Chapter 1

Introduction to human resource management

Human Resource Management (HRM) is an operation in companies designed to maximize employee

performance in order to meet the employer's strategic goals and objectives. More precisely, HRM focuses on
management of people within companies, emphasizing on policies and systems.

In short, HRM is the process of recruiting, selecting employees, providing proper orientation and induction,
imparting proper training and developing skills.

HRM

HRM also includes employee assessment like performance appraisal, facilitating proper compensation and
benefits, encouragement, maintaining proper relations with labour and with trade unions, and taking care of
employee safety, welfare and health by complying with labour laws of the state or country concerned.

The Scope of HRM

The scope of HRM is very wide. It consists of all the functions that come under the banner of human
resource management. The different functions are as follows −

Human Resources Planning

It is the process by which a company identifies how many positions are vacant and whether the company has
excess staff or shortage of staff and subsequently deals with this need of excess or shortage.

Job Analysis Design

Job analysis can be defined as the process of noticing and regulating in detail the particular job duties and
requirements and the relative importance of these duties for a given job.

Job analysis design is a process of designing jobs where evaluations are made regarding the data collected on
a job. It gives an elaborate description about each and every job in the company.

Recruitment and Selection

With respect to the information collected from job analysis, the company prepares advertisements and
publishes them on various social media platforms. This is known as recruitment.

A number of applications are received after the advertisement is presented, interviews are conducted and the
deserving employees are selected. Thus, recruitment and selection is yet another essential area of HRM.

Orientation and Induction

After the employees are selected, an induction or orientation program is organized. The employees are
updated about the background of the company as well as culture, values, and work ethics of the company
and they are also introduced to the other employees.

Training and Development

Employees have to undergo a training program, which assists them to put up a better performance on the job.
Sometimes, training is also conducted for currently working experienced staff so as to help them improve
their skills further. This is known as refresher training.
Performance Appraisal

After the employees have put in around 1 year of service, performance appraisal is organized in order to
check their performance. On the basis of these appraisals, future promotions, incentives, and increments in
salary are decided.

Compensation Planning and Remuneration

Under compensation planning and remuneration, various rules and regulations regarding compensation and
related aspects are taken care of. It is the duty of the HR department to look into remuneration and
compensation planning.

Features of HRM

Human Resource Management as a discipline includes the following features −

1. It is pervasive in nature, as it is present in all industries.

2. It focuses on outcomes and not on rules.
3. It helps employees develop and groom their potential completely.
4. It motivates employees to give their best to the company.
5. It is all about people at work, as individuals as well as in groups.
6. It tries to put people on assigned tasks in order to have good production or results.
7. It helps a company achieve its goals in the future by facilitating work for competent and well-
motivated employees.
8. It approaches to build and maintain cordial relationship among people working at various levels in
the company.

Basically, we can say that HRM is a multi-disciplinary activity, utilizing knowledge and inputs drawn from
psychology, economics, etc.

objective of human resource management

The primary objective of resource management is to ensure a seamless experience for the staff and other
people associated with management and organizational goals. Objectives of HRM include ensuring
availability of resources, easy access to data, on-time payroll, ensuring compliances, etc.

HRM objectives are basically influenced by organizational goals and vertical. The objective of HRM is to
ensure a stable work environment with data in one place and efficient operations.

Below are 8 main HRM objectives with in-depth elaboration respectively:

1. Achieve organizational goals

2. Work culture
3. Team integration
4. Training and Development
5. Employee motivation
6. Workforce empowerment
7. Retention
8. Data and compliance
Achieve organizational goals

HRM function starts here. One major HRM objective is to fulfil organizational goals. Utilizing human
resources to achieve business requirements and goals is very important for an effective HRM.

Organizational objectives include workforce handling, staff requirements like hiring and on boarding,
payroll management, and retirement. To succeed at the organizational objectives, HR requires efficient
planning and execution. Without a set parameter for goals and mission and resources, HRM is incomplete.
After you know your resources and planning at the place, achieving HRM objectives is not so difficult.

Work culture

When it comes to handling HRM effectively and following objectives, employee and work environment are
the prior factors. Work culture plays an important role in defining HRM and business performance.

An HR manager needs to be active while calling for strategies to foster better work culture. Automated
activities like leave approvals, reimbursement request acknowledgement, etc. can help you. Quick operations
and empowerment to employees help in creating positive vibes at the workplace. Developing and
maintaining healthy and transparent relations among team members and teams contribute to building a good
example of work culture. Adopting the right solutions like employee management software can solve more
than half of your job.

Team integration

One of the prime roles and objectives of HRM is to make sure the team coordinates efficiently. Easy
communication is the need for teams at an enterprise. An HR here must ensure a tool to assist in making the
integration easier and smooth.

The proper connection between individuals is a must to ensure productivity. To make HR management
successful, you need to search for better integration portals to make data availability easier for people.
Functional objectives like team integration are to produce streamlined operations and tasks.

Training and Development

Workforce being effective and performing are two important and basic elements to work upon for achieving
your basic objectives at an organization. With proper training and providing future opportunities, employees
feel safe and organized.

Effective employment is highly dependent upon the training practices. Providing opportunities to employees
is one great step to ensure workforce management.

There might be difficulties such as planning, scheduling, training sessions, and evaluation of each on-boards.
To lessen the pain, solutions like training management software can help you with auto-reminders, easy
scheduler, reporting, and tracking capability. The HR manager can ensure effective training practice at the
firm.

Employee motivation

The prime objective of HR folk is to keep things on the right path. Keep distractions and negative vibes
away. For this, the employees need to be attended to and kept motivated throughout. How can HR motivate
employees?
Give powers to them. Take their views on things. Involve them in weekly meets or decisions. Even if it is a
fresher, let them join. Keep the morale always high. Employee recognition like yearly appraisal based on
their performance can to help.

An automated feedback system for performance appraisal management can keep your employees motivated
and ensure productivity throughout the service. When the employees are satisfied and fulfilled, nothing else
can prevent you from losing your objectives and goals.

Workforce empowerment

Talking about employee motivation, nothing can work better than empowering them. Empowering them
with tools like ESS (employee self-service) portal can help save HR efforts too.

With the portal, employees can themselves apply for approvals and track them through their mobile phones.
Be it leave request, generating payslip, checking PF account, remaining leaves, upcoming holidays, manager
details, or anything, HR intervention is least required. Now, you no more need to knock on HR’s desk for
small queries.

What else could empowering workforce take? How would you ensure the right workforce engagement?
Effective HRM measures can definitely help. Look for easy employee management tips.

Retention

Providing leadership qualities and opportunities, a healthy working area, and employee retention are some
prime objectives and deliverables of the HR managers. Keeping employees retained and motivated needs to
be a top priority for HRM.

Other than employee hiring, on boarding, and training cycle, keeping the employees retained for long is the
biggest challenge AKA objective of the HR people. It often occurs that employees leave the organization
within 2 months of on boarding. It can be due to ineffective training management or a rough hiring process.

Employee experience needs to be carefully attended. Keeping your employees retained can help maintain a
good state of employee turnover. To keep it stable, the HR manager needs to learn the best retention tips for
business.

Data and compliance

Functional and organizational objectives also include managing company/ employee data and managing
compliances. Managing payroll compliances and keeping the company out of any penalties or fines is a huge
challenge for HR people and managers.

Even a small error or miscalculation can owe you huge penalties and even may lose respect. When
committing to tasks like employment and payroll, you need to be careful about laws and regulations. The
objective here is to keep any unwanted claims at bay for smooth functioning.

Automated software like the HRMS system can help you keep errors at the side and leave no window for
owing any penalty from IRS. It is the responsibility of HR to follow IRS guidelines and standards for
effective employment at the company. Stay assured of all the legalities.
Comparison Table Between Personnel Management and Human Resource
Management

Parameters of comparison Personnel management Human resource

management
Definition Personnel management Human resource
defines the relationship management defines the
between the entity. achievement of an
organizational entity.
Approach Method Personnel management is Human resource
approached by the traditional management is approached
method. by the modern method.
Treatment of employees. Employees are treated like Employees are treated as
machines. assets.
Function type Personnel management has a Human resource
routine function management has a strategic
function.
Payment Payment is done based on Payment is done based on
job evaluation performance evaluation.
Parameters of comparison Personnel management Human resource
management

Importance of HRM are:

Objective: -

HRM helps a company to achieve its objective from time to time by creating a positive attitude among
workers. Reducing wastage and making maximum use of resources etc.

Facilitates professional growth: -

Due to proper HR policies employees are trained well and this makes them ready for future promotions.
Their talent can be utilized not only in the company in which they are currently working but also in other
companies which the employees may join in the future.

Better relations between union and management: -

Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union
members start realizing that the company is also interested in the workers and will not go against them
therefore chances of going on strike are greatly reduced.

Helps an individual to work in a team/group: -

Effective HR practices teach individuals team work and adjustment. The individuals are now very
comfortable while working in team thus team work improves.

Identifies person for the future: -

Since employees are constantly trained, they are ready to meet the job requirements. The company is also
able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of the
advantages of HRM is preparing people for the future.
Allocating the jobs to the right person: -

If proper recruitment and selection methods are followed, the company will be able to select the right people
for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied
with their job leading to decrease in labour turnover.

Improves the economy:

Effective HR practices lead to higher profits and better performance by companies due to this the company
achieves a chance to enter into new business and start new ventured thus industrial development increases
and the economy improves.

Functions of Human Resource Management

Human Resource Management functions can be classified into the following three categories.

 Managerial Functions,
 Operative Functions, and
 Advisory Functions.

The Managerial Functions of Human Resource Management are as follows:

1. Human Resource Planning - In this function of HRM, the number and type of employees needed to
accomplish organizational goals are determined. Research is an important part of this function, information
is collected and analysed to identify current and future human resource needs and to forecast changing
values, attitudes, and behaviour of employees and their impact on the organization.

2. Organizing - In an organization tasks are allocated among its members, relationships are identified, and
activities are integrated towards a common objective. Relationships are established among the employees so
that they can collectively contribute to the attainment of the organization's goal.

3. Directing - Activating employees at different levels and making them contribute maximum to the
organization is possible through proper direction and motivation. Taping the maximum potentialities of the
employees is possible through motivation and command.

4. Controlling - After planning, organizing, and directing, employees' actual performance is checked,
verified, and compared with the plans. If the actual performance is found deviated from the plan, control
measures are required to be taken.

The Operative Functions of Human Resource Management are as follows:

1. Recruitment and Selection - Recruitment of candidates is the function preceding the selection, which
brings the pool of prospective candidates for the organization so that the management can select the right
candidate from this pool.

2. Job Analysis and Design - Job analysis is the process of describing the nature of a job and specifying the
human requirements like qualification, skills, and work experience to perform that job. Job design aims at
outlining and organizing tasks, duties, and responsibilities into a single unit of work for the achievement of
certain objectives.
3. Performance Appraisal - Human resource professionals are required to perform this function to ensure that
the performance of employees is at an acceptable level.

4. Training and Development - This function of human resource management helps employees acquire skills
and knowledge to perform their jobs effectively. Training and development programs are organized for both
new and existing employees. Employees are prepared for higher-level responsibilities through training and
development.

5. Wage and Salary Administration - Human resource management determines what is to be paid for
different types of jobs. Human resource management decides employee's compensation which includes -
wage administration, salary administration, incentives, bonuses, fringe benefits, etc.,

6. Employee Welfare - This function refers to various services, benefits, and facilities that are provided to
employees for their well-being.

7. Maintenance - Human resource is considered an asset for the organization. Employee turnover is not
considered good for the organization. Human resource management always tries to keep their best
performing employees with the organization.

8. Labour Relations - This function refers to human resource management interaction with employees
represented by a trade union. Employees come together and form a union to obtain more voice in decisions
affecting wage, benefits, working conditions, etc.,

9. Personnel Research - Personnel research is done by human resource management to gather employees'
opinions on wages and salaries, promotions, working conditions, welfare activities, leadership, etc., Such
researches help in understanding employee satisfaction, employee turnover, employee termination, etc.,

10. Personnel Record - This function involves recording, maintaining, and retrieving employee-related
information like - application forms, employment history, working hours, earnings, employee absents and
presents, employee turnover, and other data related to employees.

The Advisory Functions of Human Resource Management are as follows:

Human Resource Management is expert in managing human resources and so can give advice on matters
related to human resources of the organization. Human Resource Management can offer advice to:

1. Advised to Top Management

The personnel manager advises the top management in the formulation and evaluation of personnel
programs, policies, and procedures.

2. Advised to Departmental Heads

The personnel manager advises the heads of various departments on matters such as manpower planning, job
analysis, job design, recruitment, selection, placement, training, performance appraisal, etc.

The general HRM processes are as follows:

This is the most significant and primary process for formulating appropriate strategy for the organisation.
This includes putting the right person in the right place according to his skills and achievements. It starts
with the recruitment and goes until the proper training of the employee so that he becomes an asset for the
company.

1. Recruitment

It is a positive process of posting job openings and attracting prospective employees to apply for their
desired job openings in an organisation so that the eligible candidate can be selected.

2. Selection

Selection is quite a necessary process in HRM. It involves eliminating the unsuitable candidates through the
process of tests or interviews and identifying the suitable ones, which are the best fit for the positions.

3. Hiring

This entails to the process of officially offering the job to the ideal candidate and giving them the date of
joining.

4. Training and development

The hired candidates are given training and their skills are brushed so that they become more efficient in
their work and handle future challenges.

5. Performance management

There should be proper management of the work done and the future goals. Performance management refers
to appraising the performance of the employees and enhancing it. For such a management, it is necessary to
encourage the employees so as to raise their confidence levels. This can be done by providing them with fair
rewards so that they work in their optimum productivity levels.

6. Remuneration to employees and benefits

Fair salary or remuneration plays a very important role in motivating an employee to accomplish
organisational goals. If the employees get rewards for their best performance, they will get job satisfaction.
The rewards not just include salaries, but it also includes incentives and fringe benefits.

7. Employee Relations

There should be a sound relation between the employee and the organisation. There are various factors
which motivate as well as demotivate the employees to stick with the organisation. These factors include
working environment, labour law and relations, compensation, etc. The employers must ensure all these
factors to build employee relationships that in turn garner better employee retention.

Conclusion
So, these were the core processes of HRM. All the processes should be cohesive and in conformity with each
other so that HR strategies can gain success. Here at MITSDE, we entail all our candidates with requisite
skills so that they can follow as these processes effectively.

Top 10 Key Roles and Responsibilities of HR Manager

1. Human Resource Planning

HR managers are responsible for planning and achieving organizational objectives. They usually engage in
identifying, preparing, and executing business goals with top-level executives.

This proactive participation in planning enables HR managers to gain a thorough understanding of the
activities required to support the sustainable growth of the company. This, in turn, empowers HRs to assign
the right resources to the right project and ensures timely delivery.

The role of HR manager includes analysing and acknowledging team leaders (TL) about their expected vs.
actual results. They also help TLs better understand their target and create strategies to achieve them.

2. Job Analysis and Design

As mentioned above, human resource planning requires assigning the right resources to the right project.
And if the right person is not in the organization, HR managers are responsible for designing the job analysis
to hire them.

A job analysis includes:

 Job description
 Employee’s position in the organization
 Who the employee should report to
 Resources the employee will need to perform the job efficiently
 Individual data related to the post, such as technical skills, work experience, etc.
 Work schedule
 Salary and incentives
 Personal attributes, such as personality, values, and interests

In addition to this, the responsibilities of the HR manager include:

 Job rotation: Transferring employees from one task to another depending on the requirement and
their skills
 Job enlargement: Merging previously distributed (similar) tasks into one job
 Job enrichment: Adding more responsibility to an employee’s job
 Creating high-performance working groups: Building teams to complete tasks that require high levels
of performance

3. Hiring Candidates
Finding and hiring the right talent is a very complex process. Modern HR managers do more than just post
job requirements in portals to fill open positions. They develop strategic solutions to attract the right
candidates to fulfil the demands of the business.

An HR manager might also be responsible for a company’s employer brand reputation—or at minimum,
guiding the branding. Employer branding is a critical part of communicating a company’s culture and work-
life balance to potential employees. As more and more candidates search for open positions via social media,
managing employer brand is likely going to overlap with an HR manager’s job duties.

4. Training and Development

Hiring the best candidates is just half the job. HR managers need to train and upskill them to maximize their
return on investment.

The type of training and development new employees require depends on their experience. For example, if
they are fresher’s, managers might need to arrange for skill-development training programs to ensure their
work meets the industry standards.

However, if the recruits already have a few years of experience, managers might only need to train them
about company policies.

5. Design Workplace Policies

It is essential for HR managers to design workplace policies to reduce conflicts, legal issues, and improve
employee productivity. These policies are designed in a way that protects the interests of both the employees
and employers alike.

Though workplace policies differ from organization to organization, the things it includes remain the same
in every company, such as:

 Standard operating procedures

 Anti-harassment and non-discrimination
 Paid leaves, sick leaves, and time-off benefits
 Meal and break periods
 Time tracking
 Employee attendance and punctuality

HR managers also need to comply with federal, state, and local laws while designing workplace policies.
Some laws require managers to communicate the workplace policies in writing. If you are an HR manager
(or aspiring to be), make sure to stay on top of the local laws to avoid issues later.

6. Monitor Performance

Closely related to training, HR roles and responsibilities include examining employee performance records
to identify the scopes of improvement and arranging training workshops to upskill them.
93% of employees say professional growth is a priority. By providing employees with a chance to learn
something new and grow professionally, you can create a positive environment and boost employee loyalty.

Besides, improving your employees’ skills brings additional benefits to the organization.

First, they feel they are a vital part of the company

Second, due to increased job satisfaction, they will give their best in each task

The way you help employees improve their performance depends on the available resources. For instance, if
you have a high budget, you can arrange trainers to personally analyse and train them to achieve better
results. If not, you can enrol them to attend conferences, webinars, online courses, etc.

7. Maintaining Work Culture

As an HR manager, it is your responsibility to shape and maintain organizational culture. It is essential to

create a positive impression of the company from day one, so the new employees know what to expect.

Besides, a person’s performance depends largely on the environment he is working in. Therefore, you need
to instil a certain level of comfort to eliminate any stressful atmosphere that might affect employees’
performance.

It is also vital to have an open-door policy so that employees can communicate their problems freely. This
helps improve employee job satisfaction and retain talent.

8. Resolve Conflict

In every organization, employees come from diverse backgrounds. And when people with opposite opinions
meet, the chances of having a conflict rise significantly.

Whether the issue is between two employees or an employee and the management, it’s the HR manager who
has to intervene and resolve it.

Besides, the HR manager must listen to both parties without being biased or judgemental. They also need to
go to the root of the matter, which includes questioning other employees.

Depending on the type of conflict, HR managers also hold the right to fire an employee. However, this
situation usually arises in cases of harassment in the office.

9. Ensure Health and Safety of Employee

Employees are the asset of the organization. Unless they are safe and healthy, they won’t be able to give
their best to the company. Thus, HR managers need to ensure the health and safety of employees.

The way you plan for your employees’ health, and safety varies from company to company. For instance, for
organizations that provide cab services to their staff, HR managers need to make sure that they are
coming/reaching safely. It usually requires them to track the GPS of company cabs, call the employee/driver,
keep a tab on the expected vs. actual arrival time.

Other roles of HR managers, in terms of health and safety of employees, include:

  Arranging an on premise doctor for emergencies
 Arranging an on premise ambulance
 Setting employee health benefits
 Setting up a sick room in the office for employees to rest, in case they are unwell
 Organizing fire safety training workshops
 Ensuring the food in the canteen (if you have) is hygienic

10. Rewards and Incentives

Lastly, HR managers need to reward employees based on their performance and other factors like
punctuality. The biggest benefit of rewarding workers is that it creates a desire for other employees to excel
at their job in the hope of getting incentives.

The type of rewards and incentives could be anything, such as holiday packages, a word of appreciation and
recognition, promotions, or bonuses.

Additionally, you can consider giving the power to employees to choose the type of reward they want. Let
them decide whether they want a bonus, flexible work times, leave, etc. It will make them feel valued,
increase job satisfaction, and boost productivity.

Conclusion

HR managers are responsible for creating and managing a strong team. Whether it is human resource
planning, job analysis, hiring the right talent, or resolving conflicts within the organization, it’s the HR
manager who handles these tasks.