Introduction

Every business unit needs human resource (manpower) for the conduct of different business activities. In
fact, no organisation can exist or operate efficiently without the support of human resource. Such human
resource includes top level managers, executives, supervisors and other subordinate / lower level staff /
employees. A business organization has to estimate its future manpower needs and adjust its manpower
planning and development programmes accordingly. This is called 'staffing' function of management.
Human resource management is also described as personnel management or manpower management.
Human Resource Management (HRM) is an operation in companies designed to maximize employee
performance in order to meet the employer's strategic goals and objectives. More precisely, HRM focuses on
management of people within companies, emphasizing on policies and systems.

HRM also includes employee assessment like performance appraisal, facilitating proper compensation
and benefits, encouragement, maintaining proper relations with labor and with trade unions, and
taking care of employee safety, welfare and health by complying with labor laws of the state or
country concerned.
Definition
 According to Edwin Flippo, "Personnel Management is the planning, organising, directing and
controlling of the procurement, development, compensation, integration and maintenance of people
for the purpose of contributing to organizational, individual and social goals".

 HRM is the process of recruiting, selecting employees, providing proper orientation and induction,
imparting proper training and developing skills.

 According to M L Cuming, “Human Resource Management is concerned with obtaining the best
possible staff for an organization and having got them looking after them so that they want to stay
and give their best to their jobs.”

 Dale Yoder defines “Human Resource Management as that part of the phase of management

dealing effectively with control and use of manpower as distinguished from other sources of power.”

 According to F. E. L. Brech,  “Human Resource Management is that part of management progress

which is primarily concerned with the human constituents of an organization.”

 According to Leon C. Megginson, the term human resource can be thought of as, “The total
knowledge, skill, creative abilities, talents and aptitudes of an Organization’s workforce, as well as
the values, attitudes and beliefs of the individuals involved.”

Features / Characteristics of Human Resource Management

1. People Oriented: Human resource management is concerned with employees both as individuals and as a
group in attaining goals. It is also concerned with behavior, emotional and social aspects of personnel. It is
the process of bringing people and organizations together so that the goals of each are met.

2. Comprehensive Function: Human resource management covers all levels and categories of employees.
It applies to workers, supervisors, officers, managers and other types of personnel. It covers both organized
and unorganized employees. It applies to the employees in all types of organizations in the world.

3. Individual Oriented: Under human resource management, every employee is considered as an individual
so as to provide services and programmes to facilitate employee satisfaction and growth. In other words, it is
concerned with the development of human resources, i.e., knowledge, capability, skill, potentialities and
attaining and achieving employee goals.

4. Continuous Function: Human resource management is a continuous and never ending process.
According to George R Terry, “it cannot be turned on and off like water from a faucet; it cannot be practiced
only one hour each day or one day each week. Personnel management requires a constant alertness and
awareness of human relations and their importance in everyday operations”.

5. A Staff Function: Human resource management is a responsibility of all line managers and a function of
staff managers in an organization. Human resource managers do not manufacture or sell goods but they do
contribute to the success and growth of an organization by advising the operating departments on personnel
matters.

6. Pervasive Function: Human resource management is the central sub-function of an organization and it
permeates all types of functional management viz., production management, marketing management and
financial management. Each and every manager is involved with human resource function. It is a
responsibility of all line managers and a function of staff managers in an organization.

7. Challenging Function: Managing of human resources is a challenging job due to the dynamic nature of
people. Human resource management aims at securing unreserved co-operation from all employees in order
to attain pre-determined goals.

8. Development Oriented: Individual employee-goals consist of job satisfaction, job-security, high salary,
attractive fringe benefits, challenging work, pride, status, recognition, opportunity for development etc.
Human resource management is concerned with developing the potential of employees, so that they derive
maximum satisfaction from their work and give their best efforts to the organization.

Scope of Human Resource Management

The scope of Human Resource Management is extremely wide, however, for the sake of
convenience and developing an understanding of the subject, it is elaborated as follows.
1. Human resources planning: Human Resource Planning refers to a process by which the company to try
to find the number of jobs vacancy in which a particular department. The number of staff required with the
necessary qualification and experience.

2. Job analysis design: Another important area of Human Resource Management is job analysis. Job
analysis gives detailed information about the job description and employee specification in the company.

3. Recruitment and selection: Based on information collected from job analysis the company
prepares advertisements and publishes them in the newspapers, Employment sites, etc. This
is recruitment. A number of applications are gathered after the advertisement is
published, interviews are conducted and the right employee is selected for the right post and right time thus
recruitment and selection are yet another important area of Human Resource Management.

4. Orientation and induction: Once the employees have been selected an induction or orientation

program is conducted. The employees are informed about companies’ backgrounds, products, different
subsidiaries organizational culture and values, and work ethics and introduce to the new employee to other
employees.

5.  Training and development: Every employee goes into a training program which helps him to put up a
better performance on the job. The training program is also conducted for existing staff that have a lot of
experience. This is called refresher training. Training and development is one area where the company
spends a huge amount.

6. Performance appraisal: Once the employee has put on the job performance appraisal is conducted that is
the Human Resource department checks the performance of the employee which helps appraisal future
promotions, incentives, increments in salary, etc?

7. Compensation planning and remuneration: There are various rules regarding compensation and other

benefits. It is the job of the Human Resource department to look into remuneration and compensation
planning.

8. Motivation, welfare, health, and safety: Motivation becomes important to sustain the number of
employees in the company. It is the job of the Human Resource department to look into the different
methods of motivating & encourage the employee. Apart from this certain health and safety regulations have
to be followed for the benefits of the employees.

9. Industrial relations: Another important area of Human Resource Management is maintaining co-ordinal
relations with the union members with employer-employee, employee- employee. This will help the
organization to coordinate with one another for smooth working.
Nature of HRM
1. Pervasive Force: Human Resource Management is an inherent part of an organization. It is pervasive in
nature and present in all enterprises at all levels of management. It is the responsibility of each manager
to select the right candidate under him and pay attention to the development and satisfaction of each sub-
ordinate.
2. People Oriented: Human Resource Management focuses on and values people at work both as
individuals and groups. It encourages people to develop their full potential and in return give the best to
the organization.
3. Action-Oriented: Human Resource Management does follow rules, records, and policies but it stresses
the action. The focus is on providing an effective and timely solution to employees for any problems,
tensions, or controversies faced by them.
4. Future-Oriented: To sustain and grow in this competitive environment organizations follow long term
strategic planning. Effective Human Resource Management prepares people for current as well as future
challenges, especially working in an environment characterized by dramatic changes.
5. Development Oriented: HRM continuously works towards the development of employees. There are
various tools used to make the employees reach their maximum potential. Training programs are held to
help employees enhance their skills and knowledge. Monetary and non-monetary reward structures are
tuned to motivate the employees.
6. Enhance Employee Relations: HRM helps to build a healthy relationship between the employees at
various levels. It encourages mentoring and counseling to help employees in times of need. It aims at
creating a culture in the organization that is conducive to learning and growth.
7. Interdisciplinary Function: The knowledge that has influenced Human Resource Management is
interdisciplinary in nature. It drives knowledge from five major bodies: education, system theory,
economics, psychology, and organizational behavior.

The Objectives of Human Resource Management

1. Societal Objectives: To be ethically and socially responsible to the needs and challenges of the while
minimizing the negative impact of such demands upon the organization. The failure of organizations to
use their resources for the society’s benefit in ethical ways may lead to restrictions. For example, the
society may limit HR decisions through laws that enforce reservation in hiring and laws that address
discrimination, safety or other such areas of societal concern.

 Employment opportunities multiply.

 Eliminating waste of human resources through conservation of physical and mental health.

 Scare talents are put to best use. Companies that pay and treat people well always race ahead of

others and deliver excellent results.

2. Organizational objectives: To recognize the role of HRM in bringing about organizational

effectiveness. HRM is not an end in itself. It is only a means to assist the organization with its primary
objectives. Simply stated, the department exists to serve the rest of the organization.

 Good human resource practice can help in attracting and retaining the best people in the

organization.

 Developing the necessary skills and right attitudes among the employees through training,

development, performance appraisal, etc.

 Securing willing cooperation of employees through motivation, participation, grievance handling,

etc.

 Effective utilization of available human resources.

 Ensuring that enterprise will have in future a team of competent and dedicated employees.

3. Functional Objectives: To maintain the department’s contribution at a level appropriate to the

organization’s needs. Resources are wasted when HRM is either more or less sophisticated to suit the
organization’s demand. The department’s level of service must be tailored to fit the organization it
serves. 

 To secure integration of individual and groups in securing organizational effectiveness.

 To create opportunities, to provide facilities, necessary motivation to individual and group for their

growth with the growth of the organization by training and development, compensation etc.

 To employ the skills and ability of the workforce efficiently, i.e., to utilize human resources

effectively.
  To increase to the fullest the employee’s job satisfaction and self-actualization; it tries to prompt

and stimulate every employee to realize his potential.

 To provide, create, utilize and motivate employees to accomplish organizational goals.    

4. Personal objectives: To assist an employee in achieving their personal goals, at least insofar as these
goals enhance the individual’s contribution to the organization. Personal objectives of employees must
be met if workers are to be maintained, retained and motivated. Otherwise, employee performance and
satisfaction may decline and employees may leave the organization.

 Developing people on continuous basis to meet challenge of their job.

 Promoting team-work and team-spirit among employees.

 Offering excellent growth opportunities to people who have the potential to rise.

 Providing environment and incentives for developing and utilizing creativity.

Functions of Human Resource Management:

Managerial Function Includes:

Planning
Organizing
Directing
Controlling

FUNCTIONS
OF
HUMAN
RESOURCE MANAGEMENT

Operative Function Includes:

Recruitment/Hiring
Job Analysis & Design
Performance Appraisal
Training & Development
Salary Administration
Employee Welfare
Maintenance
Labor Relations
Personal Research
Personal Record
Managerial Function Includes:

1. Planning: One of the primary functions where number & type of employees needed to accomplish
organizational goals is determined. Research forms core HRM planning which also helps management to
collect analyze and identify current plus future needs within the organization.

2. Organizing: Organization of the task is another important step. Task is allocated to every member as per
their skills and activities are integrated towards a common goal.

3. Directing: This includes activating employees at different levels and making them contribute maximum
towards organizational goal. Tapping maximum potentialities of an employee via constant motivation and
command is a prime focus.

4. Controlling: Post planning, organizing and directing, performance of an employee is checked, verified
and compared with goals. If actual performance is found deviated from the plan, control measures are taken.

Operative Function Includes:

1. Recruitment/Hiring: Hiring is a process which brings pool of prospective candidates who can help
organization achieve their goals and allows managements to select right candidates from the given pool.

2. Job Analysis & Design: Describing nature of the job like qualification, skill, work experience required
for specific job position is another important operative task. Whereas, job design includes outlining tasks,
duties and responsibilities into a single work unit to achieve certain goal.

3. Performance Appraisal: Checking and analyzing employee performance is another important function
that human resource management has to perform.

4. Training & Development: This function allows employees to acquire new skills and knowledge to
perform their job effectively. Training and development also prepares employees for higher level
responsibilities.

5. Salary Administration: Human Resource Department also determines pays for different job types and
includes compensations, incentives, bonus, benefits etc. related with a job function.

6. Employee Welfare: This function takes care of numerous services, benefits and facilities provided to an
employee for their well-being.

7. Maintenance: Minimizing employee turnover and sustaining best performing employees within the
organization is the key. Minimizing ROI within HR department is also a key goal for Human resource
management team.

8. Labor Relations: Labor relation is regards to the workforce who work within a trade union. Employees
in such domain form a union/group to voice their decisions affectively to the higher management.
9. Personal Research: Research is a vital part of human resource management. It is performed to keep a
check on employee opinion about wages, promotions, work condition, welfare activities, leadership,
employee satisfaction and other key issues.

10. Personal Record: This function involves recording, maintaining and retrieving employee related
information including employment history, work hours, earning history etc.

The Process of Human Resource Management

1. HR- Planning: Human resource planning is a process that identifies current and future human resources
needs for an organization to achieve its goals. Human resource planning should serve as a link between
human resource management and the overall strategic plan of an organization. Human resource
planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an
organization's most valuable asset—quality employees. Human resources planning ensures the best fit
between employees and jobs while avoiding manpower shortages or surpluses.

2. Recritment: Recruitment is a process of identifying, screening, shortlisting and hiring potential resource
for filling up the vacant positions in an organization. It is a core function of Human Resource
Management. Recruitment is the process of choosing the right person for the right position and at the
right time. Recruitment also refers to the process of attracting, selecting, and appointing potential
candidates to meet the organization’s resource requirements. The hiring of the candidates can be done
 internally i.e., within the organization, or from external sources. And the process should be performed
within a time constraint and it should be cost effective.

3. Selection: Selection is the process of picking or choosing the right candidate, who is most suitable for a
vacant job position in an organization. In others words, selection can also be explained as the process of
interviewing the candidates and evaluating their qualities, which are required for a specific job and then
choosing the suitable candidate for the position. The selection of a right applicant for a vacant position
will be an asset to the organization, which will be helping the organization in reaching its objectives.

4. Orientation: Employee orientation is the process of introducing new hires to their jobs, co-workers,
responsibilities, and workplace. It allows employees the chance to feel comfortable within their new
teams, departments, and roles within the company. Effective employee orientation answers any
questions or concerns a new colleague may have, makes them aware of company policies and
expectations, and eases them comfortably into their new positions.

5. Training and Development: Training and Development is one of the main functions of the human
resource management department. Training refers to a systematic setup where employees are instructed
and taught matters of technical knowledge related to their jobs. It focuses on teaching employees how to
use particular machines or how to do specific tasks to increase efficiency. Whereas, Development refers
 to the overall holistic and educational growth and maturity of people in managerial positions. The
process of development is in relation to insights, attitudes, adaptability, leadership and human relations.

6. Performance Appraisal: A performance appraisal is a regular review of an employee's job performance

and overall contribution to a company. Also known as an annual review, performance review or
evaluation, or employee appraisal, a performance appraisal evaluates an employee’s skills,
achievements, and growth--or lack thereof. Companies use performance appraisals to give employees
big-picture feedback on their work and to justify pay increases and bonuses, as well
as termination decisions. They can be conducted at any given time but tend to be annual, semi-annual, or
quarterly.

7. Compensation and Benefits: Compensation and benefits refer to the benefits a firm provides to its
employees in exchange for their labor. Compensation and benefits are thus a key part of Human
Resource Management. Compensation and benefits (C&B) is a sub-discipline of human resources,
focused on employee compensation and benefits policy-making. While compensation and benefits are
tangible, there are intangible rewards such as recognition, work-life and development. Combined, these
are referred to as total rewards.
8. Safety and Health: Occupational health and safety is a cross-disciplinary area concerned with
protecting the safety, health and welfare of people engaged in work or employment. The goal of all
occupational health and safety programs is to foster a safe work environment. As a secondary effect, it
may also protect co-workers, family members, employers, customers, suppliers, nearby communities,
and other members of the public who are impacted by the workplace environment. It may involve
interactions among many subject areas, including occupational medicine, occupational (or industrial)
hygiene, public health, safety engineering,chemistry, health physics.