HUMAN RESOURCE MANAGEMENT

UNIT – I

Scope of HRM�

The scope of HRM is very wide. The Indian Institute of Personnel management has specified the scope of HRM thus:

1.Personnelaspect- This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

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2.Welfare aspect- It deals with working conditions and amenities such as canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

3.Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

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Characteristics of HRM

• Pervasive force:

HRM is pervasive in nature. It is present in all enterprises.

• Action oriented

Its focus attention on action rather than on record keeping, written procedures or rules.

• Individually oriented.

It tries to help employees develop their potential fully. It encourages them to give their best to the organization.

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• People oriented

It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results.

•  Future oriented

It helps an organization meet its goals in the future by providing for competent and well-motivated employees.

• Integrating mechanism

It tries to build and maintain cordial relations between people working at various levels in the organization.

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• Inter disciplinary function

It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc�

• Continuous function:

HRM is not a one shot deal. It cannot be practiced only one hour each day or one day a week. It requires constant awareness in every day operations.

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Importance of HRM

1.Importance concerned with individual organization :Human Resource Management can help an organization to achieve to its objective more efficiently and effectively in the following ways:

• Procurement of required talents through recruitment, selection, placement, inducting, training, compensation and promotion policies.
• Secures co-operation of all employee of the organization for achieving goals.
• Proper utilization of human resources for the success of the enterprise.
• Ensure a future team of efficient an competent workers required for the organization.

2. Professional Importance: Professional competency among employees can be achieved through the following ways.

• Human resource management provides maximum opportunities to employees for their personnel development.
• Providing healthy relationship among employees
• Proper allocation of work among employees.
• Providing training facilities for the individual development of employees.

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3.Social Importance: HRM is important in social perspective also. It includes the following aspects:

• Human resource management enhances the dignity of labour.
• Provides suitable job to suitable person and it will help to satisfy the psychological and social satisfaction of employees.
• Helps to provide reasonable compensation to workers, which leads them to have a good standard of living.
• Helps to maintain a balance between jobs and job seekers in terms of numbers, qualification, aptitude etc.
• Takes health and safety measures which ensures physical and mental health of the employees.

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Objectives of HRM

Objectives of HRM

• To help the organization reach its goals.
• To ensure effective utilization and maximum development of human resources.
• To ensure respect for human beings.
• To identify and satisfy the needs of individuals.
• To ensure reconciliation of individual goals with those of the organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-motivated employees.
• To increase to the fullest the employee’s job satisfaction and self-actualization.

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• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To develop overall personality of each employee in its multidimensional aspect.
• To enhance employee’s capabilities to perform the present job.
• To equip the employees with precision and clarity in transactions of business.
• To inculcate the sense of team spirit, team work and inter-team collaboration.

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Functions of HRM

Principles of HRM

Principles of HRM

• Principle of Individual Development – To offer an equal opportunity to every employee so as to realize his/her potential and capability.
• Principle of the Scientific Selection – To place the right individual in the right job.
• Principle of the Free Flow of Communication- To open & encourage upward, downward, formal as well as informal communication.
• Principle of the Participation – To associate with employees at each and every level of decision making.
• Principle of a Fair Remuneration- To pay fair and equitable wages & salaries to talented employees.

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• Principle of an Incentive – To review the performances of the employees and rewarding them accordingly.
• Principle of the Dignity of Labor – To treat each and every employee with respect and dignity.
• Principle of Labor-Management co-operation – To promote industrial relations and labor laws.
• Principle of Team Spirit – To ensure co-operation & teamwork amongst the employees.
• Principle of Contribution to National Prosperity – To provide a higher work purpose to all the employees and to contribute to the national prosperity and integrity.

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Personnel Management�

Personnel Management Vs HRM