HRM CHAPTER-1

Human Resource management:-

HRM is the process of accomplishing organizational objectives by acquiring,
retaining, terminating, developing and properly using the human resources in an
organization.
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Donnelly and Gibson,
HRM refers to 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.
-
Gary Dessler

Importance of HRM
Human Resource Management (HRM) plays a crucial role in the success and
growth of organizations. Let's delve into the importance of HRM in detail:
Attract and retain talent: HRM is responsible for designing effective recruitment
strategies to attract top talent to the organization. They create compelling job
descriptions, conduct interviews, and offer competitive compensation packages
to entice the best candidates. Moreover, HRM also plays a pivotal role in
retaining valuable employees by implementing employee engagement
programs, recognition initiatives, and fostering a positive work environment.
Train people for challenging roles: HRM is responsible for identifying the skills
and competencies required for different job roles within the organization. They
design and implement training and development programs to equip employees
with the necessary knowledge and skills to handle challenging roles effectively.
This ensures that the workforce remains adaptable and capable of meeting the
organization's evolving needs.
Develop skills and competencies: HRM focuses on nurturing the skills and
competencies of employees, helping them grow both professionally and
personally. By investing in employee development, organizations can build a
more skilled and knowledgeable workforce, contributing to long-term success.
Promote team spirit: HRM fosters a sense of unity and collaboration among
employees. They organize team-building activities, workshops, and events that
encourage employees to work together cohesively. A strong team spirit boosts
overall productivity and efficiency.
Develop loyalty and commitment: When HRM invests in employees' well-
being, career growth, and recognizes their efforts, it fosters a sense of loyalty
and commitment. Employees are more likely to stay with the organization in the
long run when they feel valued and supported.
Increase productivity and profits: A well-managed HR function ensures that
employees are motivated, adequately trained, and equipped to perform their
tasks efficiently. This leads to increased productivity, which, in turn, positively
impacts the organization's profitability.
Improves job satisfaction: HRM strives to create a positive work environment
and address employee concerns effectively. When employees feel satisfied with
their jobs, they are more likely to be productive and less prone to job-hopping.
Enhance the standard of living: Through various employee benefits, HRM helps
improve the standard of living for employees and their families. This includes
healthcare benefits, retirement plans, paid leave, and other perks, which
contribute to employees' overall well-being.
Generate employment opportunities: HRM is involved in workforce planning
and expansion strategies. By aligning the organization's staffing needs with
business goals, HRM creates employment opportunities for job seekers and
contributes to the economic growth of the region.
Greater trust and respect: A well-functioning HRM department earns the trust
and respect of employees by being fair, transparent, and supportive. This
positive relationship between HRM and employees fosters an environment of
open communication and mutual respect.
In conclusion, HRM plays a critical role in managing an organization's most
valuable asset—its people. By focusing on talent attraction, development, and
retention, HRM contributes to the overall success and growth of the
organization while ensuring employee satisfaction and well-being

Importance of HR planning
Reservoir of talent :- retained skilled people
Prepare people for future- motivated and developed to meet future needs
Expand or contract:- continuous supply of people to handle challenging jobs
Cut cost:- HR budget
Succession planning :- stars are picked for challenging projects.

Evolution of HRM Period before the industrial revolution: During this phase,
which spanned most of human history, there was no formal HRM as we
understand it today. People worked in small, traditional, family-based setups or
agrarian societies. There were no large organizations or industries requiring
systematic management of human resources. Work and labor were often
organized around traditional customs and practices, and the roles and
responsibilities were primarily defined by social norms.
Period of industrial revolution (1750 to 1850): The industrial revolution marked
a significant shift in society, as it moved from agrarian economies to
industrialization. Large factories and industries emerged, and labor moved from
decentralized, traditional setups to centralized factories in urban areas. This
transformation led to the need for managing the workforce in a more systematic
and structured manner. However, during this period, the approach to labor
management was often exploitative, and employee welfare was generally
neglected. Workers faced harsh working conditions, long hours, and low wages.
Post-Industrial Revolution (after 1850 to 1947): In the late 19th and early 20th
centuries, concerns about labor welfare and the impact of poor working
conditions began to gain attention. Labor unions and worker movements
emerged to advocate for better rights and working conditions. This era
witnessed the gradual development of labor laws and regulations aimed at
protecting workers' rights. Industrial relations started to take shape, focusing on
managing the relationship between employers and employees. Basic forms of
personnel management began to emerge, and employee records and welfare
activities became more organized.
Post-independence period after 1948 to the 1990s: After gaining independence,
many countries focused on economic development and nation-building. This era
witnessed the formalization and professionalization of HRM. The personnel
management approach evolved into a more comprehensive Human Resource
Management approach, emphasizing not only administrative functions but also
strategic management of human capital. Organizations recognized the value of
human resources as a competitive advantage, and HRM began to play a more
strategic role in organizational growth. Concepts such as performance
management, training and development, talent acquisition, and employee
engagement gained prominence.
Throughout these phases, HRM evolved in response to societal changes,
industrial developments, and a growing understanding of the importance of
human resources in organizational success. Today, HRM continues to adapt and
evolve, incorporating technological advancements, globalization, diversity and
inclusion, and a greater focus on employee well-being and work-life balance. As
the business landscape continues to change, HRM will remain a critical function
in ensuring an organization's success by effectively managing its human capital.

Human resource management, Human capital management, Strategic human

resource management
HRM (Human Resource Management), HCM (Human Capital Management),
and SHRM (Strategic Human Resource Management) are related concepts in
the field of managing human resources within organizations. While they share
some similarities, they also have distinct focuses and approaches. Let's explore
each of these terms:
HRM (Human Resource Management): Human Resource Management (HRM)
refers to the comprehensive set of activities and practices that an organization
uses to effectively manage its human resources. It encompasses a wide range of
functions, including recruitment, selection, training and development,
performance management, compensation and benefits, employee relations, and
workforce planning. The primary goal of HRM is to ensure that an
organization's workforce is well-managed, motivated, and aligned with the
organization's objectives. HRM focuses on both administrative tasks and the
development and engagement of employees to contribute to the organization's
success.
HCM (Human Capital Management): Human Capital Management (HCM) is a
more strategic and holistic approach to managing human resources. It goes
beyond the traditional HRM functions and emphasizes the idea that employees
are valuable assets or "human capital" to an organization. HCM views human
resources as a source of competitive advantage and aims to optimize the
contribution of employees to achieve business goals. In addition to the core
HRM functions, HCM also focuses on talent acquisition, talent development,
workforce analytics, employee engagement, and creating a positive
organizational culture. The key distinction of HCM from HRM is its strategic
orientation, aligning human capital strategies with the overall business strategy.
SHRM (Strategic Human Resource Management): Strategic Human Resource
Management (SHRM) is an approach that integrates HRM and business
strategies. It involves aligning HR practices and policies with the organization's
strategic objectives. SHRM recognizes that human resources can play a critical
role in achieving competitive advantage and long-term success. HR
professionals in a SHRM framework work closely with top management to
identify human resource needs, develop HR strategies, and ensure that the
organization has the right talent to execute its business plans. SHRM involves a
deep understanding of the organization's internal and external environment,
allowing HR to proactively respond to challenges and opportunities.
In summary, HRM is the foundational practice of managing human resources,
covering various operational tasks. HCM takes a more strategic approach,
emphasizing the value of employees as a competitive advantage. SHRM builds
upon HCM by aligning HR strategies with overall business strategies, enabling
HR to contribute significantly to an organization's success. All three concepts
are essential for modern organizations to effectively manage their workforce
and achieve their goals.

Factors affecting HRM

External Factors Affecting HRM:
Economic Factors: Economic conditions, such as economic growth, population
demographics, workforce market conditions, national income levels, and
inflationary pressures, have a direct impact on HRM practices, including
recruitment, compensation, and workforce planning.
Socio-Cultural Factors: Social and cultural factors influence HRM practices
related to employee engagement, work-life balance, diversity and inclusion
efforts, and the creation of a supportive and inclusive work environment.
Technological Factors: Advances in technology define the nature of jobs and
affect HRM practices by influencing talent acquisition methods, training and
development initiatives, and the use of HR information systems for efficient
processes.
Political-Legal Factors: The legal and regulatory environment shapes HRM
practices as organizations must comply with labor laws, workplace safety
regulations, and other legal requirements. Political stability and government
policies can also impact HRM decisions.
Internal Factors Affecting HRM:
Organization's Strategy: HRM must align its strategies with the overall business
strategy to ensure that the workforce is contributing to the achievement of
organizational goals effectively.
Organizational Culture: The prevailing culture within the organization impacts
HRM practices, including employee motivation, communication, and the level
of employee engagement.
Trade Unions: In unionized environments, HRM needs to work closely with
labor unions and engage in collective bargaining negotiations to address
employee concerns and maintain harmonious labor relations.
Organization's Financial Position: The financial resources available to the
organization influence HRM's ability to invest in employee development,
compensation and benefits, and other initiatives to attract and retain talent.
By considering these external and internal factors, HRM professionals can
design and implement strategies that respond effectively to the ever-changing
business environment and effectively manage the organization's human capital
to achieve its objectives.

Human resource manager

Human Resource Manager (HR Manager): The Human Resource Manager is a
specialized position within the HR department responsible for overseeing
various HR functions and managing the overall HR team. Their primary role is
to develop and implement HR policies, programs, and strategies that align with
the organization's goals and support its workforce. HR Managers handle a wide
range of HR activities, including talent acquisition, performance management,
employee relations, compensation and benefits, training and development, and
HR compliance. They work closely with top management to ensure that the
organization's human resources are effectively managed and contribute to the
overall success of the business.
Line Manager: A Line Manager, also known as a Front-Line Manager or a
Direct Manager, is someone who leads a team of employees directly involved in
the organization's core operations. Line Managers are responsible for managing
day-to-day tasks, setting goals, and ensuring that their team members perform
their duties efficiently. They have operational and supervisory authority over
their team and play a crucial role in employee performance management,
providing feedback, coaching, and addressing any issues or challenges that
arise. Line Managers often work in various departments such as sales,
marketing, production, or customer service and have a significant influence on
employee productivity and engagement.

Line managers duties:-

Line managers have various important duties related to the tasks mentioned:
Placing the right person in the right job: Line managers are responsible for
understanding the skills, knowledge, and capabilities of their team members.
They work closely with HR or the talent acquisition team to provide input
during the hiring process. Line managers provide insights into the specific
requirements of the job and the team dynamics, helping HR make informed
decisions about selecting the right candidates for the available positions.
Starting new employees in the organization (orientation): When new employees
join the organization, line managers play a crucial role in the orientation
process. They welcome new team members, introduce them to the team and the
workplace, and provide an overview of the organization's culture, values, and
work processes. Line managers ensure that new employees feel comfortable and
supported as they begin their journey with the organization.
Training employees for jobs that are new to them: Line managers identify the
training needs of their team members, especially when they are assigned to new
roles or projects that require additional skills. They collaborate with HR or the
training department to arrange relevant training sessions or on-the-job learning
opportunities. Line managers actively participate in mentoring and coaching
employees to help them acquire the necessary knowledge and skills for their
new roles.
Improving the job performance of each person: Line managers are directly
involved in managing the performance of their team members. They set clear
performance expectations and goals, provide continuous feedback and support,
and conduct regular performance evaluations. Line managers identify areas
where employees can improve and work with them to create performance
improvement plans. They offer guidance, resources, and training to help team
members enhance their job performance.
Gaining creative cooperation and developing smooth working relationships:
Effective line managers understand the importance of fostering a positive work
environment that encourages creativity and cooperation among team members.
They create an atmosphere where employees feel comfortable sharing ideas and
participating in decision-making processes. Line managers actively listen to
their team members, value their input, and promote teamwork and
collaboration. They address conflicts or issues promptly and work to maintain
smooth working relationships within the team.

Staff Managers’ Human Resource Duties

Controlling: HR Managers play a role in controlling various aspects of human
resources, such as ensuring compliance with labor laws and organizational
policies, managing employee records and data, and monitoring HR metrics to
assess the effectiveness of HR initiatives.
Developing: HR Managers are involved in developing the skills and
competencies of employees. They design and implement training and
development programs, facilitate workshops, and provide opportunities for
employees to enhance their knowledge and capabilities.
Creating and Maintaining Policies: HR Managers are responsible for creating
and maintaining HR policies, procedures, and practices that govern employee
conduct, performance management, benefits administration, and other HR-
related matters. These policies help ensure consistency and fairness across the
organization.
Protecting: HR Managers play a crucial role in protecting the rights and well-
being of employees. They handle employee relations matters, address
grievances, and mediate conflicts to maintain a positive work environment.
Additionally, they ensure that the organization complies with labor laws and
regulations to protect employees' rights.

Functions of HR managers
Staff Functions: Staff functions are activities or roles that provide support and
assistance to other departments or functions within the organization. In the
context of HR, staff functions are those that HR Managers perform to support
the organization's overall operations. Some key staff functions of HR Managers
include:
Talent Acquisition: HR Managers are involved in recruiting and selecting
candidates to fill vacant positions in the organization. They work closely with
hiring managers and provide expertise in identifying the right candidates for
specific roles.
Training and Development: HR Managers design and implement training
programs to enhance the skills and knowledge of employees. They collaborate
with department heads to identify training needs and ensure that employees
receive the necessary development opportunities.
Compensation and Benefits: HR Managers manage the administration of
employee compensation and benefits programs. They design salary structures,
ensure compliance with compensation laws, and manage employee benefits
packages.
Employee Relations: HR Managers handle employee relations matters, such as
conflict resolution, disciplinary actions, and employee grievances. They work to
maintain a positive work environment and address any issues that arise between
employees and management.
Line Functions: Line functions are activities or roles directly involved in
achieving the organization's primary objectives. Line managers are responsible
for the organization's core operations and the implementation of its business
strategy. HR Managers also perform certain line functions, which means they
have a direct impact on the organization's primary goals. Some line functions of
HR Managers include:
Performance Management: HR Managers work with line managers to set
performance expectations, monitor employee performance, provide feedback,
and conduct performance evaluations. This function directly contributes to
achieving the organization's performance goals.
Talent Development: HR Managers collaborate with line managers to identify
high-potential employees and develop talent within the organization. This
function ensures that the organization has a skilled and capable workforce to
support its growth.
Coordinative Functions: Coordinative functions involve activities or roles that
integrate and coordinate the efforts of different departments or functions within
the organization. HR Managers perform coordinative functions to ensure
smooth collaboration and communication between HR and other departments.
Some coordinative functions of HR Managers include:
Workforce Planning: HR Managers collaborate with department heads to
identify future workforce needs and develop workforce planning strategies. This
function involves aligning HR strategies with the organization's long-term
goals.
Organizational Development: HR Managers work with top management and
department heads to drive organizational development initiatives. This function
aims to create a positive work culture, improve employee engagement, and
align HR practices with business strategy

HR Competencies
Competency is ‘an underlying characteristics of an individual that is casually
related to criterion – referenced effecting and/or superior performance in a job
situation’.
Intelligence: Intelligence in HR refers to the ability to understand complex
issues, solve problems, and make informed decisions based on data and
analysis. HR professionals need to use their intelligence to comprehend various
aspects of the workforce, organizational dynamics, and business challenges to
devise effective HR strategies and solutions.
Learning and Coaching Skills: Effective HR professionals possess strong
learning abilities and are continuously updating their knowledge of HR
practices, labor laws, and industry trends. They also excel in coaching and
mentoring employees and managers to improve performance, enhance skills,
and promote professional growth.
Discriminating Skills: In HR, discriminating skills refer to the capability to
assess and differentiate among candidates, employees, or situations. HR
professionals need to identify the best fit for specific roles and distinguish
between high-performing employees and those needing additional support.
Leadership Skills: Leadership skills are essential for HR professionals to
influence and inspire others in the organization. HR leaders must provide
direction, motivate teams, and champion HR initiatives to support the overall
business objectives.
Executing Skills: HR professionals must be adept at implementing HR
strategies and plans effectively. This involves coordinating various HR
functions, setting up processes, and ensuring the successful execution of HR
programs and initiatives.
Experience and Training: Having relevant experience in HR and training in HR-
related fields are crucial competencies. Experience helps HR professionals
develop insights and navigate complex HR challenges, while training equips
them with up-to-date knowledge and best practices in the field.
Professional Attitude: HR professionals need to maintain a high level of
professionalism in their interactions with employees, managers, and
stakeholders. They should demonstrate integrity, credibility, and respect to build
trust within the organization.