Human Resource Management was originally known as personnel or people management.

In the past, its role was quite

limited. Within any company or organization, HRM is a formal way of managing people. It is a fundamental part of any
organization and its management.

The main responsibilities of the personnel department include hiring, evaluating, training, and compensation of
employees. The human resources department deals with any issues facing the staff in their working capacity within an
organization. HR is concerned with specific work practices and how they affect the organization’s performance.

Human Resource Management Definitions

There are many definitions of human resources management that authors have come up with to try and show the massive
importance of human resource management to an organization. Here are some human resource management definitions by
authors to iterate the importance of this department.

Ricky W. Griffin: “Human Resource Management is the set of organizational activities directed at attracting, developing
and maintaining an effective workforce.”

Mathis and Jackson: “HRM is the effective use of Human resources and organization through the management of people
related activities.”

Dale Yoder: “HRM is the provision of leadership and direction of people in their working or employment relationship.”

J. Jucious: “The field of HRM involves planning, organization, directing and controlling functions of procuring,
developing, maintaining and utilizing a labor force.”

NATURE OF HUMAN RESOURCE MANAGEMENT

The emergence of human resource management can be attributed to the writings of the human relationists who attached
great significance to the human factor. Lawrence Appley remarked, Management is personnel administration‖. This view is
partially true as management is concerned with the efficient and effective use of both human as well as non-human
resources. Thus human resource management is only a part of the management process. At the same time, it must be
recognised that human resource management is inherent in the process of management. This function is performed by all
the managers. A manager to get the best of his people, must undertake the basic responsibility of selecting people who
will work under him and to help develop, motivate and guide them. However, he can take the help of the specialised
services of the personnel department in discharging this responsibility.
The nature of the human resource management has been highlighted in its following features :

1. Inherent Part of Management: Human resource management is inherent in the process of management. This
function is performed by all the managers throughout the organisation rather that by the personnel
department only. If a manager is to get the best of his people, he must undertake the basic responsibility of
selecting people who will work under him.

2. Pervasive Function: Human Resource Management is a pervasive function of management. It is performed by

all managers at various levels in the organisation. It is not a responsibility that a manager can leave completely
 to someone else. However, he may secure advice and help in managing people from experts who have special
competence in personnel management and industrial relations.

3. Basic to all Functional Areas: Human Resource Management permeates all the functional area of
management such as production management, financial management, and marketing management. That is
every manager from top to bottom, working in any department has to perform the personnel functions.

4. People Centered: Human Resource Management is people centered and is relevant in all types of
organisations. It is concerned with all categories of personnel from top to the bottom of the organisation. The
broad classification of personnel in an industrial enterprise may be as follows : (i) Blue-collar workers (i.e. those
working on machines and engaged in loading, unloading etc.) and white-collar workers (i.e. clerical employees),
(ii) Managerial and non-managerial personnel, (iii) Professionals (such as Chartered Accountant, Company
Secretary, Lawyer, etc.) and non- professional personnel.

5. Personnel Activities or Functions: Human Resource Management involves several functions concerned with
the management of people at work. It includes manpower planning, employment, placement, training,
appraisal and compensation of employees. For the performance of these activities efficiently, a separate
department known as Personnel Department is created in most of the organisations.

6. Continuous Process: Human Resource Management is not a ‗one shot‘ function. It must be performed
continuously if the organisational objectives are to be achieved smoothly.

7. Based on Human Relations: Human Resource Management is concerned with the motivation of human
resources in the organisation. The human beings can‘t be dealt with like physical factors of production. Every
person has different needs, perceptions and expectations. The managers should give due attention to these
factors. They require human relations skills to deal with the people at work. Human relations skills are also
required in training performance appraisal, transfer and promotion of subordinates.

The Objectives of HRM

The objectives of HRM are the goals of an organization. Individual or group activities are then
organized in such a way so as to achieve those objectives or goals. Organizations and companies
aim to secure and manage certain resources, including human resources, to achieve the specified
goals.

Human resources must therefore be managed in a way that uses their resources to achieve the
organizational objectives/goals. Basically, the objectives of HRM come from and contribute to
achieving organizational objectives.

Objectives of HRM:
1. To establish and use a workforce that is able and motivated, in order to achieve the goals of an
organization.
2. To create the desirable organizational structure and working relationships among all the
members of the organization.
3. To integrate individuals and/or groups within the company by matching their goals with those
of the company.
4. To ensure individuals and groups have the right opportunities to develop and grow with the
organization.
5. To use what human resources a company has in the most effective way to achieve
organizational goals.
6. To ensure wages are fair and adequate and provide incentives and benefits thereby satisfying
both individuals and groups. Also, to ensure ways of allowing recognition for challenging work,
prestige, security and status.
7. To have continual high employee morale and good human relations by establishing and
improving conditions and facilities within the organization.
 8. To improve the human assets by providing appropriate training programs on a continual basis.
9. To try to effect socio-economic change in areas such as unemployment, under-employment
and inequality by distributing income and wealth. This way society can benefit. Added employment
opportunities for women and the disadvantaged will also be impacted in a positive way.
10. To offer opportunities for expression.
11. To ensure that the organizational leadership works in a fair, acceptable and efficient manner.
12. To ensure a good working atmosphere and employment stability by having proper facilities and
working conditions.

Functions of Human Resource Management (HRM)

Human resource management must plan, develop, and administer policies and programs that can make the
best use of an organization’s human resources. This is the part of management’s role which deals with people
at work and their relationships within the organization. Its aims are:

1. To use human resources as effectively as possible;

2. To ensure the best possible working relationships among all members of the organization; and
3. To assist individuals to reach their highest potential.

In Human Resource Management, there are four major areas:

1. Planning
2. Staffing
3. Employee development, and
4. Employee maintenance.

These four areas and any associated functions share a common aim. That is to have enough competent
employees with the skills, abilities, knowledge, and experience needed to achieve further organizational
objectives. Each human resource function (above) can be appointed to one of the four areas of personnel
responsibility but there are also other functions that are designed for different purposes. For example,
performance evaluation processes provide a stimulus and guide employee development. They are valuable for
salary administration purposes also. The purpose of the compensation function is as a stimulus to keep
valuable employees and also to attract potential employees. Below is a description of the typical human
resource functions

Why Human Resources Management Is Important For Every Organization?

 Human resources management is a very important function in every organization. Without human
resources management, companies would not be able to effectively recruit and retain employees,
improve and enhance the organization, and they wouldn’t be able to maintain a healthy, accepting
workplace culture and environment. Human resources management is so important to organizations that
many call this department the heart and soul of a business.

10 Major Future Challenges Before HR Managers.

Engaging the Workforce
This is an exciting time for businesses in India; the country is witnessing a steady growth of its GDP. But with
this comes the responsibility of creating an engaging and enthusiastic workforce to continue this
growth.However, business challenges in human resources management (HRM) still need to be addressed. To
overcome them, employers need to implement effective HR policies and practices. This includes hiring and
developing talent, creating an employee-friendly environment, employee engagement, employee retention, etc.
Contact a specialist to learn more about how HR can help your business grow.
Attracting Talent to the Enterprise
- India is a country of great talent. It houses a large number of talented individuals and professionals.
- This makes it imperative that companies develop an employee retention strategy that utilizes these resources
effectively.
- To do so, organizations must invest in employee development programs and create an employee
engagement culture.
- Another challenge that organizations face is employee mobility. With high employee turnover rates, employee
retention becomes even more critical.
- The demand for skilled employees has also increased the shortage of qualified professionals.
- To overcome these challenges, organizations must invest in talent development programs and create an
effective human resource system.
- Besides, human resource professionals in India must be able to work effectively with employees from
different cultures and languages.

Training and Development Strategies

Employers in India are always looking for creative and innovative training and development strategies.
To create customized training programs, employers can offer on-the-job training to employees. This helps
employees learn new skills quickly and allows them to develop their professional skills hands-only. Employees
can also participate in workshops and seminars to gain additional professional knowledge.
Employers can also customize employee development programs based on employee interests and goals. The
human resource department can develop recruiting strategies with human resource consultants.
These strategies can include job fairs, social media campaigns, and word-of-mouth referrals. By incorporating
various training and development techniques into their employee management practices, employers can create
an employee experience that is beneficial, engaging, and fulfilling.

Managing Relationships
In today's business environment, employee engagement and retention are increasingly becoming the key
focus areas of most organizations. A well-functioning human resource department is of paramount importance
to achieve this. To ensure that the department runs smoothly, it is essential to have clear-cut HR policies and
procedures in place, as well as employee roles assigned to the right individuals.
Several practices can be adopted to improve employee morale and work performance. Start with employee
performance reviews that can help managers identify employees' strengths and weaknesses and provide them
with feedback on their performance. As per employee records management practices, employee information
should be maintained systematically to help track employee development and retention. Furthermore,
harassment prevention practices are essential as they help ensure fair treatment for all employees.

Employee Health and Well-Being

With employee health and well-being being such an important issue, it is vital to understand your legal
obligations to employee health and safety. Regarding health and safety at work, you must have a sound HR
policy that reflects your company's values. This will help guide employees on the proper practices and ensure
all workforce members are safe and healthy. You can also provide employees with adequate training and
awareness programs on health and safety issues.
This way, everyone will know the best practices and understand how to keep themselves and others safe from
harm. Finally, you should establish clear lines of communication with employees, so they know what is
expected of them regarding health and safety.

Embrace Inevitable Change

In India, the workforce is becoming more diverse and complex. With the growing force, there is a need for
updated HR policies and procedures to meet the challenges of the modern workplace. Employee engagement
and retention are vital priorities for HR professionals. As employee engagement increases, employee retention
becomes more important.
It's essential to have an effective HR strategy to manage change effectively. Embrace inevitable change and
focus on employee development and experience as critical organizational performance factors.
Consider hiring employees with varied skill sets. This will help you build a dynamic workforce capable of
handling various work environment challenges. Also, ensure that employee engagement is high among your
crew and that a healthy work culture is created.

Talent Retention
The business environment in India is dynamic and complex. With an increasing workforce, challenges such as
talent retention are prominent. To tackle this, businesses must first understand the challenges that they face.
Organizations must create a thriving work environment that motivates employees to perform at their best. Also,
they must implement employee retention strategies to keep their best employees. These strategies should
include employee morale and turnover management programs.
These programs should focus on employee engagement and development. The other important element of
employee retention is employee training. This can help employees improve their skills and performance. By
investing in employee development, businesses can create a culture of employee engagement and retention.

Diversity in the Workplace

According to a report by Infosys, the Indian workforce is diverse and includes people from various cultural
backgrounds. The challenge for HR departments is creating an inclusive and welcoming environment for all
employees. This requires creating a system that recognizes and rewards employee performance. However, it
can be difficult for leaders in the workforce to embrace formal HR processes. There is a need for training on
diversity and inclusion in the workplace to help employees understand and embrace these challenges.
Building a winning culture
A winning culture in the workplace is characterized, above all, by an inclusive and respectful environment that
fosters collaboration and encourages people to feel valued and able to contribute their best work. A diverse
workforce allows different perspectives and ideas to be heard and debated.
To create a thriving work environment, managers and human resources professionals must work
collaboratively with line managers to create an inclusive culture. Besides, training programs can help
employees learn teambuilding skills, work-related communication skills, and professional development skills.
These efforts help foster a positive work culture that benefits everyone involved.
Diversity, equity, and inclusion
Diversity in the workplace is vital for creativity, innovation, and productivity. So encouraging diversity can be
challenging but can be overcome with adequate human resources strategies. For example, hiring practices
should be fair and inclusive without being discriminatory. Additionally, promoting a diverse workforce can be
achieved through recruiting practices that ensure all candidates are considered for open positions.
To promote diversity, employers must be aware of legal requirements related to diversity and equity. This
includes policies that promote inclusion, such as recruiting practices that consider all candidates for open
positions. Plus, managers and employees must understand the benefits of diversity and work towards creating
an inclusive environment at work.

Adapting to remote work

Remote work allows workers to enjoy the flexibility and freedom of working from anywhere in the world.
However, it can present challenges that must be addressed. Adapting to remote work requires careful planning
and preparation.
Some challenges remote workers face include ensuring efficient communication, management, and
collaboration between team members from various locations. Resources are available to help employees
adjust to a remote work environment, including company policy documents, employee resource groups, and
professional development programs.
HR professionals should be prepared to ensure employees have the support they need to succeed in a remote
work environment.

Building digital dexterity

Diversity in the workplace can help employees feel more comfortable and productive. It can also lead to
creativity and innovation, as different perspectives and skills are valued. By engaging with different
professional backgrounds and challenges, employees can grow and learn how to work better together.
When hiring for a company, looking for employees with various digital skills, such as proficiency in social
media, email, or other digital tools, is essential. Such employees are always in high demand today. They must
continuously learn new software and tools to stay up-to-date with the latest techniques and best practices.
Employees must learn new software and tools quickly to work effectively within a team or project. Employees
can contribute their best work and significantly impact the organization by having diverse skills.

Compensation and benefits

Compensation and benefits are critical components of a successful human resources (HR) program.
Employees must receive compensation and benefits that allow them to perform their job effectively and
comfortably. A well-designed benefits package can provide employees with the health, retirement, and other
financial security they need. Additionally, it can help attract and retain talented employees.
HR professionals must work closely with the human resources department. They should ensure that all
aspects of compensation and benefits are addressed consistently across the organization. This will help
organizations attract and retain talented individuals while ensuring they are compensated fairly for their work.
Adapting To A Hybrid Work Model
The workforce of India is changing rapidly. Employers need help to keep pace. The current workforce is
increasingly taking up remote and telework as a way of working, with benefits such as increased engagement,
flexibility, and job satisfaction. Employers are adopting a hybrid work model, combining traditional work
environments with nontraditional work modes. This has resulted in employees balancing their professional and
personal lives more quickly.
Human resource departments must adopt policies and practices to accommodate the changing workforce. HR
departments must develop an understanding of remote work and telecommuting. They must also train
employees to deal with changes in the working environment. Doing so will help employees remain productive
and satisfied with their jobs.

Conclusion
Undoubtedly, the challenges have only multiplied in the workforce management field. However, plenty of
talented human resources professionals are up for the job. It all boils down to embracing change and making it
work for you by aligning your business practices with the changing landscape.
As mentioned earlier, talent retention is a problem across the board. Implementing remote work strategies like
flexible working hours, employee-matching systems, and on-demand training programs can help retain talent
while adapting to an evolving workforce environment.
This can be supported by building a winning culture and creating an inclusive environment for all work team
members. Here's a blog on building a culture that wins.

Chapter 2
Need for Human Resource Planning
Following are the major reasons for the need for human resource planning for an organization:

 Employment-Unemployment Situation
 Technological Change
 Demographic Change
 Skill Shortage
 Governmental Influences
 Legislative Control
 Impact of the Pressure Group
 Systems Approach
 Lead Time

Why Is Human Resource Planning Important?

 Human resource planning (HRP) allows a business to better maintain and target the right kind of talent
to employ—having the right technical and soft skills to optimize their function within the company. It also
allows managers to better train the workforce and help them develop the required skills.
Objectives of Human Resource Planning

Everything you need to know about the objectives of human resource planning. Human resource planning
comprises putting the right number and kind of people at the right place, at the right time, and making them
do things for which they are suited, to achieve business goals.
In the era of industrialization, structured HR planning has become a really important aspect. It is carr ied out
in a particular sequence of steps which begins with analysing the current inventory of manpower available.
The managers need to suitably make plans for future requirements, by forecasting along with developing
employment and training programmes.
According to Coleman, “Human resource planning is the process of determining manpower requirements
and the means for meeting those requirements in order to carry out the integrated plan of the organisation.”

Steps in Human Resource Planning (explained with diagram)!

Human resource planning is a process through which the right candidate for the right job is ensured. For
conducting any process, the foremost essential task is to develop the organizational objective to be
achieved through conducting the said process.
1. Analysing Organizational Objectives:
The objective to be achieved in future in various fields such as production, marketing, finance, expansion
and sales gives the idea about the work to be done in the organization.
2. Inventory of Present Human Resources:
From the updated human resource information storage sys-tem, the current number of employees, their
capacity, perfor-mance and potential can be analysed. To fill the various job requirements, the internal
sources (i.e., employees from within the organization) and external sources (i.e., candidates from various
placement agencies) can be estimated.
3. Forecasting Demand and Supply of Human Resource:
The human resources required at different positions according to their job profile are to be estima ted. The
available internal and external sources to fulfill those requirements are also measured. There should be
proper matching of job description and job specification of one particular work, and the pro-file of the
person should be suitable to it.
4. Estimating Manpower Gaps:
Comparison of human resource demand and human resource supply will provide with the surplus or deficit
of human resource. Deficit represents the number of people to be employed, whereas surplus represents
termination. Extensive use of proper training and development programme can be done to upgrade the
skills of employees.
5. Formulating the Human Resource Action Plan:
The human resource plan depends on whether there is deficit or surplus in the organization. Accord-ingly,
the plan may be finalized either for new recruitment, training, interdepartmental transfer in case of deficit of
termination, or voluntary retirement schemes and redeployment in case of surplus.
6. Monitoring, Control and Feedback:
It mainly involves implementation of the human resource action plan. Human resources are allocated
according to the requirements, and inventories are updated over a period. The plan is monitored strictly to
identify the deficiencies and remove it. Comparison between the human resource plan and its actual
implementation is done to ensure the appropriate action and the availability of the required number of
employees for various jobs.
Types Of HR Planning
There are several types of human resource planning that organizations may engage in. They’re not
mutually exclusive. Here’s a closer look:
Strategic
If An Organization Wants To Increase Its Reach Either In The Form Of New Markets Or Products, It’ll Need
To Enhance Its Workforce. Based On These Plans, HR Planners Work Cross-Functionally To Recruit The
Best Minds For Marketing, Selling, Business Development, Or Customer Service Jobs.
Efficiency
One Of The Core Human Resource Planning Objectives, This Helps Streamline Business Operations For
Better Profitability. The Key To Improving The Efficiency Of An Organization Is To Find Areas Where Costs
Can Be Reduced, Productivity Can Be Improved And Quality Can Be Enhanced.
Talent Management
The Importance Of Human Resource Planning Is That It Helps Build A Pool Of Talent Capable Of Meeting
Business Objectives, Increasing Its Competitiveness. The Focus Is On Developing Talent To Ensure The
Business Is Successful In The Long Term.
Workforce Planning
The Human Resource Planning Objectives Are To Optimize Workforce Levels, Keeping Them In The Right
Place At The Right Time. It Can Also Help Improve Workforce Demographics Which Can Impact Your
Business Strategy In The Future.
Change Management
The Need For Human Resource Planning Also Arises From Organizational Changes. A Change In Market
Conditions Or A New Product Or Service May Require A Restructuring Of The Workforce’s Needs And
Capabilities. Sometimes It May Be Necessary To Make Personnel Changes Required By A Reorganization,
A Limited-Time Initiative Or Even Unrest In The Workforce.
These human resource planning objectives account for the various needs organizations might have from
their HR policy. Several types of human resource planning are required to ensure that the future workforce
and its capabilities are compatible with the business strategy.

Corporate planning
 is setting long-term objectives and goals within the organization's scope to enable an environment
conducive to growth in terms of revenue and profit margins. It includes defining strategies, decision -
making, and allocating resources.

Human Resource Planning (HRP) LH 5

 Concept, HRP process, Strategic planning and HR planning, Need of human resource
planning,Human resource information system, Techniques of forecasting HR demand and supply,
Strategic directions in human resource planning, HRP practices in Nepalese organizations.
Five Planning Steps Every Organization Should Use
 Analysis of Organizational Plans and Objectives.
 Preparing a Human Resources Inventory.
 Assessing Future Supply and Demand.
 Matching Supply and Demand.
 Establishing an Action Plan.
Human Resource Information System

 A human resources management system (HRMS) or Human Resources Information

System (HRIS) or Human Capital Management (HCM) is a form of Human Resources
(HR) software that combines a number of systems and processes to ensure the easy
management of human resources, business processes and data. Human resources
software is used by businesses to combine a number of necessary HR functions,
such as storing employee data, managing payroll, recruitment, benefits administration
(total rewards), time and attendance, employee performance management, and
tracking competency and training records.

Current Interest in HR Planning

 Interest in human resources planning is increasing because the organization's size is

continually increasing. Staffing planning helps the company have the workforce it needs
to achieve its objectives and use its human resources to optimize employee satisfaction.

What are your interest in HR?

 As an HR professional, I enjoy being able to help people fulfill their potential by hiring
the right people and then helping them thrive in their jobs. HR allows me to express my
personality every day. I love the day-to-day tasks we engage in and helping to solve the
problems that may arise.

The main responsibilities of a human resource manager are:

– To fully develop knowledge of corporate culture, plans and policies.
– To initiate change where necessary and act as a facilitator.
– To actively participate in formulating company strategy.
– To be a consultant to change.
– To ensure communication remains open between the HR department and individuals and groups
inside and outside the organization.
– To identify and advance HR strategies that match the company’s business strategy.
– To develop particular organizational teams and assist in the effective working relationships between
the teams and individuals.