HUMAN RESOURE MANAGEMENT

INTRODUCTION

Human Resource management is the most happening function as of now. This is so

because people offer competitive advantage to a firm and managing people is the domain
of HRM. An organization enjoys competitive advantage when it is the only one which can
offer a product at a price and at quality while its competitors cannot do so.
Fast changes are taking placein the business environment. An organization must have the
ability to absorb these changes at a fast rate than in the past, not simply to prove its
competency alone but to justify its existence in the dynamic business world as well. All
organizations, whether large or small must ensure themselves that they have the competent
people capable of accepting this challenge.
Human resource management is a relatively modern concept, which involves arrange of
ideas and practices in managing people. Human resource is the most valuable resource in
any organization because it can function only through people.
Human Resource Management has come to be recognized as an inherent part of
management, which is concerned with the human resources of an organization. Its
objective is the maintenance of better human relations in the organization by the
development, application and evaluation of policies, procedures and programs relating to
human resources to optimize their contribution towards the realization of organizational
objectives.

In other words, HRM is concerned with getting better results with the collaboration of
people. It is an integral but distinctive part of management, concerned with people at work
and their relationships within the enterprise. HRM helps in attaining maximum individual
development, desirable working relationship between employees and employers,
employees and employees, and effective modeling of human resources as contrasted with
physical resources. It is the recruitment, selection, development, utilization, compensation
and motivation of human resources by the organization.

CONCEPT OF HUMAN RESOURCE MANAGEMENT

What exactly is human resource management? Many people find HRM to be an unclear
and strange concept. ‘This is not simply because of having variety of meanings to this
term. This confusion is mainly due to the different interpretations found in articles and
books about human resource management.
HRM is the philosophy of people management based on the belief that human resources
are extremely important for sustained business success. An organization acquires
competitive advantage by using its people effectively and utilizing their expertise to meet
clearly defined objectives. HRM is aimed at recruiting capable, flexible and committed

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 people. Managing and rewarding their performance and developing key competencies.

Meaning and Definition

Human Resource Management is the process of recruitment, selection of employee,
providing proper orientation and induction, providing proper training and the developing
skills, assessment of employee (performance of appraisal), providing proper compensation
and benefits, motivating, maintaining proper relations with labor and with trade unions,
and maintaining employee’s safety, welfare and health by complying with labor laws of
concern state or country.
Many great scholars had defined human resource management in different ways and with
different words, but the core meaning of the human resource management deals with how
to manage people or employees in the organization.
Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of
procurement, development, compensation, integration, maintenance and separation of
human resources to the end that individual, organizational and social objectives are
achieved.”
The National Institute of Personal Management (NIPM) of India has defined human
resources – personal management as “that part of management which is concerned with
people at work and with their relationship within an enterprise. Its aim is to bring together
and develop into an effective organization of the men and women who make up enterprise
and having regard for the well – being of the individuals and of working groups, to enable
them to make their best contribution to its success”.

Importance of HRM is:

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 Human Resource Management Functions:
The major functions of human resource management are as follows:
1. Managerial Functions
2. Operative Functions
3. Advisory Functions.
Human Resource or Personnel Department is established in most of the organizations,
under the charge of an executive known as Human Resource/Personnel Manager. This
department plays an important role in the efficient management of human resources.
The personnel department gives assistance and provides service to all other departments on
personnel matters. Though personnel or human resource manager is a staff officer in
relation to other departments of the enterprise, he has a line authority to get orders
executed within his department.

1. Managerial Functions:
The Human Resource Manager is a part of the organisational management. So he must
perform the basic managerial functions of planning, organising, directing and controlling
in relation to his department.
There functions are briefly discussed below:

1. Planning:
To get things done through the subordinates, a manager must plan ahead. Planning is
necessary to determine the goals of the organisation and lay down policies and procedures
to reach the goals. For a human resource manager, planning means the determination of
personnel programs that will contribute to the goals of the enterprise, i.e., anticipating
vacancies, planning job requirements, job descriptions and determination of the sources of
recruitment.
The process of personnel planning involves three essential steps.
Firstly, a supply and demand forecast for each job category is made. This step requires
knowledge to both labour market conditions and the strategic posture and goals of the
organisation.
Secondly, net shortage and excess of personnel by job category are projected for a specific
time horizon.
Finally, plans are developed to eliminate the forecast shortages and excess of particular
categories of human resources.

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 2. Organizing:
Once the human resource manager has established objectives and developed plans and
programs to reach them, he must design and develop organisation structure to carry out the
various operations.
The organization structure basically includes the following:
(i) Grouping of personnel activity logically into functions or positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and responsibilities involved;
(iv) Co-ordination of activities of different individuals.

3. Directing:
The plans are to be pure into effect by people. But how smoothly the plans are
implemented depends on the motivation of people. The direction function of the personnel
manager involves encouraging people to work willingly and effectively for the goals of the
enterprise.
In other words, the direction function is meant to guide and motivate the people to
accomplish the personnel programs. The personnel manager can motivate the employees in
an organisation through career planning, salary administration, ensuring employee morale,
developing cordial relationships and provision of safety requirements and welfare of
employees.
The motivational function poses a great challenge for any manager. The personnel
manager must have the ability to identify the needs of employees and the means and
methods of satisfy those needs. Motivation is a continuous process as new needs and
expectations emerge among employees when old ones are satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities in accordance with the plans,
which in turn have been formulated on the basis of the objectives of the organisation.
Thus, controlling completes the cycle and leads back to planning. It involves the
observation and comparison of results with the standards and correction of deviations that
may occur.
Controlling helps the personnel manager to evaluate the control the performance of the
personnel department in terms of various operative functions. It involves performance
appraisal, critical examination of personnel records and statistics and personnel audit.

2. Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the
human resource or personnel department. These are concerned with employment,
development, compensation, integration and maintenance of personnel of the organisation.

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 The operative functions of human resource or personnel department are discussed
below:
1. Employment:
The first operative function of the human resource of personnel department is the
employment of proper kind and number of persons necessary to achieve the objectives of
the organisation. This involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower requirements
both in terms of number and quality of the personnel. Recruitment and selection cover the
sources of supply of labour and the devices designed to select the right type of people for
various jobs. Induction and placement of personnel for their better performance also come
under the employment or procurement function.
2. Development:
Training and development of personnel is a follow up of the employment function. It is a
duty of management to train each employee property to develop technical skills for the job
for which he has been employed and also to develop him for the higher jobs in the
organisation. Proper development of personnel is necessary to increase their skills in doing
their jobs and in satisfying their growth need.

For this purpose, the personnel departments will device appropriate training programs.
There are several on- the-job and off-the-job methods available for training purposes. A
good training program should include a mixture of both types of methods. It is important to
point out that personnel department arranges for training not only of new employees but
also of old employees to update their knowledge in the use of latest techniques.

3. Compensation:
This function is concerned with the determination of adequate and equitable remuneration
of the employees in the organisation of their contribution to the organisational goals. The
personnel can be compensated both in terms of monetary as well as non-monetary rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are their
basic needs, requirements of jobs, legal provisions regarding minimum wages, capacity of
the organisation to pay, wage level afforded by competitors etc. For fixing the wage levels,
the personnel department can make use of certain techniques like job evaluation and
performance appraisal.

4. Maintenance (Working Conditions and Welfare):

Merely appointment and training of people is not sufficient; they must be provided with
good working, conditions so that they may like their work and workplace and maintain
their efficiency. Working conditions certainly influence the motivation and morale of the

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 employees.
These include measures taken for health, safety, and comfort of the workforce. The
personnel department also provides for various welfare services which relate to the
physical and social well- being of the employees. These may include provision of
cafeteria, rest rooms, counseling, group insurance, education for children of employees,
recreational facilities, etc.

5. Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the
cases, it is found that they do not contribute towards the organisational goals as much as
they can. This happens because employees are not adequately motivated. The human
resource manager helps the various departmental managers to design a system of financial
and non-financial rewards to motivate the employees.

6. Personnel Records:
The human resource or personnel department maintains the records of the employees
working in the enterprise. It keeps full records of their training, achievements, transfer,
promotion, etc. It also preserves many other records relating to the behaviour of personnel
like absenteeism and labour turnover and the personnel programs and policies of the
organisation.

7. Industrial Relations:
These days, the responsibility of maintaining good industrial relations is mainly discharged
by the human resource manager. The human resource manager can help in collective
bargaining, joint consultation and settlement of disputes, if the need arises. This is because
of the fact that he is in possession of full information relating to personnel and has the
working knowledge of various labour enactments.
The human resource manager can do a great deal in maintaining industrial peace in the
organisation as he is deeply associated with various committees on discipline, labour
welfare, safety, grievance, etc. He helps in laying down the grievance procedure to redress
the grievances of the employees. He also gives authentic information to the trade union
leaders and conveys their views on various labour problems to the top management.

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 8. Separation:
Since the first function of human resource management is to procure the employees, it is
logical that the last should be the separation and return of that person to society. Most
people do not die on the job. The organisation is responsible for meeting certain
requirements of due process in separation, as well as assuring that the returned person is in
as good shape as possible. The personnel manager has to ensure the release of retirement
benefits to the retiring personnel in time.

3. Advisory Functions:
Human resource manager has specialized education and training in managing human
resources. He is an expert in his area and so can give advice on matters relating to human
resources of the organization.
He offers his advice to:
1. Advised to Top Management:
Personnel manager advises the top management in formulation and evaluation of personnel
programs, policies and procedures. He also gives advice for achieving and maintaining
good human relations and high employee morale.
2. Advised to Departmental Heads:
Personnel manager offers advice to the heads of various departments on matters such as
manpower planning, job analysis and design, recruitment and selection, placement,
training, performance appraisal, etc.

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 PROCESS OF HRM

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SYSTEMS AND TECHNIQUES OF HRM

SYSTEMS OF HRM

Some of the main sub- systems of HRM are as follows;

Human Resource Planning: The basic of any organization and business house is Human
Resource planning. The HR Planning comprises of detailed course of action to establish the
requirements of HR department in the near future. With the basic object of creating a talent pool
of eligible candidates with ample qualifications and skills required by an organization. The idea
is to bridge and match the demand-supply gap between the ideal candidate and prospective hire.

Career Planning: An employee’s growth in an organization would be of prime importance to an

employee as well as an organization. As that’s what helps in talent retention on a major scale.
When an employee knows that there are options of growth and learning through constant training
and other learning development, he or she would be fully dedicated to the organization and
would plan the career in a way that would help both himself and the company he is working for.

Role Analysis: Assigning roles as per the employees’ capabilities and abilities also form the
major subsystem of HRM. While an employee could play multiple roles, it becomes quite
important for the Human Resource or Talent Management to know whether the person would
be able to do justice to the role or not. Assessing the behavior and attitude of an employee also
comes under role analysis. Having set KRAs would help in avoiding role conflicts in employees.

Procurement and Placement: One of the important of subsystems of HRM, procurement

includes screening, shortlisting, and recruiting a candidate. The basic process through which
vacancies are filled in an organization. Placement is a process of assigning suitable jobs as per
their caliber to the procured candidates. Placement also involves hiring the right person for a job
and avoiding the cost of wrong hire.

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Counselling: HR and counselling go a long back in time. Counselling is where while employees
share their grievances both personal and professional with the HR Management. The open
communication channels between employee and HR managers helps in reducing employee
turnover, absenteeism, tardiness. And helps in strengthening employee and employer
relationship, understanding the problems of juniors and seniors thereby facilitating better
communication and effective decision making. Counselling helps employees understand the
strengths and weaknesses and help them overcome the problems arising out of their ignorance.

Training: Training helps in an employee’s growth, as it ensures that an organization is invested

in an employee. Training helps employees to stay abreast with all the latest tools, practices and
technology relevant to his field. While the current scenario for training employees is derived
from the dropping performances of employees, it is advisable not to wait that long for initiating
training. Training should not be seen as a cost incurred but rather an investment and should
include – increasing skills, concepts, attitudes for increasing effectiveness in doing a specific job
or jobs.

Rewards: Rewarding employees for their excellent professional performance over and above
their usual wages and salaries boost up their morale and encourage others as well to work hard.
Reward systems are another subsystem of HRM, which helps in encouraging employees to seek
self-development. Considered as one of the quickest way to increase productivity, reward system
acts as a motivational factor to perform above their par.

Potential Appraisal: The object of potential appraisal is to develop latent abilities of

individuals. Potential appraisal provides vital information about individuals to prepare career
plans for them. Potential appraisal evaluates the leadership abilities and potentials of the
individuals. It ensures a good match between employee’s potentials and the job.

Organizational Development: Organizational Development talks about changing beliefs,

attitudes, values and structure of organizations, so that they are better equipped to adapt new
technologies, markets and challenges. Organization is an open system and therefore must
develop itself by adopting various changes to meet the challenges thrown out by the constantly
changing environment.

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TECHNIQUES OF HRM

Today, it is assumed that the main asset of any organization lies in people.

Quality, productivity, profitability, customer satisfaction and the image of a company depends
largely on training, coordination and motivation of its staff. For a company to function properly
it requires that the persons composing know, willing and able to work properly.

Inadequate people management can lead to myriad problems that hinder the performance of an
organization: Lack of motivation, undefined responsibilities, lack of training / information, Lack
of internal communication, Non-cooperation, Lack of coordination and Conflicts of interest.

Techniques for Improving Human Resource Management in the Enterprise

1. Leadership

Leadership can be defined as the ability of an individual to develop the potential of a team in
pursuit of a common interest.

There are different leadership styles (authoritarian, participatory, consultative, ...). Each style
may be appropriate to the context and characteristics of employees. The source of leadership
may be the charisma, the hierarchical power, the power of knowledge or behavior.

Through education and training, people who have responsibility for others can develop optimal
leadership style. A leader does not command it runs, does not impose, but seeks consensus, not
divide but unites.

2. Mentoring

The mentoring (mentoring) is a process by which a person (mentor) teaches, advises, and guides
to another (the mentee) in their personal and professional development. It is the traditional
"sponsorship" that currently is used primarily in high positions in organizations.

Mentoring should not be improvised requires setting goals, planning and monitoring of results.

Although there are similarities, mentoring differs from coaching in the mentor must have
expertise in the field in which you want to start the mentee, while the coach does not have to
have an experience in this field.

Some advantages of mentoring:

 Mentoring is a powerful tool that facilitates the retention and transmission of knowledge
in the enterprise

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  Increase satisfaction guardian and the ward

 Increase staff retention and commitment of these with the company.

3. Education Climate Assessment

This diagnostic technique allows for an objective assessment of the degree of satisfaction of
people in an organization; understand their needs and expectations at work and their perception
of existing problems.

The evaluation should be completely anonymous and the results published at all levels. The
assessment should be followed by an improvement plan aimed at resolving conflicts and
problems have been detected.

Assessment should be repeated once the improvements made in order to verify their
effectiveness and strengthen the process of continuous improvement.

4. Competence Management / Knowledge Management and Performance Evaluation

This methodology allows to reconcile the interests of the company with the interests of each
individual. While comparing the knowledge and skills required by the organization to those who
reside in people.

we define competence as the ability or quality which makes a person is able to play a role.

management skills, involves identifying all you need for people to know, willing and able to
provide full value for the benefit of the organization.

skills management, requires:

 An identification of the skills necessary for achieving the objectives of the organization
(strategic, tactical and operational)

 skills assessment in the Members of the organization

 A plan to bring existing powers with the necessary

 setting and monitoring targets both individual and collective performance. These goals
should be possible to verify the use of these skills

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5. Incentive Systems

An incentive system is to facilitate the reconciliation of the interests of each person with the
interests of the company.

Incentives should be established objectively, based on agreed targets and indicators. The
incentive system should be transparent, clear and concise.

Incentives must be aligned with individual goals, but also with collective goals, so as to
encourage teamwork versus individualistic attitudes.

One of the basic requirements for the proper functioning of the incentive system is internal
communication:

 On the objectives of the company

 on individual goals
 The degree of fulfillment of the objectives on time, so that deviations can be corrected

6. Analytical and Problem Solving and Teamwork

The competitiveness of an organization depends largely on his ability to turn problems into
opportunities.

To deploy this policy, we must educate the staff, encourage, lead it, promote internal
communication ... but also implement techniques for analyzing problems, identifying causes,
possible solutions and implementing them in the most efficient.

These techniques are based on data analysis and teamwork. Among other noteworthy:
 Herringbone (Ishikawa diagram)
 Pareto Chart
 Histograms
 Data Collection Sheet
 Modal Analysis Failure Mode and Effects (FMEA)
 Affinity Diagram
 Relationship Map
 Force Field Analysis
 Brainstorming (brainstorming)
 Stratification data
 Correlation chart
 Statistical Process Control

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7. Meetings Management

At the end of many meetings, participants have the feeling of having wasted time and no
concrete objectives or actions without analyzing deeply enough problems without creating the
required commitment to address changes.

The efficient management of meetings require a protocol establishing practical rules of conduct
in all three phases of the meeting:

 Preparation (collection of information, convening the meeting, ...)

 Implementation Meeting (time management, agenda management, formalization of the
record ...)
 Monitoring (monitoring of the agreements of the meeting)
At any meeting is crucial the role of moderator. Among other functions, the moderator must:
 ensure continued item
 Ensure that each case is treated with depth and rigor
 Ensure that all involved have had the opportunity to participate
 Detect and resolve any conflict of interest
 ensure that decisions are made by the mechanism previously agreed (preferably by
consensus)
 Detect and avoid bias in the analysis and decisions

8. Internal Communication

Internal communication (horizontal and vertical upward and downward) is a prerequisite for
improving the work environment, encourage engagement, providing leadership and coordination
of all people in an organization.

Internal communication should not be left "random", but must be planned, implemented and
verified in a manner that ensures that for, Who, When and How to contact.

Avoid common errors such as:

consider the communication is a one-way and down (as it must be bidirectional and both
ascending and descending)

 Allow communication free will (since in these cases, communication is distorted and fails
to ensure that information reaches to whom, when and how to get there). This is a
breeding ground for rumors.
 Lack of consistency or alignment between what is communicated and business objectives
 Communication at the wrong is not right that the channels of communication "informal"
anticipate and meet communication channels "formal"
 Communication exception: it is not appropriate reporting only bad news, it must also
provide positive feedback.

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HR Manager
It is the role & responsibility of the HR manager that all the human resource management
functions of the company should be managed smoothly. The HR manager of the company is the
sole face of the human resource department.

A human resource manager has two basic functions: overseeing department functions and
managing employees. That's why human resources managers must be well-versed in each of the
human resources disciplines – compensation and benefits, training and development, employee
relations, and recruitment and selection.

Core competencies for HR manager include solid communication skills, and decision-making
capabilities based on analytical skills and critical thought processes.

Duties and Responsibly- HR Manager

 Ensuring that the business is legally compliant in all its employment activities.
 Giving new starters a really positive and professional perception of the company.
 Operationalizing, integrating and delivering HR processes, projects and change.
 Driving excellence and best practice at every opportunity.
 In charge of all recruitment, selection and induction activity for both permanent and temporary
staff.
 Developing and overseeing all employee reward and recognition schemes.
 Managing an effective employee performance review system.
 Executing company-wide HR initiatives.
 Implementing talent acquisition strategies.
 Managing a team of HR staff.
 Building relationships with third party recruitment agencies.

KEY SKILLS AND COMPETENCIES - HR Manager

 Able to influence, facilitate and implement HR change.

 Have the confidence and assurance needed to be an effective negotiator.
 Can influence across a range of stakeholders.
 Not afraid to take on difficult tasks.
 Positive, confident and friendly demeanor with high level of integrity.
 Can operate at a fast pace and senior level.

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STRUCTURE OF HR DEPARTMENT

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