1. HUMAN RESOURCE MANAGEMENT
Definition
Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the organization.
HRM can also be performed by line managers.
HRM is the organizational function that deals with issues related to people such as compensation,
hiring, performance management, organization development, safety, wellness, benefits, employee
motivation, communication, administration, and training.
HRM is also a strategic and comprehensive approach to managing people and the workplace culture
and environment. Effective HRM enables employees to contribute effectively and productively to the
overall company direction and the accomplishment of the organization's goals and objectives.
HRM is moving away from traditional personnel, administration, and transactional roles, which are
increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees
and that employee programs impact the business in measurable ways. The new role of HRM involves
strategic direction and HRM metrics and measurements to demonstrate
Scope
Human resources are undoubtedly the key resources in an organization, the easiest and the most
difficult to manage! The objectives of the HRM span right from the manpower needs assessment
to management and retention of the same. To this effect Human resource management is
responsible for effective designing and implementation of various policies, procedures and
programs. It is all about developing and managing knowledge, skills, creativity, aptitude and
talent and using them optimally.
Human Resource Management is not just limited to manage and optimally exploit human
intellect. It also focuses on managing physical and emotional capital of employees. Considering
the intricacies involved, the scope of HRM is widening with every passing day. It covers but is
not limited to HR planning, hiring (recruitment and selection), training and development, payroll
management, rewards and recognitions, Industrial relations, grievance handling, legal procedures
etc. In other words, we can say that it’s about developing and managing harmonious
relationships at workplace and striking a balance between organizational goals and individual
goals.
The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it
concisely. However, we may classify the same under following heads:
 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.

2. It also includes performance appraisal, developing new skills, disbursement of wages,
incentives, allowances, traveling policies and procedures and other related courses of
actions.
 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, unemployment 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.
 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.
The scope of HRM is extremely wide, thus, cannot be written concisely. However, for the sake
of convenience and developing understanding about the subject, we divide it in three categories
mentioned above
Concept of HRM
The staffing or HRM is concern with people. People are vital for achieving organizational goals.
Organizational performance depends on the quality of people and employees.
Human Resource management or HRM is management of human energy an capabilities. HRM is
theprocess concerned with the management of human energies and competencies to ensure
competent and committed workforce to achieve organizational goals in a changing environment.

3. Koontz and Weihrich : Staffing is defined and filling and keeping filled positions in the organization
structure. This includes identifying work-force requirements, inventory the people available and
recruiting, selection, placing, promoting, appraising, planning the careers of compensating, and
training or otherwise developing both new candidates, and current job holders to accomplishment
their tasks effectively and efficiently.
Decenzo and Robbins : Human resource management is a process consisting of the acquisition,
development, motivation and maintenance of human resources
Functions
1) Job Analysis
2) Human Resource Planning (HRP)
HRM Planning Process
Factors considered when forecasting future HR requirements.
a) Demand for the organization’s good/services
b) Plans goals and objectives
c) Method of productions
d) Retirement, transfers, resignations
e) Death
f) Retrenchments
3) Recruitment
INTERNAL EXTERNAL
Job posting Advertising
Intranet Job Placement Agencies
Succession plans Internet
Placement through Colleges
Referrals
and Universities
4) Selection
5) Hiring
6) Induction
7) Performance Evaluation
8) Compensation Management

4. The main objective of the function is to develop and maintain a good salaried and wages system which is
reasonable both internally and externally.
Factors affecting Salaries and Wages
Cost of living
Supply and demand of labor
Government requirements (minimum wage rates)
Competitor wage scales
Trade Union influences
labor productivity
9) training and Development
Methods of training and development
Apprenticing
On the job training
Off the job training
Simulations
Role playing
Case studies
9) Employee Movements
10) Welfare Administration
This refers to all the facilities and comforts given to the employee by the employer apart from wages,
salaries and incentives.
Medical facilities
Canteen facilities
Housing facilities
Transport facilities
Recreation facilities
Loan facilities

5. Educational facilities
11) Health and safety Administration
It is important to control the performance and behavior of the employees according to the rules and
regulations of the organization. For this very reason it is important to develop, implement and maintain an
appropriate disciplinary system.
Importance of a discipline administration:
To reduce conflicts and confusions
To control the employees in an orderly manner
To ensure employees behavior in accordance with performance standards, rules and regulations of the
organization
12) Discipline Administration
13) Grievance Handling
A grievance can be identified as a situation where the employee is in metal distress, dissatisfies or has a
bad attitude, due to a work related unreasonable or unjust situation.
A grievance could take place for various reasons;
Job related reasons
Work services related reasons
Employee management related reasons
Service conditions related reasons
Employee behavior related reasons
14) Labour Relations
The continues relationship between the labour force and the management. Since labour forces
are organized as Trade Unions, it is actually a relationship between Trade union representative
and the management. However the Government is also an involved as a third party in order to
regulate this relationship by ways of laws.

6. This relationship is also more commonly known as a tri-partite relationship.
If in case there is a dispute between the employees and the management, the most common
way of dispute resolution is through negotiations or Collective Bargaining and when the two
parties reach to an agreement it’s known as Collective Agreement.
a) Collective Bargaining: this can be identified as the negotiation that takes place
between the management and the Trade unions during a particular time period
regarding labour/Industrial issues.
b) Collective Agreement: The agreements which the management and the Trade unions
get into after a collective Bargain
Objectives