Unit 1: Human Resource Management

• Introduction to HRM;
Human resource management, or HRM, involves coordinating, managing, and
allocating human capital, or employees, in ways that move an organization’s goals
forward. HRM focuses on investing in employees, ensuring their safety, and
managing all aspects of staffing from hiring to compensate and development.
HRM careers may specialize in compensation, training, or managing
employees. Most HRM professionals hold a bachelor’s degree and some go on
to pursue a master's degree. HRM professionals at all levels can also earn
professional certifications to help build knowledge and increase earning
potential. HRM’s goal is to build a company culture and carry out its mission
and overall goals through the management of employees.
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.

Definition of Human Resource Management (HRM)

Human resource management is organizing, coordinating, and managing

employees within an organization to carry out an organization’s mission,
vision, and goals. This includes recruiting, hiring, training, compensating,
retaining, and motivating employees.
HRM staff also develops and enforces policies and procedures that help ensure
employee safety. The HRM team manages adherence to federal and state laws
that may work to protect employees’ private information and ensure their
physical safety and mental and emotional well-being. Organizations of varying
sizes and industries rely on HRM to keep business running smoothly and
efficiently.

2. Dale Yoder: “HRM is the provision of leadership and direction of people in

their working or employment relationship.”
3.Mathis and Jackson: “HRM is the effective use of Human
resources and organization through the management of people related activities.
4. Ricky W. Griffin: “Human Resource Management is the set of
organizational activities directed at attracting, developing and maintaining an
effective workforce.”
5. Gray Dessler: “The policies and practices one needs to carry out the people
or human resource aspects of a management position, including
recruiting, screening, training, rewarding, and appraising.”
6. Milkovich & Boudreau: Human Resource Management is a series of
decision that affect the relationship between employee and employer: it affects
many constituencies and is intended to influences the effectiveness of employee
and employer.
7. David A DeCenzo and Stephen p. Robbins: “Human is made of four
activities:

1) Staffing
2) Training and development
3) Motivation
4) Maintained

❖ Scope of HRM:
The most important asset of any business is its employees, which are the
backbone of any organization. Human Resources is the department that takes
care of all the issues related to the employees of an organization.
Human resources are responsible for analysing the needs of a company, hiring
and recruiting, the orientation and the induction of new employees, training
them once they join the organization and taking care of their salaries and
reimbursements, and making sure they are aware of the company culture and
values. They also ensure that the right person is hired for the right job. To
comprehend more about what is the scope of human resource management, you
can pursue an HR course for clarity.

The scope of HRM includes several aspects. Some of them are:

1. Human Resource Planning
This is a step through which the human resource department identifies the needs
of a company. This can include identifying departments that are understaffed as
well as those which are overstaffed. It is crucial to make sure that this step is
correct because it is done according to the company’s future course of action.
2. Job Analysis Design
Job analysis involves identifying what is required to do a particular job. This
includes identifying and outlining the skills needed to do that job, the nature of
the job, and what other responsibilities will come with that job. This will help in
writing the job descriptions when hiring.
3 Recruitment and Selection
After the job analysis is done and the job requirements are made, the process of
recruitment starts. Recruitment involves identifying and attracting potential
candidates to the jobs. Once there is a certain number of candidates, the
selection is made based on the qualifications and skill sets and also how they
perform in interviews.
4 Induction and Orientation
Once the candidate has been selected, he/she is welcomed to the organization,
and an induction or orientation session is conducted. This includes introducing
him/her to the work culture and ethics of the company. They are also introduced
to the team they will be working with. To make the candidate feel at ease, the
HR staff strives to perform this in a casual setting.
5 Training and Development
Once the new employee has been onboarded, training sessions are conducted to
train him/her according to the needs of the company and also increase their
efficiencies. Training and development sessions are not necessarily conducted
for the new employees, existing employees also go through training sessions
from time to time.
6 Performance Appraisal
Another important scope of Human Resource Management (HRM) is
performance appraisal. After the candidate has spent some certain time on the
job, a performance appraisal is conducted to check the performance, whether it
has been up to mark or not. Based on these appraisals future promotions and
salaries are made. If an employee is lacking somewhere additional training
sessions are conducted.
7 Remuneration
The employees who perform well are rewarded with incentives and
other benefits. It is the job of the human resource department to
identify such employees and reward them accordingly. This also
helps in boosting employee morale.
8 Motivation, Welfare, and Safety
Any organization needs to keep a fun and positive work environment. It is also
essential to keep the employees motivated to ensure that they stay with the
company and their productivity is also increased. Different activities can be
conducted to increase motivation and bonding among the employees.
Motivation is not necessarily in the form of monetary benefits, it could also be
promotions, rewards, and recognition. Certain safety regulations also need to be
followed for the benefit of the employee.
9. Industrial Relations
The human resource department must maintain a healthy and
working relationship between the employees and the upper
management for the smooth functioning of the organization. A few
issues such as unsafe working conditions or low salaries should be
handled carefully by the HR department.
10. Employee Grievance
The HR department should take feedback from the employees from
time to time. This will help in understanding any difficulties that the
employees might be facing and help in making the work conditions
better. This helps in building trust with the employees. It is also
important to make sure that this is done confidentially.

❖ Functions of HRM;

There are two types of function

• Managerial function
Human Resource Department is an integral part of any organization. Also, the
Human Resource Manager (HRM) is a member of the management. Four basic
functions of Human Resource Management are Planning, Directing, Controlling
and Organizing. In this article, we will discuss the functions of HRM in detail.
Planning
A manager must plan ahead in order to get things done by his subordinates. It is
also important to plan in order to give the organization its goals.
Also, planning helps establish the best procedures to reach the goals. Further,
some effective managers devote a substantial part of their time to planning.
With respect to the human resource department, planning involves determining
the personnel programs that can contribute to achieving the organization’s
goals.
These programs include anticipating the hiring needs of the organization,
planning job requirements, descriptions, and determining the sources of
recruitment.
Organizing
After the human resource manager establishes the objectives and develops plans
and programs to achieve them, he needs to design and develop the organization’s
structure to carry out the different operations. Developing the organization’s
structure includes:

• Grouping of personnel activity into functions or positions

• Assigning different groups of activities to different individuals
• Delegating authority according to the tasks assigned and
responsibilities involved
• Coordinating activities of different employees
Directing
The HR Manager can create plans, but implementing the plans smoothly depends
on how motivated the people are. The directing functions of HRM involve
encouraging people to work willingly and efficiently to achieve the goals of the
organization. In simpler words, the directing functions of HRM entail guiding and
motivating people to accomplish the personnel programs. The HRM can motivate
the employees through career planning and salary administration by boosting the
employee’s morale, developing relationships, providing safety requirements, and
looking after the welfare of employees. In order to do this effectively, the HRM
must identify the needs of the employees and the means and methods to satisfy
them. Motivation is a continuous process as employees have new needs and
expectations when the old ones are satisfied.
Controlling
Controlling is all about regulating activities in accordance with the plans
formulated based on the objectives of the organization. This is the fourth function
of the HRM and completes the cycle. In this, the manager observes and
subsequently compares the results with the set standards. Further, he corrects
any deviations that might occur. Controlling is one of the important functions of
HRM as it helps him evaluate and control the performance of the department with
respect to different operative functions. It also involves appraisals, audit, statistics,
etc.

• Operative function

1) Employment:
This step involves finding candidates who can turn into employees and is a
perfect fit for the organization. It also involves recruiting someone with a proper
skill set and understanding the number of persons needed to fulfill
the organization's goal. Some of the steps involved in this sub-sect of operative
functions are recruitment, selection, and personnel placement.

2. Compensation: As the name suggests, this is a step involved with determining

the remuneration amount for an employee in exchange for their contribution to the
organizational goals. As an aspiring HR manager, it is essential to remember that
the remuneration can be monetary or non-monetary rewards. Certain factors
influence the remuneration of an employee. They are: Requirement of the
job Basic needs Legal provision Organization’s capacity to pay

3. Development: This function can be described as a follow-up of the

employment function. Under this, the HR manager is responsible for training the
new employees properly. They have to teach each employee properly to ensure
their skill sets are utilized appropriately. It is also a process that lays the
foundation for developing an employee in a way that can help them climb the
ladder within the organization. To ensure the growth of the employees, HR
managers are required to create proper training programs to help solve the
purpose. It is important to mention that the HR managers are responsible for
training not just the new employees but the old ones too. Wondering how
managers come up with effective programs? They have to learn it, and
the Knowledge Hut certification course can help.

4. Working conditions and Welfare: The function of the HR

department doesn't end with just hiring someone and training them. There is much
more to that situation; it involves creating a workspace where employees feel
comfortable and motivated to work. An HR manager's job is to ensure appropriate
workplace conditions. They need to ensure that the workspace is safe and healthy
for employees. As an HR manager, one has to provide all the services related
to the employees' physical, mental, and social welfare. Some of the aspects are:
• Cafeteria
• Restrooms
• Group insurance
• Education for children of employees
• Counseling
• Recreational activities
8 Motivation Keeping: employees motivated is among the
key functions of the human resource department. It has been seen
that employees often hold back from relating to the overall
organizational goal because they don't feel motivated enough. The
HRM department's responsibility is to create such an environment
where the employees feel adequately motivated to give their best.
7. Personal Record: An employee's journey is documented right
from the day they joined. It is the HRM department's responsibility to
maintain the personnel records. The records contain information on
their appointment, raining, appraisal, promotion,
transfer, achievement, and other things related to the organization.
Other than these, the department also maintains records to ensure that
employees follow the organization's policies properly.
8. Separation: When an employee decides to leave a company or
retire, it is the job of the HRM department to handle the separation of
that person from the organization. Also, the personnel manager is the
one who handles the retirement benefits for employees who are
retiring from the office.
9. Industrial Relations No: one can work alone. It is also true for an
organization that has to stay in touch with several other bodies to
ensure its smooth working. A human resource manager is responsible
for maintaining relationships with other industries. As an HR
manager, one can help in several things, like collective bargaining,
settlement of disputes, and joint consultation. Furthermore, their job is
to maintain an efficient relationship with the labor union or other
concerned bodies.
❖ Importance of HRM:
Human resources management is considered one of the important administrative
departments in various bodies and business organizations, and its importance is
summarized according to the following points:

Access to Right People: HRM gives you access to the right people at the
right time. HRM acts as a bridge between departmental leaders and resources and
finds the right people for the right job. Also, HR is critical in developing a
succession plan for critical positions and allows the flow of specific talent in and
out of the organization
Effective use of manpower: HRM has the capacity to make sure that
employees are placed in the right position, and also makes efficient use of them.
After selecting an employee, they can be put in a workstation that better fits their
skillset.
Manpower Motivation: HRM (Human Resource Management) keeps
staff motivated by providing rewards and incentives. HRMs work to create a
compensation plan for employees that provides the best motivation for their work.
If a worker is highly motivated, they will put in their best effort to accomplish
company objectives.
The morale of the Employees: Human resource managers make efforts to
improve employees’ morale by inviting suggestions from group members,
providing incentives, etc. because employees work in a group. Teamwork is
essential for the success of an organization, so it is important to improve employee
morale. Motivation and Morale are two critical M’s of Human Resource
Management and every organization looks forward to a motivated and engaged
workforce.
Employee Development: HRM enables career development. As manpower is
one of an organization’s valuable assets, it is vital that companies use this
effectively. If your employees are not motivated and loyal then they have no use
to you and will not produce quality work. Hence, HRM plays a critical role in
reskilling and upskilling the employees thereby increasing the strategic and
competitive advantage of an organization
Maintaining Relationships in the Organization: The HRM department
is responsible for helping establish working relationships among company
members and their respective jobs. The HRM department is also in charge of
creating clear lines of authority and responsibility among various departments.
Building an Employer Image: In many cases, we have seen that an
aggrieved employee creates major issues in employer building. With the advent of
social media and social job rating platforms like Glassdoor and LinkedIn, HR
assumes a very important role in the value perception of an organization. An
organization with a good work culture can acquire and retain great employees
Social Responsibility: HRM helps fulfil the social responsibility of the
organization. By providing appropriate training and development programs,
organizations provide employees with the necessary skills to produce quality
goods and services for social progress. This results in a sustainable and
responsible business.
Nation Building: Effective HRM is required in order to speed up the economic
development of a nation in order to promote peace and prosperity. Taking an
organizational view of the HRM can be a parochial way. Building an ethical base
of employees is critical for building an organization and helps fulfil the national
responsibilities of an organization.

1. HRM provides human resources with various and appropriate qualifications

by relying on the best management that contributes to the development of
production in quality and quantity.
2. HRM provides all the tools and means for individual employees by
preparing a set of training programs, and providing wages and incentives
that support the best performance and increase the productivity rate.

3. HRM enhances coordination among the various administrative units and

the tasks of individual employees by activating the role of discussion with
the executive management, as it is concerned with activities related to all
individuals.

4. HRM helps to discover problems and difficulties related to individuals,

which negatively affect the effectiveness of the organization, and it also
helps managers to manage employee issues and solve them through advice
and guidance.

5. HRM provides support to executive directors in order to achieve the goals

of the organization.

6. HRM contributes to the study of all organizational and effectiveness

competencies and indicators used in measuring the efficiency of
performance, the rates of accidents that affect the work, and other indicators
and averages.

7. HRM provides an appropriate organizational climate for work, by

motivating employees, which will positively affect their job satisfaction,
and thus increase productivity.

8. HRM pays attention to achieving the organization’s strategic objectives, by

making use of the competencies present in it.

9. HRM helps in training employees and achieving their job stability, as well
as wages and salaries, to ensure increased productivity.

10. HRM helps save high costs on the organization, which employees may
incur if they are suspended from work, or if they are not granted
promotions or bonuses.

11. HRM helps achieve belonging to the human element, by setting up a fair
system of wages, incentives, and taking care of human relations in the
organization.

12. HRM helps achieve the highest possible productivity through qualitative
and quantitative planning of the human resources needed by the
organization.
 13.HRM helps maintain work ethics, paying attention to behavioural policies,
and opening the field for communication between management and
workers.

Role of HR Manager

Recruitment: One of the major responsibilities of a HR manager is to recruit

personal. The success of an organisation largely depends on the workforce
employed, so it is essential that the right people are hired for the right role.

Learning and development: Learning is a continuous process and essential to

enhance employees’ productivity. HR managers are responsible for the orientation
and induction of new employees, as well as the professional development of

existing employees. They are responsible for strategizing development

programmes. Furthermore, they must have the ability to identify and analyse the
areas that employees need training for.

Building employee relations: Effective employee relations go a long way in

boosting productivity and contributes significantly to an organisation’s success.
Employee relations strategies are implemented to ensure that an organisation
caters to the overall well-being of employees.

Compensation and benefits: A major component of a HR manager’s job role is

handling compensation and benefits. They are responsible for devising
compensation strategies, performance management systems and compensation
structures, as well as negotiating pay and benefit packages with potential
employees
❖ Organizational Structure for HRM