CHAPTER 14

OVERVIEW OF
HUMAN
RESOURCE
MANAGEMENT

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 Learning Objectives
 Human Resource Management (HRM)
 HRM in the current complex business
environment
 The objectives of HRM functions
 More about HRM
 Steps in HR planning process
 Various facets with which HRM deals
with

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 Human Resource
Management
 Deals with the staffing functions of the
organization such as human resources
planning, recruitment, training, career
planning, compensation package,
performance appraisal, etc.
 Deals with all aspects of human
resources that enable effective use of
the same to improve organizational
effectiveness.
 Supporting activities such as training,
recruitment, orientation, motivation of
employees, and compensation related
issues.
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 Functions of Human Resource Management

Human Resource Management (HRM)

Enables the Most Effective and Efficient
Contribution from Human Resources so as to
Achieve Organizational and Individual Goals

Recruitment and Selection

Human Training, Orientation and

Resources Induction
Planning,
Career Planning
Organizing,
Directing and
Controlling Performance Appraisal

Placement

Compensation Package

Creating conducive Work

Environment and Motivation of
Employees

Management: Principles, Processes & Practices

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 Objectives of the HRM
Functions
 Facilitating achievement of organizational goals
 Effective and efficient deployment of human skills,
abilities, and knowledge
 Providing inspired, motivated, and trained employees
 Communicating HRM practices and policies to
employees
 Providing scope for creativity and innovation to
employees
 Enhancing job satisfaction to the employees
 Improving the quality of professional life in the
organization
 Creating healthy work relations in the organization
 Operating on ethical policies
 Complying with statutory requirements
 To work towards corporate social responsibility (CSR)
 Managing change
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 HR Planning Process
 HR managers have to synchronize their activities with the
business plan of the organization to ensure that the right
type and number of people are made available to different
departments of an organization, in line with their
contribution to the organizational goals.
 organization is expected to take steps for synchronizing
human resources activities such as recruitment, selection,
placement, training, recognition and reward system,
performance appraisal, and labour relations with the
organizational business plan.
 HRM has to review and evaluate its actions to ensure that
the steps taken are producing the expected results as per
business plan and the corrective measures that need to
be taken, in case they are not. The evaluation of human
resource activities focus on productivity, quality, quantity,
innovation, and employee satisfaction levels.

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 Different Facets of HRM
 Recruitment and retention of employees
 Planning for staff requirement
 Defining jobs, roles, and responsibilities
 Recruitment process
 applications and resumes
 examinations, group discussions and interviews
 reference checks
 personality tests
 integrity tests
 ensure reliability and validity of various tests
used

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 Contd..
 Induction of new employees
 Outsourcing certain stages of production,
functions, and services
 Creating and providing an environment
conducive to growth
 Determining employees benefits and
compensation package
 Training and development
 Career planning for different groups of
employees
 Arranging training in-house or outside
 Leadership development
 Self-development

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 Contd..
 Team training
 Diversity training
 Training need assessment
 Training evaluation
 Regulatory compliance to be ensured
 Personnel database management
 Framing and devising personnel policies
 Statutory compliances
 Employees rules and regulations and other
related issues
 Ethical practices to be followed
 To ensure non-discriminatory treatment to
employees

Management: Principles, Processes & Practices

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 Arranging Conducive and Safe
Working Environment
 Developing employees’ assistance programmes
 Handling drug abuse situations in the workplace
 Ensuring safe working facilities
 Promoting welfare schemes for employees
 Retaining High Performance Employees
 Performance measurement and management
 Group performance management
 Enhancing personal productivity
 Rewarding employees and groups for their special
achievements
 Timely promotions and career advancement
prospects.

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 Who performs HRM activities?

HRM Activities

Planning and Implementation and

Policy Making Operationalization

HR Specialists Operating Managers

Management: Principles, Processes & Practices

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 HRM – Importance & Significance
 Of all the resources, the only one that is unpredictable
is human resource.
 In the present information and knowledge age,
companies need to devise effective HRM policies and
practices to gain a distinctive advantage over their
competitors.
 HRM planning, programming, review, and evaluation
ensure that the right number and kind of people are
made available at the right time to effectively
implement the company’s business plan.
 Challenge before HRM is to manage change by
eliminating systems and practices that come in the
way of effective implementation, have ethical leaders
at different tiers of the organization, outsourcing
functions, services, and production processes.

Management: Principles, Processes & Practices

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