Human resources is important to organizations in 10 specific

areas, ranging from strategic planning to company image. HR

practitioners in a small business who have well-rounded
expertise provide a number of services to employees. The areas
in which HR maintains control can enhance employees
perception of HR throughout the workforce when they believe
HR considers employees to be its internal customers and renders
services with that in mind.
Strategy
HR improves the company's bottom line with its knowledge of
how human capital affects organizational success. Leaders with
expertise in HR strategic management participate in corporate
decision-making that underlies current staffing assessments and
projections for future workforce needs based on business
demand.
Compensation
HR compensation specialists develop realistic compensation
structures that set company wages competitive with other
businesses in the area, in the same industry or companies
competing for employees with similar skills. They conduct
extensive wage and salary surveys to maintain compensation
costs in line with the organization's current financial status and
projected revenue.
Benefits
Benefits specialists can reduce the companys costs associated
with turnover, attrition and hiring replacement workers. They
are important to the organization because they have the skills
and expertise necessary to negotiate group benefit packages for
employees, within the organization's budget and consistent with
economic conditions. They also are familiar with employee
benefits most likely to attract and retain workers. This can
reduce the companys costs associated with turnover, attrition
and hiring replacement workers.
Safety
Employers have an obligation to provide safe working
conditions. Workplace safety and risk management specialists
from the HR area manage compliance with U.S. Occupational
Safety and Health Administration regulations through
maintaining accurate work logs and records, and developing
programs that reduce the number of workplace injuries and
fatalities. Workplace safety specialists also engage employees in
promoting awareness and safe handling of dangerous
equipment and hazardous chemicals.
Liability
HR employee relations specialists minimize the organization's
exposure and liability related to allegations of unfair
employment practices. They identify, investigate and resolve
workplace issues that, left unattended, could spiral out of
control and embroil the organization in legal matters pertaining
to federal and state anti-discrimination and harassment laws.
Training and Development
HR training and development specialists coordinate new
employee orientation, an essential step in forging a strong
employer-employee relationship. The training and development
area of HR also provides training that supports the company's
fair employment practices and employee development to
prepare aspiring leaders for supervisory and management roles.
Employee Satisfaction
Employee relations specialists in HR help the organization
achieve high performance, morale and satisfaction levels
throughout the workforce, by creating ways to strengthen the
employer-employee relationship. They administer employee
opinion surveys, conduct focus groups and seek employee input
regarding job satisfaction and ways the employer can sustain
good working relationships.
Recruitment
HR recruiters manage the employment process from screening
resumes to scheduling interviews to processing new employees.
Typically, they determine the most effective methods for
recruiting applicants, including assessing which applicant
tracking systems are best suited for the organization's needs.
Selection
HR professionals work closely with hiring managers to effect
good hiring decisions, according to the organization's workforce
needs. They provide guidance to managers who aren't familiar
with HR or standard hiring processes to ensure that the
company extends offers to suitable candidates.
Compliance
HR workers ensure that the organization complies with federal
state employment laws. They complete paperwork necessary for
documenting that the company's employees are eligible to work
in the U.S. They also monitor compliance with applicable laws
for organizations that receive federal or state government
contracts, through maintaining applicant flow logs, written
affirmative action plans and disparate impact analyses.
What is Human Resource
The most important resource of any organization is
the human resource. All organizations have
three important resources. These are:
Material
Capital
Human
Human resource is the most vital resource in an organization
Why is Human Resource Vital
This resource is vital because it drives or moves all the other res
ources in the organization. This
resource can increase the
efficiency, economy and effectiveness of other resources. It is
this resource that is
most difficult to control because human beings are most unpred
ictable. However, if you are able to manage
it properly, it can give wonderful results which no other resourc
e can give.
Human Resource Management (HRM) is
the management function and it is also staff function,
through which managers recruit, select, train, and develop
organization members. We will begin by
discussing the importance
of human resource management and point out how HRM can as
sure the
organization of an adequate and constant supply of
skilled and right employees.
Importance of Human Resource
HRM is a
staff function. HRM managers advise line managers throughout
organization about what
Figure 1
Human Resource
Recruitment
Selection
Planning
Training and
Socialization
Development
Performance
Promotions, Transfers, Demotions,
Appraisal
and Separations
80

Introduction To Public AdministrationMGT111
VU
people to recruit for different departments of the organization.
In addition, organization may need
employees and managers from time to time. Therefore, the
HRM becomes important function
The HRM process is an ongoing procedure that tries to keep the
organization supplied with the
right people in the right positions, when
they are needed. The HRM process is shown in Figure 1. It
includes seven basic activities which are: 1) human resource pla
nning, 2) recruitment, 3) selection, 4)
socialization, 5) training and development,
6) performance appraisal and 7) promotion, transfers and
demotion.
Human Resource Planning
Human resource planning is
the first step in HRM. It deals with the future requirements of hu
man
asset for the
organization. The need for human resource planning may not b
e readily apparent. However,
an
organization that does not do planning for human resources ma
y find that it is not meeting either its
personnel requirements or its overall goals effectively.
How is Human Resource Planning done? It has following compo
nents:
1. Planning for future needs: The organization must decide how
many people it will need in the future.
What kind of skills those people will possess. In other words org
anization should be able to
forecast its future human requirements for planning for its futur
e needs.
2. Planning for future balance: organization should
be able to determine the future balance of its human
resource. It has to see how many people will retire or
the likely hood of people leaving the
organization. HRM should compare the number
of employees needed to the number of present
employees who can be expected to stay with the
organization, which leads to
3. Planning for recruiting or laying off employees: This will dete
rmine how many employees will be recruited
and how many will be laid off.
4. Planning for the development of
employees, Once new employees are recruited there need to trai
n these
employees for the jobs in organizations.
Recruitment
The purpose of recruitment is
to provide a group of candidates that is large enough
to let managers
select the qualified employees they need.
Recruitment is defined as the development of
a pool of job candidates in accordance with a human resource
plan.
Job and Position Descriptions
Before employees can be
recruited, recruiters must have some clear ideas regarding the
activities
and responsibilities and qualifications
required for the job being filled. Job analysis is therefore
an early step
in the recruitment process. In Job analysis each job in the
organization is categorized. For each job the
activities and responsibilities are enumerated and then qualificat
ion, experience, knowledge and skills
required
to perform the job are written down. Following are the three co
mponents of job analysis which are
discussed below:
1. Job description: A written description of a non-
management job, covering title, duties, and
responsibilities, and including its location on the
organization chart.
2. Position description: A written description of
a management position, covering title, duties,
and responsibilities, and including its location on the
organization chart.
3. Hiring specification: A written description of
the education, experience, and skills needed to
perform a job or fill a position effective.
Once a specific job has been analyzed, a written statement of its
content and location is included in
the organization chart. This statement is called either
a job description or a position description. Job
analysis which comprises hiring specification and job descriptio
n is important before recruitment is done.
Organizational Psychology holds that successful organizations
do not owe their success solely to market realities and
sustainable competitive advantages. Actually, there is a lot more.
Successful companies are those that consider their human
capital as their most important asset. Facts and figures are the
quantitative elements of successful management, yet the
qualitative, i.e. the cognitive aspects, are those that actually
make or break an organization.
Human Resources Management (HRM) is the strategic
management of the employees, who individually and collectively
contribute to the achievement of the strategic objectives of the
organization. Assuming that the employees of an organization
are individuals with own mental maps and perceptions, own
goals and own personalities and as such they cannot be
perceived as a whole, HRM holds that the organization should
be able to employ both individual and group psychology in
order to commit employees to the achievement of organizational
goals.
Aiming to enable the organization to achieve its strategic goals
by attracting, retaining and developing employees, HRM
functions as the link between the organization and the
employees. A company should first become aware of the needs
of its employees, and at a later stage, understand and evaluate
these needs in order to make its employees perceive their job as
a part of their personal life, and not as a routine obligation. To
that end, HRM is very crucial for the whole function of an
organization because it assists the organization to create loyal
employees, who are ready to offer their best.
The HRM activities in modern organizations are typically
performed in communication with the General Management in
an effort to provide a variety of views when a decision must be
taken. In that way, decision making is not subject to the
individual perceptions of the HR or the General Manager, but it
becomes the outcome of strategic consensus.
The main goals / responsibilities of HRM are:
To retain low employee turnover rate by inspiring people to
work for the company
To attract new employees
To contribute to employee development
To achieve these goals, Human Resources Management trains
and motivates the employees by communicating ethical policies
and socially responsible behaviour to them. In doing so, it plays
a significant role in clarifying the organization's problems and
providing solutions, while making employees working more
efficiently.
On the other hand, challenges do not cease for the HRM.
Modern organizations can survive in the dynamic, competitive
environment of today only if they capitalize on the full potential
of each employee. Unfortunately, many companies have not
understood the importance of the human capital in successful
operations. The recruitment and selection of the best employees
is a very difficult obligation. Even companies that are voted in
the top-ten places to work at, often endure long periods of hard
work to realize that human element is all an organization
should care about.
New challenges arise even now for the organization, and it is
certain that new challenges will never cease to emerge.
Therefore, the use of proper Human Resources techniques is a
really powerful way for organizations to overcome these
challenges, and to improve not only their quantitative goals but
also their organizational culture, and their qualitative, cognitive
aspects.
The backbone of any successful company is the HR department,
and without a talented group of people to hire, culture, and
inform employees, the company is doomed for failure.

The importance of human resources within an organization is
becoming increasingly understood in today's rapidly changing
and uncertain business environment (Davidson & Griffin 2000:
18).

In order to assist employees in helping an organisation to reach
its strategic business goals, effective human resource managers
often gather job related information in a job analysis and job
description, which is vital to creating or re-designing jobs
which provide employees with a high level of job satisfaction
(Stone 2002: 123).

The basic human resource activity of gathering detailed
information about a particular job's duties, tasks and
responsibilities, can help organisations achieve strategic goals
more efficiently and effectively by avoiding both duplication
and overlapping of work in jobs, and also providing a job
description by which employers are able to recruit and select
the most appropriate employees for the job (Stone 2002: 12
Behind production of every goods and service there is human
mind, effort and time invested. without human being no product
or service can be produced. Human being is the fundamental
resource for making anything. Today many experts claim that
machines and technology are replacing human resource and
minimising their importance. But in fact machines and
technology are build by the human, there has been continuous
pressing need for talented, skilled and qualified professionals to
further improve machines and technology.

Who are human resource?
Human Resources refers to the individuals and support systems
within an organization responsible for personnel hiring and
firing, applicant tracking, skills development, training, benefits
administration, and compliance with government regulations.
HR professionals keep their companies in compliance, develop
viable employment policies and practices, and keep up-to-date
with emerging trends.

Meaning:
Human Resource Management is the process of recruitment,
selection of employee, providing proper orientation and
induction, providing proper training and the developing skills,
assessment of employee (performance of appraisal), providing
proper compensation and benefits, motivating, maintaining
proper relations with labour and with trade unions, maintaining
employees safety, welfare and health by complying with labour
laws of concern state or country.

Why name human resource management?

Human: refer to the skilled workforce in the organisation.
Resource: refer to limited availability or scarce.
Management: refer to maximise or proper utilisation and make
best use of limited and a scarce resource.

Altogether, human resource management is the process of
proper and maximise utilisation of available limited skilled
workforce. The core purpose of the human resource
management is to make efficient use of existing human resource
in the organisation. The Best example at present situation is,
construction industry has been facing serious shortage of skilled
workforce. It is expected to triple in the next decade from the
present 30 per cent, will negatively impact the overall
productivity of the sector, warn industry experts.

Every organisations' desire is to have skilled and competent
people to make their organisation more effective than their
competitors. humans are very important assets for the
organisation rather than land and buildings, without employees
( humans ) no activity in the organisation can be done.
Machines are meant to to produce more goods with good
quality but they should get operated by the human only.

"you must treat your employees with respect and dignity
because in the most automated factory in the world, you need
the power of human mind. That is what brings in innovation. If
you want high quality minds to work for you, then you must
protect the respect and dignity. "
---Mr N.R. Narayana Murthy, Chairman Emeritus, Infosys Ltd
>>.

Our progress as a nation can be no swifter than our progress in
education. The human mind is our fundamental resource. -
John F. Kennedy.

Great Quotations

The greatest tragedy in America is not the destruction of our
natural resources, though that tragedy is great. The truly great
tragedy is the destruction of our human resources by our failure
to fully utilize our abilities, which means that most men and
women go to their graves with their music still in them. -
Oliver Wendell Holmes.

The human mind is our fundamental resource. - John F.
Kennedy.


For any organisation to function effectively, it must have
resource of men (Human Resource), money, materials and
machinery. The resources by themselves cannot fulfill the
objectives of an organisation, they need to be collected, co-
ordinated and utilised through human resources. And, the
effective management of human resources is also vital. Hence,
Human Resource Management (HRM) has emerged as a major
function in organisations.Human Resource Management is the
organizational function that deals with issues related to people
such as compensation, hiring,performance management,
organization development, safety, wellness, benefits, employee
motivation, communication, administration, and training.

The administrative discipline of hiring and developing
employees so that they become more valuable to the
organization.

Human Resource management includes:

1. conducting job analyses,
2. planning personnel needs, and recruitment,
3. selecting the right people for the job,
4. orienting and training,
5. determining and managing wages and salaries,
6. providing benefits and incentives,
7. appraising performance,
8. resolving disputes,
9. communicating with all employees at all levels.
Formerly called personnel management.
10. Maintaining awareness of and compliance with local,
state and federal labor laws.
11. These are also called as functions of human resource
management for the purpose of effect you utilisation of
human resource.
The historical rule of thumb for HR staffing requirements is one
full-time professional HR person should be hired for every 100
employees. The actual ratio for a business can vary depending
upon factors such as the degree
OBJECTIVES OF HRM
Societal objective.To be socially responsible to the needs and
challenges of society while minimizing the negative impact of
such demands upon the organization. The failure of
organizations to use their resources for society's benefit may
result in restrictions. For example, societies may pass laws that
limit human resource decisions.

Organizational objective. To recognize that HRM exists to
contribute to 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.
Functional objective.To maintain the department's contribution
at a level appropriate to the organisation's needs. Resources are
wasted when HRM is more or less sophisticated than the
organisation demands. A department's level of service must be
appropriate for the organisation it serves.

Personal objective. To assist employees in achieving their
personal goals, at least insofar as these goals enhance the
individual's contribution to the organisation. 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
organisation.

Nature of Human Resource Management
Human Resource Management involves management functions
like planning, organizing, directing and controlling
It involves procurement, development, maintenance of human
resource
It helps to achieve individual, organizational and social
objectives
Human Resource Management is a multidisciplinary
subject. It includes the study of management,
psychology, communication, economics and sociology.
It involves team spirit and team work.
It is a continuous process.

Why Is Human Resource Management Important to All
Managers? Why are these concepts and techniques important to
all managers? ' Perhaps it's easier to answer this by listing some
of the personnel mistakes you don't want to make while man-
aging. For example, you don't want to:
Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your company taken to court because of
discriminatory actions
Have your company cited under federal occupational
safety laws for unsafe practices
Have some employees think their salaries are unfair
and inequitable relative to others in the organization
Allow a lack of training to undermine your
department's effectiveness
Commit any unfair labor practices
Human resources are undoubtedly the key resources in an
organization, the easiest and the most difficult to manage! The
objectives of the HRM span right from the manpower needs
assessment to management and retention of the same. To this
effect Human resource management is responsible for effective
designing and implementation of various policies, procedures
and programs. It is all about developing and managing
knowledge, skills, creativity, aptitude and talent and using them
optimally.
Human Resource Management is not just limited to manage and
optimally exploit human intellect. It also focuses on managing
physical and emotional capital of employees. Considering the
intricacies involved, the scope of HRM is widening with every
passing day. It covers but is not limited to HR planning, hiring
(recruitment and selection), training and development, payroll
management, rewards and recognitions, Industrial relations,
grievance handling, legal procedures etc. In other words, we can
say that its about developing and managing harmonious
relationships at workplace and striking a balance between
organizational goals and individual goals.
HUMAN RESOURCE MANAGEMENT - NATURE, SCOPE,
OBJECTIVES AND FUNCTION
Human resources may be defined as the total knowledge, skills,
creative abilities, talents and aptitudes of an organizations
workforce, as well as the values, attitudes, approaches and
beliefs of the individuals involved in the affairs of the
organization. It is the sum total or aggregate of inherent
abilities, acquired knowledge and skills represented by the
talents and aptitudes of the persons employed in the
organization.
The human resources are multidimensional in nature. From the
national point of view, human resources may be defined as the
knowledge, skills, creative abilities, talents and aptitudes
obtained in the population; whereas from the viewpoint of the
individual enterprise, they represent the total of the inherent
abilities, acquired knowledge and skills as exemplified in the
talents and aptitudes of its employees.
Human Resource Management: Defined
Human Resource Management has come to be recognized as an
inherent part of management, which is concerned with the
human resources of an organization. Its objective is the
maintenance of better human relations in the organization by
the development, application and evaluation of policies,
procedures and programs relating to human resources to
optimize their contribution towards the realization of
organizational objectives.
In other words, HRM is concerned with getting better results
with the collaboration of people. It is an integral but distinctive
part of management, concerned with people at work and their
relationships within the enterprise. HRM helps in attaining
maximum individual development, desirable working
relationship between employees and employers, employees and
employees, and effective modeling of human resources as
contrasted with physical resources. It is the recruitment,
selection, development, utilization, compensation and
motivation of human resources by the organization.
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 from psychology, economics, etc.
Nature of HRM:
1. HRM involves management functions like planning,
organizing, directing and controlling.
2. It involves procurement, development, maintenance
and management of human resource.
3. It helps to achieve individual, organizational and
social objectives.
4. HRM is a mighty disciplinary subject. It includes the
study of management psychology communication,
economics and sociology.
5. It involves team spirit and team work.
Human resource management (HRM) is the governance of an
organizations employees. HRM is sometimes referred to simply
as human resources (HR).
A companys human resources department is responsible for
creating, implementing and/or overseeing policies governing
employee behaviour and the behaviour of the company toward
its employees.
Human resources are the people who work for the organization;
human resource management is really employee management
with an emphasis on those employees as assets of the
business. In this context, employees are sometimes referred to
as human capital. As with other business assets, the goal is to
make effective use of employees, reducing risk and maximizing
return on investment (ROI).
Areas of HRM oversight include among many others --
employee recruitment and retention, exit interviews, motivation,
assignment selection, labor law compliance, performance
reviews, training, professional development, mediation,
and change management.
Human resources is the set of individuals who make up
the workforce of an organization, business sector or
an economy. "Human capital" is sometimes used synonymously
with human resources, although human capital typically refers
to a more narrow view; i.e., the knowledge the individuals
embody and can contribute to an organization. Likewise, other
terms sometimes used include "manpower", "talent", "labor", or
simply "people"
A resource is a source or supply from which benefit is produced.
Typically resources are materials, money, services, staff, or other
assets that are transformed to produce benefit and in the process
may be consumed or made unavailable. Benefits of resource
utilization may include increased wealth, meeting needs or
wants, proper functioning of a system, or enhanced well being.
From a human perspective a natural resource is anything
obtained from the environment to satisfy human needs and
wants.
[1]
From a broader biological or ecological perspective a
resource satisfies the needs of a living organism
In economics a resource is defined as a service, or other asset
used to produce goods and services that meets human needs and
wants.
[3]
Economics itself has been defined as the study of how
society manages its scarce resources.
[4]
Classical
economics recognizes three categories of resources: land, labor,
and capital.
[5]
Together with entrepreneurship, land, labor,
and capital.
[6]
Land includes all natural resourcesand is viewed
as both the site of production and the source of raw materials.
Labor or human resources consists of human effort provided in
the creation of products, paid in wage. Capital consists of
human-made goods or means of production (machinery,
buildings, and other infrastructure) used in the production of
other goods and services, paid in interest. Entrepreneurs serve
as managers, risk-takers, leaders, and visionaries.

Investopedia explains 'Human Capital'
Economist Theodore Schultz invented the term in the 1960s to
reflect the value of our human capacities. He believed human
capital was like any other type of capital; it could be invested in
through education, training and enhanced benefits that will lead
to an improvement in the quality and level of production.
Definition of 'Human Capital'
A measure of the economic value of an employee's skill set. This
measure builds on the basic production input of labor measure
where all labor is thought to be equal. The concept of human
capital recognizes that not all labor is equal and that the quality
of employees can be improved by investing in them. The
education, experience and abilities of an employee have an
economic value for employers and for the economy as a whole
1. Cash or goods used to generate income either by investing in
a business or a different income property.
2. The net worth of a business; that is, the amount by which
its assets exceed its liabilities.
3. The money, property, and other valuables which collectively
represent the wealth of an individual or business.

Human Resource Management
The Heart of All Organizations
15 % success is due to technical skills and 85 % due to the skills
in human engineering
The process of Human Resource Management consists of all the
actions that an organization takes to attract, develop, and retain
quality employees.
It helps in selection and recruitment of individuals that
are right for a given position in the company.
Recruitment
Today, talented employees are hot items on the global
labour market, thus, employers are forced to work
more hard to be able to retain, motivate and develop
good employees.
The recruits must have mandatory of at least twenty-
four hours within the first two to four weeks.
As for the managers, they have to train from eight to
twelve weeks.
Management training includes classes and assignments.
2.Assists employees and managers in adapting to organization
change.
Provide a great working environment and treat each other with
respect and dignity.
3.HRM can make contribution to the organizations
effectiveness, efficiency,productivity improvements
The goal of HRM is to maximize the productivity of an
organization by optimizing the effectiveness of its employees
while simultaneously improving the work life of employees and
treating employees as valuable resources.
Consequently, HRM encompasses efforts to promote personal
development, employee satisfaction, and compliance with
employment-related laws.
HRM
The function performed in organizations that facilitate the most
effective use of people (employees) to achieve organizational
and individual goals.
It helps in recruiting and selecting appropriate Staff, using a
variety of techniques.
Helps the managers in measuring and monitoring staff
performance.
HR help to strategize necessary ways by showing the
options that are available for the organization to
achieve the set target.
Build and strengthen the businesss for long-term
competitive position in the market by providing a
quality product and excellent customer service.
HR is one of the key to a successful organization.