these goals enhance the individual’s contribution to the organisation. This is
necessary to maintain employee performance & satisfaction for the purpose of
maintaining, retaining & motivating the employees in the organisation.
 To create & utilise capable & motivated workforce to achieve the basic organisational
goals.
 To establish & maintain proper & sound organisational structure & healthy working
relationships among all its employees.
 To ensure the integration of individual group’s goals with those of the organisation.
 To create facilities for individuals & groups to develop so as to be in tune with the
growth of the organisation.
 Proper & optimum utilisation of human resources.
 To ensure adequate & equitable wages, incentives & other benefits so that satisfied
individuals & groups are motivated to take on challenges.
 To maintain high employee morale.
 To continuously upgrade the skills & knowledge of the employees, by training &
development programmes.
 To ensure opportunity for participation in management to the extent possible.
 To provide acceptable & effective lead

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Operative Functions:
The operative functions of HRM relate to employment, development,
compensation & relations. All these are interacted by managerial functions.
Also, they are to be performed in conjunction with management functions.

• Human Resource Planning

• Recruitment
EMPLOYMENT • Selection
• Induction
• Placement

• Performance Appraisal
HUMAN • Training
• Management Development
RESOURCE • Career Planning & Development
DEVELOPMENT • Organisation Change
• Organisation Development

COMPENSATIO • Job Evaluation

N • Wage & Salary Administration
MANAGEMENT • Fringe Benefits

• Motivation
• Morale
HUMAN • Job Satisfaction
• Communication
RELATIONS • Grievance & Disciplinary Procedures
• Quality of Work Life & Quality
Circles

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