Human Resource

Management
MODULE I: Fundamentals of HRM

Introduction
Concept
Nature
Scope
Functions HRM
Importance of HRM
Role & Responsibilities of HR Manager
Essentials of Sound HR Policies

Concept:-
HRM is a management function that helps managers recruit, select,
train and develop for an organization. It is also a management function
concerned with hiring, motivating and maintaining people in an
organization. It focuses on people in organizations. HRM views people
as an important source or asset to be used for the benefit of
organizations, employees and the society.
HRM is primarily a philosophy, an attitude and approach, a policy and
a practice.
HRM represents the humanization of management .
HRM is the concern of all managers from top to bottom.
It is proactive rather than reactive looking forward to what needs to
be done and then doing it rather than waiting to be told to do it.
People are the life blood of any organization and regarded as a
valuable source, implying that there is a need to invest time & effort in
their development.
Human resources have their special characteristics and cannot be
treated like other resources.
Human resources do not focus on employees as individuals but also
on other social realities.
HRM is considered with the human element.
It is an integral part of the management.
It has a wide range of activities.
It is concerned with the motivation of human
resources.
It is concerned with the development of
human resources.
It is a continuous function.
It is a multidisciplinary approach.


HRM makes efforts primarily to satisfy the needs of
the people at work for the achievement of
organizational objectives.
HRM concentrates more on motivation, morale-
boosting and job satisfaction.
HRM intervention is more concerned with working
with people , team building and team work.
Human Resource Development is at the center of
HRM.
Employees began to be considered as valuable
assets of the organization.
All major activities in the working life of a worker-
from the time of his or her entry into an
organization until he or she leaves come under the
purview of HRM.
Specifically, the activities included are HR planning,
job analysis and design, recruitment and selection,
orientation and placement, training and
development, performance appraisal and job
evaluation, employee and executive remuneration,
motivation and communication, welfare, safety and
health, industrial relations etc.



ASTD identified nine broad areas of activities of
HRM.

Human Resource Planning
Design of organisation and job
Selection and Staffing
Training and development
Organisational development
Compensation and benefits
Employee assistance
Union-labour relations
Personnel research & information system.


Managerial Functions
1. Planning
2. Organising
3. Directing or leading
4. Controlling
Operative Functions
1. Staffing & Employment
2. Training & development
3. Compensation
4. Integration
5. Working Environment
6. Welfare Activities
7. Human Relations
8. Records & Statistics
9. Separation




Importance for the organization

HRM is concerned with managing human aspect of the
organization in such a way that organizational objectives
are achieved along with employee development &
satisfaction. The main contribution of HRM to
organizational objectives are as follows:-

Good human resources practice helps in attracting &
retaining the best people.
Appropriate recruitment and selection activities identify
the best people and make sure they are placed in suitable
positions.
Training helps develop individuals who need skills,
knowledge and attitudes different from what they possess.


Good human resources can help to motivate
individuals to perform better.
HRM helps establishes mechanism for the
administration of welfare services like
medical, housing , etc for the workers.
It leads to healthy employer-employee
relations and thus promotes harmony in the
organization.
It can help to prepare people to adapt
technological changes.
It provides sound personnel policies for
socio-psychological satisfaction of people at
work.
It maintains balance between jobs available
and the jobseekers in terms of numbers,
qualifications, needs & aptitudes.
It eliminates waste of human resources
through conservation of physical and mental
health of the people.
It provides status to the employees in the
society.


Effective management can play a vital role in
the growth, development and self-sufficiency
of a nation. Proper management of people
results in their development which in turn
speeds up the process of economic growth
leading to higher standards of living and
employment opportunities.

The Human resource manager is a multifaceted
personality in an organization.
Headship or Figurehead role.
Advisory Role.
Counsellor and Mediator.
Compliance Role.
Initiator Role- welfare, personnel & IR aspect
Linking Pin and Human Relations Role
Researchers Role
Change Agent Role.
A policy is a plan of action.
It is a predetermined decision to serve as a guide
towards certain accepted objectives.
It is a statement of intention committing the
management to a general course of action.
Organizations need to evolve HR policies as they
ensure consistency and uniformity in treating
people.
They help motivate and build loyalty.
Policies become bench marks to compare and
evaluate performance.
A policy should be stated in terms broad enough
for it to be applicable in varying situations.
Essentials of sound HR policies
A Policy must be preceded by a brief description
of the situation that has led to formulation of
policy.
Policies must be stable.
Policies should be general, broad, flexible and
not rigid.
A policy must be put in writing.
A policy must reflect goals and values of the
organization.
Policies should be able to create a climate of
security and remove uncertainty.
Policies must be uniform and consistent.

A policy is an expression of intentions of top management. It
presents the principle which will guide the organizational
actions.
A policy is based on objectives of the enterprise.
A policy is long lasting. It is sufficiently comprehensive and is
so formulated that it covers all the conditions reasonably
anticipatable.
A policy is realistic. It can be translated into action in every
department of the enterprise. It is definite, positive and clear.
A policy is developed with the active participation of the
people who are going to use it.
A policy is consistent with the objectives and plans of the
enterprise. It is also in harmony with the policies of the
government and institutions like Trade Associations and
Chambers of Commerce.
A few specific personnel policies are :
a) Policy of hiring people with due respect to factors like
reservation, gender, marital status, etc.
b) Policy on terms and conditions of employment
compensation policy & methods, hours of work,
overtime, promotion, transfer, lay-off and the like.
c) Policy with regard to medical assistance sickness
benefits, ESI, and company medical benefits.
d) Policy regarding to housing, transport, uniform and
allowances.
e) Policy regarding training & development need for,
methods of, and frequency of training & development.
f) Policy regarding industrial relations trade union
recognition, collective bargaining, grievance
procedure, participative management and
communication with workers.