1. HUMAN RESOURCES MANAGEMENT (HRM)
INTRODUCTION
Objectives are pre-determined goals to which individual or group activity in an organization is directed.
Objectives of personnel management are influenced by organizational objectives and individual and social
goals. Institutions are instituted to attain certain specific objectives. The objectives of the economic
institutions are mostly to earn profits, and of the educational institutions are mostly to impart education and
/ or conduct research so on and so forth. However, the fundamental objective of any organization is survival.
Organizations are not just satisfied with this goal. Further the goal of most of the organizations is growth
and / or profits.
Institutions procure and manage various resources including human to attain the specified objectives. Thus,
human resources are managed to divert and utilize their resources towards and for the accomplishment of
organizational objectives. Therefore, basically the objectives of HRM are drawn from and to contribute to the
accomplishment of the organizational objectives. The other objectives of HRM are to meet the needs,
aspirations, values and dignity of individual employees and having due concern for the socio-economic
problems of the community and the country.
The early part of the century saw a concern for improved efficiency through careful design of work. During
the middle part of the century emphasis shifted to the employee’s productivity. Recent decades have focused
on increased concern for the quality of working life, total quality management and worker’s participation in
management. These three phases may be termed as welfare, development and empowerment.
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DEFINITIONS OF HUMAN REOSURCE MANAGEMENT
Human resources may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an
organization’s workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved
in the affairs of the organization.
It is the sum total or aggregate if inherent abilities, acquired knowledge and skills represented by the talents
and aptitudes of the persons employed in the organization.
The human resources are multidimensional in nature. From the national point of view, human resources may
be defined as the knowledge skills, creative abilities, talents and aptitudes obtained in the population;
whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities,
acquired knowledge and skills as exemplified in the talents in the talents and aptitudes of its employees.
Human Resource Management has come to be recognized as an inherent part of management, which is
concerned with the human resource of an organization. Its objective is the maintenance of better human
relations in the organization by the development, application and evaluation of policies, procedures and
programmes relating to human resources to optimize their contribution towards the realization of
organizational objectives.
In other words, HRM is concerned with getting better results with collaboration of people. It is an integral
part of management, concerned with people at work and their relationships within the enterprise.
HRM helps in attaining maximum individual development, desirable working relationship between
employees and employers, employees and employees and effective modelling of human resources as
contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation
and motivation of human resources by the organization.
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NATURE OF HUMAN RESOURCE MANAGEMENT
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.

2. 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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SCOPE OF HUMAN RESOURCE MANAGEMENT
The scope of HRM is very wide.
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.
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BELIEFS ON HUMAN RESOURCE MANAGEMENT
The Human Resource Management philosophy is based on the following beliefs:
Human resource is the most important asset in the organization and can be developed and
increased to an unlimited extent.
A healthy climate with value of openness, enthusiasm, trust, mutuality and collaboration is essential
for developing human resource.
HRM can be planned and monitored in ways that are beneficial both to the individuals and the
organization.
Employees feel committed to their work and the organization, if the organization perpetuates a
feeling of belongingness.
Employees feel highly motivated if the organization provides for satisfaction of their basic and
higher level needs.
Employee commitment is increased with the opportunity to discover and use one’s capabilities and
potential in one’s work.
It is every manager’s responsibility to ensure the development and utilisation of the capabilities of
subordinates.
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OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
1. To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.
2. To establish and maintain sound organizational structure and desirable working relationships among all
the members of the organization.
3. To secure the integration of individual or groups within the organization by co-ordination of the
individual and group goals with those of the organization.
4. To create facilities and opportunities for individual or group development so as to match it with the
growth of the organization.

3. 5. To attain an effective utilization of human resources in the achievement of organizational goals.
6. To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives,
employee benefits and social security and measures for challenging work, prestige, recognition, security,
status.
7. To maintain high employees morale and sound human relations by sustaining and improving the various
conditions and facilities.
8. To strengthen and appreciate the human assets continuously by providing training and development
programs.
9. To consider and contribute to the minimization of socio-economic evils such as unemployment, underemployment, inequalities in the distribution of income and wealth and to improve the welfare of the society
by providing employment opportunities to women and disadvantaged sections of the society.
10. To provide an opportunity for expression and voice management.
11. To provide fair, acceptable and efficient leadership.
12. To provide facilities and conditions of work and creation of favourable atmosphere for maintaining
stability of employment.
Management has to create conductive environment and provide necessary prerequisites for the attainment
of the personnel management objectives after formulating them.
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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
In order to achieve the above objectives, human resource management undertakes the following activities:
► Human resource or manpower planning.
► Recruitment, selection and placement of personnel.
► Training and development of employees.
► Appraisal of performance of employees.
► Taking corrective steps such as transfer from one job to another.
► Remuneration of employees.
► Social security and welfare of employees.
► Setting general and specific management policy for organizational relationship.
► Collective bargaining, contract negotiation and grievance handling.
► Staffing the organization.
► Aiding in the self development of employees at all levels.
► Developing and maintaining motivation for workers by providing incentives.
► Reviewing and Auditing manpower management in the organization.
► Potential Appraisal, Feedback Counselling.
► Role Analysis for job occupants.
► Job Rotation.
► Quality Circle, Organization Development and Quality of working Life.
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MAJOR FACTORS INFLUENCING HUMAN RESOURCE MANAGEMENT
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Size if the workforce.
Rising employees’ expectations.
Drastic changes in the technology as well as life style changes.
Composition of workforce. New skills required.
Environmental challenges.
Lean and mean organizations.

4. ► Impact of new economic policy. Political ideology of the government.
► Downsizing and rightsizing of the organizations.
► Culture prevailing in the organization.
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