Human Resource Management is the process of recruiting, selecting, inducting

employees, providing orientation, imparting training and development, appraising the

performance of employees, deciding compensation and providing benefits, motivating
employees, maintaining proper relations with employees and their trade unions, ensuring
employees safety, welfare and healthy measures.

Human Resource Management involves management functions like planning,

organizing, directing and controlling

 It involves procurement, development, maintenance of human resource

 It helps to achieve individual, organizational and social objectives
 Human Resource Management is a multidisciplinary subject. It includes the study
of management, psychology, communication, economics and sociology.
 It involves team spirit and team work.
 It is a continuous process.

Edwin Flippo defines- Human Resource Management as “planning, organizing, directing,

controlling of procurement, development, compensation, integration , maintenance and
separation of human resources to the end that individual, organizational and social objectives
are achieved.”

The National Institute of Personal Management (NIPM) of India has defined human

resources – personal management as “that part of management which is concerned with people
at work and with their relationship within an enterprise. Its aim is to bring together and develop
into an effective organization of the men and women who make up enterprise and having regard
for the well – being of the individuals and of working groups, to enable them to make their best
contribution to its success”.

According to Decenzo and Robbins, “Human Resource Management is concerned with the
people dimension” in management. Since every organization is made up of people, acquiring
their services, developing their skills, motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment to the organization is essential to
achieve organsational objectives. This is true, regardless of the type of organization –
government, business, education, health or social action”.

Objectives of Human Resource Management

Societal objective.To be socially responsible to the needs and challenges of society
while minimizing the negative impact of such demands upon the organization. The failure of
organizations to use their resources for society's benefit may result in restrictions. For example,
societies may pass laws that limit human resource decisions.

“The greatest tragedy in America is not the destruction of our natural resources,
though that tragedy is great. The truly great tragedy is the destruction of our human
resources by our failure to fully utilize our abilities, which means that most men and
women go to their graves with their music still in them.” -  Oliver Wendell Holmes.

Organizational objective. To recognize that Human resource management exists to

contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist
the organization with its primary objectives. Simply stated, the department exists to serve the rest
of the organization.

"I emphasize this - no matter how good or successful you are or how clever or crafty,
your business and its future are in the hands of the people you hire".  --- Akio Morita
(Late) (Businessman and co-founder of Sony Corporation. Japan) Ref: The Book : MADE IN
JAPAN. Page.No.145

Functional objective.To maintain the department's contribution at a level appropriate

to the organisation's needs. Resources are wasted when Human Resource Management is more or
less sophisticated than the organisation demands. A department's level of service must be
appropriate for the organisation it serves. 

Personal objective. To assist employees in achieving their personal goals, at least

insofar as these goals enhance the individual's contribution to the organisation. Personal
objectives of employees must be met if workers are to be maintained, retained and motivated.
Otherwise, employee performance and satisfaction may decline, and employees may leave the
organisation.

Nature / features of Human Resource Management:

1. A part of Management Discipline:

HRM is a part of management discipline. It is not a discipline in itself but is only a field of study.
HRM, being a part of management process, draws heavily from management concepts,
principles and techniques and apply these in the management of human resources.

2. Universal Existence:

ADVERTISEMENTS:

HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of

management in an organisation.

3. Concerned with People:

HRM is all about people at work, both as individuals and groups. It tries to put people on
assigned job in order to produce goods results. The resultant gains are used to reward people
and motivate them towards further improvement is productivity.

4. Action oriented:

HRM focuses attention on action, rather than on record keeping, written procedures or rules.
The problems of employees are solved through rational policies.

5. Directed towards Achievement of Objectives:

HRM is directed towards achievement of organisational objectives by providing tools and

techniques of managing people in the organisation effectively.

6. Integrating Mechanism:

HRM tries to build and maintain cordial relation between people working at different levels in the
organisation. It tries to integrate human assets in the best possible manner for achieving
organisational goals.

7. Development Oriented:

HRM intends to develop the full potential of employees. The reward structure is turned to the
needs of employees. Training is provided to improve the skill of employees. Every attempt is
made to use their talents fully in the service of organisational goals.

8. Continuous Process:
HRM is not a one short deal. It cannot be practised only one hour each day or one day a week.
It requires constant alertness and awareness of human relations and their importance in every
day operations.

9. Comprehensive Function:

HRM is concerned with managing people at work. It covers all types of people at all levels in the
organisation. It applies to workers, supervisors, officers, manager and other types of personnel.

Evolution of Human resource management

Human Resource Management

Human Resource Management in its simplest definition means management of organization’s

manpower or workforce or human resources.

Evolution of HRM

The evolution of the concept of Human Resource Management is presented below

Period before industrial revolution – The society was primarily an agriculture economy with
limited production. Number of specialized crafts was limited and was usually carried out within
a village or community with apprentices assisting the master craftsmen. Communication channel
were limited.

Period of industrial revolution (1750 to 1850) – Industrial revolution marked the conversion of
economy from agriculture based to industry based. Modernization and increased means if
communication gave way to industrial setup. A department  was set up to look into workers
wages, welfare and other related issues. This led to emergence of personnel management with
the major task as

–          Worker’s wages and salaries

–          Worker’s record maintenance

–          Worker’s  housing facilities and health care

An important event in industrial revolution was growth of Labour Union (1790)  – The works
working in the industries or factories were subjected to long working hours and very less wages.
With growing unrest , workers across  the world started protest and this led to the establishment
of Labour unions. To deal with labour issues at one end and management at the other Personnel
Management department had to be  capable of politics and diplomacy , thus the industrial
relation department emerged.
 Post  Industrial revolution – The term Human resource Management saw a major evolution
after 1850. Various studies were released and many experiments were conducted during this
period which gave HRM altogether a new meaning and importance.

A brief overview of major theories release during this period is presented below

 Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the
evolution of scientific human resource management approach which was involved in
–          Worker’s training

–          Maintaining wage uniformity

–          Focus on attaining better productivity.

 Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). –
Observations and findings of Hawthrone experiment shifted the focus of Human resource from
increasing worker’s productivity to increasing worker’s efficiency through greater work
satisfaction.
 Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of
needs ( 1954) – These studies and observations led to the transition from the administrative and
passive Personnel Management approach to a more dynamic Human Resource
Management approach which considered workers as a valuable resource.
As a result of these principles and studies , Human resource management became increasingly
line management function , linked to core business operations. Some of the major activities of
HR department are listed as-

1. Recruitment and selection of skilled workforce.

2. Motivation and employee benefits
3. Training and development of workforce
4. Performance related salaries and appraisals.
Strategic Human Resource Management Approach

With increase in technology and knowledge base industries and as a result of global
competition , Human Resource Management is assuming more critical role today . Its major
accomplishment is aligning individual goals and objectives with corporate goals and objectives.
Strategic HRM focuses on actions that differentiate the organization from its competitors and
aims to make long term impact on the success of organization.
What is the purpose of Human resource management?
The purpose of the Human resource management is to make the job and deal with the job holder
(employee). So as to perform a job in an organisation, one needs to be identified. In order to
identify right person for a particular job, notification should be issued which contains job
description ( duties and responsibilities) and specifications ( academic qualifications and
physical qualifications). So as to verify the correctness of the candidates invited, they should be
tested by the suitable selection methods for picking-up right person. Subsequently selected
candidates should be provided with the proper training for performing his duties &
responsibilities mentioned in the notification. Later, assessment of employees' performance
should be done to know whether employees are performing to the desired standards set by the
management. Accordingly employees should be rewarded or paid for the job they did in the
organisation and their safety in the job is the responsibility of Hr manager or safety officer who
should instruct safety measures for the employees and see that they are scrupulously followed.
Healthy and welfare measures are so-so important to keep employees happy and motivated
which has direct impact on their productivity. Doing so all, maintaining proper and healthy
relationships between employees and management  avoids conflicts which will effect the overall
performance of the organisation. Most important thing is adherence and not to ignore
employment and labour laws which govern all the above said activities for a job. Contravenes  of
employment laws will cost to the organisation and its branding. Hence the Human resource
management is like a guardian angel for the organisation to sail smoothly and long-live.

The ten "Cs" of human resources management are: cost effectiveness, competitive, coherence,
credibility, communication, creativity, competitive advantage, competence, change, and
commitment. The ten "Cs" framework was developed by Alan Price in his book "Human
Resource Management in a Business Context".
Why Is Human Resource Management Important to All
Managers?
Why are these concepts and techniques important to all managers? ' Perhaps it's easier to
answer this by listing some of the personnel mistakes you don't want to make while man-
aging. For example, you don't want to:

1. Hire the wrong person for the job.

2. Experience high turnover
3. Have your people not doing their best
4. Waste time with useless interviews
5. Have your company taken to court because of discriminatory actions
6. Have your company cited under federal occupational safety laws for unsafe practices
7. Have some employees think their salaries are unfair and inequitable relative to others
in the organization
8. Allow a lack of training to undermine your department's effectiveness
9. Commit any unfair labor practices

Who is responsible for human resource management?

Human resource officer or Manager is responsible for human resource management

in the organization.

The HR Manager is a top-level manager responsible for the administration of all

human resource activities and policies. The director oversees compensation,
benefits, staffing, affirmative action, employee relations, health and safety, and
training/development functions. They also supervise professional human resources
staff.

Primary responsibilities of the Human resource

manager:
1. To develop a thorough knowledge of corporate culture, plans and policies.
2. To act as an internal change agent and consultant.
3. To initiate change and act as an expert and facilitator.
4. To actively involve himself in company’s strategy formulation.
5. To keep communication lines open between the HRD function and individuals and
groups both within and outside the organization.
6. To identify and evolve HRD strategies in consonance with overall business strategy.
7. To facilitate the development of various organizational teams and their working
relationship with other teams and individuals.
8. To try and relate people and work so that the organization objectives are achieved
effectively and efficiently.
9. To diagnose problems and to determine appropriate solution particularly in the human
resources areas.
10. To provide co-ordination and support services for the delivery of HRD programmes and
services.
11. To evaluate the impact of an HRD intervention or to conduct research so as to identify,
develop or test how HRD in general has improved individual or organizational
performance.

Core responsibilities of Human resource management

1. Planning for staffing needs
2. Employee Recruitment And Selection
3. Employee Compensation And Benefits
4. Employee Training and performance evaluation.

What is the role of a Human resource officer?

The Human Resource Manager is  responsible for overseeing human resources activities and
policies according to executive level direction. They supervise human resources staff as well
as see staffing, compensation , assessing and providing employee benefits, providing training
& development, safety & welfare of staff, maintaining healthy labor relations, providing
employee handbook and maintaining employment records as required by the employment
laws.
What is an employee handbook?
 An employee handbook defines your company culture. Great employee handbooks
motivate and engage employees.
 Conveys useful information about company policies and procedures.
 The US Supreme Court has made it clear that to protect the company, legal protections
should be clearly spelled out to employees.
 Employee handbooks are often an essential document in agency investigations and
employee claims.
 Tells the story of your company - Employee Handbooks are an excellent opportunity to
educate employees about the organization, its history,and its origin.
 An employee handbook helps with employee orientation and getting new employees up
to speed.
 Many companies offer multiple employee handbooks based on location, job
classification, union membership, etc.
 Employee handbooks are required as a risk management essential by Employment
Practices Liability insurance carriers.
 More than 1/2 of companies now distribute their employee handbooks online.

Function of Human Resource Management

 
 Basic (Managerial) function of Human Resource
Management
PLANNING - HR
Planning is the first and basic function of the management and  everything depends upon
planning as it is a process of thinking about things before they happen and to make preparations
in-advance to deal with them. Poor planning results in failure and effects overall system.
Therefore HR Mangers should be aware of when is right time to do things, when things should
be done and when things should not be done in order to achieve goals and objectives of the
organization.

 Establishing goals and objectives to be achieved  through the employees so as to

achieve the organizational mission set by the top-level management.

 Developing rules and procedures which has to be followed by the employees in order to

avoid any sort of discrimination among the employees in any of their functions, to enable
fair and transparent treatment among employees, to avoid conflict starting from
recruitment to the separation of employees, inculcate discipline among the employees, to
drive performance of employees and ultimately to avoid conflict and contravenes with
statutes and employment laws of the land, ultimately for smooth running of the
organization.

 Determining plans and forecasting techniques as a part of Human resource

planning to avoid any shortfall of workforce so as to avoid impact on the output of the
organisation, to draw the estimation of workforce exactly needed for the organisation and
to plan for attracting talented candidates.

 HR outsourcing: as that of make or buy decision in operations management, human

resource manager should be able to make decisions with regard to HR activities which
are to be executed by the management itself or to be outsourced when there is advantage
of expertise to bring in and cost-saving for organization. The following are the most
outsourced HR activities; legal advice and support, employee payroll, pensions, training
and development, recruitment, employee assistance, compensation and benefits,
outplacement is, human resource information systems, employee relations, policy-
making, strategic partnerships, appraisal of employees and resource planning.

Most small to medium-sized business owners know the frustration of spending more time than
they want on non-revenue generating activities from payroll to human resource management to
benefits and compensation.The answer for many businesses maybe to outsource part of their HR
functions to third party providers so that they can focus on their core business and also has
following benefits-
 1. Save money and reduce operating costs
2. Allow the company to focus on its core business
3. Reduce the number of HR staff and related staff expenses
4. Allow HR staff to focus more on strategy
5. Avoid the costs of major investment in technology
6. Improve metrics/measurement

ORGANIZING - HR
HR managers should be well aware of organizing everything related to human resource and
organisation as organizing is the process of making and arranging everything in the proper
manner in order to avoid any confusion and conflicts.

 Giving each member a specific tasks to finish overall objectives of the job given to an
employee is the duty of the Human Resource Manager, besides it also to the duty of
Human resource manager to define task clearly before entrusting job to an employee. HR
managers should keep in mind that task entrusted to employees should be matched with
their skill set and abilities and It is also lookout of HR managers to give training to
employees in the area or subject which is going to be entrusted to employees, otherwise
the task entrusted to employees gets failed and defeated.

 Establishing departments and divisions according to the nature of jobs and works in

order to improve the efficiency, expertise and speedup the work. Establishment of
separate divisions and departments would give easy and effective control over employees
by the management which would give better results and improve overall performance of
the organisation.

 Delegating authority to the members for a good cause and to make employees more
responsible towards their job and organisation is a part of employee development.
Delegating authority to employees makes them to be more responsible towards
organisation as there is a principle called authority equals to responsibility,vice versa
when you load an employee with responsibilities, he should be given authority so as to
fulfill the responsibilities casted upon employee. Authority without responsibility and
responsibility without authority defeats its purpose. Therefore when employees feels
responsible and accepts responsibilities, it is a good sign as it makes employees to be
engaged in the job.

 Establishing channels of authority and communication is the primary responsibility of

any human resource manager which would enable managers to effectively communicate
desired goals and objectives of the organisation. Having effective communication will
avoid conflicts, make staff to understand what exactly they are expected to and also
enable the manager to get the things done in time.
  Creating a system to coordinate the works of the members so as to make the
employees to work properly and not to cause any conflict in the allocation of the work to
the employees. Improper and discriminating allotment of the work we will make one or
the other employee feel overburden, burnout and can create conflicts among employees
among members which is not good for the organisational health.and building teams will
create teamwork which creates synergy among team that will bring out the best out of
them.

STAFFING - HR
Staffing is one of the key functions of human resource management as staffing is the process of
employing right people, providing suitable training and placing them in the right job by paying
them accordingly and satisfactorily.

 Determining the type of people to be hired should be emphasised as they are the

fundamental resource and investment for any organisation. Every organisation wants
right people with them but they come at a price. Employee compensation is a key factor
in primary motivating factor to attract talented and retain them in the organisation for a
long period of time.

 Compensating the employees is one of the core functions of the human resource
management. Among all the motivating factors money is the very important primary
motivating factor for any employee. Providing right compensation for the work done by
the employee will not only make  employee feel happy, it will also make the organisation
in complainance with employment laws of the land, if not it is unjustified and amounts to
exploitation of employees which is against law.

 Setting performance standards, measuring and evaluating the

employees: A performance appraisal is meant to help employees realise their strengths
and shortcomings and receive a compensation accordingly. The very purpose of
appraising the performance of employees is to evaluate and compensate accordingly.
Unless organisation sets performance standards to its employees, it cannot compare and
measure employees actual performance with the standard performance. HR managers
take performance gaps of employees for making decisions on employees with regard to
rewarding them with bonus, profit-sharing, stock options and payment of incentives or
not. These employee performance gaps will not only be considered for making decisions
with regard to compensation but it is also considered for making decisions with regard to
initiate corrective actions on said employees, promoting them to higher levels and if any
employees performance gaps are high, such employees will be demoted, suspended or
sometimes may be discharges from job.

 Counselling the employees as a Human Resource manager, for understanding and

helping people who have technical, personal and emotional or adjustment problems with
 an objective to reduce them, so that performance of employees are maintained at
expected level or even improved upon.

 Recruiting prospective employees and selecting the best ones from them is one of the
primary functions of human resource management. Recruiting is the process of inviting
the people who were willing to join the organisation and selecting best out of them is the
crucial process in which various selection tests are conducted. Having best people in the
organisation will make that organisation is best in all the ways which would create
employer brand that will help to attract talented people and also make them to retain in
the organisation long period of time.

 HR Metrics: Application of formulas for measuring and calculating core HR issues so as

to draw exact HR results and current scenario of organisation. The very purpose of HR
metrics is to indicate current position and performance of the organisation.

Core HR issues where HR metrics can be applied are Time to fill an employee, Cost per hire of
an employee, Employee absenteeism rate, Employee training others, Turnover cost, Turnover
rate, annual Turnover of an employee, Workers compensation cost for an employee, Revenue per
employee, Return on Investment (ROI) and Yield ratio.

Annual employee turnover rate        =                                              No of employees left                    

X 100
                                                                                                      beginning + ending
No of employee in a year / 2

Absence Rate

[(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of
workdays)] × 100

Cost per Hire

(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff +
Relocation costs + Recruiter pay and benefits) ÷ Number of Hires

Health Care Costs per Employee

Total cost of health care ÷ Total Employees

HR Expense Factor

HR expense ÷ Total operating expense

Human Capital ROI

Revenue − (Operating Expense − [Compensation cost + Benefit cost]) ÷ (Compensation cost +

Benefit cost)

Human Capital Value Added

Revenue − (Operating Expense − ([Compensation cost + Benefit Cost]) ÷ Total Number of FTE

Revenue Factor

Revenue ÷ Total Number of FTE

Time to fill

Total days elapsed to fill requisitions ÷ Number hired

Training Investment Factor

Total training cost ÷ Headcount

Turnover Costs

Cost to terminate + Cost per hire + Vacancy Cost + Learning curve loss

Turnover Rate

[Number of separations during month ÷ Average number of employees during month] × 100

Workers’ Compensation Cost per Employee

Total WC cost for Year ÷ Average number of employees

DIRECTING – HR
Directing is a knowledge, discipline and formal way of communicating to others that what you
are expecting from them to do for you or to an organization. Unless a HR manager has capability
of directing, he / she can't be said as full-fledged HR manager. when a HR manager has right
directing capabilities, it is gives clarity for employees what they are expected to perform,
removes confusion in employees and gives clarity of what results are expected by the
management from employees.

 Getting work done through subordinates so as to meet the organisation's goals and
objectives. Indeed getting work done to others is an art which every Human resource
manager should possess, for which employee motivation by the Human Resource
Management influences and matters a lot.

 Ensuring effective two-way communication for the exchange of information with the

subordinates in order to effectively communicate the goals and objectives of the
organisation as it plays key role in understanding what the Human Resource manager or
organisation is expecting from employees to perform. Miscommunication between
employees block the progress and even would lead to conflicts which eventually affects
the overall performance of the organisation.

 Motivating subordinates to strive for better performance by way of providing

employee recognition, rewards, intrinsic benefits, paid vacations, increments in salary,
gifts, any social security benefits to employees and their family members is one of the
functions of Human Resource Management.

 Maintaining the group morale by way of fair treatment among employees, being ethical
and generous towards employees, management being loyal to its employees and giving
priority to employee concerns. It is the responsibility of human Resource Manager to
guide always to its employees, otherwise lack of guidance often kills the morale of
employees. Training and development programmes not only improve the skills of
employees but also boost their morale, thereby making them happy and leading to longer
tenures. Apart from breaking the monotony in the workplace, training programmes offer
employees a learning platform where they are able to master new skills and become more
marketable.

CONTROLLING - HR
HR managers should have the knowledge of controlling all HR related matters, as they should be
able to think and decide what should be done and what should not be done and which should be
done and which should not be done while dealing with employees.

 Establishment of standard performance so as to measure the actual performance of the

employees by conducting performance evaluation for appraisals
  Measurement of actual performance with the established performance standards of
employees for finding out gaps in employee performance.

 Comparison of actual performance with the standard one to find the deviation for
initiation of corrective actions, if there are any deviations. Corrective actions include
giving proper and suitable training to such employees or withholding of increments in
payments until performance gaps are none. Demotion of employee, suspension and
discharge from job is initiated when serious deviations are identified

Operative function of Human Resource Management

PROCUREMENT – HR
Job analysis is a systematic process of gathering all the data & information pertaining to the job
for preparing of  job specification which determine the skills, qualifications & traits for job  and
preparation of job description which describes the duties and responsibilities so as to recruitment
and selection of employee, give satisfaction on the job, and feel motivation while doing the
job,etc. Harry L. Wylie defines  "Job analysis deals with the anatomy of the job.....This is the
complete study of the job embodying every known and determinable factor, including the duties
and responsibilities involved in its performance; the conditions under which performance is
carried on; the nature of the task; the qualifications required in the worker; and the conditions of
employment such as pay, hours, opportunities and privileges"

 Job design   is the process of deciding on the content of a job in terms of its duties and
responsibilities; on the methods to be used in carrying out the job, in terms of techniques,
systems and procedures and on the relationships that should exist between the job holder
and the superiors, subordinates and colleagues. Job enlargement, job enrichment, job
rotation, and job simplification are the various techniques used in a job design exercise. 
Job design goal is to minimize physical strain on the worker by structuring physical work
environment around the way the human body works.

 Recruitment & selection - Recruitment and selection of the human resources for an

organisation is the major and basic function of human resource management. Human
resources planning and recruiting precede the actual selection of people for positions in
an organisation. Recruiting is the process of inviting qualified job seekers by using
different platforms like issuing notification in regular newspapers or employment
newspapers which are exclusively meant for employment news and notifications,
television media, online and on social networking websites which have become mostly
used resources for recruitment and hiring people. There are two major source of
recruitment of employees, one is recruitment through internal sources and the other is
recruitment through external sources. Internal recruitment is the process of inviting or
giving chance to the people relating to concern organisation or to the people relating to
 the existing employees or directly giving opportunity to the existing employees. External
recruitment is the process of inviting job seekers who do not belong to or anyway related
with an organisation, which simply means inviting outside candidates.

Subsequently, selection of right person form the pool of candidates by administering various
selection tests like preliminarily screening, written tests, oral tests and interviews etc.

 Human resource planning (HRP) may be defined as strategy for acquisition, utilization,

improvement and preservation of the human resources of an enterprise. The objective is
to place right personnel for the right work and optimum utilization of the existing human
resources. HRP exists as a part of the planning process of business.
o The major activities of Human resource planning include:
1. Placement of employee in the job where he exactly fit
2. forecasting (future requirements),
3. inventorying (present strength),
4. anticipating (comparison of present and future requirements) and
5. planning (necessary programme to meet future requirements).
  Induction & Orientation: Induction of Employee is the first step towards gaining an
employees' commitment, Induction is aimed at introducing the job and organization to the
recruit and him or her to the organization. In a nutshell, it covers the organization’s
history, philosophy, mission and vision, and the managerial style of the
organization. Inform the financial benefits and different taxation policies
offered. Addresses trainings offered, performance expectations, and the work schedules
of the organization. Educate new employees on the laws, regulations and company
policies that applies to their role. Highlight the different safety and security aspects
related to the work environment. Orientation is the planned introduction of new
employees to their jobs, coworkers, and the organization so as to alien an employee with
their job role.

 Explain the role employees have to play to achieve organization's goals.

 Portray the organization structure demonstrating the various departments, the people
involved and their respective designation.It covers all the information starting from
customer profile, to the competitors’ product and services.

 Socialization is a process of making employees to mingle up with everyone for team-

spirit

DEVELOPMENT - HR
 Career planning and Career development; process of establishing personal career
objectives by employees and acting in a manner intended to bring them about. HR
managers should help their employees in knowing their strengths for placing them in
suitable job, guide employees what skills and knowledge should be acquired for attaining
higher positions, planning for suitable training for polishing existing skill set and
providing good work-life-balance to make balance between career and personal life, 
after all, every one work for their personal life . Career development according
to Schuler, "It is an activity to identify the individual needs, abilities and goals and the
organization’s job demands and job rewards and then through well designed programmes
of career development matching abilities with demands and rewards". Career
development does not guarantee success but without it employees would not be ready for
a job when the opportunity arises. HR managers should encourage their employees by
providing them suitable opportunities to grow  for promoting them to higher jobs
according to their skills and knowledge, identify and provide opportunities to employees
to learn new skills in the job and compensate accordingly and guiding employees in right
career path to develop in their career.

Top preferences for employees in India

* Career development
* Learning and training opportunities
* Good work-life balance
* Good relationship with superiors
  Executive development ; developing the skills and competencies of those that (will)
have executive positions in organisations.

 Employee training and development is the subsystem of an organization and core

function of human resource management. It ensures continuous skill development of
employees working in organisation and habituates process of learning for developing
knowledge to work. Imparting Training and Development to employees through
various methods is the foundation for obtaining quality output from employees.
Employee training methods or categorised into on-the-job training methods and off the
job training methods.

On-the-job training methods: job rotation, coaching, job instruction, committee

assignments, apprenticeship and internship

Of the job training methods: classroom lecture method, audiovisual training method,

simulation, bistable training, case studies, role playing and the programmed instruction
method.

 Overall development of organisation: Though human resource department is one of the

departments in organization, but it is linked to overall development of organisation as
employees are center for final output and organisation's performance. Whatever type of
job or department in any organisation  is made up-of employees alone. HR department
should keep in mind that it isn't just simply dealing with employees, but it's every HR
activity effects the performance of employees in turn it will show cascade effect on final
output of employees and finally on overall performance of organisation. If employees
aren't provided with proper and  relevant training, it would effect  their performance,
likewise if all employees have same situation  it would badly effects the organisation. If
employees aren't kept motivated continuously by way of providing benefits and perks
will lead them to become lethargy or if HR department fails to maintain and comply with
employment laws would sometime lead cancellation of business licence.

To make this point clear, Human resource department's failure to maintain employee safety,
welfare and healthy measures acccording to The Factories Act 1948 or failure to have an ICC
(Internal Complaints Committee) according to Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 will sometimes lead to closure or
cancellation of business. Like that there are other employment laws which makes organisation to
be in compliance with it for smooth running of organisation, if not it will invite unnecessary
troubles to an organisation.

COMPENSATION - HR
 Job evaluation; analyzing and assessing various jobs systematically to ascertain their
relative worth in an organization.
  Performance evaluation is also called as performance appraisal of employees. Human
Resource Managers can adopt various methods for assessing the performance of the
employees So as to take decisions with regard to compensating and rewarding
employees, training of employees if performance is poor and it would take corrective
actions on employees whose performance is poor. In order to evaluate the performance of
employees, HR managers first have to set up performance standards for comparing with
actual performance of employees to find out gaps of employee performance. Performance
evaluation or appraising performance of employees is the core and major task when
compared with other human resource management functions.

1. Traditional methods of Performance Appraisal

2. Modern Methods of Performance Appraisal
3. 360 Degrees Performance Appraisal

How to Give an Effective Employee Evaluation?

Define Expectations

•  Define what is expected of the employee

•  Make sure goals are measurable and observable

Create Goals

•  Discuss the goals with the employee

•  Obtain the employee’s agreement and signature

Provide Written Evaluations

•  Every six months, discuss performance

•  For struggling employees, consider once-a-month evaluations
•  Ensure written performance reviews reflect the entire evaluation period

Maintain a Performance Record

•  Make written notes throughout the year

•  Do both praising and correcting—in real time

Ensure Integrity of Evaluation

•  Written comments should be factual, detailed, and constructive

•  Performance criteria shouldn’t be changed after the review

•  Evaluations shouldn’t digress from the measures initially defined

 Wages or salary administration as prescribed by the labour laws, Wages for workers or
salary for employees is the basic and primary thing for which employee's work for an
organisation. It's administration of salaries by HR managers is very crucial function as
 financial implications and legal complaince is involved. Any deviations in payment of
salaries will lead to immediate dissatisfaction of employees and effects their moral and
any failure in payment of salaries, statutory contributions by employee and statutory
deductions from salary of an employee in accordance with the employment laws will
invite unnecessary complications and will be liable for penal action by the court of law.
Hence it is lookout of the Human resource management department to avoid such costly
mistake which also effects the organisation's reputation (Employer branding).    wages
are classifieds as

1. Minimum wage -  It is also called as irreducible wage, which should be

sufficient for worker to get food clothing and shelter.
2. Fair wage - Wage which is paid according to the work of the work
3. Living wage - It is just above minimum wage, which is sufficient to meet
minimum health expenses, children education with food, clothing and
shelter.

Salary nomenclature is used in the context of employees. Generally salary of employees is paid

monthly and it consist of various components like basic pay, dearness allowance and house rent
allowance especially in the case of government employees. Whereas private employees' salary
normally doesn't consist of said components as it is paid under single head that is salary and
benefits of employees doesn't come under salary head, therefore employee benefits could be
monetory or nonmonetary cannot be counted with salaries of employees, they are specifically
provided for providing social security and motivating employees. Especially government
employee salary format will be  Salary = Basic pay+ Dearness allowances+ House rent
allowance.

 Employee rewards, perks and benefits payments according to the employment and

labour laws. Employee benefits are categorised into statutory or mandatory and voluntary
benefits. Statutory benefits are compulsory benefits for employees, its denial for
payment of such benefits to their employees by the management, can be challenged in
the court of law. Whereas voluntary benefits claims cannot be legally enforceable in
the court of law in case management fails to pay to their employees. The purpose of
payment of voluntary benefits to employees is to attract talent, for retention of employees
in the organisation and for motivating employees, ultimately to keep employees happy.
Most of the voluntary benefits are non-monetary.

Top  employee benefits

1. Additional fixed pay

2. flexible work arrangements
3. retirement benefits
4. professional development support
5. training opportunities
6. hire incentives
 7. insurance benefit
8. health care assistance

Employee benefits

Compulsory employee benefits: Payment of bonus, Gratuity, Provident fund, Compensation in

case of accidents, Paid Leaves, Maternity leave for 26 weeks with full pay and Paternity benefit
of 15 days with full pay for male employee.

Employees State insurance provides following benefits to the employees whoever got covered
under employees State insurance scheme.

o Bickness benefit: ESIC provides 70% of average daily wages in cash during
medical leave, upto 91 days in two consecutive benefit periods.
o Medical benefit: ESIC provides reasonable Medical Care for self and family from
day one of entering into insurable employment.
o Disablement benefit: ESIC provides continuous monthly payment till injury lasts
for temporary disablement and for whole life for permanent  disablement.
o Maternity benefit: ESIC provides 100% of average daily wages in cash up to 26
weeks in confinement and 6 week in case of miscarriage, during maternity leave
and 12 weeks for commissioning mother and adopting mother.
o Unemployment allowance: ESIC Provides monthly cash allowance for a duration
of maximum 24 months in case of involuntary loss of employment or permanent
invalidity due to non-employment injury.

Voluntary employee benefits: Payment for time not worked, paid vacations, Surrogacy leave,
Adoption leave, Menstrual leave, Health and security benefits.

MAINTENANCE / MOTIVATION - HR
 Employee well-being; Providing good working conditions at workplace is the
fundamental duty of Human Resource Management department. Treating employees
inhumane is against to the Constitution of  India according to [Article 42 under Chapter
XXXIV of Directive Principles of State Policy of the Constitution of India]. 

It is also the duty of Human Resource Management to provide welfare measures like Pure water
drinking facilities, restrooms, lunchroom in an organisation having more than 150 employees,
minimum medical aid facility for 150 employees, maintenance of an ambulance in an
organisation having more than 500 employees, canteen in an organisation having more than 250
employees, crèches for children in the organisation having more than 30 women employees and
sitting facilities for employees wherever it is required and possible.as prescribed under The
Factories act 1948.

 Social security for employees: Providing and contributing Employee Provident fund,

Payment of Bonus, compensation, payment of gratuity, maternity benefit, paternity
benefit and employee insurance. In India there are few social security legislation which
are to be followed and complied by any organisation and it is the duty of the Human
Resource Manager to look after it.

 Payment of Gratuity Act, 1972

 Workmen's Compensation Act, 1923
 Employee State Insurance Act, [ESI] 1948
 Payment of Bonus Act, 1965
 The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 
 Maternity Benefit Act,1961 (Maternity Benefit (Amendment) Act, 2017)
o Maternity leave laws

 Worker's participation encouragement either individually or collectively, become

involved in one or more aspects of organizational decision making within the enterprises
in which they work Would make employees feel motivated, satisfaction and stay loyal to
the management. Therefore it would avoid unnecessary conflicts in between employees
and management while implementing management decisions. Management should ensure
decisions should not be taken arbitrarily without considering or consulting their
employees who work for their organisation. Especially human resource managers should
not take management decisions on their whims and fancies, especially in decisions
relating to their employees.. Article 43A of the Constitution of
India guarantees  'Participation of workers in management of industries' and falls
under Part IV - Directive Principles of State Policy and it should be ensured and
honoured by an organisation's human resource management.

 Providing Good work-life balance

 Motivating employees stimulate the desire and energy in employees to be continuously

interested in a job and committed it, role, or subject, and to exert persistent effort in
attaining a goal. The most important motivating factors for employees are to have a
healthy and good working environment, to have good monitory benefits, compensation
and rewards, to have encouragement and support from management and to have a chance
of professional growth and raise.

WHAT MATTERS & MOTIVATES MOST FOR EMPLOYEES AT WORK?

Top 10 global employees preferences

1. Job security & stability

 2. Financial compensation
3. Work appreciation by employer
4. Interesting work
5. Good & healthy relationship with colleagues
6. Good work-life balance
7. Good relationship with superiors
8. Learning & training opportunities
9. Career development
10. Financial stability of employer

 Job rotation is the human resource management technique in which employee is  moved
between two or more jobs in a systematic and planned manner. The objective is to expose
an employee to different experiences and wider variety of skills to enhance job
satisfaction and to cross-train them.

Advantages of job rotation of an employee are eliminate boredom of an employee, encourage

development, give employees a break from strenuous job duties, helps HR manager identify
where employee work best and gives HR manager a backup plan if an employee leaves.

 Maintaining HR records in accordance with employment laws and oranisational needs

is the basic function of Human Resource Management, conducting research for
identification of HR issues and find suitable solutions, doing Human Resource audit by
systematic verification strategies, policies, procedures, documentation, structure, systems
and practices with respect to the organization’s human resource management. 

 Human Resource  information system implementation lets you keep track of all your
employees and all information about them. It is usually done in a database or, more often,
in a series of inter-related databases.

INTEGRATION - HR
 Industrial relations is the process of management dealing with one or more unions with
a view to negotiate and subsequently administer collective bargaining agreement or
labour contract. Maintaining proper industrial relationships is the core activity of Human
Resource Management so as to avoid industrial disputes.

 Employee Discipline is a systematic procedure the set-rights and corrects or punishes a

subordinate by superior because a rule of procedure has been disobeyed or violated.
Discipline is the force that prompts employees to observe rules, regulations, standards
and procedures deemed necessary for an organization.

 Grievance redressed; Grievance procedure is a formal communication between an

employee and the management designed for the settlement of a grievance of employees.
 Grievance procedures differ from organization to organization as grievances can be very
damaging if not handled properly. The key causes of employee grievances are

1. Grievance resulting from management policies include

2. Grievance resulting from working conditions
3. Grievance resulting from inter-personal factors

 Dispute settlement : Causes of industrial disputes can be broadly classified into two

categories: economic and non-economic causes. The economic causes will include issues
relating to compensation like wages, bonus, allowances, and conditions for work,
working hours, leave and holidays without pay, unjust layoffs and retrenchments. The
non economic factors will include victimization of workers, ill treatment by staff
members, sympathetic strikes, political factors, indiscipline etc. (The Industrial
Disputes Act, 1947 governs rules for the settlement of disputes between the management
of industrial establishments and workmen.)

Now recently in the year 2010, a new chapter II-B is inserted in the Industrial Disputes Act, 1947
by way of amendment w.e.f 15th September, 2010, and a new section 9-C is added for having
grievance redressal committee.

Grievance Settlement Machinery

1. Any organisation having 20 or more employees should have grievance redressal

committee for the resolution of disputes.
2. The committee should consist of equal members from employer and employee.
3. The committee members should not exceed more than six members.
4. The committee should consist of one woman and male members equally.
5. The grievance redressal committee should complete its proceedings within 45 days on the
receipt of written complaint by the party who is having grievance.

 Collective bargaining: The collective bargaining as a policy has been in vogue in the

United Kingdom, the United States of America, Australia, New Zealand and other
countries. However in India the trade unions have more to learn from these countries to
tackle the industrial problems.The phrase ‘Collective Bargaining’ is coined by famous
authors Sydney and Beatrice Webb in their celebrated treatise on ‘History of Trade
Unions’. Collective Bargaining is a method of determining the terms and conditions of
employment and settling disputes arising from those terms by negotiating between the
employer and the employees or their trade union. The very fact that the parties reserve the
ultimate right to use economic weapons of strike and lock out helps in stimulating the
parties to arrive at an agreement.

The Encyclopedia Americana states that the American Federation of labour “insists upon the
equity of workers in their right to bargain collectively with employers through representatives of
their own choosing”.
 Being a spokesman of employees and organization: It is the responsibility of human
resource manager to be as, spokesman,  negotiator and middlemen between management
and employees for smoothening the flow of communication of management decisions
from top-level to bottom level and vice versa, for cushioning conflicts if any by
misunderstandings or misinterpretation and to establish healthy relations and good culture
within the organisation. In sometimes HR manager should take the responsibility of a
spokesman of organization when representing or dealing with other stakeholders.

 Resolving conflicts among employees is major task of human Resource Management.

Hr manager could follow the below steps for resolving conflicts. According to recent
study human resource managers are spending considerable amount of their job time on
resolving conflicts in between employees as diversity in conflicts are in raise and
showing impact on performance of employees and on organization.
o Understanding the cause, root and nature of the conflict.
o Encourage employees to solve conflicts themselves.
o Do not widen or magnify conflicts, Nip it in the bud quickly.
o Give an opportunity to both sides to say and listen to them
o Determine the real cause of issue, together.
o Check your employee handbook for solution and guidance.
o Come to a solution.
o Put it on paper for make them binding and for future reference in such cases.
o Train them how to communicate and avoid conflicts
o HR manager should be an idealistic and set an example himself.
 Prevention and dealing with sexual harassment: is crucial duty of Human Resource
Management, otherwise it may effect the organisation's culture and employer branding
which would consequently lead to collapse of the organization. Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 protects
women at the workplace from sexual harassment. Act defines sexual harassment at the
work place and creates a mechanism for redressal of complaints. It also provides
safeguards against false or malicious charges. Every employer is required to constitute an
Internal Complaints Committee at each office or branch with 10 or more employees. Any
employer who fails to constitute an Internal Complaints Committee as per the Sexual
 Harassment Act shall be liable for a penalty of up to Rs. 50,000 if a complaint is made to
the magistrate.

Any woman employee who has faced sexual harassment at the workplace, or any person
authorized by the Internal or Local Complaints Committee can file a complaint with the
Magistrate. Repeated non-compliance of this provision can result in the punishment being
doubled or even cancellation of the organisation's business license by the concern
government or local authority.

 The Indian Penal Code 1860 Section 354A, 354B,354C, 354D was newly inserted, especially

for the following acts which shall be treated as sexual harassment.

o Physical contact and advances involving unwelcome and explicit sexual

overtures; or
o demand request for sexual favours; or
o showing pornography again as the will of a woman; or
o making sexually coloured remarks on women.
o any man who assaults or uses criminal force to any women or abets such act with
the intention of disrobing (taking off one’s clothes) are compelling her to be
naked -section 354B'
o Any man who watches captures images of women engaging in a private act in
circumstances where she would usually have the exception are not being observed
either by the perpetrator or by any other person. - section 354C
o Following a woman and contacts, or attempts to contact such women repeatedly
despite a clear indication of disinterest by such women.- section 354D

Punishment
For the above said offences the punishment shall be for a period of one to three years of
imprisonment or fine, or both
Roles & Responsibilities of HR Managers in Organizations

Roles
1. Hiring from within and from outside / Recruitment
2. Attraction and selection
3. Employment testing 
4. Formal performance appraisal
5. Compensation and contingent pay
6. Employee benefit management
7. Promotion rules
8. Problem-solving groups (also called quality circles) 
9. Total Quality Management 
10. Information sharing
11. Job analysis and job design 
12. Job rotation
13. Attitude survey
14. Grievance procedure
15. Conflict resolution

Responsibilities
• Set objectives for the HR team and track progress
• Design and implement company policies that promote a healthy work
environment
• Develop compensation and benefits plans
• Support and suggest improvements to the entire recruitment process
• Host in-house recruitment events
• Discuss employees’ career development paths with managers
• Monitor HR metrics (e.g. turnover rates and cost-per-hire)
• Review departmental budgets
• Organize learning and development programs
• Ensure HR staff addresses employees’ requests and grievances in a timely
manner
• Maintain HR procedures that comply with labor regulations
Important Qualities for Human Resources Managers:
 Skillfulness and knowledge In HR
 The sense of work ethics
 Good presentation skill
 Conflict management
 Leadership abilities
 Multitasking abilities
 Ability to motivate others
 Efficiency to deal with ‘GRAY’
 Effective Communication
 Courage and confidence to handle complex matters

Human Resources Managers Skills:

 Decision-making skills
 Teamwork and collaboration
 Interpersonal skills
 Performance management
 Leadership skills
 Organizational skills
 Employee relations.
 Speaking skills
 Human Resources Information Software (HRIS)
 Worker’s compensation
 Scheduling and managing
 Customer service
 Project management
 Difference Between Personnel Management and Human
Resource Management

The main difference between Personnel Management and Human Resource Management lies in
their scope and orientation. While the scope of personnel management is limited and has an
inverted approach, wherein workers are viewed as tool. Here the behavior of the worker can be
manipulated as per the core competencies of the organization and are replaced when they are worn-
out.
On the other hand, human resource management has a wider scope and considers employees as
the asset to the organization. It promotes mutuality in terms of goals, responsibility, reward etc. that
will help in enhancing the economic performance and high level of human resource development.
In early centuries, when Human Resource Management (HRM) was not prevalent, then the staffing
and payroll of the employees were taken care of, by the Personnel Management (PM). It is popularly
known as Traditional Personnel Management. Human Resource Management have emerged as an
extension over the Traditional Personnel Management. So, in this article, we are going to throw light
on the meaning and differences between Personnel Management and Human Resource

Comparison Chart
BASIS FOR
PERSONNEL MANAGEMENT  HUMAN RESOURCE MANAGEMENT 
COMPARISON
The aspect of management that is The branch of management that focuses on the
concerned with the work force and their most effective use of the manpower of an entity, to
Meaning
relationship with the entity is known as achieve the organizational goals is known as
Personnel Management. Human Resource Management.
Approach  Traditional Modern 
Treatment of manpower Machines or Tools Asset 
Type of function  Routine function Strategic function 
Basis of Pay  Job Evaluation Performance Evaluation 
Management Role  Transactional Transformational 
Communication  Indirect Direct 
Labor Management  Collective Bargaining Contracts Individual Contracts 
Initiatives  Piecemeal Integrated 
Management Actions  Procedure Business needs
Decision Making  Slow Fast 
Job Design  Division of Labor Groups/Teams
Primarily on mundane activities like
Treat manpower of the organization as valued
Focus  employee hiring, remunerating, training,
assets, to be valued, used and preserved.
and harmony.

Definition of Personnel Management

Definition of Personnel Management
Personnel Management is a part of management that deals with the recruitment, hiring, staffing,
development, and compensation of the workforce and their relation with the organization to achieve
the organizational objectives. The primary functions of the personnel management are divided into
two categories:

 Operative Functions: The activities that are concerned with procurement, development,
compensation, job evaluation, employee welfare, utilization, maintenance and collective
bargaining.
 Managerial Function: Planning, Organizing, Directing, Motivation, Control, and Coordination
are the basic managerial activities performed by Personnel Management.

From the last two decades, as the development of technology has taken place and the humans are
replaced by machines. Similarly, this branch of management has also been superseded by Human
Resource Management.

Definition of Human Resource Management

Human Resource Management is that specialized and organized branch of management which is
concerned with the acquisition, maintenance, development, utilization and coordination of people at
work, in such a manner that they will give their best to the enterprise. It refers to a systematic
function of planning for the human resource needs and demands, selection, training, compensation,
and performance appraisal, to meet those requirements.

Human Resource Management is a continuous process of ensuring the availability of eligible and
willing workforce i.e. putting the right man at the right job. In a nutshell, it is an art of utilizing the
human resources of an organization, in the most efficient and effective way. HRM covers a broad
spectrum of activities which includes:
  Employment
 Recruitment and Selection
 Training and Development
 Employee Services
 Salary and Wages
 Industrial Relations
 Health and safety
 Education
 Working conditions
 Appraisal and Assessment

Key Differences Between Personnel Management and Human

Resource Management
The following are the major differences between Personnel Management and Human Resource
Management:

1. The part of management that deals with the workforce within the enterprise is known as
Personnel Management. The branch of management, which focuses on the best possible
use of the enterprise’s manpower is known as Human Resource Management.
2. Personnel Management treats workers as tools or machines whereas Human Resource
Management treats it as an important asset of the organization.
3. Human Resource Management is the advanced version of Personnel Management.
4. Decision Making is slow in Personnel Management, but the same is comparatively fast in
Human Resource Management.
5. In Personnel Management there is a piecemeal distribution of initiatives. However, integrated
distribution of initiatives is there in Human Resource Management.
6. In Personnel Management, the basis of job design is the division of work while, in the case of
Human Resource Management, employees are divided into groups or teams for performing
any task.
7. In PM, the negotiations are based on collective bargaining with the union leader. Conversely,
in HRM, there is no need for collective bargaining as individual contracts exist with each
employee.
8. In PM, the pay is based on job evaluation. Unlike HRM, where the basis of pay is
performance evaluation.
9. Personnel management primarily focuses on ordinary activities, such as employee hiring,
remunerating, training, and harmony. On the contrary, human resource management
focuses on treating employees as valued assets, which are to be valued, used and
preserved.

Computer Application and Human Resource Management!

The computer application in human resource management is the managerial applications of
computer use which is usually known as management information system. In case of Human
Resource Management, it is known as Human Resource Information System (HRIS). Computer
converts the data into meaningful information needed by the manager to make decisions,
planning and control.

The computer application in human resource management is the

managerial applications of computer use which is usually known as management information system.
In case of Human Resource Management, it is known as Human Resource Information System
(HRIS). ... Manager as a decision maker is a processor of information.

Today HRIS is computer based information system. Manager as a decision maker is a processor of
information. He must possess the ability to obtain the information, store the information, process and
retrieve the information and use it for the right decision.

Today’s computer languages are user friendly that allow manager to learn enough skills in a short time
ranging from a day or two to have an access to the most of their demand for immediate and ad hoc
information provided data are properly collected, organized and stored in a computer. Management must
insist on economic quality the quality which is cost effective. It should establish quality standards that
reflect needs of the organization. It can be easily done through “Quality Circles’. They should focus their
attention on programming techniques, documentations, new technology use etc. Computer is a time saver
device.
Management Information System:

Management information system or MIS is the old concept. The computerized MIS is new.
Executives used MIS for planning and control. Computerized MIS added new dimensions by
way of increased speed and accuracy. The use of computer has made the management
information system feasible. It is not necessary that management information system should be
computerized. There are host of tasks that are performed perfectly by employees and executives
but there are certain tasks that can be speedily and accurately performed by this electronic
machine” computer.

MIS helps in integrating organisational information. In respect of human resources management

it helps in having the integrated information in respect of human resources of the organisation.
The information can be utilized by anyone needing it for which the knowledge of computer is not
essential. Simply knowledge of using it will do. MIS is a support system for various functions of
management.
Computer use in HRM:

The modern technology has brought in sea changes and transformed the organisational structure,
working and culture. Computers and computer programmes have flooded into the organisations
of all kinds and types giving no chance to escape from their influence. They are widely used in
human resource management.

Human Resource Planning:

The vast data is required for human resource planning. Top management wants to prepare a long-
term strategic planning for human resources. Human resource information system provides
necessary information required for making essential projections regarding human resources
requirements. The information can also be utilized for acquiring human resources, their
promotion, transfer and career planning. Job analysis information helps in human resource
planning.
Acquisition of Human Resources:
Acquisition of human resources is done through recruitment and selection. Human resource
information system is a tool that provides a lot of help in internal posting of jobs which is done
through recruitment. It is an internal source of recruitment. The complete information regarding
skill, competence, knowledge, experience, training, educational qualification, age, sex etc.
available to the human resource executive through HRIS enabling him to fill up the vacant
position by way of promotion or transfer.

External recruitment also made easy with the help of computerized information’s maintained by
the organisations by way of keeping a track record of unsolicited applicants and at times taking
the help from private employment agencies who maintain databases regarding various types of
human resources available in different organisations and or other persons in search of jobs.

The acquisitions of human resources by way of selection are quite lengthy and complicated
procedure is adopted. All these complications are made easy by way of using computerized
information. Test and scanning of applications are accurately performed through computers
hence saving a lot of time and cost.
Training and Development:
In the area of training and development the computer has been used to a greater extent. There are
computer assisted instructions that are widely used training techniques. Computer assisted
instructions (C.A.I.) are the programmed learning methods.
Earliest in 1924 the use of rudimentary teaching machines were made but with the advent and
availability of computers the programmed training is in vogue now. The computerized training
system is utilized for hosts of job holders that include mechanics, clerks, pilots etc. Computer
simulation of real job situation is of particular importance. It is on the job training method. It
helps trainee to gain practical experience.
Under computer managed instructions the trainees’ competence is assessed by the computer
before start of the training. The assessment continues till the end of the training. The assessment
makes the trainer to modify training contents to suit the trainee’s needs.
Under computer based training, the facilities of computer aided instructions and computer
managed instructions are combined together. Being comprehensive it provides many advantages
to the trainee through effective learning. Computer -based training (CBT) provides immediate
feedback. A commoner gets more knowledge through CBT than in classroom training. The
training through CBT can be provided at the place of working or where the trainees assemble. It
is cost effective.
No costs are incurred on trainer as it is the programmed-based training. There is an improvement
in CBT with the addition of video which is high tech training technique and is known as
interactive video training. CD-ROM is also used for executive development. It is up to the
organisation to make a choice of appropriate computerized training technique depending upon
the availability of funds and the type of employees and executives undergoing training.
The high tech training methods have high initial investment but once purchased it is very cost
effective. The evaluation of trainees and training programme can be immediately available which
is not possible under other traditional training techniques.

Computer can store the information relating to trainees, their performance and their needs for
further training. Up to date information in this respect can be made available as and when
required by the human resource manager or any executive for that matter.

HRIS modules can be used to record the training received and cost of training can be monitored.
There is a constant need to update the skills and knowledge of the employees and executives to
meet the growing needs of the organisation. The computerised training programmes fulfill these
needs of the organisation.

Career and Succession Planning:

Career planning requires thorough check up of one’s own preferences, abilities, skills,
competence, knowledge and expertise and values and their matching with the job requirements at
the higher level available in the organisation or in other organisation. This is easily and
accurately done by the computer for the individual employee and executive and organisation.

The organisation can keep track of such ambitious employees and executives. Such personnel’s
are very conscious of their career and career path. They do not hesitate in leaving the
organisation if an opportunity in their career path is denied to them.

One can say that career planning and computer applications are made for each other. The
detailed inventory in respect of human resources of the organisation and the job details can be
stored in a computer. Succession system is another area where computer play an important role
in suggesting a suitable person to succeed a retired one at a position. This can be easily
maintained for employees and executives both.
Compensation:
Compensation is yet another area where computer applications can be made. The compensation
includes salary, wages and other benefits. The information required in this system is payroll and
financial records. Human resource information system aids in wage and salary administration.

Several software packages are available in this respect to maintain and monitor the compensation
administration. The employee gets the information relating to the salary drawn by him and
compulsory deductions from the salary along with his leave records till date every month.

It saves manual labour of maintaining the large and heavy ledgers. The details regarding
employees’ contribution to provided fund, the interest thereon is also maintained and at regular
interval the employees are handed over the details.
Performance Appraisal:
If merit or performance is rated by an individual may be superior in rank and hierarchy, there is a
scope for biased attitude. Computer can provide unbiased solution to the problem. Modules are
available to help in evaluating performance. There are several software’s available in evaluating
the performance of the employees and executives having several rating scales in critical areas of
performance. The organisation can make use of the relevant scales of evaluating the performance
of its employees of various grades and ranks by varying the rating scale provided by the
software.
Safety and Health:
Safety and health at workplace is very essential. Healthy employees free from any disease having
all the parts of body intact and safe are the assets of the organisation. The organization having
such human resources should boast upon itself. It deserves credit for excellent provisions in
respect of safety and health of its employees.
It is a dream away from facts. But organisation can take utmost care of its employees keeping the
records of occupational diseases, injuries and make the employees aware of them from time to
time and also draw attention of the employees towards hazardous chemicals and other such
materials and their use.
Human resource information system can develop a software and maintain the records of various
categories of occupational diseases, their dangers, how people suffer from them, medical
treatment available, methods of prevention, safety measures at the workplace, the cares to be
taken etc.
The employees can be, through computer network at regular intervals or daily, made aware of all
these and warn of the hazardous after effects. Computer in this respect can provide a healthiest
system for safety and health of the human resources of the organisation. The computers aid in
respect of maintaining health, cope up with stress, change in lifestyle and adopting the one that
suits to his or her health, dieting etc.
 Human Relations:
Maintaining better human relations is a problem faced by many organisations. Every organisation expects
better human relations and smooth functioning. The relations between union and management should be
smooth and of cooperation. The computers can help in keeping the records of negotiations between
unions and management, the agreements reached between the two.
Computer network helps in reminding the executives of the agreements and agreed terms between the
management and unions. Executive’s personal computer can be connected to an on line information
search and retrieval system human relations information network. Employees can also have the access to
the system knowing fully well what their leaders agree or disagree to. This promotes complete
transparency in human relations or industrial relations in the organisation.

What is Strategic HRM?

Strategic HRM definition

Strategic HRM refers to HR that is co-ordinated and consistent with the overall
business objectives in order to improve business performance. According to Purcell
(1999), SHRM focuses on actions that differentiate the business from its competitors.

Strategic HRM emphasizes the importance of HR – and the people in the business – to
the success of an organisation. Businesses with an emphasis on strategic HRM may
have an HR representative in the boardroom or advising/feeding back to senior
executives, and may also make use of HR business partners.
Critics of strategic human resource management say that it is a good idea in theory but
often hard to implement at the organisational level. Translating the organisation’s
objectives and values into tangible initiatives that can be driven by the HR department
is a complex problem underlying strategic HRM.

What is strategic human resource management?

Strategic human resource management is the connection between a company’s human

resources and its strategies, objectives, and goals. The aim of strategic human resource
management is to:

 Advance flexibility, innovation, and competitive advantage.

 Develop a fit for purpose organizational culture.
 Improve business performance.

In order for strategic human resource management to be effective, human resources (HR) must
play a vital role as a strategic partner when company policies are created and implemented.
Strategic HR can be demonstrated throughout different activities, such as hiring, training,
and rewarding employees.
 Why is strategic human resource management important?

Companies are more likely to be successful when all teams are working towards the
same objectives. Strategic HR carries out analysis of employees and determines the
actions required to increase their value to the company. Strategic human resource
management also uses the results of this analysis to develop HR techniques to address
employee weaknesses.

The following are benefits of strategic human resource management:

 Increased job satisfaction.

 Better work culture.
 Improved rates of customer satisfaction.
 Efficient resource management.
 A proactive approach to managing employees.
 Boost productivity.

Seven steps to strategic human resource management

Strategic human resource management is key for the retention and development of
quality staff. It’s likely that employees will feel valued and want to stay with a company
that places a premium on employee retention and engagement. Before you implement
strategic human resource management, you will need to create a strategic HR planning
process using the steps below:

1. Develop a thorough understanding of your company’s objectives

2. Evaluate your HR capability
3. Analyze your current HR capacity in light of your goals
4. Estimate your company’s future HR requirements
5. Determine the tools required for employees to complete the job
6. Implement the human resource management strategy
7. Evaluation and corrective action

st2365@srmist.edu.in