Module I: Concept scope and objectives of HRM. Relationship between HRM and HRD. The challenges for HRM – Environmental, organizational and Individual. Role and functions of HR managers in the changing business scenario. Human Resources Planning – overview, Recruitment – concept, objectives, legal framework regulating recruitment in India, Selection – Objectives and methods, Test and interviews, Induction and orientation, validity and reliability of Tests and interviews What is Human Resource Management? HRM is the study of activities regarding people working in an organization. It is a managerial function that tries to match an organization‘s needs to the skills and abilities of its employees. Definitions of HRM Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations. Human resource management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. HRM is the personnel function which is concerned with procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the organization‘s objectives. Therefore, personnel management is the planning, organizing, directing, and controlling of the performance of those operative functions (Edward B. Philippo). According to the Invancevich and Glueck, ―HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization‖. According to Dessler (2008) the policies and practices involved in carrying out the ―people‖ or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of HRM. Nature of HRM HRM is a management function that helps manager‘s to recruit, select, train and develop members for an organization. HRM is concerned with people‘s dimension in organizations. The following constitute the core of HRM 1. HRM Involves the Application of Management Functions and Principles. The functions and principles are applied to acquiring, developing, maintaining and providing remuneration to employees in organization. 2. Decision Relating to Employees must be Integrated. Decisions on different aspects of employees must be consistent with other human resource (HR) decisions. 3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization will result in betterment of services to customers in the form of high quality products supplied at reasonable costs. 4. HRM Functions are not Confined to Business Establishments Only but applicable to non business organizations such as education, health care, recreation and like. HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness. Concept Of Human Resource Management (HRM) Human resource management was previously known as personnel management which was concerned with the activities of a single department. It was typically concerned with the administration of human. The functions carried out by the department were recruitment and selection, reward, appraisal, development, grievance handling, retirement,registration and so forth. It was introduced and developed in the bureaucratic set up in which importance was given on organization and administration of manpower. Now, human resource management may be defined as a process in which human resources are recruited and mobilized in such a way that it helps in achieving the objective of the organization.
HRM is concerned with the people dimension in management under which the consideration is given towards recruitment and selection, development, motivation and maintenance of human resources in an organization. It is one of the main functions of management, which is related with the management of human energies and competencies. Human resource management helps to ensure the right man,for the right position and at the right time in a changing environment. The organizational performance depends on the efficiency of human resource working in the organization. Hence, a proper set up should be taken for manpower planning, recruitment, motivation, training and development, performance evaluation, remuneration management and industrial relation. Moreover, human resource management is concerned with the development of human skill, knowledge and ability to perform the organizational tasks effectively and efficiently. It is a field of study consisting of four functions- acquisition, development, motivation and maintenance of human resources. The acquisition is related with getting people,development is with preparing them for work, motivation refers to activating them and finally maintenance refers to keeping them retained in the organization. Therefore, human resource management is an art of managing and mobilizing people in the organization. It is done through the application of different practices and policies which ultimately values human resources as major asset of an organization. It integrates personnel function into strategic management. Human resource management is regarded as sub system of the organization. Human resource offers a distinct approach of managing human resources in today's competitive and changing environment. It is an emerging discipline, which possesses the following features: 1. Human Resource Management Is A Management Of An Individual Human resource management is concerned with people dimension of management. Hence it manages different people such as worker/labor, supervisors, managers, departmental heads and other related top managers too. Therefore, human resource management is defined as the management of human resource and their commitment towards work. 2. Human Resource Management Is A Continuous Process Human resource management is not a shot affair, rather it is an ongoing process of managing people and their competencies. It is continued till the dissolution of an organization. All the processes involved in HRM should run continuously. 3. Human Resource Management Is A Dynamic Function The principles and practices of HRM should not be rigid. Rather they should be dynamic. It means HRM is a dynamic function whereby the procedures and practices are influenced by the environmental factors. Employees should gain an updated knowledge and ability to work in the changing environment. 4. Human Resource Management Is a Universal Function HRm is a universal function in the sense that it is applicable in all types of organizations. The principles and practices are applied irrespective of size, nature, scope and purpose of the organization. 5. Human Resource Management Is A Strategic Approach HRM is taken as strategic approach for organizational development. It helps to mobilize human resource in the organization in order to achieve the stated goals and objectives strategically. All the activities of management are arranged in such a way that they are interconnected with efficient and effective utilization of human resources according to change in organizational strategy. 6. Integration Of Goals Usually there is a goal difference between organizational goal and individual goal. An employee wants to satisfy his/her individual goal first. But managers want to accomplish organizational goals before something else. Hence, HRM practices and principles help in integrating individual and organizational goal into a framework. As a result of which, employees are motivated towards higher level work performance for achievement of organizational goal.
7. Human Resource Management Is Future-oriented HRM is future oriented behavior in the sense that it helps in assessing human resource requirement for future. It helps in determining future goals and objectives of the organization and it employees the people to get the job done in future period of time. Features Of Human Resource Management 1. HRM involves management functions like planning, organizing, directing and controlling 2. It involves procurement, development, maintenance of human resource 3. It helps to achieve individual, organizational and social objectives 4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology. 5. It involves team spirit and team work. Scope of HRM The scope of HRM is, indeed, very vast and wide. It includes all activities starting from manpower planning till employee leaves the organisation. Accordingly, the scope of HRM consists of acquisition, development, maintenance/retention, and control of human resources in the organisation (see figure 1.1). The same forms the subject matter of HRM. As the subsequent pages unfold, all these are discussed, in detail, in seriatim. The National Institute of personnel Management, Calcutta has specified the scope of HRM as follows: 1. The Labour or Personnel Aspect: This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay-off and retrenchment, remuneration, incentives, productivity, etc. 2. Welfare Aspect: It deals with working conditions, and amenities such as canteen, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial Relations Aspects: This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary actions, settlement of disputes, etc. The major HRM activities include HR planning, job analysis, job design, employee hiring, employee and executive remuneration, employee motivation, employee maintenance, industrial relations and prospects of HRM. The scope of Human Resources Management extends to: All the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to the management of people as employees in any type of organization. All the dimensions related to people in their employment relationships, and all the
dynamics that flow from it. The scope of HRM is really vast. All major activities n the working life of a worker – from the time of his or her entry into an organization until he or she leaves it comes under the purview of HRM. American Society for Training and Development (ASTD) conducted fairly an exhaustive study in this field and identified nine broad areas of activities of HRM. These are given below: Human Resource Planning Design of the Organization and Job Selection and Staffing Training and Development Organizational Development Compensation and Benefits Employee Assistance Union/Labour Relations Personnel Research and Information System a) Human Resource Planning: The objective of HR Planning is to ensure that the organization has the right types of persons at the right time at the right place. It prepares human resources inventory with a view to assess present and future needs, availability and possible shortages in human resource. Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR Planning develops strategies both long-term and short-term, to meet the man-power requirement. b) Design of Organization and Job: This is the task of laying down organization structure, authority, relationship and responsibilities. This will also mean definition of work contents for each position in the organization. This is done by ―job description‖. Another important step is ―Job specification. Job specification identifies the attributes of persons who will be most suitable for each job which is defined by job description. c) Selection and Staffing: This is the process of recruitment and selection of staff. This involves matching people and their expectations with which the job specifications and career path available within the organization. d) Training and Development: This involves an organized attempt to find out training needs of the individuals to meet the knowledge and skill which is needed not only to perform current job but also to fulfil the future needs of the organization. e) Organizational Development: This is an important aspect whereby ―Synergetic effect‖ is generated in an organization i.e. healthy interpersonal and inter-group relationship within the organization. f) Compensation and Benefits: This is the area of wages and salaries administration where wages and compensations are fixed scientifically to meet fairness and equity criteria. In addition labour welfare measures are involved which include benefits and services. g) Employee Assistance: Each employee is unique in character, personality, expectation and temperament. By and large each one of them faces problems everyday. Some are personal some are official. In their case he or she remains worried. Such worries must be removed to make him or her more productive and happy. h) Union-Labour Relations: Healthy Industrial and Labour relations are very important for enhancing peace and productivity in an organization. This is one of the areas of HRM. i) Personnel Research and Information System: Knowledge on behavioral science and industrial psychology throws better insight into the workers expectations, aspirations and behaviour.Advancement of technology of product and production methods have created working environment which are much different from the past. Globalization of economy has increased competition many fold. Science of ergonomics gives better ideas of doing a work more conveniently by an employee. Thus, continuous research in HR areas is an unavoidable requirement. It must also take special care for improving exchange of information through effective communication systems on a continuous basis especially on moral and motivation.