MODULE -1

INTRODUCTION TO HRM

MEANING OF HUMAN RESOURCE MANAGEMENT

Human resource management refers to the planning, organizing and implementing of

productive activities within an organization that focuses on translating human being into useful
resources.

Human resource management is the process of acquiring, training, appraising and

compensating employees, and of attending to their labour relations, health and safety, and
fairness concerns.

HUMAN RESOURCE MANAGEMENT refers to the planning, organizing and

implementing of productive activities within an organization that focuses on translatinghuman
being into useful resources.

The Human Resource Management activities include:

a. Searching right candidate;
b. Identifying their knowledge;
c. Skills and attitudes towards a specific job;
d. Fixing and practicing fair compensation policy;
e. Ensure the safety and comfort in the work place;
f. Observing the performance of the employees;
g. Employee motivation;
h. Effective communication;
i. Administration and training for increasing productivity and efficiency;

DEFINITION:
According to Leon C. Megginson “ HR is the total knowledge, skills, creative abilities,
talents and aptitudes of an organization’s workforce, as well as the value, attitudes and beliefs
of the individuals involved.”

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 According to Gary Dessler, ”Human resource management is the policy and practice
of one need to carry out the people or human resource aspects of a management position,
including recruiting, screening, training, rewarding, and appraising.”

According to Edwin B. Flippo, “Human resources management refers to the planning,

organizing, directing and controlling of procurement, development, competition, integration,
maintenance and separation of human resource to the end that individual, organization and
social objectives are accomplished.”

HISTORY OF HUMAN RESOURCE MANAGEMENT

The early development of the function can be traced back to at least to distinct movements
one element had its origins in the late nineteenth century where organisation such has
Cadburys at its Bourneville factory recognised the importance of looking after the welfare of
the work force, and their families. The employment of women in factories in the united kingdom
during the first world war let to the introduction of “welfare officers “. Meanwhile in the united
states the concept of human resources developed as a reaction to the efficiency focus of
taylorism or “scientific management” in the early 1900s which developed in response to the
demand for ever more efficient working practices within highly mechanised factories such has
in the fored motor company. By 1920 psychologist and employmentexperts in the united states
started the human relations movement which viewed workers in terms of their psychology and
fit with companies rather than as interchangable parts.

During the middle of the last century larger corporations typically those in the united states
that emerged after the second world war recruited personal from the us military and were able
to apply new selections, training, leadership and management development techniques
originally developed by the armed services working with, some leading European
multinationals such as shell and Philips developed new approaches to personnel development
and drew similar approaches already used in civil service training gradually this spread more
sophisticated policies and processes that required more central management via a personnel
department composed of specialist and generalist team.

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The role of HRM grew through out the middle of the 20 th century in the later part of the last
century, both the title and traditional role of the personnel function was progressively
superseded by the emergence at least in the larger organisation of strategic human resources
management and sophisticated human resource department it becomes distinguished by the
human resources having a more significant influences on the organisation strategic direction
and gaining bored – level representation.

FUNCTIONS OR HRM

Every manager must get things done from people. A manager’s handling of the human assets
reflects his managerial capabilities. Managing people is one of the biggest challenges for any
manager.

The functions of HRM can be classified into the following:

MANAGERIAL FUNCTIONS

Management is the accomplishment of results through the efforts of other people.

Managerial functions of HRM are as follows:

1. Planning

2. Organizing

3. Directing

4. Coordinating

5. Controlling

PLANNING

It is a pre determined course of action. It involves planning of HR, requirement,

recruitment, selection, training etc. it also involves forecasting of personal need change in
value attitude & behavior of employees and their impact of organizing and it also involves
determining of strategies, program, policies & procedure to accomplish organization
objectives and involves ability to think, to predict, to analyze & to take decision.

ORGANISING

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 Organizing is a structure of framework and a process, by which a company operates
the group of human resource, allocates its task among its members, aided fact relationship and
integrated its activities to word common objective. It establishes relationship among employees
so that they can contribute collectively towards the attainment of organizational goals, it is an
activity which establishes harmonious adjustment among all the factors of production i.e., land,
labor, capital & organization or enterprise. Organization establishes relationship among the
employees so that they can collectively contribute to the attainment of company goals.

DIRECTING

It is the process of directing all the available resources towards the common
organization’s goals. Directing includes seeing that mistakes are corrected, making
assignments, issuing orders, provided on the job instruction & of course, corresponding
procedures. It is a very important managerial function in building sound industrial & human
relations besides securing employee contributions.

CO-ORDINATING

Co-ordination is required in all levels. Human resources department ensures

developing programs for better co-ordination, interpreting & reviewing personnel policies, it
means balancing timings & integrating activities in an organization so that the unity of action
pursuit of a common purpose achieved.

CONTROLLING

Controlling is the measuring & correcting of activities of subordinates to ensure that

events confirm to plan. It is concerned with obtaining of the manpower & number of personnel
necessary to accomplish organization goals & it deals with man power requirement there,
recruitment selection, placement, transfer etc…..

➢ OPERATIVE FUNCTIONS

The operative functions of HRM are concerned with the activities especially dealing
with employment, H R Development, Compensation and human relations.

1) PROCUREMENT

Through the process of recruitment & selection, the H R manager identifies

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 the right type of people required in the organization & puts in some efforts to
develop to get better performance.

2) MAINTENANCE

HRM undertakes all the activities contributing to maintaining people in the

organization .ex: Good environment, different facilities like canteen, etc

3) DEVELOPMENT

It is concerned with the personal development of employee by increasing their

skills to training it also conduct seminars, training conference providing for
education & vocational counseling and appraisal of employees potential and
their performance.

4) COMPENSATION

It is concerned with securing adequate & equitable remuneration to persons

working in the organization compensation should be fixed in such a way that it
is able to attract & retain suitable persons in the organization.

5) INTEGRATION

This function concerned with the secure adequate & equitable effect with the
reconciliation of individuals, social & organizational interest.

6) CONDUCTING RESEARCH

The main focus of human resource management is to come out with different
ways in order to control & regulate the personnel towards the right direction
there by achieving organization’s objectives. In order to attain HRM it should
focus towards coming out with continuous innovative methods in order to
communicate, understand & integrate the workforce, research plays a pivotal
role.

7) WORK CULTURE

HRM introduces to pattern, the procedures in which the organization carries

out its function. It is the definite way of word that creates a definite work culture
in the organization.

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8) DEVELOPING A COMMUNICATION SYSTEM

HRM promotes free flow of communication in organization i.e., upwards,

downwards and lateral, which helps in building suitable environment of work
and builds culture link in the organization.

9) EMPLOYMENT

Employment is concerned with stabling and employing the people possessing

required kind and level of human resources necessary to achieve the
organizational objectives. It includes the functions like job analysis, human
resource planning, recruitment, selection, placement, induction and internal
mobility.

10) HUMAN RESOURCE DEVELOPMENT

HRD efforts are described in terms of the training and educating programs and
the number of people who are exposed to these programs. Unless a systematic
and constant monitoring of these programs and a systematic appraisal of the
actual effect of these programs, in terms of actual results achieved, can be
determined, it may not be possible to understand whether the real purpose is
served by these programs.

11) HUMAN RELATION.

This process leads to the human relations movement with its emphasis on the
fact that employees need to be understood in order to be satisfied and
productive. The idea that good human relations in and of themselves will
increase productivity.

12) INTEGRATION

It is an attempt reconciliation of individual, organization and social interest.

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 13) COMPENSATION

It is concerned with securing adequate and equitable remuneration to persons

working in the organization. Compensation should be fixed in such a way that
it is able to attract and retain suitable persons in the organization.

Advisory Functions:

Human resource manager has specialized education and training in managing human
resources. He is an expert in his area and so can give advice on matters relating to human
resources of the organization.

1. Advised to Top Management:

Personnel manager advises the top management in formulation and evaluation of
personnel programs, policies and procedures. He also gives advice for achieving and
maintaining good human relations and high employee morale.

2. Advised to Departmental Heads:

Personnel manager offers advice to the heads of various departments on matters such
as manpower planning, job analysis and design, recruitment and selection, placement,
training, performance appraisal, etc.

IMPORTANCE OF HRM

Importance of HRM can be discussed at four levels which are as follows:

1. Corporate level

For an enterprise effective HRM leads to its goal efficiently and effectively. HRM helps
enterprise in the following ways:

a) Hiring required skill set and retaining them throw effective human resource planning,
recruitment, selection, placement, orientation and promotion policies.

b) Development of employees by enhancing necessary skills and right attitude among

employees through training, development, performance appraisals etc.

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c) HRM also takes care of the optimum utilization of available human resource.

d) HRM also ensures that organization as a competent team and dedicated employees in
future.

2. Professional level

a) HRM also leads to improved quality of work life; it enables effective team work among
employees by providing healthy working environment.

b) By providing opportunities for personal development of an employee

c) Enabling healthy relationships among team and allocating work properly to employees as
well as team.

3. Social Level

a) HRM plays important role in the society; it helps labor to live with pride and dignity by
providing employment which in turn gives them social and psychological satisfaction.

b) HRM also maintains balance between open jobs and job seekers.

4. National Level

a) HRM plays a very significant rule in the development of nation. Efficient and committed
human resource leads to effective exploitation and utilization of nation’s natural, physical and
financial resources.

b) Skilled and developed human resource ensures the development of that company will be
underdeveloped

c) Effective HRM enhances economic growth which in turn leads to higher standard of living
and maximum employment.

Objectives of HRM

The primary objective of HRM is to ensure the availability of competent and willing
workforce for an organization. Beyond this, there are other objectives too. Specifically,

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HRM objectives are four fold: Societal, Organization, Functional and personal.

➢ Personal Objectives:

To assist Employees in achieving their personal goals, at least in so far as these goals enhance
the individual’s contribution to the organization. Personal objectives of employees must be
maintained, retained and motivated.

➢ Functional Objectives:

To maintain the contribution of department at an appropriate level organization should fulfill

the needs. Resources are wasted when HRM is either more or less sophisticated to suit the
organizations demands.

➢ Organizational Objectives:

To recognize the role of HRM in bringing about organizational effectiveness, HRM is not an
end in itself but it is only a mean to assist the organization with its primary objectives
organization.

➢ Societal Objectives:

To be ethically & socially responsible for the needs and challenges of society while minimizing
the negative impact of such demands upon the organization to use their resources for society’s
benefits in ethical ways may lead to restriction.

➢ Other objectives:

1. Accomplish the basic organizational goals by creating and utilizing an able and
motivated workforce.

2. To establish and maintain organizational structure and desirable working relationships

among all the members of the organization.

3. Develop co-ordination among individual and group within organization to secure the
integration of organization.

4. To create facilities and opportunities for individual or group development so as to

match it with the growth of the organization.

5. To attain an effective utilization of human resources in the achievement of

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 organizational goals.

6. To identify and satisfy individual and group needs by providing adequate and equitable
wages, incentives, employee benefits and social security and measures for challenging
work, prestige, recognition, security, status.

7. To maintain high employees morale and human relations by sustaining and improving
the various conditions and facilities.

8. To strengthen and appreciate the human assets continuously by providing training and
development programs.

9. To consider and contribute to the minimization of socio-economic evils such as

unemployment, under employment, inequalities in the distribution of income andwealth
and to improve the welfare of the society by providing employment opportunities to
women and disadvantaged sections of the society.

10. To provide an opportunity for expression and voice management.

11. To provide fair, acceptable and efficient leadership.

12. To provide facilities and conditions of work and creation of favorable atmosphere for
maintaining stability of employment.

13. To create & utilize an able & motivated work force Establish &maintain
sound organizational structure Create facilities attain an effective utilization Identify &
and satisfy individual & group needs.

14. Maintain high employee morale Training & development Opportunity for
expression Provide fair, acceptable and efficient leadership Facilities and Conditions.

Process in Human Resource Management

Each organization works towards the realization of one vision. The same is achieved
by formulation of certain strategies and execution of the same, which is done by the HR
department. At the base of this strategy formulation lie various processes and the effectiveness
of the former lies in the meticulous design of these processes. But what exactly are and entails
these processes? Let’s read further and explore.

The following are the various HR processes:

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 1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction,
Orientation, Evaluation, Promotion and Layoff).
2. Employee remuneration and Benefits Administration
3. Performance Management.
4. Employee Relations.

The efficient designing of these processes apart from other things depends upon the degree of
correspondence of each of these. This means that each process is subservient to other. You
start from Human resource Planning and there is a continual value addition at each step. To
exemplify, the PMS (performance Management System) of an organization like Infosys would
different from an organization like Walmart. Let’s study each process separately.

Human Resource Planning: Generally, we consider Human Resource Planning as the process
of people forecasting. Right but incomplete! It also involves the processes of Evaluation,
Promotion and Layoff.

▪ Recruitment: It aims at attracting applicants that match a certain Job criteria.

▪ Selection: The next level of filtration. Aims at short listing candidates who are the
nearest match in terms qualifications, expertise and potential for a certain job.
▪ Hiring: Deciding upon the final candidate who gets the job.
▪ Training and Development: Those processes that work on an employee onboard for
his skills and abilities up gradation.

Employee Remuneration and Benefits Administration: The process involves deciding upon
salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime
motivator in any job and therefore the importance of this process. Performing employees seek
raises, better salaries and bonuses.

Performance Management: It is meant to help the organization train, motivate and reward
workers. It is also meant to ensure that the organizational goals are met with efficiency. The
process not only includes the employees but can also be for a department, product, service or
customer process; all towards enhancing or adding value to them.

Nowadays there is an automated performance management system (PMS) that carries all the
information to help managers evaluate the performance of the employees and assess them

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accordingly on their training and development needs.

Employee Relations: Employee retention is a nuisance with organizations especially in

industries that are hugely competitive in nature. Though there are myriad factors that motivate
an individual to stick to or leave an organization, but certainly few are under our control.

Employee relations include Labour Law and Relations, Working Environment, Employee
health and safety, Employee- Employee conflict management, Employee- Employee Conflict
Management, Quality of Work Life, Workers Compensation, Employee Wellness and
assistance programs, Counselling for occupational stress. All these are critical to employee
retention apart from the money which is only a hygiene factor.

All processes are integral to the survival and success of HR strategies and no single process
can work in isolation; there has to be a high level of conformity and cohesiveness between
the same.

NATURE OF HRM

Human Resources Management (HRM) is a management function that helps managers’recruit,

select, train and develops members for an organization. Obviously, HRM is concerned with
the people’s dimension in organizations.
Specifically, the following constitute the core of HRM:

1. Organizations are not mere bricks, mortar, machineries or inventories. They are
people. It is the people who staff and manage organizations.

2. HRM involves the application of management functions and principles. The functions
and principles are applied to acquisitioning, developing, maintaining and
remunerating employees in organizations.

3. Decisions relating to employees must be integrated. Decisions on different aspects of

employees must be consistent with other human resource (HR) decisions.

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 4. Decisions made must influence the effectiveness of an organization. Effectiveness of
an organization must result in betterment of services to customers in the form of High
-quality products supplied at reasonable costs.

5. HRM functions are not confined to business establishments only. They are applicable
to non-business organizations, too, such as education, health care, Recreation.

SCOPE OF HRM

• Human resources planning:-Human Resource Planning refers to a process by which

the company to identify the number of jobs vacant, whether the company has excess
staff or shortage of staff and to deal with this excess or shortage.

• Job analysis design: - Another important area of Human Resource Management is job
analysis. Job analysis gives a detailed explanation about each and every job in the
company.

• Recruitment and selection:-Based on information collected from job analysis the

company prepares advertisements and publishes them in the newspapers. This is
recruitment. A number of applications are received after the advertisement is
published, interviews are conducted and the right employee is selected thus recruitment
and selection are yet another important area of Human Resource Management.

• Orientation and induction: - Once the employees have been selected an induction or
orientation program is conducted. This is another important area of Human Resource
Management. The employees are informed about the background of the company,
explain about the organizational culture and values and work ethics and introduce to
the other employees.

• Training and development: - Every employee goes under training program which helps
him to put up a better performance on the job. Training program is also
conducted for existing staff that have a lot of experience. This is called refresher

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 training. Training and development is one area where the company spends a huge
amount.

• Performance appraisal: - Once the employee has put in around 1 year of service,
performance appraisal is conducted that is the Human Resource department checks the
performance of the employee. Based on these appraisal future promotions, incentives,
increments in salary are decided.

• Compensation planning and remuneration: - There are various rules regarding

compensation and other benefits. It is the job of the Human Resource department to
look into remuneration and compensation planning.

• Motivation, welfare, health and safety: - Motivation becomes important to sustain the
number of employees in the company. It is the job of the Human Resource department
to look into the different methods of motivation. Apart from this certain healthy and
safety regulations have to be followed for the benefits of the employees. This is also
handled by the HR department.

• Industrial relations: - Another important area of Human Resource Management is

maintaining co-ordinal relations with the union members. This will help the
organization to prevent strikes lockouts and ensure smooth working in the company.

CHARACTERISTIC FEATURES OF HRM

Human Resource management is a process and philosophy of acquisition, development,

utilization, and maintenance of competent human force to achieve goals of an organization in
an efficient and effective manner.

The Characteristic features of HRM can be summarized as follows:

1. Human Resource Planning

It is understood as a process of forecasting an organization’s future demand and supply

for the right type of people in the right number. It is through this activity,which
helps the organization to know how many employees exist in the organization

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 and how many are required to perform the current jobs and as to how many are
required to perform the future job.

2. Job analysis

It is the process of studying and collecting information relating to the operations and
responsibilities of a specific job. The immediate products of this analysis are job
description and job specification.

3. Recruitment and Selection

Recruitment is the process of stimulating the candidates to apply for jobs. Selection is
a process of identifying the more eligible candidate for a particular job.

4. Orientation and Placement

Orientation is a socializing process by which the organization seeks to make the

employee comfortable at the work place. Placement on the other hand is about matching
the requirements of the job with the qualification of the candidate.

5. Training and Development

Training is imparting specific and necessary skills to an employee in order to perform

a particular job/task at present; whereas development of an employee is all about
imparting vast knowledge to an employee in order to equip him/her towards the future
job.

6. Performance appraisal and Job evaluation

Performance Appraisal is the systematic evaluation of the individual with respect to his

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 or her performance on the job and his or her potential for development.

Job evaluation is a systematic technique, which aims at determining the worth of a job.
It is rating a job and not an individual performing the job.

7. Employee and Executive Remuneration

Remuneration is a wage or salary or any other compensation paid to employee for the
service they render to the organization.

8. Motivation and Communication

Motivation is the process of channeling a person’s inner drives towards accomplishing

the goals of an organization.

Communication is the process of transmission of ideas, information, orders or

instructions to the recipient so that there is an understanding between the sender and
the receiver.

9. Welfare, Safety and Health Measures

The organization implements various welfare, safety and healthy measures for the
betterment security and satisfaction of the employees.

10. Better Industrial Relations

Industrial Relations are those relations, which arise at the work place. For example:
Relationship between the employer and the employee and between the employee and

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 the employers. Hence Industrial Relations is more concerned and strives towards
maintaining cordial relationship between the groups mentioned above.

11. Continuous Process

First, it is a process as there are number of functions to be performed in a series,

beginning with human resource planning to recruitment to selection, to training to
performance appraisal.

To be specific, the HRM process includes acquisition (HR planning, recruitment, selection,
placement, socialization), development (training and development, and career development),
utilization (job design, motivation, performance appraisal and reward management), and
maintenance (labour relations, employee discipline, grievance handling, welfare, and
termination). Second, it is continuous, because HRM is a never-ending process. It is continued
till the dissolution of an organization.

12. People Oriented

Human resource management is concerned with employees both as individuals and as

a group in attaining goals. It has the responsibility of building human capital. It is also
concerned with behavior, emotional and social aspects of personnel. It is the process of
bringing people and organizations together so that the goals of each are met. People are
vital for achieving organizational goals. Organizational performance depends on the
quality of people and employees.

13. Future-Oriented
HRM is future oriented behavior in the sense that it helps in assessing human resource
requirement for future. It helps in determining future goals and objectives of the
organization and it employees the people to get the job done in future period of time.

14. Focus on Results:

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 HRM is performance oriented. It has its focus on results, rather than on rules. It
encourages people to give their 100%. It tries to secure the best from people by winning
the whole hearted cooperation. It is a process of bringing people and organization
together so that the goals of each are met. It is commitment oriented.

15. Pervasive:
Development of HRM covers all levels and all categories of people, and management
and operational staff. No discrimination is made between any levels or categories. All
those who are managers have to perform HRM. It is pervasive also because it is required
in every department of the organization. All kinds of organizations, profit or non-¬profit
making, have to follow HRM.

Role of Human Resource Manager

• Specialist: HRM is responsible for advising management from the managing director
to the lower line supervisor in all areas relating to personnel management and
industrial relation. The HR manager provides information, offers suggestion and is
not responsible for end result.

• Controller: He can give the advice on policies, help managers in implementing their
programs and provide services, exercise monitoring and control functions
sparingly.

• Agent: The role of HR manager is more concerned with providing information and
offering advice of the decision makers rather than making decisions.

• Counselor: As a counselor HR manager take care of the employees facing various

problems like material, health, children education and also approach the personnel
manager.

• Administrative official: He translates into action those parts of the personnel policies
and programs assigned to him.

• Coordinator: He bring actions all activities, regulations and combines diverse efforts
into a harmonious whole.

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 • Service provider: The HR manager occupies position in a company which best
provides certain service to all employees.

• Educator: His educational functions are sell the employees point of view to the
employers and supervisor.

• Promoter of community relations: HR manager must be well informed of the

activities and developments in the environment where the enterprise operates.

• Adviser: He serves as counselor, guide and confident to management.

DUTIES AND RESPONSIBILITIES OF HRM

a) Recruitment:

❖ Understanding requirements accordingly drafting of job description

❖ Understanding manpower requisition from the concerned department

❖ Screening the candidates by conducting personal interviews

❖ Maintain and updating the data base of the candidate

❖ Encouraging the employees to provide reference for better prospects

b) Induction and on boarding

❖ When a particular candidate is finalized and selected ,giving him offer

letter on joining the services, issuing appointment letter with brief
working agreement of policies

❖ Giving descriptive on policies ,procedures and culture followed by the

company

❖ Explaining the mode of communication

❖ Properly filing relevant document of new joined employees as required

c) HR policies and HR manual

❖ If the company do not have an HR manual, drafting the same for the
company

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 ❖ Making or amending the existing policies and procedures

d) Attendance and leave records

❖ Keeping track of the attendance of the employees

❖ Filing the leave forms and keeping a track of the leaves taken

❖ Seeing to it that no employee is irregular and if there are such people

,taking correct or preventive measure

e) Performance management

❖ Helping the senior’s do performance appraisal practices

f) Employee engagement

❖ Keeping track on employees turnover and exit rate

❖ Taking initiatives to engage the staff to their work

❖ Planning events or activities regularly or on some occasions, getting

those approved by senior management and implementing those

g) Workforce management

❖ Handling the staff so that people are not dis-satisfied with each other

❖ Other employees relater issue

❖ Handling cross culture

h) Statutory compliance

❖ Minimum salary PF /ESIC / medical deductions as applicable others

❖ Leaves as per compliance the act that is applicable to you

i) Exit formalities

❖ Conducting exit interviews of candidates who are resigning

❖ Helping the person to be relieved properly

❖ Doing the full and final settlement for the person

❖ Issuing relieving letter and letter of experience

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 ❖ Trying to get constrictive feedback for the company and trying to
implement the corrective measures for them

j) Compensation and benefits

❖ Designing the salary structure for employees

❖ Helping employees save tax by advising them on tax benefits plan and
investment options. Calculating the Gratuity, Handling PF accounts
etc.

ORGANIZITION OF HR DEPARTMENT

i. HR front office

Organization of personnel department also known as HR front office is

responsible for striking rapport with internal group/Clint.

A designated official, generally would be meeting the requirement of

clients.

ii. HR back office

The back office would take care of legal requirements or regulatory

framework. The office people would be responsible for keeping
personnel files, documents, profile, records, and data in an accessible
form.

iii. HR centers of excellence

The department looks after functions such as recruitments, training and

development, compensation and benefits, industrial relations etc. These
center work close coordination with HR front office and HRback
office while trying to get the best out of employees throughexcellent HR
practices and policies.

iv. HR department in line organization

This is a type of structure in which authority flows in direct line from a

superior to a subordinate. Each employees knows who is superior and

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 who has authority to issue the order to whom. Managers have full
authority in their area of operations and are responsible for the final
results.

v. HR department in functional organization

In any functional organization, all actives of an organization is divided

into different functions such as production, marketing, finance etc.

Each functional area is headed by a specialist who directs the activities

of the area for the entire organization.

vi. HR department in a divisional structure

The personnel manager at divisional /branch level is responsible to the

local divisional/branch manager. Personnel manager at divisional
branch assist branch manager in personnel programs and in the
management of personnel at the branch/division.

vii. HR department in matrix structure

It referred to as a multi-commend system.

Thus, the team of employees which comprise the personnel department

have two superior, i.e., personnel manager and project manager.

Both dimensions of structure are permanent and balanced, both power

held equally by both functional head and a project manager.

QUALITIES OF HR MANAGER

Human Resource Manager is one of the most important key to open a lockhanging
on the door of success in an organization. If a Human Resource Manager is efficient
enough to handle and to take out best from his team members any organization and can
achieve more from his target goals. Human Resource manager plays an very important
role in hierarchy, and also in between the higher management and low level employees.
Stated below are major responsibilities of Human Resource Manager.

➢ Knowledge and expertise in Human Resources: HR Managers should possess

foundation on the functions of human resources. And not only this, successful HR

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 Managers have a zeal to update their knowledge on latest practices and trends in
human resources. With their knowledge and expertise, they deal with the daily
challenges that arise in the organization.
➢ Being Human :Employees value leaders who are human and who do not hide behind
their authority. The best leaders are those who aren't afraid to be themselves. Managers
who respect and connect with others on a human level inspire greatloyalty.
➢ Versatility: Flexibility and versatility are valuable qualities in a manager. Beneath the
flexibility and versatility is an ability to be both non-reactive and not attached to how
things have to be. Versatility implies an openness ¬ this openness allows the leader to
quickly change on a dime when necessary. Flexibility and versatility are the pathways
to speedy responsiveness.
➢ Communicator: Communication plays a vital role in any organization and HR takes a
major role in this. HR managers play a major role in this. One of the qualities of a good
communicator is to have good listening skills. Employees come to HR managers on
various issues. Listening to employees with full attention is one of good quality ofa
successful HR Manager.
➢ Presenter: Great presenters attract their audiences’ attention, keep them engaged and
deliver the message in a positive manner. Presentations skills are important quality of
successful HR Managers as they handle several trainings and present the information
to management.
➢ Innovation: Not every issue has a same or easy or ready solution. Successful HR
Managers think out of the box and deliver the best solution to their employees and the
organization.
➢ Approachable: HR handles various aspects of employees. Successful HR Managers
have an open door policy and are approachable to their employees.
➢ Time Management and Self Discipline: Successful HR Managers are good at
managing their time. They plan their day not just to complete their day-to-day activities
but also cater time for sudden issues.
➢ Delegator: It’s not possible to do all the work by one person. And this is understood
by successful HR Managers. HR Managers delegate work to their team members so
that they get learned and grow as a professional.
➢ Decision maker: Successful HR Managers are strategic planners and take decisions
which are apt and considering all the facts. They are not afraid to make the hard

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 decisions for the benefit of the organization.
➢ Business Acumen: Business acumen is keenness and quickness in understanding and
dealing with a business situation in a manner that is likely to lead to a good outcome.
Successful HR managers possess good knowledge and understanding of the financial,
accounting, marketing and operational functions of an organization.
➢ Trust Advisor: Employees will open to someone they trust and seek advice on various
areas. This may not be limited to their career but also can be from their personal life.
Successful HR Managers advices employees by creating an environment of trust.
Successful HR Managers build trust through straight forward communications and
interactions.
➢ Motivator: Every employee has different goals and objectives to achieve. Successful
HR Managers are committed to motivate. Successful HR Managers know and
understand what motivates employees and strive to give it to them.
➢ Leader: A leader is one who visualizes big picture, focus on people, progress and
achievements, does the right thing and encouraging a rewarding culture. And this is
what the successful HR Managers possess.
➢ Metric Oriented: Successful HR Managers have a flair for metrics as these are useful
in improvising various processes in the organization.

PERSONNEL POLICIES OF HRM

DEFINITION

According to ‘Dale Yoder ‘a policy is pre-determined selected course-established as a

guide towards accepted goals and objectives’.

OBJECTIVES OF PERSONAL POLICIES OF HRM:

1. Optimum Use of Human Resources: Every organisation tries to make use of the
available human resources to the best of their capabilities. Right men should be
selected for the right jobs. With the help of personnel policies, jobs are defined and
responsibilities of the personnel are specified so that there are no square pegs in the
round holes.

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 2. Training of Everyone: The other main object of personnel policies is to train and
develop everyone so as to make them competent for doing their job. Only a trained
worker can do his job efficiently. The personnel policies must encourage healthy and
constructive competition among the workers and also provide an opportunity for
development and growth of an individual.

3. Sound Industrial Relations: Personnel policies aim at creating sound industrial

relations and tend to establish conditions for mutual confidence and understanding.
Workers are encouraged to put forward constructive suggestions and are given
participation through joint management councils and works committees. All this leads
to industrial peace. Many operational problems are avoided by having well formulated
policies.

4. Payment of Fair Wages: Personnel policies must aim at ensuring the employees that
they will be given fair wages for the work done by them.

5. Security of Employment: One of the objectives of personnel policies is to provide

security of employment to the workers. Such policies provide an efficient consultative
service which aims at creating mutual faith among those who work in the enterprise.
All types of doubts relating to loss of employment are cleared from the minds of
workers. Thus, social as well as economic security is provided to workers.

6. Respecting Human Dignity: Personnel policies ensure fair treatment to all irrespective
of caste, colour and creed and aim at respecting the human dignity. Workers are offered
good and healthy working conditions.

Types of Personnel Policies IN HRM:

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1. Originated policies: These are established by top management deliberately so as to
guide executive thinking at various levels.

2. Appealed policies: These are formulated to meet the requirements of certain peculiar
situations which have not been covered by the earlier policies. Such requests usually
came from subordinates who fail to handle the cases based on guidance offered be
existing policies.

3. Imposed policies: These are formed under pressure from external agencies such as
government trade associations and unions.

4. General policies: They reflect the basic philosophy and priorities of the top
management in formulating the brand plan for mapping out the organization’s growth
chart.

5. Specific policies: These policies cover specific issues each as hiring, rewarding and
bargaining. Such policies, however, should be in line with the basic frameworkoffered
by the general policies.

6. Written or implied policies: implied policies are inferred from the behavior of members
(such as dress code, gentle tone while talking to customers not getting angry while at
work etc) written policies on the other hand, spell out managerial thinking on paper so
that there is very
little room for loose interpretation.

PRINCIPLES OF HUMAN RESOURCE

Principles and policies for managing human resources is designed to provide an enabling
set of standards to guide managers in making decisions about managing the people in their
organizations.

There are ten essential principles of human resource they are :

➢ COMPREHENSIVENESS : The HRM strategy of an organization must

include all the aspects of people management, typically starting from

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 recruitment to post separation programmers.

➢ CREDIBILITY : The HR practices must build trust between staff and top
management and encourage employee’s belief in HRM strategies.

➢ HIRE SLOW, FIRE FAST: HR leaders must be slow in hiring the right talent
for their organizations. They must look for the right mindset, skill set, and tool
set in job seekers during recruitment. If they find that bad apples entered into
their basket, they must be removed quickly to contain further damage to their
organizations

➢ COMMUNICATION: The objectives of organization and that of HRM must

be understood and accepted by all employees. The operating culture in
organization must encourage openness and be free from all barriers.

➢ COST EFFECTIVENESS: The reward and promotion system must be fair

➢ CREATIVITY: The competitive advantage of the company must stem from its
unique HR strategies.

➢ COHERENCE: HRM activities and initiatives must from a meaningful whole.

➢ CHANGE: The basic premise of HRM strategy must be that continuous

improvement and development is essential for survival.

➢ CONTROL: HRM policies and practices must ensure that performance of HR

is consistent with business objectives.

➢ HIRE FOR ATTITUDE, RECRUIT FOR SKILLS: It is better to hire a new

job seeker with high attitude and no experience than one with a rotten attitude
and years of experience. If employees possess a good attitude, they will have the
ability absorb the knowledge, skills, and abilities that are essential to perform
their tasks effectively in the workplace..

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 ACTIVITIES OF HRM

1. Strategic HR Planning and Analysis

a) HR Planning
b) Job Analysis : Information is the basic material used by an industry for many kinds of job
related planning. Nature of job information varies from industry to industry, from department
to department and from purpose to purpose. Information used for job analysis must be
accurate, timely and tailor made. According to N.R Chatterjee, job analysis is the process of
determining by observation and study and reporting pertinent information related to the
nature of a specific job. Dale Yoder defined as the method used to determine what types of
manpower are needed to perform the jobs of the organization.
c) HRIS

2. Equal Employment Opportunity (EEO)

a) Compliance
b) Diversity
c) Affirmative Action

3. Selecting-and-Hiring-Employees
a)Job-Analysis
b) Recruiting : Recruiting is a ‘linking function’ joining together those with jobs to fill and
those seeking jobs. It is a joining process in that it tries to bring together job seekers and
employer with a view to encourages the former to apply for a job with the latter. The
objective of recruitment is to develop a group of potentially qualified people. To this end, the
organization must project the position in such a way that job seekers respond. To be cost
effective, the recruitment process should attract qualified applicants and provide enough
information for non qualified persons to self select themselves out.

c) Selection : To select is to choose. Selection is a screening process. It is the process of picking

individuals who have relevant qualifications to fill jobs in an organization. The basic purpose
is to choose the individuals who can most successfully perform the job from the pool of qualified
candidates. Selection starts after the recruitment process is over and job application has been
received.

4. Paperwork and Orientation

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5. Training-and-Development
a) Orientation
b) Training : Training involves the change of skills, knowledge, attitudes, or behavior of
employees. Although training is similar to development in the methods used to affect learning,
they differ in time frames. Training is more present-day oriented, its focus is on individual’
current jobs, enhancing hose specific skills and abilities to immediately perform their jobs.
Training is job specific and is designed to make employees more effective in their current job.
Employee development, on the other hand, generally focuses on future jobs in the
organization.
c) Employee Development
d)Career-Planning
c) Performance Management

6. Compensation and Benefits

a) Wages /Salary /Administration
b) Incentives
c) Benefits

7. Performance Appraisal : After an employee has worked on a job for a period of time, his
performance should be evaluated. Performance evaluation is the process of deciding how an
employee does his job. Performance here refers to the degree of accomplishment of the tasks
that make up an employee’s job. It indicates how well an individual is fulfilling the job
requirements.

8. Health, Safety, &Security

a) Health
b) Safety
c) Security

9. Managing Legal Issues

a) HR Policies
b) Employee rights and Privacy
c) Union/ Management Relation
d) Company policies and legal issues

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Techniques for Improving Human Resource Management in the Enterprise

Today, it is assumed that the main asset of any organization lies in people.

Quality, productivity, profitability, customer satisfaction and the image of a company depends
largely on training, coordination and motivation of its staff. For a company to function
properly it requires that the persons composing know, willing and able to work properly.

Inadequate people management can lead to myriad problems that hinder the performance of
an organization:

1. Lack of motivation

2. Undefined responsibilities

3. Lack of training / information

4. Lack of internal communication

5. Non-cooperation

6. Lack of coordination

7. Conflicts of interest

1. Leadership

Leadership can be defined as the ability of an individual to develop the potential of a team in
pursuit of a common interest. Through education and training, people who have responsibility
for others can develop optimal leadership style. A leader does not command it runs, does not
impose, but seeks consensus, not divide but unites.

Example: In a food business problems were identified by marking their authoritarian style of
leadership. In a leadership course were explained leadership styles. Participants were able to
assess your leadership style by completing a questionnaire. In addition, each participant
learned to evaluate the pros and cons of each style and know how to apply the mostappropriate
in each circumstance.

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2. Mentoring

The mentoring is a process by which a person teaches, advises, and guides to another in their
personal and professional development. It is the traditional "sponsorship" that currently is
used primarily in high positions in organizations.

Mentoring should not be improvised requires setting goals, planning and monitoring of
results.

Although there are similarities, mentoring differs from coaching in the mentor must have
expertise in the field in which you want to start the mentee, while the coach does not have to
have an experience in this field.

Example: A director of a company in the construction sector, with no time or discipline to study
for a master, hired a mentor to learn what I needed from a practical (less formal) and personal
assistance. This training helped her improve her leadership style and management techniques
are people in your company.

3. Education Climate Assessment

Diagnostic technique allows for an objective assessment of the degree of satisfaction of people
in an organization, understand their needs and expectations at work and their perception of
existing problems.

There are circumstances that may hinder the effectiveness and objectivity of an evaluation
process work climate, including:

1. Labor disputes

2. job dissatisfaction

3. Lack of communication

Must be taken into account these conditions, so before starting the survey process may have
to be a media campaign upon, to explain what, why and what it intends to carry out this
diagnosis.

The evaluation should be completely anonymous and the results published at all levels. The
assessment should be followed by an improvement plan aimed at resolving conflicts and

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problems have been detected.

Example: In a furniture manufacturing company, is still a problem of lack of motivation, lack

of teamwork and internal tensions. The results of a work climate assessment revealed that the
main areas of improvement were: to define responsibilities, establish incentive system, improve
staff training and development capabilities to offer.

4. Competence Management / Knowledge Management and Performance Evaluation

This methodology allows to reconcile the interests of the company with the interests of each
individual. While comparing the knowledge and skills required by the organization to those
who reside in people.

Management skills, involves identifying all you need for people to know, willing and able to
provide full value for the benefit of the organization.

Example: In a private agency established a competence management system, identified the

functions of each position were defined quantitative targets for each position and each
department and set up a training plan that took into account the training needs of each person.

5. Incentive Systems

An incentive system is to facilitate the reconciliation of the interests of each person with the
interests of the company.

Incentives should be established objectively, based on agreed targets and indicators. The
incentive system should be transparent, clear and concise.

Incentives must be aligned with individual goals, but also with collective goals, so as to
encourage teamwork versus individualistic attitudes.

Example: In the same company in the private agency that established the system of
performance appraisal, incentives based on the degree of fulfillment of the objectives of
productivity, quality and ideas contributed by each person and equipment.

6. Analytical and Problem Solving and Teamwork

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The competitiveness of an organization depends largely on his ability to turn problems into
opportunities.

To deploy this policy, we must educate the staff, encourage, lead it, promote internal
communication ... but also implement techniques for analyzing problems, identifying causes,
possible solutions and implementing them in the most efficient.

7. Meetings Management

At the end of many meetings, participants have the feeling of having wasted time and no
concrete objectives or actions without analyzing deeply enough problems without creating
the required commitment to address changes.

The efficient management of meetings require a protocol establishing practical rules of

conduct in all three phases of the meeting:

• Preparation (collection of information, convening the meeting, ...)

• Implementation Meeting (time management, agenda management, formalization of

the

record ...)

• Monitoring (monitoring of the agreements of the meeting)

Example: In a precast concrete company, were generated problems of quality and productivity
by poor communication between the technical department (responsible for the design of the
pieces) and production. Weekly meetings were established planning and coordinating work
with officials of both departments. These meetings contributed greatly to avoid many problems.

8. Internal Communication

Internal communication (horizontal and vertical upward and downward) is a prerequisite for
improving the work environment, encourage engagement, providing leadership and
coordination of all people in an organization.

Internal communication should not be left "random", but must be planned, implemented and

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verified in a manner that ensures that for, Who, When and How to contact.

• Avoid common errors such as:

• Consider the communication is a one-way and down (as it must be bidirectional and
both ascending and descending)

• Allow communication free will (since in these cases, communication is distorted and
fails to ensure that information reaches to whom, when and how to get there). This is
a breeding ground for rumour.

• Lack of consistency or alignment between what is communicated and business

objectives

• Communication at the wrong is not right that the channels of communication

"informal" anticipate and meet communication channels "formal"

• Communication exception: it is not appropriate reporting only bad news, it must also
provide positive feedback.

Example: In a training consulting firm identified communication problems. It

established an internal communications plan that included, among others, a
management improvement proposals channel allowing dozens of suggestions for all
staff which resulted in improved organizational performance and satisfaction of people.

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