Definition

“Human Resource Management is a management function concerned with hiring,

motivating and maintaining people in an organisation.”
It focuses on people in the organisation.

Scope

● Human Resource Planning:

● Definition: The process of anticipating and planning for future

workforce needs.
● Importance: Ensures the organization has the right number of people
with the right skills at the right time.
● Key activities:
○ Forecasting future labor demand
○ Analyzing current workforce capabilities
○ Identifying gaps between current and future needs
○ Developing strategies to address these gaps

● Job Analysis and Design:

● Definition: The systematic process of collecting information about job

duties, responsibilities, and requirements.
● Importance: Provides the foundation for many other HR functions.
● Key activities:
○ Determining job duties and responsibilities
○ Identifying necessary skills and qualifications
○ Creating job descriptions and specifications
○ Designing jobs to maximize efficiency and employee satisfaction

● Recruitment:

● Definition: The process of attracting qualified candidates for job

openings.
● Importance: Critical for building a talented workforce.
● Key activities:
○ Developing recruitment strategies
○ Creating job postings
○ Utilizing various recruitment channels (e.g., job boards, social
media, employee referrals)
 ○ Building an employer brand to attract top talent

● Selection:

● Definition: The process of choosing the most suitable candidates from

the pool of applicants.
● Importance: Ensures the organization hires individuals who can
contribute effectively.
● Key activities:
○ Screening resumes and applications
○ Conducting interviews (structured, unstructured, or behavioral)
○ Administering tests (skills, personality, aptitude)
○ Checking references and conducting background checks

● Orientation:

● Definition: The process of introducing new employees to the

organization and their roles.
● Importance: Helps new hires adjust quickly and become productive.
● Key activities:
○ Providing information about company policies and procedures
○ Introducing new employees to their colleagues and workspace
○ Explaining job responsibilities and expectations
○ Facilitating the completion of necessary paperwork

● Training and Development:

● Definition: Activities designed to enhance employees' knowledge,

skills, and abilities.
● Importance: Crucial for maintaining a skilled and adaptable workforce.
● Key activities:
○ Assessing training needs
○ Designing and delivering training programs
○ Providing opportunities for career development
○ Evaluating the effectiveness of training initiatives

● Performance Appraisal and Job Evaluation:

● Definition: The process of assessing employee performance and

determining the relative worth of jobs within an organization.
● Importance: Essential for fair compensation, promotions, and
identifying areas for improvement.
● Key activities:
○ Setting performance standards and goals
 ○ Conducting regular performance reviews
○ Providing feedback and coaching
○ Evaluating jobs based on their responsibilities and requirements

● Employee and Executive Remuneration:

● Definition: The compensation and benefits provided to employees and

executives in return for their work.
● Importance: Critical for attracting, motivating, and retaining talent.
● Key activities:
○ Developing compensation strategies
○ Designing salary structures and pay grades
○ Implementing bonus and incentive plans
○ Managing benefits programs (e.g., health insurance, retirement
plans)

Objectives

● Personal Objectives:

● Employee Satisfaction and Engagement: HRM aims to ensure that

employees are satisfied with their work, feel engaged, and find
meaning in their contributions.
● Work-Life Balance: HRM policies and practices help employees achieve
a healthy balance between their professional and personal lives.
● Career Development: HRM supports employees' career growth and
progression through training, mentoring, and succession planning.
● Employee Well-being: HRM focuses on promoting the physical, mental,
and emotional well-being of employees.

● Functional Objectives:

● Talent Acquisition: HRM is responsible for attracting, selecting, and

retaining the best-fit talent for the organization.
● Performance Management: HRM designs and implements effective
performance management systems to align employee goals with
organizational objectives.
● Training and Development: HRM invests in upskilling and reskilling
employees to enhance their capabilities and adaptability.
 ● Employee Relations: HRM manages the relationship between the
organization and its employees, addressing issues such as grievances,
disciplinary actions, and labor relations.

● Organisational Objectives:

● Organizational Effectiveness: HRM contributes to the overall

effectiveness and efficiency of the organization by ensuring the right
people are in the right roles.
● Competitive Advantage: HRM plays a strategic role in developing and
maintaining the organization's competitive edge through human
capital management.
● Organizational Culture: HRM shapes and reinforces the organization's
culture, values, and norms to foster a positive and productive work
environment.
● Productivity and Profitability: HRM's efforts in areas like workforce
planning, employee engagement, and compensation management
contribute to enhanced productivity and profitability.

● Societal Objectives:

● Ethical and Legal Compliance: HRM ensures the organization's policies

and practices adhere to relevant labor laws, regulations, and ethical
standards.
● Corporate Social Responsibility: HRM can contribute to the
organization's social responsibility initiatives, such as diversity and
inclusion, environmental sustainability, and community engagement.
● Talent Development: HRM's investment in employee training and
development helps build a skilled workforce that benefits the broader
community and society.
● Economic Contribution: Effective HRM practices can contribute to the
overall economic well-being of the community and society through job
creation, tax contributions, and economic stability.

Functions

● Human Resource Planning: This is the foundation of effective HRM. It

involves forecasting future workforce needs, analyzing current skills and
talent, and developing strategies to attract, retain, and develop the right
people to meet organizational goals. Without strategic planning,
organizations can face talent shortages, misaligned skills, and difficulty
adapting to changing business needs.
● Recruitment and Selection: This function is crucial for attracting and hiring
the best talent. It includes defining job requirements, advertising positions,
screening applications, conducting interviews, and making hiring decisions. A
well-structured recruitment and selection process ensures that new hires are
qualified, competent, and fit the organization's culture.

● Training and Development: Investing in employee training and

development is essential for enhancing skills, knowledge, and adaptability.
This function involves identifying training needs, designing and delivering
training programs, and evaluating their effectiveness. Well-trained employees
are more productive, innovative, and engaged, contributing to the
organization's success.

● Performance Management: This function helps align individual goals with

organizational objectives. It involves setting performance goals, providing
regular feedback, conducting performance appraisals, and recognizing
achievements. A robust performance management system helps improve
employee productivity, identify areas for development, and create a culture
of accountability.

● Compensation and Benefits: This function involves determining fair and

competitive salary structures, providing benefits packages, and administering
payroll. Attractive compensation and benefits packages are crucial for
attracting and retaining talent, motivating employees, and promoting job
satisfaction.

● Employee Relations: This function focuses on building positive relationships

between the organization and its employees. It involves addressing
grievances, resolving conflicts, and promoting a fair and respectful work
environment. Strong employee relations contribute to higher employee
morale, reduced turnover, and improved productivity.

● Legal Compliance: HR professionals must ensure the organization adheres

to all relevant labor laws, regulations, and ethical standards. This includes
areas such as non-discrimination, equal opportunities, workplace safety, and
data privacy. Compliance is crucial for avoiding legal issues, maintaining a
positive public image, and creating a fair and ethical workplace.

● Assessment: This function involves evaluating employee performance,

skills, and potential. It includes tools like skills assessments, personality tests,
and performance appraisals. Assessment helps identify areas for
development, make informed decisions about promotions and placements,
and provide valuable feedback to employees.
 ● Placement: This function involves assigning employees to the right roles
based on their skills, experience, and career aspirations. Effective placement
helps maximize employee potential, improve job satisfaction, and enhance
organizational productivity.

● Union-Management Relations: In organizations with unions, this function

involves managing the relationship between the employer and the labor
union. It includes collective bargaining negotiations, grievance handling, and
ensuring compliance with labor agreements. Strong union-management
relations promote a more harmonious and productive workplace.

Difference between PM AND HRM

Dimension Personnel Management HRM

Aims to go beyond
Employment Contract Careful written contract
contract
Rules Clear rules Can outlook
Guide to management
Procedure Business needs
actions
Norms/Custom and
Behaviour referent Values/Mission
practices
Managerial task and
Monitoring nurturing
labours
Key relations Labor management customer
Piecemeal (small work at
Initiative Integrated
a time)
Speed of decision Slow Fast
Transformational
Managerial role Full process
leadership
Communication Indirect direct
Prized management skill Negotiation facilitation
Integrated task
Selection Separate function

Pay Fix grades Performance related

Conditions Separately negotiated Harmonised
Collective bargaining
Labour management Individual contract
contracts
Job design Division of labour Team work
Manage culture and
Conflict handling Reach on temporary basis
climate
Training and Controlled to courses Learning companies
 development
Focus on attention for Wide cultural, structural
Personnel procedures
intervantions and Personnel strategies
Labor is treated as tool
Respect for employees Asset of the organisation
which is replaceable
Interest of organization
Shared interest Mutality of interest
are uppermost
Evolution Earlier to HRM Latest evolution to HRM
Locus of control External internal
Organizing principle Top to down decentralized