HUMAN RESOURCE
MANAGEMENT

Definition
Human Resource Management
Human Resource Management is the
organizational function that deals with issues
related to employees such as compensation,
hiring, performance management, organization
development, safety, wellness, benefits, employee
motivation, communication, administration, and
training.

Functions of HRM
Managerial Operative

Managerial Functions
Planning
Organizing
Directing
Controlling

Planning
 Planning is necessary to give the organization
its goals and directions to establish best
procedure to reach the goals. Planning staff
levels requires that an assessment of present
and future needs of the organization be
compared with present resources and future
predicted resources. Appropriate steps then be
planned to bring demand and supply into
balance.

Organizing
 After objectives have been established and
plans been developed then personnel manager
must design and develop organisation structure
to carry out various operations. Such as-
• Grouping of personnel activity
• Assignment of different groups of activities to
different individuals
• Delegation according to task assigned
• Co-ordination of activities of different individuals.

Directing
 The directing function of the personnel
manager involves encouraging people to work
willingly and effectively for the goals of the
orgainsation.

Controlling
 Controlling helps to evaluate and control the
performance of the department in terms of
various operative functions.

Operative Functions
Recruitment
Training & Development
Remuneration
Reward system
Motivation
Records andstatistics
Industrial relations
Separation

Factors influences by HRM

Different types of Employee Skills
Henri Fayol, a famous management theorist also called as the Father of
Modern Management, identified three basic managerial skills - technical skill,
human skill and conceptual skill.
Technical Skill
Technical skills are important especially for first line managers, who spend
much of their time training subordinates and supervising their work-related
problems.
Human Skill
Ability to work with, understand, and motivate other people as individuals or
in groups. According to Management theorist Mintzberg, the top (and middle)
managers spend their time: 59 percent in meetings, 6 percent on the phone,
and 3 percent on tours.
Conceptual skills
Creativity, broad knowledge and ability to conceive abstract ideas. For
example, the managing director of a telecom company visualizes the
importance of better service for its clients which ultimately helps attract a vast
number of clients and an unexpected increase in its subscriber base and
profits.

Henry Fayol’s 14 Principles of Management

6.
Subordination
of individual
interest to
common good
7.
Remuneration
8.Centralization
9.Scale of chain
10. Order
11. Equity
According to this principle, the needs of individuals and groups within an
organization should not take precedence over the needs of the organization
as a whole.
Wages should be equitable and satisfactory to employees and superiors.
Levels at which decisions are to be made should depend on the specific
situation, no level of centralization or decentralization is ideal for all
situations.
The relationship among all levels in the organizational hierarchy and exact
lines of authority should be unmistakably clear and usually followed at all
times, excepting special circumstances when some departure might be
necessary
There should be a place for everything, and everything should be in its place.
This is essentially a principle of organization in the arrangement of things and
people.
Employees should be treated equitably in order to elicit loyalty and devotion
from personnel.

Job Analysis
Job analysis is also known as work analysis.
Job analysis is the process of gathering and analyzing
information about the content and the human requirements
of jobs, as well as, the context in which jobs are performed.
This process is used to determine placement of job.
Job Analysis Methods
Observation method – job analyst watches employees directly or reviews
film of workers on the job.
Individual interview method – a team of job incumbents is selected and
extensively interviewed.
Group interview method – a number of job incumbents are interviewed
simultaneously.
Structured questionnaire method – workers complete a specifically
designed questionnaire.
Technical conference method – uses supervisors with an extensive
knowledge of the job.
Diary method – job incumbents record their daily activities.

Job Descriptions
Written statement of what jobholder does, how it is done,
under what conditions and why.
Common format: title; duties; distinguishing
characteristics; environmental conditions; authority and
responsibilities.
Used to describe the job to applicants, to guide new
employees, and to evaluate employees.
Job Specifications
States minimum acceptable qualifications.
Used to select employees who have the essential
qualifications.

job rotation
Job rotation is the systematic movement of employees from one job to another within the
organization to achieve various human resources objectives such as orienting new
employees, training employees, enhancing career development, and preventing job
boredom or burnout.

Employee Training
Training definition
Training means the process of increasing the knowledge and skills of an employee
for doing a particular job. It seeks to improve the job performance and work
behaviour of those trained..
Types of Training
• Technical or Technology Training. Depending on the type of job, technical training will
be required. ...
• Quality Training. ...
• Skills Training. ...
• Soft Skills Training. ...
• Professional Training and Legal Training. ...
• Team Training. ...
• Managerial Training. ...
• Safety Training.

What is the best training method?
Classroom-style training is the most traditional
and popular training method for employees. This
method mimics other classrooms in that an
instructor prepares and leads the experience,
usually using a lecture-style presentation with a
visual component.

Employee development methods
Committee assignments provide opportunities for:
decision-making
learning by watching others
becoming more familiar with organizational members and problems
Lecture courses and seminars benefit from today’s technology and are often
offered in a distance learning format.
Simulations include case studies, decision games and role plays and are
intended to improve decision-making.
Outdoor training typically involves challenges which teach trainees the
importance of teamwork

Employee Counseling
This approach is most appropriate when a
performance problem is not amenable to training
and development or mentoring and coaching.
• Listen to the employee to uncover the reason
for poor performance.
• Focus on performance-related behaviors
• Get the employee to accept the problem, and
work to find solutions.
• Managers are not expected to solve
employee’s personal problems
• Employee Assistance Program

Workforce Diversity
Diversity is the existence of many unique
individuals in the workplace, marketplace and
community. This includes men and women from
different nations, cultures, ethnic groups,
generations, backgrounds, skills, abilities and all
the other unique differences that make each of us
who we are.
The Workforce Today
minorities and women have become the fastest growing segments
the numbers of immigrant(migrators) workers and older workers are
increasing

How Diversity Affects HRM
Need to attract and maintain a diversified work force that
is reflective of the diversity in the general population.
Need to foster(further) increased sensitivity to group
differences.
Must deal with the different
Values
Needs
Interests
Expectations of employees

What Is PEST Analysis?
PEST Analysis (political, economic, social and
technological) is a management method whereby
an organization can assess major external factors
that influence its operation in order to become
more competitive in the market. As described by
the acronym, those four areas are central to this
model.

The PEST analysis was invented 1967
by Francis Aguilar, who was an American
scholar whose expertise was in strategic planning.
In the late 1960s, Aguilar published a book titled
Scanning the Business Environment in which the
now known PEST tool was first identified.

SWOT Analysis
Strengths
Strengths describe what an organization excels at and
what separates it from the competition: a strong brand, loyal
customer base, a strong balance sheet, unique technology,
and so on.
Weaknesses
Weaknesses stop an organization from performing at its
optimum level. They are areas where the business needs to
improve to remain competitive: a weak brand, higher-than-
average turnover, high levels of debt, an inadequate supply
chain, or lack of capital.

Opportunities
Opportunities refer to favorable external factors
that could give an organization a competitive
advantage. For example, if a country cuts tariffs, a
car manufacturer can export its cars into a new
market, increasing sales and market share.
Threats
Threats refer to factors that have the potential to
harm an organization. For example, a drought is a
threat to a wheat-producing company, as it may
destroy or reduce the crop yield. Other common
threats include things like rising costs for
materials, increasing competition, tight labor
supply. and so on.

Work Attitude and Behavior
Attitudes are a way of thinking, and they shape how we relate to
the world, both at work and outside of work. An attitude denotes
our opinions, beliefs, and feelings about various aspects of our
environment. The two job attitudes that have the greatest potential
to influence how an individual behaves at work are – Job
Satisfaction and Organizational Commitment.
Job Satisfaction
The feelings people have toward their job. It is probably the most
important job attitude and denotes how satisfied an employee is at
his work. A person with high job satisfaction appears to hold
generally positive attitude, and one who is dissatisfied holds
negative attitude towards their job.

Organizational Commitment
Organizational commitment is the emotional or psychological
attachment people have toward the company they work for. A
highly committed employee identifies completely with the
organizations’ objectives and is willing to put in whatever effort it
takes to meet them. Such an employee will be willing to remain
with the organization and grow with it.

Leadership
Leadership can be stated as the ability to influence
others. We may also define leadership as the
process of directing and influencing employees so
that they will strive willingly and enthusiastically
towards the achievement of group objectives. .
Types of Leadership
1-Transformational leadership
Transformational leadership is a leadership style that
can inspire positive changes in those who follow.
Transformational leaders are generally energetic,
enthusiastic, and passionate. Not only are these
leaders concerned and involved in the process, but
they are also focused on helping every member of
the group succeed.

2-Transactional leadership
Transactional leadership focuses on results, conforms to the
existing structure of an organization and measures success
according to that organization's system of rewards and
penalties. Transactional leaders have formal authority and
positions of responsibility in an organization
3-Despotic leadership
Despotic leadership refers to aggressive behavior toward
subordinates and to the exploitation that creates fear and
stress among subordinates.
Actually this leadership style is negative face of leader