INTRODUCTION:

Today, business market is very complicated due to diversified business

world . Also importance of total quality management put emphasis on
competition market . As a result the essence of HRM is introduced in today’s
organization and know that . HRM set up this job by virtue of job evaluation : job
analysis & job design and also ensures the HR laws and keeps in organization
mind about government rules & regulations .

The HR department of today organization deals with total systems

of organization HR officer’s job is to make the HRM systems pretty much accurate
, in order to ensure that , all other factors related to organization are handled
quite effectively . Therefore , HR officer has to concern about dealing with HRM
system as well as performing management due to the important of cost
furthermore , he has to make the image of the company more attractive , nice
working , good benefit & compensation .

NATURE OF HRM :
Human resource is one of the most important factors in the banking
industry .

1 . It involves procurement , development , maintenance of human resource

2. It helps to achieve individual , organization and social objectives

3. Human Resource Management is a multidisciplinary subject . It includes the

study of management , psychology , communication , economics and sociology .

4. It involves team spirit and team work because HRM is all about people.

5. It should be action oriented approach and deals with polices or practices for
the management , psychology , communication , economics and sociology .

6. HRM is universal in nature and it is present in all types of management i.e.

Government , business, education , health , recreation or social etc .

7. HRM is directed towards attainment of organization goals by strategic

deployment of capable work force and personnel techniques.

8. It is continuous process. It has to regularly assess the human resources

requirement of the organization and plan to meet human resources needs of the
organization .

HR function in banks is not different from that in other organizations. It is a

continuous process that seeks to ensure the development of employee
competencies , dynamism motivation and effectiveness , in a systematic and
planned manner . Being a service resource is the life blood of any organization
without which every other resource is of no use. Management of people and
management of risk are two key challenges facing bank . Efficient risk
management may not be possible without efficient and skilled manpower .
Banking industry is facing an acute shortage of skilled manpower . Human
resources are becoming scarce in both in quality and quantity .

This report is based on practical working experience at the COMPANY NAME as

part of intership program.

PROJECT TITLE – STUDY ON HUMAN RESOURCE MANAGEMENT PRACTICE

COMPANY NAME - ………………………….

Report based on activities of HRM practices in COMPANY NAME . The main
function of
 INTRODUCTION

HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is an operation in companies designed to maximize
employee performance in order to meet the employer's strategic goals and objectives. HRM focuses on
management of people within companies, emphasizing on policies and systems. In short, HRM is the
process of recruiting, selecting employees, providing proper orientation and induction, imparting proper
training and developing skills. HRM also includes employee assessment like performance appraisal,
facilitating proper compensation and benefits, encouragement, maintaining proper relations with labour
and with trade unions, and taking care of employee safety, welfare and health by complying with labour
laws of the state or country concerned. Human Resource Management (HRM) is a relatively new
approach to managing people in any organization. People are considered the key resource in this
approach. it is concerned with the people dimension in management of an organization. Since an
organization is a body of people, their acquisition, development of skills, motivation for higher levels of
attainments, as well as ensuring maintenance of their level of commitment are all significant activities. 7
These activities fall in the domain of HRM. Human Resource Management is a process, which consists of
four main activities, namely, acquisition, development, motivation, as well as maintenance of human
resources. Scott, Clothier and Spiegel have defined Human Resource Management as that branch of
management which is responsible on a staff basis for concentrating on those aspects of operations
which are primarily concerned with the relationship of management to employees and employees to
employees and with the development of the individual and the group. Human Resource Management is
responsible for maintaining good human relations in the organization. It is also concerned with
development of individuals and achieving integration of goals of the organization and those of the
individuals.

FEATURES OF HUMAN RESOURCE MANAGEMENT

Human Resource Management as a discipline includes the following features −

• It is pervasive in nature, as it is present in all industries.

• It focuses on outcomes and not on rules.

• It helps employees develop and groom their potential completely.

• It motivates employees to give their best to the company.

• It is all about people at work, as individuals as well as in groups.

• It tries to put people on assigned tasks in order to have good production or

results.

• It helps a company achieve its goals in the future by facilitating work for

competent and well-motivated employees.

• It approaches to build and maintain cordial relationship among people

working at various levels in the company.

Basically, we can say that HRM is a multi-disciplinary activity, utilizing

knowledge and inputs drawn from psychology, economics, etc.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT:

The main functions of human resource management are classified into
two categories:

(a) Managerial Functions

(b) Operative Functions

1. Managerial Functions - Following are the managerial functions

of Human Resources Management. a. Planning: The planning function of
human resource department pertains to the steps taken in determining in
advance personnel requirements, personnel programmers, policies etc. After
determining how many and what type of people are required, a personnel
manager has to devise ways and means to motivate them. b. Organization :
Under organization, the human resource manager has to organize the
operative functions by designing structure of relationship among jobs,
personnel and physical factors in such a 10 way so as to have maximum
contribution towards organizational objectives. In this way a personnel
manager performs following functions : (a) preparation of task force; (b)
allocation of work to individuals; (c) integration of the efforts of the task
force; (d) coordination of work of individual with that of the department. c.
Directing: Directing is concerned with initiation of organized action and
stimulating the people to work. The personnel manager directs the activities
of people of the organization to get its function performed properly. A
personnel manager guides and motivates the staff of the organization to
follow the path laid down in advance d. Controlling: It provides basic data for
establishing standards, makes job analysis and performance appraisal, etc. All
these techniques assist in effective control of the qualities, time and efforts of
workers. 11 i. Operative Functions : The following are the Operative Functions
of Human Resource Management 1. Procurement of Personnel : It is
concerned with the obtaining of the proper kind and number of personnel
necessary to accomplish organization goals. It deals specifically with such
subjects as the determination of manpower requirements, their recruitment,
selecting, placement and orientation, etc ii. Development of Personnel :
Development has to do with the increase through training, skill that is
necessary for proper job performance. In this process various techniques of
training are used to develop the employees. Framing a sound promotion
policy, determination of the basis of promotion and making performance
appraisal are the elements of personnel development function. iii.
Compensation to Personnel : Compensation means determination of adequate
and equitable remuneration of personnel for their contribution to
organization objectives. To determine the 7 monetary compensation for
various jobs is one of the most difficult and important function of the
personnel management. A number of decisions are taken into the function,
viz., job-evaluation, remuneration, policy, inventive and premium plans, bonus
policy and co-partnership, etc. It also assists the organization for adopting the
suitable wages and salaries, policy and 12 iv. payment of wages and salaries in
right time. v. Maintaining Good Industrial Relation: Human Resource
Management covers a wide field. It is intended to reduce storifies, promote
industrial peace, provide fair deal to workers and establish industrial
democracy. It the personnel manager is unable to make harmonious relations
between management and labor industrial unrest will take place and millions
of man-days will be lost. If labor management relations are not good the moral
and physical condition of the employee will suffer, and it will be a loss to an
organization visa-visa nation. Hence, the personnel manager must create
harmonious relations with the help of sufficient communication system and
co-partnership. vi. Record Keeping : In record-keeping the personnel manager
collects and maintains information concerned with the staff of the
organization. It is essential for every organization because it assists the
management in decision making such as in promotions. vii. Personnel
Planning and Evaluation : Under this system different type of activities are
evaluated such as evaluation of performance, personnel policy of an
organization and its practices, personnel audit, morale, survey and
performance appraisal, etc. 13 IMPORTANCE OF HUMAN RESOURCE
MANAGEMENT Human Resource Management has a place of great
importance. According to Peter F. Drucker, ―The proper or improper use of
the different factors of production depend on the wishes of the human
resources. Hence, besides other resources human resources need more
development. Human resources can increase cooperation but it needs proper
and efficient management to guide it‖. Importance of personnel management
is in reality the importance of labor functions of personnel department which
are indispensable to the management activity itself. Because of the following
reasons human resource management holds a place of importance. 1. It helps
management in the preparation adoption and continuing evolution of
personnel programmers and policies. 2. It supplies skilled workers through
scientific selection process. 3. It ensures maximum benefit out of the
expenditure on training and development and appreciates the human assets.
4. It prepares workers according to the changing needs of industry and
environment. 14 5. It motivates workers and upgrades them so as to enable
them to accomplish the organization goals. 6. Through innovation and
experimentation in the fields of personnel, it helps in reducing casts and helps
in increasing productivity. 7. It contributes a lot in restoring the industrial
harmony and healthy employer-employee relations. 8. It establishes
mechanism for the administration of personnel services that are delegated to
the personnel department. Thus, the role of human resource management is
very important in an organization and it should not be undermined especially
in large scale enterprises. It is the key to the whole organization and related to
all other activities of the management i.e., marketing, production, finance etc.
Human Resource Management is concerned with the managing people as an
organizational resource rather than as factors of production. It involves a
system to be followed in business firm to recruit, select, hire, train and
develop human assets. It is concerned with the people dimension of an
organization. The attainment of organizational objectives depends, to a great
extent, on the way in which people are recruited, developed and utilized by
the management. Therefore, proper coordination of human 15 efforts and
effective utilization of human and others material resources is necessary