Human Resource Management

A strategic and a coherent

approach to the management
of an organization's most
valued assets i.e. The people
working there who individually
and collectively contribute to
the achievement of the
objectives of the business.
 Human Resource
Management : Nature
HRM is a multidisciplinary
process, utilizing knowledge
and inputs drawn from
psychology, OB, economics etc,
aimed at bringing employees
and organizations together so
that the goals of each are met.
HRM: Objectives
 Providing qualified, well­trained employees for              
    the organization.
  Maximizing employee effectiveness and efficiency in 
the organization. 
  Satisfying individual employee needs through monetary 
         compensation, benefits, opportunities  to advance, and 
job satisfaction.  
  Maintain high employee morale.
  Equal opportunity for expression.
  Provide a conducive development climate.
HRM : Significance
HRM is an important and vital
factor in any organization’s
success or failure. The quality and
utilization of other M’s- money,
machine, materials, methods and
markets are almost always
affected by decisions made about
and by human resource.
Functions Of HRM
HRM functions (also called
processes) are carried out by
the HR managers to fulfill the
goals and objectives of the
organization. There are two
sets of functions, namely
managerial functions and
operative functions.
The managerial functions are the basic
functions performed by the HR managers
in their capacity as managers or heads of
their own departments. In fact, all
managers, irrespective of their
departments, perform these functions.

The operative functions, on the other

hand, are specialized activities
performed exclusively by the HR
managers, usually for all the
departments.
HRM : Functions
 Managerial Functions
Functions like planning, organizing, staffing, directing and
controlling constitute the core managerial functions of an
organization.
a) Planning Manpower Requirement
Function : Anticipating Vacancies.
Objective : To anticipate and provide for future openings.
Operations :
1. Anticipating deaths, dismissals, retirements and
resignations.
2. Anticipating future promotions.
3. Anticipating future Transfers.
4. Estimating future vacancies from the above causes.
5. Estimating additional future positions.
Function: Recruitment

Objective : To seek and attract qualified applicants to fill 
vacancies.
Operations :
 1.   Preparing Job Analysis.                       
  2.  Preparing man specifications.
  3.  Analyzing the sources of potential employees.
  4.  Attracting potential employees.

 
b) Organizing the Manpower Resources 

Function : Organizational Planning

Objective : To determine the organizational structure  and manpower 
needed to  effectively meet the company objectives.

Operations : 
1. Analyzing organizational structure.

 2. Forecasting manpower requirements.

 3. Recommending organizational changes.

 4. Analyzing key position requirements.
Function : Selection
Objective :  To analyze applicants qualification for determining their     
suitability.
  Operations : 
  1. Preparing questionnaires.                 
  2. Weeding out undesirables through analysis or questionnaires.
  3. Interviewing the applicants.
  4. Testing the applicants psychologically, where necessary.  
  5. Investigating their references. 
  6. Arranging medical examination, if necessary.
Function: Classification of Employees

Objective : To assign officially each employee to an                          
appropriate position clearly defined regarding its responsibilities.
 Operations :  
  1. Preparing Job descriptions.                       
  2. Assigning of proper title to each position.                  
  3. Reviewing periodically the correctness of Job description.           
                                              
c) STAFFING
Function : Induction
Objective : To ensure that new recruits are provided with appropriate 
training and information to enable them to perform their duties 
effectively.
Operations :
1. orienting new employees into their jobs.
2. Ascertaining training requirements of such  employees to make 
them more competent for their jobs.
3. Providing facilities for their future education and development. 

 
Function : Transfer and Promotion

Objective : To provide for increasing the utilization of the

employees capabilities.
Operations :
1. Continuously analyzing Job descriptions.
2. Evaluating employee qualification.
3. Determining training requirements.
4. Promotion according to employees development.

Function : Manpower development

Objective : To provide for the individual employee's
development.
Operations :
1.Developing Performance standard.
2.Appraising Performance.
3. Planning Individual development programmes.
Function : TRAINING                 
Objective : To arrange programmes as                              
required for developing existing personnel.
Operations :                                                       
1. Planning and preparing training programmes.                               
                  
2. Providing training staff & faculty resources.                                   
               
3. Conducting the training programmes.           
4. Evaluating the training results.     

                    
d) Directing ( Motivating, Actuating &
Commanding
Function : Rate Determination                                        
Objective : To set rupee value on job positions that are fair & equitable 
when compared with other positions in the company as well as what 
prevails outside. 
Operations :                                                                       
1. Analyzing jobs and giving job descriptions.                                               
                
2. Evaluating such jobs.                                                  
3. Developing wage scales.  
Function : Recreation
Objective : To provide facilities for employee's
enjoyment of the job & make the company
more attractive and satisfying as a work place.
Operations : 1. Conducting social activities.
2. Conducting athletic activities.
3. Providing recreational facilities for
employees.
Function : Communication 

Objective : To provide the needed exchange of                               
information throughout the organization.
Operations : 
 1. Developing channels & media for information presentation to              
                          employees.                                    
2. Introducing & administering suggestion scheme.                           
3. Conducting opinion surveys.
4. Developing Grievances Procedures.
Function : Collective Bargaining
 
Objective : To build up rapport with officially                                     
recognized & legally established employee organizations s the best 
interests of both the company & its employees.      
 
 Operations :                                                                     
 1. Negotiating Agreements.                                          
 2. Interpreting and administering such agreements.
  
Function : Employee Discipline

 Objective : To develop effective regulations & harmonious working 
relationships.
 Operations :
 1. Establishing rules for conduct.             
 2. Administering disciplinary measures, where necessary.         
e) CONTROLLING
Function : Performance Evaluation                               
Objective : To appraise objectively each employee's                
performance in relation to the duties & responsibilities assigned.            
Operations : 1. Developing performance evaluation.   
2. Conducting performance evaluation interviews.
3. Analyzing performance evaluation results.        
Function : Employee Counseling                              
 Objective : To help employees solve  their personal problems.                                             
    
 Operations :
 1. Selecting & training counselors.                    
 2. Arranging counseling interviews.
Function : Safety & Security

Objective : To develop facilities & procedures for                               
prevention of on­the ­job accidents &  provide precautionary measures 
for  safeguarding the company & its property. 
Operations :                                                                      
1. Establishing safety rules.                                             
2. Investigating accidents.                                                
3. Conducting safety inspections.                                     
4. Preventing or eliminating hazards.                              
5. Developing & administering security regulations.
 Function : Personnel Research

      Objective : To develop improved employee                        
attitudes & conditions of work.

  Operations :                                              
1. Analyzing Personnel problems.
        2. Recommending improved practices.
 Operative Functions
1. Procurement refers to a series of activities
undertaken by the HR managers for filling
the present and future vacancies of the
organization. The activities include job
analysis and designing, HR planning,
recruitment and, finally, the selection of
suitable employees.
Job analysis refers to both the
determination of specific tasks and
responsibilities connected to a job and
identifying the skills, knowledge and
abilities required for the job holder.
HR planning involves choosing and placing the right person 
at the right job and at the right time.                                        
   
                                                                           
Recruitment  involves  gathering  a  pool  of  applicants  from 
which suitable employees may be selected.                             

Lastly,  selection  involves  screening,  testing,  interviewing 

and hiring the most suitable employees for the organization. 
                     
2.  Development    refers  to  both  employees’  training  and  management  development. 
HR  managers  are  responsible  for  conducting  and  supervising  training  and 
development programmes for employees. The purpose of a training and development 
programme is to increase the employees’ competencies in their job by improving their 
knowledge,  skills  and  abilities.       

 
Training and development is widely accepted as a method for enhancing the employee 
skills,  increasing  the  individual  and  organizational  performance,  improving  the 
employee morale, and achieving the business growth and success.
3. Compensation refers to the determination of the pay scale
and other benefits for the employees. Establishing and
maintaining the pay system of an organization is one of the
principal jobs of the HR managers. They must devise ways to
ensure fair and equitable pay rates.

In addition, HR managers should regularly manage the

performance evaluation system of the organization, and
continuously design reward systems such as performance-linked
incentive plans and bonus and flexible work schedules.
4. Maintenance function aims at retaining
efficient and experienced employees in
the organization. HR managers are
responsible for offering a wide range of
HR programmes covering occupational
safety, health promotion and physical
fitness, canteen facilities, recreation
activities, transportation programmes,
employee suggestion schemes, career
counseling and growth for creating a
positive work environment.
5. Integration  consists  mainly  of  industrial  relations  and 
aims  at  ensuring  good  relations  between  the  management 
and  the  employees.  HR  managers  have  to  implement 
industrial  relations  programmes  that  would  ensure  ethical 
and  fair  treatment  in  disciplinary  action,  grievance 
redressal,  and  career  management  processes.  They  should 
also counsel the employees and the management to prevent 
and,  when  necessary,  resolve  disputes  over  labor 
agreements or other labor relation issues.
Challenges Facing HRM
 World becoming a global village  resulting in a 
highly diverse work force.
 Changing Organizational structures.
 Advancing Technology.
 Changing employee expectations.
 Varying economic conditions across countries.
 Legal environments.