HRM Concept

Joginder Grewal
 HRM
 Human resource management is concerned with the development and
implementation of people strategies, which are integrated with corporate
strategies, and ensures that the culture, values and structure of the
organization, and the quality, motivation and commitment of its
members contribute fully to the achievement of its goals.

 Definition: HRM is the process of acquiring, training, appraising, and

compensating employees, and of attending to their labor relations, health
& safety, and fairness concern.
 Utilization of other resources are depends upon HRM.
 Human Resource Management

 With the advent of resource centric organizations in recent decades, it has

become imperative to put “people first” as well as secure management
objectives of maximizing the ROI (Return on Investment) on the resources.

 This has led to the development of the modern HRM function which is
primarily concerned with ensuring the fulfillment of management
objectives and at the same time ensuring that the needs of the resources are
taken care of.

 In this way, HRM differs from personnel management not only in its
broader scope but also in the way in which its mission is defined.

 HRM goes beyond the administrative tasks of personnel management and

encompasses a broad vision of how management would like the resources
to contribute to the success of the organization.
Introduction of HRM
 Human resources are the most valuable and unique
assets of an organization. The successful management of
an organization's human resources is an exciting,
dynamic and challenging task, especially at a time when
the world has become a global village and economies are
in a state of flux. The scarcity of talented resources and
the growing expectations of the modern day worker
have further increased the complexity of the human
resource function. Even though specific human resource
functions/activities are the responsibility of the human
resource department, the actual management of human
resources is the responsibility of all the managers in an
organization.

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 Introduction of HRM
 It is therefore necessary for all managers to
understand and give due importance to the different
human resource policies and activities in the
organization. Human Resource Management outlines
the importance of HRM and its different functions in
an organization. It examines the various HR processes
that are concerned with attracting, managing,
motivating and developing employees for the benefit
of the organization.
 HRM may be defined as a set of policies, practices
and programmes designed to maximize both personal
and organizational goals. It is the process of binding
people and organizations together so that the
objectives of each are achieved.
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Definition 1 – Integration

HRM is a series of integrated decisions that form

the employment relationships; their quality
contributes to the ability of the organizations and
the employees to achieve their objectives

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Definition 2- Influencing

 HRM is concerned with the people dimensions

management. Since every organization is
made up of people ,acquiring their services,
developing their skills , motivating them to
higher levels of performance and ensuring
that they continue to maintain their
commitment to the organization are
essential to achieving organizational
objectives.

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 Definition 3 Applicability

• HRM is planning, organizing directing and

controlling of the procurement ,
development, compensation , integration,
maintenance, and separation of human
resources to the end that individual,
organizational and social objectives are
accomplished.

Core Elements of HRM

Organizations ------People ------ Management

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Meaning of HRM
It is concerned with management of people
from Recruitment to Retirement

To select right person, at the right place

for the right job.

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Characteristics of Human Resource
Management
 Comprehensive function: HRM is concerned with
managing people at work. It covers all types of people
at all level in the organization.
 People oriented: HRM is concerned with employees
as individual as well as groups. It is the task of dealing
with human relationships within an organization. It is
the process of brining people and organizations
together so the goals of each are met.
 action oriented: HRM focuses on action rather than on
record-keeping or procedures. It stress on solution on
HR problems to achieve both organizational and
personal objective.
 Characteristics of Human Resource
Management
 Development oriented: HRM is concerned with
developing potential of employees so that they get
maximum satisfaction from their work and give their
best efforts to the organization.
 Pervasive function: It is all pervasive. It is equally
useful and necessary in government armed forces, sports
and the like.
 Continuous function: HRM is an ongoing and never
ending exercise. It can not be practiced only one hour
each day or one day a week.
 Individual-oriented: Under human resource management,
every employee is considered as individual so as to
provide services and programmes to facilitate employee
satisfaction and growth.
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Characteristics of Human Resource
Management
 Future oriented :- HRM is concerned with helping
an organization achieve, in the future by providing
for competent and well-motivated employees.
 Challenging function: Managing HR is a
challenging job due to the dynamic nature of
people. People have sentiments and emotions so
they cannot treated like machines.
 science as well as Art: HRM is science as it
contains an organized body of knowledge
consisting of principle and techniques. It is also an
art because it involves applications of theoretical
knowledge to the problems of HR.
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 Objectives of HRM
 To help organization attain its goals by providing well trained and well
motivated employees.
 To employ the skills and knowledge of employees efficiently and
effectively, i.e., to utilize HR effectively.
 To enhance job satisfaction of employees by encouraging and assisting
every employee to realize his full potential.
 To establish and maintain productive, self-respecting and internally
satisfying working relationship among all the members of the
organization.
 To bring about maximum development of individuals by providing
opportunities for training and development.
 To maintain high morale and good HR within the organization.
 To develop and maintain a quality life (QWL) which makes
employment in the organization a desirable personal and social situation.
 To recognize and satisfy individual needs and group goals by offering
appropriate monetary and non-monetary incentives.
Importance of Human Resource Management

Organization Significance:
 1. Good human resource practice can help in
attracting and retaining the best people in the
organization.
 2. Developing the necessary skills and right attitudes
among the employees through training, development,
performance appraisal, etc.
 3. Securing willing cooperation of employees through
motivation, participation, grievance handling, etc.
 4. Effective utilization of available human resources.
 5. Ensuring that enterprise will have in future a team
of competent and dedicated employees.

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Importance of Human Resource Management:

Social Significance:
 i. Employment opportunities multiply.
 ii. Eliminating waste of human resources through
maintenance of physical and mental health.
 iii. Scare talents are put to best use. Companies
that pay and treat people well always race ahead
of others and deliver excellent results.

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Importance of Human Resource Management

Professional Significance:
 1. Developing people on continuous basis to meet
challenge of their job.
 2. Promoting team-work and team-spirit among
employees.
 3. Offering excellent growth opportunities to people
who have the potential to rise.
 4. Providing environment and incentives for
developing and utilizing creativity.

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Major Functions of the HRM
Staffing

Training and Development

Motivation

Maintenance
 Functions of HRM

Managerial Operative
Function Function

Planning
Procurement

Organizing Development

Compensation
Directing
Integration

Controlling
Maintenances
Procurement: It is concerned with securing and employing
the right kind and proper number of people required to
accomplish the Org. objectives.
Job Analysis

HR Planning

Recruitment

Selection

Placement

Induction

Transfer

Promotion

Separation
Development: HRD is the process of improving the
knowledge, skills, aptitude and values of employees so
that they can perform the present and future jobs
more effectively.

Performance Appraisal

Training

Executive Development

Career Planning &

Development
Compensation: It refers to providing equitable
and fair remuneration to employees for their
contribution to the attainment of organizational
objectives.

Job Evaluation

Wage & Salary

Administration

Bonus & Incentives

Integration: It is the process of reconciling the goals of
the organizations with those of its members.

Motivation

Job Satisfaction

Grievance Redressal

Collective Bargaining

Conflict Management

Employees’ Partiicipation

Discipline
Maintenance: It is concerned with protecting and
promoting the physical and mental health of employees.

Health

Safety

Social Security

Welfare Schemes

HR Records
Employment / Staffing
 Staffing - Process through which organization ensures it always has
proper number of employees with appropriate skills in right jobs at right
time to achieve organizational objectives.

 Job analysis - Systematic process of determining skills, duties, and

knowledge required for performing jobs in organization.

 Human resource planning - Systematic process of matching the internal

and external supply of people with job openings anticipated in the
organization over a specified period of time .

 Recruitment - Process of attracting individuals on a timely basis, in

sufficient numbers, and with appropriate qualifications, to apply for jobs
with an organization.

 Selection - Process of choosing from a group of applicants the individual

best suited for a particular position and the organization .
 Job Analysis
 The process whereby jobs are investigated in sufficient detail to
enable(a)recruitment of people (b)assessment of the
performance of people who are already working.

Job analysis identifies the following information:

 Detailed breakdown of the duties involved in a position.

 Skills, knowledge, attitudes and experience a person should
bring to the position.
 Environment condition of the job.

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Job Analysis is of two forms:
Job Description
 Critical skills required for the job
 Tasks or performance standard,
 Responsibilities and disciplinary procedures
 Service condition of the job
 Pay rates
Job Specifications
 Describes the requirements of the person for the job
 Abilities
 Educational qualifications
 Special physical and mental skills
 Training
 Experience and others
Recruitment
 Initial attraction & screening of applicants.

Internal Sources
 Job Posting

 Succession Plans

 Referrals

External Sources
 Ads

 Job Placement Agencies

 Internet

 Placement through Colleges and Universities

Selection
Application Evaluation Methods of Selection:
 Interviews
 Tests
 Background Investigations
 Medical Tests

Hiring

This is the process of appointing the person selected for a particular job.

Induction

•Introducing the employee to the organization and the organization’s culture.

•Introducing the employee to his/her job.
 Training & Development
Employee training
 Designed to assist employees in acquiring better skills for their current
jobs.
 Employee development

 Designed to help organization to ensure that it has the necessary talent

internally for meeting the future human resource needed.
Organization Development

 Deals with facilitating system–wide change in the organization.

 Career development
 Designed to assist employees in advancing their work lives. However, it
is a responsibility of the individual, not of the organization (employee
centered).
 Training and Development
 Training - Designed to provide learners with knowledge and skills
needed for their present jobs

 Development - Involves learning that goes beyond today's job; it has

more long-term focus

 Career development - Formal approach used by organization to ensure

that people with proper qualifications and experiences are available when
needed

 Organization development - Planned process of improving organization

by developing its structures, systems, and processes to improve
effectiveness and achieving desired goals

 Performance management - Goal-oriented process directed toward

ensuring organizational processes are in place to maximize productivity
of employees, teams, and ultimately, the organization
 Performance appraisal - Formal system of review and evaluation of
individual or team task performance
 Motivation
 An employee’s intrinsic enthusiasm about and drive to accomplish work.

Maintenance-retention of productive employees

 Welfare Administration
 Medical facilities
 Canteen facilities
 Housing facilities
 Transport facilities
 Recreation facilities
 Loan facilities
 Educational facilities
 Various Incentive schemes/clear view of retirement benefit

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 Health and Safety Administration
 Employees who work in safe environment and enjoy good health are
more likely to be productive and yield long-term benefits to
organization.

 Safety - Involves protecting employees from injuries caused by work-

related accidents.

 Health - Refers to employees' freedom from illness and their general

physical and mental well being.

 Employee assistance programs

 Medical
 Dental
 Accidental
 Educational
 Retirement
Compensation
 Direct Financial Compensation - Pay that person receives in form of
wages, salaries, bonuses, and commissions.

 Indirect Financial Compensation (Benefits) - All financial rewards not

included in direct compensation such as paid vacations, sick leave,
holidays, and medical insurance.

 Nonfinancial Compensation - Satisfaction that person receives from

job itself or from psychological and/or physical environment in which
person works.
Maintenance
 It is concerned with protecting and promoting the physical and
mental health of employees. For this , several types of fringe
benefits such as housing, medical aid, educational facilities,
conveyance facilities etc. are provided.

 Social security measures are provided such as; PF, Pension plans,
gratuity, maternity benefits disablement allowances, group
insurance etc.

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Scope of HRM
 Setting general and specific management policy for
organizational relationship, and establishing and
maintaining a suitable organization for leadership
and cooperation.
 Collective bargaining, contract negotiation,
contract administration and grievance handling.
 Staffing the organization,finding,geeting and
holding prescribed types and number of workers.
 Developing and maintaining motivation for workers
by providing incentives.
 Reviewing and auditing manpower management in
the organization.

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Scope of HRM
 HRM in Personnel Management: This is typically direct
manpower management that involves manpower
planning, hiring (recruitment and selection), training
and development, induction and orientation, transfer,
promotion, compensation, layoff and retrenchment,
employee productivity. The overall objective here is to
ascertain individual growth, development and
effectiveness which indirectly contribute to
organizational development.
 It also includes performance appraisal, developing new
skills, disbursement of wages, incentives, allowances,
traveling policies and procedures and other related
courses of actions.

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Scope of HRM
 HRM in Employee Welfare: This particular aspect of HRM deals with
working conditions and amenities at workplace. This includes a wide
array of responsibilities and services such as safety services, health
services, welfare funds, social security and medical services. It also
covers appointment of safety officers, making the environment
worth working, eliminating workplace hazards, support by top
management, job safety, safeguarding machinery, cleanliness,
proper ventilation and lighting, sanitation, medical care, sickness
benefits, employment injury benefits, personal injury benefits,
maternity benefits and family benefits.
 It also relates to supervision, employee counseling, establishing
harmonious relationships with employees, education and training.
Employee welfare is about determining employees’ real needs and
fulfilling them with active participation of both management and
employees. In addition to this, it also takes care of canteen
facilities, crèches, rest and lunch rooms, housing, transport,
medical assistance, education, health and safety, recreation
facilities, etc.
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Scope of HRM
 HRM in Industrial Relations: Since it is a highly sensitive area, it
needs careful interactions with labor or employee unions,
addressing their grievances and settling the disputes effectively in
order to maintain peace and harmony in the organization. It is the
art and science of understanding the employment (union-
management) relations, joint consultation, disciplinary procedures,
solving problems with mutual efforts, understanding human
behavior and maintaining work relations, collective bargaining and
settlement of disputes.
 The main aim is to safeguarding the interest of employees by
securing the highest level of understanding to the extent that does
not leave a negative impact on organization. It is about
establishing, growing and promoting industrial democracy to
safeguard the interests of both employees and management.

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Difference between PM & HRM

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