HUMAN RESOURCE MANAGEMENT

MEANING

Human resource management simply means managing human resources human resource
management is the process of managing people within an organization strategically and coherently.
It includes all the activities related to employee recruitment, development, compensation, and
retention

Human Resources (HR) plays a crucial role in a company's success. It is responsible for managing
people, the most valuable asset of any organization. HR helps attract, develop, and retain the best
talent, ensure a positive work environment, and maintain a healthy organizational culture. It is also
responsible for ensuring that the company complies with labor laws and regulations, thereby
mitigating legal risks.

DEFINITION

personnel management / human resource management as "the planning, organizing directing and
controlling of the procurement, development, compensation, integration, maintenance and
reproduction of human resources, to the end that individual, organizational and societal objectives
are established".

Edwin B Flippo

FEATURES OF HUMAN RESOURCES MANAGEMENT

1. Management Function
Human resource management is an essential component of general management. Therefore HRM
also involves the application of management functions and principles.

2. Comprehensive Function
HRM is a comprehensive function because it is related with managing people at work. It covers all
types of people at all levels of organization.

3. Individual Consideration
Every employee is considered as an individual. Programms and policies are designed with a view to
facilitate employee satisfaction and growth.

4. Action Oriented
HRM is action oriented. All the activities are undertaken to solve personnel problem to achieve both
organizational and personal objectives.
5. Continuous Function
Human resource management is a continuous function. It is a never-ending process. This function
takes place in the business continuously from its commencement to closure.

6. Development of Human Resources

The knowledge, capability, skill and potentialities of employees are developed to achieve both
individual and organizational goals.

7. Pervasive in Nature
HRM found to exist in business as well as non-business organizations such as education, health care,
recreation and the like. It can be applied in all areas where people element is involved. Therefore its
application is not confined to industry alone.

8. Achievement of Objectives
Human resource management is an essential element that helps an organization to achieve its
objectives in the future by providing competent and well-motivated employees.

9. Human Behavior
The primary task of HRM is to deal with the complex nature of human relationship with in the
organization. It is concerned with employee's behavioural, emotional and their social aspects.

10. New Discipline

As a discipline human resource management is of a recent origin.

FUNCTIONS AND SCOPE OF HUMAN RESOURCE MANAGEMENT

1. Human resource planning

A well-defined plan is an essential element of human resource management. Planning is necessary

for all the activities related with HRM. It is concerned with the determination of the number of
personnel required in an organization. Right person should be appointed at right job at right
time.

2. Job Analysis and Design

Job analysis is a detailed and systematic study of jobs. It is the study of qualitative aspect of human
resource requirement. Job design is related with deciding the contents of the job in terms of its
duties and responsibilities.

3. Recruitment and Selection

Recruitment is a systematic process of searching the required qualified personnel and stimulates
them to apply for jobs in the establishment. Selection is the process of choosing the most suitable
persons out of all applicants.
4. Orientations and Placement

Orientation is given to newly selected employees in order to provide variety of information relating
to organization such as its rules and regulations, his subordinates and superiors.

5. Training and Development

Proper training should be given to employees to acquire new knowledge and skills. Many training
and development programmes are designed by the company in order to make the employees more
capable and fit in performing their work.

6. Performance Appraisals and Job Evaluation

Performance appraisal is the process of assessing the performance and progress of an employee or
of a group of employees on a given job. It also measures their potential for development. In job
evaluation, the relative worth of the job is determined.

7. Employees and Executive Remuneration

It is the responsibility of the every human resource manager to design and implement a suitable
wage and salary structure for the benefit of the employees.

8. Motivation

The human resource manager should adopt appropriate measures to motivate employees to achieve
organizational objectives

9. Communication

Communication is considered to be the part and parcel human resource management.

Communication involves transmission of ideas, information, facts, opinions or emotions by two or
more persons. Communication helps much in managing and coordinating the employees of an
organization more effectively.

10. Human Welfare

Labour welfare aims at providing such service facilities and amenities, which enables a worker to
perform their work in healthy atmosphere

11. Health and Safety

Due attention should be given to industrial health and safety of employees. Sufficient measures
should be taken to protect workers against industrial accidents.

12. Industrial Relations

The management should give due consideration for maintaining a harmonious relationship
between management and employees.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Managerial Functions 2. Operative Functions.

1. Planning 1. Procurement
2. Organising 2. Training and Development
3. Directing 3. Compensation
4. Co-ordination. 4. Integration
5. Controlling 5. Maintenance
6. Welfare Activities
7. Personnel Records
8. Promotion, Transfer and
Termination
9. Negotiation with Trade
Unions
10. Miscellaneous Functions

MANAGERIAL FUNCTIONS

A human resource manager is required to discharge his managerial functions in order to achieve the
goal of his department. It includes planning, organizing, directing. Coordinating and controlling
various activities of personnel department.

1. Planning

A plan is a blue print of the course of action to be undertaken in a future period of time. In the
context of personnel management, planning is the determination of human resource needs, or
manpower requirements in advance. Its objectives, policies and programmes. Planning of human
resource specifically include the following.

1. Determination of human resource needs.

2. Deciding the source of procurement of human resources.
3. Determination of training needs of personnel.
4. Selecting appropriate motivation techniques for inducing the personnel to contribute maximum
to accomplish desired results

2. Organizing

Organizing is the process of allocating tasks among its members for achieving organizational
objectives.
It specifies how the duties are to be divided among the different departments and the employees.
Each employee should be given the task according to his ability and capacity. It is the personnel
manager's job to establish line and staff relationship, assigns authority, responsibility and
accountability to everybody in the organization.

3. Directing

Direction is a function of management, which is connected with instructing, guiding and inspiring
people in the organization to achieve its objectives. Consequently direction Includes supervision,
motivation, leadership and communication. . The personnel management also verifies the
effectiveness of various plan and policies of motivation.

4. Co-ordination.

The entire activities of the organization are to be properly coordinated to achieve organizational
goals. Co-ordination should be done at all levels of an organization. HRM department co-ordinates
the task of developing, interpreting and reviewing personal programmes and policies related to
employees

5. Controlling

Controlling is a process, which verifies whether everything occurs in the organization according to
plans. It involves the observation, comparison and evaluation of the workers performance with the
pre-determined standards. If variations are found, corrective measures are taken immediately. The
personnel manager evaluates the performance of personnel and formulates future plan, policies and
programmes.

OPERATIVE FUNCTIONS

Personnel department does the operative or service function of human resource management.
These functions include activities like procurement, development and compensation of employees.
Operative functions involve the following functions

1. Procurement

this is the first main operative function of personnel management. Right person should be
appointed at the right place; at the right time. So this function is related with procurement of
sufficient number of competent persons for performing business tasks

2. Training and Development

Training is the process of learning new skills or improving existing ones, usually to perform a
specific job or task.
Development: The process of growing and improving oneself, one's skills, or one's organization, to
reach full potential

Proper training should be given to employees for Increasing their skills and abilities. Various
methods are available for this purpose. Lectures, discussions, demonstration are some of the
methods used for giving training to employees.

3. Compensation

Remuneration refers to the payment or compensation received for services or works done. It can
include wages, salaries, bonuses, benefits, and other forms of compensation. The personnel
management / HRM must determine the remuneration of workers in the organization
. Workers are remunerated in two ways.

1. Monetary
2. Non-monetary

While deciding adequate and equitable remuneration, the basic necessities, requirements of jobs,
legal provisions regarding minimum wages, capacity of the organization to pay, wage level offered
by competitors etc. should be considered. If employees are paid less, they may leave the job at an
earliest opportunity. So compensation should be fixed in such a way that it is able to attract and
retain qualified and competent persons in the organization.

4. Integration

The human resource/ personnel manager should reconcile the interest of workers with that of the
organization. A sense of belonging is to be created among employees they are to be properly
motivated. They should think that what ever may be done for organization, it is for them also. This
will bring about harmony of interest among the employees and employer.

5. Maintenance

A pleasant work environment will increase the motivation and morale of employees. The personnel
manager has to look after the health of the workers at work and off work. They should be provided
with sanitation. Safety measures, canteen, recreation room etc

6. Welfare Activities
The personnel management should provide various welfare services, which relate to the physical
and social well being of the employees. It includes

1. Provision of medical facilities

2. Provide restaurants and other recreation facilities.

3. Provision of cafeteria, rest room, counseling, group insurance, etc..

7. Personnel Records

Personnel department should maintain personnel record of employees. They should keep sufficient
records relating to employees training, development, achievement, transfer, promotion etc. It is also
necessary to keep records relating to personnel behaviour such as labour turnover, absenteeism etc
of labour force.

8. Promotion, Transfer and Termination

Personnel department should assist the management to design suitable promotion policy, policies
regarding transfers and terminations.

9. Negotiation with Trade Unions

The personnel management has to conduct negotiations with labour unions and with other
employee representatives on matter of common interest

10. Miscellaneous Functions

1. It helps in the establishment of an effective communication system.

2. It will help to undertake research. This is highly beneficial to the management because it provides
information to them on a continuous basis for the purpose of making important decisions on the
personnel area, especially with regard to manpower planning.

3. It assists line management to develop an effective appraisal system and evaluate the performance
of their respective personnel.

PERSONNEL MANAGEMENT

Meaning & Definition

The term personnel management was originated in USA.

Personnel management is related with the management of manpower.
The important task of personnel management is to help every employee to grow himself to the
maximum.
He also gets a fair chance to develop his potentialities at the fullest level. It creates an atmosphere
to work together with others to achieve the desired goal.
 It is an art of acquiring, training, developing, and maintaining a competent and efficient work force
in the organisation.

"the planning, organizing. directing and controlling of the procurement, development,

compensation, integration and maintenance and separation of human resources to the end that
individual, organisation, and social objectives are accomplished".

Edwin B Flippo

personnel management is that branch of management. which is concerned with recruitment,

placement, development, motivation, and maintenance of competent and loyal workers. it is related
with the management of human resources of an organization

it is related with the management of human resources of an organization

CHARACTERISTICS OF PERSONNEL MANAGEMENT

1. Management of Human Resources

Many people with different positions and qualifications may be employed in an enterprise. The
primary task of personnel management is to manage these work forces so as to get maximum
benefit both to the organisation and employees.

2. Concerned With Employees

Personnel management deals with employees. They must be effectively utilised. It considers
employees as individuals on the one hand and as a member of a group on the other.

3. Continuous Nature

The personnel management is a continuous process. It is an activity that is to be continuously

practiced.

4. Formulation of Personnel Policies

Personnel management is concerned with formulation of personnel policies related with

recruitment, selection, training, promotion, transfer, job evaluation, merit rating. working condition,
etc.

5. Goal Oriented

The goals of the organisation can be achieved only through Personnel management. It tries to
secure the maximum contribution from the people working in an organisation.

6. Creation of Congenial Atmosphere

Personnel management creates a friendly environment in the enterprise by way of establishing
pleasant work relationship among all member of the organisation. Each member of the enterprise is
treated on equal and impartial basis and given human treatment.

7. Ensures Social Economic and Individual Satisfaction

Personnel management ensures social, economic and individual satisfaction of employees at all
levels.

SCOPE OF PERSONNEL MANAGEMENT

1. Employment of Personnel

This area covers with the procurement of employees. It includes hiring of personnel-the right
people, in the right place, at the right time. Manpower requirements are determined and their
recruitment, selection, placement, and induction are done.

2. Development

This function is related with increasing efficiency and skill of employees.

3. Setting Up of Promotion Strategy and Policy

The personnel management formulates the suitable promotion policy. Under this, the basis of
promotion viz, seniority, merit or both is determined.

4. Job Analysis and Job Description

In job analysis, job, duties and responsibilities are defined and the information of various factors
relating to jobs are collected and compiled. It is mainly to determine the work condition, nature of
work, qualities of persons to be employed on job and privileges to be given on the job etc.
Job description is the result of job analysis. It classifies the job into various sub-jobs and analyse
the nature of each sub-job.

5. Merit Rating

After placing a person in a job, his performance should be evaluated. This is done through the
technique of merit rating.

6. Compensation

The wages of the employees are to be determined. Monetary and non-monetary forms of
compensation may be introduced in an enterprise. The personnel management

Management should help the top-level management to prepare good compensation plans.
7. Welfare

Welfare activities such as education, recreation, and sanitary condition etc of employees are another
care of personnel management.

8. Personal Records

It includes collection and maintenance of complete bio-data of each and every employee. The
personnel department should maintain it.

9. Job Evaluation

The relative worth of the job is determined in job evaluation. It tries to define the place of job in the
organisation.

10. Labour Management Relations

It includes all activities, which help the management in getting the work done by the labour force in
the best possible manner, to accomplish the main objective of organisation.

SIMILARITIES BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCES

MANAGEMENT

Human resource management is a recent origin. It started in the last part of 19th century. Personnel
specialists substituted the term "personnel management" with "Human Resource management".
The important similarities between Human Resource Management and personnel management are
as follows.

1. Both models emphasize the importance of integrating personnel/ Human Resource Management
practices with organisational goals.

2. Both models are vested with the management.

3. both models are give importance to Individuals, their development, remuneration, and
motivation to achieve organisational goals.

4. Both give emphasis on appointing right person at right position at right time.

DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE

MANAGEMENT

HUMAN RESOURCE MANAGEMENT PERSONNEL MANAGEMENT

Human resource management give emphasis not management Is a management activity which is
only employee development but also largely aimed at non-mangers
development of management team.
HRM treat people as an asset to be used for the HRM treat people as an asset to be used for the
benefit of an organisation, its employees and benefit of an organisation, its employees and
society as a whole society as a whole
job categories and grades are few in HRM job categories and grades are many in PM
Focuses on managing the organization's Focuses on managing individual employees'
workforce as a whole, aligning HR strategies performance, development, and well-being.
with business objectives.

- Emphasizes a more systematic and structured Typically involves a more individualized

approach approach.

Typically used in larger organizations or in a - Often used in smaller organizations or in a

more formal context. more informal context.

Encompasses a broader range of activities, Emphasizes personal growth, career

including recruitment, selection, training, development, and employee satisfaction.
development, compensation, benefits, and
performance management.
HRM looks at the entire workforce. Personal management focuses on individual
employees

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

1. Individual Organisation
2. Professional Importance
3. Social Importance
4. National Importance

1. Individual Organisation

Human resource management can help an organisation to achieve to its objectives more efficiently
and effectively in the following ways.
1. Procurement of required talents through recruitment, selection, placement, Inducting, training,
compensation and promotion policies.

2. Secures co-operation of all employees in the organisation for achieving goals, through motivation,
participation, grievance handling, social security etc.

3. Proper utilization of human resources for the success of the enterprise.

4. Ensures a future team of efficient and competent workers required for the organisation.

2. Professional Importance

Professional competency among employees can be achieved through the following ways.
1. Human resource management provides maximum opportunities to employees for their personnel
development.

2. Providing healthy relationship among employees.

3. Proper allocation of work among employees.

4. Providing training facilities for the individual dHuman Resource Management...

3. Social Importance

1. Human resource management enhances the dignity of labour

2. Provides suitable job to suitable person and it will help to satisfy the psychological and social
satisfaction of employees.

3. Helps to provide reasonable compensation to workers, which leads them to have a good standard
of living
4.Helps to maintain a balance between jobs and job seekers in terms of numbers. qualification,
aptitudes, etc.

5. Takes health and safety measures, which ensures physical and mental health of the employees.

4. National Importance

Effective management of human resources will speed up the economic growth of a nation. This in
turn leads to better standard of living and more job opportunities. e.g. Japan.

AIMS AND OBJECTIVES OF PERSONNEL MANAGEMENT/ HUMAN RESOURCE MANAGEMENT

1. General objectives

2. Specific objectives

General objectives

1. Optimum Individual Development

The top-level management is required to create an atmosphere to help personnel for developing
their personality.
Each individual differs in nature, character and understanding. Proper recognition and importance
should be given to each individual.
The management should recognize the efficiency of each individual. His efficiency and ability must
be utilised effectively to achieve organisational goals.

2. Creation of Good Human Relationship

The main function of personnel management is to create and maintain a good relationship between
the management and workers.
In that case the workers may co-operate with the management to attain objectives of the
organization

3. Moulding of Human Resources to Achieve Maximum Production

Factor of production comprises factors like land, labour, capital and organisation. Here labour is one
of the important factors. It makes the other factors to work. So moulding of labour is essential to
utilise other factors of production effectively.

Specific Objectives

It refers to the various activities done by personnel department. It mainly includes the following.

1. Selection of right type of individual for the right job

2. There will be a need for co-operation from everyone in the organisation for achieving business
goals.

3. Provision for Training Facilities

4. Proper training should be given to employees to make them competent to handle new methods,
machineries etc. It will help him to put better performance.

5. Provision of Orientation to New Employees

6. New employees do not know the rules, procedures and regulations of the enterprise. He should
be giverr all these information. He is also to be introduced to his superior and his subordinates.

7. Provision of Better Working Conditions and Facilities

8. Working conditions will influence motivation and morale of employees. Facilitieslike recreation,
latrine, good atmosphere etc must be provided to them. The work place should be neat, clean and
properly ventilated.

9 . Provision for Fair Wages, Good Salary Administration, and Other Incentives

10.Fair wages help employees to lead a comfortable living. It will also motivate them to put better
performance. Consequently the over all productivity of the organisation increases.

11. Provision for Retirement Benefit

12. Employees are given proper compensation and other retirement benefits. It will certainly create
good impression about management among workers.

13. Maintain Good Relations with Trade Union

14. The trade union has an important role to play in the organisation to create good atmosphere. So
management should establish good relationship with labour unions.
15.Materials and Mental Satisfaction of Employees

16.This will be possible only if proper work environment and job satisfaction is provided to
employees. Good remuneration, job security, avenues for promotion, financial and other incentives
must be given to employees to get job satisfaction.

HUMAN RESOURCE MANAGER

A human resource manager is a professsional responsible for managing an organizations

workforce.Personnel manager is a staff officer in the organisation.

He gives advice to top-level management in relation with personnel policies and programmes. He
acts as a specialist and provides services to other departments also.

Status of Human Resource Manager

Board of Directors

Managing director

Sales manager Human resource Purchase Manager Accounts manager

manager

ROLE OF A HUMAN RESOURCE MANAGER

1. As a Specialist: HR manager is an expert in personnel matters. He advises and counsels

management with regard to personnel policies, principles and methods.

2. As an Information Source: Human resource manager possess knowledge about labour laws,
government policy on labour & economy, etc. He can provide this Information while preparing
personnel policies and procedures.

3. Human Resource Record Keeper: He maintains the personnel records of employees such as
bio-data, date of joining, date of increment, promotion, transfer etc.
4. Acts as an Innovator: He acts as an Innovator in relation with personnel matters.

5. As a Controller: He helps other departmental heads for effective implementation of Personnel

policies, procedures and practice.

6. As a Liaison Officer. He acts as a connection link between different departments.

7. As a Guardian: The Human resource manager looks after the safety, health, welfare. social
security etc. of employees.

8. As a Trouble-shooter: When there is conflict between management and labour union, he acts as
a shock absorber. He has the power to act as a mediator to settle deputes.

POWERS AND RESPONSIBILITIES OF A HUMAN RESOURCE MANAGER

1. Formulation and Development of Human Resource Policies

A human resource policy provides guidelines for a wide variety of Human resource function such as
recruitment, selection, training, compensation, promotion, trade union relation, and public relation.
A Human resource manager has the power and responsibility for the formulation and development
of suitable personnel policies

2. Employees Training and Development

The human resource manager has to design appropriate training programs for employees. The
training requirement of one department differs from another department. He makes arrangements
to impart training to employees belong to different departments.

3. Transfer, Promotion etc

As a responsible officer, he is required to give guidance and advise to top level management on
matters related to transfer, promotion, demotion, termination etc

4. Personnel Records

It is the responsibility of the Human resource manager to maintain personnel records of each
employee in the organisation.

5. Establishment of Good Relation with Employees

A Human resource manager is a connecting link between management and employees. He is

responsible to maintain good relation with employees.

6. Effective Communicator

It is the responsibility of the Human resource manager to communicate personnel policies and
programmes of the management to employees. At the same time, he is llable to communicate the
grievances of employees at higher levels.
7. Advisor to Line Manager

He is also responsible for advising line managers with regard to the matters relating to
administration of personnel policies, hiring, training, appraising, and firing employees at all levels.

8. Comply with Laws

He should ensure that the various labour laws are duly complied with.

9. Welfare Activities

The responsibility of introducing various welfare activities vests with the Human resource manager.
It mainly consists of arranging facilities and amenities required for employees to perform their
work in a healthy atmosphere.

10. Solving the Problem of Employees

A worker may face various problems connected with his work.It is the responsibility of Human
resource manager to find out the problem and hear the grievances of the employees.

LIMITATIONS OF HUMAN RESOURCE MANAGER

1. The function of Human resource manager is an advisory nature.

2. He is only a middleman between employer and employees. He has no power to offer

commitments on behalf of any party. He is only a communicator.

3. He is only required to motivate employees to attain the objectives of the organisation

4. His power is only limited to co-ordinate the activities of different department with regard to
human resources.

5. Human resource managers are appointed in big organisations. In small business organisation, the
management itself performs the functions of Human resource manager.

6. The line manager are not giving due consideration to their advice always.

QUALITIES OF A HUMAN RESOURCE MANAGER

1. Sense of Social Responsibilitys

Social responsibility means the obligation of a business firm to the society in which it Is working.
A Human resource manager should be conscious of this social responsibility.
the Human resource manager must always conscious to attain the co-operation of the employees to
meet the needs of the society.

2. Leadership and Organisational Skills

A human resource manager must be a good leader and organiser. He should be able to motivate
employees to attain organisational goals. He has to act in double role. Firstly, he has to advise the
line management regarding human behavioural problem while deciding policies related with
employees. He should have the capacity to face workers and management and to speak without fear

3. Ability to Deal with People

The most important quality of a human resource manager is his/her ability to deal successfully with
people who have likes and dislikes, whims and fancies. He should be able to understand them
properly.

4. Personnel Integrity

He should be a man of integrity. He can be trusted by all in the organisation. Everyone in the
organisation should be able to meet and put his or her grievances before him. In the same way, he
must be trusted by his subordinates and superiors.

5.Tact and Resourcefulness

He must be able to deal difficult situations tactfully. Tact is not cunning. He should consider and
stick on to lawful course of action to deal difficult situation like strike. He must be resourceful also.
He should have open mind, objectivity, and adjustability to tackle a difficult situation.

6. Inner Urge TOM.

The human resource managers' responsibility is heavy. It cannot be carried out without some sense
of inner urge. There is every possibility of disappointment and discouragement. To overcome this,
he must have faith in humanity and have a sense of Inner urge to solve the problems.

7. Free from Bias

He should be free from all sorts of bias. He should not act as a representative of either management
or employees, but try to be a professional man. He should be able to study the issues without bias
and advice without fear by considering purely the merits of the matter.

8. Sympathy and Consideration

He must be guided by sympathetic attitude towards employees demand. Even though several
demands are unreasonable, he should hear it patiently

9. Communication Skills

A human resource manager is required to communicate with many types of people in an

organisation. These different groups of people are different in culture, attitude, status, education
and knowledge.

10. Personality Traits

1. Fluency in speech: - He should have the ability to speak in accurate term; and to express his
viewpoint clearly and consciously. It will avoid misunderstanding.
2. Facial expression:- He should have a smiling face; it is very helpful to deal with others in difficult
situation.

3.Courtesy:- Actually human resource manager is a human relation manager. He is to deal with all
type of people like managers, union leaders, worker and members of board of Directors. So he
should possess a sense of courtesy.

4. Personnel dignity: He wants to deal with different types of people. So his job is a complicated
one. He should realize how heavy his burden is. This fact should be bear in mind while performing
all his responsibilities.

5. Foresightedness:- The human resource manager will be in a position to guess the pros and cons
of the decision taken by the management. He is also able to overcome the difficulties.

6. Professional knowledge: - Administrative and technical knowledge is a necessity. He should

also be familiar with behavioural research findings, developed abroad and in our country. He should
be trained in behavioural sciences.

7.Knowledge of labour and other terms: - He should have a thorough knowledge of labour laws
prevailing in the country. He must also aware of the government policy towards economy and
labour in particular.

8.Academic Qualifications: The National Institute of Personnel Management (NIPM)