Human Resource

Management
Human Resource Management

According too Decenzo and Robbins

“ Human resource management is comprised of the

acquisition, development, motivation and
maintenance functions”.
Meaning of Human Resource Management
 Human Resource Management or HRM is the process
of managing people in a company as well as managing
the existing inter-personal relationships.

 The process of hiring and developing employees so that

they become more valuable to the organization.

 Staffing is the core component of HRM. Staffing is about

setting guidelines and procedures to guide recruiting and
placement.
 Human resources are the people who work for the
organization.

 Human resource management is really employee

management with an emphasis on those employees as
assets of the business.

 In this context, employees are sometimes referred to

as human capital.

 As with other business assets, the goal is to make effective

use of employees, reducing risk and maximizing return on
investment (ROI)
 Human Resource Management includes:

 conducting job analyses,

 planning personnel needs,
 recruiting the right people for the job,
 orienting and training,
 managing wages and salaries,
 providing benefits and incentives,
 evaluating performance,
 resolving disputes, and
 communicating with all employees at all levels

 J.PROM.BERC
 Importance of HRM
 1. Effective Utilization Of Resources
 Human resource management ensures the effective utilization of
resources.

 HRM teaches how to utilize human and non-human resources so that

the goals can be achieved.

 2. Organizational Structure
 Organizational structure defines the working relationship between
employees and management. It defines and assigns the task for each
employee working in the organization.

 The task is to be performed within the given constraints. It also defines

positions, rights and duties, accountability and responsibility, and other
working relationships.

 The human resource management system provides required information

to timely and accurately. Hence, human resource management helps to
maintain organizational structure.
 3. Development Of Human Resources
 Human resource management provides favorable environment for
employees so that people working in organization can work creatively.

 This ultimately helps them to develop their creative knowledge, ability and
skill.

 To develop personality of employees, human resource management

organizes training and development campaigns which provides an
opportunity for employees to enhance their caliber to work.

 4. Employee Satisfaction
 Human resource management provides a series of facilities and
opportunities to employees for their career development.

 This leads to job satisfaction and commitment. When the employees are
provided with every kind of facilities and opportunities, they will be
satisfied with their work performance.
 5. Goal Harmony
 Human resource management bridges the gap between individual
goal and organizational goal-thereby resulting into a good
harmony.

 If goal difference occurs, the employees will not be willing to

perform well.

 Hence, a proper match between individual goal and

organizational goal should be there in order to utilize
organizational resources effectively and efficiently.

 6. Organizational Productivity
 Human resource management focuses on achieving higher
production and most effective utilization of available resources.

 This leads to an enhancement in organizational goals and

objectives.
 7. Employee Discipline And Moral
 Human resource management tries to promote employee
discipline and moral through performance based incentives.

 It creates a healthy and friendly working environment through

appropriate work design and assignment of jobs.

 8. Respect For Human Beings

 Another importance of human resource management is to provide
a respectful environment for each employee.

 HRM provides with required means and facilitates employee

along with an appropriate respect because the dominating
tendency develops that will result organizational crisis.

 Hence, all of them should get proper respect at work. Human

resource management focuses on developing good working
relationships among workers and managers in organization. So,
good human resource management system helps for respecting
the employees.
 Functions and Components of HRM
 Human resource management is a process which involves around four
basic functions- acquisition, development, motivation and
maintenance of human resources.

 These basic elements are the key steps for achieving organizational
goals.

 1. Acquisition
 Acquisition function is concerned with recruitment and selection of
manpower requirement for an organization.

 It ensures that the company has the right number of people at the right
place and at the right time who are capable to complete required work.

 It is the starting point of human resource management function.

Acquisition is primarily concerned with planning, job analysis,
recruitment, selection and socialization of employees.

 It selects and socializes the competent employees who have adopted the
organization's culture.
 A)Human Resource Planning- is the process of systematically
forecasting both the future demand for and supply of employees
and the deployment of their skills with respect to the strategic
objectives of the organization.

 HRP can be defined as a process by which an organization ensures

that it has the right number and kinds of people, at the right
place, at the right time, capable of effectively and efficiently
completing those tasks that will help the organization achieve its
overall objectives

 HR planning is the starting point of HRM and it involves

estimating the size and composition of the future work force.
 B) Job Analysis-Job analysis is formal study of jobs. It
includes the tasks involved in a job and the
qualifications needed to accomplish the job.

 Job analysis is the procedure through which the

organization determine the duties of the positions and
the characteristics of the people to hire for them.

 Job analysis provides the information about the jobs

currently being done and the knowledge, skills and
abilities that individuals need to perform the job
adequately.
C) Recruitment-Recruitment is the process of finding right people for
right position at the right time. It is concerned with identifying and
attracting a pool of qualified candidate to fulfill human resource needs
of an organization.

 It is the process of discovering potential applicants for actual or

anticipated organizational vacancies. Recruitment means announcing
job opportunities to the job seekers in such a way that a good number
of suitable people will apply for them.

 The goals of recruitment can be:

 To generate large pool of qualified applicants and
 To provide enough information for individual to self select out of the
process.

 The ideal recruitment program is one that attracts an

appropriate number of qualified candidates who will survive the
screening process and accept the position with the organization
when offered.
 D) Selection-Selection is the process of selecting a qualified job
candidate for a job who can successfully do it and add value to
the organization.

 Employee selection is the process of choosing the most suitable

candidate for a particular position from among the prospective
candidate.

 Selection programs try to identify applicants with the best

chance of meeting or exceeding the organization’s standards of
performance and The selection process aims to discriminate
fairly among applicants.

 The most suitable person is then picked up after eliminating

the unsuitable applicants through selection process. Any
mismatched in this regard can cost an organization.
 E) Socialization -is the process through which organizational
culture is continued, by which newcomers learn appropriate roles
and behavior to become effective and participating members.

 When you begin a new job, accept a lateral transfer, or are

promoted, you must make adjustments.

 You adapt to a new environment that includes different work

activities, a new boss, a different and most likely diverse group of
co-workers, and probably a unique set of standards for what
constitutes successful performance.

 In order to reduce the anxiety that new employees may

experience, attempts should be made to integrate the person into
the informal organization.

 The initial T&D effort designed for employees is Socialization, the

guided adjustment of new employees to the company, the job, and
the work group