HRM Meaning

As outlined above, the process of defining HRM leads us to two

different definitions The first definition of HRM is that it is the process of
managing people in organizations in a structured and thorough
manner. This covers the fields of staffing (hiring people),
retention of people, pay and perks setting and management,
performance.
The second definition of HRM encompasses the management
of people in organizations from a macro perspective i.e.
managing people in the form of a collective relationship
between management and employees

HRM - Scope
Labour Personnel Aspect manpower, selection,
placement, planning, recruitment, induction, etc
Welfare Aspect Working conditions and amenities
Industrial relation aspects union management
relationship.

HRM -Features
1.

HRM as a Process

2.

Continuous Process - It has to continuously change and adjust

according to the changes in the environment, changes in the
expectations of the staff, etc.

3.

Focus on Objectives

4.

Universal Application - That is, it can be used for business as well as

for other organisations such as schools, colleges, hospital, religious
organisations, etc.

5.

Integrated use of Subsystems - HRM involves the integrated use of

sub-systems such as Training and Development, Career Development,
Orgnisational Development, Performance Appraisal, Potential
Appraisal, etc. All these subsystems increase the efficiency of the staff
and bring success to the organisation.

HRM - Features
6. Multidisciplinary - it uses many different subjects such as
Psychology, Communication, Philosophy, Sociology,
Management, Education, etc.
7. Develops Team Spirit - Team spirit helps the staff to work
together for achieving the objectives of the organisation.
8. Develops Staff Potentialities - HRM develops the
potentialities of the staff by giving them training and
development. This will make the staff more efficient, and it
will give them more job satisfaction.
9. Key Elements for solving problems
10. Long Term Benefits

HRM Objectives
1. To help the organization reach its goals.
2. To ensure effective utilization and maximum
development of human resources.
3. To ensure respect for human beings. To identify and
satisfy the needs of individuals.
4. To ensure reconciliation of individual goals with those
of the organization.
5. To achieve and maintain high morale among employees.
6. To provide the organization with well-trained and wellmotivated employees.

HRM - Objective
7. To increase to the fullest the employee's job satisfaction and
self-actualization.
8. To develop and maintain a quality of work life.
9. To be ethically and socially responsive to the needs of society.
10. To develop overall personality of each employee in its
multidimensional aspect.
11. To enhance employee's capabilities to perform the present job.
12. To equip the employees with precision and clarity in
transaction of business.
13. To inculcate the sense of team spirit, team work and inter-team
collaboration

HRM Functions
Managerial Functions
Operative Functions

HRM Functions | Managerial

Managing people is the important aspect of every manager so like other
managers; a human resource manager performs the various functions
such as:
Planning - Planning is a deciding stage that what is to be done exactly.
As it involves identification of alternatives and decision making. We
consider that planning includes forecasting and set of programs,
procedure to achieve goal.
Organizing - Organizing includes identification and grouping of work
activities.
Staffing - People could be the dynamic elements of management so
without proper sort of people things will remain immaterial. It involves
communication, Counseling.

HRM Functions | Managerial

Directing - Relates to all levels of management that includes
guiding, supervising, communication, motivation, leadership.
Co-coordinating - Concerned with the unifying the action of a
group of people.
Controlling - Involves some restriction, corrective action,
handling situation.

HRM Functions | Operative

1. Procurement function - Concern with the right kind and right number
of people required to accomplishment the organizational objectives. It
consists of the following activities Job Analysis - Job analysis identify the nature of job and what type of
people required to perform these job effectively.
Recruitment - Recruitment is the process of identifying prospective
employees, stimulating, encouraging them to apply for a particular job
or jobs in an organization.
Selection - Selection is the process of examining the applicants with
regard to their suitability for the given job and choosing the best from
the suitable candidates.
Human Resource Planning - Human resource planning is the process
of estimating the present and future manpower requirements of the
organization.

HRM Functions | Operative

Placement -The selected candidates are assigned to a specific job
known as placement.
Orientation/Induction - Orientation is the process of introducing
new employees to an organization that includes introducing new
employee to an existing employee, in their specific jobs and
departments.
Transfer Placing Employees
Promotion upward reassignment

HRM Functions | Operative

2. Development function - Human Resource Development is the process
of improving the knowledge, skill, and values of employees so that they
can perform the present and future job more effectively.
Performance Appraisal - Performance Appraisal is a systematic
evaluation of present potential capabilities of personnel. It is a process
of collecting, analyzing and evaluating data relative to job behavior and
results of individuals.
Training - Training is an organized procedure for improving the
knowledge and skill of the employees for doing a particular job or for a
definite purpose. Through training people learn and acquire new skills
and job knowledge.
Career planning and development - Career planning and development
involve the planning for the career of employees and implementing
these plans. It is only possible through promotions and transfers.

HRM Functions | Operative

3. Compensation functions - Provides appropriate remuneration to
employees for their contribution to achieve organizational
objectives. It consists of the following activities Job evaluation - Job evaluation is a process of determining the
relative with of a job.
Salary Administration - Salary Administration is to determine the
salary structure for various jobs in the organization.
Bonus and Incentives
Pay roll - HRIS

HRM Functions | Operative

4. Integration various HRM policies and program.
Motivation
Job satisfaction
Conflict management
Participation of employees
Discipline

HRM Functions | Operative

5. Maintenance measured, evaluated by means of organizational
health, HRM accounting, etc
Health
Social Security
Welfare Scheme
Personnel records\Audit\Research

HRM HR Managers
Specialist Role he\she is the person for reference for all HR
connected matters of the company.
Advisor role departmental heads on various aspects of HRP.
Liaison Role connecting link between different departments
Record keepers role personnel records of employees, etc
Humanitarian role ethics, moral
Counselors role consultations
Mediators role peacemaker

HRM HR Managers
Spokesmans role represent in company in media
Problem solver solving overall HR problem
Guardians role safety, security, health, welfare of employees
Legal role labour law
Communicators role communication between employer and
employees

HRM Future challenges

Multicultural work force
Shift employers market to employees market
Corporate reorganization expansion , merger, etc
Demography of work force gender difference, policy inclusion.
Awareness and education legal knowledge
Employee expectations
Increased attrition employees leaving job
Shift from Manufacturing to Service sector