INTRODUCTION

Human Resource Management deals with human resources/ manpower/ personnel employed in a business unit. It is an approach to the management of people in an organization. Organisations are made up of people (employees) and function through people (employees). It is the human resource which brings success and prosperity to a business enterprise. HRM also called as (Personnel Management) deals with various problems related to manpower employed. Such problems include personnel planning, recruitment and selection, induction, performance appraisal, employees training and development, promotion and transfer of employees, compensation payment, career planning and participative management.

HRM is relatively a new term for what was earlier called as Personnel management. The term HRM got popularity in the USA by 1970s. It is now used liberally in India and also in other countries in place of the term Personnel Management which deals with management of employees working in an organization. HRM can be treated as advance/ refined form of personnel management itself. It is an advancement over, the traditional personnel management as its scope is much wider in contents and significance. HRM is a management function which helps managers to plan, recruit, select, train, develop, remunerate and maintain members for an organization.

In the final analysis, well-trained, efficient and co-operative manpower brings success, stability and prosperity to a business unit.

CONCEPT OF HRM :

Personnel refers to the employees working in an organization at different levels. Personnel management (also called HRM ) is that aspect of total business management which deals with human relationships within an organization. Personnel represents human resource, which is different from material resource. It is rightly said that organizations are not mere bricks, mortar, machineries or inventories. They are people. It is the people who staff and manage organizations. Human resource are the people and their characteristics at work. They are human factors in business.

Human resource is the most productive and most versatile. In addition, the manpower in an organization needs human treatment. Employees have a capacity to feel, think and even to react. Management has to deal with the employees in a careful and tactful manner. Material resources such as land, machines, raw-materials, equipment, etc. are easy to manage. This is because they have no capacity to feel or think or react. This is not the case with human resource i.e manpower. For example, you may use a bad word for machine or you may put your leg on the machine but you must not abuse a worker or put your leg on his head. This is because he has a capacity to feel, think and even react quickly in the same manner or even in a more challenging manner. In production activity, men and machines are important. However , men behind the machine is more important as he is a human being. Man and machine are not on par and must not be treated in the same manner. This is because of all the resources manpower is the only resource which does not depreciate, with the passage of time.

ACCORDING TO PETER.F. DRUCKER, the prosperity, if not the survival of any business depends on the performance
of its managers of tomorrow.

This suggests the importance of manpower planning and development. The material resource alone will not help the organization to achieve its objectives. For this effective co-ordination and utilization of material and human resources are required. This suggests the importance of human resources. Human resources of an organization function at top management, middle management, supervisory management and at operative management levels.

The human resource is very important and useful in every organization. It should be nurtured and used for the benefit of the organization. This is the challenging job before personnel manager/management. The organization can make rapid progress only when the employees are efficient, satisfied and co-operative. On the other hand, the

organization will have to face various problems and difficulties, if the employees are not cooperative and hostile. This indicates that human resources is most strategic and critical determinant of growth of a business unit. Every organization needs loyal, satisfied and efficient labour force. For this, adequate attention should be given to HRM.

HRM is a management function that helps managers to recruit, select, train and develop employees for an organization. It is concerned with the peoples dimensions in organizations.

DEFINITION : ACCORDING TO GEORGE R. TERRY,

Personnel management is concerned with the obtaining and maintaining of a satisfactory and satisfied workforce.

FEATURES:
1) MANAGING PEOPLE: HRM relates to managing people at work. It covers all levels of personnels and their needs, expectations and so on. In this sense, it is a comprehensive function and is basically concerned with managing people at work. HRM has universal existence and

application as it is applicable to business and other organizations- government, educational, religious and so on.

2) PEOPLE-ORIENTED PROCESS:
HRM is concerned with employees, both as individuals as well as a group. The aim of personnel management is to get better results through their involvement, motivation and co-operation. It is a people-oriented process of bringing people and organizations together so that the goals of each are met properly. Acquisition, development, motivation and maintenance of man-power/human resources are four basic functions in the HRM process.

3) DEVELOPS EMPLOYEES POTENTIALITIES:

Personnel management is concerned with helping the employees to learn and develop their potentialities to the highest level for their benefits as well as for the benefits of their organizations. It is a manpower/employees development oriented subject.

4) INTEGRAL PART:
Personnel management is an integral part of all organizations. It is concerned with recruitment, selection and development of man-power available.

5) CONTINUOUS ACTIVITY:
HRM is a continuous activity in an organization as personnel problems continue to exist as long as employees are working in an organization. They need constant attention as they may disturb normal working of an organization, if neglected.

6) SECURES CO-OPERATION:
Personnel management aims at securing willing co-operation of employees for achieving organizational objectives. This is natural as industrial and other activities can be conducted only with the support of human resources. HRM aims at developing and maintaining team spirit at the organizational level. Such team spirit brings success to the organization.

7) FUTURE ORIENTED:
HRM is concerned with helping an organization to achieve its objectives in the future by providing competent and motivated employees. It makes an attempt to integrate individual objectives of employees with the organizational objectives. HRM provides long term benefits to individuals (employees), organizations and the society at large.

8) CHALLENGING FUNCTION /ACTIVITIES:

HRM is a challenging function/activity as it deals with the people /employees who are always unpredictable. Employees have emotions and sentiments and cannot be treated like machines. It is necessary to handle them and activities related to them tactfully. In short, HRM brings challenges before HR manager from time to time. It also provides opportunities to organizations to grow through the efforts of efficient and devoted manpower. HRM is a key element in dealing with the economic, technological and other problems faced by business organizations. Such problems can be solved with the help of devoted team of employees.

OBJECTIVES:
1) To attain maximum individual development (self-development) of the members of an organization and also to utilize available human resources (with the organization) fully and effectively.

2) To mould effectively the human resources.

3) To establish desirable working relationships between employer and employees and between groups of employees.

4) To ensure satisfaction to the workers so that they are freely ready to work.

5) To improve the service rendered by the enterprise to the society through better employee morale which leads to more efficient individual and group performance.

6) To establish and maintain a productive and self respecting relationship among all the members of an organization.

7) To ensure the availability of a competent and willing workforce to the organization for its progress and prosperity.

8) To help organization to achieve its goal by providing well-trained, efficiented and properly motivated employees.

9) To maintain high morale and good human relations within the organization for the benefit of employer and employees. 10) To secure the integration of all the individuals and groups with the organization by reconciling individual/group goals with those of an organization.

SCOPE OF PERSONNEL MANAGEMENT:

The scope of HRM is vast. All major activities in the working life of a worker from the time of his or her entry into an organization until he or she leavescome under the preview of HRM. Important activities under HRM include HR planning, job analysis and design, recruitment and selection, orientation and placement, training and development, job evaluation and performance, employee motivation, remuneration and communication, industrial relations, employee health and welfare.

Personnel management is one important aspect of total business management and is directly concerned with the manpower employed in the organizations. Naturally, all aspects connected with the manpower management come within the scope of personnel management. It is connected with all other departments as manpower is required in all departments and all aspects relating to manpower are dealt with by the personnel department. In this sense, personnel management is connected with production, marketing, finance and other areas of management. Thus, the scope of personnel management is quite comprehensive. It covers personnel aspect, welfare aspect and industrial relations aspect of total business management. All functions of personnel management come within its scope.

FUNCTIONS OF HRM:
In order to achieve its objective, HRM must perform certain functions. These functions are within the scope of HRM. They help in realizing the objectives. Functions of personnel management are directly/indirectly related to the manpower available in the organization. A personnel manager has to perform the basic functions of management. These managerial functions include planning, organizing, directing and controlling personnel. The operative functions of the department are: procurement of staff, development of staff through training, payment of compensation to staff i.e. wages and salaries, integration of manpower i.e. fair reconciliation of individual, social and organizational goals and interest and maintenance of staff i.e. providing them safety at

the work place and also to offer welfare facilities and conveniences to employees. In brief, personnel management involves the following operational functions:

(1) PROCUREMENT OF MANPOWER:

Procurement means acquiring the manpower required by an organization from time-to-time. Such procurement will be from the employment market. The basic principle of procurement is right man for the right job. The procurement function includes manpower planning and forecasting, recruitment, selection, appointment, placement and induction of employees so as to have a team of efficient and capable employees for the benefit of organizations. Even promotions and transfers are covered by this broad personnel functions. At present, scientific methods are used for recruitment/selection of capable man-power for the benefit of the organization.

(2) DEVELOPMENT OF MAN-POWER:

Development of man-power means planning and execution of the training programmes for all categories of employees in order to develop new skills and qualities required for working at the higher level. Man-power development is possible through training and career development programmes and not simply by offering attractive wages to workers. Such man-power development is required for meeting the growing and changing needs of man-power along with the expansion and diversification of business activities. Executive development programmes are introduced for the benefit of higher level managers. Promotions transfers are possible when man-power development programmes are introduced regularly. Similarly, future manpower requirement will be met internally through HRD programmes. This suggest for importance/significance of human resource development. It aims at educating and training employees for the improvement of overall performance of an organization. HRD programmes are for education, training and development of existing man-power in an organization. This is for facing new problems and challenges likely to develop in the near future.

(3) PERFORMANCE AND COMPENSATION PAYMENT TO MANPOWER EMPLOYED:

Performance management involves performance planning, performance appraisal and performance counseling used for various purposes. One more function of personnel management is to pay compensation to the employees for the services rendered. For this, a fair system of remuneration payment needs to be introduced. Remuneration to employees should be attractive so that the labour force will be satisfied and disputes, etc. will be minimized. Fair wage payment acts as motivating factor in compensation management.

(4) INTEGRATION OF INTERESTS OF MAN-POWER AND THE ORGANISATION:

Man-power is interested in wage payment while organization is interested in higher profits, consumer loyalty, market reputation and so on. Personnel management has to reconcile the interests of the individual members of the organization with those of the organization. This will ensure cordial industrial relations. Reconciliation of individual, social and organisationals goals and interest is one challenge before personnel management.

(5) MOTIVATION AND MAINTENANCE OF MAN-POWER:

Motivation involves creating motivational environment favourable to the organization. This improves the quality of production and cost reduction. The function relating to maintaining satisfied man-power in the organization through the provision of welfare activities. For this, attention needs to be given to health and safety measures, maintenance of proper working conditions at the work place, provision of welfare facilities and other non-monetary benefits so as to create efficient and satisfied labour force with high morale. Even collective bargaining and workers participation come within this broad personnel function. Maintenance of stable man-power is difficult due to the availability of ample employment opportunities.