Concept of HRM: Human resource management is the strategic approach to the effective

management of organization workers so that they help the business gain a competitive advantage,
commonly known as the HR Department, it is designed to maximize employee performance in
service of an employer's strategic objectives

Nature of HRM: Human Resource Management is a process of bringing people and organizations
together so that the goals of each are met. The various features of HRM include:
 It is pervasive in nature as it is present in all enterprises.
 Its focus is on results rather than on rules.
 It tries to help employees develop their potential fully.
 It encourages employees to give their best to the organization.
 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.

Objectives of HRM:
 To help the organisation to attain its goals effectively and efficiently by providing competent and
motivated employees.
 To utilize the available human resources effectively.
 To increase to the fullest the employee’s job satisfaction and self-actualisation.
 To develop and maintain the quality of work life (QWL) which makes employment in the
organisation a desirable personal and social situation.
 To help maintain ethical policies and behaviour inside and outside the organisation.
 To establish and maintain cordial relations between employees and management.
 To reconcile individual/group goals with organisational goals.

Scope of HRM: The scope of HRM is, indeed, very vast and wide. It includes all activities starting
from manpower planning till employee leaves the organisation. Accordingly, the scope of HRM
consists of acquisition, development, maintenance/retention, and control of human resources in the
organisation.
1.The Labour or Personnel Aspect:
This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion,
training and development, lay-off and retrenchment, remuneration, incentives, productivity, etc.
2. Welfare Aspect:
It deals with working conditions, and amenities such as canteen, creches, rest and lunch rooms,
housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
3. Industrial Relations Aspects:
This covers union-management relations, joint consultation, collective bargaining, grievance and
disciplinary actions, settlement of disputes, etc.
Importance of HRM: An organisation cannot build a good team of working professionals without
good Human Resources. The key functions of the Human Resources Management (HRM) team
include recruiting people, training them, performance appraisals, motivating employees as well as
workplace communication, workplace safety, and much more.
Recruitment and Training: This is one of the major responsibilities of the human resource team. The
HR managers come up with plans and strategies for hiring the right kind of people. They design the
criteria which is best suited for a specific job description.
Performance Appraisals: HRM encourages the people working in an organisation, to work according
to their potential and gives them suggestions that can help them to bring about improvement in it.
Maintaining Work Atmosphere: This is a vital aspect of HRM because the performance of an
individual in an organisation is largely driven by the work atmosphere or work culture that prevails
at the workplace
Managing Disputes: In an organisation, there are several issues on which disputes may arise
between the employees and the employers. You can say conflicts are almost inevitable.
Developing Public Relations: The responsibility of establishing good public relations lies with the
HRM to a great extent.

Basis for Personnel Management Human Resource Management

Comparison
Meaning The aspect of management The branch of management that
that is concerned with the focuses on the most effective use of
work force and their the manpower of an entity, to achieve
relationship with the entity is the organizational goals is known as
known as Personnel Human Resource Management.
Management.
Approach Traditional Modern
Treatment of Machines or Tools Asset
manpower
Type of function Routine function Strategic function
Basis of Pay Job Evaluation Performance Evaluation
Management Transactional Transformational
Role
Communication Indirect Direct
Labor Collective Bargaining Individual Contracts
Management Contracts
Initiatives Piecemeal Integrated
Management Procedure Business needs
Actions
Decision Slow Fast
Making
Job Design Division of Labor Groups/Teams
Meaning of HRP: Human resource planning is a process that identifies current and future human
resources needs for an organization to achieve its goals. Human resource planning should serve as a
link between human resource management and the overall strategic plan of an organization.
Objectives of HRP:
 Ensure adequate supply of manpower as and when required.
 Ensure proper use of existing human resources in the organisation.
 Forecast future requirements of human resources with different levels of skills.
 Assess surplus or shortage, if any, of human resources available over a specified period of time.
 Anticipate the impact of technology on jobs and requirements for human resources.
 Control the human resources already deployed in the organisation.
Importance of HRP: Human resource planning aims at fulfilling the objectives of manpower
requirement. It helps to mobilize the recruited resources for the productive activities. The human
resource planning is an important process aiming to link business strategy and its operation.
Future Manpower Needs:
Human resource planning ensures that people are available to provide the continued smooth
operation of an organization.
Coping with Change: Human resource planning is important to cope with the change associated with
the external environmental factors.
Recruitment of Talented Personnel: Another purpose of HR planning is to recruit and select the
most capable personnel to fill job vacancies.
Development of Human Resources: Human resource planning identifies the skill requirements for
various levels of jobs.
Uncertainty Reduction: This is associated with reducing the impact of uncertainty which are brought
by unsodden changes in processes and procedures of human resource management in the
organization.
 Process of HRP: Human resource (HR) planning or manpower planning is a continuous process.
The human resource manager is required to revise the employment policies from time to time
for achieving the best results.
Objectives of human resource planning: human resource planning must be matched with overall
organizational plans. It should be concerned with filling future vacancies rather than matching
existing personnel with existing jobs.
Current manpower stock: Current manpower stock must be continuously maintained by every
department. Manpower inventory must have the detailed bio data of each individual.
Demand/ supply forecasting: Firstly the organization must check the demand of manpower after
every one year, two-year so on. For this purpose employment trends to show the number of
employees on payroll during last say three years to show the trend.
Determining net requirement: Human resource manager must check the demand and supply of the
manpower before deriving at any conclusion.
Redeployment and redundancy: In redeployment the surplus employees in one department can be
transferred to another department where deficit of employees estimated and in case of redundancy
where surplus employees cannot be redeployed, they can be offered voluntary retirement scheme.
Employment programme: Here it is required to prepare programmes of recruitment, selection,
transfer and promotion to achieve organization goal.
Training and development: It are very necessary for the employees to keep them updated in the job
they are doing.
Evaluation of Human resource planning: After doing all the above steps it is necessary to evaluate
the effectiveness of human resource planning.
Selection: Selection is the process of choosing a qualified person for specific role who can
successfully deliver valuable contributions to the organization. The term selection can be applied to
many aspects of the process, such as recruitment, hiring, and acculturation. However, it most
commonly refers to the selection of workers. A selection system should depend on job analysis. This
ensures that the selection criteria are job related and propose value additions for the organization.

Process of Selection: A scientific and logical selection procedure leads to scientific selection of
candidates. The criterion finalized for selecting a candidate for a particular job varies from company
to company.
Inviting applications: The prospective candidates from within the organization or outside the
organization are called for applying for the post.
Receiving applications: Detailed applications are collected from the candidates which provide the
necessary information about personal and professional details of a person.
Scrutiny of applications: As the limit of the period within which the company is supposed to receive
applications ends, the applications are sorted out.
Written tests: As the final list of candidates becomes ready after the scrutiny of applications, the
written test is conducted.
Psychological tests: These tests are conducted individually and they help for finding out the indi-
vidual quality and skill of a person.
Personal interview: Candidates proving themselves successful through tests are interviewed per-
sonally. The interviewers may be individual or a panel.
Reference check: Generally, at least two references are asked for by the company from the can-
didate.
Medical examination: Physical strength and fitness of a candidate is must before they takes up the
job.
Final selection: At this step, the candidate is given the appointment letter to join the organization on
a particular date.
Placement: This is a final step. A suitable job is allocated to the appointed candidate.

Techniques of Selection: Finding and keeping great talent is a top priority for business owners.
Having huge employer eat at resources, time and money for employers. This is why more business
owners consider human resources selection techniques that help vet out prospects more effectively
Behavioural Questions: Many employers are developing behaviourally based questions to
understand how the prospect thinks and the types of choices they will make at work.
Skills Tests: Some jobs require specific skills. Skills test make sure your prospect has at least, a
minimum level of skill for any required task. This could be a typing test, a writing test or even a math
test.
Personality Tests: Personality tests are also becoming popular ways to interview candidates to
determine if the candidate has the personality to succeed in a specific job. For example, a person
who is not comfortable speaking with strangers, might not do well in a sales position.
Panel Interview: Conducting a panel interview with the candidates you are most seriously
considering can seem like additional work.
Training & Development: Human resource management regards training and development as a
function concerned with organizational activity aimed at bettering the job performance of
individuals and groups in organizational settings. Training and development can be described as "an
educational process which involves the sharpening of skills, concepts, changing of attitude and
gaining more knowledge to enhance the performance of employees". The field has gone by several
names, including "human resource development", "human capital development" and "learning and
development".

 Objectives of T&D:
Increased Productivity: For any company, keeping the productivity at its peak is as important as
getting in new customers for business.
Quality Improvement: Improving the quality of the product is obviously one of the main objectives
of training and development since it’s not like those times when customers weren’t such quality
conscious.
Learning time Reduction: Keeping an eye on the learning capabilities of employees, and providing
them the help which they need, can be highly beneficial in longer runs.
Safety First: Safety of anyone, either he is a worker, an officer or even a customer, is not something
that can be taken lightly, especially in cases, where one knows that even a minute mistake can even
lead to life threats.
Labour Turnover Reduction: No business can flourish well while it is regularly turning over its
workforce since it is obvious that every new workforce will require some time to understand the
type of work.
Keeping yourself Updated with Technology: Computers and mobile phones are the miracles of the
past but the world of today is far more advanced than that.
Effective Management: One of the primary objectives of training and development process is to give
rise to a new and improved management which is capable of handling the planning and control
without any serious problem.

Importance of T&D: Training presents a prime opportunity to expand the knowledge base of all
employees, but many employers find the development opportunities expensive.
Addressing Weaknesses: Most employees have some weaknesses in their workplace skills. A
training program allows you to strengthen those skills that each employee needs to improve.
Improved Employee Performance: An employee who receives the necessary training is better able
to perform their job. They become more aware of safety practices and proper procedures for basic
tasks.
Consistency: A structured training and development program ensures that employees have a
consistent experience and background knowledge.
Employee Satisfaction: Employees with access to training and development programs have the
advantage over employees in other companies who are left to seek out training opportunities on
their own.
Steps of training: Effective training should be a process, not simply something thrown together
and implemented hastily.
Conception: The first step in the training process is conception of the training. This simple first step
gives way to all subsequent steps, making it a highly important one.
Leader Training: For training to be optimally effective, there must be one overall leader in the
training process.
Site Selection: When selecting the site, the third step, the newly appointed leader generally takes
the helm. To ensure that the selected site is conducive to the training in question, the leader should
consider what space requirements and equipment needs he anticipates.
Training Planning: Next, the trainer must actively plan the training. This step involves setting the
date for the training as well as creating a clear outline of how the training will run.
Practice: Prior to the planned training, the trainer should conduct a dry run.
Training: The sixth step of this process is the actual training itself. For the training, the trainer runs
through his carefully planned training program.
Evaluation: Post training, the trainees should have the opportunity to evaluate the training.
Retraining: Retraining is the eighth step in the training process, and it is a step that is not always
necessary.

Management Development: Management Development. Management Development is described

as the process from which the managers learn and improve their skills & knowledge not only to
benefit themselves but also their employing organizations.

Objectives of MD:
To bring current performance of the managerial personnel up to the highest attainable level.
To ensure availability of qualified managerial manpower
To ensure managerial capabilities.
To aid in encouraging and achieving self-development and self confidence
To provide opportunities for managers to update their knowledge and skill

Techniques of MD: Management development techniques are several and diverse depending on
the context and purpose.

On-the-job techniques: On-the-job methods are most popular for developing executive talent. Here,
both the trainee executive and trainer are not free from their daily chores and the pressure of their
executive routine jobs. These methods include-
(a) The coaching method, (b) Understudy method, (c) Job rotation, (d) Special projects,
(e) Committee assignments, and (f) Selective

Off-the job methods: On-the-job methods of executive development just discussed above may not
be adequate because of the complexities of management process and inadequate facilities,
environment and teaching experience, calling for more sophisticated and comprehensive methods
of development. These methods include-
(a)Case studies, (b) Role playing, (c) In-basket methods, (d) Business games, (e) Sensitivity training,
(f) Simulation, (g) Incident method, (h) Conferences, (i) Lectures, and (j) Syndicate method.
Performance Appraisal: A performance appraisal, also referred to as a performance review,
performance evaluation, (career) development discussion, or employee appraisal is a method by
which the job performance of an employee is documented and evaluated. Performance appraisals
are a part of career development and consist of regular reviews of employee performance within
organizations.

Objectives of Performance Appraisal:

 To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
 To identify the strengths and weaknesses of employees to place right men on right job.
 To maintain and assess the potential present in a person for further growth and
development.
 To provide a feedback to employees regarding their performance and related status.
 To provide a feedback to employees regarding their performance and related status.
 It serves as a basis for influencing working habits of the employees.
 To review and retain the promotional and other training programmes.

Features of Performance Appraisal-

Systematic process of evaluation of an employee.
Analysis of the strengths and weaknesses of an employee.
To find out how well an employee is performing the job.
Appraisal is done periodically.
It is based on a definite plan.
Performance appraisal is different from job evaluation.
Performance appraisal is a continuous process that is accepted by every organization.

Methods of PA: Numerous methods have been devised to measure the quantity and quality of
employee’s job performance. Each of the methods could be effective for some purposes, for some
organizations. None should be dismissed or accepted as appropriate except as they relate to the
particular needs of the organization or of a particular type of employees.
The approaches can be broadly classified into:-
 Past-oriented methods: Rating scales, Checklist, Force choice methods, Critical incident
methods,
Field review methods, Confidential records, Essay methods, Cost method.
 Future-oriented methods: Paired comparison method, Forces distribution method, Field review
technique

Potential appraisal is a future-oriented appraisal whose main objective is to identify and evaluate
the potential of the employees to assume higher positions and responsibilities in the organizational
hierarchy. Many organizations consider and use PA as a part of the performance appraisal processes.