HRM

• HRM is the art of Procuring, developing and maintaining competent workforce

to achieve organisational goals effectively.
• The process of employing people, developing their resources, utilising,
maintaining & compensating their service in tune with the job & organisational
requirements with a view to contribute to the goals of the organisation, individual
& the society.

DEFINITION

According to Wendell L French “ the human resource management refers to the

philosophy, policies, procedures, & practice related to the management of people within
an organisation.

According to Stephen P Robbins, HRM is a process consisting of the acquisition,

development, motivation & maintenance of human resources.

SCOPE OF HRM

The Scope of Human Resource management into the following aspects

1. The Personnel Aspect

This aspect of HRM is concerned with the manpower planning, recruitment,
selection, placement, induction, transfer, promotion, demotion, termination,
training & development, layoff & retrenchment, wage & salary administration,
incentives, productivity etc.
2. The Welfare Aspect:-
The welfare aspect is concerned with working conditions & amenities such as
canteens, crèches, rest rooms, lunch rooms, housing, transport, education,
medical help, health & safety, washing facilities recreation & cultural activities
etc.
3. The Industrial Aspect:-
This aspect is concerned with employees. It includes union management
relations, joint consultation, negotiating collective bargaining, grievance
handling, disciplinary actions, settlement of industrial disputes etc.
IMPORTANCE OF HRM

1. Importance for the Organisation:-

HRM is important for the organisation to the following:
• Good human resource practices help in attracting & retaining the best
people in the organisation.
• In order to make use of latest technology the appointment of right type of
persons is essential. The right people can be fitted into new jobs properly
only if the management performs its HR function satisfactorily.
• Globalisation has increased the size of the organisation who employ
thousands of employees in different countries. The performance of the
company depends upon the qualities of the people employed. This has
further increased the importance of HRM
• HR planning alerts the organisation to the types of people it will need in
the short , medium & long run.
• HR development is essential for meeting the challenges of future. The
importance of HRM has increased because of the shortage of really
managerial talent in the country.

2. Importance for the employees

• HRM stress on the motivation of employees by providing them various
financial & non-financial incentives.
• Right organisational climate is also stressed upon so that the employees can
contribute their maximum to the achievement of the organisational objectives.
• Effective management of HR promotes team wok & team spirit among
employees.
• It offers excellent growth opportunities to people who have the potential to rise.
• It also encourages people to work with diligence & commitment.

3. Importance for the society:-

Good HR efforts lead to productivity gains (ration of output to input) to the society,
since it enables the managers to reduce costs, save scarce resources, enhance profits
& offer better pay, benefits & working conditions to employees.
OBJECTIVES OF HRM

1) Societal Objectives :-
• To manage human resources in an ethical & socially responsible manner.
• To ensure compliance with legal & ethical standards.
• To minimise the negative impact of societal demands upon the
organisation.
2) Organisational Objective:-
• HR department, like any other department in an organisation, should
focus on achieving the goals of the organisation first. If it does not meet
this purpose, the HR department cannot exist in the long run.
• HR department should recognise its role in bringing about organisational
effectiveness.
• HRM is not an end in itself. It is only a means to assist the organisation
with its primary objectives.
3) Functional Objectives:-
• To maintain the HRM departments contribution at a level appropriate to
the organisation’s needs. Resources are wasted when HRM is either more
or less sophisticated to suit the organisation’s demands.
• The department’s level of service must be tailored to fit the organisation
it serves.
• HRM should employ the skills & abilities of the workforce efficiently.
It should aim at making the people’s strength more productive &
beneficial to the organisation.
• HRM should aim at providing the organisation with well trained & well
motivated employees.
4) Personnel Objectives
• HRM should increase employees job satisfaction to the fullest extent.
• HRM should also meet the self actualisation needs of the employees. It
should stimulate every employee to achieve his potential.
• HRM should assist the employees in achieving their personal goals, at
least in so far as these goals enhance the individual’s contribution to the
organisation.
• HRM should develop & maintain a quality of work life. It makes
employment in the organisation a desirable, personal & social situation.
Organisational performance can never be improved without the quality of
work life.
 • The HRM should also communicate HR policies to all employees. It will
help the HRM in tapping the ideas, opinions, feelings, & the views of the
employees.

PERSONNEL MANAGEMENT

Meaning:- it is the process of Planning, organising, compensation, integration &

maintenance o people for the purpose of contributing to organisational individual &
societal goals.

Personnel management can be defined as obtaining, using & maintaining a satisfied

workforce.

Definition:- Acc. to Flippo “ personnel management is the planning, organizing,

compensation, integration & maintenance of people for the purpose of contributing to
organisational, individual & societal goals.

Acc, to Brech “ personnel management is that part which is primarily concerned with
human resources of organisation.

DIFFERENCES BETWEEN PERSONNEL MANAGEMENT & HRM

PERSONNEL MANAGEMENT HRM

It is a traditional approach to managing It is modern approach to managing people
people in the organisation. in the organisation.
It focuses on personnel administration, It focuses on acquisition, development,
employee welfare, & labour relation. motivation & maintenance of HR in the
organisation.
It assumes people as input for achieving It assumes people as in important &
the desired output. valuable resource for achieving the
desired output.
It undertaken for employee satisfaction. It undertaken for goal achievement.
Job design is done on the basis of division Job design function is done on the basis
of labour. of group work/teamwork.
Employees are provided with less training Employees are provided with more
& development opportunities. training & development.
Decisions are made by the top Decisions are made collectively after
management as per the rules & regulation considering employee’s participation,
of the organisation authority, decentralization, competitive
environment etc.
It focuses on increased production & It focuses on effectiveness, culture,
satisfied employees productivity & employee’s participation.
It is concerned with the personnel It is concerned with all levels of managers
manager. from top to bottom.
It is a routine function. It is a strategic function.
FUNCTIONS OF HRM( 15 marks 2017 & 2018)

1. MANAGERIAL FUNCTION
Managerial function includes
a) Planning:-
It is pre-determined course of action. Planning pertain to formulating
strategies of personnel programmes & changes in advance that will contribute
to the organisational goals.
In other words it involves planning of HR, requirements, selection, training
etc.
b) Organising:- an organisation is a means to an end. It is essential to carry out
the determined course of action. Acc. to J.C Massie, an organisation is a
structure & a process by which a co-operative group of human beings
allocates its task among its members, identifies relationship & integrates its
activities towards a common objective.
c) Directing:- activating employees at different level & making them contribute
maximum to the organisation is possible through proper direction &
motivation. Taping the maximum potentialities of the employees is possible
through motivation & command.
d) Controlling:- after planning, organizing, & directing the actual
performance of employees is checked, verified & compared with the plans.
It the actual performance is found deviated from the plan, control measures
are required to be taken.

ii) OPERATIVE FUNCTIONS

the operative functions of HRM are related to specific activities like

1) Employment:-

It is concerned with securing & employing the people possessing the required
kind & level of human resources necessary to achieve the organisational
objectives. It includes

i) Job Analysis:- it is the process of study & collection of information

relating to the Role & Responsibilities of a specific job.
ii) HR Planning:- it is a process for determination & assuring that the
organisation will have an adequate number of qualified persons, available
at proper times, performing jobs, which would meet the needs of the
organisation & which would provide satisfaction for the individuals
involved.
 iii) Recruitment:- it is the process of searching for prospective employees &
stimulating them to apply for jobs in an organisation.
iv) Selection:- it is the process of ascertaining the qualifications, experiences,
skills, knowledge etc of an applicant with a view to appraising his/her
suitability to a job.
v) Placement:- it is the process of assigning the selected candidate with the
most suitable job in terms of job requirements. It is matching employee
specifications with job requirements.
vi) Induction & Orientation:- Induction & orientation are the techniques by
which a new employee is rehabilitated in the changed surrounding &
introduced to the practices, policies, purposes & people of the
organisation.

2. Human Resource Development:-

It is the process of improving, moulding & changing the skills, knowledge,
creative ability, aptitude, values, commitment etc based on present & future job
organisational requirements. It includes.
i) Performance Appraisal:- it is the systematic evaluation of individuals
with respect to their performance on the job & their potential for
development.
ii) Training:- it is the process of imparting to the employees technical &
operating skills & knowledge.
iii) Managerial Development:- it is the process of designing & conducting
suitable executive development programmes so as to develop the
managerial & human relations skill of employees.
iv) Career Planning & Development:- it is the planning of one’s career &
implementation career plans by means of education, training, job search
& acquisition of work experience. It includes internal mobility & external
mobility.
v) Transfer:- it is process of placing employees in the same level jobs where
they can be utilised more effectively in consistence with their
potentialities & needs of the employees & the organisation.
vi) Promotion:- it deals with upward reassignment given to an employee in
the organisation occupy higher position which commands better status or
pay keeping in view in human resources of the employees & the job
requirements.
vii) Demotion:- it deals with downward reassignment to an employee in the
organisation.
 viii) Retention Management:- employers prefer to retain more
talented employees while they retrench less talented employees.
Employers modify existing human resource strategies & craft
new strategies in order to pay more salaries, provide more
benefits & create high quality of work life to retain the best
employees.

3) Compensation :-

It is the process of providing adequate, equitable & fair remuneration to the

employees. It includes

i) Wage & salary Administration:- it is the process of developing &

operating a suitable wage & salary programme
ii) Incentives:- it is the process of formulating administrating &
reviewing the schemes of financial incentives in addition to regular
payment of wages & salary.
iii) Fringe Benefits:- these are the various benefits at the fringe of the
wage. Management provides these benefits to motivate the
employees & to meet their life’s contingencies. Ex:- housing
facilities, canteen facilities, medical facilities, disablement benefits
etc.
iv) Social Security Measures:- management provide social security to
their employees in addition to the fringe benefits. These includes
worker men compensation, maternity benefits for women , medical
benefits , retirement benefits lie PF, pension, gratuity etc.