Human Resource Management

&
Personnel Management
.
 Human Resource Management
Meaning
• Before we define HRM, it seems pertinent to first define the
term ‘human resources’
• According to Leon C. Megginson “From the national point of
view human resources are knowledge, skills, creative abilities,
talents, and attitudes obtained in the population; whereas from
the view-point of the individual enterprise, they represent the
total of the inherent abilities, acquired knowledge and skills as
exemplified in the talents and aptitude of its employees”.
Define human resource management
• In simple words, HRM is a process of making the efficient and
effective use of human resources so that the set goals are
achieved.
 Human Resource Management
DEFINITION:
According to Flippo “Personnel management, or say, human
resource management is the planning, organizing, directing
and controlling of the procurement development compensation
integration, Maintenance, and separation of human resources
to the end that individual, organizational and social objectives
are accomplished”.
Thus, HRM can be defined as a process of procuring, developing
and maintaining competent human resources in the
organization so that the goals of an organization are achieved
in an effective and efficient manner. In short, HRM is an art of
managing people at work in such a manner that they give their
best to the organization for achieving its set goals.
 Human Resource Management
• Objectives:
The primary objective of HRM is to ensure the availability of right
people for right jobs so as the organizational goals are achieved
effectively.
This primary objective can further be divided into the following
sub-objectives:
• 1. To help the organization 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-
actualisation.
• 4. To develop and maintain the quality of work life (QWL) which
makes employment in the organization a desirable personal and
social situation.
• 5. To help maintain ethical policies and behavior inside and outside
the organization.
• 6. To establish and maintain cordial relations between employees
and management.
• 7. To reconcile individual/group goals with organizational goals.
 Human Resource Management
• Scope:
The scope of HRM is, indeed, very vast and wide. It includes all activities
starting from manpower planning till employee leaves the organization.
Accordingly, the scope of HRM consists of acquisition, development,
maintenance/retention, and control of human resources in the organization
 Human Resource Management
The National Institute of personnel Management, Calcutta has
specified the 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, crèches, 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.
 Human Resource Management
Functions:
We have already defined HRM. 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
(2) Operative functions
 Human Resource Management
(1) Managerial Functions:
• Planning:
Planning is a predetermined course of actions. It is a process of determining the
organizational 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.
• Organizing:
Organizing is a process by which the structure and allocation of jobs are
determined. Thus organizing 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 organization.
• 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.
 Human Resource Management
(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.
• Procurement:
It involves procuring the right kind of people in appropriate number to be placed in the
organization. It consists of activities such as manpower planning, recruitment, selection
placement and induction or orientation of new employees.
• Development:
This function involves activities meant to improve the knowledge, skills aptitudes and
values of employees so as to enable them to perform their jobs in a better manner in future.
These functions may comprise training to employees, executive training to develop managers,
organization development to strike a better fit between organizational climate/culture and
employees.
• Compensation:
Compensation function involves determination of wages and salaries matching with
contribution made by employees to organizational goals. In other words, this function ensures
equitable and fair remuneration for employees in the organization. It consists of activities
such as job evaluation, wage and salary administration, bonus, incentives, etc.
• Maintenance:
It is concerned with protecting and promoting employees while at work. For this purpose
virus benefits such as housing, medical, educational, transport facilities, etc. are provided to
the employees. Several social security measures such as provident fund, pension, gratuity,
group insurance, etc. are also arranged
 Personnel Management
• Definitions:
1.”The personnel function is concerned with the procurement,
development, compensation, integration, and maintenance of the
personnel of an organization for the purpose of contributing toward
the accomplishment of that organization's major goals or objectives.
Therefore, personnel management is the planning, organizing,
directing, and controlling of the performance of those operative
functions.” — Edwin B. Flippo, Principles of Personnel
Management.
2.“Manpower management effectively describes the processes of
planning and directing the application, development, and utilization
of human resources in employment.” — Dale Yodder, Personnel
Management and Industrial Relations.
3. ”Personnel Management is that part of management process which is
primarily concerned with the human constituents of an
organization.” — E.F.L. Brech (ed.) Principles and Practice of
Management
 Personnel Management
• Objectives of Personnel Management:
These are classified into two:
(а) General Objectives:
These reveal the basic philosophy of top management towards the labour
force engaged on the work and its deep underlying conviction as to the importance
of the people in the organization. The following are the most important objectives.
(i) Maximum individual development:
The employer should always be careful in developing the personality of each
individual. Each individual differs in nature and therefore management should
recognize their individual ability and make use of such ability in an effective and
make use of such ability in an effective manner.
(ii) Desirable working relationship between employer and employees:
It is the main objective of personnel management to have a desirable working
relationship between employee and employees so that they may co-operate the
management.
(iii) Effective molding of human resources as contrasted with physical resources: Man
is the only active factor of production, which engages the other factors of
production to work.
 Personnel Management
(b) Specific objectives: Following are some of the important activities:
(i) Selection of right type and number of persons required to the
organization.
(ii) Proper orientation and introduction of new employees to the
organization and their jobs.
(iii) Suitable training facilities for better job performance and to prepare the
man to accept the challenge of higher job.
(iv) Provision of better working conditions and other facilities such as
medical facilities.
(v) To give a good impression to the man who is leaving the organization.
(vi) Maintaining good relations with the employees.
 Personnel Management
• Functions of Personnel Management:
Personnel management involves two categories of functions—
managerial and operative.