BBA LLB – IV Semester

Subject- Human Resource Management

Unit-1
By- A.P. Anushka Gupta
Introduction of Human Resource Management:
Human: refers to the skilled workforce in an organization.

Resource: refers to limited availability or scarce.

Management: refers how to optimize and make best use of such limited or scarce resource so as to
meet the organization goals and objectives.

Therefore, human resource management is meant for proper utilization of available skilled workforce
and also to make efficient use of existing human resource in the organization.
Concept of Human Resource Management:

It 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, 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. .
It is designed to maximize employee performance in service of an employer's strategic objectives.

Edwin Filippo 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.”
 Nature of HRM
•Managerial Process: Human resource management is a vital part of management that includes planning,
organizing, staffing, directing, and controlling human resources to achieve organisational success. It is a
managerial process that effectively utilizes human resources to attain organizational goals and objectives.

•Both Art and Science: Human resource management is a mixture of both art and science. It is an art as it
deals with qualitative attributes like creativity, knowledge, skills, and talent of the personnel. In simple words,
HRM is the art of getting things done by others effectively. HRM is a science as it requires different scientific
techniques for activities like recruitment, selection, training, and appraisal of employees.

•Pervasive Force: Human resource management, being an inherent part of an organization, is pervasive in
nature. It means that HRM is present in different functional areas of management, like finance, marketing, and
production, in all commercial and non-commercial enterprises. Everyone in the organization, from the top to
the lowest level, must perform HRM functions regularly.
•Improve Employee Relations: Human resource management is concerned with building healthy
relationships between employees at various organisational levels. Every individual has different
needs, goals, and expectations. HRM deals with these individual factors and motivates employees to
reach their maximum potential. Moreover, it creates an organisational culture that fosters learning and
growth.

•People - Centered: The nature of human resource management is people-centred and relevant in all
types of organizations. It is concerned with every employee from the top to the bottom level. HRM
value people both as individuals and as a group. Furthermore, it encourages people to develop their
full potential and fulfil individual and organisational goals.

•Development-Oriented: The development of the workforce in an organisation is crucial to

the nature of human resource management. HR managers use various tools to help employees
understand their strengths and unleash their potential. Regular training programs can benefit
employees by improving their skills. Also, monetary and non-monetary reinforcement can help people
stay motivated to perform better.
•Action Oriented: While human resource management does follow the rules and policies, its main focus is
on action and results rather than rules. A human resource manager stresses the importance of providing
effective solutions for employee problems, tensions, or controversies.

•Forward-Looking: Sustaining in the competitive business environment requires organisations to plan

long-term strategies. HRM is a future-oriented approach that evaluates the human resource requirements
and ensures the availability of required personnel in the right place at the right time. With the forward-
looking nature of human resource management, managers prepare employees by motivation, training, and
development to face current and future challenges in the changing business environment.

•Continuous Process: Human resource management is not a ‘one-time’ function. Rather, it is a never-
ending process that must be performed continuously to achieve organisational objectives effectively. It
involves a series of tasks, beginning with identifying the human resource requirement and continuing with
recruitment, training, performance evaluation, and appraisal.
 Scope of HRM
1. Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the union
members to avoid strikes or lockouts to ensure smooth functioning of the organization. It also
covers - joint consultation, collective bargaining, grievance and disciplinary procedures, and
dispute settlement

2. Welfare Aspect – Human Resource Management have to follow certain health and safety
regulations for the benefit of employees. It deals with working conditions, and amenities like -
canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health
and safety, recreation facilities, etc.

3. Personnel Aspect:
Human Resource Planning – It is the process by which the organization identifies the number of
jobs vacant.
Recruitment and Selection – Recruitment is the process of preparing advertisements on the basis of
information collected from job analysis and publishing it in newspaper. Selection is the process of
choosing the best candidate among the candidates applied for the job.

Orientation and Induction – Making the selected candidate informed about the organization’s
background, culture, values, and work ethics.

Training and Development – Training is provided to both new and existing employees to improve
their performance.

Performance Appraisal – Performance check is done of every employee by Human Resource

Management. Promotions, transfers, incentives, and salary increments are decided on the basis of
employee performance appraisal.

Compensation Planning and Remuneration – It is the job of Human Resource Management to plan
compensation and remunerate.
 Objectives of Human Resource Management
1. Societal objective: To be socially responsible to the needs and challenges of society while
minimizing the negative impact of such demands upon the organization. The failure of organizations
to use their resources for society's benefit may result in restrictions. For example, societies may pass
laws that limit human resource decisions.

2. Organizational objective: To recognize that Human resource management exists to contribute to

organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with
its primary objectives. Simply stated, the department exists to serve the rest of the organization.

3. Functional objective: To maintain the department's contribution at a level appropriate to the

organisation's needs. Resources are wasted when Human Resource Management is more or less
sophisticated than the organisation demands. A department's level of service must be appropriate for the
organisation it serves.
4. Personal objective: To assist employees in achieving their personal goals,
at least insofar as these goals enhance the individual's contribution to the
organization. Personal objectives of employees must be met if workers are to
be maintained, retained and motivated. Otherwise, employee performance and
satisfaction may decline, and employees may leave the organisation.
HRM Policies
1. Equal Employment Opportunity Policy
Promoting diversity and inclusion is crucial for any modern organization. An Equal Employment
Opportunity (EEO) policy ensures fair treatment of all employees and applicants, regardless of their race,
gender, age, religion, or other protected characteristics. This policy helps prevent discrimination and ensures
a level playing field for everyone.

2. Anti-Harassment and Anti-Discrimination Policy

A workplace free from harassment and discrimination is essential for fostering a healthy and productive
environment. This policy outlines unacceptable behaviors, provides clear reporting procedures, and ensures
appropriate action is taken against any misconduct. By actively addressing harassment and discrimination,
you create a safe and respectful workplace for all.

3. Code of Conduct
A well-defined code of conduct sets the standards for employee behavior and ethics within the organization.
It outlines expectations regarding professionalism, integrity, confidentiality, and conflict of interest. A code
of conduct helps maintain a positive work culture and ensures consistency in employee actions.
4. Employee Compensation and Benefits Policy: A competitive and fair compensation and benefits policy
helps attract and retain top talent. This policy outlines the company’s approach to salary, bonuses, incentives,
health benefits, retirement plans, and other perks. By offering attractive compensation packages, you can
motivate employees and improve retention rates.

5. Performance Management Policy: Effective performance management is key to optimizing employee

productivity and development. This policy outlines the performance evaluation process, goal setting, feedback
mechanisms, and performance improvement plans. By providing regular feedback and support, you can help
employees reach their full potential.

6. Leave and Time-Off Policy: A well-defined leave and time-off policy ensures clarity and consistency in
managing employee absences. This policy covers various types of leave, including vacation, sick leave,
parental leave, and bereavement leave. It establishes guidelines for requesting time off, provides details on
accruals, and ensures smooth workflow management.

7. Employee Development and Training Policy: Investing in employee development is crucial for enhancing
skills and knowledge. This policy outlines the company’s commitment to continuous learning, including
training opportunities, mentorship programs, and career development initiatives. By fostering a learning
culture, you can nurture employee growth and improve overall performance.
Perspective of HRM

1. The Normative Perspective :The normative perspective of HRM bases itself on the concepts of “hard
HRM" and “soft HRM, Hard HRM stresses the linkage of functional areas such as manpower planning,
job analysis, recruitment, compensation and benefits, performance evaluations, contract negotiations, and
labor legislations to corporate strategy. This enforces organization interests over the employees'
conflicting ambitions and interests. Soft HRM model considers human capital as “assets" rather than
“resources" and lays stress on organizational development, conflict management, leadership development,
organizational culture, and relationship building as a means of increasing trust and ensuring performance
through collaboration. This approach works under the assumption that what is good for the organization is
also good for the employee.

2. Systems perspective: The systems perspective describes an organization in terms of input, throughput, and
output, with all these systems involved in transactions with a surrounding environment. The organized
activities of employees constitute the input, the transformation of energies within the system at throughput,
and the resulting product or service the output. A negative feedback loop provides communications on
discrepancies.
3 - Critical perspective: The critical perspective of HRM is an outcome of normative perception. It proposes
that organizations maintain their "soft HRM" approach only to show in their policies but in reality, they
practice "hard HRM" to extend management control.

They pretend to be concerned for workers and exploit them through work intensification and downsizing.
However, Critical Perspective proposes that HRM has only changed organizational rhetoric and reality has
not changed since the introduction of Personnel. However, it also argues that HRM uses a unitary, soft HRM
rhetoric to obscure hard reality characterized by increased management control and diminished job security
for employees. The first proposition describes HRM as powerless and the second as powerful.

4 - Behavioral perspective: Behavioral perspective of HRM believes that it is vital for an organisation to
control or mold the behavior of its employees to bring the desired results from them. Focus is on the
identification of desired behavior, ensuring availability of opportunities and environment for desired behavior,
developing employees' skills to bring desired behavior, and motivating employees to behave as desired.

Different employee behaviors needed for different organizations. Organizations' policies and practices help in
bringing desired employee behavior and that increases its effectiveness.
 INTRODUCTION TO STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management (SHRM) is an approach to managing human resources

within an organization that aligns HR practices and policies with the overall strategic goals of the
organization. It involves integrating HR strategies and activities with the organization's strategic
objectives in order to enhance organizational performance and achieve a competitive advantage.

As a result, the goals of a human resource department reflect and support the goals of the rest of the
organization. Strategic HRM is seen as a partner in organizational success, as opposed to a
necessity for legal compliance or compensation.

Strategic HRM utilizes the talent and opportunity within the human resources department to make
other departments stronger and more effective.
Characteristics of Strategic Human Resource Management(SHRM)
1. Recognition of the outside Environment: Outside environment presents some opportunities and
threats to the organization in the form of-
 Laws
 Economic conditions
 Social and demographic change
 Domestic and international political forces
 Technology and so on.
Strategic human resource strategy explicitly recognizes the threats and opportunities in each area and
attempts to capitalize on the opportunities while minimizing or deflecting the effect of threats.

2. The impact of Competition: The forces of competition in attracting, rewarding, and using employees
have a major effect on corporate human resource strategy. Forces play out in local, regional and national
labor markets. Labor market dynamics of wage rates, unemployment rates, working conditions, benefits
levels minimum wages legislation and competition reputation all have an impact on and are affected by
strategic human resource decisions.
3. Long-Range Focus: A strategic human resource management should be long-range focus cause this is
not easy to change the strategic human resource policy.

4. Choice and Decision-making focus: In other words, the strategy has a problem solving or problem
preventing focus. Strategy concentrates on the question, “what should the organization do and why?” this
action orientation requires that decisions be made and carried out.

5. Consideration of all Personnel: A strategic approach to human resources is concerned with all of the
firm’s employees, not just its hourly or operational personnel. Traditionally, human resource management
focuses on hourly employees, with most clerical exempt employees also included.

6. Integration with the Corporate Strategy: Human resource strategy adopted by a firm should be
integrated with the firm’s corporate strategy.

The key idea behind overall strategic management is to coordinate all of the company’s resources,
including human resources; in such a way that everything a company does contribute to carrying out its
strategy.
Thankyou