Chapter No.

Human Resources Management

2.1 Literature Review
HRM is derived from the phrase Personnel Management (PM). The idea
of PM evolved following Second world war in 1945 as being a separate
re search coming f rom other managerial operates along with help to
make the actu al employees operate right into a skilled man agerial side.

It can be stated that the classic operation regarding Personnel

administration is usually to hire along with fi re regarding staff
members in a business, in conjunction with earnings supervision
along with Teaching in some degree. There has been confl ict
regarding renovating role regarding PM into straight into HRM
(Tyson, 1985), that's the reason this got a little while to replace
PM together with HRM (Lloyd along with Rawlinson, 1992).
Some writers in business management advocated that since there
is similarity of functions between PM and HRM therefore no
signifi cant diff erence do exist in their application. (Beer and
Spector, 1985).
The rapid development in business world and introduction of
technology lead to fresh ideas, new concepts, research and
philosophies of human resources (Noon, 1992, Armstrong, 2000).

Some writers on Personnel management and Human resources

management said that the two concepts are old wine into new
bottle with a diff erent label (Legge, 2005). Whether HRM is well
thought- out to be unlike than personnel management is a constant
question on both its meaning, concepts and practices
(Marchington & Wilkinson, 2002; Legge, 2005).
New horizons of Human resources are more directed towards
strategic vision and compared to stressing on traditional approach
of human resources.
Strategic horizons include team-based job designs, fl exible
workforces, quality improvement practices, employee
empowerment, and incentive-based compensation. (Huselid,
Jackson and Schuler, 1997).
Today we are living in a global economy. There is a rapid change
in business environment and operations each day and even each
hour. The Human resources are mainly responsible for success of
any business enterprise (Lippert and Swiercz, 2005). According to
(Dessler and Al Ariss, 2012), HRM helps human resources of an
organization in performing diff erent process thus leads to an
integration to overall strategy of an organization. Competitive
advantage can be attained by applying Strategic approach to
Human resources and thus getting benefi t from the abilities of
People.
(Bratton and Gold 2003).
Business process reengineering has advocated that primary
administrative personnel function is to be transformed into
Modern Human resources and then Human resources information

system. (Cooper 2011, Ulrich 1997).Changing the shape of

personnel function to Human resources will provide a better
results and ultimately lead to enhance organizational performance
(Bowen and Ostroff , 2004; Sheehan and Cooper, 2011)
Reengineered functions of Personnel that lead to HRM are
planning, recruitment, selection , Appraisal and employee
relations, health and safety, Union management and merit rating
(Decenzo & Robbins 2010).
Furthermore training, participation, merit rating, carrier
development are also some aspects of the Human resources.
Manager judgment on current and future demand of employees
and focus on worker issue, will lead to organization success
(Martinsons (1997; and Beulen, (2009).
Human resources management is the process of acquiring,
training, appraising, and compensating employees, and of
attending to their labour relations, health and safety, and fariness
concerns (Gary Dessler 2010)

2.2

Defi ning Human resources

Human Resource Management (HRM) is the function within an

organization that focuses on recruitment of, management of, and
providing direction for the people who work in the organization.

HRM is also a strategic and complete approach to managing

people and the workplace culture and environment. Successful
HRM enables employees to contribute eff ectively and productively

to the overall company objectives track the achievement of the

organization's goals and objectives.

HRM is additionally any organizing and total way of managing

people and also the work environment tradition and atmosphere.
Productive HRM enables staff members to play a role properly and
productively on the general fi rm objectives course and also
contributes towards the success on the corporation's ambitions
and objectives.

2.3 Importance of Human resources

information
According to Gary Dessler (2010) following are some of the some
factors that makes HRM viable for every type of manager:
1. To recruit the right person fro the right job.
2. To avoid high turnover rate.
3. To get more motivated employees for an
organization.
4. To get effi cient and eff ective participation from all
sectors of the organization.
5. To maintain a fair mechanism for salary and
benefi t administration.
6. To have a better relations with the trade union.

2.4 HR OBJECTIVES

HRM is useful not only to organization, and the employees working

therein, and also the society at large also fi nd it useful. The
objectives can be as under:

2.4.1

Organizational Objectives:

HRM is a source to achieve effi ciency and eff ectiveness. It serves

other functional areas, so as to help them to attain effi ciency in
their operations and accomplishment of goals to achieve
effi ciency.
Acquiring right man for the right job at right time in right
quantity, developing through right kind of training, utilizing the
selected workforce, and maintaining the workforce are the
organizational objectives of HRM.

2.4.2

Functional Objectives:

HRM performs so many functions for other departments. However,

it must see that the facilitation should not cost more than the
benefi t rendered.

2.4.3

Personal Objectives:

These days Human resources are considered as valuable Human

capital. In todays world there is scarcity of essential talent.
Employees are encouraged by competitive fi rms to leave their
current job and switch over to them. HRM has the responsibility to
acquire, develop, utilize, and maintain employees.
This would be possible only when the HRM helps employees to
achieve their personal goals to get their commitment. Creating
work-life balance for the employees is a personal objective.

2.4.4Societal Objectives:

HRM must see that the legal, ethical, and social environmental
issues are given proper attention. Legal issued such as Equal
opportunity and equal pay for equal work must not be overlooked.
Social objectives include :
a. To help society through generating employment opportunity
b. Building schools and dispensaries
c. Helping women empowerment are the social responsibility
issues.

2.5 HR Basic Functions:

On a basic level, human resource management is concerned about

recruiting, hiring and managing employees. However, an eff ective
human resource system provides many more phase of the
organization, including organizational culture and make sure
health and safety. With an understanding of these components of
an HR management system, business owners and managers can
eff ectively structure their business processes. (Jeremy C Bradley,
2013)
2.5.1

Organizational Culture

Organizational culture is the collection of values, working norms,

company vision, habits and beliefs that the business adopt. The
HR management system plays a large part in shaping the
organizational culture. Setting policies, procedures and company
standards speak to employees the behaviors that are acceptable
in the workplace. In real meaning, the organizational culture
aff ects the way people do their work and interact with one
another and with customers.
2.5.2

Planning for Change

The business world changes rapidly. New technology is introduced,

employees come and go, and the fi nances of the company
fl uctuate. Planning for change means helping employees
understand their roles in the bigger scenario of the company. It's
about building bridges between departments and managers and
getting people to talk about "what-if" situations. HR takes this
information and develops a management plan for disasters, for

changes in workfl ow and for reassuring employees in times of

crises or frightening change.

2.5.3

Training and Development

Training is needed at levels of employees, even ones that are

highly educated or skilled, require some level of training because
each organization runs things in a diff erent way. Policies and
procedures need to be fi rmly communicated to employees as part
of their on-boarding process. The HR management system is also
responsible for continuing employee development. This continuous
education keeps employees' skills fresh so they bring new and
innovative ideas to the workplace.

2.5.4

Health and Safety

The HR management system plays a key role in ensuring health

and safety in the organization . This can be accomplished through
policies and procedures, but the HR function may go a step further
to make sure employees understand the risks of certain activities.
For example, if there is heavy machinery in the offi ce, HR can post
warning signs and posters listing the steps to take in case of an
emergency. This reduces the possibility that an accident will
occur and helps to reduce any succeeding legal action that might
be taken against the company.

2.5.5

Recruitment and Retention

Recruitment and retention are vital part of HR management

systems. Finding qualifi ed workers, locking up them with the
company, training them to eff ectively do their jobs and providing
incentives for further education, benefi ts and compensation
drivers to organizational success and should be constantly on the
minds of HR managers.

2.5.6

Professional Development

Eff ective HR departments allow and encourage the employees with

opportunities for growth, leadership training and education, which
in turn contribute to the success of the company. Sponsoring for
career advancement seminars, training, corporate social
responsibilities and trade shows will make employees feel
important and cared for by the team and organization.
2.5.7

Benefi ts and Compensation

A company is more likely to be successful, if it adapts new ways

of providing benefi ts to employees. Some non-traditional benefi ts
that can attract and retain new skilled employees are:

Flexible working hours or workdays,

Extended vacation time,

Paternity leave or childcare

Medical/dental insurance,

Corporate gym membership discounts

Continuing education/skills development

Award & recognition programs

2.5.8

Ensuring Legal Compliance

Compliance with labor, tax and employment laws is a vital part of

safeguarding the organizations continued existence. HR has to be
aware of all the order laws and policies regarding employment
practices, working conditions, tax allowances, required working
hours, overtime, break times, minimum wage, and discrimination
policies as noncompliance can aff ect productivity and ultimately,
profi tability of the company.

2.6 CORE COMPETENCIES OF HR MANAGER

2.6.1

Negotiation Skills

Eff ective human resource managers have communication and

relationship skills. This skill enables them to negotiate win-win
situations for the company and the employees. Irrespective of its
size each business has certain boundaries on its budget for salary,
benefi ts and placement Workers are also a social being , a part of
society so they have certain needs . Human resource managers
get information about the needs and even unspoken desires of

employees and help the company fulfi ll those requirements. They

know creative ways to accommodate each partys needs.

2.6.2

Job Knowledge

Human resources is such a function that it has to follow and

observe many rules and regulations like labor laws, safety
concerns, health issues and local, state and federal policies that
change regularly. An ability that must be embedded in successful
human resource managers is the ability to stay updated on
legislation related to employment and to be cognizant of
violations, harassment or hardships that employees faces. The
dissatisfaction many workers feel on the job is due to conditions
that are hard to detect Core competencies relating to detailed job
and industry knowledge help human resource managers fi nd and
eliminate problems that cause unfavorable working conditions for
employees.

2.6.3

Qualifi ed Recruitment

In human resources, qualifying is the process of tightening down

potential applicants to the prospects that can best fi ll all open and
future job opportunities. This may include fi nding candidates from
college campuses, other companies or people who hold certain
interests and skill sets.

2.6.4

Eff ective Training

The human resources department is often responsible for creating

the training programs that help employees fulfi ll their daily job
functions, advance to other positions within the company or
respond well to company changes and industry shifts. Human
resource managers must have the ability to foresee the training
needs of their company and develop materials that a wide range
of employees will respond well to. With a range of learning styles
and interests in the workforce, human resource managers must
tailor workshops, communication and training to meet employee
needs.

2.6.5

Infl uential Power

Leadership, or the ability to infl uence people, is a core

competency of human resource managers. They must be able to
motivate employees and show them how to do extremely well at
their jobs, grip change and make ethical decisions. During diffi cult
situations in a company, such as new management or major
layoff s, a human resource managers ability to train and infl uence
employees is essential to a companys productivity and to
individual employees job satisfaction.

 The big bang install a single ERP system across the entire organization
Franchising Independent ERP systems are installed in different units linked
by common processes, e.g., bookkeeping.
Slam dunk install one or several ERP modules for phased implementation of
key business processes.