CHAPTER NO 1

HUMAN RESOURCE MANAGEMENT

 INTRODUCTION

Human Resource Management (HRM) is an operation in companies designed to maximize

employee performance in order to meet the employer's strategic goals and objectives. More
precisely, HRM focuses on management of people within companies, emphasizing on policies
and systems.

In short, HRM is the process of recruiting, selecting employees, providing proper orientation and
induction, imparting proper training and developing skills.HRM also includes like performance
appraisal, facilitating proper compensation and benefits, encouragement, maintaining proper
relations with labor and with trade unions, and taking care of employee safety, welfare and
health by complying with labor laws of the state or country concerned. Human Resource
Management was originally known as personnel or people management. In the past, its role was
quite limited. Within any company or organization, HRM is a formal way of managing people. It
is a fundamental part of any organization and its management. Human resource management
(HRM or HR) is the strategic approach to the effective and efficient management of people
in a company or organization such that they help their business gain a competitive
advantage. It is designed to maximize employee performance in service of an employer's
strategic objectives. Human Resource Management was originally known as personnel or people
management. In the past, its role was quite limited. Within any company or organization, HRM
is a formal way of managing people. It is a fundamental part of any organization and its
management.the main responsibilities of the personnel department include hiring, evaluating,
training, and compensation of employees. The human resources department deals with any issues
facing the staff in their working capacity within an organization. HR is concerned with specific
work practices and how they affect the organization’s performance.

Human resource management (HRM or HR) is the strategic approach to the effective and

efficient management of people in a company or organization such that they help their business
gain a competitive advantage It is designed to maximize employee performance in service of an
employer's strategic objectives. Human resource management is primarily concerned with the
management of people within organizations, focusing on policies and systems HR departments
are responsible.
foroverseeing employeebenefits design,employee recruitment, development performance
appraisal, and reward management such as managing pay and employee-benefits systems. HR
also concerns itself with change and industrial relations, or the balancing of organizational
practices with requirements arising from collective bargaining and governmental laws.
The overall purpose of human resource (HR) is to ensure that the organization is able to achieve
success through people. HR professionals manage the human capital of an organization and
focus on implementing policies and processes. They can specialize in finding, recruiting,
selecting, training, and developing employees, as well as maintaining employee relations or
benefits. Training and development professionals ensure that employees are trained and have
continuous development. This is done through training programs, performance evaluations, and
reward programs. Employee relations deals with the concerns of employees when policies are
broken, such as cases involving harassment or discrimination. Managing employee benefits
includes developing compensation structures, parental leave programs, discounts, and other
benefits for employees. On the other side of the field are HR generalists or business partner
These HR professionals could work in all areas or be labour relations representatives working
with  unionised employees.
HR is a product of the human relations movement of the early 20th Century, when researchers
began documenting ways of creating business value through the strategic management of the
workforce. It was initially dominated by transactional work, such as payroll
and benefits administration, but due to globalization, company consolidation, technological
advances, and further research, HR as of 2015 focuses on strategic initiatives like merger and
acquisition, talent management succession planning, industrial and labour, and diversity
and inclusion. In the current global work environment, most companies focus on
lowering employee turnover and on retaining the talent and knowledge held by their
workforce New hiring not only entails a high cost but also increases the risk of a new employee
not being able to adequately replace the position of the previous employee. HR departments
strive to offer benefits that will appeal to workers, thus reducing the risk of losing employee
commitment and psychological ownership.
 Meaning of Human resource management

Human resource management means “Employing people , developing their resource utilizing ,
maintaining and compensating their services in tune with the job and organizational requirements
with a view to contribute to the goals of the organisation individual and the society .”

“HRM is the practice of recruitment hiring , deploying and managing and organization
employees HRM is often referred to simply Human resource the Hr department of an
organization is normally in change of developing implementing and managing hr policies that
workers and ensure to following policies and procedures and the organisation interaction with its
employees hrm is concerned with all issues relating to hiring, compensation performance
management , organizational devlopment and training the employee HRM defines a strategic
approach to managing people as well as the work culture and environment .HRM is the strategic
approach to the effective and efficient management of people in a company or organisation such
that they help their business gain a competitive advantage, it is designed to maximize employee
performance is service of an employee strategic objectives HRM is a process which consists of
mainly fours activities i.e acquisition, development, motivation, and maintenance of human
resource.hrm is that phase of management which deals with effective procurement and utilisation
of manpower or human resource .Human resource management is the process of planning ,
organizing, directing, and controlling of human resource in such way that the organisational
goals achieve effectively .”
 Definitions of Human resource management

1)Human resource management as planning , organizing, directing , controlling of procurement ,

development compensation , integration , maintenance and seperation of human resource to the
end that individual organizational and social objective are achieved.

2)Human resource management as that part of management which is concerned with people at
work and with their relationship within an enterprise .

3)Human resource management is concerned with the people dimensions in management since
every organisation is made up of people, acquiring their services , developing their skills ,
motivating them to higher levels of performance and ensuring that they continue to maintain
their commitment to the organisation is essential to achieve organizational objective this is true
regardless of the type of organization government business , education , health or social action.

4)Human Resource management is the systematic process of managing people working in the
organization .

5) Human Resource Management involves all management decisions is and practices that
directly affect the people who work for the organization.

6) Human resource management is the development and implementation of system in an

organization for attracting , developing and retaining a high performing workforce .

7)Human resource management is the set of organizational activities directied at attracting ,

developing and maintaining and effective workforce .

8) resource management is the integrated use of system use of policies and management
practices to support the organization to meet it desired goal through recruitment, maintaining
and development of employees.
 Importance of Human resource management

1)Management of strategy

The crucial aspect is the importance of human resource management in any organization. HR
managers manage strategies to ensure that the company meets its objectives. It also helps to
contribute to the corporate decision-making process. It includes employee evaluations and
predictions based on business needs.

2)Development and training

HR managers play an important role in strengthening employer-employee relationships. They

contribute significantly to training and development programs. This is necessary for the
importance of human resource management. It helps employees to develop within the company.
It also improves employee satisfaction and productivity.

3)Interaction among employees

HR managers are in charge of organizing activities, events, and celebrations in the company. It
provides opportunities for team building. Furthermore, it increases employee interaction and
fosters a sense of trust and respect among peers.

4)Analyze the advantages

HR managers strive to cut costs wherever possible in recruitment and retention. HR professionals
are well-versed in employee benefits. They are likely to attract quality candidates and keep
existing employees. They also conduct efficient negotiations with potential and existing
employees.

5)Keeping Liability Problems to a Minimum

When it comes to claims of unfair labor practices, HR employee relations specialists reduce its
liability. They comprehend, investigate, and resolve workplace issues that, if not addressed. It
could continuously become worse by putting the company in violation of federal. And state anti-
discrimination and harassment laws. This is crucial for the importance of Human Resource
Management.
6)Salaries and wages

Human Resource benefit experts create realistic payment structures. They conduct in-depth wage
and salary surveys. It makes company wages competitive with those in the neighborhood. It is
also for the same industry or competing for employees with similar skills. People need to ensure
the payment costs align with the organization’s current financial situation and projected revenue.

7)Resolving conflicts

HR is the department to contact if there is a professional conflict between employees. They

ensure that issues and disputes are resolved by approaching the problem objectively. It also helps
in encouraging effective communication to arrive at a solution. Additionally, they assist
employees in comprehending various methods for developing practical work. It creates
relationships and not allowing personal judgment to influence their actions.

8)Maintaining a positive work environment

A positive work environment is essential for bringing out the best in employees. HRM plays a
vital role in establishing a healthy and friendly work environment. It guides to enhanced
employee productivity and also needs for the importance of Human Resource Management.
 Role of Human resource management

Human Resources Management plays the most crucial role in the management of an
organisation. The role of HRM is to plan, develop and administer policies and programs
designed to make optimum utilization of the organization‘s human resources. It is that part of
management which is concerned with the people at work and their relationship within
enterprises. According to R.L Mathis and J. H. Jackson (2010) several roles can be fulfilled by
HR management. the nature and extent of these roles depend on both what upper management
wants HR management to do and what competencies the HR staff have demonstrated. Three
roles are typically identified for HR

 Administrative

 Operational

 Strategic HR

1. Administrative Role of HR: The administrative role of HR management is concerned with

the administration and record keeping including essential legal paperwork and policy
implementation. Earlier it was a tedious job but with the advancement of technology the record
keeping is becoming easy and huge data can be easily stored.

2. Operational Role: HR managers manage most HR activities in concern with the strategies
and operations that have been determined by management and serves as employee ―champion‖
for employee issues and concerns.HR generally has been viewed as the ―employee advocate‖ in
organizations. As they act as thevoice for employee in front of the management specifying
employees issues and concerns, and spend considerable time on HR ―crisis management,‖
dealing with employee problems that are both work-related and non work-related.Employee
advocacy helps to ensure fair and equitable treatment.The operational role requires HR
professionals to co-operate with various departmental and operating managers and supervisors in
order to identify and implement needed programs and policies in the organization.

3. Strategic Role of HR:-

The administrative role traditionally was the major or prominent role of HR. But with the
changing scenario, a broader transformation
in HR is needed so that significantly less HR time and fewer HR staffs are used just for
clerical work.Differences between the operational and strategic roles exist in a number of
HR areas. The strategic HR role means that HR professionals are required to be more
proactive in taking care of business realities and focusing on future business needs, such as
strategic planning, compensation strategies, the performance of HR and measuring its
results. However, in some organizations, HR often does not play a key role in formulating
the strategies for the organization as a whole; instead it merely carries them out through
HR activities.
Many executives, managers, and HR professionals today are increasingly seeing the need
for HR management to become a greater strategic contributor towards the business success
of organizations. HR should be responsible for knowing what the true cost of human
capital is for an employer. Today it is expected that the HR should get involve in
formulating strategies for the organization besides implementing the strategies.
Today the role of HR is shifted from a facilitator to a functional peer with competencies in
other functions and is acknowledged as an equal partner by others. The department has the
responsibility for monitoring employee satisfaction, since it is consider as a substitute to
customer satisfaction.
 Functions of Human resource management

1) Managerial Function:- 1. Managerial Functions: It includes Planning,

Organising, Staffing, Directing and controlling .

A)Planning: Planning is to plan for future or predetermine the course of

actions to be taken in future. It is a process of identifying the organisational
goals and formulation of policies and programmes for achieving those goals.

B)Organising: Organising is a process by which the structure and allocation of jobs are
determined. Thus organising involves giving each employee a specific task establishing
departments, delegating authority to subordinates,establishing channels of authority and
communication, coordinating the work of subordinates, and so on.

C)Staffing: This is a process by which managers select, train, promote and remove their
employees This involves deciding what type of people should be hired, recruiting,
selecting employees, setting the performance standard, compensation of employees,
evaluation of performance of employees, counseling employees, training and developing
employees.

D) Directing/Leading: Directing is the process of initiating or activating group .efforts

to achieve the desired organizational goals, which includes activities like getting
subordinates to get the job done, maintaining their morale, motivating subordinates etc,
for achieving the organizational goals.
 E) Controlling: It is the process of setting the standards for performance, measuring the
actual performance of the employees and then comparing the actual performance with the
standards and there by taking corrective actions as needed.

Responsibilities of Human resource management

1) Human Resource Planning:-

HR managers are responsible for planning and achieving organizational objectives. They usually
engage in identifying, preparing, and executing business goals with top-level executives. This
proactive participation in planning enables HR managers to gain a thorough understanding of the
activities required to support the sustainable growth of the company. This, in turn, empowers
HRs to assign the right resources to the right project and ensures timely delivery. 

2.)Job Analysis and Design:-

As mentioned above, human resource planning requires assigning the right resources to the right
project. And if the right person is not in the organization, HR managers are responsible for
designing the job analysis to hire them.

3) Hiring Candidates:-
Finding and hiring the right talent is a very complex process. Modern HR managers do more
than just post job requirements in portals to fill open positions. They develop strategic solutions
to attract the right candidates to fulfill the demands of the business. An HR manager might also
be responsible for a company’s employer brand reputation or at minimum, guiding the
branding. Employee branding is a critical part of communicating a company’s culture and work-
life balance to potential employees. As more and more candidates search for open positions via
social media, managing employer brand is likely going to overlap with an HR manager’s job
duties. From screening potential candidates on job portals and social platforms like LinkedIn to
interviewing them, HR managers have to follow an organized approach for hiring the best
suitable employee for the organization. Once an applicant is selected, HR managers design offer
letter documents, scan to the e-mail can to the candidate and onboarding procedures. In case, a
candidate backs out at the last moment, HR managers are bound to convince them to join the
organization. If they still insist not to, HR managers need to repeat the hiring process to fill open
positions.

4. Training and Development:-

Hiring the best candidates is just half the job. HR managers need to train and upskill them to
maximize their return on investment. The type of training and development new employees
require depends on their experience. For example, if they are freshers, managers might neeed
arrange for skill-development training programs to ensure their work meets the industry
standards.However, if the recruits already have a few years of experience, managers might only
need to train them about company policies. 

5) Design Workplace Policies:-

It is essential for HR managers to design workplace policies to reduce conflicts and legal issues,
and improve employee productivity These policies are designed in a way that protects the
interests of both the employees and employers alike.

6) Monitor Performance:-
Closely related to training, general HR roles and responsibilities include examining employee
performance records to identify the scopes of improvement and arranging training workshops to
upskill them. 93% of employees say professional growth is a priority. By providing employees
with a chance to learn something new and grow professionally, you can create a positive
environment and boost employee loyalty. 

7) Maintaining Work Culture:-

HR roles & responsibilities shape and maintain organizational culture. It is essential to create a
positive impression of the company from day one, so the new employees know what to
expect. Besides, a person’s performance depends largely on the environment he is working in.
Therefore, you need to in still a certain level of comfort to eliminate any stressful atmosphere
that might affect employee performance.
8) Resolve Conflict:-
In every organization, employees come from diverse backgrounds. And when people with
opposite opinions meet, the chances of having a conflict rise significantly. Whether the issue is
between two employees or an employee and the management, it’s the HR manager who has to
intervene and resolve it. Besides, the HR manager must listen to both parties without being
biased or judgemental. They also need to go to the root of the matter, which includes questioning
other employees Depending on the type of conflict, HR managers also hold the right to fire an
employee. However, this situation usually arises in cases of harassment in the office.

9. Ensure Health and Safety of Employee:-

Employees are the asset of the organization. Unless they are safe and healthy, they won’t be able
to give their best to the company. Thus, HR managers need to ensure the health and safety of
employees.