HUMAN RESOURCE MANAGEMENT

Introduction
Human Resource Management is the
organizational function that deals with
issues related to people such as
compensation, hiring, performance
management, organization
development, safety, wellness, benefits,
employee motivation, communication,
administration, and training.

Functions of HRM

Manageri
al

Operative

Managerial Functions

Planning
Organizin
g
Directing
Controllin
g

Planning

Planning is necessary to give the

organization its goals and directions to
establish best procedure to reach the
goals. Planning staff levels requires that
an assessment of present and future
needs of the organization be compared
with present resources and future
predicted resources. Appropriate steps
then be planned to bring demand and
supply into balance.

Organizing

After objectives have been established and

plans been developed then personnel manager
must design and develop organisation structure
to carry out various operations. Such as-

Grouping of personnel activity

Assignment of different groups of activities to
different individuals
Delegation according to task assigned
Co-ordination of activities of different individuals .

Directing

The directing function of the personnel

manager involves encouraging people to
work willingly and effectively for the goals
of the orgainsation.

Controlling

Controlling helps to evaluate and control

the performance of the department in
terms of various operative functions.

Operative Functions

Recruitment
Training &
Development
Remuneration
Reward system
Motivation
Records and statistics
Industrial relations
Separation

Recruitment

The process by which a job vacancy

is identified and potential employees are
notified.
The nature of the recruitment process
is regulated and subject
to employment law.
Main forms of recruitment through
advertising in newspapers, magazines,
trade papers and internal vacancy lists.

Training and Development

Provides new skills for the employee

Keeps the employee up to date
with changes in the field
Aims to improve efficiency

Remuneration

Concern with determination and

equitable remuneration of employees in
the organisation to the goals.

Reward system

The system of pay and benefits used by

the firm to reward workers
Money not the only method
Fringe benefits
Flexibility at work
Holidays, etc.

Motivation

To retain good staff and to encourage

them to give of their best while at work
requires attention to the financial and
psychological and even physiological
rewards offered by the organization as a
continuous exercise.

Records and statistics

Keeps employee training records

Achievement records
Transfer and promotion records
Absenteeism and labour turnover
records

Industrial relations
Good industrial relations, while a recognizable and
legitimate objective for an organization, are
difficult to define since a good system of industrial
relations involves complex relationships between:
(a) Workers (and their informal and formal groups, i.
e. trade union, organizations and their
representatives);
(b) Employers (and their managers and formal
organizations like trade and professional
associations);
(c) The government and government agencies.

Separation

Ensure the release of retirement benefits

Requirements of the employee

Difference between HRM and personnel

management
Human resource management is the new version of
personnel management. There is no any watertight
difference between human resource management and
personnel management. However, there are some
differences in the following matters.
1. Personnel management is a traditional approach of
managing people in the organization. Human resource
management is a modern approach of managing
people and their strengths in the organization.

2. Personnel management focuses on personnel

administration, employee welfare and labor relation.
Human resource management focuses on acquisition,
development, motivation and maintenance of human
resources in the organization.
3. Personnel management assumes people as a input for
achieving desired output. Human resource management
assumes people as an important and valuable resource for
achieving desired output.
4. Under personnel management, personnel function is
undertaken for employee's satisfaction. Under human
resource management, administrative function is
undertaken for goal achievement.

5. Under personnel management, employees are

provided with less training and development
opportunities. Under human resource management,
employees are provided with more training and
development opportunities.
6. In personnel management, decisions are made by the
top management as per the rules and regulation of the
organization. In human resource management, decisions
are made collectively after considering employee's
participation, authority, decentralization, competitive
environment etc.

7. Personnel management focuses on increased

production and output. Human resource management
focuses on effectiveness, culture, productivity and
employee's participation.
8. Personnel management is concerned with personnel
manager. Human resource management is concerned
with all level of managers from top to bottom.