Human Resource Management.

UNIT I
HRM is process of bringing people and organizations together so that the goals of
each are met. It tries to secure the best from people by winning their whole hearted
cooperation. In short, it may be defined as the art of procuring developing and
maintaining competent workforce to achieve the goals of an organization in an
effective and efficient manner. It has the following features:
1. Pervasive force: HRM in pervasive in nature. It is present in all enterprises.
It permeates all levels of management in organizations
2. Action oriented: HRM focuses attention on action, rather than on record
keeping written procedures or rules. The problems of employees at work
solved through rational policies.
3. Individually oriented: It tries to help employees develop their potential fully.
It encourages them to give their best to the organizations. It motivates
employees through a systematic process of recruitment, selection, training
and development coupled with fair wage policies.
4. People oriented: HRM is all about people at work both as individuals and
groups. It tries to put people on assigned jobs in order to produce good
results. The resultant gains are used to reward people and motivate them
toward further improvements in productivity.
5. Future oriented: Effective HRM helps an organization meet its goals in the
future by providing for competent and well motivated employees.
6. Development oriented: HRM intends to develop the full potential of
employees. The reward structure is tuned to the needs of employees.
Training is offered to sharpen and improve their skills. Employees are

rotated on various jobs so that they gain experience and exposure. Every
attempt is made to use their talents fully in the service of organizational.
7. Integrating mechanism: HRM tries to build and maintain cardinal relations
between people working at various levels in the organization. In short it tries
to integrate human assets in the best possible manner the service of an
organization.
8. Comprehensive functions: HRM is to some extent concerned with any
organizational decision which has an impact on the workforce or the
potential workforce. The term workforce signifies people working at various
levels, including workers, supervisors, middle and top managers. It is
concerned with managing people at work. It covers all types of personnel.
Personnel work may take different shapes and forms at each level in the
organizational hierarchy but the basic objective of achieving organizational
effectiveness through effective and efficient utilization of human resources
remains the same. It is basically a method of developing potentialities of
employees so that they get maximum satisfaction out of their work and give
their best efforts to the organizations
9. Auxiliary service: HR departments exist to assist an advice the line or
operating managers to do their personnel work more effectively. HR
manager is a specified advisor. It is staff function.
10.Inter disciplinary function: HRM is a multi disciplinary activity, utilizing
knowledge and inputs drawn from psychology, sociology, economics etc. To
unravel the mystery surrounding the human brain managers, need to
understand and appreciate the contributions of all such soft disciplines.
11.Continuous functions: According to Terry, HRM is not a one shot deal. It
cannot be practiced only one hour each day or one day a week. It requires a
constant alertness and awareness of human relations and their importance in
every day operations.

Scope of HRM
The scope of HRM is very wide. Research in behavioral sciences, new trends in
managing knowledge workers and advances in the field of training have expanded
the scope of HR functions in recent years. The Indian Institute of personnel
management has specified the scope of HRM thus:
1. Personnel aspect: This is concerned with manpower planning, recruitment,
selection, placement, transfer promotion, training and development lay off
and retrenchment remuneration incentives productivity etc.
2. Welfare aspect: It deals with working conditions and amenities such as
canteens,crches rest and lunch room housing transport medical assistance
education , health and safety recreation facilities etc
3. Industrial relations aspects: This covers union management relations joint
consultation collective bargaining grievances and disciplinary procedures
settlement of disputes etc.

Objectives of HRM

The objectives of HRM may be as follows:

1. To create and utilize an able and motivated workforce, to accomplish the

basic organizational goals.

2. To establish and maintain sound organizational structure and desirable

working relationships among all the members of the organization.
3. To secure the integration of individual or groups within the organization by
co-ordination of the individual and group goals with those of the
organization.
4. To create facilities and opportunities for individual or group development so
as to match it with the growth of the organization.
5. To attain an effective utilization of human resources in the achievement of
organizational goals.
6. To identify and satisfy individual and group needs by providing adequate
and equitable wages, incentives, employee benefits and social security and
measures for challenging work, prestige, recognition, security, status.
7. To maintain high employees morale and sound human relations by
sustaining and improving the various conditions and facilities.
8. To strengthen and appreciate the human assets continuously by providing
training and development programs
9. To consider and contribute to the minimization of socio-economic evils
such as unemployment, under-employment, inequalities in the distribution of
income and wealth and to improve the welfare of the society by providing
employment opportunities to women and disadvantaged sections of the
society.
10.To provide an opportunity for expression and voice management.
11.To provide fair, acceptable and efficient leadership.
12. To provide facilities and conditions of work and creation of favorable
atmosphere for maintaining stability of employment.

Role and importance of human resources

Human Resources (HR) is concerned with the issues of managing people in the
organisation.

The Human Resources department is responsible for many people related issues in
an organisation.
Under the HR departments remit are the following roles:

The process of recruiting suitable candidates for the organisation

Identifying and meeting the training needs of existing staff
Ensuring employee welfare and employee relations are positive
Ensure the working environment is safe for employees
Raising awareness of current workplace legislation
The Human Resources Department also covers five key roles.

Executive role in this role the HR department are viewed as the specialists
in the areas that encompass Human Resources or people management.
Audit role in this capacity the HR department will check other
departments and the organisation as a whole to ensure all HR policies such as
Health & Safety, Training, Staff Appraisal etc are being carried out in accordance
with the companys HR policy.
Facilitator role in this role, the HR department help or facilitate other
departments to achieve the goals or standards as laid out in the HR policies of the
organisation. This will involve training being delivered for issues that arise in the
areas relating to people management.
Consultancy role the HR department will advise managers on how to
tackle specific managing people issues professionally.
Service role in this capacity the HR department is an information provider
to raise awareness and inform departments and functional areas on changes in
policy.

Strategic HR
Strategic HR is more proactive rather than reactive in its relationships with the
other functional areas. It is more concerned about what its internal customers need
in the future to compete globally. Strategic HR managers do not wait for
instructions, requisition or complaints. It does its homework, does research on the
future, and offers proactive solutions and strategic advice.
1. Strategic HR is preventive rather than corrective or punitive. It is
developmental in orientation. It views employees as resources not be wasted
rather than strategic resources to be developed.

2. Strategic HR aims to create a working environment conducive for

employees to do things right the first time. It aims to prevent mistakes rather
than punish them.
3. Strategic HR is output driven rather than input oriented. Performance
improvement can be in terms of productivity, efficiency, quality of work
(defects), customer satisfaction or conversely, number of customer
complaints received.
4. Strategic HR is mainly pre-occupied in molding the employees of the future
today. For organizations to survive and excel in the future, its needs to
develop or acquire employees who are multi-skilled, cross-functional,
empowered, team players. In addition, they have to have high emotional
intelligence (EQ) and capable of thinking out of the box about the future.
They should be capable not only of improving their work, but reengineering
or reinventing it if necessary.
5. Strategic HR keeps these employee attributes as its goals while conducting
its basic processes of recruitment, training, job rotation, career pathing, and
performance appraisal.
6. Strategic HR aligns performance criteria systems with corporate goals and
strategies rather than traditional functional concerns. Strategic HR appraises
people on the more relevant output performance like quality, productivity,
internal and external customer satisfaction. Strategic HR aims to change
employee behavior and attitude by directly connecting his appraisal (and
eventually his pay) to what actually matters to corporate performance and
customer satisfaction. It puts less weight on nebulous criteria like teamwork,
attendance, boss satisfaction, and neatness.