This document defines human resource management and its key functions. It states that HRM is the process of managing human resources in an organization by planning, organizing, directing and controlling functions like procurement, development, compensation, integration and maintenance of employees. The document also outlines the managerial and operative functions of HRM and discusses the importance, objectives, role of the human resource manager, and qualitative and quantitative indicators for auditing human resource management.
1. Definitions
“Human resource or manpower management effectively
describes the process of planning and directing the application,
development and utilization of human resources in employment” –
Dale Yoder.
“HRM is that part of management process which is primarily
concerned with the human constituents of an organization” –
E.F.L.Brech.
“The personnel function is concerned with the procurement,
development, compensation, integration and maintenance of the
personnel of an organization for the purpose of contributing towards
the accomplishment of that organisation’s major goals or objectives”
– Flippo.
cont’d…
2. “It is the field of management which has to do with
planning, organizing, directing and controlling the various
operative functions of procuring, developing ,
maintaining and utilizing a labour force for the attainment
of the company’s objectives” – Prof. Jucius.
“It is that part of the management function which is
concerned with people at work and with their relationship
within an enterprise. Its aim is to bring together and
develop into an effective organization the men and
women who make up an enterprise and having regard to
the well-being of an individual and of working groups, to
enable to make their best contribution to its success” –
The British Institute of Personnel Management.
7. Human Resource
• Peculiar Characteristics
• Exist
• Lives
• Created the other resources
• Commitment, devotion, enthusiasm,
energy, interest, intelligence,
• Creative
8. Nature of Human Resource Management
It is universally relevant
It is goal-oriented
It adopts a systematic approach in handling the
manpower resource
It is pervasive in nature
It is an on-going activity
It is a dynamic field of activity
It focuses on the development of manpower
resource
It is a Science as well as an Art
It is inter disciplinary
It is relatively new
9. Importance/role of Human Resource Management
(HRM)
Identify correctly its manpower needs
Right man for the right job
Development of the skill of every individual
Appraisal
Incentives
Employee attitude
Good human relations
Collective bargaining
10. The Role of a Human Resource Manager
Counselling
Act as a link
Employees get what is due to them
Spokesman
Introduce any change
Advise the line Managers
11. Qualities of a Human Resource Manager
Good Communication Skills
Creative
Analyse any problem objectively
Inspire, induce and motivate
Leadership qualities
Friendly and approachable
Fair and honest
Make decisions independently
Curious always.
Dynamic Person
Good Memory
12. Objectives of Human Resource Management
• To make an optimum utilisation of the human
resource of the organisation
• To ensure that the organisation has the required
number staff
• To establish and maintain a sound organisation
structure
• To reconcile personal and organisational goals
• To provide scope for the development of personnel
• To ensure that the employees have higher job
satisfaction
• To provide scope for participation in decision-
making
13. Human Resource Audit
Meaning
Human Resource Audit (HR Audit) is
concerned with the examination and
evaluation of the policies, procedures
and practices with reference to the
human resource of the organisation. It
is a periodic review to measure the
efficiency and effectiveness of human
resource management.
14. Objectives of HR Audit
o To review the entire system of procuring,
developing, allocating and utilising the human
resources in an organisation
o To seek explanation on any matter pertaining to the
human resource of the organisation.
o To evaluate the extent of implementation of the
human resource policies and programmes
o To evaluate the performance of the staff looking
after the HRM function.
15. IMPORTANCE OF HR AUDIT
Due to the
Importance of
the human
resource itself
To face any
future
enquiry
To meet the
challenges of
trade unions
To have
control over
cost of labour
To improve the
performance of
human resource
16. Human Resource
Management Function
Qualitative Indicators
1. Procurement
2. Development
3. Compensation
4. Integration
5. Maintenance
Quality of HR planning, Job Specification, Source of
Recruitment, Selection Procedure.
Type of Training, Management Development
Programme, performance Appraisal Methods,
promotion Criteria, Career Planning.
Method of Job Evaluation, Methods of Wage Payment,
Type of Incentives, Fringe Benefits, Union Demands.
Handling of Grievances and Conflicts, Measures taken
to ensure Discipline and a high level of Morale,
Employees’ participation in decisions.
Steps taken to provide Job Satisfaction, Measures
adopted to control labour turnover.
Qualitative Indicators for HR Audit
17. Human Resource
Management Function
Quantitative Indicators
1. Procurement
2. Development
3. Compensation
4. Integration
5. Maintenance
Time taken to fill up vacancies, Ratio of Vacancies to
Number of Posts, Number of Employees recruited
during the year.
Duration of each Training Programme, Number of
Trainees in every Programme. Productivity Increase.
Pay differentials, Number of employees earning bonus
and other incentives.
Level of Morale, Grievances and Conflicts, Rate of
Absenteeism.
Level of Job Satisfaction, Rate of Labour Turnover.
Quantitative Indicators