What is

HRM?
• HRM is concerned with the people’s dimension in the
organization
• Facilitating the competencies and retention of skilled force
• Developing management systems that promote commitment
• Developing practices that foster team work
• Making employees feel valued and rewarded.
 HUMAN RESOURCE MANAGEMENT
(HRM)
HRM defined as

“HRM is management function concerned with hiring , motivating

and maintaining people in an organization. It focuses on
people in organization” (Aswathappa, 2008, p.5)

According to the Invancevich and Glueck, “HRM is concerned with the most
effective use of people to achieve organizational and individual goals. It is the
way of managing people at work, so that they give their best to the
organization”.

According to Dessler (2008) the policies and practices involved in carrying out
the “people” or human resource aspects of a management position, including
recruiting, screening, training, rewarding, and appraising comprises of HRM.
 HRM: Peoples Dimensions
In Organizations
•
HRM: the application of management functions and principles related to
employees

•
HRM functions applicable every where (not for profit and profit driven
organizations)

•
Employees decisions are integrated

•
Employee decision brings effectiveness/efficiency in organization

•
HRM includes all major activities in professional life of a worker

•
All activities from employee entry to managing performance and
training
until he or she leaves
 HRM Activities
•HR Planning

•Job Analysis and Design

•Recruitment and Selection

•Training and Development

•Remuneration

•Welfare

•Safe and Healthy Work Environment

•Industrial relations
 Nature of Human Resource
Management
1.HRM is based on certain principles and policies contribute to the
achievement of organisational objectives.
2.HRM is a pervasive function – Human resource management is not specific
to an individual department, rather it is a broader function and spread throughout
the organisation, it manages all type of people from lower level to top level
departments of the organisation.
3.HRM is people oriented – People or human resource is the core of all the
activities of human resource management. Human resource management works
with and for people. It brings people and organisation together to
achieve individual and organisational goals.
4.HRM is continuous activity – All factors of production are required to be
continuously updated and improved to cope up with the changes and increased
competition. Similarly, human resource also continuously trained, developed, or
replaced to face the next level of competition. Hence, it is a continuous activity.
5.HRM is a part of management function.
6. HRM aims at securing maximum contribution.
7. HRM aims at optimum use of personnel power.
8.HRM Involves the Application of Management Functions and
Principles.
9.Decision Relating to Employees must be Integrated
10.Decisions Made Influence the Effectiveness of an Organization.
11.HRM Functions are not Confined to Business Establishments Only
Scope of Human Resource Management
1. Personnel Aspect
Human Resource Planning – It is the process by which the organisation
identifies the number of jobs vacant (Quantity+Quality).
Job Analysis and Job Design – Job analysis is the systematic process
for gathering, documenting, and analysing data about the work required
for a job. Job analysis is the procedure for identifying those duties or
behaviour that define a job.
Job Design is the process of deciding on the contents of a job in terms
of its duties and responsibilities, on the methods to be used in carrying
out the job, in terms of techniques, systems and procedures, and on the
relationships that should exist between the job holder and his superior
subordinates and colleagues
Recruitment and Selection – Recruitment is the process of preparing
advertisements on the basis of information collected from job analysis and
publishing it in newspaper or anywhere else. Selection is the process of
choosing the best candidate among the candidates applied for the job.
Orientation and Induction – Making the selected candidate informed
about the organization’s background, culture, values, and work ethics.
Training and Development – Training is provided to both new and
existing employees to improve their performance.
Performance Appraisal – Performance check is done of every
employee by Human Resource Management. Promotions, transfers,
incentives, and salary increments are decided on the basis of employee
performance appraisal.
Compensation Planning and Remuneration – It is the job of Human
Resource Management to plan compensation and remunerate.
Motivation – Human Resource Management tries to keep employees
motivated so that employees put their maximum efforts in work.
2.Welfare Aspect – Human Resource Management have to follow certain health
and safety regulations for the benefit of employees. It deals with working
conditions, and amenities like - canteens, crèches, rest and lunch rooms, housing,
transport, medical assistance, education, health and safety, recreation facilities,
etc.
3.Industrial Relation Aspect – HRM works to maintain co- ordinal relation with
the union members to avoid strikes or lockouts to ensure smooth functioning of
the organisation. It also covers - joint consultation, collective bargaining,
grievance and disciplinary procedures,
and dispute settlement.
 So HRM …
1. It helps management in the preparation adoption and continuing
evolution of personnel programmes and policies.
2. It supplies skilled workers through scientific selection process
3. It ensures maximum benefit out of the expenditure on training
and development and appreciates the human assets.
4. It prepares workers according to the changing needs of industry
and environment.
5. It motivates workers and upgrades them so as to enable them to
accomplish the organisation goals.
6. Through innovation and experimentation in the fields of
personnel, it helps in reducing casts and helps in increasing
productivity.
7. It contributes a lot in restoring the industrial harmony and healthy
employer-employee relations.
8. It establishes mechanism for the administration of personnel
services that are delegated to the personnel department.
 Importance of
HRM
Human Resource Management is important to all managers despite their various
functions because of the following reasons-
• Hire the right person for the job
• Low attrition rate
• Ensure people do their best
• Time saved in not conducting useless interviews
• Avoid legal action for any discrimination
• Safety laws are not ignored
• Equity towards employee in relation to salary etc.
• Effective training
• Avoid unfair labor practices
Skills Needed for HRM

• Organization
• Multitasking
• Negotiation
• Problem Solving and Conflict Management
• Communication
 Why Study HRM?

• Taking a look at people is a rewarding experience

• People possess skills, abilities and aptitudes that offer
competitive advantage to any firm
• No computer can substitute human brain, no machines can
run without human intervention & no organization can exist if it
cannot serve people’s needs.
• HRM is a study about the people in the organization-how they
are hired, trained, compensated, motivated & maintained.
 Functions

Functions of HRM include:

• Facilitating the retention of skilled and competent employees

•Building the competencies by facilitating continuous learning and
development
• Developing practices that foster team work and flexibility
•Making the employees feel that they are valued and rewarded for their
contribution
• Developing management practices that endanger high commitment
•Facilitating management of work force diversity and availability of equal
opportunities to all.
 Functions of
HR
OPERATIVE FUNCTIONS
MANAGERIAL FUNCTIONS
Staffing
Planning Development
Organising Compensation
Directing Motivation
Maintenance
Controlling
Integration
Emerging Issues
 Operative Functions Of HR
STAFFIN Job analysis, HRP, Recruitment,
G Selection, Placement, Induction, Internal
DEVELOPMENT Mobility
Competency profiling, Training and development,
Performance & potential management, Career
management, 360 degree feedback
COMPENSATION Job design, Work scheduling, Job evaluation,
& MOTIVATION Compensation administration, Incentives and
benefits
MAINTENANCE Health, Safety, Welfare, Social
security
Employment relations, Grievance, Discipline,
INTEGRATIO
N Trade unions, Participation, Collective
bargaining
EMERGING ISSUES HRIS, HR audit, HR scorecard, International
HRM, Workforce Diversity
 Objectives of
HRM
1. Human capital : assisting the organization in obtaining the right number
and types of employees to fulfil its strategic and operational goals
2. Developing organizational climate: helping to create a climate in which
employees are encouraged to develop and utilize their skills to the fullest
and to employ the skills and abilities of the workforce efficiently
3. Helping to maintain performance standards and increase productivity
through effective job design; providing adequate orientation, training and
development; providing performance-related feedback, and ensuring
effective two-way communication.
4. Helping to establish and maintain a harmonious employer/employee
relationship
5. Helping to create and maintain a safe and healthy work environment
6. Developing programs to meet the economic, psychological, and social
needs of the employees and helping the organization to retain the
productive employees
7. Ensuring that the organization is in compliance with provincial/territorial
and federal laws affecting the workplace (such as human rights, employment
equity, occupational health and safety, employment standards, and labour
relations legislation). To help the organization to reach its goals

8. To provide organization with well-trained and well-motivated employees

9. To increase the employees satisfaction and self-actualization

10. To develop and maintain the quality of work life

11. To communicate HR policies to all employees.

12. To help maintain ethical polices and behavior.

 Societal objectives
To be ethically & socially responsible to the needs of the society while
minimizing the negative impact of such demands upon the organization
 Organizational objectives
To recognize the role of HRM in bringing about organizational effectiveness
 Functional objectives
To maintain the department’s contribution at a level appropriate to the organization’s
needs
 Personal objectives
To assist employees in achieving their personal goals in a manner that their personal
goals enhance the individual’s contribution to the organization
 HRM and 3
P’s
• People – core strength of an organization

Any resource can be replaced but not HR

• Processes – evolve over a period of time
IT enabled environment facilitates
engineering effortlessly
• Performance – the pillars of performance
are people and IT
Organizational performance in terms of
value creation and return on investment
 HRM in the New
1. HR Can Help in Dispensing Organizational Excellence

2. Millennium
Human Resource Should be a Strategy Partner

3. HR Accountability Should be Fixed to Ensure Employee Commitment

4. The New HR Must Become a Change Agent

5. Improving the Quality of HR

6. Change in Employment Practices

7. Benchmarking Tool Must be Mastered by HR Professionals

8. Aligning Human Resources to Better Meet Strategic Objectives

9. Promote From Within and Invest in Employees

10. Review the Recruitment and Selection Process

11. Communicate Mission and Vision

12. Use Teams to Achieve Synergy