Chapter 1

Introduction
It is rather difficult to say spontaneously what management means, though we are studied a
course in management. But it is necessary to recall what management is before studying Human
Resource Management (HRM). Management has been defined by Mary Follett as, “The art of
getting things done through people.” But is felt that management is much more then what is
said in this definition. Management id further defined as, “That field of human behavior in which
managers plan, organize, staff, direct and control human, physical and financial resources in an
organized effort, in order to achieve desired individual and group objectives with optimum
efficiency and effectiveness.” It is clear from the definition that management is concerned with
the accomplishment of objectives by utilizing physical and financial resources through the effort
of human resources. Thus, human resource is a crucial sub-system in the process of management.
The term human resource is quite popular all over the world. But most people may not know
what exactly the term human resource means.

Digital transformation has changed the way companies hire and manage talent. There was a time
when HR professionals had to manually handle all the hiring, firing, and payroll responsibilities.
But with the advancement of technology, the HR role has diversified and it now includes end-to-
end talent management responsibilities.

Now, more than ever, modern HR professionals are required to have complete, in-depth
knowledge of their organization’s core competencies so that they can hire employees that fit the
job requirements and the company culture perfectly.

Human resources Management is the process of managing the people of an organization with a
human approach. It also includes Human Resources planning, development, career planning,
succession planning, maintaining a high quality work life taking care of the welfare of the people
who work for the organization, counseling, guiding, motivating, actuating, compensation,
rewarding, evaluating, integrating, information storing and finally separating in addition to
recruitment, training, placement, induction etc. Thus Human Resources Management is the
system that focuses on human resources development, on the hand, and effective management of
people on the other, so that people will enjoy human dignity in their employment.

One of the earlier views of HRM put forward by Scheain was HRPD (Human Resources
planning and development). According to him, HRDP should match organizational need for
human resources and individual needs for a career and growth. His HRDP included human
resource planning, recruitment, selection, performance appraisal, educating, job enrichment,
counseling, and other functions. Training and development, feedback, organization development,
research and developmental activities and activities has been additionally include in the HRD
system by writers like Udai Pareek and T.V. Rao. In fathom must be capable to accommodate all
such aspects.

1
Human resource management is involved in providing human dignity to the employees taking
into account their capabilities, potential, talent, achievement motivation, skill, commitment,
creative abilities and so on, so that their personalities are reckoned as valuable human beings.
Thus, HRM is involved in every business, managerial activity, or function. We can remark here:
If actuating implies getting things done by people, which is the primary managerial job,
management is primarily human resource management.

In this context, Human Resource Management is the process of managing human beings as the
most important resource of an organization. A stress on the human performance. In the contrary,
individual human beings are enabled to enjoy dignity of being associated with their
organization’s since they are treated as the most valuable asset and resource s leading to
humanization of the work environment, it implies that human resource management approach
provides as superior quality of work life which gives a sense of belonging and a higher job
satisfaction to an organization’s own people. Thus, Human Resource Management is totally a
novel approach to an organization’s own people at work on the one hand to the organization’s
own business on the other.

Human Resource Management can be define as that part of management process which
develops, and manages the human elements of enterprise considering the resourcefulness of the
organization’s won people in term of knowledge, skills, creative abilities, talents, aptitudes and
potentialities for actuating. Every individual is the part of the resource of an organization, while
he or she is a valuable soul. By mismanaging the human resources, a manager kills, not only the
individual resourcefulness of his people, but the most important souls. Hence every human
resource management strategy must be guided by the golden rule, “give love and get love.”

From this discussion, it is to be emphasized that HRM is not a dignified term of personnel
management, through personnel management is enmeshed harmoniously in it. While HRM is
closely linked with HRM, counseling is indispensable for effective human resource
development. As we already observed, HRM is at the center of actuating.

1.1 Background of the Report:

As a part of my MBA program, I have started my internship program at E-Zone HRM Limited is
a management consulting group providing one – step solutions to clients. E-Zone HRM Limited
has a formal agreement with one of the united nation’s agency to provide outsourcing services
under a third party contract. I worked in their HR department as an intern and based on my
learning outcomes, I prepared this report. I have finished my internship report on “Role of
Human Resource Management System in Modern Organizations” under the supervision of Dr.
Md. Miraj Hossen Associate professor Department of Management Studies Jagannath
University, Dhaka. He suggested me time to time how to finalize the report.

2
1.2 Objectives of the Report:

• To identify the Major Functions of E-Zone HR Limited.

• To find out different methods of training & development.
• To evaluate the recruitment policy of E-Zone HR Limited.
• To analyze the compensation & benefits policy of E-Zone HR Limited.

1.3 Scope of the Study:

This paper will give a pure idea about the “Role of Human Resource Management System in
Modern Organizations” and effectiveness of the policies and procedures of HR in the company.
It will provide us a general view of Theoretical concepts and literature review, Major Functions
of modern HRM, Role Modern HRMS make challenging HR functions easy.

1.4 Methodology:

Methodology means how this research has been done, what is basis of the information. To
complete this report, I have collected two types of data:

Primary data:
In this stage, I have done several interviews with the employees of E-Zone HRM Limited to have
accurate and authentic information.
Secondary data:
To get secondary data, I have gone through the staff policy of E-Zone HRM Limited, books,
articles and internet and my knowledge which I have learned during my study of MBA.

1.5 Limitations:

It was not that much easy task for me to get all the related information as this is a consulting
group and they have many code of conduct about the disclosure issue of any documents. I had to
convince them I will not disclose any such information which will go against company’s
procedure.

3
 Chapter: 2

Theoretical concepts and literature review

The purpose of this paper is to present a literature review which describes the evolution of HR
from its inception as the personnel administration utility of the company to its current HRD role
as a partner that helps to develop employees as strategic assets and grow firms into dynamic,
high-performance organizations. The discussion that follows will highlight the current literature
which provides a description of how this evolution has occurred over time, as well as how it
mirrors the overall progression of the organizational paradigm from traditional to developmental.
Next, critical issues with respect to the current state of HRD will be addressed, further
illuminating both the current facts and details as well as the future areas of interest surrounding
this topic. This paper will then conclude with a summary examination of the literature regarding
how HRD can be leveraged by the modern high-performance organization to meet the strategic
challenges of the current competitive business landscape.

2.1 Human Resources concept:

Human Resource Management (HRM) is concerned with the human beings in an organization. It
reflected a new philosophy, a new outlook, approach, strategy, which views an organization’s
manpower as its resources and assets, and not as liabilities or mere hands.

Resources are the means which can be drawn on. They are collective means for production,
support and defense, as well as a source of strength and aid. Human Resources are wealth or
means that can be drawn on. Human capital and manpower of the company can be treated as its
human resources. It can otherwise be understood as the resourcefulness of the human beings or
people available for an organization.

In generic terms Human resource can be define as the total knowledge, skills, creative abilities,
talent and aptitudes of an organization’s workforce, as well as the values, attitudes, approaches
and beliefs of the individuals involved in the affairs of the organization. It is the sum total or
aggregate of inherent abilities, acquired knowledge’s and skills represented by the talents and
aptitudes of the employed persons in an organization.

Human resources approaches takes into consideration the potentiality and vitality of the people
available for the organization. Even in the age of the as of today, manpower is the most essential
and indispensable resources of any organization. Resourcefulness of various categories of people
say: managers, scientific and research people, executives, supervisors, workers (skilled,
unskilled) and all such people available for the organization to be drawn on, can be treated as
human resources. In fact, without appreciate human resources, no business or organization can
exit and grow. This is the perhaps, the reason why human resources management has become the
focus of attention of progressive organization of today.

4
2.2 Definition or Meaning of Human Resource Management (HRM):

Different terms are used to denote human resource management. They are: labour management,
labour administration, labour management relationship, employee-employer relations, industrial
relations, personnel administration, personnel management, human capital management, human
asset management, human resource management and the like. In simple sense, human resource
management means employing people, developing their resources, utilizing, maintaining and
compensating their services in tune with the job and organizational requirement.

Wendell French describes Human Resource Management as “The philosophy, policies,

procedures and practices, related to the management of people within the organization.”

According to Decenzo and Robbins,”Human Resource Management is concerned with the

people dimensions in management. It is the process of the acquisition development,
motivation and maintenance if human resources.”

Staffing:

Staffing or acquisition of Human Resources is an additional bustle of Human Resource

Management, Staffing determine the reimbursement of an organization’s Human Resources.

Staffing activity includes:

 Attracting qualified people to the organization.

 Selecting from in the midst of candidates.
 Reassigning employees through transfer.
 Promotion or relegation and ultimately managing the employees division through
resignation.
 Discharge or retirement.

Training and Development:

This activity of Human Resource Management focuses on improving the performance of

individual and groups within the organization. These activities aim to help employees gain
knowledge of new dexterity and purify existing skills. Human Resource Management must
decide which skill or knowledge areas require development and which methods are most
effective for serving employees get hold of skills and knowledge.

Performance Appraisal and review:

Performance appraisal and review is an ongoing evaluation of individual and group contributions
to the organizations and the communication of the evaluations to the communication of the
evaluation to the persons involved.

5
The Human Resource Managements function is carried out for a number of purposes:

 To provide feedback about performance, to determine the need or training.

 To make decision about promotions, pay increased and so on.

Compensation and reward:

Organizations reimburse employees through wages and salaries, bonuses and benefits, such as
health insurance, vacation instance and pension programmers. The charisma and dearth of
plunder and appreciation is essential to employee moral and performance. This is looked
subsequent to Human Resource Management.

Managing Effective Employee Employer Relationship:

An important function of Human Resource Management is to promote harmonious relationship

between the management and employees. The aim of Human Resource Management is to
increase in the companies affairs.

The functions of Human Resource Management include addressing employee grievances and
talking suitable steps towards solving them.

Health and Safety Management:

The function of Human Resource Management includes activities and events that serve to protect
organization members from illness and physical dangers in the workplace and to assist them with
their physical and emotional health.

For many organization protecting the health and safety of Human Resource is a prime social
responsibility. This Human Resource Management serves to preserve the Human Resource of the
organization.

Employee Participation:

This is relatively new unction Human Resource employee participation focuses on giving
employees a voice, sharing information with them and consulting them on matters of mutual
interest Employee’s participation is an important step in establishing industrial democracy.

Organizational improvement:

Organization must constantly improve themselves due to the emergence of new ideas regarding
productivity, rapid changing technology and competition from other organizations. The function
of Human Resource Management is to ensure the flow of event through which people in the
organization improve the organization’s effectiveness. He has to constantly look out for way to
improve the organization through employee training implementing work redesign programs and
so on.

6
2.3 Objectives of Human Resource Management:
HRM makes to organizational effectiveness include the following:

• Helping the organization reach its goal.

• Staffing the skills and capacity of the staff effectively.
• Providing the organization with well skilled and well-motivated workforces.
• Improving to the completest the employee’s job fulfilment and self-actualization.
• Communicating HRM policies and procedures to all employees.
• Helping to manage ethical policies and social responsibility.
• Handling change to the manual advantage of individuals, groups, the enterprises and the
public.

2.4 Individual Development:

Within HRD, individual development refers to the learning of new knowledge and skills to
improve performance relevant to one’s job (Gilley et. al, 2002). This type of development is
classified as more short-term in its effect, and more focused on the work behaviors of a single
worker as opposed to the collective or organization overall. Individual development can occur in
a formal setting as well as during on-the-job learning and training activities (Gilley et al, 2002).
In a HPO, individual development from an HRD perspective is foundational to strategic
organizational success. Training and development at the individual level is needed for an
organization to be able to adapt to a changing business environment, which is a definitional
requirement for a HPO. HRD professionals serve many roles within the firm, one of which being
that of a “change agent” (Vosburgh, 2007, p.14). In this regard, HRD facilitates the transfer of
individual knowledge and job-related learning to individuals in order to help them adapt to the
changing operational landscape. This thereby supports the firm in developing into a HPO.

2.5 Career Development:

Career development is a more long-term approach to the individual growth of employees of the
organization. It focuses on exploring and analyzing employee interests and aptitudes to align and
grow these skills for the mutual benefit of the individual and the firm. Further, it involves the HR
structures of mentoring and resourcing job and position growth and expansion within the firm to
achieve long-term individual employee sustainment and progression (Gilley et al, 2002).
Career development affects the HPO in several ways. This concept requires the strategic
alignment of management and HRD structures to grow individual employees into positions to
sustain focus on long-term objectives. Career development also influences the definition of the
firm’s core capabilities, as those whose career progression aligns to these capabilities will find
greater opportunities for progression within the HPO. HRD plays a significant role in the career
progression of employees of the HPO by establishing pathways for the long-term advancement
of individuals within the firm and providing guidance and counsel as individual workers progress
in their careers. These actions have direct influence on the success of the firm as a HPO and add
strategic value to the firm’s operational plan.

7
2.6 Performance Management:

Performance management is a system of processes designed to enact short-term organizational

efforts to improve the performance of the firm (Gilley et al, 2002). These processes examine,
analyze, and track all of the information within the firm related to both individual and
organizational performance: performance appraisal metrics, work environment data, and job
knowledge inventories among many others. The goal of this analysis is to develop short-term
solutions to performance issues and quickly enhance the effectiveness of the organization
overall.
The role of HRD with respect to performance management in a HPO is to guide individuals and
the firm overall to greater success through a focus on short-term results that align to the
company’s core capabilities. Performance management emphasizes smaller, more tactical
changes in organizational activity to improve business outcomes. This type of tactical change is
another function of the change manager within the HRD paradigm (Vosburgh, 2007). In this
way, HRD can provide strategic value to the firm by ensuring that performance management
initiatives support the core capabilities of the firm and will thereby lead to business success.

2.7 Organizational Development:

This last aspect of HRD is where the concept of the HPO and the concept of developmental
organization (Gilley and Maycunich, 2000) come full-circle and realign in terms of a holistic
approach to managing employees to affect organizational change. The goal of organizational
development in the HRD model is to design new, long-term solutions to problems and
shortcomings within the firm (Gilley et all, 2002). These solutions affect the organization at the
highest levels, which has a direct strategic impact on the firm’s success.
HRD provides perhaps the greatest influence to the firm with regards to the process of true
organizational change. With an understanding that employees are, in fact, the main asset of the
firm, HRD as an inter-disciplinary enabler within the organization is uniquely qualified and
positioned to guide employee development to enhance organizational performance and institute
organizational change. HRD fills many roles within the firm, including change agent (as
mentioned earlier), but also administrative and employee relations expert, as well as strategic
partner (Vosburgh, 2007). Through the fulfillment of these many roles, HRD can affect the
organization in every manner necessary to shape it into a truly high-performing organization:
helping employees adapt to change for long-term success, improving employee knowledge for
enhancement of core capabilities, and helping align management and performance objectives.
This makes HRD perhaps the most influential discipline in the firm with respect to executing
strategic change and performing organizational development.
The conceptualization of HRD as an aspect of affecting organizational change is part of the
strategic value this idea brings to the high-performance workplace. Zhang, Fan, and Zhu (2014)
defined these high-performance practices as a HPWS, dedicated to creating a competitive
advantage for the firm. The HPWS is just one example of an application of HRD being utilized
to develop a change in the organization’s workforce and develop employees into strategic assets
of the firm. These assets, which are unique and specialized to the organization help to achieve
the firm’s strategic goals, thereby maximizing the competitive advantage of the firm (Po-Chien
and Shyh-Jer, 2011) and thereby leading to greater business success.

8
 Chapter: 3

Major Functions of modern HRM

HRM in people centric industry is concerned with the ‘people’ dimensions of the organization.
In order to achieve the objectives as stated above, HRM must perform certain functions.
Generally, it is said that to achieve the organizational objectives, retailers must set up a proper
correlation between the objectives and the functions. Usually a particular set of functions helps
realize specific objectives.

For example, personal objectives are thought to be realized through training & development,
performance management and compensation & benefits functions, while on the other hand,
organizational objectives are achieved through human resource planning, employees’ relations,
recruitment, selection, training, compensation and managerial relations functions as discussed in
figure.

Following are the common human resource functions, any typical retail organization will
be having:

 Job analysis and job design

 Recruitment and selection of retail employees
 Employees’ training and development
 Performance management
 Compensation and benefits
 Labor relations
 Managerial relations

These seven human resource areas and their associated functions share the common objectives of
an adequate number of competent employees with the abilities, experience, knowledge and skills
required for fulfilling organizational goals. Though a human resource function can be assigned to
one of the seven areas of human responsibility, some functions serve a variety of objectives. For
example, performance management besides motivating the retail employees leads to employees’
development as well as compensation and benefits. Similarly, compensation and benefits
function facilitates retention, training and development and also serves to have cordial labor and
managerial relations.

9
3.1 Job analysis and job design:

Job analysis is the process of describing the operations, duties and responsibilities of the job. In
order to recruit retail employees on a scientific and rational basis, it becomes necessary to
determine in advance a standard of personnel with which interested candidate can be compared.
This standard must establish the minimum acceptable qualities necessary for the accomplishment
of tasks by retail employees.

Simple stated, the process through which these qualitative requirements (standards) are
determined is known as Job analysis.

Various experts have defined Job Analysis as under:

In the words of Edwin B. Flippo, “Job analysis is the process of studying and collecting
information relating to the operations and responsibilities of a specific job”.

In the words of John A. Shbim, “Job analysis is the methodical compilation and study of work
data in order to define and characterize each occupation, in such a manner as to distinguish it
from all others”.

According to Michael J. Jucius, “Job analysis refers to the process of studying the operations,
duties and organizational aspects of jobs in order to derive specifications, or as they are called by
some job descriptions”.

According to Scott Clothier and Spriegal, “Job analysis is the process of critically evaluating the
operations, duties and responsibilities of a specific job”.

Job Analysis Process:

The process provides information about what the job involves and what human features are
essential to carry out these activities. This information becomes vital to decide what sort of
people to recruit and hire. The data derived from job analysis process is beneficial for estimating
the value and appropriate compensation for each job.

The reason behind this is the belief and practice that compensation generally depends on the
job’s required skill and education level, safety hazards, degree of responsibility, and so on all
these factors that are assessed through job analysis. This ultimately provides the base for
determining the relative worth of each job so that each job should be properly classified.

10
Hence, job analysis is a data collection function performed by the HR department that
includes the following steps:

The above mentioned steps are discussed as under:

(i) Collection of factual materials:

The first step of job analysis process includes collecting factual information relating to the job.

This task is usually accomplished in four ways:

 With the help of structured questionnaire
 Using narrative descriptions
 Observations, and
 By interviews

Two types of information are collected through above mentioned four techniques:
(a) Belonging to the job environment, i.e. its physical environment such as use of computers,
sitting arrangements, comforts, lighting, restrictions etc. its financial obligations (salary, bonus,
commission, DA, TA, fringe benefits, incentive schemes etc) its social environment (whether job
is individual or in groups, shifts, working hours, team work).

(b) Belonging to employees’ qualities

It includes following qualities of employees performing retail tasks:

I. Physical demands: number of working hours, store job/field job, physical (muscular
energy).
II. Intellectual demands: degree, diploma, working experience, fresher, problem solving
ability.

11
III. Personality demands: look, height, spoken language, humbleness, ability to listen,
working under stress, employees’ complaint handling.

(ii) Completing job description blank:

After collecting the information, job analysis puts such information in a standard job description
form as a comprehensive draft which shows full details of the activities of the retailing job. As
per the nature and format of the retail organization, separate forms may be used for various
activities in the job and may be compiled later on. In actual, the whole task of job analysis
depends upon these forms, which are regularly consulted as reference guide for the future
planning tasks.

(iii) Preparation of the job specifications:

Job specifications are also prepared on the basis of information collected through data collecting
techniques. Job description basically refers to a statement of minimum acceptable qualities of a
candidate whose selection should be made.

(iv) Preparation of Report:

This report indicates various activities to be performed by the retail staff and expectations from
them. It is prepared by the job analyst on the basis of information collected. The report is then
submitted to the HR department for its suggestions and amendments.

(v) Approval:

The report submitted by the analyst and reviewed by the HR department may now be revised by
the top executives for:

 Competitive policies
 Comments of HR department (if any)
 Views of Trade Unions (if applicable)
 Mission and vision of the organization

In some organizations, such drafts are usually approved by the HR manager while in some
organizations by the top executive, who has the ultimate responsibility to finalize it.

Note:
In actual, it is the prime duty of the retail store manager to prepare the job design since he/she is
responsible for conducting day-to-day activities of the store and also the reason for retail success.
But it has been seen that in most of the cases, job design is drafted by the HR department may be
in consultation with the store manager.

3.2 Recruitment and selection of retail employees:

12
The success of a retail organization largely depends upon the team of efficient store employees
who are chosen out of a number of applicants for the job. Recruitment is a very first step in the
employment process, which aim at obtaining and maintaining an efficient store staff (floor
employees) as a means of achieving sales targets.

Recruiting employees basically involves three major sub-functions:

 Recruitment,
 Selection, and
 Placement on the job.

Recruitment defined:

According to Edwin Flippo, “Recruitment is the process of searching for prospective employees
and stimulating them to apply for the jobs in the organization”.

According to Werther and K. Davis, “Recruitment is the process of finding and attracting
capable applicants for employment. The process begins when new recruits are sought and ends
when their applications are submitted. The result is a pool of applicants from which new
employees are selected”.

Theoretically, recruitment is the positive process of employment aiming at searching for the
prospective employee and inspiring them to apply for jobs in the organization. In short, it
increases the number of applicants and number of posts vacant and thus provides an opportunity
to the management to select the suitable person.

Selection defined:

Selection is the process by which qualified and suitable store employees are selected and placed
on the jobs according to their capabilities and organization’s requirements. Thus, it is a tool in
the hands of the management to differentiate the suitable and unsuitable applicants by applying
various techniques such as group discussions, personal interviews, game tests etc.

According to Thomas stone, “Selection is the process of differentiating between applicants in

order to identify those with a greater likelihood of success in the job”.

According to Dale Yolder, “Selection is the process in which candidates for employment are
divided into two classes, those who are to be offered employment and those who are not”.

Selection procedure employed in large retailing concerns:

Selection is a long process beginning with receipt of applicants and ending with the final
placement. The selection process varies from organization to organization and also between two
different positions.

13
For example, in a retail company, when they are looking for entry level sales personnel, they
tend to reply on educational institutions, advertisements and employee recommendations.
Moreover, when a retail company is looking for middle-management positions, they are likely to
use employment agencies, competitors, advertisements and current employees. The recruitment
process can be very costly. It takes a great deal of time to set up an effective recruitment process.

Therefore, the company has to carry this job out in a systematic way. For instance, selection
procedure for store accountants, store supervisors, store managers will be long drawn and
rigorous as compared to those applicants who apply for floor staff position. The various steps in
the selection of desirable employee in the organization should be decided by the top
management.

Note: The applicants are screened out at each step of selection process and those who are found
suitable and fit for the job, ultimately are selected. At any stage, any unfavorable criteria like
unfavorable test scores or physically unfit will simply lead to rejection of employees.

Following are the commonly used steps involved in the selection of retail employees:

3.3 Training and development:

After selecting the most suitable and eligible candidates in the organization, the next step of HR
department are to arrange for their training. All types of jobs require some type of training for
their efficient performance and therefore, all employees, new or old should be trained or re-
trained from time to time.

14
Further, the way new and new retail formats are emerging, new developments are taking place
throughout the globe, it becomes imperative for any retail organization to systematically plan for
the training program aiming at increasing the knowledge, skills, abilities and aptitude of
employees to perform the new competitive tasks.

3.4 Performance Management:

After selected, training and motivation, the next task, a HR manager has to perform is to evaluate
the personality and performance of each employee by quantitative factors (such as targets
achieved). In actual, with the help of performance management, the management through HR
department would like to find out how effective it has been hiring and placing employees.
Performance management allows retailers gain access to the reliable, timely information that
drives better decisions.

The term ‘performance management’ and ‘performance appraisal’ are used synonymously by
few authors and subject experts. But the retailers throughout the globe believe that performance
management is a broader term that may include performance appraisal too.

A typical performance management system involves following actions:

(i) To develop job descriptions clearly.

(ii) Selecting right employees at right jobs with right selection process.
(iii) To negotiate requirements and accomplishment based performance standards,
outcomes and measures as and when required.
(iv) To provide appropriate training, education and induction.
(v) To facilitate ongoing coaching and feedback.
(vi) To conduct quarterly/half yearly performance development discussions.
(vii) To design appropriate compensation and appraisal system that rewards employees for
their outstanding contributions.
(viii) To provide career development opportunities for employees.
(ix) To assist with exit interviews to understand why loyal employees leave the
organization.

3.5 Compensation and Benefits:

Compensation and benefits represent a substantial part of total cost in most of the organizations.
Compensation is not only the concern of the organization but is equally important for the
workers and employees to maintain their social image.The main objective of such compensation
and benefits are to control the costs, to establish a fair and equitable remuneration to all, to
utilize the compensation and benefits device as an incentive for greater employee productivity
and to establish a satisfactory public image.Hence, it becomes imperative for the HR department
of any retail business to have clear-cut policy guidelines regarding employees’ compensation and
various benefits. For effective implementation of compensation plans, HR department should be
aware about the benefits given to the employees in similar kind of organizations. The attitude of
the employees towards his employer will usually be determined by the extent to which he/she is
satisfied with the wages he/she is getting, though it is not the only reason for employee
satisfaction. Even motivation comes after an employee is satisfied with his/her basic

15
compensation. It is also the best way to satisfy the employee at the lower and middle level of
management.

3.6 Labor Relations:

In modern days, retailing is carried on a large scale where hundreds of employees work together.
The HR manager is basically responsible for the control of labor (workers and employees)
through human relation approaches. Employees differ in nature and therefore, it is but natural
that due to any communication gap, labor relations may spoil within the organization. Therefore,
the HR department should know the proper policies, rules and regulations with regard to labor
relations.

Harmonial relationships are necessary for both retailers and employees. It not only results in
industrial peace but also leads to better and higher sales targets. Most of the retail organizations
these days besides having HR department also take the services of legal experts (practitioners)
for consultation from time to time. Further, hiring legal experts within the organization has
become necessary considering that each state has its different set of rules for managing HR with
some standard rules.

3.7 Managerial Relations:

 The employment relationship, irrespective of nature of organization, usually has two

parts: labour relations and managerial relations. The former which covers the price of
labour is more obvious. The labour relation is also known as ‘market relations’. The
managerial relations on the other side are the relationships that define how the process
takes place.
 Labour relations describe the price for a particular shift (a set of number of hours) but
managerial relations determine how much work is performed in that time, at what
specific task or tasks, who has the right to define the tasks and change a particular mix of
tasks and what penalties will be deployed for any failure to meet these obligations.

16
 Chapter: 4

HRMS make challenging HR functions easy

A human resource management system (HRSM) is an information technology system that
combines hardware and software to assist human resource staff in managing and processing
employee data. This information system allows human resource departments to more fully
analyze employee data and automate common human resource functions. A human resource
management system may also be referred to as a human resource information system, or a human
capital management system

17
4.1 Need for HR Software:
With the advent of artificial intelligence, the requirement of automation with fast data
availability has become a core requirement. Do we know, how fast is AI growing?
AI has seen huge growth in recent years. We can check the AI hypergrowth report to figure out
its rising potential.
AI is also playing a significant role in the growth of hr software for small businesses. Even
bigger size businesses are managing their entire human resources with automated software to
overcome challenges in managing and maintaining the workforce.

Some of the needs that HR Software are making it easy are:

 Easy reporting of Workflow.

 Data management.
 Compliance management.
 Employee Self-service.
 Employee engagement management.
Is it a feasible practice to keep asking employees to produce a hard copy of documents on a
regular interval? How will we manage so many documents?

18
This tedious issue is easily managed with HR software. If we are looking for subscribing to
HRMS software plans then we must check out top HR software for 2019. Let us have a detailed
study on these needs that are fulfilled by HRMS.

4.2 Easy Reporting of Workflow:

The human resource management system software is solution.
HR software provides the best predefined MIS Reports without any hustle. They are pre-built
and we don’t need to perform any setups. These reports can be like Absences, Assignment
Status, Current and Projected Progression tracking, Job and Position Skills Matching, Salary
Review and many other valuable inputs under a single framework.
We can modulate requirement from these reports using advanced filters and output explorer. This
helps an HR team to sync and observe the critical data that impact the business requirements.

4.3 Data Management in HRMS:

The best HR software for small business focuses on building a secure database. HR software
consists of an organization’s most sensitive data. These data need to be tracked and recorded for
keeping an eye on organizational workflow.
HRMS provide an easy solution for data management. Overcoming the demerits of conventional
data storing like paper records and spreadsheet management, HR software has provided a
revolution in workflow management with features like live tracking of data, Real-time report
generation from the available data. This real-time data availability and handling are important
because of the competitive workforce.

4.4 Statutory Compliance Management:

HR software comes with compliance management because of the dynamic legal framework in
any country. The HR team has to compliant with many employees’ related policies like
provident fund, minimum wages, and employee CTC, etc.
The new cloud-based HRMS keeps its algorithm updated with the legal laws to avoid any future
penalties towards the organization. This indirectly helps in managing the legal reputation of
businesses. According to a whitepaper published by Worktech shows that 2 out of 3 workplace-
related lawsuits that go to trial are won by the employees. The HRMS makes it quite easy for the
HR team to stay updated and therefore creates a healthy work culture in the organization.

4.5 Employee Self-service:

All the best HR software for small business as well as large businesses consider having
employee self-service feature because it creates personalize options for employees to see their
details.
Do we want to create trust in work culture? Employee self-service helps in creating that.

19
With this facility, an employee can keep a record of their activity like leave management,
download of payslips, keeping track of the tax liabilities, opting for exit and withdrawal of notice
periods and many other integrations. Such integrations in any human resource management
system software have great benefits because employees don’t have to approach to the HR team
for every reason. This also helps the HR team to find time for other productive planning that can
add value to the businesses so as to improve work culture.

4.6 Employee engagement management:

Engaging employees in a workforce is very crucial but important as it increases productivity and
work quality. Employee engagement is maintained with workforce management under a manager
with mentorship quality.
The cloud-based HR software also makes a healthy interface so that employee finds daily feeds
and updates to keep them engaged with the company’s workflow. Employees get engaged with
all updates relating to the company and find areas which they easily relate to their skills and
needs.
Other features like absence and attendance tracking and downloading of payslips also help in
creating an employee-friendly place.
4.7 HRMS Global Demands and trends:
HR software for small business has seen a sudden pull in its demand across the goal. Big
companies were already using the technology but we have seen a shift for this in startups and
small companies as well. Can we guess the possible reasons for this shift?
After a complete study and analysis, we found that companies prefer managing time over money.
They want more work with less human resources. The artificial intelligence and feedback system
is making HR software more trending application used by corporate sectors. Hence the human
resource management system software is the best switch to make.
Google trends clear the complete scenario. Let us have an insight.
Getting deeper into web searches with region wise, we found that India has the biggest demand
for HRMS.
With so much of demand making a market for human resource management system software,
there must be some great functions of an HRMS backing it. We can consider knowing more
about top trending HR software.

4.8 Functions that make a good HRMS:

HR in any organization is responsible to manage the team for better performance so that the
productivity can be improved. There are some important functions to be handled by HR so as to
align with company and legal policies. The HR team of small and medium businesses now prefer
using cloud-based HRMS because it reduces efforts and time. Some of the functions of HR
software are

 Workforce Management

20
  Work Hour Time Tracking
 Leave management systems
 Performance Tracking
 Payroll Processing
 Recruitment and onboarding
 Exit process management
 MIS Reports
 Employee information management.
 Document sharing.
They were some of the significant features that make a good HRMS. Let us discuss in detail
about all the features of an HR software.
Workforce Management
HR software help in planning the required workforce needed to meet the business requirement.
With workforce management function in HRMS, it becomes easier for the HR team to estimate
the right skills and manpower that can give a quality production for the project.
Work Hour Time Tracking
Time tracking function enables the organization to maintain a record of the contribution made by
an employee towards the project. It helps the concerned senior level management to keep an eye
on the utilization that an employee is using for giving their output. The time from login into the
system until the logout is evaluated along with the amount of break taken during the work hours.
Leave management systems
Employee attendance is very important because it helps them manage payroll processing. On a
daily basis, the attendance is recorded on an HRMS which helps the HR team evaluate the total
working days spent by employee. It is the most transparent feature of any best hr software for
small business as well as a big entity or firm. The LMS generate the reports with options of
advanced filtering that can be produced for higher-level management presentation for reporting
purposes.

Performance Tracking
For evaluating the employee performance, HRMS works smartly. The employee’s growth
evaluation highly depends on performance tracking. The conventional technique was very
difficult to manage and was error-prone with no real-time data tracking but with HRMS solutions
it became easier. Goal setting method used in performance tracking tool which enables the
managerial level to monitor the employee’s work and contribution.
Payroll Processing
The most critical function in any business is processing the payroll because an employee works
for pay apart from statutory compliance. We must set up the best hr department system to

21
manage payroll. Payroll processing handled by good HRMS is very intelligent solutions. All due
calculation from employer and employee ends are calculated in payroll processing so as to meet
all compliances. Information like salary credits, tax deductions shared with the employees comes
the ambit of HRMS payroll processing.
Recruitment and Onboarding
The HR software help in managing employee since recruitment itself. The applicant data is saved
in the database to match his skills with the current openings and remind him of opening. The
HRMS makes it easier for the HR team to find the right candidate and hire the best talent with hr
automation using hrms.
The hired candidate onboarding task starts from the HR software and he gets access to the
company’s directories and feeds. The human resource management system software feeds the
onboarding data and makes it available to be fetched by the concerned team.
Exit process management
When an employee takes an exit from any organization, it is a high priority task to initiate a
quick exit procedure. We must avoid getting the best talents making an exit and improve
employee retention. The access removal, full and final settlement and related formality handling
are performed with HRMS. With every exit, a new opening gets generated into the HR software.
MIS Reports
MIS Reports collectively gathers all the critical data in different report format. The HR team
shares the reports with the concerned team or client to help them plan their organizational
reporting processes.
Employee information management.
The HR software manages the employee details in its database. Some of this information can be

 Name, Joining date, DOB, Contact Info, email-id, Gender

 Previous employment details.
 Department allocation info, Location, Reporting Manager, etc.
 Payment & Statutory info like PF number, ESI number, Income Tax PAN, etc.
 Passport, VISA, etc.
All correct data get enlisted into the HRMS cloud and decisions are taken by management based
on these data.
These were some of the important functions of cloud-based HRMS solutions. They have made
the corporate workflow easier. These HR software not only helps in creating a better workflow
but also build trust and everlasting relations between the employer and the employee.
Document Sharing
It allows businesses to share documents and keep the workflows transparent. With document
sharing facility we get to see some of the following benefits.

22
  Better employee relationship management as team collaboration becomes easier over
a specific task.
 24/7 availability for business needs. We can share documents to anyone from
anywhere if we get the required authority to do that.
 Managing documents become easier.
 Saving confidential documents become quite secure as we can lock such documents
in cloud servers with high-security systems.
Document sharing is one of the core features that every HRMS have.
How to choose the best HRMS solution:
Human resource management system software can manage any number of employees in an
organization. While we select an HRMS for any organization, we need to have a Checklist for
choosing the Best HR Software. A few handfuls of questions to be answered before making a
buying decision. So what those questions we should be aware of before buying?

We will list down the best questions here to make decision process easy.
1. What are the requirements in handling the team? Example, the features that organization
will need in the HRMS?
2. What will be the total strength of the team to be managed?
3. What type of Software will be more suitable for the organization? A cloud-based or not.
4. What budget is suitable for subscribing to an HRMS or buying an in house pack?
5. What speed and performance are we expecting with the software? Is hardware ready to
match?
6. What kind of customer support is available with the software packages?
7. How many vendor’s trial offer should be shortlisted for purchase evaluation?

23
 8. How flexible is the HRMS package to meet future needs?
9. Is the software user-friendly?
10. What are the customer’s feedbacks for the vendors that match needs?
When we are evaluating the software, answer these questions because it will help us to find the
best out of many. We can save time by directly reading Top HR Software – 2019 Reviews &
Pricing.
A final verdict
HRMS Key features make it a good or bad Saas product. The rising demand in the best hr
software for small business and medium scale businesses is at a peak because companies are
moving towards automation. The HR software saves a lot of time for the team for other strategic
planning and hence more and more companies want to have their own HR solution software.
Find the best solution so that human resource related challenges vanishes.

Chapter: 5

Finding, Conclusion and Recommendation

5.1 Finding:

 Mostly all the Employees are well aware of the role and importance of the training They
are self-motivated to attend such training program as it will result in their skill
enhancement & improving their interpersonal skill.

24
  Corporate HR, time to time training is provided to all the Employees and it is continuous
process.
 Questionnaire is the most popular mean of evaluating the program.
 Reduces paperwork. An HRMS eliminates much of the paperwork associated with HR
operations.
 Most of the Employees feel that interview is the most appropriate method of evaluating
the training program.
 Post training evaluation focus on result rather than on the effort expended in conducting
the training and it worth the time, money and effort.
 Most of the participants are benefitted by giving feedback after attended the training. It
motivated them to do better, helped them to increase their job performance and is an aid
to future planning. Speeds up a creation of documents. An HRMS helps HR managers
keep all employee data in one place and create any document quickly based on this
information
 Post training evaluation is used to identify the effectiveness and valuation of training
program, to identify the ROI(return on investment), to identify the need of retraining and
to provide the points to improve the training.

5.2 Conclusion:

The human capital of an organization represents one of its largest investments. The objectives of
HRM include getting the organization right people, paying and treating them fairly, and getting
them involved in working productively. The attainment of these objectives necessitates the
performance of several functions. The main HRM systems are:

 Appraisal system
 Career system
 Training system
 Work system
 Culture system and
 Self-renewal system

All system and sub- systems of HRM must be incorporated in the organization while setting
the goal and objectives. This will also indicate the purpose and processes and make HRM
more meaningful. Human resources functions are many and varied and include such things as
human resources planning, recruitment, selecting, training and canceling employees,
compensation management, and employer-employee relations. In small organizations, most
human resource functions are performed by owners or operating managers. Large
organization usually have a human resource or personnel department that is responsible for
co-coordinating and directing the human resource functions. However, little systematic
information exist in the area of HRM polices and programmed that are generally followed in

25
 organizations to achieve their corporate goals and objectives. The General insurance
corporation recognizes that human resources are its most valuable assets. Successful human
resource management is essential to organizational growth and success. In the light of new
challenges, organization’s long-range planning and policy-making activities.

5.3 Recommendations:
Bases on the conclusions arrived at, the study therefore made the following
recommendations:

 Seasonal or periodic mandatory training should be given to workers by the management

in other to enable them climb the career ladder.
 The management of the organizations should think of the best methods of training. on-
the-job, off-the-job, computer simulation etc. that will suit both management and the
workers in an organization.
 Induction training should be given to all workers at the entry point by the management to
equip them for the task ahead of them.
 The management should do a proper training need analysis so that they can have a focus
and direction on the best way to train their workers.
 Proper motivation must be given to those on training in order to encourage them to
devote their time and talent towards achieving the aim of the organization.

References:

Peter F. Drucker, management: Task, Responsibities, Practice, William Heineman Ltd, London,
1973, p-308.

Likert R. The human organization, its management and value. Mcgraw Hill, New York,1967.

26
Achieving Excellence in Human Resources Management: An Assessment of Human Resource
Functions By Edward E. Lawler Iii; John W. Boudreau

How to Develop Essential HR Policies and Procedures By John H. McConnell AMACOM, 2005

http://www.opentextbooks.org.hk/system/files/export/32/32088/pdf/Human_Resource_Managem
ent_32088.pdf

https://www.academia.edu/31368081/E_BOOK_ON_HUMAN_RESOURCE_MANAGEMENT
_HRM_pdf

https://openaccess.leidenuniv.nl/bitstream/handle/1887/22381/ASC-075287668-3030-01.pdf

Website:

Date: 9.08.2020

https://en.wikipedia.org/wiki/Human_resource_management

Date: 15.08.2020

https://www.enotesmba.com/2014/11/functions-of-human-resource-management.html

Https://kissflow.com/hr-process/modern-hr-managers-role

Date: 22.08.2020

https://blog.newtontalent.com/5-ways-hr-can-foster-workplace-learning-culture

Date: 28.08.2020

https://www.tinypulse.com/blog/sk-what-is-hrs-role-in-the-organization

27