HRM definition and concept , scope, functions, objectives, imp of HRM to all

managers

HRM Definition
HRM is a process of making the efficient and effective use of human resources so
that the set goals are achieved. Let us also consider some important definitions of
HRM.

Human resource management is the planning, organizing, directing and controlling

of the procurement development compensation integration, and separation of
human resources to the end that individual, organizational and social objectives are
accomplished”.

Concept:

HRM is a strategic approach to the acquisition, motivation, development and

management of the organization’s human resources. It is a specialized field that
attempts to developing an appropriate corporate culture, and introducing
programs which reflect and support the core values of the enterprise and ensure
its success. HRM is proactive rather than reactive, i.e., always looking forward to
what needs to be done and then doing it, rather than waiting to be told what to do
about recruiting, paying or training people, or dealing with employee relations
problems as they arise. The techniques for the application of HRM will include many
familiar functions of personnel managers, such as manpower planning, selection,
performance appraisal, salary administration, training and management
development.

HRM is a strategic approach to the acquisition, motivation, development and

management of the organization’s human resources. It is a specialized field that
attempts to developing an appropriate corporate culture, and introducing
programs which reflect and support the core values of the enterprise and ensure
its success.
The persons working in an organization are regarded as a valuable source, implying
that there is a need to invest time and effort in their development. Secondly, they
are human resources which means that they have their own special characteristics
and, therefore, cannot be treated like material resources. The approach focuses on
the need to humanize organizational life and introduce human values in the
organisation. And thirdly, human resources do not merely focus on employees as
individuals, but also on other social realities, units and processes in the
organisation. These include the role or the job a person has in the organisation, the
unit, (consisting of the person and his superior), the various teams in which people
work, inter-team processes, and the entity of the total organisation.
HR has evolved with time

pre-1900s Human Resources Management: Tough Work, Tougher Conditions- The

idea of a connection between worker wellbeing and their productivity emerged
between 1890 and 1920

1920s–1950s Human Resources Management -Lucky for us human beings, the

workplace began to change with the realization that workers were not puppets on
a string, but people with emotional and psychological needs

1960s–1980s Human Resources Management- In the early '60's, the US legislature

began passing fairer employment practices such as the Equal Pay Act and Civil
Rights Act

1990s–2020s Human Resources Management - The role of HR is more complex

than ever. New and emerging technology has shifted the focus of the HR
management

➢ The Future for HR Leaders -"Tomorrow's HR leaders will need to be bigger,

broader thinkers, and they'll have to be tech-savvy and nimble enough to
deal with an increasingly agile and restless workforce.
The scope of HRM is, indeed, very vast and wide. It includes all activities starting
from manpower planning till employee leaves the organisation. Accordingly, the
scope of HRM consists of acquisition, development, maintenance/retention, and
control of human resources in the organisation. The same forms the subject matter
of HRM.

Scope of HRM as follows:

1. The Labor or Personnel Aspect:
This is concerned with manpower planning, recruitment, selection, placement,
transfer, promotion, training and development, lay-off and retrenchment,
remuneration, incentives, productivity, etc.

2. Welfare Aspect:
It deals with working conditions, and amenities such as canteen, creches, rest and
lunch rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.

3. Industrial Relations Aspects:

This covers union-management relations, joint consultation, collective bargaining,
grievance and disciplinary actions, settlement of disputes, etc.

Functions of HRM

Functions:
The definition of HRM is based on what managers do. The functions performed by
managers are common to all organizations. For the convenience of study, the
function performed by the resource management can broadly be classified into two
categories, viz.

(1) Managerial functions, and

(2) Operative functions

These are discussed in turn.

(1) Managerial Functions:

Planning:
Planning is a predetermined course of actions. It is a process of determining the
organisational goals and formulation of policies and programmes for achieving
them. Thus planning is future oriented concerned with clearly charting out the
desired direction of business activities in future. Forecasting is one of the important
elements in the planning process. Other functions of managers depend on planning
function.

Organising:
Organising is a process by which the structure and allocation of jobs are
determined. Thus organising involves giving each subordinate a specific task
establishing departments, delegating authority to subordinates, establishing
channels of authority and communication, coordinating the work of subordinates,
and so on.

Staffing:
It is a process by which managers select, train, promote and retire their
subordinates This involves deciding what type of people should be hired, recruiting
prospective employees, selecting employees, setting performance standard,
compensating employees, evaluating performance, counseling employees, training
and developing employees.

Directing/Leading:
Directing is the process of activating group efforts to achieve the desired goals. It
includes activities like getting subordinates to get the job done, maintaining morale
motivating subordinates etc. for achieving the goals of the organisation.

Controlling:
It is the process of setting standards for performance, checking to see how actual
performance compares with these set standards, and taking corrective actions as
needed.
(2) Operative Functions:
The operative, also called, service functions are those which are relevant to specific
department. These functions vary from department to department depending on
the nature of the department Viewed from this standpoint, the operative functions
of HRM relate to ensuring right people for right jobs at right times. These functions
include procurement, development, compensation, and maintenance functions of
HRM.
Objectives of HRM

The primary objective of HRM is to ensure the availability of right people for right
jobs so as the organizational goals are achieved effectively.

1. To help the organisation to attain its goals effectively and efficiently by

providing competent and motivated employees.
2. To utilize the available human resources effectively.
3. To increase to the fullest the employee’s job satisfaction and self-actualization.
4. To develop and maintain the quality of work life (QWL) which makes
employment in the organisation a desirable personal and social situation.
5. To help maintain ethical policies and behavior inside and outside the
organisation.
6. To establish and maintain cordial relations between employees and
management.
7. To reconcile individual/group goals with organizational goals.
HRM Objectives Important to All Managers

1. Hire the right person for the job.

2. Reduce high turnover
3. Ensure employees are productive and doing their best
4. Ensure employees do not Waste time
5. Avoid org taken to court because of discriminatory actions
6. Employees must receive their salaries are fair and equitable relative to
others
7. Proper training to ensure effectiveness
8. Not to Commit any unfair labor practices
Human Resource Planning - Definition, Need and Objectives
Human Resource Planning (HRP) is the process of systematically reviewing HR
requirements to ensure that the required number of employees with the required
skills is available when they are needed. Getting the right number of qualified
people into the right job

Human resource planning (HRP) is the first step in the HRM process. HRP is the
process by which an organization ensures that it has the right number and kind of
people, at the right place, at the right time, capable of effectively and efficiently
completing those tasks that will help the organization achieve its overall objectives.
HRP translates the organization’s objectives and plans into the number of workers
needed to meet those objectives. The actual HRM process starts with the
estimation of the number and kind of people required by the organization for the
coming period.

Human resource planning is “an integrated approach to performing the planning

aspects of the personnel function in order to have a sufficient supply of adequately
developed and motivated people to perform the duties and tasks required to meet
organisational objectives and satisfy the individual needs and goals of
organisational members.

Need for HRP

1. Assessing Future Personnel Needs:

Whether it is surplus labour or labour shortage, it gives a picture of defective
planning or absence of planning in an organization. A number of organizations,
especially public sector units (PSUs) in India are facing the problem of unbalanced
labour.
It is the result of unbalanced lab our that the companies later on offer schemes like
Voluntary Retirement Scheme (VRS) to eliminate surplus staff. Thus, it is better to
plan well about employees in advance. Through HRP, one can ensure the
employment of proper number and type of personnel.
2. Foundation for Other HRM Functions:
HRP is the first step in all HRM functions. So, HRP provides the essential information
needed for the other HRM functions like recruitment, selection, training and
development, promotion, etc.
3. Coping with Change:
Changes in the business environment like competition, technology, government
guidelines, global market, etc. bring changes in the nature of the job. This means
changes in the demand of personnel, content of job, qualification and experience
needed. HRP helps the organization in adjusting to new changes.
4. Investment Perspective:
As a result of change in the mindset of management, investment in human
resources is viewed as a better concept in the long run success of the enterprise.
Human assets can increase in value as opposed to physical assets. Thus, HRP is
considered important for the proper planning of future employees.
5. Expansion and Diversification Plans:
During the expansion and diversification drives, more employees at various levels
are needed. Through proper HRP, an organization comes to know about the exact
requirement of personnel in future plans.
6. Employee Turnover:
Every organization suffers from the small turnover of labour, sometime or the
other. This is high among young graduates in the private sector. This necessitates
again doing manpower planning for further recruiting and hiring.
7. Conformity with Government Guidelines:
In order to protect the weaker sections of the society, the Indian Government has
prescribed some norms for organizations to follow. While planning for candidates,
HR manager takes into consideration all the Government guidelines.
8. International Expansion Strategies:
International expansion strategies of an organization depend upon HRP. Under
International Human Resource Management (IHRM), HRP becomes more
challenging. An organization may want to fill the foreign subsidiary’s key positions
from its home country employees or from host-country or from a third country. All
this demands very effective HRP.
9. Having Highly Talented Manpower Inventory:
Due to changing business environment, jobs have become more challenging and
there is an increasing need for dynamic and ambitious employees to fill the
positions. Efficient HRP is needed for attracting and retaining well qualified, highly
skilled and talented employees.
Objectives of Human Resource Planning:
The following are the important objectives of human resource planning
1. Making assessment of requirements for future and making plans for recruitment
and selection.
2. Assessing skill needs in future.
3. Determining training and development needs of the enterprise.
4. To assess the surplus or shortage of human resources and avoiding unnecessary
dismissals.
5. To minimize imbalances caused due to non-availability of human resources of
right kind, right number in right time and at the right place.
6. Ensuring optimum use of existing human resources in the enterprise.
7. Keeping the enterprise ready to meet with the technological development and
modernization.
8. Controlling wage and salary costs.
9. Ensuring higher labour productivity.
10. Ensuring career planning of every employee of the enterprise and making
succession programs.

RECRUITMENT AND SELECTION PROCESS

Definition:
Recruitment process is a process of identifying the jobs vacancy, analyzing the job
requirements, reviewing applications, screening, shortlisting and selecting the right
candidate. Recruitment is a process of finding and attracting the potential
resources for filling up the vacant positions in an organization. It sources the
candidates with the abilities and attitude, which are required for achieving the
objectives of an organization.

(A) Internal Sources:

Best employees can be found within the organisation… When a vacancy arises in
the organisation, it may be given to an employee who is already on the pay-roll.
Internal sources include promotion, transfer and in certain cases demotion. When
a higher post is given to a deserving employee, it motivates all other employees of
the organisation to work hard. The employees can be informed of such a vacancy
by internal advertisement.

Internal Sources Are Given Below:

1. Transfers:
2. Promotions:
3. Present Employees references

Advantages of Internal Sources:

The Following are The Advantages of Internal Sources:
1. Improves morale:
2. Less Error in Selection:
3. Promotes Loyalty:
4. No Hasty Decision:
5. Economy in Training Costs:
6. Self-Development:

Disadvantages of Internal Sources:

(i) It discourages capable persons from outside to join the concern.
(ii) It is possible that the requisite number of persons possessing qualifications for
the vacant posts may not be available in the organisation.
(iii) For posts requiring innovations and creative thinking, this method of
recruitment cannot be followed.
(iv) If only seniority is the criterion for promotion, then the person filling the
vacant post may not be really capable.

(B) External Sources:

Methods of External Sources:
1. Advertisement:
2. Employment Exchanges:
3. Schools, Colleges and Universities:
4. Recommendation of Existing Employees:
5. Factory Gates:
6. Casual Callers:
7. Central Application File:
8. Labour Unions:
9. Labour Contractors:
10. Former Employees:
11. Placement Agencies / Consultants
Apart from these major sources of external recruitment, there are certain other
sources which are exploited by companies from time to time. These include
special lectures delivered by recruiter in different institutions, though apparently
these lectures do not pertain to recruitment directly.
Merits of External Sources:
1. Availability of Suitable Persons:
2. Brings New Ideas:
3. Economical:

Demerits of External Sources:

1. Demoralisation:
2. Lack of Co-Operation:
3. Expensive:
4. Problem of Maladjustment:

External Sources of Recruitment are Suitable in the Following Reasons:

(i) The required qualities such as will, skill, talent, knowledge etc., are available
from external sources.

(ii) It can help in bringing new ideas, better techniques and improved methods to
the organisation.
(iii) The selection of candidates will be without preconceived notions or
reservations.
(iv) The cost of employees will be minimum because candidates selected in this
method will be placed in the minimum pay scale.
(v) The entry of new persons with varied experience and talent will help in human
resource mix.
(vi) The existing employees will also broaden their personality.
(vii) The entry of qualitative persons from outside will be in the long-run interest
of the organisation.
Steps in Selection Process

Step 1: Advertise the position after receiving the requisition and JD

Step 2: Resume screening.
Step 3: Phone/ Internet based interview.
Step 4: Face-to-face interview.
Step 5: Assessment. Use a predictive assessment tool.
Step 6: Secondary face-to-face interview. ( senior management)
Step 7: Job Shadow. Whether the applicant is comfortable with the actual job.
Step 8: Reference Check.
Step 9: Job Offer.

Selection Process

Every organisation creates a selection process because they have their own
requirements. Although, the main steps remain the same. Let’s understand in brief
how the selection process works.
Process # 1. Application Form:
The application form is designed to contain detailed information about the
candidates. It also helps in comparing the merits of the applicants.
The information required in the application form will include (i) Post applied
for(ii) Personal data ,(iii) Education, (iv) Professional qualification, etc

Process # 2. Interview:
An interview is the first face to face interaction between the candidate and the
company representatives. It is a sine qua non for applicants who qualify in the
first screening as probable ones having all the basic requirements. The objectives
of selection interviews are to produce information about the candidate’s motives
and behavior,

Process # 3. Employment Tests:

1 Intelligence tests - problem solving abilities
2 Attainment tests:-the degree to which a person has acquired knowledge or skill.
3 Aptitude tests:
Aptitude tests identify an individual’s suitability for particular types of work -Tests
of ‘sales aptitude’, ‘managerial aptitude’, ‘mechanical aptitude’, etc. are used to
identify the candidate’s potentialities in a chosen area.
4 Interest tests:
Interest tests help in predicting the areas in which the candidates are most likely
to settle down and be satisfied. The candidate’s preference for indoor or outdoor
jobs, routine or creative work and individual or group responsibilities may be
ascertained by administering interest tests.
5 Personality tests:
Personality tests are designed to measure the degree to which an individual
possesses such qualities as drive/ persuasiveness, self-confidence, stability, etc.

Process # 4. References:
References should be sought, after the selection is finalized.

Process # 5. Medical Test:

The selected candidates are medically examined by the company’s doctor or
approved medical practitioners.
Process # 6. Appointment Order:
The selected candidates are issued letters of appointment after the
recommendations of the selection board are approved by competent authority in
the company.

Important Steps in Recruitment and Selection Process

1. Temporary or Permanent Employee:
2. Create Job Description:
3. Determine the Recruitment Strategy:
4. Determine the Selection Tools to be Used
5. Perform a Pre-Interview Orientation:
6. Preliminary Screening:
7. Review Application Forms and Resumes:
8. Conduct Written Test:
9. Conduct Personal Interview:
10. Perform Reference Checks:
11. Make the Job Offer:
12. Medical Examination:
13. Induction and Orientation:
Importance of the Selection Process

1. Proper selection and placement of employees lead to growth and

development of the company. The company can similarly, only be as good as
the capabilities of its employees.
2. The hiring of talented and skilled employees results in the swift achievement
of company goals.
3. Industrial accidents will drastically reduce in numbers when the right technical
staff is employed for the right jobs.
4. When people get jobs they are good at, it creates a sense of satisfaction with
them and thus their work efficiency and quality improves.
5. People who are satisfied with their jobs often tend to have high morale
 HR role in safeguarding assets of the organisation
Assets are resources controlled by an organization to help in creating economic
benefits to the enterprise. The chief function of an asset, either used individually
or in combination with other assets, is to generate current and future cash flows to
meet the needs of the organization and corporate stakeholders.

The important assets to the existence of organizational value are financial, physical,
and intangible, which includes human capital, or employees.

Establishing a culture where safeguarding assets is taken seriously is one of the

most important things that HR can do. It should be made clear that everyone in the
organisation is committed to good safeguarding practice and that HR is willing to
take appropriate action by drafting relevant policies Ensuring that the policy applies
equally to all, regardless of seniority or status, is essential.

HR has responsibility for arranging the training and development to keep up to date
with the changing landscape.

Safeguarding company data and information is important. HR must regularly

review who has entered these sensitive files and if they were authorized to do so.
Also, regularly review your policy to make sure it addresses the most current
security best practices.

Ensure that the company has an internal incident response plan and the
appropriate resources in-house to handle an incident of employee information or
corporate data loss or access by unauthorized employees or outsiders
Tangible assets like plant and machinery etc. also need to be protected through
regular maintenance and repair

Background checks help businesses safeguard assets. While many employers believe
background screening only covers criminal searches, HR has to do a lot more in
helping them hire the right employees. That includes everything from verifying
identity and educational and work histories to credit and finance reports to
alcohol and drug use screening.