INTRODUCTION :

The concept of human resource management is increasingly becoming a most vital function
of a modern manager. Human resource management is the management of employees’
knowledge, abilities, talents, aptitudes, creative abilities, etc. Human resources take active
role in the modern economic scenario of any country. TheThe abundant physical resources
alone cannot benefit the growth of the country without human resource component, which
transforms physical resources into productive resources. In fact, the differences in the level
of economic development of the countries are largely a reflection of the differences in
quality of their human resources. The key element in this proposition is that the values,
attitudes, general orientation and quality of people of a country that determines its economic
development. “People are our most valuable asset” is a cliché which is no member of any
management team would disagree with. The concept of HRM assumes immense importance
as HRM plays vital role in meeting the challenging requirements of highly skilled &
component human resources due to globalization.

DEFINITION :

Human resource management is planning, organizing, directing & controlling of the

procurement, development, compensation, integration, maintenance & separation of human
resources to the end that individual, organizational and social objectives are accomplished.

MEANING :
Human resources management involves all management decisions & practices that directly affect
or influence people or human resources, who work for the organization. In recent years,
increased attention has been devoted to how organizations manage human resources. This
increased attention comes from the realization that an organization’s employees enable an
organization to achieve its goals, & the management of these human resources is critical to the
success of the organization. HRMHRM is management function that helps managers to recruit,
select, train & develop members for an organization. Obviously HRM is concerned with the
people’s dimensions in organizations. HRM refers to set of programs, functions & activities
designed & carried out. Human resource management means employing people, developing their
resources, utilizing, maintaining & compensating their services in consonance with the job and
organisational requirements.

CORE ELEMENTS OF HRM :

 People : Organizations mean people. It is the people who staff & manage
organizations.
 Management : HRM involves application of management functions &
principles for acquisitioning, developing, maintaining & remunerating
employees in organizations.
 Integration & Consistency : Decisions regarding people must be integrated &
consistent.
 Influence : Decisions must influence the effectiveness of organization
resulting into betterment of services to customers in the form of high quality
products supplied at reasonable costs.
 Applicability : HRM principles are applicable to business as well as non-
business organizations too, such as education, health recreation & the like.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT :

There are 2 broad functions of HRM. They are:

I. Managerial Functions
II. Operational Functions

I. Managerial Functions :
Managerial functions of Personnel management include planning, organizing,
directing, co-ordinating & controlling.

➢ Planning:
It is the charting out of programmes & changes in advance in theachievement of organizational
goals. Hence, it involves planning of human resources requirements, recruitment, selection,
training etc. It also involves forecasting of personnel needs, changing values, attitudes &
behavior of their employees & their impact on the organization.
➢ Organizing:

In the words of J. C. Massie, an organization is a “structure & process by which cooperative

groups of human beings allocated its tasks among its members, identifies relationships &
integrates its activities towards a common objective.” Given the complex relationships that exist
between specialized departments & the general departments, many top managers seek the advice
of personnel manager. In this manner the organisation establish. relationships among the
employees so that they can together contribute to the achievement of organizational goals.

➢ Directing:

After planning & organizing comes the execution of plan. The willing & effective cooperation of
employees towards the achievement of organization’s goals has to be brought about by proper
direction. Identifying & utilizing maximum potentials of people is possible through motivation &
command. Direction, therefore, is an important managerial function in ensuring optimum
employee contribution.

➢ Co-ordinating:
It is the task of matrixing various employees’ efforts to ensure successful goal achievement. The
Personnel manager co-ordinates various managers at different levels as far as the personnel
functions are concerned.

➢ Controlling:

After planning, organizing, directing & co-ordinating, the various activities, the performance is
to be verified in order to know, at various points of time, whether the activities are performed as
per plans & directions. It involves checking, verifying & comparing actual with the plans,
identification of deviations if any & correcting the deviations. Auditing training programmes,
analysing labour turnover, overseeing morale surveys, conducting exit interviews are some of the
controlling functions of personnel management.

II. Operative Functions :

The operative functions of HRM relate to employment, development, compensation & relations. All these
are interacted by managerial functions. Also, they are to be performed in conjunction with management
functions.

➢ Employment:

Employment function is securing & employing the people having required level of human resources
essential for achieving the organizational objectives. It involves job analysis, human resources planning,
recruitment, selection, placement, induction & handling internal mobility.

➢ Job Analysis:
It is the study & collection of data relating to the operations & responsibilities of a specific job. It
includes:
a. .Collection of data & information & facts relating to the various aspects of jobs including men,
machines & materials.
b. Drawing up of job description, job specification, job requirements
& employee specification with which nature, level & quantum
human resources can be finalized
c. Providing the guidelines, plans & the basis for job design & for all
operative functions of HRM.
➢ Human Resource Planning:

This is the process which assures the organization that it will have adequate number of qualified persons,
at requisite times, performing in a way to satisfy the needs of the organization & also provide satisfaction
to the individual employee, so employed. The process involves:
a. Estimating the present & future requirements of human resources based on objectives & long range
plans of the organization.
b. Calculation of net human resource requirements based on the present availability of human resources.
c. Taking suitable steps to identify, mould, change & develop the strength of existing employees so as to
meet the future requirements.
d. Preparation of action plans to acquire the balance human resources from outside the organization & to
develop the existing employees.

➢ Recruitment:

It is the process of searching for future employees (requirement) & ensuring they apply for jobs in the
organization. It involves:
a. Identification of existing sources of candidates & developing them.
b. Seeking out & identifying new sources of applicants.
c. Motivating the right type of candidates to apply for jobs in the organization.
d. Ensuring a healthy balance between internal & external sources.

➢ Selection:

It is the process of ascertaining the qualifications, experience, skill, knowledge, etc. of an applicant to
ascertain his/her suitability for the job applied. This includes:
a. Developing application blanks.
b. Creating & developing valid & reliable testing techniques.
c. Formulating interviewing techniques.
d. Checking of references.
e. Setting up for medical examination policy & procedure.
f. Line Managers to be involved in the decision making.
g. Sending letters of appointment.
h. Employing the selected candidates, when he reports for duty.
 ➢ Placement:

It is a process of allotting to the selected candidate the most suitable job, as per the job requirements &
employee specifications. This function includes:
a. Counselling the concerned managers regarding the placements.
bb. Overseeing the follow-up studies, employee performance appraisal to monitor employee adjustment
to the job, in the coming days.
c. Correct wrong/misjudged placements, if any

➢ Induction & Orientation:

These are procedures by which a new employee is rehabilitated in the new surroundings & introduced to
the practices, procedures, policies, people, etc. Of the organization. ItIt includes:
a. Familiarizing the employee with company philosophy, objectives, policies, career planning &
development, company product, market share, history, culture, etc.
b. Introduce new employee to the people—his colleagues, supervisors & subordinates.
c. Mould the employees by orientation methods to the new working conditions.

➢ Human Resource Development:

This process involves improving, moulding, & developing the skills, knowledge, creativity, attitude,
aptitude, values, commitment, etc. based on the present & future job & company requirements
.

➢ Performance Appraisal:
It is the continuous & systematic evaluation of individual employees with respect to their performance &
their potential for future development. It includes:
a. Enunciating policies, procedures & techniques.
b. Assisting functional managers.

c. Reviewing & summarizing reports.

d. Evaluating the effectiveness of various programmes.

➢ Training:
It is the process of transmitting the employees the technical & operating skills & knowledge.
It includes:
a. Identification of training needs of the individuals & for the organisation.
b. Developing appropriate training programmes.
c. Assissting & advising the management in the conduct oftraining programmes.
d. Transmitting requisite job skills & job knowledge to the employees.
e. Asses the effectiveness of the training programmes.

➢ Management Development:
It is the process of designing & conducting appropriate executive development programmes so as
to develop the managerial & human relations skills of the employees. It includes:
a. Identification of the areas in which management development is needed.
b. Conducting development programmes.
c. Motivating executives/managers.
d. Designing special development programmes/ assessment procedures for promotions.
e. Utilising the services of specialists—both internal & external for development &/or Institutional
(external) development programmes.
f. Evaluating the effectiveness of executive development programmes.

➢ Career Planning & Development:

It is the planning of one’s career & implementation of career palns by means of education, training, job
search & acquiring of work experience. It includes:
a. Internal mobility—vertical & horizontal transfers, promotions & demotion.
b. Transfer—process of placing employees in the same level jobs where they can be utilised more
effectively as per the needs of the organisation. This also means—developing transfer policies, offering
assistance & guidance to employees under transfer orders & evaluating transfer policy periodically.
c. Promotion—it deals with the upward assignment of employees to occupy higher positions (with better
status & pay) in consonance with resources of employees & job requirement. The department must ensure
that:
i. Equitable, fair & consistent promotions are formulated & administered.
ii. Managers & employees are given assistance & guidance on the subject of promotion.
iii. Execution of promotional policies are as per policies & procedures
. d. Demotion—is the downward assignment of an employee in an organisation. The department must
ensure that:
 i. Equitable, fair & consistent demotion policies are drawn up.
ii. Assisting & advising employees regarding demotions.
iii. Ensure fair implementation of demotion policies & procedures.

➢ Organisational Development:
The planned process drawn up to improve organisational effectiveness through changes in individual &
group behaviour, culture & systems of the organisation—drawing models from applied behavioural
science.

➢ Human Relations:
Administering various human resources policies like employment development & compensation &
interactions among the employees on one hand & employees & the management on the other, create a
sense of working relationships between workers & management & trade unions. Basically they are all
interactions between human beings human relations, is therefore, is an important area in management
which integrates people into work situations in a way that motivates people to work together with
economic, psychological & social satisfaction thereby increasing their productivity. Hence Human
Resources Management
functions will centre around:
a. Understanding perception, personality, learning, intra & inter personal relations, inter & intra group
relations.
b. Motivating all employees.
c. Promoting employee morale.
d. Developing communication skills.
e. Developing leadership skills.
f. Redressing satisfactorily through a well defined grievance procedure.
g. Handling disciplinary cases by established disciplinary procedures & in all fairness.
h. Providing adequate counselling to solve employees’ personal, work & family problems, thereby
releasing their stress & strain.

Topic 10 HR Best Practices :

Here are the Top Ten HR Practices that can help you achieve your organizational goals every
year.

 Safe, healthy and happy workplace :

Creating a safe, healthy and happy workplace ensures that

employees feel at home and stay with the organization for a very
long time. Capture their thoughts through frequent surveys.

 Open book management style :

Sharing information about contracts, sales, new clients, management objectives, company
policies, employee personal data, etc. ensures that the workforce is as enthusiastic about
the business as the management. It helps in making people interested in your strategic
decisions, thus aligning them to your business objectives. Be as open as you can.
Employee self-service portal, manager on-line etc. are some tools available today to
practice this style.

 Performance linked bonuses :

Awarding bonuses or including a variable component in compensation can be both an

incentive and a disillusionment based on how it is administered and communicated.
Bonuses must be designed in such a way that employees understand that there is no
payout unless the company hits a certain level of profitability. Additional criteria could
be the team’s success and the individuals performance. It is good for employee retention
also.

 360 Degree performance management feedback system :

This system, which solicits feedback from seniors (including the boss), peers, and
subordinates, has been increasingly embraced as the best available method collecting
 performance feedbacks. Every person in the team is responsible for giving relevant,
positive and constructive feedback.
 Fair evaluation system :

Develop an evaluation system that clearly links individual performance to corporate

business goals and priorities. Each employee should have well-defined reporting
relationships. Self-rating should be a part of the evaluation process as it empowers
employees. Evaluation becomes fairer if it is based on achievements of the
employee, tracked over the year. For higher objectivity, besides the immediate boss, each
employee should be evaluated by the next higher level (often called a reviewer). Cross-
functional feedback, if obtained by the immediate boss from another manager (for whom
this employee’s work is also important), will add to the fairness of the system.

 Knowledge sharing :

Adopt a systematic approach to ensure that knowledge management supports strategy.

Store knowledge in databases to provide greater access to information posted either by
the company or the employees on the knowledge portals of the company. When an
employee returns after attending any competencies or skills development program,
sharing essential knowledge with others could be made mandatory. Innovative ideas
(implemented at the work place) should also be posted on these knowledge sharing
platforms. However, what to store and how to maintain a knowledge base requires further
and detailed plans.

 Highlight performers :

Create profiles top performers and make these visible though company intranet, display
boards, etc. It will encourage others to put in their best, thereby creating a competitive
environment within the company.
  Open house discussions and feedback mechanism :

Ideas rule the world. Great organizations recognize, nurture and execute great ideas.
Employees are the biggest source of ideas. The only thing that can stop great ideas being
implemented in your organization is the lack of an appropriate mechanism to capture
ideas. Open house discussions, employee-management meets, suggestion boxes and tools
such as Critical Incidents Diaries can help identify and develop talent.
 Rewards :

Merely recognizing talent may not work, you need to couple it with public appreciation. Getting
a cash bonus is often less significant than listening to the thunderous applause by colleagues in a
public forum.

 Delight employees with the unexpected :

Last but not least, occasionally, delight your employees with unexpected things in the form of a
reward, a gift or a certificate. Reward not only the top performers but also a few others who need
to be motivated to exhibit their potential.

Empxtrack is composite hr solution helps you implement most of these best practices by utilizing
software tools. We provide you with relevant performance management system which is
synchronized with your HR processes.