UNIT 1

 INTRODUCTION TO HRM & HRD:

CONCEPT OF HRM: Human Resource Management is the concept of modern sub-branch of

Management. Personnel Management may be described as that activity in an enterprise that strives
to mould the human resources into an effective organization, provides opportunity for maximum
individual contributions under healthy working conditions promotes individual development and
encourages mutual confidence and understanding between the employees and the employers and
between the employees themselves. According to French, “Human resource management means the
functions of recruiting, selecting, developing of human asset by the institution and to utilize and
maintain their capacities as well as provide them amenities.”1 Edwin B. Filippo has defined Human
resource management as “The planning, organizing, directing, and controlling of the procurement,
development, compensation, integration and maintenance and separation of human resources to the
end that individual, organization and social objectives are accomplished,”2 This definition reveals
that personnel management is that aspect of management which deals with the planning, organizing,
directing and controlling the personnel functions of the enterprise. This definition is a
comprehensive one and covers both the management functions and the operative functions. The
purpose of all these functions is to assist in the achievement of basis organizational, individual and
societal goals.

 The main purpose of human resource management is to accomplish the organizational

goals. Therefore, the resources are mobilized to achieve such goals. Some importance and
objectives of human resource management are as follows:

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.Organization aiming to
utilize their resources efficiently invites the HR department to formulate required objectives and
policies.

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. Respect For Human Beings
Another importance of human resource management is to provide a respectful environment for each
employee. Human resource management 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.
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. 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.

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. 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.

 OBJECTIVES: The primary objective of HRM is to ensure the availability of a competent

and willing work force to an organization. Beyond this there are other objectives, too.
Specifically, HRM objectives are four folds- societal, organizational, functional, and personal.
Societal Objectives: To be ethically and socially responsible to the needs and challenges of
the while minimizing the negative impact of such demands upon the organization. The failure
of organizations to use their resources for the society’s benefit in ethical ways may lead to
restrictions. For example, the society may limit HR decisions through laws that enforce
reservation in hiring and laws that address discrimination, safety or other such areas of
societal concern.

Organizational objectives: To recognize the role of HRM in bringing about organizational

effectiveness. HRM is not an end in itself. It is only a means to assist the organization with its
primary objectives. Simply stated, the department exists to serve the rest the organization.

Functional Objectives: To maintain the department’s contribution at a level appropriate to the

organization’s needs. Resources are wasted when HRM is either more or less sophisticated to suit
the organization’s demand. The department’s level of service must be tailored to fit the organization
it serves.

Personal objectives: To assist employee in achieving their personal goals, at least insofar as these
goals enhance the individual’s contribution to the organization. Personal objectives of employees
must be met if workers are to be maintained, retained and motivated. Otherwise, employee
performance and satisfaction may decline and employees may leave the organization.

HRM Function: In order to realize the objective stated above, HRM must perform certain
functions. These functions have been stated while outlining the scope of HRM. Generally, it may be
stated that there is a correlation between the objectives and the functions. In other words, some
functions help realize specific objectives. For example, the organizational objective is sought to be
met by discharging such functions as HR planning, recruitment, and selection, training, and
development and performance appraisal. Similarly, the personal objective is sought to be realized
through such functions as remuneration, assessment, and the like. The table contains the full list of
objectives and functions.

PROCESS: Each organization works towards the realization of one vision. The same is achieved by
formulation of certain strategies and execution of the same, which is done by the HR department. At
the base of this strategy formulation lie various processes and the effectiveness of the former lies in
the meticulous design of these processes. But what exactly are and entails these processes? Let’s
read further and explore.

The following are the various HR processes:

1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation,

Evaluation, Promotion and Layoff).
2. Employee remuneration and Benefits Administration
3. Performance Management.
4. Employee Relations.

The efficient designing of these processes apart from other things depends upon the degree of
correspondence of each of these. This means that each process is subservient to other. You start
from Human resource Planning and there is a continual value addition at each step. To exemplify,
the PMS (performance Management System) of an organization like Infosys would different from
an organization like Walmart. Lets study each process separately.

Human Resource Planning: Generally, we consider Human Resource Planning as the process of
people forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion
and Layoff.

 Recruitment: It aims at attracting applicants that match a certain Job criteria.

 Selection: The next level of filtration. Aims at short listing candidates who are the
nearest match in terms qualifications, expertise and potential for a certain job.
 Hiring: Deciding upon the final candidate who gets the job.
 Training and Development: Those processes that work on an employee onboard for
his skills and abilities upgradation.

Employee Remuneration and Benefits Administration: The process involves deciding upon
salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator in
any job and therefore the importance of this process. Performing employees seek raises, better
salaries and bonuses.
Performance Management: It is meant to help the organization train, motivate and reward
workers. It is also meant to ensure that the organizational goals are met with efficiency. The process
 not only includes the employees but can also be for a department, product, service or customer
process; all towards enhancing or adding value to them.
Nowadays there is an automated performance management system (PMS) that carries all the
information to help managers evaluate the performance of the employees and assess them
accordingly on their training and development needs.
Employee Relations: Employee retention is a nuisance with organizations especially in industries
that are hugely competitive in nature. Though there are myriad factors that motivate an individual
to stick to or leave an organization, but certainly few are under our control.
Employee relations include Labor Law and Relations, Working Environment, Employee heath and
safety, Employee- Employee conflict management, Employee- Employee Conflict Management,
Quality of Work Life, Workers Compensation, Employee Wellness and assistance programs,
Counseling for occupational stress. All these are critical to employee retention apart from the
money which is only a hygiene factor.

 HRM Vs PERSONNEL MGMT.:

Human resource management is the new version of personnel management. There is no any
watertight difference between human resource management and personnel management. However,
there are some differences in the following matters.

1. Personnel management is a traditional approach of managing people in the organization. Human

resource management is a modern approach of managing people and their strengths in the
organization.

2. Personnel management focuses on personnel administration, employee welfare and labor

relation. Human resource management focuses on acquisition, development, motivation and
maintenance of human resources in the organization.
3. Personnel management assumes people as a input for achieving desired output. Human resource
management assumes people as an important and valuable resource for achieving desired output.

4. Under personnel management, personnel function is undertaken for employee's satisfaction.

Under human resource management, administrative function is undertaken for goal achievement.
5. Under personnel management, job design is done on the basis of division of labor. Under human
resource management, job design function is done on the basis of group work/team work.

6. Under personnel management, employees are provided with less training and
developmentopportunities. Under human resource management, employees are provided with more
training and development opportunities.
7. In personnel management, decisions are made by the top management as per the rules and
regulation of the organization. In human resource management, decisions are made collectively after
considering employee's participation, authority, decentralization, competitive environment etc.

8. Personnel management focuses on increased production and satisfied employees. Human resource
management focuses on effectiveness, culture, productivity and employee's participation.

9. Personnel management is concerned with personnel manager. Human resource management is

concerned with all level of managers from top to bottom.
10. Personnel management is a routine function. Human resource management is a strategic
function.

HRM Vs HRD: Human Resource Management (HRM) is a branch of management; that is

concerned with making best possible use of the enterprise’s human resources, by providing better
working conditions, to the employees. It involves those activities that arrange and coordinates the
human resources of an entity. Further, it aims at maintaining good relations at various levels of
management.

Human Resource Development (HRD) is a wing of HRM that keeps focusing on the growth and
development part of the organisation’s manpower. There are many people, to whom HRM and HRD
convey the same meaning, but this is not true. We have compiled an article here, to make you
understand the differences between HRM and HRD. Have a look.

Comparison Chart

BASIS FOR
HRM HRD
COMPARISON

Meaning Human Resource Human Resource Development

Management refers to the
application of principles of
management to manage the
people working in the
organization.
means a continuous
development function that
intends to improve the
performance of people
working in the organization.

What is it? Management function. Subset of Human Resource

Management.

Function Reactive Proactive

Objective To improve the performance To develop the skills,

of the employees. knowledge and competency of
employees.

Process Routine Ongoing

Dependency Independent It is a subsystem.

Concerned with People only Development of the entire

organization.
  OBJECTIVES OF HRD:

Objectives of Human Resources Development can be listed as follows:

1. To develop capabilities of all individuals working in an organization in relation to their

present role

2. To develop capabilities of all such individuals in relation to their future role 3. To develop better
interpersonal and employer-employee relationships in an organization

4. To develop team spirit

5. To develop coordination among different units of an organization

6. To develop organizational health by continuous renewal of individual capabilities (averting

manpower obsolescence), keeping pace with the technological changes

Objectives of HRD can be made clear when we highlight the importance of human resources in line
with the examination process of the ‘Baldridge Award’, which is given at an international level to a
quality organization. Objectives of HRD practices in an organization should be to put efforts to
develop/and realize the full potential of the workforce, including the management.

They also help in maintaining an environment conducive to total participation, quality leadership
and personal and organizational growth. In an organization, there are six units, which are concerned
with HRD namely person, role, dyad, team, inter-team and organization. The effectiveness of one
contributes in turn to the effectiveness of the others.

HRD objectives can also be couched in line with W. Edward Deming’s fourteen principles for
quality improvement in an organization. Here, we would not discuss the fourteen principles but we
will focus on only those points which are related to HRD objectives. They are as follows:

1. Institute training on the job

2. Break down barriers between departments to build teamwork

3. Drive fear out of the work place

4. Create conditions to enable employees to take pride in their workmanship

5. Institute programme of education and self-improvement

  FOCUS OF HRD SYSTEM:

1.TRAINING AND DEVELPOMENT:Training and development is aimed at improving or

changing the knowledge skills and attitudes of the employees. While training involves providing the
knowledge and skills required for doing a particular job to the employees, developmental activities
focus on preparing the employees for future job responsibilities by increasing the capabilities of an
employee which also helps him perform his present job in a better way. These activities start when
an employee joins an organization in the form of orientation and skills training. After the employee
becomes proficient, the HR activities focus on the development of the employee through methods
like coaching and counseling.

2 ORGANISATION DEVELPOMENT
OD is the process of increasing the effectiveness of an organization along with the well being of its
members with the help of planned interventions that use the concepts of behavioral science. Both
micro and macro changes are implemented to achieve organization development. While the macro
changes are intended to improve the overall effectiveness of the organization the micro changes are
aimed at individuals of small groups. Employee involvement programmes requiring fundamental
changes in work expectation, reporting, procedures and reward systems are aimed at improving the
effectiveness of the organization. The human resource development professional involved in the
organization development intervention acts as an agent of change. He often consults and advising
the line manager in strategies that can be adopted to implement the required changes and sometimes
becomes directly involve in implementing these strategies.
3. Career development
It is a continuous process in which an individual progresses through different stages of career each
having a relatively unique set of issues and tasks. Career development comprises of two distinct
processes. Career Planning and career management. Whereas career planning involves activities to
be performed by the employee, often with the help of counselor and others, to assess his capabilities
and skills in order to frame realistic career plan. Career management involves the necessary steps
that need to be taken to achieve that plan. Career management generally focus more on the steps that
an organization that can take to foster the career development of the employees.

 ROLE OF HRD MANPOWER: The objective of human resource manpower development

is to provide a framework for employees to develop their competencies necessary for
individual and organizational efficiency and productivity as well as career growth. The
employer is responsible for devising programs geared toward an employee's career
development and job skills acquisition after employment through training, performance
management and organization development. Manpower development is typically a part of the
organization's human resource strategy and aims to maximize human capital potential so as to
attain strategic business objectives.
  Training and Development of Manpower
Among manpower development's functions is to oversee the development of human expertise in the
organization to improve productivity and efficiency. Through planning and monitoring of employee
work results, development programs are designed to ensure employees acquire pertinent skills and
qualities required for working at higher levels. This motivates the workers and enhances their career
growth. Systematic training programs also place the organization in a unique position to confront the
growing and changing needs of manpower, technology and diversification of business activities.
Performance Appraisal and Management
Performance evaluations and reviews are a crucial opportunity for employee improvement in your
organization. Manpower development should devise techniques for managers to use in conducting
meaningful and effective appraisals. Typically, these should help the manager rate goal achievement
and assess performance against some defined metrics such as job-specific competencies and core
company values. Effective performance appraisals will allow your management team to identify
gaps in employee productivity, which can serve as the foundation for programs geared toward
employee development.
 Manpower Planning and Strategy Development
Planning consists of getting the right number and right kind of people in the right place. This
ensures employees are assigned tasks for which they are well-suited to help the organization achieve
its goals. Human resource manpower development has to analyze the current manpower inventory,
make future manpower forecasts and determine whether recruitment from outside or promotions
from within are necessary to boost performance. By identifying the different skill sets and talent
required by respective areas of your business, a human resources strategy can be developed that
considers how existing and future employees fit into your company’s overall business.
 Employee Welfare and Quality of Work Life
The ultimate objective of manpower development is to contribute to the professional well-being,
pride and motivation of the worker. Employee welfare refers to those efforts that improve the living
standard of employees and hence the quality of work life. The goal is to provide good leadership,
interesting and challenging jobs, safe working conditions and good wages. Several benefits can be
extended to employees as indirect compensation plans to motivate them to perform better. In
addition, you can implement an open-door policy or allow your employees to participate in the
decisions that affect them and their relationship with the company.