Human Resource

Management
Unit 1

Human Resource
Management
Human resource management
means management of people at
work.
HRM is the process which binds
people with organizations and helps
both people and organization to
achieve each others goal.
Various policies, processes and
practices are designed to help both
employees and organizations to

 Human resource management is branch of

management that deals with people at work,
it is concerned with the human dimensions of
management of the organization.
As organization consists of people, therefore
acquiring them, developing their skills,
providing them motivation in order to attain
higher goal and ensuring that the level of
commitment is maintained are the important
activities.

 Human resource constitutes of all the management

decisions responsible for relationship between organization
and employees.
HRM is the field of management which plans, organizes,
controls the functions of procurement, development,
maintenance and utilization of the work force so that
Organization goals can be accomplished.
Objectives of human resources can be accomplished
Objectives of society can be accomplished.

The planning,
organizing,
directing and
controlling of the procurement,
development,
compensation,
integration,
maintenance and reproduction of human resources to the end that
individual, organizational and societal objectives are accomplished"

Human resource management can be concluded as a business oriented

philosophy concerned with the management of people in order to
obtain added value from them and achieve competitive advantage.

 Human resourcemanagement was previously

known as personnel management which was
concerned with theactivitiesof a single
department.
It was typically concerned with the administration
of human. The functions carried out by the
department were
recruitmentand selection,
reward, appraisal,
development,
grievance handling,
retirement registrationand so forth.
It was introduced and developed in the
bureaucratic set up in which importancewas given
on organization and administration of manpower.

 It is one of the main functions of management,

which is related with the management of human
energies and competencies.
Human resourcemanagement helps to ensure
the right man, for the right position and at the
right time in a changing environment.
The organizational performancedepends onthe
efficiency ofhuman resourceworking in the
organization.
Hence, a proper set up should be taken for
manpower planning,recruitment, motivation,
training
and
development,
performanceevaluation,
remuneration
management and industrialrelation.

 Moreover,human resourcemanagement is
concerned withthe developmentof human
skill, knowledge and ability to perform the
organizational tasks effectively and efficiently.
It is a field of study consisting of four functions acquisition,
development,
motivation and maintenance of human
resources.
The acquisition is related with getting people,
development is with preparing them for work,
motivation refers to activating them and finally
maintenance refers to keeping them retained in
the organization.

 Human Resource Management (HRM) is all about balancing

the organizations people and processes to best achieve
the goals and the strategies of the organization, as well as
the goals and the needs of employees. The main role an HR
manager has to fulfill is integrating business operations
and strategies across a wide array of culture, products, and
ideas, while effectively delegating work among human
resource specialists and line management.
Apart from being concerned with local issues of employees,
HR must also consider thesefive basic functionsand
effects of workforce diversity, legal restriction, performance
management, training and professional development of the
organization.

 1. Recruitment
A great deal of attention and resources is required to attract, hire and retain an
experienced, committed and well-motivated workforce. This is perhaps one of the
most basic HR functions. There are several elements to this task such as
developing a job description, advertising the job postings, screening applicants,
conducting interviews, making offers and negotiating salaries and benefits.
Companies that value their people put a serious amount of investment in
recruiting and staffing services.
As the right set of talented employees can not only raise the companies profile
but also help it achieve profitability and keep it running effectively and
successfully.
2. Training and Development
The HR department is responsible for providing on-the-job as well as refresher
training for all employees (newly hired and existing) alike. This is the second
most important function and lack of training opportunities only increases
frustration levels among employees. So, training systems must be streamlined
across all locations in order to make communication and sharing of resources a
convenient task. Measurement and monitoring is another vital aspect of training
in order to foster adoption of their new skills.

 3. Professional Development
Effective HR departments allow and
encourage the employees with
opportunities for growth,leadership training
and education, which in turn contribute to
the success of the company. Sponsoring for
career advancement seminars, training,
corporate social responsibilities and trade
shows will make employees feel important
and cared for by the team and organization.

 4. Benefits and Compensation

A company is more likely to be successful, if itadapts new
ways ofproviding benefitsto employees. Some nontraditional benefits that can attract and retain new skilled
employees are:
Flexible working hours or workdays,
Extended vacation time,
Paternity leave or childcare
Medical/dental insurance,
Corporate gym membership discounts
Continuing education/skills development
Award & recognition programs

 5. Ensuring Legal Compliance

Compliance with labor, tax and employment laws is a
vital part of safeguarding the organizations continued
existence.
HR has to be aware of all the mandate laws and
policies regarding
employment practices,
working conditions,
tax allowances,
required working hours,
overtime,
break times,
minimum wage, and discrimination policies as
noncompliance can affect productivity and ultimately,
profitability of the company.

Human Resource Management:

Evolution

The early part of the century saw a concern for
improved efficiency through careful design of work.
During the middle part of the century emphasis
shifted to the employees productivity.
Recent decades have focused on increased
concern for the quality of working life, total quality
management and workers participation in
management. These three phases may be termed
as welfare, development and empowerment.

Human Resource Management:

Nature

Human Resource Management is a process of bringing people and

organizations together so that the goals of each are met. The various
features of HRM include:
It is pervasive in nature as it is present in all enterprises.
Its focus is on results rather than on rules.
It tries to help employees develop their potential fully.
It encourages employees to give their best to the organization.
It is all about people at work, both as individuals and groups.
It tries to put people on assigned jobs in order to produce good
results.
It helps an organization meet its goals in the future by providing for
competent and well-motivated employees.
It tries to build and maintain cordial relations between people
working at various levels in the organization.
It is a multidisciplinary activity, utilizing knowledge and inputs drawn

Human Resource Management:

Scope

The scope of HRM is very wide:

1. Personnel aspect-This is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, training and
development, layoff and retrenchment, remuneration, incentives,
productivity etc.
2. Welfare aspect-It deals with working conditions and amenities
such as canteens, creches, rest and lunch rooms, housing,
transport, medical assistance, education, healthand safety,
recreation facilities, etc.
3. Industrial relations aspect-This covers union-management
relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc. - See more at:
http://www.hr.com/en/app/blog/2012/10/human-resourcemanagement---nature-scopeobjective_h86amp3f.html#sthash.8G0WTJNB.dpuf

Human Resource Management:

Objectives
To help the organization reach its goals.
To ensure effective utilization and maximum
development of human resources.
To ensure respect for human beings. To identify and
satisfy the needs of individuals.
To ensure reconciliation of individual goals with those of
the organization.
To achieve and maintain high morale among employees.
To provide the organization with well-trained and wellmotivated employees.
To increase to the fullest the employees job satisfaction
and self-actualization.

 To develop and maintain a quality of

work life.
To be ethically and socially responsive
to the needs of society.
To develop overall personality of each
employee in its multidimensional
aspect.
To enhance employees capabilities to
perform the present job.
To equip the employees with precision
and clarity in transaction of business.
To inculcate the sense of team spirit,
team work and inter-team collaboration

COMPETITIVE CHALLENGES OF HUMAN

RESOURCE MANAGEMENT
( HRM )

 While the global economy has

presented
unprecedented
opportunities, it has also presented
many new challenges to the Human
Resource department.
In a global, complex, dynamic,
highly competitive and extremely
volatile
environmentmost
organizations are facing several
global challenges related to:

1. Workforce Diversity
1. Workforce diversity: Formultinational companies who have
operations on a global scale and employ people of different
countries, ethical and cultural backgrounds, it is extremely
essential to manage workforce diversity effectively.
. The challenge for Organizations is to capitalize on the
diverse body of talent and transform it into an asset. People
coming from diverse cultural backgrounds, gender, age,
language, ethnicity, lifestyle can bring in innovative ideas
and perspectives to the Business.
. The goal is to develop effective working relationships with
people from diverse backgrounds at work. Organizations
shouldidentify andovercomethe barriers that have inhibited
the employment, retention, development and promotion of
diverse groups in the workplace.

2. Technology
Technology changes the way businesses operate.
Technological advances often create employee resistance
because new technology frequently benefits some
employees while leaving others behind.
This is because technological advances reduces the
number of jobs that require little skill and increases the
number of jobs that require considerable skills.
This means displacement of some employees and
retraining for others. In addition, information technology
has influenced HRM through human resource information
system ( HRIS) that helps in the processing of data and
making employee information more readily available to
the employees.

3. Training
HRM is confronted with dynamic changes in
approaches and methodologies in training and
development.
In the global scenario, training has taken a new
connotation. It is more than identifying the training
needs and giving the appropriate training.
It is foreseeing and anticipating the
requirementsand develop suitable training so that
the employees are well equipped to handle the
challenges beforehand.
Companies have to invest in training delivery
methods that facilitate digital collaboration.

4. Worker productivity:
Increasing worker productivitythrough HR
programme, policies and techniques remains a
challenge.
Progressive and innovative managers now achieve
productivity gains with human resource
management techniques that go beyond pay
incentives.
Increased worker motivation and satisfaction can
increase worker productivity.
This can be achieved by introducing quality of work
life concepts and by tailoring benefits to meet the
needs of employees.

5. Quality improvement
ImplementingTQM was earlier the sole
responsibility of specialists. However, today
making quality improvementsacross the entire
firm can be an important function of the HRM
department.
If the HRM department fails to recognize and act
on this opportunity ,it may result in the loss of
TQM responsibilities o other departments with
less expertise in training and development.

The ultimate result would be an

ineffective TQM strategy. Thus, it is
essential for HRM to act as a pivotal
change agent necessary for the
successful implementation of TQM.
The HR department needs to
develop and deliver the long term
training
and
development
necessary
for
the
major
organizational culture shift required
by TQM.

6. Retention
Key employee retention is critical to the long term
health and success of an organization.
Many Organizations fail to identify the intrinsic
motivators for employees, thus failing to attract
them.
It is therefore, important for organizationsto plan
and implement new approaches and employee
retention plans to retain the most effective
manpower.
It is also essential to have a valuing and positive
attitude towards employees. Retention requires
competitive salary and great benefits.

7. Outsourcing
Organizations, both big and small are
realizing that outsourcing is a key to bring
down costs and add value to the business.
It allows businesses to focus on its core
competencies and thereby identify new
areas for growth.
Organizations that can manage diversity
bettertend to be more flexible and are
more open-minded.

8. Talent management

Managing talent has become a critical human resource

challenge. Organizations in both developed and developing
economies are facing increased competition for high
performers.
In order to address this challenge, companies have to boost
global sourcing of staff.
Talent management challenges relate to talent flow, managing
two generations of employees i.e. the older or mature workers
and younger workers; and a shortage of needed competencies.
The ability to attract, develop and retaina needed supply
ofcritical talent is a challenge facing all organizations.
Managing global talent and maximizing the talent of individual
employees can create a unique source of competitive
advantage.

9. Balancing work life

Work life balance has become a predominant
issue in the workplace.
Employers need to understand that achieving a
balance can lead to great results with a well
motivated workforce deliveringquality services.
Employees are now making job choices based on
flexible working hours and emotional
gratification.
The responsibility is on employers to think
creatively about how it can be best used to
benefit both the staff and the organization.

10.Globalization
Globalization has an impact on the number and kinds of jobs that
are available in the economy. In this scenario it is important for
Organizations to address issues related to managing people in
different geographies, cultures, legal environment, and business
conditions.
HR functions such as selection, recruitment, compensation ,
training and the like have to be adjusted to take into account the
differences in global management.
Due to globalization HR managers have an opportunity to recruit
employees from around the world and they also the responsibility
to ensure an appropriate mix of employees in terms of knowledge,
skills and culture.
Globalization poses challenges in terms of workforce diversity,
managing outsourcing and downsizing of employees, managing
productivity, quality, and flexible working hours.

11.Organizational
restructuring
Organizational restructuring: In order to become more
competitive, a growing number of organizations are going for
restructuring like mergers and acquisitions, closing facilities
etc.
The focus has been to flatten organizations by removing
several layers of managementand to improve productivity,
quality and service while also reducing costs.
As a result jobs are being redesigned and employees affected.
One of the challenges that HRM faces here is dealing with the
human consequences of change.
Change appears threatening to many people, which makes it
difficult to gain their support and commitment to implementing
changes. However, there are a number of steps managers can
take to overcome resistance to change like education and
effective communication.

http://www.slideshare.net/bhasinneh
a/competitive-challenges-to-hrm

Moonlighting by
Employees
This is a situation, which arises among employees
on account of dissatisfaction from present wage &
salary structure.
They feel that employer enjoys the increased profit
and that they are being exploited by the employer.
Consequently they agitate for hike in wages or take
up another part-time job or business
simultaneously with that of the original job. This is
also known as Double Jobbing.
Moonlighting by employees affects almost all the
functions of Human Resource Management.

 The effects of Moonlighting would be mostly

negative & it poses challenges to the
personnel manager.
Presently very limited number of employees
does moonlighting, but the number of
employees will go on increasing due to
change in employee values & expectations.
Management will have to take all possible
care in selection process about the
possibility of moonlighting by the
prospective candidates.