This document provides an overview of human resource management (HRM). It discusses what HRM is, its nature and scope, objectives, and key functions. Some of the main points covered include: - HRM focuses on managing an organization's employees, including recruitment, compensation, performance management, training, and ensuring legal and regulatory compliance. - It aims to help employees develop their potential while also helping the organization achieve its goals. HRM deals with personnel, welfare of employees, and industrial relations. - The objectives of HRM include developing employee skills and motivation, achieving organizational goals, and ensuring respect for human beings. - Key functions include recruitment, training, performance appraisal, compensation, and

1. D2K Technologies
Human Resource
Management
Prince Verma
2012
D2K Technologies

2. What Is Human Resource Management?
Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization.
It also deals with issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.
It also has a strategic and comprehensive approach to managing people and the workplace culture
and environment. Effective HRM enables employees to contribute effectively and productively to
the overall company direction and the accomplishment of the organization's goals and objectives.
Human Resource Management: Nature
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.
It helps an organization meet its goals in the future by providing for competent and well-
motivated employees.
It tries to build and maintain cordial relations between people working at various levels in the
organization.
It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology,
economics, etc.
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3. Human Resource Management: Scope
1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement,
transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives,
productivity etc.
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.
Human Resource Management: Objectives
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.
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 transaction of business.
To inculcate the sense of team spirit, team work and inter-team collaboration.
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4. Human Resource Management: Functions
In order to achieve the above objectives, Human Resource Management undertakes the following
activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for organizational relationship.
9. Collective bargaining, contract negotiation and grievance handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at all levels.
12. Developing and maintaining motivation for workers by providing incentives.
13. Reviewing and auditing manpower management in the organization
14. Potential Appraisal, Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization development and Quality of Working Life.
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5. 1. Manpower Planning
Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for which they
are suited for the achievement of goals of the organization. Human Resource Planning has got an
important place in the arena of industrialization. Human Resource Planning has to be a systems approach
and is carried out in a set procedure. The procedure is as follows:
1.Analyzing the current manpower inventory
2.Making future manpower forecasts
3.Developing employment programs
4.Design training programme
2. Recruitment, selection and placement of personnel
Recruitment
This is the process of searching for and obtaining sufficient number and quality of potential job seekers or
applicants to enable the organization to select the most appropriate people to fill its job needs. It is
pertinent to note that the process of recruitment must begin with a clear specification or understanding of
manpower needs. It should consider the time that the manpower requirement must be met for instance the
Labor market for fresh graduates with less than year experience in the National Youths Service Corps.
Labor market simple means an area where employers could easily get the type of workers they need to
carry out relevant duties and employees are available to sell their labor or seek employment .
Selection and Placement
Selection is a process of gathering information for the purposes of evaluating and deciding who should be
employed or hired for the short and Long-term interests of the individual and the organization.In other
words it is the process of getting the best of most qualified candidates from the pool of job seekers
adjudged to have potential for job performance.
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6. The importance of selection and placement;
 To fairly and without any element of discrimination evaluate job applicants in view of individual
differences and capabilities.
 To employ qualified and competent hands that can meet the job requirement of the organization
 To place job applicants in the best interest of the organization and the individual.
 To help in human resources manpower planning purposes in organization.
 To reduce recruitment cost that may arise as a result of poor selection and placement exercises.
3. Training and development of employees.
Employee Training and Development is a key ingredient in performance improvement. However, the
first step in designing an employee training and development program is to identify the training
needs. The training needs are based on what is needed to achieve the organization’s strategic
objectives. Key steps for performance improvement include
 Assess and define performance improvement issues and gaps
 Gain management commitment for performance improvement
 Develop a business plan to manage performance improvement
 Establish best practices for work processes and performance standards
 Provide employee training and development to develop required skills
 Establish new practices that support improved performance
 Measure and monitor results and provide coaching where needed
4. Appraisal of performance of employees
Once an annual ritual, performance appraisal has become a continuous process by which an employee
understands of a company’s goals and his or her progress toward contributing to them are measured.
Performance measurement is an ongoing activity for all managers and their subordinates.
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7. Performance measurement uses the following indicators of performance, as well as assessments of those
indicators.
I. Quantity: The number of units produced, processed or sold is a good objective indicator
of performance.
II. Quality: The quality of work performed can be measured by several means. The
percentage of work output that must be redone or is rejected is one such indicator. In a
sales environment, the percentage of inquiries converted to sales is an indicator of
salesmanship quality.
III. Timeliness: How fast work is performed is another performance indicator that should be
used with caution. In field service, the average customer’s downtime is a good indicator
of timeliness. In manufacturing, it might be the number of units produced per hour.
IV. Cost-Effectiveness: The cost of work performed should be used as a measure of
performance only if the employee has some degree of control over costs. For example, a
customer-service representative’s performance is indicated by the percentage of calls that
he or she must escalate to more experienced and expensive reps.
V. Absenteeism/Tardiness: An employee is obviously not performing when he or she is not
at work. Other employees’ performance may be adversely impacted by absences, too.
VI. Creativity: It can be difficult to quantify creativity as a performance indicator, but in
many white-collar jobs, it is vitally important. Supervisors and employees should keep
track of creative work examples and attempt to quantify them.
VII. Adherence to Policy: This may seem to be the opposite of creativity, but it is merely a
boundary on creativity. Deviations from policy indicate an employee whose performance
goals are not well aligned with those of the company.
VIII. Gossip and Other Personal Habits: They may not seem performance-related to the
employee, but some personal habits, like gossip, can detract from job performance and
interfere with the performance of others. The specific behaviors should be defined, and
goals should be set for reducing their frequency.
IX. Personal Appearance/Grooming: Most people know how to dress for work, but in
many organizations, there is at least one employee who needs to be told. Examples of
inappropriate appearance and grooming should be spelled out, their effects upon the
employee’s performance and that of others explained, and corrective actions defined.
X. Manager Appraisal: A manager appraises the employee’s performance and delivers the
appraisal to the employee. Manager appraisal is by nature top-down and does not
encourage the employee’s active participation. It is often met with resistance, because the
employee has no investment in its development.
XI. Self-Appraisal: The employee appraises his or her own performance, in many cases
comparing the self-appraisal to management's review. Often, self-appraisals can highlight
discrepancies between what the employee and management think are important
performance factors and provide mutual feedback for meaningful adjustment of
expectations.
XII. Peer Appraisal: Employees in similar positions appraise an employee’s performance.
This method is based on the assumption that co-workers are most familiar with an
employee’s performance. Peer appraisal has long been used successfully in
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8. manufacturing environments, where objective criteria such as units produced prevail.
Recently, peer appraisal has expanded to white-collar professions, where soft criteria
such as “works well with others” can lead to ambiguous appraisals. Peer appraisals are
often effective at focusing an employee’s attention on undesirable behaviors and
motivating change.
XIII. Team Appraisal: Similar to peer appraisal in that members of a team, who may hold
different positions, are asked to appraise each other’s work and work styles. This
approach assumes that the team’s objectives and each member’s expected contribution
have been clearly defined.
XIV. Assessment Center: The employee is appraised by professional assessors who may
evaluate simulated or actual work activities. Objectivity is one advantage of assessment
centers, which produce reviews that are not clouded by personal relationships with
employees.
XV. 360-Degree or “Full-Circle” Appraisal: The employee’s performance is appraised by
everyone with whom he of she interacts, including managers, peers, customers and
members of other departments. This is the most comprehensive and expensive way to
measure performance and it is generally reserved for key employees.
XVI. MBO (Management by Objectives): The employee’s achievement of objective goals set
in concert with his or her manager is assessed. The MBO process begins with action
statements such as, “reduce rejected parts to 5 percent.” Ongoing monitoring and review
of objectives keeps the employee focused on achieving goals. At the annual review,
progress toward objectives is assessed, and new goals are set.
5. Remuneration of employees
Employee Remuneration refers to the reward or compensation given to the employees for their work
performances. Remuneration provides basic attraction to an employee to perform job efficiently and
effectively. Remuneration leads to employee motivation. Salaries constitute an important source of
income for employees and determine their standard of living. Salaries affect the employee’s productivity
and work performance. Thus the amount and method of remuneration are very important for both
management and employees.
There are mainly two types of Employee Remuneration
1. Time Rate Method
2. Piece Rate Method
1. Time Rate Method: Under time rate system, remuneration is directly linked with the time spent or
devoted by an employee on the job. The employees are paid a fixed pre-decided amount hourly, daily,
weekly or monthly irrespective of their output. It is a very simple method of remuneration. It leads to
minimum wastage of resources and lesser chances of accidents. Time Rate method leads to quality output
and this method is very beneficial to new employees as they can learn their work without any reduction in
their salaries. This method encourages employee’s unity as employees of a particular group/cadre get
equal salaries.
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9. 2. Piece Rate Method: It is a method of compensation in which remuneration is paid on the basis of units
or pieces produced by an employee. In this system emphasis is more on quantity output rather than
quality output. Under this system the determination of employee cost per unit is not difficult because
salaries differ with output. There is less supervision required under this method and hence the per unit
cost of production is low. This system improves the morale of the employees as the salaries are directly
related with their work efforts. There is greater work-efficiency in this method.
How to motivate an employee???
Almost all employees want to do interesting work, secure a good salary and earn recognition for their
contributions. But motivating employees takes more than money and an occasional “thank-you.” It
requires a strategy tailored to each worker’s needs.
1. Ask what they want out of work. Just knowing that an HR manager or boss is interested in a worker's
goals will make many employees feel better about their jobs. It can be difficult to get a quick and accurate
answer to this question, however. Some workers may say that they want to work on a prestigious project,
for example, only to discover once they have been assigned to the project that it isn’t what they expected.
2. Consider each employee’s age and life stage. There are exceptions to every generalization, of course,
but workers nearing the end of their careers are often less focused on the next promotion than those who
are just starting to climb the corporate ladder. Younger workers may also be less accustomed than older
ones to waiting patiently in a job they don’t find interesting.
3. Match motivators to the company or department culture. Again, there are exceptions, but engineers
are likely to be motivated by working on cutting-edge projects. On the other hand, sales professionals
tend to use money as a way to measure how well they’re doing.
4. Pinpoint each employee’s personality. Some people love public praise; others are mortified by it and
would much prefer a sincere, in-person “thank-you.” Make sure you take this into account if you are
planning a ceremony to give awards or other recognition.
5. Use flexibility wisely. Allowing employees to telecommute some of the time or to set their own office
hours can have big benefits. It makes employees’ lives more manageable — and it shows them that they
are trusted.
6. Put money in its place. How well does money motivate workers? The answer isn’t simple. An
employee who demands a raise might really be unhappy because his or her suggestions are being ignored,
for example. And surveys and experts offer different answers about how important money is, depending
on how the question is phrased.
7. Don’t rely on stock options. If money is an unreliable motivator, stock options are even less likely to
motivate most workers. Employee worth goes up and down with a company’s stock price something very
few workers feel they can control.
8. Offer help with career goals. When you ask workers what kind of work they enjoy, also find out about
what they’re hoping to do in the future. Giving workers opportunities to build the skills and make the
connections they need to get ahead in their careers will build loyalty and motivation.
9. Help employees learn. It’s very important for workers to keep learning new skills on the job. With
people changing jobs more often than they used to and companies no longer promising long-term
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10. employment, younger workers in particular realize that continuing to learn is the way to stay employable,
said Leslie G. Griffen, managing partner of Career Management Associates, in Overland Park, Kan.
“Kids today are really under pressure to keep adding knowledge,” Griffen said. “I think learning is huge:
the ability to gather new knowledge on the job.”
Organized classes and seminars are one way to help with this, as are tuition-reimbursement programs. But
in many cases, it’s a matter of listening to what skills a worker is interested in acquiring, then giving the
person a chance to work on a project that will develop those skills.
10. Recognize that motivation isn’t always the answer. If your motivation efforts aren’t working, it
may not be your fault. “Not everyone can be motivated for that particular job,” Beasley said. If an
employee would really rather be doing something else, it may be best to encourage him or her to pursue
something new.
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