Human Resource Management, Unit 1- SY BBA (Sem 3), VNSGU-Surat
UNIT 1
HUMAN RESOURCE MANAGEMENT
TOPICS TO STUDY
1. Concept of Human Resource Management – Meaning and Definition
2. Functions of HRM
3. Roles of HRM
4. Skills and Competencies in HRM
5. HRD – Definition
6. HRD – Goals
7. HRD – Challenges
8. Changing Environment of HRM
9. HRM support for Improvement Programs -Work Life balance
10. HR role in strategy formulation & gaining competitive advantage
11. HRM issues in Indian Organisations
CONCEPT OF HRM – Definition & Meaning
According to Flippo,
“Human resource management is the planning, organising, directing and controlling of the
procurement, development, compensation, integration, maintenance and reproduction of human
resources so that individual / organisational objectives are accomplished”.
From the above definition, it can be said that HRM is about managing human resources in
the organisation.
HRM is necessary to achieve organisational and employee’s personal objectives
FUNCTIONS OF HRM
The HR department provides service to all other departments on HR related matters.
The functions of HR department can be listed as follows;
1. Managerial,
2. Operative and
3. Advisory functions.
1. MANAGERIAL FUNCTIONS:
The Human Resource Manager is a part of the organisational management. So he must perform
the basic managerial functions of planning, organising, directing and controlling in relation to his
1
department. These functions are briefly discussed below;
Page
Dr. Zakir A. Patel, Prof, Naran Lala College of Commerce and Management, Navsari
Mobile; 9586075954
, Human Resource Management, Unit 1- SY BBA (Sem 3), VNSGU-Surat
1. Planning:
To get things done through the subordinates, a manager must plan in advance.
Planning is necessary to determine the goals of the organisation and decide the policies and
procedures to reach the goals.
For a human resource manager, planning means the determination of HR programs like
anticipating vacancies, planning job requirements, job descriptions and determination of
the sources of recruitment etc.
The process of HR planning involves three steps - Firstly, a supply and demand forecast for
each job category is made. This step requires knowledge about labour market conditions
and goals of the organisation. Secondly, net shortage and surplus of HR by job category are
projected for a specific time period. Finally, plans are developed to remove the forecast
shortages and surplus of human resources.
2. Organizing:
Once the human resource manager has established objectives and developed plans and
programs, he must design organisation structure to carry out the various operations. The
organisation structure includes the following:
a. Grouping of HR activity into functions;
b. Assignment of different functions to different individuals;
c. Delegation of authority according to the tasks assigned and responsibilities involved;
d. Co-ordination of activities of different individuals.
3. Directing:
The direction function of the HR manager involves encouraging people to work willingly and
effectively for the goals of the enterprise.
In other words, the direction function is meant to guide and motivate the people to achieve
the HR programs. The HR manager can motivate the employees in an organisation through
career planning, salary administration, employee morale, developing favourable
relationships and provision of safety requirements and welfare of employees.
The motivational function poses a great challenge for any manager. Motivation is a
continuous process as new needs and expectations emerge among employees when old
ones are satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities as per the plans which have been
formulated on the basis of the objectives of the organisation.
It involves the observation and comparison of results with the standards and correction of
deviations that may occur.
Controlling helps the HR manager to evaluate and control the performance of the HR
department in terms of various operative functions.
It involves performance appraisal, critical examination of personnel records and statistics
and personnel audit.
2. OPERATIVE FUNCTIONS:
The operative functions are duties which are specifically meant for the human resource
department. The operative functions of human resource or personnel department are discussed
below:
2
Page
Dr. Zakir A. Patel, Prof, Naran Lala College of Commerce and Management, Navsari
Mobile; 9586075954
, Human Resource Management, Unit 1- SY BBA (Sem 3), VNSGU-Surat
1. Employment:
The first operative function of the human resource department is the employment of
proper kind and number of persons necessary to achieve the objectives of the organisation.
This involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower
requirements in terms of number and quality of the personnel.
Recruitment and selection cover the sources of supply of labour and it selects the right type
of people for various jobs. Induction and placement of HR for their better performance also
come under the employment function.
2. Development:
It is a duty of management to train each employee property to develop technical skills for
the job for which he has been employed and also to develop him for the higher jobs in the
organisation.
Proper development of personnel is necessary to increase their skills in doing their jobs and
in satisfying their growth need.
For this purpose, the personnel departments will device appropriate training programs.
There are several on- the-job and off-the-job methods available for training purposes.
3. Compensation:
This function is concerned with the determination of proper remuneration of the
employees in the organisation of their contribution to the organisational goals.
The personnel can be compensated both in terms of monetary as well as non-monetary
rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are their
basic needs, requirements of jobs, legal provisions regarding minimum wages, capacity of
the organisation to pay, wage level afforded by competitors etc.
4. Maintenance (Working Conditions and Welfare):
Only appointment and training of people is not sufficient; they must be provided with good
working conditions so that they may like their work and workplace and maintain their
efficiency.
Working conditions definitely influence the motivation and morale of the employees.
Working condition include steps taken for health, safety, and comfort of the workforce. The
HR department also provides for various welfare services like cafeteria, rest rooms,
counselling, group insurance, education for children of employees, recreational facilities,
etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the cases,
it is found that they do not contribute towards the organisational goals as much as they
can. This happens because employees are not motivated.
The human resource manager helps the various departmental managers to design a system
of financial and non-financial rewards to motivate the employees.
6. Personnel Records:
The human resource department maintains the records of the employees working in the
3
company.
Page
It keeps full records of their training, achievements, transfer, promotion, etc.
Dr. Zakir A. Patel, Prof, Naran Lala College of Commerce and Management, Navsari
Mobile; 9586075954
UNIT 1
HUMAN RESOURCE MANAGEMENT
TOPICS TO STUDY
1. Concept of Human Resource Management – Meaning and Definition
2. Functions of HRM
3. Roles of HRM
4. Skills and Competencies in HRM
5. HRD – Definition
6. HRD – Goals
7. HRD – Challenges
8. Changing Environment of HRM
9. HRM support for Improvement Programs -Work Life balance
10. HR role in strategy formulation & gaining competitive advantage
11. HRM issues in Indian Organisations
CONCEPT OF HRM – Definition & Meaning
According to Flippo,
“Human resource management is the planning, organising, directing and controlling of the
procurement, development, compensation, integration, maintenance and reproduction of human
resources so that individual / organisational objectives are accomplished”.
From the above definition, it can be said that HRM is about managing human resources in
the organisation.
HRM is necessary to achieve organisational and employee’s personal objectives
FUNCTIONS OF HRM
The HR department provides service to all other departments on HR related matters.
The functions of HR department can be listed as follows;
1. Managerial,
2. Operative and
3. Advisory functions.
1. MANAGERIAL FUNCTIONS:
The Human Resource Manager is a part of the organisational management. So he must perform
the basic managerial functions of planning, organising, directing and controlling in relation to his
1
department. These functions are briefly discussed below;
Page
Dr. Zakir A. Patel, Prof, Naran Lala College of Commerce and Management, Navsari
Mobile; 9586075954
, Human Resource Management, Unit 1- SY BBA (Sem 3), VNSGU-Surat
1. Planning:
To get things done through the subordinates, a manager must plan in advance.
Planning is necessary to determine the goals of the organisation and decide the policies and
procedures to reach the goals.
For a human resource manager, planning means the determination of HR programs like
anticipating vacancies, planning job requirements, job descriptions and determination of
the sources of recruitment etc.
The process of HR planning involves three steps - Firstly, a supply and demand forecast for
each job category is made. This step requires knowledge about labour market conditions
and goals of the organisation. Secondly, net shortage and surplus of HR by job category are
projected for a specific time period. Finally, plans are developed to remove the forecast
shortages and surplus of human resources.
2. Organizing:
Once the human resource manager has established objectives and developed plans and
programs, he must design organisation structure to carry out the various operations. The
organisation structure includes the following:
a. Grouping of HR activity into functions;
b. Assignment of different functions to different individuals;
c. Delegation of authority according to the tasks assigned and responsibilities involved;
d. Co-ordination of activities of different individuals.
3. Directing:
The direction function of the HR manager involves encouraging people to work willingly and
effectively for the goals of the enterprise.
In other words, the direction function is meant to guide and motivate the people to achieve
the HR programs. The HR manager can motivate the employees in an organisation through
career planning, salary administration, employee morale, developing favourable
relationships and provision of safety requirements and welfare of employees.
The motivational function poses a great challenge for any manager. Motivation is a
continuous process as new needs and expectations emerge among employees when old
ones are satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities as per the plans which have been
formulated on the basis of the objectives of the organisation.
It involves the observation and comparison of results with the standards and correction of
deviations that may occur.
Controlling helps the HR manager to evaluate and control the performance of the HR
department in terms of various operative functions.
It involves performance appraisal, critical examination of personnel records and statistics
and personnel audit.
2. OPERATIVE FUNCTIONS:
The operative functions are duties which are specifically meant for the human resource
department. The operative functions of human resource or personnel department are discussed
below:
2
Page
Dr. Zakir A. Patel, Prof, Naran Lala College of Commerce and Management, Navsari
Mobile; 9586075954
, Human Resource Management, Unit 1- SY BBA (Sem 3), VNSGU-Surat
1. Employment:
The first operative function of the human resource department is the employment of
proper kind and number of persons necessary to achieve the objectives of the organisation.
This involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower
requirements in terms of number and quality of the personnel.
Recruitment and selection cover the sources of supply of labour and it selects the right type
of people for various jobs. Induction and placement of HR for their better performance also
come under the employment function.
2. Development:
It is a duty of management to train each employee property to develop technical skills for
the job for which he has been employed and also to develop him for the higher jobs in the
organisation.
Proper development of personnel is necessary to increase their skills in doing their jobs and
in satisfying their growth need.
For this purpose, the personnel departments will device appropriate training programs.
There are several on- the-job and off-the-job methods available for training purposes.
3. Compensation:
This function is concerned with the determination of proper remuneration of the
employees in the organisation of their contribution to the organisational goals.
The personnel can be compensated both in terms of monetary as well as non-monetary
rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are their
basic needs, requirements of jobs, legal provisions regarding minimum wages, capacity of
the organisation to pay, wage level afforded by competitors etc.
4. Maintenance (Working Conditions and Welfare):
Only appointment and training of people is not sufficient; they must be provided with good
working conditions so that they may like their work and workplace and maintain their
efficiency.
Working conditions definitely influence the motivation and morale of the employees.
Working condition include steps taken for health, safety, and comfort of the workforce. The
HR department also provides for various welfare services like cafeteria, rest rooms,
counselling, group insurance, education for children of employees, recreational facilities,
etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the cases,
it is found that they do not contribute towards the organisational goals as much as they
can. This happens because employees are not motivated.
The human resource manager helps the various departmental managers to design a system
of financial and non-financial rewards to motivate the employees.
6. Personnel Records:
The human resource department maintains the records of the employees working in the
3
company.
Page
It keeps full records of their training, achievements, transfer, promotion, etc.
Dr. Zakir A. Patel, Prof, Naran Lala College of Commerce and Management, Navsari
Mobile; 9586075954
