1 Intro
1 Intro
Introduction
Human Resource Management brings individuals and organizations together to meet mutual
goals. It involves optimizing human resources effectively to maximize productivity and
cooperation. HRM aims to procure, develop, and retain a competent workforce that supports
organizational success.
Ivancevich and Glueck define HRM as “the most effective use of people to achieve
organizational and individual goals.”
Byars and Rue describe HRM as “encompassing activities designed to provide for
and coordinate the human resources of an organization.”
Milkovich and Boudreau explain HRM as “a series of integrated decisions that
form the employment relationship: their quality contributes to the ability of
organizations and employees to achieve their objectives.”
Flippo defines HRM as “the planning, organizing, directing, and controlling of the
procurement, development, compensation, integration, maintenance, and separation of
human resources to accomplish individual, organizational, and social objectives.”
According to Leon C. Megginson, “The term human resources can be defined
as the process of total knowledge, skills, creative abilities, talents and aptitudes
of an organization’s workforce, as well as the value, attitudes and beliefs of the
individuals involved”.
2) Action-Oriented: HRM focuses on solving employee issues rather than just handling
paperwork. It uses practical policies to address workplace challenges.
4) People-Focused: HRM manages individuals and teams by assigning them suitable roles to
improve productivity. It uses performance-based rewards to encourage continuous
improvement.
6) Integrative Role: HRM fosters strong relationships among employees at different levels.
It ensures effective collaboration to align human resources with organizational needs.
8) Supportive Function: The HR department helps line managers handle personnel tasks
efficiently. HR serves as a specialist advisor in a supporting role.
9) Multidisciplinary Approach: HRM uses ideas from psychology, sociology, anthropology,
and economics to understand and manage human behavior effectively.
10) Ongoing Process: HRM is a continuous function that requires constant attention.
Managing human relationships is an everyday responsibility, not an occasional task.
HRM covers all aspects of an employee’s professional journey, from hiring to retirement. It
includes essential functions such as workforce planning, recruitment, training, compensation,
employee well-being, and workplace relations. The key areas of HRM are:
1) Procurement of Employees: HRM selects the right people for various positions in the
organization. It includes:
2) Training and Development: Employees need continuous learning to improve their skills.
HRM provides training, practical experience, and opportunities to participate in decision-
making.
3) Job Analysis and Description: HRM defines job roles and responsibilities to match the
right talent with the right job. It also helps determine fair wages.
4) Remuneration: HRM ensures fair remuneration based on job analysis and performance
evaluation. This includes:
4) Focus on People: HRM deals with current and future employees, ensuring the right talent
is brought into the organization. It applies to all levels of management, from top executives to
operational staff.
6) Universal Relevance: HRM is important for all organizations, not just businesses. It
applies to areas like production, marketing, finance, and research.
HRM plays a crucial role in helping the organization meet its objectives. If it fails to
contribute effectively, it becomes irrelevant.
HRM provides employees with training, motivation, and fair compensation based on
performance and contributions.
A supportive and engaging workplace fosters job satisfaction and improves overall
organizational performance.
HRM ensures that the company follows ethical practices, complies with laws, and
fulfills its social responsibilities.
Human Resource Management (HRM) has developed due to various historical and modern
influences.
1. The Industrial Revolution: During this period, machines replaced manual labour,
and technology advanced rapidly. Jobs became highly specialized, with workers
performing only small tasks. Although it increased efficiency, it also made jobs dull
and repetitive. Employers focused on production targets rather than employee well-
being, and the government provided little protection for workers.
2. Scientific Management: F.W. Taylor introduced scientific management to improve
efficiency. He broke tasks into small, precise steps and selected workers who best fit
the job. Overqualified individuals were excluded, and employees received specialized
training. Taylor also introduced a differential piece rate system to reward workers for
following standardized procedures.
3. Trade Unionism: Workers formed unions to protect themselves from unfair labour
practices and employer exploitation. Through collective bargaining, unions negotiated
better wages, improved working conditions, and resolved workplace disputes.
4. Human Relations Movement: Elton Mayo’s Hawthorne experiments in the 1930s
and 1940s showed that employee productivity depends not only on job design and
financial incentives but also on social and psychological factors. This led to
workplace changes, such as leadership training, stronger labour-management
relations, and employee counselling programs. The rise of unions in the late 1930s,
influenced by the Wagner Act, further strengthened workers' rights to fair wages, job
security, and benefits.
5. Human Resource Approach: By the early 1960s, the idea that happy employees are
always productive was largely rejected. Instead, HRM recognizes that each employee
is unique and has different needs and motivations. What motivates one employee may
not work for another, and job satisfaction does not always lead to higher productivity.
Over time, employees began to be seen as valuable resources or assets to the
organization.
Employees are more motivated to work when they participate in setting their goals.
Employees have the potential for more self-direction, control, and creativity than their
jobs currently require (Theory Y).
Managers should utilize employees' latent talent to benefit the organization.
Managers should create a comfortable and supportive workplace where employees
can perform their best.
Encourage employees to take initiative and participate in important decisions.
Giving employees more responsibility and control improves efficiency.
Job satisfaction increases when employees fully utilize their potential.
The Behavioral Science Approach in HRM helps understand management, employee
behavior, and workplace organization. Instead of just techniques, it focuses on how managers
and employees interact.
Organizations typically have four main functional areas: marketing, human resources,
operations, and finance. These areas are interconnected and work together. Human Resource
Management (HRM) interacts with each of these areas in the following ways:
HRM ensures the organization has employees with the right skills and expertise. When a
company introduces a new product or service, the marketing department must inform HRM
quickly. This allows HRM to plan recruitment, training, and staff selection to meet changing
business needs.
4) HRM and IT
HRM uses IT to manage employee data and improve communication. Key responsibilities
include:
HR managers collaborate with IT teams to educate employees on best practices for managing
and utilizing information. They also work on building a workplace culture that supports these
values. This interconnected approach helps organizations function smoothly and achieve
their goals efficiently.
HRM improves employees' dignity and fulfills their social and psychological needs. It is done
by:
Maintaining a balance between available jobs and job seekers, matching roles to their
skills and needs.
Providing meaningful employment that offers psychological satisfaction.
Ensuring optimal use of human resources while offering fair compensation based on
contributions.
Preventing the misuse of human potential and promoting employee well-being.
Empowering employees to make informed career decisions.
2. Professional Significance
1) Managerial Functions
2) Operative Functions
Managerial Functions
1) Planning
Planning involves deciding in advance what needs to be done. It is a thinking process before
acting and setting a course of action. HR planning includes human resources, recruitment,
selection, and training. It also considers changes in employee attitudes and behaviors and
their impact on the organization.
2) Organizing
Organizing is arranging people and resources to work together efficiently to achieve company
goals. It establishes relationships among employees so that teamwork contributes to
organizational success.
3) Directing
Once planning and organizing are complete, the next step is execution. This includes
motivating, leading, and guiding employees towards common objectives. Effective direction
strengthens industrial and human relations while securing employee commitment.
4) Coordinating
5) Controlling
HR must monitor and evaluate activities to verify they match with company's objectives.
Controlling involves checking progress, identifying deviations, and making necessary
corrections to follow planned goals.
Operative Functions
1) Employment
Employment confirms that an organization hires people with the necessary skills to meet its
goals. This includes job analysis, workforce planning, recruitment, selection, placement,
induction, and internal mobility.
i) Job Analysis
Job analysis involves collecting and studying information about specific job roles. It includes:
Gathering details about job responsibilities, required skills, and working conditions.
Prepare job descriptions and requirements to determine workforce needs.
Establishing guidelines for job design and HR activities.
Human Resource Planning verifies that the right number of qualified employees are available
for the right jobs at the right time. It coordinates human resources (current and new hires)
with organizational needs over a specific period. This process includes:
iii) Recruitment
Recruitment is the process of attracting and identifying potential candidates for job vacancies.
It includes:
iv) Selection
v) Placement
Placement assigns new employees to roles that match their skills. It includes:
i) Performance Appraisal
Performance appraisal systematically assesses employees based on their job performance and
growth potential. It includes:
ii) Training
Training upgrades employees' technical and operational skills to improve job performance. It
includes:
Career planning and development involves guiding employees' professional growth through
education, training, job search, and work experience. It includes internal and external
mobility to ensure career progression and workforce stability.
a) Internal Mobility
Internal mobility refers to employees’ movement within the organization, including transfers,
promotions, and demotions.
Transfer: Employees are reassigned to similar-level jobs where their skills can be
better utilized. This involves:
b) External Mobility
Accessions: New employees join the organization through hiring, rehiring of former
employees, or recalling dismissed staff.
Separations: Employees leave due to various reasons, such as:
3) Compensation
i) Job Evaluation:
This involves creating and managing fair wage and salary programs. It includes:
iii) Incentives:
Incentives refer to additional financial rewards given to employees besides their regular pay.
This process includes:
Bonuses include payments according to the Payment of Bonus Act, 1965, and its latest
amendments.
v) Fringe Benefits:
Fringe benefits are extra benefits for employees to improve their well-being and motivation.
These include:
Disability benefits.
Housing assistance.
Educational support for employees and their children.
Canteen and recreational facilities.
Transportation services.
Legal assistance.
Medical, maternity, and welfare support.
Access to company stores.
Social security measures provide additional support to employees beyond fringe benefits.
These include:
4. Human relations
Role Of HR Manager
3) As a Change Agent: The human resource manager can serve as an internal change
agent to initiate and spearhead necessary improvements in human resource practices.
As a consultant, he can provide necessary infrastructure and support for
organizational development. He helps in introducing and implementing major
institutional changes in the organization. He is an innovator in human resource
matters. To be an effective consultant, the human resource manager should be
familiar with the needs and changing environment of the organization.
4) Ana Controller: The human resource manager assists line managers in effective
implementation of human resource policies and programs. His advice and service is
essential for monitoring and controlling the progress. As an arm of the top
management, the human resource manager ensures that the human resource policies
and procedures approved and adopted by the management are being consistently
carried-out in all the departments.
5) As a Liaison Man: Very often the human resource manager is asked to act as a
linking pin between different departments/divisions of an organization.
6) As a Housekeeper: The human resource manager looks after the safety, health,
welfare, etc., of employees.
Thus, the human resource manager plays a variety of roles depending on the needs of
the particular organization.
1. Developing and implementing HR policies and procedures that align with the
organization's goals and objectives
2. Managing the talent management process, including recruitment, selection, onboarding,
and determining hiring processes for new hires
3. Designing interview questions, conducting interviews, and creating employment offers
and packages for successful candidates
4. Monitoring training needs and developing and managing employee training programs
5. Ensuring compliance with labor laws and regulations, including health and safety rules
6. Managing employee compensation and benefits programs, including salary reviews and
bonuses
7. Managing employee relations and conducting conflict management and resolution
8. Enforcing company policies and leading disciplinary procedures
9. Developing and managing performance management systems to track employee
performance and conduct performance evaluations
10. Developing and implementing employee retention and employee engagement programs to
increase employee retention
11. Conducting employee surveys and analyzing the results to identify opportunities for
improvement
12. Engaging in project management to devise new HR strategies
13. Managing employee records and maintaining accurate and up-to-date HR databases
14. Developing and managing employee engagement initiatives to foster a positive work
environment
15. Staying up-to-date with changes in labor laws and regulations and updating HR policies
and procedures
16. Managing HR budgets and providing reporting HR activities to the HR director and other
senior managers
17. Providing guidance and support to managers and employees on HR-related issues.