BUSINESS COMMUNICATION

Human Resource
Management
Project for Semester 1
Shreshth Narula (50554)
10/22/2012

The report gives an insight into human resource management, how it is different
from personnel management, its features and also elaborates upon the different
roles a human resource manager has to perform.

ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.
I am highly indebted to Dr. Nomita Sharma for her guidance and constant
supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.

Shreshth
Narula
2

Table of Contents

Serial No.

Topic

Page No.

1.)

What is Human Resource

Management?

2.)

Importance of HRM

3.)

Process of HRM

4.)

Personnel Management vs HRM

5.)

Human Resource Manager

6.)

Responsibilities of HR Manager

7.)

Roles of HR Manager

8.)

Development of HR Department

11

9.)

Functions under HR Department

13

10.)

Bibliography

14

What is Human Resource Management? The different definitions

The first definition of Human Resource Management (HRM) is that it is the process of
managing people in organizations in a structured and thorough manner. This covers
the fields of staffing (hiring people), retention of people, pay and perks setting and
management, performance management, change management and taking care of exits from
the company to round off the activities. This is the traditional definition of HRM which leads
some experts to define it as a modern version of the Personnel Management function that
was used earlier.
The second definition of HRM encompasses the management of people in
organizations from a macro perspective i.e. managing people in the form of a collective
relationship between management and employees. This approach focuses on the objectives
and outcomes of the HRM function. What this means is that the HR function in contemporary
organizations is concerned with the notions of people enabling, people development and a
focus on making the employment relationship fulfilling for both the management and
employees.
These definitions emphasize the difference between Personnel Management. To put it in one
sentence, personnel management is essentially workforce centric whereas human
resource management is resource centric. The key difference is HRM in recent times is
about fulfilling management objectives of providing and deploying people and a greater
emphasis on planning, monitoring and control.
The HR manager or the people manager takes care of different departments dealing with
Staffing, Payroll, and Retention etc. and is also for managing employee expectations vis-vis the management objectives and reconciling both to ensure employee fulfilment and
realization of management objectives.

Importance of Human Resource Management

It is a fact that to thrive in the chaotic and turbulent business environment, firms need to
constantly innovate and be ahead of the curve in terms of business practices and
strategies. It is from this motivation to be at the top of the pack that HRM becomes a
valuable tool for management to ensure success.
The Evolving Business Paradigm
One of the factors behind organizations giving a lot of attention to their people is the nature
of the firms in the current business environment. Given the fact that there has been a steady
movement towards an economy based on services, it becomes important for firms engaged
in the service sector to keep their employees motivated and productive. Even in the
manufacturing and the traditional sectors, the need to remain competitive has meant that
firms in these sectors deploy strategies that make effective use of their resources. This
changed business landscape has come about as a result of a paradigm shift in the way
businesses and firms view their employees as more than just resources and instead adopt a
people first approach.
4

Strategic Management and HRM

As discussed in the articles on modern day HRM practices, there is a need to align
organizational goals with that of the HR strategy to ensure that there is alignment of the
people policies with that of the management objectives. This means that the HR department
can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring
organizational success. The aims of strategic management are to provide the organization
with a sense of direction and a feeling of purpose. The days when the HR manager was
concerned with administrative duties is over and the current HRM practices in many
industries are taken as seriously as say, the marketing and production functions.
Importance of HRM for Organizational Success
The practice of HRM must be viewed through the prism of overall strategic goals for the
organization instead of a standalone tint that takes a unit based or a micro approach. The
idea here is to adopt a holistic perspective towards HRM that ensures that there are no
piecemeal strategies and the HRM policy enmeshes itself fully with those of the
organizational goals. For instance, if the training needs of the employees are simply met with
perfunctory trainings on omnibus topics, the firm stands to lose not only from the time that
the employees spend in training but also a loss of direction. Hence, the organization that
takes its HRM policies seriously will ensure that training is based on focused and topical
methods.
In conclusion, the practice of HRM needs to be integrated with the overall strategy to ensure
effective use of people and provide better returns to the organizations in terms of ROI
(Return on Investment) for every rupee or dollar spent on them. Unless the HRM practice is
designed in this way, the firms stand to lose from not utilizing people fully. And this does not
bode well for the success of the organization.

The Process Involved

Each organization works towards the realization of one vision. The same is achieved by
formulation of certain strategies and execution of the same, which is done by the HR
department. At the base of this strategy formulation lie various processes and the effectiveness
of the former lies in the meticulous design of these processes.
The following are the various HR processes:
1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction,
Orientation, Evaluation, Promotion and Layoff).
2. Employee remuneration and Benefits Administration
3. Performance Management.
4. Employee Relations.
Human Resource Planning: Generally, we consider Human Resource Planning as the
process of people forecasting. It also involves the processes of Evaluation, Promotion and
Layoff.
Recruitment: It aims at attracting applicants that match a certain Job criteria.
Selection: The next level of filtration. Aims at short listing candidates who are the

nearest match in terms qualifications, expertise and potential for a certain job.
Hiring: Deciding upon the final candidate who gets the job.
Training and Development: Those processes that work on an employee onboard

for his skills and abilities upgradation.

Employee Remuneration and Benefits Administration: The process involves deciding
upon salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the
prime motivator in any job and therefore the importance of this process. Performing
employees seek raises, better salaries and bonuses.
Performance Management: It is meant to help the organization train, motivate and reward
workers. It is also meant to ensure that the organizational goals are met with efficiency. The
process not only includes the employees but can also be for a department, product, service
or customer process; all towards enhancing or adding value to them. Nowadays there is an
automated performance management system (PMS) that carries all the information to help
managers evaluate the performance of the employees and assess them accordingly on their
training and development needs.
Employee Relations: Employee retention is a nuisance with organizations especially in
industries that are hugely competitive in nature. Though there are myriad factors that
motivate an individual to stick to or leave an organization, but certainly few are under our
control. Employee relations include Labor Law and Relations, Working Environment,
Employee heath and safety, Employee- Employee conflict management, EmployeeEmployee Conflict Management, Quality of Work Life, Workers Compensation, Employee
Wellness and assistance programs, Counseling for occupational stress. All these are critical
to employee retention apart from the money which is only a hygiene factor.
All processes are integral to the survival and success of HR strategies and no single process
can work in isolation; there has to be a high level of conformity and cohesiveness between
the same
6

Personnel Management vs. Human Resource Management

Personnel Management
Traditionally the term personnel management was used to refer to the set of activities
concerning the workforce which included staffing, payroll, contractual obligations and other
administrative tasks. In this respect, personnel management encompasses the range of
activities that are to do with managing the workforce rather than resources. Personnel
Management is more administrative in nature and the Personnel Managers main job is to
ensure that the needs of the workforce as they pertain to their immediate concerns are taken
care of. Further, personnel managers typically played the role of mediators between the
management and the employees and hence there was always the feeling that personnel
management was not in tune with the objectives of the management.
Human Resource Management
With the advent of resource centric organizations in recent decades, it has become
imperative to put people first as well as secure management objectives of maximizing the
ROI (Return on Investment) on the resources. This has led to the development of the
modern HRM function which is primarily concerned with ensuring the fulfillment of
management objectives and at the same time ensuring that the needs of the resources are
taken care of. In this way, HRM differs from personnel management not only in its broader
scope but also in the way in which its mission is defined. HRM goes beyond the
administrative tasks of personnel management and encompasses a broad vision of how
management would like the resources to contribute to the success of the organization.
Personnel Management and HRM: A Paradigm Shift ?
Cynics might point to the fact that whatever term we use, it is finally about managing
people. The answer to this would be that the way in which people are managed says a lot
about the approach that the firm is taking. For instance, traditional manufacturing units had
personnel managers whereas the services firms have HR managers. While it is tempting to
view Personnel Management as archaic and HRM as modern, we have to recognize the fact
that each serves or served the purpose for which they were instituted. Personnel
Management was effective in the smokestack era and HRM is effective in the 21st century
and this definitely reflects a paradigm shift in the practice of managing people.
Conclusion
It is clear from the above paragraphs that HRM denotes a shift in focus and strategy and is
in tune with the needs of the modern organization. HRM concentrates on the planning,
monitoring and control aspects of resources whereas Personnel Management was largely
about mediating between the management and employees. Many experts view Personnel
Management as being workforce centered whereas HRM is resource centered. In
conclusion, the differences between these two terms have to be viewed through the prism of
people management through the times and in context of the industry that is being studied.

Human Resource Manager

A Human Resources generalist, manager, or director plays a wide variety of roles in
organizations. Depending on the size of the organization, these HR jobs may have
overlapping responsibilities. In larger organizations, the HR generalist, manager, and director
have clearly defined, separated roles in HR management. These roles bring progressively
more authority and responsibility in the hands of the manager, then the director, and
ultimately, the Vice President who may lead several departments including administration.
HR
directors,
and
occasionally
HR
managers,
may
head
up
several
different departments that are each led by functional or specialized HR staff such as the
training manager, the compensation manager, or the recruiting manager.
Human Resources staff members are advocates for both the company and the people who
work in the company. Consequently, a good HR professional performs a constant balancing
act to meet both needs successfully.
The Changing Human Resources Role
The role of the HR professional is changing to fit the needs of todays modern, fast changing
organizations. In the past, because the original HR personnel functions were often provided
by accounting, the HR role was focused on administrative tasks such as paying employees,
administering benefits, and keeping track of sick and personal days off.
But, a more comprehensive approach to the management of people in the organization was
needed. Programs and processes that systematically hired employees, retained employees,
and dealt with all aspects of talent management evolved in the best organizations. Then, the
role evolved again. Still responsible for the administrative tasks and the programs and
processes related to people, the best HR professionals are now leading the charge.
They are developing systems and processes within the organization that address the
strategic needs of the business. So, what was once the task of hiring employees is now the
process of team-based hiring of the best possible talented employees who are recruited via
methods that range from employee referrals to social media sourcing. These employees are
also congruent with the companys culture. This is quite a different journey, one that
continues to evolve.
New HR Role
The role of the HR manager must parallel the needs of this developing, changing
organization. Successful organizations are becoming more adaptable, resilient, quick to
change direction, and customer-centric. They recognize that organizations will vie for talent
in coming years. This recognition brings about the need for employee oriented workplaces
and programs that meet the needs of employees for meaningful work, growth, challenge,
communication, and effective leadership.

Responsibilities of the HR Professional

Depending on the size of the organization, the HR manager has responsibility for all of the
functions that deal with the needs and activities of the organization's people including these
areas of responsibility.

Recruiting
Hiring
Training
Organization Development
Communication
Performance Management
Coaching
Policy Recommendation
Salary and Benefits
Team Building
Employee Relations
Leadership

When you ask the question, what the HR manager, generalist or director does, as you can
see, the answer is a lot. The role bears responsibility for all of the processes and systems
related to people in an organization. The role must support the work of managers who
supervise and lead the work of these people. The HR professionals must develop the skills
of their managers and their organization to do these activities well. The job of the HR
professional is a constant challenge as HR staff balance many roles and activities in support
of their organizations.

Roles Performed by Human Resource Manager

The Human Resources Manager guides and manages the overall provision of Human
Resources services, policies, and programs for a company within a small to mid-sized
company, or a portion of the Human Resources function within a large company. The major
areas the Human Resources manager manages can include:

recruiting and staffing;

organizational departmental planning;
performance management and improvement systems;
organization development;
employment and compliance to regulatory concerns regarding employees;
employee on boarding, development, needs assessment, and training;
policy development and documentation;
employee relations;
company-wide committee facilitation;
company employee and community communication;
compensation and benefits administration;

employee safety, welfare, wellness and health;

charitable giving; and
employee services and counselling.

The Human Resources manager originates and leads Human Resources practices and
objectives that will provide an employee-oriented; high performance culture that emphasizes
empowerment, quality, productivity, and standards; goal attainment, and the recruitment and
ongoing development of a superior workforce. The Human Resources manager is
responsible for the development of processes and metrics that support the achievement of
the organization's business goals.
The Human Resources manager coordinates the implementation of people-related services,
policies, and programs through Human Resources staff; reports to the CEO; and assists and
advises company managers about Human Resources issues.

Primary Objectives of the Human Resources Manager:

Health and safety of the workforce.

Development of a superior workforce.
Development of the Human Resources department.
Development of an employee-oriented company culture that emphasizes quality,
continuous improvement, key employee retention and development, and high
performance.
Personal ongoing development

Responsibilities of the Human Resources Manager

Depending upon the organization, the Human Resources manager may or may not have
responsibility for community relations, philanthropic giving, company community sports team
and event sponsorships, space planning, benefits review, and administration. Depending
upon the needs of the organization, such responsibilities may be carried out by the finance
department, facilities department, marketing and public relations, and / or administration.
No matter which department bears the leadership responsibility for the function, the Human
Resources manager is closely involved in decisions, implementation, and review.
Thus, responsibilities of the Human Resources manager may include the following.

10

Development of the Human Resources Department

Oversees the implementation of Human Resources programs through Human

Resources staff. Identifies opportunities for improvement and resolves problems.
Oversees and manages the work of reporting Human Resources staff. Encourages
the ongoing development of the Human Resources staff.
Develops and monitors an annual budget that includes Human Resources services,
employee recognition, sports teams and community events support, company
philanthropic giving, and benefits administration.
Selects and supervises Human Resources consultants, attorneys, and training
specialists, and coordinates company use of insurance brokers, insurance carriers,
pension administrators, and other outside sources.
Conducts a continuing study of all Human Resources policies, programs, and
practices to keep management informed of new developments.
Leads the development of department goals, objectives, and systems. Provides
leadership for Human Resources strategic planning.
Establishes HR departmental measurements that support the accomplishment of the
company's strategic goals.
Manages the preparation and maintenance of such reports as are necessary to carry
out the functions of the department. Prepares periodic reports for management, as
necessary or requested, to track strategic goal accomplishment.
Develops and administers programs, procedures, and guidelines to help align the
work force with the strategic goals of the company.
Participates in executive, management, and company staff meetings and attends
other meetings and seminars.
With the CEO, CFO, and community relations group, plans the company's
philanthropic and charitable giving.

Human Resources Information Systems (HRIS)

Manages the development and maintenance of the Human Resources sections of
both the company website, particularly recruiting, culture, and company information; and
the employee Intranet, wikis, newsletters, and so forth.

Utilizes the HRIS system to eliminate administrative tasks, empower employees, and
meet the other needs of the organization.

Training and Development

Coordinates all Human Resources training programs, and assigns the authority /
responsibility of Human Resources and managers within those programs. Provides
necessary education and materials to managers and employees including workshops,
manuals, employee handbooks, and standardized reports.
Leads the implementation of the performance management system that includes
performance development plans (PDPs) and employee development programs.

11

Establishes an in-house employee training system that addresses company training

needs including training needs assessment, new employee onboarding or orientation,
management development, production cross-training, the measurement of training
impact, and training transfer.
Assists managers with the selection and contracting of external training programs
and consultants.
Assists with the development of and monitors the spending of the corporate training
budget. Maintains employee training records.

Employment

Establishes and leads the standard recruiting and hiring practices and procedures
necessary to recruit and hire a superior workforce.
Interviews management and executive position candidates; serves as part of the
interview team for position finalists.
Chairs any employee selection committees or meetings.

Employee Relations

Formulates and recommends Human Resources policies and objectives for the
company on any topic associated with employee relations and employee rights.
Partners with management to communicate Human Resources policies, procedures,
programs and laws.
Determines and recommends employee relations practices necessary to establish a
positive employer-employee relationship and promote a high level of employee
morale and
motivation.
Conducts
periodic
surveys
to
measure employee
satisfaction and employee engagement.
Coaches and trains managers in their communication, feedback, recognition, and
interaction responsibilities with the employees who report to them.
Conducts investigations when employee complaints or concerns are brought forth.
Monitors and advises managers and supervisors in the progressive discipline
system of
the
company. Monitors
the
implementation
of
a performance
improvement process with non-performing employees.
Reviews, guides, and approves management recommendations for employment
terminations.
Leads the implementation of company safety and health programs. Monitors the
tracking of OSHA-required data.
Reviews employee appeals through the company complaint procedure.

12

Compensation

Establishes the company wage and salary structure, pay policies, and oversees the
variable pay systems within the company including bonuses and raises.
Leads competitive market research to establish pay practices and pay bands that
help to recruit and retain superior staff.
Monitors all pay practices and systems for effectiveness and cost containment.
Leads participation in at least one salary survey per year. Monitors best practices in
compensation and benefits through research and up-to-date information on available
products.

Benefits

With the assistance of the CFO, obtains cost effective, employee serving benefits;
monitors national benefits environment for options and cost savings.
Leads the development of benefit orientations and other benefits training for
employees and their families.
Recommends changes in benefits offered, especially new benefits aimed at
employee satisfaction and retention.

The Human Resources manager assumes other responsibilities as assigned by the CEO. To
perform the Human Resources manager job successfully, an employee must perform each
essential responsibility satisfactorily. These requirements are representative, but not allinclusive, of the knowledge, skills, and abilities required to lead in the role of the company
Human Resources manager. Reasonable accommodations may be made to enable
individuals with disabilities to perform these essential functions.

Human Resources Manager Job Requirements

Knowledge and experience in employment law, compensation, organizational

planning, recruitment, organization development, employee relations, safety, employee
engagement, and employee development.
Better than average written and spoken communication skills.
Outstanding interpersonal relationship building and employee coaching skills.
Demonstrated ability to lead and develop HR department staff members.
Demonstrated ability to serve as a knowledgeable resource to the executive
management team that provides overall company leadership and direction.
Excellent computer skills in a Microsoft Windows environment. Must include
knowledge of Excel and skills in Human Resources Information Systems (HRIS).
General knowledge of various employment laws and practices and experience
working with a corporate employment law attorney.

13

Experience in the administration of benefits and compensation programs and other

Human Resources recognition and engagement programs and processes.
Evidence of the ability to practice and coach organization managers in the practice of
a high level of confidentiality.
Excellent organizational management skills.

Education and Experience Required for Human Resources Manager Job

Minimum of a Bachelor's degree or equivalent in Human Resources, Business, or

Organization Development.
A minimum of seven years of progressive leadership experience in Human
Resources positions.
Specialized training in employment law, compensation, organizational planning,
organization development, employee relations, safety, training, and and preventive labor
relations, preferred.
Active affiliation with appropriate Human Resources networks and organizations and
ongoing community involvement, preferred.
Possess ongoing affiliations with leaders in successful companies and organizations
that practice effective Human Resources Management.

Work Environment for the Human Resource Manager

While performing the responsibilities of the Human Resources manager's job, these work
environment characteristics are representative of the environment the Human Resources
manager will encounter. Reasonable accommodations may be made to enable people with
disabilities to perform the essential functions of the Human Resources manager's job. While
performing the duties of this job, the employee is occasionally exposed to moving
mechanical parts and vehicles. The noise level in the work environment is usually quiet to
moderate.

14

Bibliography

15

en.wikipedia.org/wiki/Human_resource_management

http://www.managementstudyguide.com/human-resourcemanagement.htm

http://corostrandberg.com/wpcontent/uploads/files/CSR_and_HR_Management1.pdf

http://www.britannica.com/EBchecked/topic/453044/human-resourcesmanagement

http://www.shrmindia.org/strategic-hrm

http://www.iim.org.uk/wp-content/uploads/BrattonGold-ref-Devanna1.pdf

http://hrmba.blogspot.in/2009/11/full-hrm-notes.html

http://www.rogationblog.com/2012/03/human-resources-managementhrm-notes.html