Module 1: Introduction to Human Resource Management

1.Concept of HRM
Human Resource Management is a process of bringing people and organization
together so that the goals of each are met. It is the part of the management
process which is concerned with the management of human resources in an
organization. It tries to secure best from the people by winning their whole
hearted co-operation. In short, it may be defines as the art of procurement,
developing and maintaining competent workforce to achieve the goals of an
organization in an effective and efficient manner.
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 labor and with trade unions, maintaining
employee’s safety, welfare and health by complying with labor laws of concern
state or country. Many great scholars had defined human resource
management in different ways and with different words, but the core meaning
of the human resource management is how to manage people or employees in
the organization.
According to Byars and Rue , “HRM encompasses those activities that are
designed to provide for coordinate the human resources of organizational”.
According to Invancevich and Glueck, “HRM is concerned with the most
effective use of people to achieve organizational and individual goals”.
According to Edwin Flippo , HRM as “planning, organizing, directing, controlling
of procurement, development, compensation, integration, maintenance and
separation of human resources to the end that individual, organizational and
social objectives are achieved.”
2.Scope of HRM
The scope of HRM is indeed vast. All major activities in the working life of a
worker – from the time of his or her entry into an organization until he or she
leaves the organizations comes under the purview of HRM. The major HRM
activities include HR planning, job analysis, job design, employee hiring,
employee and executive remuneration, employee motivation, employee
maintenance, industrial relations and prospects of HRM.
The scope of Human Resources Management extends to:
 All the decisions, strategies, factors, principles, operations, practices,
functions, activities and methods related to the management of people as
employees in any type of organization.
 All the dimensions related to people in their employment relationships, and
all the dynamics that flow from it.
The scope of HRM is really vast. All major activities and the working life of a
worker – from the time of his or her entry into an organization until he or she
leaves it comes under the purview of HRM. The scope of HRM are as follows:
a) Human Resource Planning: The objective of HR Planning is to ensure that
the organization has the right types of persons at the right time at the right
place. It prepares human resources inventory with a view to assess present
and future needs, availability and possible shortages in human resource.
Thereupon, HR Planning forecast demand and supplies and identify sources of
selection. HR Planning develops strategies both long-term and short-term, to
meet the man-power requirement.
b) Design of Organization and Job: This is the task of laying down organization
structure, authority, relationship and responsibilities. This will also mean
definition of work contents for each position in the organization. This is done
by “job description”. Another important step is “Job specification”. Job
specification identifies the attributes of persons who will be most suitable for
each job which is defined by job description. Personnel Research and
Information System Human resource planning Design of the Organization and
Job Selection and Staffing Training and Development Organizational
Development Employee Assistance Compensation and Benefits Union/Labour
Relations Human resource management.
c) Selection and Staffing: This is the process of recruitment and selection of
staff. This involves matching people and their expectations with which the job
specifications and career path available within the organization.
d) Training and Development: This involves an organized attempt to find out
training needs of the individuals to meet the knowledge and skill which is
needed not only to perform current job but also to fulfil the future needs of
the organization.
e) Organizational Development: This is an important aspect whereby
“Synergetic effect” is generated in an organization i.e. healthy interpersonal
and inter-group relationship within the organization.
f) Compensation and Benefits: This is the area of wages and salaries
administration where wages and compensations are fixed scientifically to meet
fairness and equity criteria. In addition labour welfare measures are involved
which include benefits and services.
g) Employee Assistance: Each employee is unique in character, personality,
expectation and temperament. By and large each one of them faces problems
everyday. Some are personal some are official. In their case he or she remains
worried. Such worries must be removed to make him or her more productive
and happy.
h) Union-Labour Relations: Healthy Industrial and Labour relations are very
important for enhancing peace and productivity in an organization. This is one
of the areas of HRM.
i) Personnel Research and Information System: Knowledge on behavioral
science and industrial psychology throws better insight into the workers
expectations, aspirations and behaviour. Advancement of technology of
product and production methods have created working environment which are
much different from the past. Globalization of economy has increased
competition many fold. Science of ergonomics gives better ideas of doing a
work more conveniently by an employee. Thus, continuous research in HR
areas is an unavoidable requirement. It must also take special care for
improving exchange of information through effective communication systems
on a continuous basis especially on moral and motivation.
3.Nature of HRM
 Managerial Proces
Human resource management is a vital part of management that includes
planning, organising, staffing, directing, and controlling human resources to
achieve organisational success. It is a managerial process that effectively
utilises human resources to attain organisational goals and objectives.
 Both Art and Science
Human resource management is a mixture of both art and science. It is an art
as it deals with qualitative attributes like creativity, knowledge, skills,
and talent of the personnel. In simple words, HRM is the art of getting things
done by others effectively. HRM is a science as it requires different scientific
techniques for activities like recruitment, selection, training, and appraisal of
employees.
 Pervasive Force
Human resource management, being an inherent part of an organisation, is
pervasive in nature. It means that HRM is present in different functional areas
of management, like finance, marketing, and production, in all commercial and
non-commercial enterprises. Everyone in the organisation, from the top to the
lowest level, must perform HRM functions regularly.
 Improve Employee Relations
“In order to build a rewarding employee experience, you need to understand
what matters most to your people.” – Julie Bevacqua.
Human resource management is concerned with building healthy relationships
between employees at various organisational levels. Every individual has
different needs, goals, and expectations. HRM deals with these individual
factors and motivates employees to reach their maximum potential. Moreover,
it creates an organisational culture that fosters learning and growth.
 People-Centred
The nature of human resource management is people-centred and relevant in
all types of organisations. It is concerned with every employee from the top to
the bottom level. HRM value people both as individuals and as a group.
Furthermore, it encourages people to develop their full potential and fulfil
individual and organisational goals.
 Development-Oriented
The development of the workforce in an organisation is crucial to the nature of
human resource management. HR managers use various tools to help
employees understand their strengths and unleash their potential. Regular
training programs can benefit employees by improving their skills. Also,
monetary and non-monetary reinforcement can help people stay motivated to
perform better.
 Action Oriented
While human resource management does follow the rules and policies, its
main focus is on action and results rather than rules. A human resource
manager stresses the importance of providing effective solutions for employee
problems, tensions, or controversies.
 Forward-Looking
Sustaining in the competitive business environment requires organisations to
plan long-term strategies. HRM is a future-oriented approach that evaluates
the human resource requirements and ensures the availability of required
personnel in the right place at the right time. With the forward-looking nature
of human resource management, managers prepare employees by motivation,
training, and development to face current and future challenges in the
changing business environment.
 Continuous Process
Human resource management is not a ‘one-time’ function. Rather, it is a
never-ending process that must be performed continuously to achieve
organisational objectives effectively. It involves a series of tasks, beginning
with identifying the human resource requirement and continuing with
recruitment, training, performance evaluation, and appraisal.
 Basis of Other Functional Areas
HRM is the basis of all other functional areas of management, such as finance,
production, and marketing. The effectiveness of each of these departments
depends on the effectiveness of their human resource management.
 Interdisciplinary Function
Human resource management is multidisciplinary in nature. HR managers
utilise knowledge and inputs from various disciplines to manage the
workforce effectively. The five major disciplines in HRM include management,
communication, psychology, sociology, and economics. In order to effectively
manage human resources, one must understand the contribution of all these
disciplines to HRM.
4. Objectives of HRM
The primary objective of human resource management is to fulfil the human
capital requirements of an organisation by placing personnel in the right
position at the right time. Moreover, it aims to achieve maximum employee
development and contribute to realising organisational goals. The four
main objectives of HRM include:-
 Organisational Objectives
In an organisation, HRM’s objective is to maintain a competent workforce.
How? By planning, recruiting, selecting, training, and developing the human
resources for the organisation’s growth, expansion, and survival.
Another critical organisational objective of HRM includes facilitating other
departments and helping them function smoothly. The action-oriented nature
of human resource management assists an organisation in achieving its goals.
As an HR manager, you should ensure the effective utilisation of human
resources to help the organisation reach its goals.
 Functional Objectives
Human resource management is responsible for coordination within and
among different functional departments of the organisation. It organises and
allocates the resources to achieve business objectives effectively.
The objective of HRM is to provide every functional department with
employees who possess the required set of skills and knowledge. To fulfil this
very nature of human resource management, HR managers must ensure the
timely completion of functions by the workforce. Moreover, it is important to
continuously provide employees with opportunities and direct them toward
the organisation’s goals.
 Societal Objectives
HRM is responsible for ensuring compliance with society’s legal and ethical
standards at every level of the organisation. The activities of HRM should be
socially responsible and fulfil society’s needs, demands, and challenges.
Therefore, HR managers must ensure that the available resources are used for
society’s benefit.
To achieve this objective, HR managers develop programs that meet
employees’ psychological, social, ethical, and economic needs. Some examples
of these programs include equal opportunities, compensation and benefits,
and community relations. By fulfiling the societal objectives of employees,
HRM aims to motivate and retain productive employees.
 Personal Objectives
Employees’ long-term association and commitment with an organisation
depend on their ability to achieve personal goals. Therefore, HRM stresses the
importance of fulfilling employees’ personal objectives and increasing their
contribution to the organisation.
To prevent employee performance deterioration, HR managers must help the
workforce create a work-life balance. They should also be provided with
adequate training and feedback on their performance. Why? Because it helps
employees identify weak areas and rectify them.
Some other objectives of human resource management include the following:-
 Foster a Better Work Culture
Improving employee relations is an inherent nature of human resource
management. One of the most important aspects of employee relations is their
work environment. Effective HRM requires developing strategies that promote
a better work culture. Some examples of fostering a work culture include
developing and maintaining healthy relations between team members,
empowering the employees, and adopting quick onboarding processes.
 Adopt Tools for Team Integration
Effective team coordination is one of the major objectives of human resource
management. Higher productivity is the result of proper connections between
employees in the organisation. How to achieve that, you ask? By ensuring easy
communication between individuals and groups at various enterprise levels!
Therefore, HR managers search for tools or portals that improve data
availability and make integration smooth and easier.
 Increase Employee Engagement
While every department in the company can and should implement employee
engagement programs, HRM is vital to successful employee engagement
measures. HR managers organise events, activities, and celebrations within the
organisation that not only helps in team development and employee
engagement but also foster employee confidence. Moreover, boosting
employee engagement can help HR managers impact employee retention,
well-being, and productivity.
5.Importance of HRM
1.Maximizing Productivity and Profitability:
It really focuses on both the quality and quantity of employees, as it provides
them with opportunities. Opportunities to grow in their respective domains. As
a result of these opportunities, employees are highly motivated and meet the
established goals. Hence, it allows the organization to capitalize, create a
presence in the market, and enhance profitability.
2.High Quality of Work:
A positive work environment, employee recognition, and a sense of
responsibility motivate employees to give their best, which makes sure to yield
a high quality of work as it helps to achieve set goals. Also, hiring the right
people and making sure to train them well is important for getting the best
quality work. This is crucial, as it helps the employees learn and quickly adapt
to the organization’s working culture.
3.Helping employees achieve the set goals:
Human resource management is important in achieving the set goals, as
companies provide compensation, benefits, and rewards to recognize their
employees. These activities help motivate employees to give their best. It also
improves employee morale and gives employees new energy to perform
better.
4.Improving Teamwork:
HR managers need to make sure every employee feels important and worthy
in every department. They emphasize the importance of HRM in teamwork
and team spirit in the workplace. So, that it will make a great contributions to
get the desired results.
5.Reducing the gap between demand and supply of Human resources:
The role of HR management in an organization extends beyond personnel
management. So, to include determining the sufficiency of the pool of
available human resources. HR managers organize hiring and selection
campaigns to fill any employment gaps that may exist within the company.
Similar to laying off ineffective employees, human resource management is
responsible for this.
6.Building a corporate image:
For businesses, sustainability involves preserving their storied, ideal reputation
in the marketplace. Everyone wants to be associated with a business that is
well-known for its ethical behavior. Also, which offers commitment to the
community and its employees. Contrarily, businesses that treat their
employees more like resources than as people are in danger of failing
completely.
7.Conflict Resolution
Conflicts are bound to arise when a group of people are working together,
whether it is a small group or a big team. Conflicts are inevitable and must be
resolved quickly as they may hamper the smooth functioning of the
organization. HR management is needed to resolve such conflicts
systematically with an unbiased approach.
6.Difference between Personnel management and Human resource
management:
The main difference between Personnel Management and Human Resource
Management lies in their scope and orientation. While the scope of personnel
management is limited and has an inverted approach, wherein workers are
viewed as tool. Here the behavior of the worker can be manipulated as per the
core competencies of the organization and are replaced when they are worn-
out.
On the other hand, human resource management has a wider scope and
considers employees as the asset to the organization. It promotes mutuality in
terms of goals, responsibility, reward etc. that will help in enhancing the
economic performance and high level of human resource development.
Personnel Management is a part of management that deals with the
recruitment, hiring, staffing, development, and compensation of the workforce
and their relation with the organization to achieve the organizational
objectives. The primary functions of the personnel management are divided
into two categories:
 Operative Functions: The activities that are concerned with
procurement, development, compensation, job evaluation, employee
welfare, utilization, maintenance and collective bargaining.
 Managerial Function: Planning, Organizing, Directing, Motivation,
Control, and Coordination are the basic managerial activities performed
by Personnel Management.
Human Resource Management is that specialized and organized branch of
management which is concerned with the acquisition, maintenance,
development, utilization and coordination of people at work, in such a manner
that they will give their best to the enterprise. It refers to a systematic function
of planning for the human resource needs and demands, selection, training,
compensation, and performance appraisal, to meet those requirements.
Human Resource Management is a continuous process of ensuring the
availability of eligible and willing workforce i.e. putting the right man at the
right job. In a nutshell, it is an art of utilizing the human resources of an
organization, in the most efficient and effective way.
The following are the major differences between Personnel Management and
Human Resource Management:
1.The part of management that deals with the workforce within the enterprise
is known as Personnel Management. The branch of management, which
focuses on the best possible use of the enterprise’s manpower is known as
Human Resource Management.
2.Personnel Management treats workers as tools or machines whereas Human
Resource Management treats it as an important asset of the organization.
3.Human Resource Management is the advanced version of Personnel
Management.
4.Decision Making is slow in Personnel Management, but the same is
comparatively fast in Human Resource Management.
5.In Personnel Management there is a piecemeal distribution of initiatives.
However, integrated distribution of initiatives is there in Human Resource
Management.
6.In Personnel Management, the basis of job design is the division of work
while, in the case of Human Resource Management, employees are divided
into groups or teams for performing any task.
7.In PM, the negotiations are based on collective bargaining with the union
leader. Conversely, in HRM, there is no need for collective bargaining as
individual contracts exist with each employee.
8.In PM, the pay is based on job evaluation. Unlike HRM, where the basis of
pay is performance evaluation.
9.Personnel management primarily focuses on ordinary activities, such as
employee hiring, remunerating, training, and harmony. On the contrary,
human resource management focuses on treating employees as valued assets,
which are to be valued, used and preserved.
BASIS FOR
PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
COMPARISON
The aspect of management that is The branch of management that focuses on
concerned with the work force and the most effective use of the manpower of an
Meaning
their relationship with the entity is entity, to achieve the organizational goals is
known as Personnel Management. known as Human Resource Management.
Approach Traditional Modern
Treatment of manpower Machines or Tools Asset
Type of function Routine function Strategic function
Basis of Pay Job Evaluation Performance Evaluation
Management Role Transactional Transformational
Communication Indirect Direct
Labor Management Collective Bargaining Contracts Individual Contracts
Initiatives Piecemeal Integrated
Management Actions Procedure Business needs
Decision Making Slow Fast
Job Design Division of Labor Groups/Teams
Primarily on mundane activities like
Treat manpower of the organization as valued
Focus employee hiring, remunerating,
assets, to be valued, used and preserved.
training, and harmony.

7.Role, Duties and responsibilities of HR Manager

It is important for the HR manager to place his role on the same lines as that of
the organization. Within this environment, the HR professional has to be a
strategic partner, an employee advocate, and a change mentor to be able to
survive the changing environment. Depending on the size of the organization,
an HR manager has the responsibility of looking at all the functions that deal
with the needs and activities essential for people management. Some of roles
and responsibilities are as follows:
1. Recruiting and hiring – It is a process of discovering sources of manpower
and employing effective measures for attracting that manpower in adequate
numbers to facilitate the selection of an efficient working force in an
organization.
2. Training and development – These processes help in enhancing and
enabling the capacities of people to build their strengths and confidence in
order for them to deliver more effectively.
3. Competency development – Competency is a cluster of related knowledge,
skills, and attitude that affect a major part of one’s job. It can be improved by
means of training and development.
4. Organization development – It is an organization-wide effort to increase its
effectiveness and viability and move towards growth.
5. Communication – It is an activity that involves conveying meaningful
information. At all times, the HR must convey all relevant information to the
employees.
6. Performance management – It focuses on improving the performance of
the organization, employees, and various other services.
7. Employee relations – This is a concept that works towards bettering the
relations among the employees, as well as between the employee and the
management.
8. Coaching, mentoring, and counselling – It is a practice of supporting an
individual and helping him overcome all his issues in order to perform better.
9. Policy recommendation – Policy recommendations help to streamline
management practices and reduce employee grievances. For example, a
manager who is more than 35 years and, who possesses a minimum
experience of 7 years, is entitled to receive the benefits stated in the
company’s administrative manual.
10. Wages, salary, and compensation benefits – These benefits are provided to
the employees to keep them motivated towards their work and the
organization.
11. Talent management and employee engagement – It is a management
concept that works towards retaining the talent by engaging the person in a
way which would further the organization’s interest.
12. Leadership development – This activity refers to enhancing the quality and
efficiency of a leader in an organization.
13. Team building – It focuses on bringing out the best in a team to ensure
development of an organization, and the ability to work together closely to
achieve goals.
14. Networking and partnering – It is also important to build relations with the
external stakeholders, including the customers and suppliers for better
business.

8.Structure of HR Department
Three of the most common organizational structure types:
1. Functional Organizational Structure
Functional organizational structure is the most common organizational
structure With that in mind, here are three examples of HR department team
structures within an organization. The structure of HR that includes functional
areas such as recruiting and staffing, benefits, compensation, employee
relations, HR compliance, organizational design, training and development,
human resource information systems (H.R.I.S.) and payroll.

2. Flat Organizational Structure

Opposite of the functional organizational structure, flat organizational
structures often have few, or no, people in middle management. It is literally
flat meaning there are less managerial layers, so employees and managers all
work on a level playing field. One VP of HR might have seven direct reports
each with an area of expertise like recruiting, benefits, compensation payroll,
HR business partner(s) and training and development. All of these individuals
directly report to the VP of HR, are the same level and have no direct reports
themselves.
This model eliminates workplace politics and red tape to distributing
responsibilities and power equally across the HR department giving everyone a
hand in the decision-making process. This is common in small companies and
startups.
3. Matrix Organizational Structure
Matrix organizational structure is a company structure in which the reporting
relationships are set up as a grid, or matrix, rather than in the traditional
hierarchy. This structure is great for project management because it offers
more flexibility and collaboration. In HR, different teams work with each other.
One manager doesn’t oversee a single team but employees from different
areas report to a functional manager. For HR, this type of structure is common
for field HR leaders where you are part of a project team. Having worked in
retail, I would be the Director of HR for the Central Region and have a small
team to support that region in roles like recruiter, HRBP, and trainer.

9.Challenges of HRM
Challenges Of HRM
1. Environmental Challenges
2. Organizational Challenges
3. Individual Challenges
I]Environmental Challenges
The environmental challenges are related to the external forces that exist in
the outside environment of an organization and can influence the performance
of the management of the organization. These external forces are almost out
of control of the management of the organization.
These can be regarded as threats to management and should be handled in a
proactive manner. Following are the list of human resource management
challenges that are considered environmental challenges.
1.Rapid Change
The world is changing at a faster rate because change is constant for several
centuries. So the management of the organizations should be quickly adaptive
to the changing requirement of the environment otherwise they become
obsolete from the market.
The human resource management of an organization plays a basic role in
response to environmental change. The HR department should adopt such
policies that can avail the new opportunities of the environment and keep the
organization away from the newly emerging threats.
2.Workforce Diversity
The changing environment provides both the opportunities and threats to the
human resource management of the organization. The HR manager should
adopt such policies that can make possible the diverse workforce of
employees. Although on one hand diversity creates a big problem, in the long
run, the survival and performance of the organization is flourished.
3.Globalization
One of the serious issues that today’s organizations are facing is the issue of
globalization. The world is converting into a global business and severe
competition is started between domestic and foreign companies. Such
competition results in laying off the effective workforce of the organization.
The HR department can play an important role in keeping the culture of the
organization as global and wider.
4.Legislation
It is the old environmental challenge that is faced by the organization for many
decades. There are certain labor laws that are declared by the government for
the benefits of the working employees. Some of these laws are
disadvantageous to the interests of the organizations so it is one of the big
challenges for the HRM to implement all those labor laws within the
organizations. If any such law is violated, serious actions are taken by the
relevant government authority that may result in serious penalties for the
management of the organization.
5.Technology
Technology is also growing at great speed especially in the field of computer
and telecommunication. New methods are emerging that quickly dominate the
older ones and make them obsolete. Therefore the skills required by the
employees also change with the changing technology and this would compel
the worker to advance the skills three to four times throughout their working
lives. So there comes a burden on the HR department to constantly update the
skills and expertise of its employees.
6.Lack of Skills
The service sector development is expanding due to many reasons like change
in the tastes and preferences of customers, technological change, legal change,
etc. All of this affected the structure and managing style of business
organizations.The skills required in the employment of the service sector are
also advancing but the graduates of the technical colleges and universities are
groomed according to the latest requirements. Therefore most of the
employees lack the standard required skills to perform their duties and it
becomes a big challenge for HRM to properly train these new and old
employees to become an efficient and effective worker.
ii}Organizational Challenges
The organizational challenges for HRM are related to the factors that are
located inside the organization. Although these challenges are evolved as a
byproduct of the environmental challenges these can be controlled by the
management of the organization to much extent.
The proactive HR managers take notice of such challenges in advance and take
corrective measures before these would convert into serious issues. The
human resource management challenges within the organization include
competitive position and flexibility, organizational restructuring and issues of
downsizing, the exercise of self-managed teams, development of suitable
organizational culture etc.
When the workforce of an organization is effectively used in combination with
other factors of production, the opportunities of the environment are availed
and the threats are eliminated. The competitive position of the organization
can be influenced by the policies of HR in the following ways.
 Controlling Costs
 Improving Quality
 Restructuring
Controlling Costs
An organization can avail of the competitive position by lowering its cost and
strengthening its cash flows. For this purpose, the labor cost of the
organization is minimized through an effective compensation system that
adopts innovative reward strategies for good performances. In this way, the
favourable behaviours of the employees are rewarded so the organization
would get the ultimate advantage.
Moreover, the policies of compensation should keep the labor cost under
control. Effective employees should be selected that keep with the
organization for longer duration and proper training should also be provided to
these employees. All of these efforts would limit the cost of labor.
Improving Quality
Quality improvement can lead an organization towards a competitive
advantage. The total quality management programs are employed that
improve all the processes within the organization which would ultimately
result in the improvement of the final product or service.
Restructuring
Another technique is the restructuring of the organization in which the
methods of performing different functions are altered positively. In the case of
the HR department, the majority of functions are still performed within the
organization.
In some organizations, the major functions of the HR department are now
transferred to the other parties in the shape of outsourcing, shared service
centers, etc. The sizes of the HR department in those organizations are
shrinking because most of the functions are performed by outsiders. But in
most organizations, the HR manager performs all the relevant functions of
HRM. The HR department is now involved in mission-oriented and strategic
activities.
iii}Individual Challenges
The decisions related to the specific individual employees are included in
the individual challenges for the HRM. The organizational issues are also
affected by the fact that how employees are treated within the organizations.
The problems related to the individual level are as follows.
1. Productivity
2. Empowerment
3. Ethics and social responsibility
4. Job insecurity
5. Matching people and organization
Productivity
Productivity is defined as the measure of the value that an employee can add
to the final product or service of the organization. The increased output per
employee is reflected as increased productivity. Ability and motivation are two
important factors that affect employee productivity.
The ability of the employee can be improved by the hiring and replacement
along with the proper training and career development. On the other hand,
high quality of work-life serves as an accelerator to the motivational factor of
the employees.
Empowerment
In modern days, many organizations make changes in such a way that their
individual employees exert more control over their work as compared to their
superiors. This individual control of employees is called empowerment which
helps the employees to work with enthusiasm, commitment and learn new
skills because they are more normal decisions about their work by themselves
and hence enjoy their work.
Ethics and Social Responsibility
Under this challenge, the organizations make an effort to benefit some portion
of society. This is now considered to be the social responsibility of the
organization to show favorable behavior towards society. Ethics serves as the
basic principle for the social behavior of the organizations.
Within organizations, the HR departments develop a code of conduct and
principles of the code of ethics that serve as guidance for the personal
behavior of the employees of the organizations. The employees also expect
management to show favorable decisions.
Job Insecurity
In recent years, restructuring and downsizing develops a sense of insecurity of
jobs within the employees of the organizations. How many employees only
desire to get a steady job rather than a job with a promotional future.
Even most successful organizations lay off their employees in the period of cut-
throat competition. The stock market also shows favorable results when
layoffs have been made. All these things create fear among employees about
the insecurity of their jobs which would hinder their effective performance.
Matching People and Organizations
It has been proved from the research that the HR department contributes to
the profitability of the organization when it makes such policies of employee
selection in which those employees are selected and retained that best suits
the culture of the organization and its objectives.