Submitted by:

Mrs. Binoo Gupta

Associate Professor

P.G. Deptt. Of Commerce & Management

Hans Raj Mahila Maha Vidyalaya,Jalandhar

PART 2

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Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them

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HRM is the art of Procuring, developing and maintaining competent workforce to achieve organisational goals effectively.

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The process of employing people, developing their resources, utilizing, maintaining & compensating their service in tune with the job & organisational requirements with a view to contribute to the goals of the organisation, individual & the society.

Meaning of HRM – quick revision

• The functions performed by the resource management can broadly be classified into two categories, viz.

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• Managerial functions
• Operative functions , and
• Advisory functions

Functions of HRM

Managerial Functions:

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• Planning:
• Planning is a predetermined course of actions. It is a process of determining the organisational goals and formulation of policies and programmes for achieving them. Thus planning is future oriented concerned with clearly charting out the desired direction of business activities in future. Forecasting is one of the important elements in the planning process. Other functions of managers depend on planning function.

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• Organising:

Organising is a process by which the structure and allocation of jobs are determined. Thus organising involves giving each subordinate a specific task establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates, and so on.

• 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.

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• 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. 

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Operative Functions

•  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.

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• 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.

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

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•  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,.

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

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• 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.

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•  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,.

• 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,.
• �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.

Advisory Functions

As Advisor to Top Management

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

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As Advisor 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.

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Correlating objectives and functions