Unit -1

Meaning of HRM
HRM is the art of Procuring, developing and maintaining competent workforce
to achieve organisational goals effectively. The process of employing people,
developing their resources, utilising, maintaining & compensating their service
in tune with the job & organisational requirements with a view to contribute to
the goals of the organisation, individual & the society.
Scope of HRM
The Scope of Human Resource management into the following aspects
1. The Personnel Aspect: This aspect of HRM is concerned with the manpower
planning, recruitment, selection, placement, induction, transfer, promotion,
demotion, termination, training &development, layoff & retrenchment, wage
& salary administration, incentives, productivity etc.
2. The Welfare Aspect: -The welfare aspect is concerned with working
conditions & amenities such as canteens, crèches, rest rooms, lunch rooms,
housing, transport, education, medical help, health & safety, washing facilities
recreation & cultural activities etc.
3. The Industrial Aspect: -This aspect is concerned with employees. It includes
union management relations, joint consultation, negotiating collective
bargaining, grievance handling, disciplinary actions, settlement of industrial
disputes etc.
Importance for the Organisation
HRM is important for the organisation to the following:
Good human resource practices help in attracting & retaining the best people
in the organisation. In order to make use of latest technology the appointment
of right type of persons is essential. The right people can be fitted into new
jobs properly only if the management performs its HR function satisfactorily.
Globalisation has increased the size of the organisation who employ thousands
of employees in different countries. The performance of the company depends
upon the qualities of the people employed. This has further increased the
importance of HRM HR planning alerts the organisation to the types of people
it will need in the short, medium & long run.
HR development is essential for meeting the challenges of future. The
importance of HRM has increased because of the shortage of really managerial
talent in the country.
Human Rescore Planning
HRP means deciding the number & type of the human resources required for
each job, unit & the total company for a particular future date in order to carry
out organisational activities.
HRP or manpower planning is essentially the process of getting the right
number of qualified people into the right job at the right time. It is a system
matching the supply of people (existing employees & those to be hired or
searched for) with openings the organisation expects over a time frame.

i. Forecasting Human Requirements:

HRP Human resource planning is essential to determine the future human
resource needs in an organization. In the absence of such a plan, it would be
difficult to have the services of the right kind of people at the right time.

ii. Effective Management of Change:

Proper planning is required to cope with changes in market conditions,
technology products, and government regulations in an effective way. These
changes call for continuous allocation or reallocation of skills and in the
absence of planning there might be under-utilization of human resource.

iii. Realizing Organizational Goals:

In order to meet the needs of expansion programmes and growth strategies of
the organizations planning is essential

iv. Promoting Employees:

The database available provides a comprehensive skill repertoire, which
facilitates for decision making as to the promotional opportunities to be made
available for the organization.

v. Effective Utilisation of Human Resource:

This database is also useful for identifying surplus and unutilized human
resource and resources. In times of downsizing or in estimating the cost-
benefit analysis of human resources would add value to the process.
The objective of human resource planning is to maintain and improve the
organization’s ability to achieve its goals by developing strategies that will
result in optimum contribution of human resources.
Job Analysis
Definition: - Job analysis is the process of studying & collecting information
relating to the operation & responsibilities of a specific job. The immediate
products of this analysis are job descriptions & job specification.

Job Description: - A statement contains Job title, Location, Job summary,

Duties, Machines, tools & equipment, Materials & forms used, supervision
given of received, working conditions, hazards.

b) Job Specification: - A statement of human qualification necessary to do the

job, which contains Education, Experience, Training, Judgement, Initiative,
Physical effort, Physical skills, Responsibilities, Communication skills,
Emotional characteristics.

Uses of Job Analysis

Human Resource Planning: - HRP determines as to how many & what type of
personnel will be needed in the coming period. The number & the type of
personnel are determined by the jobs which need to be satisfied. Job related
information is therefore, necessary for human resource planning.

Recruitment & Selection: - Recruitment needs to be preceded by job analysis.

Job analysis helps human resource manager to locate places to obtain
employees for openings anticipated in the future. An understanding of the
types of the skills needed & types of jobs that may open in the future.
Selection a qualified person to fill a job requires knowing clearly the work to
be done & the qualifications needed for someone to perform the work
satisfactorily, without a clear & precise understanding of what a job entails

Training & Development

Job analysis is useful for human resource
development manager is as much as it helps him/her know what a given job
demands from the incumbent in terms of knowledge & skill. Training &
development programmes can be designed depending on the job
requirements.
Selection of trainees is also facilitated by job analysis.

Job Evaluation: - It involves determination of relative worth of each job for

the purpose of establishing wage & salary differentials, relative worth is
determined mainly on the basis of job description & job specification.

Remuneration: - job evaluation helps determine wage & salary grades for all
the jobs. Employees need to be compensated depending on the grades of jobs,
which they occupy. Remuneration involves fringe benefits, bonus & other
benefits.
Performance Appraisal: - it involves assessment of the actual performance of
an employee against what is expected to him/her. Such assessment is the basis
for awarding promotion, effecting transfers, or assessing training needs.

Safety & Health: - the process of conducting a detailed job analysis provides
an excellent opportunity to uncover & identify hazardous conditions &
unhealthy environmental factors (such as heat, noise fumes & dust) so that

Steps in Selection
Process Popularly there are seven stages in the process of selection
1. Application – After the job opening has been announced, the candidates
apply for the respective jobs which suit them.

2.Screening and Pre-selection – The goal of this second phase is to reduce the
number of candidates from a large group to a manageable group of between
3-10 people that can be interviewed in person. The selection is based on their
selection technique and according to the company’s needs.

3.Interview – The interview gives insight into a person’s verbal accuracy and
how sociable they are. This also provides the opportunity to ask the candidate
job-related queries.

4.Assessment-The full assessment usually is more accurate as this helps the

organization to check the candidate well. Assessments include work sample
tests, integrity tests, and related job knowledge tests.

5.Reference And Background Check- An essential step is the reference check,

which is to confirm about the candidate. The candidates are asked to give
references and he follows up on these.

6. Decision- The next step is to decide to choose the correct candidate who
promises the greatest future potentiality for the organization. Job Offer and
 Contract – After the decision-making process, the candidate needs to accept
the offer which is known as the contract.

What is a Job Description?

A job description (JD) is a written statement of facts describing the purpose,
scope, context and responsibilities of a job. Each JD focuses first and foremost
on the requirements of the job, as well as listing any unusual and unavoidable
working conditions which are inherent to the job. It is intended to provide a
clear picture of the position’s role within the organization.
Job descriptions describe positions at the time of writing and are subject to
change over time. The job descriptions available on this website accurately
reflect each position when the job description was written and may not be an
exact reflection of the position’s current role.
What is Job Evaluation?
Job Evaluation (JE) is the analysis and evaluation of work for the purpose of
determining the relative value of each job in an organization. Job evaluation is
therefore the basis for fair compensation.

Different between Hrm and Strategic Hrm

BASIS FOR COMPARISON HRM SHRM
Human resource management (HRM) SHRM is a managerial function which implies
implies the governance of manpower of theframing of HR strategies in such a way to direct
Meaning
organization in a thorough and structured employees efforts towards the goals of the
manner. organization.
Nature Reactive Proactive
Responsibility lies with Staff specialist Line manager
Approach Fragmented Integrated
Scope Concerned with employee relations Concerned with internal and external relations
Time horizon Short term Long term
Basic factor Capital and products People and knowledge
Change Follows change Initiates change
Accountability Cost center Investment center
Control Stringent control over employees It exhibits leniency.