Unit one

Introduction/ overview
In all activities men and resources are involved. For a
long time men or workers were taken for granted.
Greater accent was given to resources, production
machinery and top managers. But at present in the
modern large scale production of innumerable
products with a wide market,(whole sky is the
limit)in the last few decades the importance of
human resources to any organization need not be
over-emphasised. Human resource is the wealth of a
nation and organization. The development process is
wide and varied.
Human Resources Management (HRM) is an
HRM Concept

approach to the management of people, based on

four fundamental principles.
First: Human resources are the most important
assets of an organization and their effective
management is the key to its success.
Second: The success is most likely to be achieved
if the personal policies and procedure of the
enterprise are closely linked with and make a
contribution to the achievement of corporate
objectives and plans.
Third: The corporate culture,
values, managerial behavior carrying
out major influence on the
achievement of excellence.
Finally: HRM is concerned with
integration-getting all the members
of the organization involved and
working together with a sense of
common purpose.
 Definitions:
HRM: It is the process of managing
people from Recruitment to Retirement
to achieve organization objectives.
HRM: All activities designed to obtain
Right People at Right Place at Right Time.
HRM: An integrated process involving
Acquisition, Development, Motivation
and Maintenance of people.
However there are three meanings attached to
the concept: These are as following-
First: The persons working in an organization
are regarded as a valuable source involve that
there is a need to invest time and effort in their
development.
Second: They are human resource which means
that have their own special characteristics and
can not be treated like material resources. Thus
needs humanistic treatment and approach.
Third: Human resources do not merely
focus on employees as individuals, but
also on other social relations and process
in the organization.
These includes the role or the job a
person has in the organization. HRM in
its essence is the qualitative
improvement of human beings who are
considered the most valuable assets of
an organization.
Its scientific approach to enable the employees
to improve competence and capabilities to play
their present and future expected roles so that
organization goals are achieved.
HRM concerned with both structure of work
in a firm and with all the related employment
practices that are needed to carry out the work.
HRM is not simply about HR or people
practices it is about the management of works
and people in the firm.
Component of HRM:
1.Acquisition: This process starts with Manpower
planning and estimation of demand and Selection,
Placement, Induction /Orientation.
2.Development: It includes Training, Management
Development, and Career Development.
3.Motivation: It includes Job satisfaction, Performance
Appraisal, Reward system, Compensation and Benefit
administration, Discipline.
4.Maintenance: It tries to improve working conditions to
enhance their commitment towards the organization. It
includes Housing, Education, Medical facilities, physical
and mental health, safety, labour relation and welfare.
 External
Influences
 Functions of HRM:
Managerial function and Operative
function.
Managerial functions are: Planning,
Organizing, Directing and Control.
Operative functions are: Manpower
planning, Recruitment and selection,
Job analysis, training and performance
appraisal.
A brief description of usual human resource function is
given below:
1.Human resource planning:
In the HR planning function the numbers and type of
employees required are determined to meet the
organization goals. Research is undertaken to collect,
compile analyze and interpret the data to meet the planning
needs of human resources currently and in future. Thus, the
basic human resources planning strategy is staffing and
employee development.
 
2.Job analysis:
Job analysis the process of describing the nature of a job and
specifying the human requirement such as skills, experience
etc. and finally – job description. Job description spell out-
work, duties and activities of employees. Job description are
vital part of job analysis and for the employee, employer etc.
3.Staffing :
Staffing means the requirement and selection of the
human resources for an organization.
Recruiting is the personnel function that attracts
qualified applicants to fill job vacancies.
 In the selection function the most qualified application
are selected for hiring among those attracted to the
organization by the recruiting function.
On selection, HR functionaries are involved in
developing and administering methods that enable
managers to decide which applicant to select and which
to reject for given job.
4.Orientation :
Orientation is the first steps towards helping a new
employee. It is a method to acquaint new employees
with particular aspects of their new job, including pay
and benefit programmers, working hours and company
rules and expectations.
 
5.Training and development :
The training and development function give employees
the skills and knowledge to perform their jobs effectively.
Training also given to in experienced employees.
Retraining is given to introduction new system of work.
Thus training and development programmers provided
useful means of assuming that employees are capable of
performing their jobs at acceptable levels.
6.Performance appraisal:
This function monitors employee’s performance to
ensure that it is at acceptable levels.HR professionals
are monitoring employees performance although
primary responsibility is of supervisors and managers.
It works as back for improvement.
 
7.Career planning :
 Career planning activities include assessing an
individual employee potential for growth and
advancement in the organization.
8.Compensation:
HR personnel provides a rational, equitable and
justifiable method of compensation means an employee
must be paid for the performance. pay is related to the
maintainence of human resources. Compensation affects
staffing in that people are generally attracted organization
offering a higher level of pay. Compensation act as
motivating factor for employees to work in higher ways.
 
9.Benefits:
Benefits are other form of compensation to employee’s
means other than direct pay for work performed. Benefits
include both the legally required items and those offered
at employers’ judgment. In fact, benefits are primarily
related to the maintenance area. As they provide for many
basic employee need.
10.Labour relations:
The term “labour- relations” refers to interaction with
employees who are represented by a trade-union with
regard to labour, the personnel responsibilities primarily
involves negotiating with the unions regarding wages,
service conditions and resolving disputes and grievance.
 
11.Record- keeping:
The most basic personnel function is employers record-
keeping. This function involves recording maintaining and
retrieving employee related information for a variety of
purpose. Complete and up-date employee records are
essential for most personal function. Now-a-days
employees are more interested in their personal records.
They want to know what us in them, why certain statements
have been made, and records may not have been updated.
Difference between HR
Management and Personnel
Management:
 In the beginning of the industrial
revolution, Personnel management
was taking care of organization
functions. It was in 1970’s HRM
came into picture.
Difference between HR Management and Personnel Management

S.No. Dimension Personnel HR Management

management

1 Key relations Labour management Customer

2 Approach Hire and fire Hire and motivate

3 Corporate plan Marginal(limited Central

department)

4 Pay Job evaluation Performance

related

6 Communication Restricted flow Increased flow

7 Job design Division of labour Teamwork

8 Managerial task Monitoring Nurturing
9 Behavioral referent Norms, customs and Values and mission
practice
10 Speed of decision Slow Fast
Human Resource Policies:
Formulation and Essentials of sound HR Policies:
HR policies provide generalized guidance on
the approach adopted by the organization.
These define the philosophies and values of
the organization on how people should be
treated.
These policies act as reference points when
HRM practices are developed and decision
making is done.
They define the way ‘Things are done’. HR
policies serve as basis for converting values.
They provide the frameworks within
which consistent decisions are facilitate
empowerment and delegation.
HR policies can be expressed as overall
statement of the values of the
organization.
The main areas included in HR
policies are: Overall policy and specific
policy.
Overall policy: It defines how the
organization fulfils its social responsibility
for its employees and sets out its attitudes
towards them.
The values expressed in overall statement
of HR policies may refer to the following:
Equity: Fairness and justice for
employees.
Consideration: Considering individual
circumstances while decision making.
Organizational learning: Promoting learning and
development of all employees.
Performance through people: Developing a
performance culture.
Quality of Working Life: By increasing the
satisfaction of employees.
Working conditions: healthy, safe and practicable
working condition.
 Specific polices: These cover various areas like-
equal opportunity, Managing diversity/multiplicity,
promotion, rewards, involvement and Participation,
health and safety, discipline, grievances, employee
relations etc.
Formulating HR policies: Formulation includes following
steps:
1. Uanderstanding corporate culture and its values.
2. Analyze existing policies (written or unwritten)
3. Analyze external influences (like industrial Act etc.)
4. Assess any areas where new policies are required.
5. Check with managers on their view about HR polices.
6. Seek the views of employees about polices.
7. Seek the views of trade union representatives.
8. Analyze the information obtained in the above steps and
Prepare draft policies.
9. Consult, discuss and agree policies with management and
union representative.
10. Communicate the policies with notes on their
Implementation as needed.
Implementation of HR policies:
The line managers have a key role in
implementing HR policies.
The HR managers give guidance to line
manager who make decision on the spot.
The HR managers communicate and interpret
the policies, convince the line managers and
provide training and support for the managers
to implement them.
Finally, it is the line managers who bring HR
policies in practice.