Human resource Management Concepts

Human Resource Management is the process of recruiting, selecting, inducting employees, providing

orientation, imparting training and development, appraising the performance of employees,
deciding compensation and providing benefits, motivating employees, maintaining proper relations with employees
and their trade unions, ensuring employees safety, welfare and healthy measures in compliance with labour laws of the
land and finally following the Orders / Judgements of the concern High Court and Supreme Court, if any.

Human Resource Management deals with the management functions like planning, organizing, directing and
controlling
 It deals with procurement of human resource , training & development and maintenance of
human resource.
 It helps to achieve individual, organizational and social objectives

Human Resource Management is a multidisciplinary subject.

 It includes the study of management, psychology, communication, economics and sociology.
 It also deals with building team spirit and team work.
 It is a continuous process.

Human resource management as a department in an organisation handles all aspects of employees and has various
functions like human resource planning, Conducting Job analysis, recruitment and conducting job
interviews, selection of human resources, Orienting, training, compensating, Providing benefits and incentives,
appraising, retaining, Career planning, Quality of Work Life, Employee Discipline, black out Sexual
Harassments, human resource auditing, maintenance of industrial relationship, looking after welfare of employees and
safety issues , communicating with all employees at all levels and maintaining awareness of and compliance with
local, state and federal labor laws.

What is the importance of Human resource?

Behind production of every product or service there is an human mind, effort and man hours (working hours). No
product or service can be produced without help of human being. Human being is fundamental resource for making or
construction of anything. Every organisation desire is to have skilled and competent people to make their organisation
competent and best.

Among the five Ms of Management, i.e., men, money, machines, materials, and methods, HRM deals about the first
M, which is men. It is believed that in the five Ms, "men" is not so easy to manage. "every man is different from
other" and they are totally different from the other Ms in the sense that men possess the power to manipulate the other
Ms. Whereas, the other Ms are either lifeless or abstract and as such, do not have the power to think and decide what
is good for them.
Why do we call it as Human Resource Management?
Human: refers to the skilled workforce in an organization.

Resource: refers to limited availability or scarce.

Management: refers how to optimize and make best use of such limited or scarce resource so as to meet the
organization goals and objectives.

Therefore, human resource management is meant for proper utilisation of available skilled workforce and also to make
efficient use of existing human resource in the organisation. The best example in present situation is, construction
industry has been facing serious shortage of skilled workforce. It is expected to triple in the next decade from the
present 30 per cent, will negatively impact the overall productivity of the sector, warn industry experts.

Human Resource Management Definitions

Many great scholars had defined human resource management in different ways and with different words, but the core
meaning of the human resource management deals with how to manage people or employees in the organisation.

Edwin Flippo

Human Resource Management 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”.
Nature of HRM
1. HRM involves management functions like planning, organizing, directing and controlling.
2. It involves procurement, development, maintenance and management of human resource.
3. It helps to achieve individual, organizational and social objectives.
4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics
and sociology.
5. It involves team spirit and team work.

Scope of HRM
1. Human resources planning: – Human resource planning is a process by which the company to identify the
number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or
shortage.
2. Job analysis design: – Another important area of HRM is job analysis. Job analysis gives a detailed explanation
about each and every job in the company. Based on this job analysis the company prepares advertisements.
3. Recruitment and selection: – Based on information collected from job analysis the company prepares
advertisements and publishes them in the news papers. A number of applications are received after the
advertisement is published, interviews are conducted and the right employee is selected thus recruitment and
selection are yet another important areas of HRM.
4. Orientation and induction: – Once the employees have been selected an induction or orientation program is
conducted. The employees are informed about the background of the company. They are told about the
organizational culture and values and work ethics and introduce to the other employees.
5. Training and development: – Every employee goes under training program which helps him to put up a better
performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is
called refresher training. Training and development is one area were the company spends a huge amount.
6. Performance appraisal: – Once the employee has put in around 1 year of service, performance appraisal is
conducted i.e. the HR department checks the performance of the employee. Based on these appraisal future
promotions, incentives, increments in salary are decided.
7. Compensation planning and remuneration: – There are various rules regarding compensation and other benefits.
It is the job of the HR department to look into remuneration and compensation planning.
8. Motivation, welfare, health and safety: – Motivation becomes important to sustain the number of employees in
the company. It is the job of the HR department to look into the different methods of motivation. Apart from this
certain health and safety regulations have to be followed for the benefits of the employees.
9. Industrial relations: – Another important area of HRM is maintaining co-ordinal relations with the union
members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.
 Functions of human resource management
The Managerial Functions of Human Resource Management are as follows:

1. Human Resource Planning - In this function of HRM, the number and type of employees needed to accomplish
organizational goals are determined. Research is an important part of this function, information is collected and
analyzed to identify current and future human resource needs and to forecast changing values, attitudes, and behavior
of employees and their impact on the organization.
2. Organizing - In organization tasks are allocated among its members, relationships are identified, and activities are
integrated towards a common objective. Relationships are established among the employees so that they can
collectively contribute to the attainment of the organization's goal.

3. Directing - Activating employees at different levels and making them contribute maximum to the organization is
possible through proper direction and motivation. Taping the maximum potentialities of the employees is possible
through motivation and command.

4.  Controlling - After planning, organizing, and directing, employees' actual performance is checked, verified, and
compared with the plans. If the actual performance is found deviated from the plan, control measures are required to
be taken. 

The Operative Functions of Human Resource

Management are as follows:
1. Recruitment and Selection - Recruitment of candidates is the function preceding the selection, which brings the
pool of prospective candidates for the organization so that the management can select the right candidate from this
pool.

2. Job Analysis and Design - Job analysis is the process of describing the nature of a job and specifying the human
requirements like qualification, skills, and work experience to perform that job. Job design aims at outlining and
organizing tasks, duties, and responsibilities into a single unit of work for the achievement of certain objectives.

3. Performance Appraisal - Human resource professionals are required to perform this function to ensure that the
performance of employees is at an acceptable level.

4. Training and Development - This function of human resource management helps employees acquire skills and
knowledge to perform their jobs effectively. Training and development programs are organized for both new and
existing employees. Employees are prepared for higher-level responsibilities through training and development.

5. Wage and Salary Administration - Human resource management determines what is to be paid for different types
of jobs. Human resource management decides employee's compensation which includes -  wage administration,
salary administration, incentives, bonuses, fringe benefits, etc,.
6. Employee Welfare - This function refers to various services, benefits, and facilities that are provided to employees
for their well-being.

7. Maintenance - Human resource is considered an asset for the organization. Employee turnover is not considered
good for the organization. Human resource management always tries to keep their best performing employees with
the organization.

8. Labour Relations - This function refers to human resource management interaction with employees represented by a
trade union. Employees come together and form a union to obtain more voice in decisions affecting wage, benefits,
working conditions, etc,.
9. Personnel Research - Personnel research is done by human resource management to gather employees' opinions on
wages and salaries, promotions, working conditions, welfare activities, leadership, etc,. Such researches help in
understanding employee satisfaction, employee turnover, employee termination, etc,.

10. Personnel Record - This function involves recording, maintaining, and retrieving employee-related information
like - application forms, employment history, working hours, earnings, employee absents and presents, employee
turnover, and other data related to employees.

The Advisory Functions of Human Resource Management are as follows:

Human Resource Management is expert in managing human resources and so can give advice on matters
related to human resources of the organization. Human Resource Management can offer advice to:

1. Advised to Top Management

The personnel manager advises the top management in the formulation and evaluation of personnel programs,
policies, and procedures.

2. Advised to Departmental Heads

The personnel manager advises the heads of various departments on matters such as manpower planning, job analysis,
job design, recruitment, selection, placement, training, performance appraisal, etc.
Roles of various human resource managers

1. Human Resource Planning

2. Job Analysis and Design

3. Hiring Candidates

4. Training and Development

5. Design Workplace Policies

6. Monitor Performance

7. Maintaining Work Culture

8. Resolve Conflict

9. Ensure Health and Safety of Employee

10. Rewards and Incentives

Responsibilities of human resource manager

Supervisory Responsibilities:
 Recruits, interviews, hires, and trains new staff in the department.
 Oversees the daily workflow of the department.
 Provides constructive and timely performance evaluations.
 Handles discipline and termination of employees in accordance with company policy.

Duties/Responsibilities:
 Partners with the leadership team to understand and execute the organizations human resource and
talent strategy particularly as it relates to current and future talent needs, recruiting, retention, and
succession planning.
 Provides support and guidance to HR generalists, management, and other staff when complex,
specialized, and sensitive questions and issues arise; may be required to administer and execute
routine tasks in delicate circumstances such as providing reasonable accommodations, investigating
allegations of wrongdoing, and terminations.
 Manages the talent acquisition process, which may include recruitment, interviewing, and hiring
of qualified job applicants, particularly for managerial, exempt, and professional roles; collaborates
with departmental managers to understand skills and competencies required for openings.
 Analyzes trends in compensation and benefits; researches and proposes competitive base and
incentive pay programs to ensure the organization attracts and retains top talent.
 Creates learning and development programs and initiatives that provide internal development
opportunities for employees.
 Oversees employee disciplinary meetings, terminations, and investigations.
 Maintains compliance with federal, state, and local employment laws and regulations, and
recommended best practices; reviews policies and practices to maintain compliance.
 Maintains knowledge of trends, best practices, regulatory changes, and new technologies in human
resources, talent management, and employment law.
 Performs other duties as assigned.