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Human Resource Management or HRM is the process of managing people in a company as well as managing the existing inter-personal relationships.

These two processes are key in the success and growth of a business. When viewing HRM from the point of ensuring that structures and processes are identified and instituted to manage an organizations personnel, the following elements are included: Staffing is the core component of HRM. Staffing is about setting guidelines and procedures to guide recruiting and placement. The presence of these staffing procedures will aid in the effective advertising and reaching out to potential employees. On top of this, the person interviewing and selecting new staff should be able to identify candidates who are suitable for the various roles. The interview should be structured to ensure the success of the interview process as well as the candidate selection. Apart from hiring new employees, staffing also involves the management of existing employees. It touches on issues like disciplinary matters, monitoring of leave, absences and health and safety. Letting employees go is also covered under staffing. Therefore, an organization needs a robust system needs to make sure that all these elements are covered. Another key element of HRM is retention. The training of employees to enable them to improve their career paths is very important. In some situations where an employee is undergoing through a difficult time in his or her life, an effective Human Resource Department (HRD) should offer suggestions for support and counseling where appropriate. Remuneration packages and perks that are associated with the package an employee has been offered also fall under the remit of the HRD. Good HRM policies ensure that there are structures in place which show the pay levels for the different positions in an organization. It is important for the staff to know the career and pay that is available to them. This is important for both during the time of employment as well as for their career progresses over time. Another key component of HRM is performance management. The reason for this is that many employers use it to assess career progression and to determine pay increases. When a good performance management policy is in place, effective targets can be set and monitored regularly. These records are crucial when staffing levels need to be reduced or disciplinary proceedings are instituted. A secondary role of HRM is in the management of inter-personal relationships. This covers staff within departments as well as at an organizational level. The relationship between staff and management is an important factor in the success of an organization. It sets pace for how the organization will move forward in achieving their vision. As far as this secondary function is concerned, the objectives and outcomes, are designed to help employees and the management grow employees and ensure that the interactions within the organization are fulfilling for every member of staff from the bottom up. The ultimate focus of HRM is the people within an organization. Regular planning, monitoring and evaluation are important for the success of HRM. Successful implementation ensures that all

employees know their role, career path and also feel part of an organization which is able to manage and reconcile their expectations as well as those of the organization and its objectives.

Scope

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Scope of Human Resource Management

Introduction to HRM

Human Resource Management Scope of Human Resource Management Significance of Human Resource Management Human Resource Management functions Human Resource Management Model HRM Vs Personnel Management Human Resource Development Human Capital Management Talent Management o 3 Benefits of Talent Management for a Company Knowledge Management About Human Resource Manager HRM environment in India Changing role of HRM e-HRM

The scope of Human Resource Management refers to all the activities that come under the

banner of Human Resource Management. These activities are as follows.

Human resources planning :- Human resource planning or Human Resource Planning refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. Job analysis design :- Another important area of Human Resource Management is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Recruitment and selection :- Based on information collected from job analysis the company prepares advertisements and publishes them in the newspapers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of Human Resource Management. Orientation and induction :- Once the employees have been selected an induction or orientation program is conducted. This is another important area of Human Resource Management. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees.

Training and development :- Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area where the company spends a huge amount. Performance appraisal :- Once the employee has put in around 1 year of service, performance appraisal is conducted that is the Human Resource department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided. Compensation planning and remuneration :- There are various rules regarding compensation and other benefits. It is the job of the Human Resource department to look into remuneration and compensation planning. Motivation, welfare, health and safety :- Motivation becomes important to sustain the number of employees in the company. It is the job of the Human Resource department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department. Industrial relations :- Another important area of Human Resource Management is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.

The Human Resource Officer is responsible for providing support in the various human resource functions, which include recruitment, staffing, training and development, performance monitoring and employee counseling. SCOPE (The way that the position contributes to and impacts on the organization) The Human Resource Officer provides advice and assistance to supervisors and staff. This may include information on training needs and opportunities, job descriptions, performance reviews and personnel policies. The position coordinates the staff recruitment process .The Human Resource Officer provides advice and support to supervisors and staff selection committees and ensures that they have accurate and timely information in order to make effective decisions. Failure to provide adequate advice or assistance may result in lost opportunities for staff development, poor staff morale, financial loss to staffs

for residents and a loss of credibility.

Report Abuse|Remove Access|Powered By Google Sites Functions Functions of HRM HRM functions (also called processes) are carried out by the HR managers to fulfil the goals and objectives of the organization. As illustrated in Figure 1.1, they perform two sets of functions, namely managerial functions and operative functions. The managerial functions are the basic functions performed by the HR managers in their capacity as managers or heads of their own departments. In fact, all managers, irrespective of their departments, perform these functions. The operative functions, on the other hand, are specialized activities performed exclusively by the HR managers, usually for all the departments. We shall first discuss the managerial functions. Managerial Functions Functions like planning, organizing, staffing, directing and controlling constitute the core managerial functions of an organization. The specific activities performed under each of these functions are explained as follows: Planning It is an effective tool to deal with the future. It involves the process of predetermining the personnel programmes that are necessary to attain the organizational goals. In this context, accurate forecasting is vital to the success of any plan. Planning is such a crucial function for an organization that it is the key to all other managerial functions. The steps involved in planning are

Establishing goals and objectives to be achieved Developing rules and procedures Determining plans and forecasting techniques

Figure 1.1 Functions of HRM

Organizing Once the plans are formulated, the next step is to organize the men and material in order to accomplish those plans. Organizing is a process through which the firm establishes its structure and determines the authority, responsibility and accountability of each member in relation to the job. Thus, organizing involves

Giving each member a specific tasks Establishing departments and divisions Delegating authority to the members Establishing channels of authority and communication Creating a system to coordinate the works of the members

Staffing This function deals with the creation and maintenance of human resources through employment, compensation, benefits, training and development, and industrial relations measures. It aims to put in place HR policies in order to deal with wage fixation, working conditions, and promotional opportunities for prospective employees. The steps involved in the staff function are

Determining the type of people to be hired Recruiting prospective employees and selecting the best ones from them Compensating the employees Training and developing the employees Setting performance standards and evaluating the employees performance Counselling the employees

Directing Directing is the sum of several activities like communication, leadership and motivation. Directing, as a function, aims at securing willing cooperation from the individuals and the groups to achieve the predetermined goals. It includes the following activities:

Getting work done through subordinates Ensuring effective two-way communication for the exchange of information with the subordinates Motivating subordinates to strive for better performance Maintaining the group morale

Controlling Controlling is the process of checking the efficiency of the individuals and the groups in fulfilling the plans and goals through follow-up measures. It is essential for continuous improvement in the managerial activities. The processes involved in controlling are

Establishment of standard performance Measurement of actual performance Comparison of actual performance with the standard one to find the deviation Initiation of corrective actions, if there are any deviations

Next, let us look at the operative functions. Operative Functions

Staffing is one of the managerial functions. But this function is normally performed by the HR managers for all the departments of the firm. In most organizations, the HR department establishes personnel policies and coordinates the HR functions of all the departments. This function is also called the operative function or HRM function. It includes, amongst others, the processes of hiring, training, compensating, appraising and retaining employees, and attending to their labour relations, health and safety, and equality concerns (see Fig. 1.2). Andrews8 has carried out a detailed study on the functions of HRM and commented: In most organizations, the personnel or HR department establishes policies and coordinates functions such as job analysis, personnel planning, the recruitment and selection of employees, training and development, performance appraisal, compensation and employee benefits, labour relations, employee discipline and control, and occupational health and safety. We shall now discuss the operative functions of HRM. Procurement Procurement refers to a series of activities undertaken by the HR managers for filling the present and future vacancies of the organization. The activities include job analysis and designing, HR planning, recruitment and, finally, the selection of suitable employees. Here, job analysis refers to both the determination of specific tasks and responsibilities connected to a job and identifying the skills, knowledge and abilities required for the job holder. HR planning involves choosing and placing the right person at the right job and at the right time. Recruitment involves gathering a pool of applicants from which suitable employees may be selected. Lastly, selection involves screening, testing, interviewing and hiring the most suitable employees for the organization.

Figure 1.2 Operative Functions of HRM Development Development here refers to both employees training and management development. HR managers are responsible for conducting and supervising training and development programmes for employees. The purpose of a training and development programme is to increase the employees competencies in their job by improving their knowledge, skills and abilities. Training and development is widely accepted as a method for enhancing the employee skills, increasing the individual and organizational performance, improving the employee morale, and achieving the business growth and success. Compensation Compensation refers to the determination of the pay scale and other benefits for the employees. Establishing and maintaining the pay system of an organization is one of the principal jobs of the HR managers. They must devise ways to ensure fair and equitable pay rates. In addition, HR managers should regularly manage the performance evaluation system of the organization, and continuously design reward systems such as performance-linked incentive

plans and bonus and flexible work schedules. Box 1.4 outlines the flexible schedules offered by companies like IBM. Maintenance The maintenance function aims at retaining efficient and experienced employees in the organization. This calls for creative HR practices. In this regard, HR managers are responsible for offering a wide range of HR programmes covering occupational safety, health promotion and physical fitness, canteen facilities, recreation activities, transportation programmes, employee suggestion schemes, career counselling and growth for creating a positive work environment. Box 1.5 highlights one of the HR policies of Infosys. Integration It consists mainly of industrial relations and aims at ensuring good relations between the management and the employees. HR managers have to implement industrial relations programmes that would ensure ethical and fair treatment in disciplinary action, grievance redressal, and career management processes. They should also counsel the employees and the management to prevent and, when necessary, resolve disputes over labour agreements or other labour relation issues. It is to be understood here that the functions of HRM can vary widely from one organization to another, depending upon its nature, size, and objectives. For instance, a smaller organization may follow a shorter HRM process with a greater emphasis on functions like procurement and compensation and little or no priority for activities like training and development and industrial relations maintenance. On the contrary, large organizations may pursue a longer and more comprehensive HRM process to meet the requirements of both the management and the workforce. Box 1.6 shows the HR statements of select companies. Box 1.4 Mobile Working at IBM One of the ways companies retain their employees is by offering them flexible work schedules and the option of working from home. A company that has consistently been appreciated for this benefit is IBM. Some of IBM's workplace flexibility programmes include individualized daily work schedules, flexible (or compressed) work-weeks, regular part-time, remote/mobile work options and mobility allowances. Employees are offered support services so that even if they work from home, they stay connected. Be it downloading files, checking and replying to mail, or linking to the electronic library, IBM workers can dial into the IBM network and get connected. People can opt to work at home in case of personal emergencies as well. In India, IBM has offered mobile work options since 2003.

Adapted from: www.ibm.com./innovation/in/hr. Box 1.5 HR and the Well-Being of Employees One of the HR policies really appreciated by employees is that pertaining to their families health and safety. Increasingly, companies are providing life insurance and accident coverage that will help reassure their employees and give them a sense of security. Infosys is a good example.

Starting from 2002, it has a tie-up with the Life Insurance Corporation of India that provides adequate coverage for all its employees. The coverage levels have substantially risen over the years, in tune with the overall Infosys social security and employee benefit initiatives. In 2008, the coverage amount was a record-breaking Rs. 240,000 million. As Mohandas Pai, the HR head of Infosys, said, Infosys believes in providing adequate life, accident and medical insurance cover to its employees in a holistic measure.

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