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Human Resource Management

1. What is HRM? Discuss the Objectives and functions of HRM?
HRM is concerned with the people who work in the organization to achieve objectives of the
organization. In concerns with acquisition of the appropriate resource, developing their skills and
competencies, motivating them for the best performance and ensure their continued commitment to
the organization to achieve the organizational objectives.

Objectives of HRM

The preliminary objectives of HRM are to ensure the willing workforce to an organization. Beyond his
there are objectives such as Social, Organizational, and Functional & Personal

Social Objectives: This to be ethically and socially responsible to the need and challenges of the society
while minimizing the negative impact of such demands upon the organization.

Organizational Objectives: HRM is not an end in itself. It is only a means to assist the organization with
primary objectives. Simple stated, department exist to serve the rest of the organization.

Functional Objectives: Functional objectives try to maintain the department’s contribution at a level
appropriate to the organization’s needs. Human resources are to be adjusted to suit the organization’s
demands. The department’s level of service must be tailored to fit the organization it serves.

Personal objectives: Personal objectives assist employees in achieving their personal goals, at least
insofar as these goals enhance the individual’s contribution to the organization. Personal objectives of
employees must be met if they are to be maintained, retained and motivated. Otherwise, employee
performance and satisfaction may decline giving rise to employee turnover.

Functions of HRM

HRM

Managerial functions Operative functions

Planning Organizing staffing Controlling Employment HR Devt. Compensation Employee

Relation
Job analysis Performance appraisal Jon Evaluation
HR Planning Training Wages & salary administration
Recruitment Management development Incentive
Selection Career planning & development Bonus
Placement Benefits
Induction
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The HRM functions can be broadly classified into two categories 1.Managerial functions &
2. Operative functions

1) Managerial functions: The Managerial functions of HRM are Planning, Staffing, Directing and
controlling.

Planning: Planning includes determining in advance the programs and the changes required that would
contribute to the achievement of goals

Organizing: It is a series of activities linked and arranged to achieve organizational Goal. It involves
establishing an internal structure of the roles for the people in an organization.
Staffing: It is a process of placing a suitable person as per the job need in an organization. This
encompasses manpower planning, recruiting, selection, placement…
Directing: Its process of directing all the available resources towards a common organizational goals.
Controlling: This is to ensure and track whether the organization is moving towards its objectives as
defined in the plan.

2) Operative functions: Are related to special activities of HRM. Various Operative functions of
HRM are Employment, Human resource Development, and Compensation & Employee relation
[EDCR]

Employment: Employment is the first Operative function of HRM. This involves procuring and
employing individuals with suitable knowledge, skills, experience and aptitude necessary to perform
various jobs.
This includes functions such as Job analysis, Human Resource Planning (HRP), Recruitment, Selection,
placement and Induction

Job analysis: Is the process by which the tasks which companies job are determined and skills and
abilities required to perform it successfully are identified.

Human Resource Planning (HRP): It involves forecasting the human resource requirements of an
organization and the future supply of human resource and making suitable adjustment between these
two in correlation with organizational plans.

Recruitment: Recruitment is the process of seeking attracting prospective candidates against a vacancy
in the organization.

Selection: The purpose of employment selection is to choose the right candidate for a job. Includes
scanning CV, interview, manager approve…
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Placement: After selecting a candidate conveys his acceptance of offer of employment made by an
organization, his placement has to be decided based on the needs of the organization. Includes
discussion with managers, identify the mistake in placement and correct them…

Induction: Introducing a new employee to the organization, its business, the organization culture, its
values and beliefs, and practice and procedures is terms as induction.

Human Resource Development : Is a process of training and developing employees to improve and
update their knowledge and skills so as to help them perform their jobs better.
This includes Performance appraisal, Training & development, Management development, Career
planning & development

Performance appraisal: this is the process of evaluating the performance of an employee on the job and
developing a plan for improvement.

Training: Training is the systematic development of knowledge, skills and attitude required to perform a
given task or job successfully, in an individual.

Management development: It is the concept of developing the employees of an organization to meet

the future changes and challenges. It is different from training, where the employees are taught a set of
specific skills of imparted knowledge on particular subject.

Career planning & development: its refer to identifying one’s career goals and formulating plans of
reaching them through various means like education, work experience…

Compensation: Includes all the extrinsic rewards that employee receive during and after the course of
his job, for his contribution to the organization. The compensation encompassed Jon Evaluation, Wages
& salary administration, incentives, bonus and benefit based on the job.

Jon Evaluation: It involves classifying a job on its importance and its contribution o the organization and
its requirements.

Wages & salary administration: The process of formulating and operating suitable wage and salary
program is known as wage & salary administration.

Incentives: Incentives are the rewards an employee earns in addition to regular wage od salary based on
the performance of the individuals.

Bonus: Bonus is primarily a share in the bounty and is directly related to the organization’s performance.
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Fringe Benefit: Fringe benefits are those monetary and non monetary benefits given to employees
during their employment and sometimes, in the post employment period also. Eg.HRA, medical…

Employee relation: Employee relations refer to the relationship shared among the employees in an
organization. It is important that the employees share a healthy relationship with each other to deliver
their best performances. It includes
 Increasing employee productivity
 Keeping employees satisfied and motivated
 Developing team building, team management & leadership skills
 Ensure discipline among employees…
Even the relationship b/n the manager and employee is also very important in determining job
satisfaction. Average employees prefer his managers to posses the following characteristics;
 Be genuinely interested in the employees and his work
 Lend support & guidance when required
 Bring clarity in job responsibilities & task
 Identify the strength and weakness and encourage to overcome them
 Taking personal interest in the employee and his problems
 Willing to listen valuable ideas & reward them for their contribution
 Have faith in employees

2. What is the emerging role of HRM?

In the changing time it has become evident that it is the human resource of an organization or a
country that can lead it on the path of success. It is the compliances and the attitude of HR that can
make or break the business.
Because of turbulent and dynamic markets and the changing values and the workforce, new
strategic role has emerged for HRM which can be listed as follow

Value of human resource:

 Even a nation with rich physical resource will not develop, if their human resources are
inadequate. A nation rich in it human resources can develop fast and a developed nation
enriches the quality of its human resources, it’s a cyclic process.
 In this modern age of technology globalization, quality hr is an important contributor to the
well being and development of organization.

Human resource a competitive advantage:

 Business has become knowledge based, service oriented and competitive and more dynamic
in this new age. According to Adi Godrej (MD, Godrej consumer Products Ltd.),”All corporate
strength are dependent on people”
 Human resource of an organization is a unique asset to gain competitive advantage over its
competitors.
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Human resource accounting:

 HR accounting is measurement of the cost and value of the people for an organization.
 Till recently, people were not accounted, as resources and no value was attributed to their
conditions. However, in recent times, the criticality of the contribution of Human resources
have been acknowledge and recognized.
 It also provides essential information to the management to maintain and develop its
important resources.

3. Write a Short note on ;

1) SHRM (Strategic Human Resource Management)
 According to Arthur Thomson, Jr. & AJ Strickland III “Business strategy is management’s game
plan. Management would not have a road map to follow or an action plan to give desired result
without a business strategy”
 Strategic Human Resource Management of the optimum utilization of Human resources to
achieve the set of goals and objectives in the business environment.
 SHR planning involves designing HR goals in alignment with the goals of the organization,
identifying human resources required to achieve these goals and then developing these
resources internally or acquiring them from outside.
 It also includes new HR initiatives required to accomplish Organizational goals
 In an industry like IT, which depends more than anything else in its human resource & their
competencies, SHRM is very important. Here, the planning of resources, acquiring them,
retaining them all in highly competitive market is a very complex challenging job.

2) IHRM (International Human resource Management)

3) Scope of HRM
4) Characteristics of HRM