it Human Resource Management is yement function involving prog n Resource Management is a manag n x rocurement ; a aR resources, train and develop their competencies, motivate them, evar them effectively and create in them an urge to be part of the Management team whose aim should be render, dedicated, committed service for the success and growth of the organisation. The term human resources spells the total sum of all the components (like si, creative abilities) possessed by all employees and other persons (like self employed, employees, owners etc.) who contribute their services to attain the organisational objectives and goals. Human resources include human values, ethos. The term Human Resource Management is much more broarder compared to the term personnel management either at the component's level or in coverage at organisation level, The comparison Personnel vs Human Resource Management is presented in Fig, 11.1 below. Personnel Management Human Resource Management (1) Personnel Management is management of people (1) HRM is management of employees’ skills, knowledge, abilities, talents, aptitude, creative abilities. (2) Personnel Management views man as economic person (2) HRM views man not only as economic person but looks at him as a full person — taking social and psychological factors in views. (3) Employee is treated as cost centre and hence controls cost of “Personnel” in the organisation. (3) Employees are treated as profit cente and hence they invest in Lae Resources Development — and fi accrue from this resource. (4) Employee is viewed as a tool or i is ‘a resource: caulpment which can the purchased and (0) Emploves ie testoe 2 ‘used, (5) i fit (5 Prloves are uted fr organisational. | (5) Employees ae used for mubslt 5 — both for organisation and 2 own.mio SCOPE AND OBJECTIVES OF HUMAN py 47 TON, es rganisational obj imi a objectives. Thi sig toall vpes of organisations, 2. industy, business, rere ceniton oF iy or social welfare of the people. i lent, education, hea! Human Resources Management refers to activitie aplenented to maximise organisational as well as ¢ (0) Scope: The scope of Human Resource acivities in the working life of the employee fro1 organisation until he leaves, retires come under management. The most important activities undertaken are (1) Planning, analysis, procurement, recruitment, selection, induction, placement, training and development (2) Compensation, rewards, benefits, retiral benefits, medical and, health care (3) Motivation - Motivational aids, bonus, incentives, profit sharing non-monetary benefits are’ esteem satisfaction, career development, growth, decision making, delegation of authority and power, promotion, etc. (4) Employee Relations - Grievance handling, participation, collective bargaining and other aspects of cordial relations conducive to mutual understanding and trust. (5) Employee evaluation and performance improvement, Human Resource, Audit; and Human Resource Accounting, s and functions designed and mployees effectiveness, Management is vast. All major m the time of his entry into the the purview of human resource Job design, job (c) Objectives : The objectives of human Resource Management are: () To provide, create, utilise and motivate employees to accomplish organisational goals. (i) To secure integration of individuals and groups in securing organisational effectiveness. (ii) To cre ities, to provide facilities, necessary motivation to individuals Sia fer thelr growth with the growth of the organisation by training and development compensation. : : iv) To provide attractive, equitable, incentives, rewards, benefits, social security Measures, to ensure retention of competent employees. (Y) To maintain high morale, encourage value system and cr Of trust, mutuality of interests. : os () To provide opportunities for communication expression. appreciation, recognition and provide fair efficient a irit and encourage (i) To create a sense and feeling of belongingness team spirit a eate environment cipation, Suggestions from employees. fn js ( es, adopting To ensure that, there is no threat of unemployment nen one for @ policy recognising merit and employee contr 4 Stability of employment. (vii)48 A Textbook of Human Resource Management FUNCTIONS OF HUMAN RESOURCES DEPARTMENT In order to realise the objectives stated above HRM must perform functions. The scope and objectives stated above are indicative of fun ton manager in charge of human resources department must perform. The Pe “8 below gives the objectives and the functions which are to be performed tg <2 ia those objectives. HRM Objectives Functions to be Performed (1) Social (Towards society) (1) Legal compliance (2) Benefits (3) Union Management relations (2) Organisational Objectives (1) Human Resource Planning (2) Selections Training and Development (3) Employee Relations (4) Employee Evaluation Assestment, Appraisal (3) Functional objectives (1) Appraisal (2) Placement (4) Personal objectives (1) Training & Development (towards employees) (2) Appraisal (3) Assesment/Placement (4) Compensation Fig, 11.2 Management of human resources basically aims at contributing human efforts through personnel employed in the organisation towards achieving the objectives of the organisation, and these should come out willingly with dedication and high degree of morale amongst the employees. HRM should be viewed as part of strategic managerial function in the development of business policy in which it plays both a determining and contributory role. HRM represents a wider conception of the employment relationship to incorporate an enabling and development role for the individual employee. HRM is essentially a strategically driven activity which is not only a major contributor to that Process but is a determinative part of it. HRM systems are proactive, and are anticipated to bring about a cultural change in the organisation, It seeks power equalisation for trust and collaboration. It opens channels of communication to build trust and commitment, Its policies are goal oriented with Participative style. The following Fig. 11.3 below briefly enunciates the functions of HRM.Human Resource Management 9 Mission and Objectives of Organisation Strategies, Objectives, Policies of HRM Managerial Function of HRM pranning Organising Directing Controlling Operative Function Employment Human Compensation Employee Resources Rewards Relation Development ‘The operative functions can be further subdivided as follows: Fig. 11.3 OPERATIVE FUNCTIONS OF HRM Employment Human Compensation Employee Resources Rewards Relations Development Remuneration Communication Job Motivation Organisational Training & Evaluation Daign Development Salary & Morale benefits Job Satisfaction Performance ‘ob Design Appraisal Administration Grievances Incentives Redrassal ‘ib Analysis Performance Rewards Discipline Improvement Maintenance Homan Resources + Quality of oe Planning cipal t econ Management Quality circles. Paes Development Organisation Development Organisation oa CeeMANAGERIAL FUNCTIONS “Management is a multi-purpose organ which has three jobs, two of which are directly related to personnel managing a business: “managing managers’ and ‘managing workers’ and the work.” Lawrence Appey says that “Management is the accomplishment of results through the efforts of other people.” In the opinion of Harold Koontz, “It is the art of getting things done through people and with informally organised groups.” In our view, management may be thought of as the Process of allocating an organisation's inputs (human and economic resources) by planning, organising, directing and controlling for the purpose of, Producing outputs (goods and services) desired by its customers so that organisation objectives are accomplished. In the process, work is performed with and through organisation personnel in an everchanging business environment. Management is, thus, personnel administration... It is the development of the people and not the direction of things.. Managing people is the heart and essence of being a manager. Thus, a Personnel Manager is a manager and as such he must perform the basic functions of management. He exercises authority and leadership over other personnel. His functions involve (what Luther Gullick calls) POSD CORB, ie, planning, organising staffing, directing, co-ordinating, reporting and budgeting the work of those who are entrusted with the performance of operative functions.® 'n other words, managers procure, process and peddle, find and employ resources, develop services, and find markets for their output.A Textbook of ‘Human Resource Management = 4 course of action. According to Allen, » Teny is of the view that “planning is the foundatig, ny enterprise.” Planning is the determination of y,2 procedures, and standard needs to accompiis, fact, “planning today taece tomorroy,» a ability to think, to predict, to analyse, a Planning is a hard job, ice SS ee Be ia Bernonnel ad (core a to come to decisions, 10 Tonment. They bridge the gap between where they aye comple’, dyna oe For this purpose they determine personnel programmes and where they want fo 90. TO" important features of planning are research ang se a vethace two are inlr-telated, for forecast is possible only as a result research. Personnel administration should be able to predict send wages, in labour market, in union demands, in other benefits and in personnel policies ang programmes. The task of forecasting personnel needs in tamer to changes if production or seasonal variations and the levelling out of differences in production is extremely important, both for employees and for management. Therefore, planning ‘or decision-making has to be undertaken much in advance of an action so that unforeseen or anticipated problems and events may be properly handled. This is also stressed by the saying: “Good managers make things happen.” (a) Planning: Is a pre-determines a trap laid to capture the future. ‘of most successful actions of al be plans, strategies, programmes, Po! ice i the desired organisation objectives. In (b) Organising: After a course of action has been determined, an organisation should be established to carry it out. According to J.C. Massie, “An organisation is a structure, a framework and a process by which a cooperative group of human beings allocates its tasks among its members, identifies relationships and integrates its activities towards common objectives.” This is done by designing the structure of relationships among jobs, personnel and physical factors. An organisation is the wedding of authority and responsibility because, in its essentials, it consists of the assignment of specific functions to designated person or departments with authority ei ae fen carried out, and their accountability to management for the resuls | It seeks to achieve the maximum return with minimum effort by t preciation of the benefits of delegation and eelesion, In the words of Drucker: “The right organisational structure is the "y foundation; without it, the best performance in all other areas 0 management will be ineffectual and frustrated,” (c) Directing (Motivating, subordinates at any level is a base to McGregor, “many managers woul would be at least doubled if they Actuating or Commanding): Directing the function of the managerial personnel. According | Id agree that the effectiveness of their organisalit Present in their human resources” py Sever how to tap the unrealised potenti and asking them (either ence, Ditecting is involved with getting persons toget™ effectively for the Shee rough command or motivation) to work willingly dissemination of orders within oy esW"eted goals. Directing deals not only wth te the acceptance and execution of there ston Units and departments, but also ‘afety instalments, wage-rate rang" Pac ges are all ae pi department. Final action is taken only whee snc feds eeaaibly oftheFunctions of Personnel Management 29 securing acceptance and execution fe aa clieal general i m a. Horton of individuals and groups. Otherwise, the aceel verge mount of motel below that which is desired, performance level Co-ordinating and Controlling: Coordinatir sh d ating activities in an organisation, so that Sin aca ‘in ae it of ard Mizon purpose is achieved. In the words of Teny, “Co-ordination deak with th 20" blending efforts in order to ensure a successful attainment of an objective” Co-ordination in the management of Personnel takes place at all levels, from the top management through to the supervisor and those for whom he is responsible. The nel department has to co-ordinate the tasks of developing, interpreting and reviewing personnel policies, Practices and Programmes, such as safety programmes, reioyer benef, Job evaluation, training or development, and communication, ‘hese activities are generally put into operation by and through the line people; but itis the personnel department which follows them through, unifies them, and checks i sO 1QI252 452 .3)ma7 Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the plan that has been adopted, the instructions issued and the principles established. It is greatly concerned with actions and remedial actions. ‘ig not just score-keeping. It is not just plotting the course and getting location reports; but rather it is steering the ship.” It is through control that actions and operations are adjusted to pre-determined standards; and its basis is information in the hands of the managers. “By check, analysis, and review, the personnel department assists in realizing the personnel objectives. Auditing training programmes, analysing labour turn-over records, directing morale surveys, conducting separation interviews, interviewing new employees at stipulated intervals, comparing various features of the programme with other organisation programmes in the area, industry and nation — these are some of the means for controlling the management of personnel.” This monitoring process provides management with actual performance information for comparison with pre-determined performance standards. If there are unavoidable deviations from the planned performance, corrective action can be taken immediately. This last function of control closes the system loop by providing feedback of significant deviations from the planned performance. The feedback of pertinent information can affect the inputs or any of the management functions. Though all the above functions are performed at all levels of management, the amount of time devoted to each function varies for each management level (See Fig. 2.3). The top management performs planning functions more than does € Supervisory management. On the othet hand, supervisors at the third rung of the Management pyramid devote more of their time to directing and controlling Production, OPERATIVE FUNCTIONS actvine® Operative functions of personnel management are concerned with he maint®S SPecifcally dealing with procuring, developing -eompenaning, OTe a neon? ® efficient work force. These functionsFig. 2.3 Management Functions and Managerial Levels 4 x kin (1) The procurement function is concerned with the obtaining of a aes and number of personnel necessary to accomplish an organisation’s goals. with specifically with such subjects as the determination of manpower requiremen' their recruitment, selection and place (comprising activities to screen and ig Personnel, including application forms, psychological tests, interviews, medical cheel ° up reference calling), induction, follow-up, transfers, lay-offs, discharge and separation, etc. ments, (2) The development function is concermed with the personnel development of employees by increasing their skill through training so that job performance is properly achieved. Drafting and directing training programmes for all levels of employees, arranging for their on-the-job, office and vestibule training, holding seminars and conferences, providing for educational and vocational counselling and appraising employee potential and performance are undertaken under this function. (3) The compensating function is concemed with securing adequate and equitable remuneration to personnel for their contribution to the attainment of organisational objectives. Functions related to wage surveys, establishment of job classifications, job descriptions and job analyses, merit ratings, the establishment of wage rates and wage structure, wage plans and policies, wage systems, incentives and profit-sharing plans, etc., fall under this category. (4) The integration function: after the employee has been procured, his skill and ability developed and monetary compensation determined, the most important yet difficult of the personnel management is to bring about an “integration” of human resources with organisation, and to cope with inevitable conflicts that ensue. “Integration” is concerned with the attempt to effect a teasonable reconciliation a individual, societal, and organisation interests. It rests upon the Premise that sgt if int overlappings of interests do exist in the organisation in such programmes, as jobFunctions of Personnel Management 31 at, job evaluation, variable compensation plans, ents uctivity would coincide with arrelogean ta a ea ee ae MOF signment to narrow and repetitive tasks, meeting high output standards, ee of managerial decisions For this reason, organisations have disciplinary programmes as well as some freedom to do away with the services of particular ove On the other hand, there are certain things that employees desire which fhe organisation is reluctant to provide, e.g,, increased wages, totally safe working conditions, time off with pay, shorter hours of work, premium pay for overtime work, ge. TO get these benefits, outside pressure might be brought upon the employers. Managerial activities that bring about a reasonable integration of human resources andthe organisation objects, are termed as “human relations.” The goal is to lead to productive and creative collaboration toward mutual objectives. ‘Human relations’ imme tend to decrease accidents, absenteeism, turnover and operating errors, while simultaneously raising morale, quality and productivity such programmes also ent undesirable behaviour such as sabotage, insubordination, strikes, etc. All these problems are handled under grievance procedure, disciplinary action and labour union programmes. (5) The maintenance function deals with sustaining and improving the conditions that have been established. Specific problems of maintaining the physical conditions of employees (health and safety measures) and employee service programmes are the responsibility of the personnel department. Flippo rightly says: “The purpose of all of these activities is to assist in the accomplishment of the organisation’s basic objectives. Consequently, the starting point of personnel management as of all management, must be a specification of those objectives and a determination of the sub-objectives of the personnel function. ‘The expenditure of all funds in the personnel department can be justified only in so far as there is a net contribution toward company objectives.” It may be noted that the personnel management cannot afford to lay greater emphasis on one and neglect the other two major functions. In this connection the observations of John F. Mee merit mention: “It is essential to grasp the significance ofthis dual division of personnel functions if the mistake of becoming pre-occupied with the demand of detailed problems to the neglect of managerial duties is to be avoided. It is easy, as many executives have learned to their regret, to become so busy with such tasks as hiring, transferring, counselling, and training that they fail to fotesee the shifting conditions which call for changes in operative functions; they fail to recognise the work of subordinates satisfactorily and they fail to keep a good check-up on the work of subordinates.” CLASSIFICATION OF PERSONNEL FUNCTIONS BY SOME AUTHORS Below are given some important classifications of personnel functions made by pers in the field: a Yoder’s Classification: According to Yoder, in a typical industrial relations Personnel department, the principal activities of manpower management are: ( Setting general and specific management policy for relationships and establishing and maintaining a suitable organisation for leadership and co- Operation.1.8 Role of HRM Therole of HRMis to plan, develop and administer policiesand programs designed to make optimum use ofan organizations human resources. It is that part of management which is concemed withthe peopke at work and with their relationship within enterprises. Its objectives are: (a) effective utilization of human resources, (b) desirable working relationships among all members of the organizations, and (c) maximum individual development. Human resources function as primarily administrative and professional. HR staff focused on administering benefits and other payroll and operational functions and didn’ tthink of themselves as playing a part in the firm’s overall strategy: HR professionals have an all encompassing role, They are required to have a thorough knowledge of the organization and its intricacies and complexities. The ultimate goal of every HR person should be to develop a linkage between the employee and organization because employee’s commitment to the organization is crucial The first and foremost role of HR personnel isto impart continuous education to the employees about the changes and challenges facing the country in general and their organization in particular. The employees should know about the balance sheet of the company, sales progress, and diversification of plans, share price movements, turnover and other details about the company. The HR professionals should impart such knowledgeto all employees through small booklets, video films and lecturesThe primary responsibi sof Human Resource managers are ‘To develop thorough knowledge of corporate culture, plans and policies. ‘To act as an internal change agent and consultant ‘To initiate change and act as an expert and facilitator ‘To actively involve in company’s strategy formulation ‘To keep communication line open between the HRD function and individuals and groups both within and outside the organization’ ‘To identify and evolve HRD strategies in consonance with overall business strategy. To facilitate the development of various organizational teams and their working relationship with other teams and individuals, To try and relate people and work so that the organization objectives are achieved effi effectively. To diagnose problen areas. nily and and determine appropriate solution particularly in the human resource ‘To provide co-ordination and support serviees for the delivery of HRD programmes and services ‘To evaluate the impact of an HRD intervention or to conduct research so as toidentif, develop or test how HRD In general has improved individual and organizational performance. Different management gurus have deliberated different roles for the HR manager based on the major responsibilities that they fall fill in the organization. Few of the commonly accepted models are enumerated below. Pat Mc Lagan has suggested nine roles that are played by HR practitioners To bring the issues and trends concerning an organization's external and intemal people to the attention of strategic decision makers and to recommend long term strategies to support organizational excellence and endurance ‘To design and prepare HR systems and actions for implementation so that they can produce ‘maximum impact on organizational performance and development. To facilitate the development and implementation of strategies for transforming one’s own organization by pursuing values and visions. ‘To create a positive relationship with the customer's by providing them with the best services; to utilize the resources to the maximum and to create commitment among the people who help the organization to meet the customers needs whether directly connected or indirectly connected to the organization. ‘To identify the learning needs hence to design and develop structured learning programmes and materials to help accelerate learning for individuals and groups.1.6 Objectives of HRM The primary objective of HRM is to ensure the availability of competent and willing workforce to an organization. The specific objectives inchude the following: \) 2) 3) 4) 5) Human capital : assisting the organization in obtaining the right number and types of employees to fulfill its strategic and operational goals Developing organizational climate: helping to createa climate in which employees are encouraged to develop and utilize their skills to the fullest and to employ the skills and abilities of the workforce efficiently Helping to maintain performance standards and inerease productivity through effective job design; providing adequate orientation, training and development; providing performance-related feedback; and ensuring effective two-way communication Helping to establish and maintain a harmonious employer/employee relationship Helping to create and maintain a safe and healthy work environment6) i] 8) % Developing programs to meet the economic, psychological, and social needs of the employees and helping the organization to retain the productive employees Ensuring that the organization isin compliance with provincial/territorial and federal laws affecting the workplace (such as human rights, employment equity, occupational health and safety, ‘employment standards, and labour relations legislation). To help the organization to reach its goals To provide organization with well-trained and well-motivated employees To increase the employees satisfaction and self-actualization 10) To-develop and maintain the quality of work life 11) To communicate HR policies o all employees 12) To help maintain ethical polices and behavior. The above stated HRM objectives can be summarized under four specific objectives: societal, organizational, and functional and personnel, y y 3) 4) Figure 1.2: Objectives of HRM Societal Objectives: seck to ensure that the organization becomes socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. The failure of the organizations to use their resources for the society’s benefit in ethical ways may lead to restriction. Organizational Objectives: it recognizes the role of HRM in bringing about organizational effectiveness, It makes sure that HRM isnot a standalone department, but rather ameans to assist the organization with its primary objectives. The HR department exists to serve the rest of the organization. Functional Objectives: is to maintain the department’s contribution at a level appropriate to the, organization’s needs. Human resources are to be adjusted to suit the organization’s demands. The department's value should not become too expensive at the cost of the organization it serves. Personnel Objectives: itis to assist employees in achieving their personal goals, atleast as far as these goals enhance the individual's contribution to the organization. Personal objectives of employees must be met if they are to be maintained, retained and motivated. Otherwise employee performance and satisfaction may decline giving rise to employee tumover,Key Characteristics of HRM 1. People Oriented This essential HRM feature is rather obvious. But, of course, humans are what human resource management is all about. Therefore, people haveto be the focus of successful HRM While managing their affairs at work is a given, excellent HR management considers everything that surrounds us as people HRM teams are people too. So make sure you dont discount the human factor of the team that manages the rest of your team. A business considerate of its HRM team is likely to have one that is. courteous tots employees 2 Employee Oriented This vital HRM characteristic means making the lives of employees at work easy. it includes not just managing them but also remaining accessible for all queries and support. The quicker HR professionals understand that a business runs most efficiently when its employees are happy, the better the outcome. A key function and feature of HRM should be its ability to create an atmosphere where employees feel like coming in and giving it their all An example where being employee-oriented should be a must-have characteristic of HRM is when an employee is consistently late for work. Then, it isnt time to walk up to them and hand them a warning letter. Instead, investigate what's going on in their livesthat you could help with Understanding leaves and absence is an intelligent way to curb it, or at least prepare for it3.Gives Opportunities This characteristic of HRM could have e rather large scope. However, the focus of this HRM feature should be to let employees know that there is room for career grawth. HR management teams must help employees set realistic, time-bound goals for their growth in the organization A question that always arises here is, what do we do when we have too many tenured employees? ‘Well, find opportunities where you can leverage their skills snd use them to help the company grow. If you still have too many tenured employees who don't have enough work, you need to rethink your resource management strategy. Another thing that could be done (but rarely is) is to refer employees to other companies. Yes, the ‘world is competitive. However, that doesn't mean that you can't help someone out. In turn, that help will come back around to serve your company in the future. Ex-employees, if treated right, can be @ boon during hard times. 4.De in Oriented Date gathering is relatively easy in today's world. However, what gets done with that data is essential. Therefore, a crucial feature of HRM is to crunch data and provide a weslth of accurate, helpful information, Having the facts grestly facilitates decision-making. In many cases, this means looking into the future ‘and analyzing potential outcomes before they happen. 5. Development Oriented It is @ vital, two-pronged characteristic of HRM. ‘One aspect of this HRM feature is to ensure the development of employees. Plan training schedules well in advance to meet current and future growth requirements and ensure thet the employees are meeting business demands. An employee who is given knowledge naturally has more confidence in ‘executing their job better ‘The other part of this feature of HRM is to develop HRM strategies. These have to Keep up with the pace of the business. Preparing agile strategies helps ensure that HRM is always practical and rises to meet the demands of employees, management, and competitors.Indi ual Focus Having a plan as 8 whole is vital for any team, But, equally important is to Keep individual goals in focus A.smart thing to do for smooth HRM is to take the time to meet individual employees and see if they are happy. But, unfortunately, a survey daesn't always cutit, Make it personal for your personnel! An important function and characteristic of HRM is the team's bility to develop and nurture genuine relationships with people. It ties in with the first HRM feature of being people-oriented but goes a step further. Personal relationships with employees can garner genuine feedback. You get to understand their behavior in general, the social aspects of their lives, and their emotional well-being to implement ways thet improve the employes experience. In @ world where pressure is ever-increasing, msnaging ‘employees at work and their overall well-being should be prioritized, 7.Continuous Function This HRM characteristic is self-explanatory. How often does it feel like the office is falling apart when the HR manager takes a sick day? HRM is 8 constant flow of information and action. Inaction in the HRM aspect could be disastrous. Therefore, vital characteristic of HRMis constantly being aware of how employees are doing, how effectively they are doing it, and how they feel about performing their jobs. 2. Future Oriented Itis an essential characteristic of HRM and could be considered one of the crucial HRM features. Not ‘only does this tie in very closely with many other attributes on this list, but it is also @ function that needs a focus of its own. Preparing for the future is vital, whether itis the future of the company’s growth, changes in culture, ‘change in the work environment, or meeting new trends or future employee requirements. ‘With the right tools at your disposal and agile plans in place, being future-oriented is a foolproof HRM feature to safeguard the business from any unexpected pitfalls. s.Universal HRM is. function that applies across every type of organization theres. For example, a two-person ‘operation needs some level of HRM, as does a 500-employee operation. Universality is a core feature of HRM.HRD deals with employee benefits, compensation, performance and reward management, wellness, safety, organizational development, employee relations, motivation, etc. HRD plays a significant and strategic role in managing people as well as workplace culture. It can hugely contribute ta.a company’s growth and stabil y if implemented effectively Relevance: Human Resource Development is the backbone of the organization as it deals with each and every aspect of the employees. Multidisciplinary in Nature: it applies most of Law, Psychology, Sociology, and Economics disciplines. Usefulness: Principles of Human Resource Management are useful for HR practitioners and professionals to determine how strategic Human Resource Management affects three stakeholders: 1. Individual employees of the concerned organization. 2. The society and 3. The organization itself iples of Human Resource Management: Key Principles Key Principles of HRM: Human Resource Principles are a fundamental truth established by research, investigation, and analysis. ‘The following can also be considered as the key principles of Human Resource Management: Principle of individual Development: To offer an equal opportunity to every employee so as to realize his/her potential and capability Principle of the Scientific Selection: To place the right individual in the right job. Principle of the Free Flow of Communication: To open & encourage upward, downward, formal, and informal communication, Principle of Participation ‘0 associate with employees at each and every level of decision-making. \ciple of a Fair Remuneration: To pay fair and equitable wages & salaries to talented employees. Principle of an Incentive: To review the performances of the employees and to reward them accordingly. \ciple of the Dignity of Labor: To treat each and every employee with respect and dignity. Principle of Labor-Management co-operation: To promote industrial relations and labor laws. iple of Team Spirit: To ensure co-operation & teamwork amongst the employees. le of Contribution to National Prosperity: To provide a higher work purpose to all the employees and to contribute to the national prosperity and integrity.