HUMAN RESOURCE MANAGEMENT

Introduction: Human Resource Management is a process of bringing people and organization together
so that the goals of each are met. It is the part of the management process which is concerned with the
management of human resources in an organization. It tries to secure best from the people by winning
their whole hearted co-operation. In short, it may be defines as the art of procurement, developing and
maintaining competent workforce to achieve the goals of an organization in an effective and efficient
manner.

Henry Fayol the pioneer in the field of management state “Take out my building take out my machines
and all capital but leave my men with me, I will become Henry Fayol again”. He highlighted that human
resources in an organization play a crucial role. The human resource refers to the knowledge, skills,
abilities, values, aptitude and beliefs possessed by the workforce in organization.

DEFINITION

Human Resource Management is the process of recruitment, selection of employee, providing proper
orientation and induction, providing proper training and the developing skills, assessment of employee
(performance of appraisal), providing proper compensation and benefits, motivating, maintaining
proper relations with labor and with trade unions, maintaining employee’s safety, welfare and health by
complying with labor laws of concern state or country.

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

According to Byars and Rue , “HRM encompasses those activities that are designed to provide for
coordinate the human resources of organizational”.

According to Invancevich and Glueck, “HRM is concerned with the most effective use of people to
achieve organizational and individual goals”.

According to Edwin Flippo , HRM 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”.
CONCEPTS OF HRM

Many people find HRM to be an unclear and strange concept. ‘This is not simply because of having
variety of meanings to this term. This confusion is mainly due to the different interpretations found in
articles and books about human resource management. HRM is the philosophy of people management
based on the belief that human resources are extremely important for sustained business success. An
organization acquires competitive advantage by using its people effectively and utilizing their expertise
to meet clearly defined objectives. HRM is aimed at recruiting capable, flexible and committed people.
Managing and rewarding their performance and developing key competencies.

OBJECTIVES OF HRM

The primary objective of HRM is to ensure the availability of competent and willing workforce to an
organization. The specific objectives include the following:

a. Human capital: assisting the organization in obtaining the right number and types of employees to
fulfill its strategic and operational goals.

b. To develop organizational climate: Helping to create a climate in which employees are encouraged to
develop and utilize their skills to the fullest and to employ the skills and abilities of the workforce
efficiently.

c. Helping to maintain performance standards and increase productivity through effective job design;
providing adequate orientation, training and development, providing performance-related feedback;
and ensuring effective two-way communication.

d. To Promote Harmony: Helping to establish and maintain a harmonious relationship between

employer/employee.

e. Helping to create and maintain a safe and healthy work environment.

f. Developing programs to meet the economic, psychological, and social needs of the employees and
helping the organization to retain the productive employees.

g. Ensuring that the organization is in compliance with provincial/territorial and federal laws affecting
the workplace (such as human rights, employment equity, occupational health and safety, employment
standards, and labour relations legislation) to help the organization to reach its goals.

h. To provide organization with well-trained and well-motivated employees.

i. To increase the employee’s satisfaction and self-actualization.

j. To develop and maintain the quality of work life.

k. To communicate HR policies to all employees.

l. To help maintain ethical polices and behaviour.

CHARACTERISTICS OF HRM

a. Pervasive Function: HRM is present in all the enterprises.

b. Action-Oriented: Scope of HRM is not only limited to record keeping.

c. People-Oriented: HRM is all about people at work, both as individuals and groups

d. Development-Oriented: HRM intends to develop the full potential of employees.

e. Integrated Function: Build relations between people working at various levels in the organization.

f. Comprehensive Function: It covers all the type of personnel.

g. Auxiliary service: It is a staff function (Advice).

h. Inter-Disciplinary Function: Utilizing knowledge and inputs drawn from psychology, economics etc.

i. Continuous Function: HRM is not a one shot deal.

j. Involves team sprit & team work.

k. Management function.

l. Helps in achieving goals i.e. individual, organizational & social objectives.

m. Involves procurement, development & maintenance of human resource.

FUNCTIONS OF HRM

Human Resource Management is a management function concerned with hiring, motivating, and
maintaining workforce in an organisation. Human resource management deals with issues related to
employees such as hiring, training, development, compensation, motivation, communication, and
administration. Human resource management ensures satisfaction of employees and maximum
contribution of employees to the achievement of organisational objectives.

According to Armstrong (1997), Human Resource Management can be defined as “a strategic approach
to acquiring, developing, managing, motivating and gaining the commitment of the organization’s key
resource – the people who work in and for it.”

Human Resource Management functions can be classified in following three categories.

1. Managerial Functions

2. Operative Functions

3. Advisory Functions

1. Managerial Functions: 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 organisational goals is determined. Research is an important part of this function,
information is collected and analysed to identify current and future human resource needs and to
forecast changing values, attitude, and behaviour of employees and their impact on organisation.

2. Organising In an organisation 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 organisation goal.

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

4.Controlling After planning, organising, and directing, the actual performance of employees 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.

2. Operative Functions: The Operative Functions of Human Resource Management are as follows:
Recruitment and Selection Recruitment of candidates is the function preceding the selection, which
brings the pool of prospective candidates for the organisation so that the management can select the
right candidate from this pool.

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 organising tasks, duties, and responsibilities into a single unit of work for the
achievement of certain objectives.

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

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

Wage and Salary Administration Human resource management determines what is to be paid for
different type of jobs. Human resource management decides employees compensation which includes -
wage administration, salary administration, incentives, bonuses, fringe benefits, and etc.,

Employee Welfare This function refers to various services, benefits, and facilities that are provided to
employees for their well being.

Maintenance Human resource is considered as asset for the organisation. Employee turnover is not
considered good for the organisation. Human resource management always tries to keep their best
performing employees with the organisation.
Labour Relations This function refers to the interaction of human resource management with
employees who are represented by a trade union. Employees comes together and forms an union to
obtain more voice in decisions affecting wage, benefits, working condition, etc,.

Personnel Research Personnel researches are done by human resource management to gather
employees' opinions on wages and salaries, promotions, working conditions, welfare activities,
leadership, etc,. Such researches helps in understanding employees satisfaction, employees turnover,
employee termination, etc,.

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.

3. Advisory Functions: 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 organisation. Human Resource Management can offer advice to:

1. To Top Management: Personnel manager advises the top management in formulation and
evaluation of personnel programs, policies, and procedures.

2. To Departmental Heads: 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.

Role of Human Resources Manager:

The primary task of the HR manager is to ensure that the organization’s human resources are utilized
and managed as effectively as possible. Human resource administrators help design and implement
policies and programmes that enhance human abilities and improve the organization’s overall
effectiveness. Top executives have learned sometimes the hard way - that inattention to personnel
relations and neglect of HR programs are often the cause of poor labour management relations,
excessive absenteeism and turnover, lawsuits charging discrimination, and substandard productivity.
More and more leaders of public and private organization recognize that people are the organization’s
primary resource and acknowledge the HR manager’s role in developing the human resource.

Functions of a Human Resource Manager:

A human resource manager, charged with fulfilling the objectives of an organisation, should be a leader
with high intellectual powers, a visionary and a philosopher who provides the initiative to shape the
future in terms of leading the human beings in an organisation towards more prosperous and
progressive policies.

1.As an Intellectual: The basic skill in the human resource field as compared to technologists or
financial experts is the skill to communicate, articulate, understand and above all, to be an expert when
it comes to putting policies and agreements in black and white. The personnel man’s skill lies in his
command over the language. A personnel man has to deal with employees and he must possess the
skills of conducting fruitful and systematic discussions and of communicating effectively. He should also
be in a position to formulate principles and foresee the problems of the organisation. This means that he
would require the mental ability to deal with his people in an intelligent manner as well as to
understand what they are trying to say.

2.As an Educator: It is not enough that a human resource man has command-over the language, which,
however, remains his primary tool. He should be deeply interested in learning and also in achieving
growth. Basically, human beings like to grow and realise their full potential. In order to harmonies the
growth of individuals with that of the organisation, a personnel administrator must not only provide
opportunities for his employees to learn, get the required training and assimilate new ideas but also he
himself should be a teacher. A personnel man who simply pushes files and attends labour courts for
conciliation purposes and other rituals of legal procedure for the settlement of industrial disputes is not
a personnel administrator of the future.

3.As a Discriminator: A human resource administrator must have the capacity to discriminate between
right and wrong, between that which is just and unjust and merit and non-merit. In other words, he
should be a good judge when he sits on a selection board, a fair person when he advises on disciplinary
matters and a good observer of right conduct in an organisation.

4.As an Executive: The human resource man must execute the decisions of the management and its
policies with speed, accuracy and objectivity. He has to streamline the office, tone up the administration
and set standards of performance. He has to coordinate the control functions in relation to the various
other divisions and, in doing so he should be in a position to bring unity of purpose and direction in the
activities of the personnel department. He must ask relevant questions and not be merely involved in
the office routine whereby the status quo is maintained. He should have the inquisitiveness to find out
causes of delay, tardy work and wasteful practices, and should be keen to eliminate those activities from
the personnel functions which have either outlived their utility or are not consistent with the objectives
and purposes of the organisation.

5.As a Leader : Being basically concerned with people or groups of people, and being placed in the
group dynamics of various political and social functions of an organisation, a Human resource man must
not shirk the role of leadership in an organisation. He, by setting his own example and by working
towards the objectives of sound personnel management practices, must inspire his people and motivate
them towards better performance. He should resolve the conflicts of different groups and build up
teamwork in the organisation.

6.As a Humanist: Deep faith in human values and empathy with human problems, especially in less
developed countries, are the sine qua non for a Human resource man. He has to deal with people who
toil at various levels and partake of their joys and sorrows. He must perform his functions with
sensitivity and feeling.

7.As a Visionary: While every leading function of an organisation must evolve its vision of the future,
the primary responsibility for developing the social organisation towards purposive and progressive
action falls on the personnel man. He should be a thinker who sets the pace for policy- making in an
organisation in the area of human relations and should gradually work out new patterns of human
relations management consistent with the needs of the organisation and the society. He must ponder
on the social obligations of the enterprise, especially if it is in the public sector, where one has to work
within the framework of social accountability. He should be in close touch with socio-economic changes
in the country. He should be able to reasonably forecast future events and should constantly strive to
meet the coming challenges.

RECRUITMENT

Recruitment means search of the prospective employee to suit the job requirements as represented by
job specification. It is the process of attracting people to apply for jobs in an organisation. According to
Edwin B. Flippo, “Recruitment is the process of searching for prospective employees and stimulating
them to apply for jobs in the organisation.”

Factors affecting Recruitment:

The factors affecting recruitment can be classified as Internal and External factors. The internal factors
are:

1. Wage and salary policies

2. The age composition of existing working force

3. Promotion and retirement policies

4. Turnover rates

5. The nature of operations involved the kind of personnel required.

6. The level and seasonality of operations in question

7. Future expansion and reduction programmes

8. Recruiting policy of the organization

9. Human resource planning strategy of the company

10. Size of the organisation and the number of employees employed.

11. Cost involved in recruiting employees, and finally.

12. Growth and expansion plans of the organisation

The external factors are:

1. Supply and demand of specific skills in the labour market;

2. Company’s image perception of the job seekers about the company

3. External cultural factors: Obviously, the culture may exert considerable check on recruitment. For
example, women may not be recruited in certain jobs in industry.

4. Economic factors: such as a tight or loose labour market, the reputation of the enterprise in the
community as a good pay master or otherwise and such allied issues which determine the quality and
quantity of manpower submitting itself for recruitment.

5. Political and legal factors also exert restraints in respect of nature and hours of work for women and
children, and allied employment practices in the enterprise, reservation of Job for SC, ST and so on.

Sources of Recruitment:

The various sources of recruitment are generally classified as Internal source and External source.

1.Internal Sources: This refers to the recruitment from within the company. The various internal
sources are promotion, transfer, past employees and internal advertisements.

2.External Sources: External sources refer to the practice of getting suitable persons from outside. The
various external sources are advertisement, employment exchange, past employees, private placement
agencies and consultants, walks-ins, campus recruitment, trade unions, etc.

The following external sources of recruitment are commonly used by the big enterprises:

1.Direct Recruitment: An important source of recruitment is direct recruitment by placing a notice on

the notice board of the enterprise specifying the details of the jobs available. It is also known as
recruitment at factory gate.

2.Casual Callers or Unsolicited Applications: The organisations which are regarded as good employers
draw a steady stream of unsolicited applications in their offices. This serves as a valuable source of
manpower.

3.Media Advertisement: Advertisement in newspapers or trade and professional journals is generally

used when qualified and experienced personnel are not available from other sources.

4.Employment Agencies: Employment exchanges run by the Government are regarded as a good
source of recruitment for unskilled, semi-skilled and skilled operative jobs. In some cases, compulsory
notification of vacancies to the employment exchange is required by law.
 5.Management Consultants: Management consultancy firms help the organisations to recruit
technical, professional and managerial personnel they specialise middle level and top level executive
placements.

6.Educational Institutions or Campus Recruitment: Big organisations maintain a close liaison with the
universities, vocational institutes and management institutes for recruitment to various jobs.
Recruitment from educational institutional is a well - established practice of thousand of business and
other organisations.

7.Recommendation: Applicants introduced by friends and relatives may prove to be a good source of
recruitment.

8.Labour Contractors: Workers are recruited through labour contractors who are themselves
employees of the organisation. Recruitment through labour contractors has been banned for the public
sector units.

9.Telecasting: The practice of telecasting of vacant posts over T.V. is gaining importance these days.
Special programmes like ‘Job Watch', ‘Youth Pulse’, ‘ Employment News’, etc. over the T.V have become
quite popular in recruitment for various types of jobs.

10.Raiding: Raiding is a technical term used when employees working elsewhere are attracted to join
organisations. The organisations are always on the lookout for qualified professionals, and are willing to
offer them a better deal if they make the switch.

Merits of External Source of Recruitment: The merits of external sources of recruitment are as under:

1.Qualified Personnel: By using external sources of recruitment the management can make qualified
and trained people to apply for vacant Jobs in the organisation.

2.Wider choice: When vacancies are advertised widely a large number of applicants from outside the
organisation apply. The management has a wider choice while selecting the people for employment.

3.Fresh Talent: The insiders may have limited talents. External sources facilitate infusion of fresh blood
with new ideas into the enterprise. This will improve the overall working of the enterprise.

4.Competitive Spirit: If a company can tap external sources, the existing staff will have to compete with
the outsiders. They will work harder to show better performance.

Demerits of External Sources: The demerits of filling vacancies from external sources are as follows:

1.Dissatisfaction among Existing Staff: External recruitment may lead to dissatisfaction and frustration
among existing employees. They may feel that their chances of promotion are reduced.

2.Lengthy Process: Recruitment from outside takes a long time. The business has to notify the
vacancies and wait for applications to initiate the selection process.
3.Costly Process: It is very costly to recruit staff from external sources. A lot of money has to be spent
on advertisement and processing of applications.

4.Uncertain Response: The candidates from outside may not be suitable for the enterprise. There is no
guarantee that the enterprise will be able to attract right kinds of people from external sources.

What is Selection Process in HRM?

Selection is the second aspect of staffing. This is the method involved with picking the best out of all. A
progression of work tests and meetings are led to pick the individual who might be the most ideal fit to
get everything taken care of.

The selection process begins from the screening of utilizations and may proceed till the proposal of work
acknowledgment and joining of the competitor.

Meaning of Selectionapplican

Selection refers to the process by which qualified applicants are selected by means of various tests in
pre-determined numbers, out of a large number of applicants.

Recruitment is a positive process but Selection is a negative process because under it efforts are made
to reduce the no of applicant

Importance of Selection Process

Acquiring talent for the company is a continuous process, so the selection method is mandatory to find
them.

Good selection and placement of employees lead to the success and growth of the company.

The right candidate for the right job leads to a great sense of job satisfaction.

An increase in job satisfaction improves efficiency and quality of work in the organization

Features of Selection Process

 Selection is a negative approach.

 The appointment of the candidate is the key factor.
 It is preceded by the recruitment process.
 It is a time-consuming process.
 Selection is an expensive method.

Steps in Selection Process

✔ 1. Preliminary interview (Initial Screening) -The primary purpose of the preliminary interview is to
ensure whether the applicant is physically & mentally fit for the job.
In preliminary interviews, candidates are asked questions related to their prior experience, education,
taste, age, etc.

Those candidates who are successful in the preliminary interview are asked to fill out the blank
application form.

✔ 2. Receiving Applications (Filling out blank application form)

Blank application forms are the printed form of the company. For different job roles, there are different
forms because for each post, people of different qualifications are required.

The form should convey the maximum possible information.

The questions should be directly related to the post.

3.Selection Test (Employment Test)

“Selection tests are conducted to check the area knowledge of candidates for the respective jobs. These
tests enable the management to bring out the suitable and right person for the job” 4. Employment
Interview (Selection Interview)

An interview is the oral examination of candidates for a job or employment. To give remarks, the
interviewer matches the information obtained about the candidate from previous rounds and to the
information obtained through his own observations during the Interview.

Types of Interview:

Several types of interviews are commonly used depending on the nature and importance of the job
position to be filled within an organization.

◉ Structured Interview: In a structured interview, a list of questions asked by the interviewer is

prepared in advance on the basis of an analysis of the job.

◉ Unstructured Interview: In this type of interview, a list of questions asked by the interviewer is not
prepared in advance. All interview questions are asked as to what comes to the interviewer’s mind.

◉ Panel Interview: In the panel interview, the candidate is screened by a group of interviewers who are
specialists in their respective fields. Panel call upon the candidates one by one and assess their qualities.

◉ Stress Interview: In most Stress Interviews, the interviewer deliberately creates a situation that puts
the candidate under considerable stress. Frequent interruptions, criticism of a candidate’s opinion,
keeping silent for an extended period of time, tense questions are some of the methods of creating
stress
✔ 5. Medical Examination

Those Candidates/applicants who have crossed the previous stages are sent for a physical examination
or medical examination.

There are three objectives of medical examination:-

Physical fitness for the job concerned.

To protect the business organization from infectious diseases.

To check excessive expenditure on the treatment of employees

✔ 6. Reference Check

After medical examination, information is gathered from that person whose name is figured in the
column of “reference”.

This information is related to the character history, social relation, background, etc, of the candidate. To
obtain this information the employer may contact the candidate’s past or present employers.

✔ 7. Final Selection or appointment letter:-

If the candidate successfully cleared the medical examination or reference check, then the process of
final selection is started.

At this stage, every one of the individuals associated with the course of choice meets and takes official
choice in regards to the choice of up-and-comers.