Chapter: Fundamentals of Human Resource Management HUMAN RESOURCE MANAGEMENT Human Resource Management is the process of recruitment, selection of employee, providing proper orientation and induction, providing proper training and the developing skills, assessment of employee (performance of appraisal), providing proper compensation and benefits, motivating, etc. In simple terms human resource management deals with how to manage people or employees in the organization. . Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.” The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”. Scope of Human Resource Management 1. Personnel Aspect • Human Resource Planning – It is the process by which the organization identifies the number of jobs vacant. • Job Analysis and Job Design – Job analysis is the systematic process for gathering, documenting, and analysing data about the work required for a job. Job analysis is the procedure for identifying those duties or behaviour that defines a job. • Recruitment and Selection – Recruitment is the process of preparing advertisements on the basis of information collected from job analysis and publishing it in newspaper. Selection is the process of choosing the best candidate among the candidates applied for the job. • Orientation and Induction – Making the selected candidate informed about the organization’s background, culture, values, and work ethics. • Training and Development – Training is provided to both new and existing employees to improve their performance. • Performance Appraisal – Performance check is done of every employee by Human Resource Management. Promotions, transfers, incentives, and salary increments are decided on the basis of employee performance appraisal.
• • Compensation Planning and Remuneration – It is the job of Human Resource Management to plan compensation and remunerate. Motivation – Human Resource Management tries to keep employees motivated so that employees put their maximum efforts in work. 2. Welfare Aspect – Human Resource Management have to follow certain health and safety regulations for the benefit of employees. It deals with working conditions, and amenities like - canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the union members to avoid strikes or lockouts to ensure smooth functioning of the organisation. It also covers - joint consultation, collective bargaining, grievance and disciplinary procedures, and dispute settlement. Objectives of Human Resource Management • To help the organization reach its goals. • To ensure effective utilization and maximum development of human resources. • To ensure respect for human beings. • To identify and satisfy the needs of individuals. • To ensure reconciliation of individual goals with those of the organization. • To achieve and maintain high morale among employees. • To provide the organization with well-trained and well-motivated employees. • To increase to the fullest the employee’s job satisfaction and selfactualization. • To develop and maintain a quality of work life. • To be ethically and socially responsive to the needs of society. • To develop overall personality of each employee in its multidimensional aspect. • To enhance employee’s capabilities to perform the present job. • To equip the employees with precision and clarity in transactions of business. • To inculcate the sense of team spirit, team work and inter-team collaboration. What is HRM Human Resource Management or HRM is defined as a branch of management that deals with the managing manpower tactfully in an organisation. It enhances the performance and productivity of a company by assessing the best utilization of human resources. Overall, HRM can be termed as the art of putting the right human resource to the
right job with the aim of enabling the maximum possible usage of an organisation’s manpower. • • The HRM process incorporates a wide range of activities that include recruitment, selection, hiring, orientation, induction, training, skill development, feedback, performance appraisal, incentives, rewards and compensation, maintenance of workplace safety, staff motivation, health and welfare plans, change management, etc. HRM also aims to maintain good relations across the entire organization and the different levels of management. What is HRD Human Resource Development is defined as the development of employees working in any organisation. As a subset of HRM, it aims at improving the skills, competencies, knowledge, behaviour and attitude of people working in a specific organisation. The main goal of HRD activities relates to empowering and strengthening the capabilities of employees for making their performance metrics better. • • • HRD deals with the provision of beneficial opportunities to employees for their overall development. The main activities of HRD are directed towards career development, key employee identification, training & development, talent management, succession planning, performance management, coaching and mentoring, etc. The HRD department in most organizations, worldwide, work towards the development of employee’s right from their date of joining to termination or retirement. Difference between HRM and HRD Basis of Differentiation HRM Definition and full form The full form of HRM is Human Resource Management. It refers to how the principles of management can be applied to effectively manage the employees working in an organization. HRD The full form of HRD is Human Resource Development. It refers to continuous development functions that are implemented for improving upon the performance of those working in an organization.
Basis of Differentiation HRM HRD Nature HRM is basically a management function. HRD is a sub-function of HRM. Function The functions of HRM are reactive in nature and are usually applied for gaining holistic organizational goals. The functions of HRD are proactive in nature and have to be applied on a consistent basis to enhance the productivity of employees. Goal The objective of HRM is related to improving the overall performance of employees. HRD goals are usually connected with skill development, knowledge enhancement and increasing the competency of employees. Process Most HRM processes are routine in nature and have to be carried out as and when the need arises. HRD processes are ongoing and not occasional. Dependency HRM is an independent entity in itself. It comprises of different sections inclusive of recruitment and retention, HRD, compensation, performance, appraisal management, etc. HRD is a subsystem of HRM and draws many functions, attributes and processes from HRM. Concerned with HRD is concerned with the HRM deals with and has concerns for development of all aspects and people only. It handles recruitment, people within an organization and rewards, etc. manages their skill development processes. Levels of formality HRM functions are generally formal and are applied via classroom/laboratory training, etc. HRD functions may be informal as in mentorships; employees receive coaching from superiors, usually managers. Human Resource Management Challenges (HR Challenges) 1. Environmental Challenges 2. Organizational Challenges 3. Individual Challenges Environmental Challenges: The environmental challenges are related to the external forces that exist in the outside environment of an organization & can influence the performance of the management of the organization. These external forces are almost out of control of the