INDEX

SR.NO TITLE PG.NO

1. INTRODUCTION
2. HISTORY AND
EVALUATION
3. REVIEW OF LITERATURE
4. HUMAN RESOURCES
MANAGEMENT
5. HUMAN RESOURCES
MANAGEMENT IN BANKS
6. HUMAN RESOURCES
MANAGEMENTIN
PRIVATE AND PUBLIC
SECTOR BANKS
7. CONCLUSION
8. BIBLIOGRAPHY
  Introduction of Human Resources Management

Human resource management (HRM or simply HR) is a function in organizations

designed to maximize employee performance in service of an employer's strategic
objectives. HR is primarily concerned with the management of people within
organizations, focusing on policies and on systems. HR departments and units in
organizations typically undertake a number of activities, including employee recruitment,
"training and development", performance appraisal, and rewarding (e.g., managing pay
and benefit systems). HR also concerns itself with industrial relations, that is, the
balancing of organizational practices with requirements arising from collective bargaining
and from governmental laws. 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. The function 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 mergers and acquisitions,
talent management, succession planning, industrial and labor relations, and diversity and
inclusion.

In startup companies, trained professionals may perform HR duties. In larger

companies, an entire functional group is typically dedicated to the discipline, with staff
specializing in various HR tasks and functional leadership engaging in strategic decision-
making across the business. To train practitioners for the profession, institutions of higher
education, professional associations, and companies themselves have established
programs of study dedicated explicitly to the duties of the function. Academic and
practitioner organizations likewise seek to engage and further the field of HR, as
evidenced by several field-specific publications. HR is also a field of research study that
is popular within the fields of management and industrial/organizational psychology, with
research articles appearing in a number of academic journals, including those mentioned
later in this article. For any organization to function effectively, it must have resource of
men (Human Resource), money, materials and machinery. The resources by themselves
cannot fulfill the objectives of an organization, they need to be collected, coordinated and
utilized through human resources. And, the effective management of human resources is
also vital. Hence, Human Resource Management (HRM) has emerged as a major function
in organizations. Human Resource Management is the organizational function that
deals with issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.
The administrative discipline of hiring and developing employees so that they
become more valuable to the organization.
Human Resource management includes:

1. Conducting job analyses,

2. Planning personnel needs, and recruitment,
3. Selecting the right people for the job,
4. Orienting and training,
5. Determining and managing wages and salaries,
6. Providing benefits and incentives,
7. Appraising performance,
8. Resolving disputes,
9. Communicating with all employees at all levels. Formerly called personnel
management.
10.Maintaining awareness of and compliance with local, state and federal labor
laws.
11.These are also called as functions of human resource management for the purpose
of effect you utilization of human resource.

Human resources management practices play a very vital role in achieving the
organization goals and maintain the competitive advantage.

HRM practices refer to organizational activities directed at managing the pool of human
resource and ensuring that the resources are employed towards the fulfillment of
organizational goals (Schuler & Jackson 1987). Human resource management practices
is the management of people within the internal environment of organizations,
comprises the activities, policies, and practices involved in planning, obtaining,
developing, utilizing, evaluating, maintaining, and retaining the appropriate numbers
and skill mix of employees to achieve the organization objectives (Appelbaum 2001).
both employee and employer; it plays an important role in constructive growth of the
organization.
Ke Presently organizations are competing through implementing the unique HRM
practices and due to the globalization organizations adopt the most up-to-date HRM
practices in order to accomplish the organizational goals. Best HRM practices are
advantageous for eping in view of HRM practices, it is understood that the HRM did not
has direct role in business development but was more concerned with centralized
recruitment to staff. In this context, the review of the study covers the following most
important indicators of HR practices,

Human Resource Management is the process of recruitment, selection of employee,

providing proper orientation and induction, providing proper training and the developing
skills, assessment of employee (performance of appraisal), providing proper
compensation and benefits, motivating, maintaining proper relations with labour and with
trade unions, maintaining employee‟s safety, welfare and health by complying with
labour laws of concern state or country.

 Why name human resource management?

 Human: refer to the skilled workforce in the organization.

 Resource: refer to limited availability or scarce.

 Management: refer to maximize or proper utilization and make best use of

limited and a scarce resource.
Altogether, human resource management is the process of proper and maximize
utilization of available limited skilled workforce. The core purpose of the human resource
management is to make efficient use of existing human resource in the organization. The
Best example at present situation is, construction industry has been facing serious
shortage of skilled
workforce. It is expected to triple in the next decade from the present 30 per cent, will
negatively impact the overall productivity of the sector, warn industry experts.
Every organization desire is to have skilled and competent people to make their
organization more effective than their competitors. Humans are very
Every organization desire is to have skilled and competent people to make their
organization more effective than their competitors. Humans are very
important assets for the organization rather than land and buildings, without employees
(humans) no activity in the organization can be done. Machines are meant to produce
more goods with good quality but they should get operated by the human only.
Human Resource Management is important for banks because banking is a service
industry. Management of people and management of risks are two key challenges faced by
the banks. How they manage the people and how they manage the risks determine their
success in the banking business. Efficient risk management may not be possible without
efficient and skilled manpower. Banking has been and will always be a "People Business".
Though pricing is important, there may be other valid reasons why people choose and stay
with a particular bank. Banks must try to distinguish themselves by creating their own
niches or images, especially in transparent situations with a high level of competitiveness.
Banks have increasingly recognized the potential of their existing employees. They have
realized that, a firm’s employees can be a unique pool of talent and can take the
organization to greater heights. HRM practices affect such efforts of the employees by
influencing their skills and motivating them. It play a very crucial role in achieving the
organization’s goals and maintain the competitive advantage. These HRM practices pivot
not only in inculcating empowerment amongst the employees but also help in shaping a
healthy organizational culture, which leads to higher growth and performance of banks.
The purposed study is a comparative analysis between Public and Private Banks of
Selected cities of Haryana. Public Banks are governed by Government of India and Private
Banks were licensed under the policy of liberalization. So, both the types of Banks have
different Management imperatives and may follow different HRM Practices. Good HRM
Practices help in attracting, retaining talent, train people for challenging roles, develop their
skills and competencies, increase productivity and profits and enhance standard of living.
The study tried to find the truth behind it by analyzing the impact of appropriateness of
HRM Practices as perceived by employees of banks and their commitment thereof. Here, a
brief description of the conceptual areas of HRM practices relating to employee’s
recruitment and selection, promotion, compensation packages, training and development.

Human resource management (HRM) has long been overlooked in the corporate sector in
the country where a small section, comprising mostly the multi-national companies was
practicing the same. With the growing realization of proper HRM in the corporate sector,
it has grown into an important activity. Now the head of HRM is an important member of
the senior teams of any thriving business. Although the idea is new for many local
businesses where entrepreneurs are at the beginning of the learning curve yet in reality the
theme is getting support from the organized entrepreneurs. The banking sector has grown
from a few institutions primarily involved in deposit acceptance and trade finance into a
complex-multiplayer markets where large number of commercial banks, financial
institutions and specialized banks are operating with various products and activities

 HISTORY AND EVALUATION

EVALUATION OF HUMAN RESOURCE MANAGEMENT

Everything you need to learn about the evaluation of HRM (human resource
management.) Evaluation of HRM over the period of time is important for understanding
the philosophy, functions, and practices of HRM that are followed in different situations
so that relevant HRM practices are evolved in the present situation. HRM, being a part of
management discipline, has followed the pattern of development of management because
of the interrelationship of the problems of both the fields. Human Resource Management
(HRM) is relatively a very recent term considered for managing human resources in an
organisation. HRM is still evolving to become an amalgam of organisational behaviour,
personnel management, industrial relations and labour legislation. Historical Perspective
of Human Resource Management The term “human resource management” is of recent
origin. In its modern connotation, it came to be used mainly from the 1980s onwards.
During ancient times and for a long period in the medieval era, production of goods was
done mainly by skilled artisans and craftsmen. They themselves owned the tools and
instruments, produced articles and sold these in the market. As such, the question of
employer-employee or master-servant relationship did not arise in their cases. They
managed their affairs themselves and with the help of the family members. However,
many effluent craftsmen also employed apprentices and certain categories of hired
labourers. There existed a very close relationship between the master craftsmen and the
apprentices, and they themselves took care of the problems facing the apprentices and
their family members.

A sort of human approach was involved in their relationship. After a prolonged period of
training, many apprentices established their own enterprises, and many others remained
attached with their master craftsmen on lucrative terms. During the medieval period, the
skilled craftsmen also formed their guilds primarily with a view to protecting the interests
of their respective trades. These guilds also determined the price of their products, the
wages of the journeymen and hired labourers, and regulated the terms and conditions of
their employment. The ancient and a major part of the medieval period also witnessed
prevalence of certain other distinct types of labourers. These comprised slaves, serfs and
indentured labourers.

A brief description of the manner in which they were treated and managed will be
relevant for a proper understanding of human resource management in a historical
perspective.

1. Managing Slaves:

Slaves comprised an important source of manpower in almost all ancient civilisations.

They could be sold and purchased like commodities. Their main purchasers were the
wealthy rulers, landlords, tribal chiefs and effluent businessmen. The purchasers of slaves
had a rather complete control over their slaves. The masters of the slaves took a variety of
arduous work from them such as carrying heavy loads, rowing ships and boats,
construction of buildings and forts, digging canals, cattle-rearing and tillage of soil. The
remuneration or compensation for their efforts comprised mainly food, shelter and
clothing. The slaves were dealt with iron hands. They were subjected to strict supervision,
and non-compliance of the orders of their masters or supervisors was generally
punishable with physical tortures, and occasionally with mutilation of their limbs and
even death sentence for grave offences.

2. Managing Serfs:

Serfdom was widely prevalent in the feudal societies of the pre-and early medieval era.
Serfs were engaged by landlords mainly in agricultural operations and allied activities.
The landlords would usually give them a piece of land for their habitat and often, some
land for their own cultivation. In many cases, a paltry sum of money was advanced to
them in order that they could remain attached to their masters. In lieu of these facilities,
the serfs and their family members were required to serve their masters. The work
assigned to serfs mainly comprised – tillage of soil, cattle-rearing, domestic work and
similar other activities. Many landlords would also give them a meagre amount as wages,
whether in cash or in kind. Usually, serfs could become free after returning to their
masters the habitat, the piece of land and advances with interest. They could also be
transferred to some other landlord on payment. Under serfdom, some measure of personal
relationship existed between the landlords and the serfs. Many landlords often tried to
solve their genuine grievances and extended some help to those who were in distress. The
feudal lords also occasionally gave some economic inducements to their serfs in the form
of additional supply of food-grains and some money for their increased productivity and
good behaviour. Although the management of serfs was based on the principle of
authoritarianism, the element of human treatment was often found in their relationship.
With the abolition of the feudal system, serfdom also came to an end. However, some
remnants of the past can still be found even today, especially in rural areas. The bonded
labour system in India is comparable to the system of serfdom prevalent in European
countries during the medieval period.

3. Managing Indentured Labour:

The system of indentured labour emerged primarily with the flourishing of mercantilism
and advent of industrial revaluation. The discovery of new lands through sea and land
routes led to a substantial increase in the demand of European goods abroad, and at the
same time, gave a fillip to the establishment of industries in the continent. As a
consequence, trade flourished leaps and bounds, and the mercantilists, taking advantage
of the expanding markets, tried to accumulate as much wealth as possible. In their quest
for maximising wealth, the mercantilists would offer attractive inducements to the
artisans and skilled craftsmen for accelerating production of goods in demand. The
artisans and craftsmen responded and they started engaging an increasing number of
apprentices and hired labourers to cope with the demand of the products.
  REVIEW OF LITERATURE

Human resource management (HRM) plays a critical role in the success of any
organization, and the banking sector is no exception. With its ever-evolving landscape,
complex regulations, and focus on customer service, effective HR practices are essential
for attracting, retaining, and developing top talent. This literature review explores key
themes and findings of recent research on HR practices in the banking sector

Anil Kumar Singh,

he examined the various HRM practices in Indian organizations and the relationship
between HRD and the philosophy of management. In this paper “Philosophy of
Management and Human Resource Management Practices in Indian Organizations”, the
author noted that the windy business climate brought in the wake of liberalization,
globalization and changing technologies are offering a complex and challenging situation
to managers. He spots that Indian organization is tending to become competitive to meet
globally prevalent standards. Thus the author has suggested that HRD has to play a
crucial role in terms of making and enabling employees to constantly learn, unlearn,
change, and adapt themselves to organizational objectives. HRD has to play a catalytic
role in building and facilitating the right kind of work environment. HRD is formulated
on the conviction that people are important and their involvement is necessary for an
organization to be effective

Lallan Prasad and A.M. Bannerjee,

in their book ‘Management of Human Resource’, they bring out the idea of concepts,
principles, and practice of organizing work and employing appraising, communicating,
motivating and developing people for better results. The authors identified various
empirical findings of practicing managers, psychologists & even of other civic scientists
in the field of human resource management.

Mann (2009),
in her Ph.D. thesis, evaluated the recruitment, selection, training and the wage policy of
SSIs in Punjab. A sample size of 429 units had been taken for the purpose of the study.
She concluded that recruitment and selection in SSIs were done at the factory gate and
through agents and HRM personnel needed some special training. She further concluded
that employees were of the view that wage policy had differed in different SSIs and wage
matters were the major factor of conflict in these organizations. She suggested that there
was need for awareness of HRM practices in SSI and specific type of training was
required to improve the skill of employees

Karthikeyan (2010)
in the Indian Banking sector in Tiruchirappalli District of South India. Authors have
taken both the public and private sector banks in the study. It was found that Training
Practices differ slightly in Public and Private banks of South India, although employees
are satisfied with practices in both the sector and effectiveness of training can be assessed
through employee’s attitude towards training inputs, quality of training programs and its
application to the actual job.

Purohit (1992),
in his doctoral thesis, investigated the human resource development practices followed in
State Bank of Bikaner &Jaipur (SBBJ) and Bank of Rajasthan. The sample size consisted
of 130 bank officers for the purpose of this study. He found that there was a good
development climate in both these banks in Rajasthan. Bank had recognized the
importance and implementation of training programs. But the performance appraisal
system was of an average level. The commerce graduate employees were found more
critical of the performance appraisal system as compared to science and arts graduates. It
was also found that the dominant leadership style was adopted for the development of
employees in commercial banks.

Kumar (1996)
Ph.D. thesis, made an attempt to study HRD practices with regard to different variables
like age, sex, marital status, designation, educational qualification, the length of service,
mode of employment and contribution of the different HRD subsystems in the
development of human resource. For this purpose, 200 employees were selected as a
sample for the present study. He concluded that most of the employees got training but
variables such as age and sex were not taken into consideration during the training of
employees. He further concluded that recruitment was made according to the manpower
requirement and these variables were not taken into account at the time of recruitment,
and the majority of the employees were satisfied with the welfare facilities, performance
appraisal system of the bank and their attitude toward management was found positive.

Mahajan and Sharma (2005),

in their research paper, covered the most of the HRD concepts i.e., recruitment,selection
procedure, placement, training, promotion, wage salary, financial incentive, transfer,
deputation, industrialrelations, and political interference in the cooperative banks. A sample
of 50 employees was taken for this study.They found that human resource development
practices in the cooperative banks were not satisfactory. Employees were having a low
level of satisfaction with regards to the HRD practices followed in of these banks.

Sharma and Nayyar (2005),

in their research paper, made an attempt to examine the HRD mechanism in State Bank of
India. The study presented an overall view of HRD practices, the level of job satisfaction
and HRD climate in State Bank of India (SBI) with special reference to Chandigarh circle
which comprises Haryana, Himachal Pradesh, Punjab, and Jammu & Kashmir. He
concluded that SBI was the

largest bank with the largest manpower as compared to other commercial banks in India.
The Bank had excellent customer service and well-designed training program. Performance
appraisal system, working condition, and the organizational climate were also satisfactory.

Hassan (2006),
in their research paper, attempted to measure employee perception regarding human
resource development practices on employee development and quality orientation in
organizations. A sample of 229 employees belonging to eight organizations was taken for
the purpose of the study. A questionnaire, which measured career system, work planning
system, a development system, and self-renewal system, was used for data collection. The
results indicated that there were large variations in the HR practices adopted by the
organizations, and the combined effect of HR performance index was significant in
predicting firm performance as well as employee turnover and productivity. The study
revealed that employees‟ satisfaction with HRD climate was predicted by learning
&training system and employee development system. The results also suggested that
organization which had an adequate system of potential appraisal and promotion,
performance guidance and development would be able to promote employee trust and
satisfaction.

Mellacheruvu and Krishnamacharyulu (2008),

in their paper, had explained that recruitment was not adequate in public sector banks and
there was a shortage of employees as per requirement of the banks. Training had been a
neglected function in these banks. They also opined that the appraisal system of the
employees had been in vogue and it needed to be reformed by making it more objective
and linked to the bank objectives. They further found that rigidity in the system of rewards
and promotion had no linkage with the performance of employees and banks were
providing less compensation to their employees as compared to other organizations. It had
created the problems ofretention and succession planning in the banks. They also suggested
that banks should be given autonomy to

recruitand provide faster promotions for meritorious employees. Performance-based

promotion and reward system should be followed to build a service culture through HRD
programs.

Manjinder (2009)
examined the employees‟ perception regarding designing, implementation, and evaluation
of the training and development programs and comparative analysis of training and
development strategies in public and private sector banks. A sample of 150 employees was
taken for the purpose of the study. She concluded that both private and public sector banks
had focused on training designing part which was influenced by job requirement,
technology advancement, and internal mobility. She further concluded that both types of
banks had used the best
possible methods for the training of their employees. She suggested that training programs
should be more diversified. The benefits of these programs should be extended to all the
employees working at different levels from time to time, and e- training concept needed to
be implemented in these banks.
Pathak Neetu (2008)
has conducted a study by selecting 300 respondents from the public sector and 300
respondents from the private sector. The questionnaire was equally distributed in
supervisory/manager and general level of employees, in the Purvanchal region. The study is
based on primary data only. The objective of the study was to know the effectiveness of the
training programs and analyze the same. The study reveals that training programs are
effective in improving skills, knowledge and helps in the development of attitude. They
provide an opportunity for the worker to develop their personality, dedication towards work
and capacity to learn and group cohesiveness. However, the emphasis should be put on in
conducting technical and behavioral training. The process of training should be evaluated
after the lapse of some time.

Trivedi Vikas (2008)

in his research paper deals with a comparative account of human resource practices of
public and private sector banks and provides an insight into the different human resource
strategies in both the sectors. He has conducted a study by selecting 123 employees from
public and private sector banks. For this, he has used a structured questionnaire. He
concludes that employees in private sector banks are encouraged to work and try to be
excellent in their work, and all opportunities are provided to the employees. But in public
sector banks, employees’ promotions are given on the basis of seniority and their
hierarchical positions are based on other considerations. He suggests public sector banks
should undertake long-term training and retraining programs. And the training facilities in
public sector banks should be strengthened.

Chahal, Jyoti and Rani (2016)

examined the effect of perceived high-performance HRM practices on business
performance of employees in Indian telecommunications sector in Jammu and Kashmir in
India. The HRM practices considered in the study were extensive training, performance
management, performance appraisal, performance based compensation, empowerment
and competency development. Additionally, the authors explored the role of
organizational learning as a mediator between high-performance HRM practices and
business performance. Results of the research concluded that high-performance HRM
practices positively impact organizational business performance. It was further concluded
that organizational learning acts as a mediating variable between high-performance HRM
practices and business performance.

Bhaskar, Bhal and Mishra (2012)

studied the influence of strategic HRM practices and proactive communication during
mergers and acquisitions of Indian banks. A case study approach was used to analyse the
HRM practices employed by two different banks in India (one public sector bank and one
private sector bank). The analysis indicated that in the case of the public sector bank, the
HRM practices and proactive communications were not efficiently followed leading to a
decrease in organizational performance. In case of the private sector bank, the merger
process was handled efficiently through effective HRM practices and proactive
communication. The study concluded that effective HRM practices and communication
strategies are vital for organizational success during mergers and acquisitions.

Bhatt and Mehta (2013)

investigated the impact of HRM climate in private sector banks in Bhavnagar district in
India. Data was collected from 100 private bank employees using a structured
questionnaire. Various practices of HRM climate – training & development; performance
appraisal, motivation & rewards; job enlargement, job enrichment & job rotation; work
stress & absenteeism; job satisfaction – have been included in the questionnaire to elicit
responses from the bank employees. The results of the study indicated that the HRM
climate in banking sector needs an improvement by modifying various HRM practices.

Biswas, Giri and Srivastava (2006)

examined the role of HRM practices in improving individual performance and
organizational effectiveness among various firms in India. Data from 357 managers from
nine organisations were included in the study. 50 per cent of the sample were considered
from the manufacturing sector while the remaining sample was taken from the services
sector. The results of the study concluded that the culture and the structure of a firm
significantly and directly influence HRM practices in Indian firms. The results also
concluded that HRM practices have a significant impact on employee performance and
organizational effectiveness.

Anuradha & Prasanth (2016)

examined the employee perceptions of HRM practices among public sector banks in
Puducherry region in India. Data was collected through a structured questionnaire from
328 employees belonging to 22 different public sector banks using a multi-stage sampling
procedure. Statistical tools like t-test, ANOVA, co-efficient of variation and multiple
regression analysis were used for data analysis. The results of the study concluded that
various HRD practices have a significant impact on organizational performance of public
sector banks

Rajeev Kansal
identified various factors or characteristics such as political nterference, lack of
confidence in the banking staff, disinterestedness to maintain cost-effectiveness, lack of
confidence, impact of trade unionism, proper decentralization of power at the lower level,
lack of impartiality, fairness and security, which make a bank manager effective

Ahmad (2012)
studied the association between employee relations and employee unionisation in Indian
banking industry. The study included banks from both the public and private sectors. The
sample included 318 employees from unionized banks and 123 employees from non
unionised banks. Data was collected using a structured questionnaire with 52 elements on
employee relations. Data was analysed using statistical tests like mean, standard
deviation, chi square test, t-test and z-test on various dimensions. The analysis indicated
that non-unionised bank employees experienced higher satisfaction on all the elements
except unionism and job security. The results concluded that non-unionised employees
perceived better employee relations in comparison to unionized e

Jha and Mishra (2015) studied the impact of HRM practices on performance of
employees in Indian banking industry. The authors concluded that various remedial HRM
measures can be taken to improve the employee performance in banks. The measures
suggested include staff meetings, brain storming sessions, study circles and quality
circles.

Joshi (2016) analysed the influence of HRM practices on the job satisfaction levels of
employees in selected branches of State Bank of India (SBI) in Gujarat state in India. The
sample size considered for the study was 100 using convenient sampling method. The
results of the research indicated that HRM practices influence the job satisfaction level of
the employees. The study concluded that SBI needs to make efforts to improve co-worker
relations, work environment and compensation issues to achieve job satisfaction among
the employees.
  HUMAN RESOURCES MANAGEMENT

Chapter 1

For any organization to function effectively, it must have resource of men (Human
Resource), money, materials and machinery. The resources by themselves cannot
fulfill the objectives of an organization, they need to be collected, coordinated and
utilized through human resources. And, the effective management of human resources
is also vital. Hence, Human Resource Management (HRM) has emerged as a major
function in organizations. Human Resource Management is the organizational
function that deals with issues related to people such as compensation,
hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication,
administration, and training.

The administrative discipline of hiring and developing employees so that

they become more valuable to the organization.

Human Resource management includes:

1. Conducting job analyses,

2. Planning personnel needs, and recruitment,
3. Selecting the right people for the job,
4. Orienting and training,
5. Determining and managing wages and salaries,
6. Providing benefits and incentives,
7. Appraising performance,
8. Resolving disputes,
9. Communicating with all employees at all levels. Formerly called personnel
management.
10.Maintaining awareness of and compliance with local, state and federal labor
laws.
11.These are also called as functions of human resource management for the
purpose of effect you utilization of human resource.
The ten "Cs" of human resources management are: cost effectiveness, competitive,
coherence, credibility, communication, creativity, competitive advantage, competence,
change, and commitment. The ten "Cs" framework was developed by Alan Price in
his book "Human Resource Management in a Business Context".
The HR Director is a top-level manager responsible for the administration of all
human resource activities and policies. The director oversees compensation, benefits,
staffing, affirmative action, employee relations, health and safety, and
training/development functions. They also supervise professional human resources
staff.

 Definitions:
Many great scholars had defined human resource management in different ways
and with different words, but the core meaning of the human resource
management deals with how to manage people or employees in the
organization.

Edwin Flippo defines - HRM as “planning, organizing, directing,

controlling of procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.”

The National Institute of Personal Management (NIPM) of India has

defined human resources – personal management as “that part of management
which is concerned with people at work and with their relationship within an
enterprise. Its aim is to bring together and develop into an effective organization
of the men and women who make up enterprise and having regard for the well –
being of the individuals and of working groups, to enable them to make their
best contribution to its success”.

According to Decenzo and Robbins, “HRM is concerned with the people

dimension” in management. Since every organization 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 organization is essential to achieve organsational objectives.
This is true, regardless of the type of organization – government, business,
education, health or social action”.
 OBJECTIVES OF HUMAN RESOURCE MANAGEMENT:

1. Societal objective: To be socially responsible to the needs and challenges of

society while minimizing the negative impact of such demands upon the
organization. The failure of organizations to use their resources for society's
benefit may result in restrictions. For example, societies may pass laws that
limit human resource decisions.

2. Organizational objective: To recognize that HRM exists to contribute to

organizational effectiveness. HRM is not an end in itself; it is only a means to
assist the organization with its primary objectives. Simply stated, the
department exists to serve the rest of the organization.

3. Functional objective: To maintain the department's contribution at a level

appropriate to the organization‟s needs. Resources are wasted when HRM is
more or less sophisticated than the organization demands. A department's level
of service must be appropriate for the organization it serves.

4. Personal objective: To assist employees in achieving their personal goals, at

least insofar as these goals enhance the individual's contribution to the
organization. Personal objectives of employees must be met if workers are to be
maintained, retained and motivated. Otherwise, employee performance and
satisfaction may decline, and employees may leave the organization.

 NATURE OF HUMAN RESOURCE MANAGEMENT:

Human Resource Management involves management functions like

planning, organizing, directing and controlling

 It involves procurement, development, maintenance of human resource.

 It helps to achieve individual, organizational and social objectives.
 Human Resource Management is a multidisciplinary subject. It includes the
study of management, psychology, communication, economics and sociology.
 It involves team spirit and team work.
 It is a continuous process.
  ADVANTAGES / BENEFITS / SIGNIFICANCE / IMPORTANCE /
NEED OF HUMAN RESOURCE MANAGEMENT:

Human Resource Management becomes significant for business organization due to

the following reasons.

 Objective: Human Resource Management helps a company to achieve its

objective from time to time by creating a positive attitude among workers.
Reducing wastage and making maximum use of resources etc.

 Facilitates professional growth: Due to proper Human Resource policies

employees are trained well and this makes them ready for future promotions.
Their talent can be utilized not only in the company in which they are currently
working but also in other companies which the employees may join in the
future.

 Better relations between union and management: Healthy Human Resource

Management practices can help the organization to maintain co-ordinal
relationship with the unions. Union members start realizing that the company is
also interested in the workers and will not go against them therefore chances of
going on strike are greatly reduced.

 Helps an individual to work in a team/group: Effective Human Resource

practices teach individuals team work and adjustment. The individuals are now
very comfortable while working in team thus team work improves

 Identifies person for the future: Since employees are constantly trained, they
are ready to meet the job requirements. The company is also able to identify
potential employees who can be promoted in the future for the top level jobs.
Thus one of the advantages of HRM is preparing people for the future.
 SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of Human Resource Management refers to all the activities that come
under the banner of Human Resource Management. These activities are as follows.

 Human resources planning: Human resource planning or 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 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 health 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.

The Human Resource Officer is responsible for providing support in the various
human resource functions, which include recruitment, staffing, training and
development, performance monitoring and employee counseling.
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