INTRODUCTION:

These are interesting times for human resource (HR) managers. Globalized production and sales mean more competition and more competition means more pressure to improve- to lower costs, to make workers more productive, and to do things better and less expensively. For employers around the world, the human resource function is a key player in helping companies achieves these strategic aims. For example, more than a third of all firms now rely on computerized HR technology to more efficiently track, test, and/or select job applicants. Forty-one percent of large firms (and 24% of firms overall) have human resource call centers, or intranet-enabled processes that let employees service their own HR needs (changes in benefits, for instance).

OBJECTIVES:
The objectives of this project paper are followings To find out the actual meaning of HUMAN RESOURCE MANAGEMENT (HRM) To identify the roots of HUMAN RESOURCE MANAGEMENT (HRM) To show that HUMAN RESOURCE

MANAGEMENT (HRM) is a important issue in ensuring a companys successful future.

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WHY IS HR MANAGEMT IMPORTANT:

Why are these concepts and techniques important to all managers? Perhaps its easier to answer this by listing some of the personnel mistakes everyone dont want to make while managing. For example Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your company taken to court because of discriminatory actions Have your company cited under federal occupational safety laws for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your departments effectiveness Commit any unfair labor practices

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Human Resource Management refers to the practices and policies need to carry out the personnel aspects of management job, specifically, Acquiring, training, appraising, Development, Motivation and Maintenance and providing a safe, ethical and fair environment for companys employees. Human Resource priorities and tasks shift with changing times, because they need to fit or make sense in terms of the companys strategic direction. The main responsibility facing human resource management is to institute Human Resource policies. In this case we also see that human resource management is facing some problems. The main responsibility facing human resource management is to make policies that produce the employees competencies and behaviors the company needs to achieve its strategic goals. Because employees do play such a big role in setting a company apart, human resource managementthe business function responsible for hiring, training, paying and maintaining employeesplays a more important role in planning and achieving a firms success. Top managements therefore increasingly expect their human resource management teams to apply their special expertise and be strategic partners in developing and executing the firms strategic plan.

Human Resource Basic Principles In actuality, employers HR priorities and duties have evolved with changing times. In the early 1900s, personnel first took over hiring and firing from supervisors, ran the payroll department, and administered benefit plans. As technology in areas like testing and interviewing began to emerge, the personnel department began to play an expanded role in employee selection, training and promotion. Union legislation in the 1930s meant more
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emphasis on protecting the firm in its interaction with unions. The discrimination legislation of the 1960s and 70s meant large potential lawsuits and penalties to employers, thus an expansion of HRs Protector role. The metamorphosis of personnel into human resource management reflects the fact in todays business environment, highly trained and committed employees, not machines are often a firms main real sustainable competitive advantage. Within each functional area of human resource management, many activities must be accomplished so that the organizations human resources can make an optimal contribution to the organizations success.

ACQUISI TION

DEVELO PMENT

MOTIVATIO N

MAINTENA NCE

HR M

>> >

>> >

>> >

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Once HR needs are determined, the next step is filling positions, or ACQUIRING human resources. Staffing activities include recruiting applicants, screening and selecting the most qualified candidates, and filling some positions through transfer or promotion. Staffing is a far complex activity than in previous times, when employment managers could rely on a help wanted sign in front of the plant or recommendations from current employees. Equal Employment Opportunity laws, along with the increased complexity of positions to be filled, require more sophisticated procedures to identify and select prospective employees. The selection process includes several important steps. The first is carefully defining the open position and determining which skills are needed to hold the job successfully. Having determined the specific skills and competencies employment managers frequently go to great lengths to increase applicant flow, through a variety of recruitment strategies. Human resources are unique in their potential to grow and develop to meet new challenges. Many individuals look at the chance to develop and move up as important in where they will

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seek employment. In order to facilitate employee progression, many organizations choose to spend substantial sums to train and develop their employees. Employee TRAINING AND DEVELOPMENT may be implemented by formal or informal procedures. Formal training is often associated with the introduction to a new job; it is also means of keeping up with technological or procedural changes. Informal training occurs on the job and is administered by superiors and peers. PERFORMANCE ASSESSMENT AND MANAGEMENT is a crucial link in the HRM process. They are the means by which organizations assess how well employees are performing and determine appropriate rewards and remedial actions. The HRM role in performance assessment and management is one of working with line managers to establish performance standards, the performance dimensions to be measured, as well as the appraisal procedures to ensure accuracy. A result of the PERFORMANCE ASSESSMENT PROCESS is determining which employees most deserve rewards. Allocating reward is a complex and specialized activity. Rewards include both the direct compensation and indirect compensation that organizations offer to employees in return to their effort. Intuition would suggest that the higher the compensation and employee receives, the greater the employees satisfactions would be. Indeed, this tends to be the case, although the relationship is not a strong one. In addition to the level of pay, a successful compensation system is based on fairness: the perceived equity of pay differentials for different jobs within the organization, the perceived equality of pay for similar jobs either within the organization or in competitor companies, and the perceived fairness of the differences in pay between employees who are in the very same job. Employees bring a variety of perspectives to bean in deciding whether they are satisfied with the compensation they receive, thus making the management of compensation a particularly challenging HR activity. The job of the HR managers does not stop once employees are hired, trained and paid. Additional issues relate to retaining and maintaining a healthy, willing work force maintaining human resources. An important source of workplace change has been the desire to promote a safer and more healthful work environment. Part of the concern for health and safety is a result of the occupational safety and health act of 1970. A part of the HRM function is established and maintaining effective relationship with employees. The process of
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collective

bargaining

requires

unionized

companies

to

negotiate

with

employee

representatives on wages, benefits, hours and other conditions of work, such as seniority, discipline and discharge procedures.

Research & Development

Human Resource Management Strategic Goals

Finance

Marketing
HRMthe Strategic View

Production

In the strategic view of HRM, the functional duties described earlier remain important. Certainly hiring, training and providing pay and benefits to employees are essential tasks that must be accomplished in any organization. However, given the change in business environment discussed earlier, many organizations are developing new structural and cultural patterns to meet the competitive demands of their dynamic and international marketplace, and the role of HR in these organizations has had to change to meet these challenges as well. The set of HR practices include following:

High level of employment security Selective hiring practices

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A focus on terms and decentralized decision making High pay levels Extensive employee training Practices that reduce status distinctions among employees High levels of information sharing

4 24%

1 27%

3 29%

2 20%

1. Acquisition 2. Training 3. Motivation 4. Retention

% of relative importance of Acquisition, Training, Motivation & Retention In Human Resource Management

Fig: SHRM Survey on 1000 people through HRMCommunity.com

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1000 800 600 400 200 0 Acquisition Training Motivation Retention

Perception of thousand people about Acquisition, Training, Motivation, Retention

Fig: SHRM Survey on 1000 people through HRMCommunity.com

Now we can say that in business organizations they use the resources available to compete with other companies. These include physical resources (e.g. plant, equipment, and technology), organizational advantages (e.g. structure, coordinating systems) and human resources. The human resources include the experience, skill, training and commitment of the employees. It is the allocation and integration of these resources that provides a company with a competitive advantage.

RECOMMENDATION:
HR MANGEMENT is the responsibility of every manager- not just those in the HR department. The intensely competitive nature of business today means HR managers must always stand ready to defend their plans and contributions in measureable terms. The HR manager must design his or her departments HR system relative to achieving the companys strategic aims. HR managers increasingly rely of information technology to help support companys strategic aims.
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In the HR issues nowadays globalization and diversity are important.

CONCLUSION:
We started our study with five independent variables (Recruitment and selection policies, decision decentralization, training and development, career development, work environment) and one dependent variable (career development, promotion policies, performance appraisal, work environment, financial performance, and pay for performance: incentive rewards). More organizations need to pay attention and develop HR policies. A carefully designed policy implemented with attention to letter and spirit assures everyone that the organization sets and plays by fair rules, and that those at the top are subject to the rules as much as anyone else.

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