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Introduction
 Organization is a group of people established
either formally or informally for the attainment of
certain objectives.
 So, people are the foundation of any organization.
 In societal context, organization need people
and people need organization.
 It is people who staff, lead and control organizations.
 Persons involved in an organization are referred
as human resource.
 Simply, the overall management of such personnel
in an organization is called human resource
management.

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Who are Human Resource?
 In organizational context, the personnel involved
in different activities of an organization are the
human resources of that organization.
 Such type of personnel (referred as human resources)
have one thing common i.e. fulfillment of their assigned
duties
& responsibilities in order to achieve the organizational
goal and objectives.
 People become human resource when they involved in
any organization with physical strength, energy
and competencies. Competencies consists of knowledge,
skill, attitudes and potential for growth.
 Human resources are effectively mobilized by the
organization for the achievement of desired results.

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Human Resource Management
 An essential function of management; and also
an important part of every manager’s job.
 HRM is concerned with managing people
in organizations.
 It is concerned with philosophy, principles,
policies and practices related to human
aspect of management.
 It aims at achieving organizational
objectives through the efficient and effective
mobilization of human resources.

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Contd…
According to Donnelly and Gibson,
 HRM is the process of accomplishing
organizational objectives by acquiring, retaining,
terminating, developing and properly using the
human resources in an organization.
According to Gary Dessler,
 HRM refers to the policies and practices involved
in carrying out the people or human resource aspects
of amanagement position, including recruiting,
screening, training, rewarding and appraising.

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 Human Resource Management (HRM) is a
process concerned with the management of
personnel along with their energies and
competencies for the achievement of
organization objectives by the process of
acquiring, developing and utilizing such personnel.

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Nature of HRM
Human Focus
HRM is mainly concern with people, their development, proper utilization of human resource. In any
organization, human resources are very important asset.
Management Function
HRM is applied to all functions of management i.e. finance function, marketing function, IT functions
etc. Also HRM is performed by all level management- by Top, middle and lower level managers.
Dynamic
HRM is dynamics in nature and affected by changes in environment like political-legal, economic,
socio-cultural & technological.
Mutually oriented
HRM is mutually oriented between employer and employee. It is the manger of recruit employees
and make them achieve organizational goal.
Continuous-on-going activity
Goal the function HR manager will never stop. Whether it is the task recruitment or maintenance of
HR, the responsibilities are performed by HR manager. Whenever there are new need of HR, it
requires new recruitment. In this way we can say HRM is on-going and continuous activity.

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Components of HRM
 Human Resource Planning
 Recruitment & Selection
 Performance Management
 Training and Development
 Employee – Management Relation
 Management Information System

COMPONENTS OF HRM• HUMAN RESOURCE PLANNING
• HR Planning consists of finding the need of the human resources in the
organization. In simple words, HR planning refers to how much number of
people are requires in the organization and in which department.
• RECRUITMENT AND SELECTION
• Recruitment refers to finding the people for the vacant post in the
organization by the way of advertising etc. after the planning process of
requirement of the post. Selection is the way of selecting people for the post
vacant from the recruiting people.
• PERFORMANCE MANAGEMENT
• It is the very important part of HRM. The employee or labour working very
well in the organization need to be appraised. This appraisal is to be done
by the performance management of the employee. This part is done by the
HR manager.
• TRAINING & DEVELOPMENT
• In simple terms, training and development refer to the imparting of specific
skills, abilities and knowledge to an employee. More clearly T&D may be
understood as any attempt to improve current or future employee
performance by increasing employee’s ability to perform through learning.

COMPONENTS OF HRM(CONT…)
• EMPLOYEE – MANAGEMENT RELATION
• A good employer – employee relationship is very important
for any organization. If there is no good relation between
management and employee, the work may not be efficient and
hence the organizational objective may not be achieve.
• MANAGEMENT INFORMATION SYSTEM
• It refer to the flow of information. The flow of information
may be formal or informal. Some organization use a structured
information system and some uses un-structured i.e. informal.

FUNCTIONS OF HRM
1. HR Planning: In simple words, HR planning refer to how much manpower
is required in the organization and in which department or functional area. It
a blueprint made for the requirement of labour, employees and at all other
level of management. The recruitment and selection is based upon this
Human resource planning.
2. Acquisition of HR: acquisition consist of recruitment and selection of the
human resources in an organization. After the manpower planning it is the
duty of HR manager to fill the vacant post in the organization through the
process of hiring.
3. Utilization of HR: It is very important for an HR manager to use the human
resources appropriately and in very effective manner so the maximum
productivity can be achieved and hence to achieve the organizational goal.
4. Development of HR: Development of human resources done through
training. In simple terms, training and development refer to the imparting of
specific skills, abilities and knowledge to an employee. More clearly T&D
may be understood as any attempt to improve current or future employee
performance by increasing employee’s ability to perform through learning.

FUNCTIONS OF HRM(CONT…)
• 5. Maintenance of HR: It simply refer to retaining the good employees in
the organization. Also it is the responsibility of the HR manager to provide
all the facilities and services to employees so that they can work in very
effective and efficient manner.
• 6. Control of HR: Control is done through the standard set for the
employees and measuring performance of them. If there is any variance
found in the outcome of the employee than it need to be overcome and
hence revising the standard of the employees.
• 7. Harmonious employer-employee relationship: The relationship
between the management and employees must always be good. If the
relationship between them is not good, then it will be difficult for
employees to work in such kind of environment. Also it would become
difficult to achieve both personal and organizational goals.
• 8. Attainment of organizational objective: The ultimate of any
organizational is to earn profit. These objective can only be achieve by the
proper utilization of human resources.

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
Challenges to HRM
 Globalization
 Technological Advances
 Cultural Environment
 Nature of work
 Size & composition of the workforce.
 Rising employees' expectations
 Life-style changes
 Less attached/temporary employees
 Learning organizations
 Impact of new economic policy
 Political ideology of the Government.

Challenges to HRM
• GLOBALIZATION: We live in a global world today. In fact, mergers, acquisitions,
collaborations, takeovers are a common phenomenon. While internationalization of
firms is obviously a sign of success, it is also a challenge as with globalization, You
are also required to handle various functions such as scheduling meetings, managing
holidays and outsourcing of talent to overcome these challenges.
• CULTURAL ENVIRONMENT: you also have to deal with several challenges
related to different languages, work culture, management approach, culture and
tradition. This is a big challenge for HR manager to maintain this in the organization.
• TECHNOLOGICAL ADVANCES: Any company must consider technological
changes as the present day world demands every firm to move with the change, or
else be left behind .Technological changes influence the overall nature of work and
businesses need to find employees that are able to adjust with the change.
During this process, unemployment as well as employment opportunities arise, creating
new challenges for HRM. With new developments in technology as well as with the use
of new tools, such as talent networks and internal social networks, there is the promise of
increased flexibility and productivity.
• RISING EMPLOYEES EXPECTATION: Many companies are struggling with
how best to structure employee compensation. Small businesses have to compete not
only with businesses of a similar size, but also with corporations with big payroll
budgets. Plus, you have to factor in the cost of benefits, training, taxes, and other
expenses, which can range from 1.5 to 3 times the employee’s salary.

Challenges to HRM
• Nature of work: It refer to kind or type of work at the workplace. It is very important factor
for an HR manager to assign jobs and duties to the employees matching with their skills and
talent.
• Size & composition of the workforce: Size refer to number of people working under a
person. It must be clear that the number of people working under a person must not be more
than he or she can handle or manage. If it does not happen than the efficiency of workers
might be reduced.
• Life-style changes: The world is changing and of course the living standard of people also
changing. Today the everyone wants a confortable life on work place. This is a very
challenging task for the HR manager to make everyone comfortable in the organization
because that is also a one of the reason of employee turnover.
• Less attached/temporary employees: An employment situation where an employee is
expected to remain in a position only for a certain period of time. The mental thinking of
these employee may be limited to only completion of job. They think once they finish their
work they will be terminated. So they may not effort more. This is the challenge for HR
manager to get the task them efficiently from these employees.

Challenges to HRM
• Political ideology of the Government and economic policy: political and
economical changes in the country always impact the organization. For example:
Demonetization and GST in India make huge impact on public as well as
organizations.

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.
SCOPE OF HRM

OBJECTIVES OF HRM
HELP ORG TO ACHIEVE GOALS: To help the organization
to attain its goals effectively and efficiently by providing
competent and motivated employees.
BETTER UTILIZATION OF HR: To utilize the available
human resources effectively.
JOB SATISFACTION: To increase to the fullest the employee’s
job satisfaction and self-actualization.
QUALITY OF WORK LIFE: To develop and maintain the
quality of work life (QWL) which makes employment in the
organization a desirable personal and social situation.
TO MAINTAIN BUSINESS ETHICS: To help maintain
ethical policies and behavior inside and outside the organization.
ESTABLISH RELATIONSHIP: To establish and maintain
cordial relations between employees and management.
To reconcile individual/group goals with organizational goals.