Enrolment No.

184M60543
MBA – (Finance & Accounting)

ASSIGNMENTS
Human Resources Management

1. “Effective Management of Human Resource is

essential for the prosperity and welfare of an
organization, a society and a nation. “In the light of
this statement, describe the role of Human
Resource Management.

Definitions of Human Resources Management:

Michael J. Jucius defined Personnel Management as

“The field of management which has to do with
planning, organizing, directing and controlling the
functions of procuring, developing, maintaining and
utilizing a labor force, such that
1. Objectives for which the company is established
are attained economically and effectively
2. Objectives of all levels of personnel are served
to the highest possible degree
3. Objectives of society are duly considered and
served.

Personnel/Human resources management can be

defined as managing (Planning, organizing, directing
and compensating human resources resulting in the
creation and development of human relations with a
view to contribute proportionately (due to them) to
the organizational, individual and societal goals.

Nature and Scope of Human Resources in

Organizations:

People in any organization manifest themselves, not

only as individuals but also through group
interactions, when individuals come to work place,
they come with not only technical skills, knowledge
etc, but also with their personal feelings, perception,
desires, motives, attitude, aptitude, values etc.,
therefore employee management in an organization
does mean management of not only technical skills
but also other factors of human resources.

Role of Human Resources Management:

Managerial Functions:

Managerial functions of personnel management

involve planning, organizing, directing and
controlling. All these functions influence the
performance of operative functions.

1. Planning: It is a pre-determined course of action.

Planning is determining of personnel program and
changes in advance. In other words it involves
planning of manpower requirements, recruitment,
selection, transfers, promotions, training etc. It also
includes forecasting of personnel needs, changing
values, attitudes and behavior of employees and
their impact on organization.
2. Organizing: An organization is a means to an end.
It is essential to carryout the determined course of
action. In the words of J.C. Messie., an organization
is a structure and a process by which co-
operatives group of human beings allocates its
tasks among its members, identifies relationships
and integrates its activities towards common
objective complex relationships exist between the
specialized departments and the general
department as many top managers are seeking
the advice of personnel managers. Thus
organization establishes relations among the
employees so that they can collectively contribute
to the attainment of company goals.

3. Directing: The next logical function after

completing planning and organizing is the
execution of the plan. The basic function of
personnel management at any level is motivating,
commanding, leading and activating people. The
willing and effective co-operation of employees for
the attainment of organization goals is possible
through proper direction. Tapping the maximum
potentialities of the people is possible through
motivation and command. Thus direction is an
important managerial ruction in building sound
industrial and human relations besides securing
employee contributions. Coordination deals with
the task of blending efforts in order to ensure
successful attainment of an objective. The
personnel manager has to coordinate various
managers at different levels as far as personnel
functions are concerned. Personnel management
 function should also be coordinated with other
functions of management like management of
materials, machine and money.

4. Controlling: After planning, organizing, directing

the various activities of the personnel
management. At this point the performance is to
be verified in order to know that the personnel
functions are performed in conformity with the
plans and directions. Controlling involves
checking, verifying and comparing of the actual
with the plans, identification or deviations if any
and correcting the identified deviations. Thus
action and operation are adjusted to pre-
determined plans and standards through control.
Auditing, training programs, analyzing labor
turnover records, directing morale surveys.
Conducting separation interview are some of the
means for controlling the personnel management
functions.

Operative Functions:

1. Employment:

The first operative function of Human Resources

Management. Employment is concerned with
securing and employing the people possessing
required kind and level of human resources
necessary to achieve the organization objectives. It
covers the functions such as Job analysis, Human
resource planning, recruitment, selection,
placement, induction and internal mobility.

a) Job Analysis: It is the process of study and

collection of information relating to the operations
and responsibilities of a specific job.

b) Human Resources Planning: It is a process of

determination and assuring that the organization
will have an adequate number of qualified persons
available at proper times, performing jobs which
would meet the needs of the organization and
which would provide satisfaction for the individuals
involved.

c) Recruitment: It is the process of searching for

prospective employees and stimulating them to
apply for jobs in an organization.

d) Placement: It is the process of assigning the

selected candidate with the most suitable job. It is
matching of employee specifications with job
requirements.

e) Induction and orientation: Induction and

orientation are the techniques by which a new
employee is rehabilitated in the changed
surrounding and introduced to the practices,
policies, purposes and people etc., of the
organization.

2. Human Resources Development

 It is the process of improving, molding and
changing the skills, knowledge, creative ability,
aptitude, attitude, values, commitment etc., based
on present and future jobs and organizational
requirement, this function includes.,

a) Performance Appraisal: It is the systematic

evaluation of individuals with respect to their
performance on the job and their potential for
developments.

b) Training: It is the process of imparting to the

employees the technical and operating skills and
knowledge.

c) Management Development: It is the process of

designing and conducting suitable executive
development program so as to develop the
managerial and human relations skills of
employees.

d) Career Planning and Development: it is the

planning o one’s career and implementation of
career plans by means of education, training, Job
search and acquisition of work experiences.

3. Internal Mobility

It includes vertical and horizontal movement of an

employee within an organization it consist of
transfer, promotion and demotion.
a) Transfer: It is the process of placing employees
in the same level jobs where they can be utilized
more effectively in consistence with their
 potentialities and needs of the employees and
organization.

b) Promotions: It deals with upward reassignment

given to an employee in the organization to
occupy higher position which commands better
status and/or pay keeping in view the human
resources of the employees and the job
requirements.

c) Demotion: It deals with downward reassignment

to an employee in the organization.

4. Organization Development

It is a planned process designed to improve

organization effectives and health through
modification in individual and group behaviors,
culture and systems of the organization using
knowledge and technology of applied behavioral
science.

5. Compensation

It is the process of providing adequate, equitable

and fair remuneration to the employees. It includes
job evaluation, wage and salary administration,
incentives, bonus, fringe benefits, social security
measures etc.,

a) Job Evaluation: It is the process of determining

relative worth of Jobs.
b) Incentives: It is the process of formulating,
administering and reviewing the schemes of
financial incentives in addition to regular
payment of wages and salary.

c) Bonus: It includes payment of statutory Bonus

according to the payment of Bonus act 1965 and
its latest amendments.

d) Fringe Benefits : Management provides these

benefits to motivate the employees and to meet
life’s contingencies.

6. Social Security Measures

Management provides social security to their

employees in addition to the fringe benefits. These
measures include:

a) Workmen’s compensation to those workers who

involve in accidents.
b)Maternity benefits to women employees
c) Sickness benefits and medical benefits
d)Disablement benefits/allowance
e) Dependent benefits
f) Retirement benefits

7. Human Relations

Practicing various personnel/human resources

policies, and program like employment,
development and compensation and interaction
among employees creates a sense of relationship
between the individual worker and management,
 among workers and trade unions and
managements.

It is the process of interaction among human

beings. Human relations is an area of management
practice in integrating people into work situation in
a way that motivates them to work together
productively, cooperatively and with economic
psychological and social satisfaction.

Effectiveness of Human Resources

Management

Effectiveness of various personnel programs and

practices can be measured or evaluated by means of
organizational health and human resource
accounting Etc.,

Organizational Health: Organizational health may be

studies through the result of employees’ contribution
to the organization and the employee job
satisfaction. The result of the employee satisfaction
can be understood by labor turnover, absenteeism,
commitment and the like low rate of absenteeism
and specific and high rate of employee commitment
most probably indicate employee satisfaction about
the job and the organization.

Employee contribution to the organization goals can

be measured through employee productivity of
different types.
Human resources Accounting, Audit and research:
effectiveness of human resources management can
also be found out through human resource
accounting, audit and research.

The effectiveness in performing personnel and

human resources management function, results in
contributing to the attainment of the objectives of
the organization, individual employees and the goals
of the society and/or government. The objectives of
personnel and human resources management are
formulated on the basis of organization objectives,
individual employee goals, social goals and the
functional analysis of personnel and human
resources management.

Hence considering the above aspects and objectives

of the Human Resources Management it proves that
the Management of Human Resource is essential for
the prosperity and welfare of an organization, as well
as a society and a nation.