Overview of HRM

1. Define HRM.
HRM can be defined as the management of all activities and functions
related to mobilizing and developing employees with an objective to
achieve the organizational goals. In other words, from the time
employees join an organization, till the time they leave it, all the
activities related to employees’ mobilization and development, i.e.,
recruitment, compensation, training, separation, all come under the
purview of HRM.

2. What is the objective of HRM in an organization?

Objectives mean a set of end results that one wishes to achieve in
future. In an organizational context, objectives are a set of pre-defined
results that can be achieved with the efficient utilization of available
pool of human resource. The basic objective of HRM is to ensure that
employees work positively towards the realization of organizational
objectives. The ultimate success of an organization depends on the
accomplishment of its basic objective.

3. Write a short note on the scope of HRM.

The focus of HRM has shifted from one-way communication and
autocratic leadership to two-way communication, participative
leadership, open expression of ideas, and management by objectives.
We have discussed the emergence of HRM from PM, which is nevessary
to understand the scope of HRM. The scope of HRM defines the extent
of HRM in an organization and the activities included in it.

The scope of HRM is very wide and expanding continuously with the
advent of new trends in industrial practices. Indian Institute of Personnel
Management has laid down the scope of HRM. According to IIPM,
“HRM mainly deals with the personnel, welfare of the personnel, and
industrial relations aspects of an organization”. The following points
explain the scope of HRM.
  Welfare Aspect – Refers to the work environment and
facilities, such as canteens, crèches, housing, health care
centers, rest rooms, and schools. HRM not only provides
these and many other recreational facilities, but also takes
care of the problems and grievances of employees.
 Labor or Personnel Aspect – Refers to the recruitment,
placement, compensation, promotions, transfer, incentive,
and training and development of the employees. HRM
ensures that all these activities are performed in a desired
and effective manner.
 Industrial Relations Aspect – Deals with the settlement of
industrial disputes by negotiating with trade unions. HRM
also maintains and manages industrial relations of
employees or other organizations to maintain peace and
harmony.

4. Are HRM & Personnel Management synonymous terms?

The term HRM is a newly emerged concept and initially, Personnel
Management was used in place of HRM. However, the scope of HRM is
much wider than PM. The differences between HRM and PM are shown
in the following points.
 Personnel Management is task-oriented and managerial in
nature; whereas HRM is people-oriented and concerned
with people and team building.
 Personnel Management deals with the formulation and
administration of employee-related plans and policies;
whereas HRM is primarily concerned with the contribution
of employees at work as well as their personal needs and
professional growth.

5. Briefly discuss the managerial functions of HRM in an organization.

The managerial functions of HRM can be listed as follows:

  Planning – Determines a course of action to achieve the
organizational objectives. For a human resource manager,
planning involves activities, such as deciding the quantum
of workforce required, formulating plans to fill job vacancies
and fulfill job requirements, and preparing job descriptions
and specifications.
 Organizing – Refers to developing an organizational
structure, allocating duties, and responsibilities, and
delegating authority to individuals as and when required.
 Staffing – Refers to filling up the existing and anticipated
vacancies with the right quality of people in right number
and at the right time.
 Directing – Refers to implementing the plans that have
already been formulated. A human resource manager
supervises, directs, guides, and motivates the employees of
the organization to work effectively towards the
achievement of organizational objectives.
 Controlling – Refers to keeping a check on whether the
plans have been materialized as stated or not. If the plans
are not materialized then the human resource department
needs to identify the deviations and take corrective
measures to remove them. Controlling helps a human
resource manager to evaluate and control the performance
of his/her department.

6. What are the limitations of HRM?

HRM is a complex discipline since managing human resource involves
moulding the inherent behaviour and attitude of employees for the
benefit of the organization. There are various factors that reduce the
efficiency of HRM in an organization. These factors are mentioned in the
following points.
 Managing and maintaining human resource is a tedious task
as each individual is different from the other.
 Integrating individual goals with the organizational goals is
not always practically possible.
  Functioning of HRM has become more complex with
globalization and liberalization, as employees demand more
challenging work, incentives, and freedom.
 Drawing the concepts and principles of HRM from
Hawthorne studies, rather than from scientific evidence and
the experiments that were focused on the employees at
operational level only.

7. List down the operative functions of HRM.

Operative functions are specifically related to the human resource
department. These functions are mentioned in the following points:

 Human Resources Planning: Maintains an adequate pool of

talented workforce at all times with the skills relevant to the
business needs. An organization should neither be
overstaffed nor understaffed.
 Recruitment and Selection: Searches suitable candidates
and invites applications for the anticipated vacancies.
Methods and sources of recruitment should be carefully
selected. Selection involves opting the best candidate out of
those who have applied for the job.
 Placement and Induction: Refers to placing candidates in
the right type of jobs by matching their skill requirements
with the requirements of the jobs. Induction is a formal
orientation of employees on their jobs to familiarize them
with the work culture, colleagues, and overall work
environment of the organization.
 Training and Development: Refers to providing employees
with relevant training as per their job requirements. It
bridges the gap between what an employee has and what
the job demands.
 Compensation: Refers to remunerating the employees for
their services. It includes both the base compensation that
is wages and salaries and supplementary compensation that
is perquisites. The human resource department should take
 proper care while formulating the wage and salary structure
as it helps in motivating the employees.
 Performance Appraisal: Evaluates the employees based on
their performance on the job. The results of performance
appraisal are used for identifying training and development
needs and taking decisions regarding promotions, transfers,
and demotions of employees.
 Health and Safety: Refers to providing clean and safe
working conditions to the employees so that they like their
workplace and maintain their efficiency. The human
resource department also provides various welfare services,
such as provision of cafeteria, group insurance, and
recreational facilities.
 Motivation of Workforce: Refers to inspiring employees to
contribute productively towards the goals of the
organization. Therefore, a human resource manager should
identify the needs and desires of employees and motivate
them accordingly.
 Redressal of Grievances: Refers to addressing the problems
and grievances of employees. It helps in maintain peace and
harmony in the organization.
 Separation: Refers to conducting the exit interviews with
the employees leaving an organization. This helps in
identifying the reasons for which the employees leave the
organization. This further helps the organization to take the
corrective measures, if required, to decrease the turnover
ratio. A human resource manager should also ensure that
the employees leaving or retiring from the organization get
their reliving benefits on time.

8. What are the Indian Government Policies and regulations that

influence HRM?
The government has enacted several policies and regulations that
influence HRM. These laws are as follows:
  Minimum Wages Act
 Equal pay for equal work
 Fixation of number of working hours
 Factories Act
 Employees’ State Insurance Act

9. What are the features of HRM?

The following points explain the features of HRM.

 Procurement and development of Human Resource:

It helps in procuring the right quality and quantity of human

resource for an organization. Moreover, it seeks to develop
employees by realizing their potentials.

 Operative/Personnel Activities:

Involve several functions concerned with the management

of people, such as Human Resource Planning, Recruitment,
Training and Development, Performance and
Compensation.

 Integral Part of Management:

Implies that HRM is an inseparable part of the management
process. The HRM functions are performed by all
organizations at all levels.
 Pervasive Function:
Implies that HRM is pervasive in nature and must be
performed by all organizations. In other words, HRM finds
its role in all the departments of an organization.
 Concern for the Human Element:
Considers all categories of employees, from the top
management to all the lower levels of the organizational
hierarchy, of an organization. It is a basic function of
 management, as every manager in the organization has to
perform human resource functions on a continuous basis.
 Ongoing Approach:
Refers to an efficient and ongoing process that ensures
effective utilization of the available human resource. HRM is
not a one-shot deal; rather, it is a continuous process.
Employees join and leave an organization, but this function
continues till the existence of the organization.
 Maintenance of Contended Workforce:
Implies the recognition of employees’ needs to take proper
steps to motivate and satisfy them so that they efficiently
work towards the accomplishment of organizational goals.
 Multidisciplinary Approach:
Refers to drawing knowledge from various disciplines, such
as psychology. Sociology and anthropology.

10.Outline the career options available for an HRM graduate.

HRM has assumed a professional status in today’s highly

competitive scenario. It puts forward great career opportunities
for individuals or human resource professionals. Career refers to
the choice of a profession or a series of work-related positions
occupied by an individual. The career opportunities for human
resource graduates have increased with the advent of
globalization and new technologies as well as increased
competition. The effective management and development of
people motivates them to maximize an organization’s
productivity. A human resource professional deals with these and
many other human resource issues. The career opportunities in
the field of HRM are available across a range of industries in both
the public and private sectors.

Human resource professional can be involved in a diverse range of

activities within an organization. The following are some of the
career opportunities available for HRM graduates.
 Human Resource Manager:
Manages and develops employees of an organization. The
human resource managers perform a variety of functions,
such as

 Providing support in the development and

implementation of human resource policies according
to organizational needs
 Developing a team to implement the human resource
functions
 Hiring employees
 Developing compensation and benefit plans for them
 Facilitate clear communication among employees
 Evaluate their performance
 Deals with disciplinary issues

 Human Resource Planner

Develops and plans various programs and activities required

to maintain the human resource of the organization.

 Plan and Policy Developer

Frames and develops the human resource plans and policies
required to maintain the human resource of the
organization.

 Management Consultant
Provides expertise, advice, and specialist skills with the aim
of improving organizational performance and maximizing its
growth.

 Strategic Human Resource Manager

Contributes to the development and accomplishment of the
organization-wide business plan and objectives. This can be
accomplished by aligning the human resource objectives
with the strategic objectives.
 Recruitment/Selection Consultant
Provides assistance and consultation in the recruitment and
selection of the talented and competent employees

 Industrial Relations Practitioner

Facilities and maintains the harmonious relations within the

organization as well as the other governing bodies.

 Change Management Professional

Executes the successful change strategies to minimize the
employee’s dissatisfaction and resistance to change.

 Employee Relations Advisor

Provides advise, guidance, and support to the top
management on employee relation issues to ensure that all
organizational and legislative requirements are met.