UNIT 1

HRM
(Human Resource Management)
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HRM can be defined as a

process of procuring,
developing and maintaining
competent human
HRM resources in the
organisation so that the
goals of an organisation are
achieved in an effective and
efficient manner.
Definition
According to Dessler (2008) the policies
and practices involved in carrying out the
“people” or human resource aspects of a
management position, including
recruiting, screening, training, rewarding,
and appraising comprises of HRM.

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Definition
According to Flippo, “Personnel management, or
say, human resource management is the planning,
organising, directing and controlling of the
procurement, development, compensation,
integration, maintenance, and separation of human
resources to the end that individual, organizational
and social objectives are accomplished”

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Objectives of HRM

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Scope of HRM
The scope of HRM is, indeed, very vast and wide. It includes all
activities starting from manpower planning till employee leaves the
organisation. Accordingly, the scope of HRM consists of acquisition,
development, maintenance/retention, and control of human resources
in the organization.

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Planning
Planning is the fundamental management
function, which involves deciding beforehand,
what is to be done, when is it to be done, how it is
to be done and who is going to do it.
It is an intellectual process which lays
down an organization's objectives and
develops various courses of action, by which
the organization can achieve those
objectives. It chalks out exactly, how
to attain a specific goal.
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 Process of
planning

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Organizing
Organizing is a process of structuring the
essential relationships among the people,
tasks, and other activities. This is done in
a way that the organization’s resources
are integrated and are coordinated to
accomplish the objectives efficiently and
effectively.

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 Process of
Organizing

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Directing
Directing refers to a process or technique of
instructing, guiding, inspiring, counseling,
overseeing and leading people towards the
accomplishment of organizational goals.
It is a continuous managerial process that
goes on throughout the life of the
organization.

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D
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Supervisi
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Elements of Communi
cation
Elements
of
Directing
Leadershi
p

Directing

Motivatio
n
Controlling
Controlling can be defined as that function of
management which helps to seek planned results
from the subordinates, managers and at all levels
of an organization. The controlling function helps
in measuring the progress towards the
organizational goals & brings any deviations &
indicates corrective action.

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Process of
Controllin
g

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D
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a Procuremen
A t of
h Personnel
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Personnel Developmen
Planning t of
and Personnel
evaluation

Operati
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Functio
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Record Compensati
keeping on to
Personnel

Maintaining
good
Industrial
Relations
Procurement
of Personnel
Acquisition of human resources is
the primary function of a manager.
This includes all requirements of
personnel, recruitment, and
selection of suitable candidates, an
appointment to the right place of
the workforce, and estimation of
orientation.

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 Providing proper training to managers to
develop the necessary skills and talents
within the employees and ensuring the
correct development of the selected
candidates is an important function of
HR. Overall, the success of an
Development organization depends on how well
employees have trained for the job and
their growth opportunities within the
of Personnel
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organization. The role of HR is to ensure

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that new employees acquire company-

specific knowledge and skills so that they
can perform their tasks efficiently. This
increases the overall efficiency and
productivity of the workforce, resulting in
better business as well as greater
profitability for the company.
 Benefits and compensation are a major part
of the total cost expenditure of any
organization. It is necessary to plug
expenses, and at the same time, it is very
necessary to pay employees well. Therefore,
the role of human resource management is
to create packages such as bonuses,
Compensation benefits, and compensation for them to
attract more employees in the workplace
to Personnel without disturbing the company’s finances.
By which he will be able to give more good
production to the company by doing his
work with more interest.

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Maintaining Good industrial relations are maintained on the
basis of cooperation and recognition of each
good other. It will help increase production.
Industrial Wastage of man, material and machines are
reduced to the minimum and thus national
Relations interest is protected.

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Record keeping
Human resource records refers to the informational
documents utilized by an organisation to carry
out its functions. It represents the memory of
organisation. The records provide information about
the organisation which is maintained in tangible
form i.e. written, pictorial, charts etc.

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 Employee performance planning and
Personnel evaluations provide an on-going process for
Planning and supporting an employee's job development
and providing him/her with performance
evaluation feed-back.

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Difference between Human Resource Management and Personnel Management

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The Changing Environment of HRM

Work Force Diversity

Economic and Technological Changes

Gobalization

Organizational restructuring

Changing Nature of work

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Work Force Diversity
Diversity has been defined as any
attribute that humans are likely to
use to tell themselves, that person
is different from me and, thus,
includes such factors as race, sex,
age, values, and cultural norms’.
The Indian work force is
characterized by such diversity that
is deepening and spreading day by
day.
Economic and
Technological Change
Along with time, several economic
and technological changes have
occurred that have altered
employment and occupational
pattern. In India too, there is a
perceptible shift in occupational
structure from agriculture to
industry to services.
Globalization
The New Economic Policy, 1991 has,
among other things, globalised the
Indian economy. There has been a
growing tendency among business
firms to extend their sales or
manufacturing to new markets
aboard. The rate of globalization in
the past few years in India has been
nothing short of phenomenal.
Organizational
Restructuring
Organisational restructuring is used to
make the organisation competitive. From
this point of view, mergers and
acquisitions of firms have become
common forms of restructuring to
ensure organisational competitiveness.
The mega-mergers in the banking,
telecommunications and petroleum
companies have been very visible in our
country. Downsizing is yet another form
of organisational restructuring.
Changing Nature of
Work
Along with changes in technology and globalization, the
nature of jobs and work has also changed.

For example, technological changes like introduction of

fax machines, information technology, and personal
computers have allowed companies to relocate
operations to locations with lower wages. There is also a
trend toward increased use of temporary or part-time
workers in organizations.
HR as a Strategic
Partner
 HR as a
Strategic
Partner
The role of HR as a strategic partner
is to develop and direct an HR
agenda that supports and drives
the overarching goals of the
organization.