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Human Resource Management (HRM) is essential for managing an organization's most valuable asset—its people—by focusing on recruitment, training, employee welfare, and industrial relations. The scope of HRM is expanding to include strategic planning, employee satisfaction, and grievance handling, while its significance spans social, professional, corporate, and national levels. Recent trends in HRM highlight the importance of teamwork, diversity management, and adapting to demographic changes in the workforce.

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0% found this document useful (0 votes)
18 views16 pages

unit 1 notes

Human Resource Management (HRM) is essential for managing an organization's most valuable asset—its people—by focusing on recruitment, training, employee welfare, and industrial relations. The scope of HRM is expanding to include strategic planning, employee satisfaction, and grievance handling, while its significance spans social, professional, corporate, and national levels. Recent trends in HRM highlight the importance of teamwork, diversity management, and adapting to demographic changes in the workforce.

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lpesala2
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UNIT-1

Intoduction:
Human resources are undoubtedly the key resources in an organization, the easiest and the most
difficult to manage. Organisations are made up of people and functions through people. Without
people, organisations cannot exist.

The objectives of the HRM span right from the manpower needs assessment to management and
retention of the same.

To this effect Human resource management is responsible for effective designing and implementation
of various policies, procedures and programs.

It is all about developing and managing knowledge, skills, creativity, aptitude and talent and using
them optimally.

Man is the most valuable resource which appreciates with time if a right environment is given to him
and hence termed as “Human Resource”.

HR consists of those groups of people who are ready to provide their services for the benefits of the
organisation.

One of the aims of this process is to bridge the gap between the organisation and its people. The
purpose is to make an individual deliver his best and lending a supportive arm to the organisation.

HRM comprises of three aspects:


Personnel aspects:

Manpower planning, recruitment, selection, placement, transfer, promotion, training and development,
layoffs and retrenchments, remuneration, incentives, productivity, and so on are all covered.

Welfare aspects:

It deals with issues such as canteens, crèches, rest and lunchrooms, housing, transportation, medical
aid, education, health and safety, and recreational facilities, among others.

Industrial relations aspects:

This encompasses union-management relations, employee consultation, collective bargaining,


grievance and disciplinary procedures, dispute resolution, and among other things.
Definition:
According to Micheal J. Jucics,”Human Resource are a whole consisting of inter-related ,inter-
dependant, and interacting physiological, psychological, sociological, and ethical components ”.

According to Invancevich and Glueck,”HRM is concerned with the most effective use of people to
achieve organisational and individual goals.”

According to Edwin B. Flippo ,”HRM is the planning, organising, directing, and controlling of the
procurement,development,compensation,integration,maintenance,and separation of human resources to
the end that individual ,organisational, and social objectives are accomplished.”

Scope of Human Resource Management:


The scope of HRM is widening with every passing day. It covers but is not limited to HR planning,
hiring (recruitment and selection), training and development, payroll management, rewards and
recognitions, Industrial relations, grievance handling, legal procedures etc. In other words, we can say
that it’s about developing and managing harmonious relationships at workplace and striking a balance
between organizational goals and individual goals.

It relates to supervision, employee counselling, establishing harmonious relationships with employees,


education and training. Employee welfare is about determining employees’ real needs and fulfilling
them with active participation of both management and employees.

With dynamic changes in the world today, the scope of human resource management needs to be
widespread and needs to evolve to suit the organisation’s current needs. It won’t be wrong to say that
to win in the market, one has to win in the workplace, and the key to that is implementing a strong and
adaptable human resource management function.

1. HUMAN RESOURCES PLANNING

First and foremost in vast functions of HRM is an assessment of the current human resources of the
company. It means evaluating the current payroll and whether it is proportional to the work
requirement. This gives an idea about whether roles are missing in the organization or whether they are
excess than required. This whole process can also be called human resource planning.

2. REVIEWING JOBS IN THE ORGANIZATION

Getting a comprehensive detail about each title in the company and what profile will be needed to
fulfil a vacant job title comes under human resource management. This helps in setting out the base for
finding and selecting the right candidates for the company. Job analysis needs to be done very
carefully, taking into consideration the financial budget of the company.

3. INTERVIEWING AND SELECTION

The next step in HR scope is the selection of the right candidate. The right candidate would be the one
who, apart from his academic qualification, fits the culture of the company as well. One of the
activities of HRM is setting out the requirements for a particular job title. Deciding how many steps
the interview selection process would have also come under the scope and functions of HRM.

4. INTRODUCTION AND ORIENTATION

After the candidate is selected, he is introduced to its work culture, ethics, and environment. He is
oriented with the team he will be working with and the supervising manager. This helps in building the
comfort level of the new employee. The objective of the whole induction process is to acquaint the
employee with organizational values. It is an informal process.

5. REMUNERATION AND BENEFITS

Discussing the base salary and other perks to which an employee is entitled is a part of the scope of
human resource management. The human resource manager’s role is to clearly describe all the
benefits, including medical, travel, vacation leaves, etc. All these perks help in achieving a superior
work efficiency environment.

6. EMPLOYEE’S GROWTH PROSPECTS

The better the growth opportunities a company gives, the more the loyalty of the employees. The
nature and scope of HRM comprise how to keep the employee motivated and gain their loyalty. It’s
the HR who has all information about employees’ performance and who is better than him to review
his past performance and discuss future growth opportunities with him. A performance appraisal,
linked with incentives and increments, motivates the employees to achieve more and more targets if
done from time to time.

7. TRAINING ON THE JOB

Human resource management is alternatively known as the employee-oriented function. Its job is to
provide different learning programs to its employees continuously. One of the main activities of HRM
involves the development of his employees. Every organisation’s success depends on how up-to-date
an employee is with new ways of doing the job. These training programs’ goal is to enhance and build
the employee’s skills as per skills from around the world.

8. EMPLOYEE SATISFACTION

The health, Wealth, and prosperity of employees all are the responsibility of HR. Building a healthy
work environment and motivating the employees at each step also comes under the scope of human
resource management. This includes non-monetary amenities like medical or a canteen or other
recreational areas. A safe and secure work environment plays a huge role in the efficiency of
employees.

9. EMPLOYEE’S GRIEVANCE REDRESSAL SYSTEM

Human resource managers should employ a mechanism to address any grievances of employees in a
secure environment. This helps in building the trust of employees in the long run. Feeling their voices
are heard as well gives the employee a different level of satisfaction. Ensuring this process is carried
out securely and confidentially is one of the crucial jobs of HRM.
10. LABOUR AND TRADE UNIONS

Building strong relations in the industry is one of the key attributes to the success of any organization.
The wide scope of human resource management also involves building and maintaining healthy, strong
relations with different trade unions for the company’s smooth functioning.

Nature of HRM:
The nature of HRM has been highlighted in its following features:

1. UNIVERSAL IN NATURE

HRM practises are prevalent in each and every organisation whether it is public or private, government
and non-government, educational or corporate, i.e., in almost every area. Its existence is not only
limited to the personal functions; rather it is pervasive at all the functional areas, i.e., marketing,
finance, production, etc.

2. ACTION-ORIENTED

The focus of HRM is on action rather than on keeping records, written procedures or rules. The issues
of employees at the workplace are resolved with the help of rational policies.

3. FOCUSED ON PEOPLE DIMENSION

HRM is basically focused on developing people work both at individual and group level. It seeks to
correlate the capabilities of employees with the requirement of the job. It constantly tries to motivate
people for better performance and higher productivity

4. GROWTH-ORIENTED

The main concern of HRM is to develop the capabilities of the employees and maintain the reward
system according to their expectations. The reward system should constantly motivate the employees
to achieve the standard performance. Training is also offered to employees so as to discover and
develop their potential. Job rotation is also used to analyse the overall performance of the employee.

5. CORDINAL INTEGRATION

The function of developing and restructuring harmonious relations among human resources in the
organisation is performed by HRM. It coordinates and controls the human resources in the
organisation in such a manner so as to obtain maximum results.

6. CHALLENGING FUNCTION

People are complex and dynamic in nature. Hence, management of HR in the organisation demands
very close supervision of the employees.it is very critical task to control and coordinate employees
because of the human factor.HR manager needs to be very careful while controlling and dealing with
them, without hurting their sentiments.

7. SUPPLEMENTARY SERVICE
HR also plays a supportive role by assisting and advising operational/functional managers. As
specialist advisors, they supervise and guide other managers to achieve their personnel tasks in a more
effective manner.

8. MULTI DISCIPLINARY FUNCTION

HRM is crucial to an organisation and so is the constitution of its concept. It derives ideas, concepts,
practices and principles from various soft disciplines such as sociology, anthropology, economics,
psychology, etc. Understanding of these disciplines is essential because like these disciplines HRM
also relates and deals with human beings.

9. ONGOING PROCESS

The function of HRM cannot be restricted to a particular time and date. It is present to a particular time
and date. It is present in every department. Therefore, it is continuous in nature and is practised every
second, hour, day and year in the organisation.

Significance of HRM:
Human Resource Management becomes significant for business organization due to the
following reasons.

Objective:-

Human Resource Management helps a company to achieve its objective from time to time by creating
a positive attitude among workers. Reducing wastage and making maximum use of resources etc.

Facilitates professional growth:-

Due to proper Human Resource policies employees are trained well and this makes them ready for
future promotions. Their talent can be utilized not only in the company in which they are currently
working but also in other companies which the employees may join in the future.

Better relations between union and management:-

Healthy Human Resource Management practices can help the organization to maintain co-ordinal
relationship with the unions. Union members start realizing that the company is also interested in the
workers and will not go against them therefore chances of going on strike are greatly reduced.

Helps an individual to work in a team/group:-

Effective Human Resource practices teach individuals team work and adjustment. The individuals are
now very comfortable while working in team thus team work improves.

Identifies person for the future:-


Since employees are constantly trained, they are ready to meet the job requirements. The company is
also able to identify potential employees who can be promoted in the future for the top level jobs. Thus
one of the advantages of HRM is preparing people for the future.

Allocating the jobs to the right person:-

If proper recruitment and selection methods are followed, the company will be able to select the right
people for the right job. When this happens the number of people leaving the job will reduce as the
will be satisfied with their job leading to decrease in labour turnover.

Improves the economy:-

Effective Human Resource practices lead to higher profits and better performance by companies due
to this the company achieves a chance to enter into new business and start new ventured thus industrial
development increases and the economy improves.

The importance of HRM at various levels is discussed below:

1. Social Level:

Proper management of personnel’s enhances their dignity by satisfying their social needs.

This is done by taking following steps:

(i) Forming a balance between the jobs available and the job seekers, according to the qualifications
and needs of the organisational criteria.

(ii) Giving the organisation suitable and the most productive employment, which might bring to them
psychological satisfaction.

(iii) Utilising maximum resources in an effective manner and paying the employee a reasonable
compensation in proportion to the contribution that has been made by him.

(iv) Reducing waste or improper use of human resources, through conservation of their normal energy
and health.

(v) Assisting people to take their own decisions that are in their interests.

2. Professional Level:

By crediting healthy working environment, teamwork in the employees is promoted.

This is done by taking the following steps:

(i) Forming the dignity of the employees as a ‘human-being’.

(ii) Giving maximum opportunities to the development of individual.


(iii) Giving healthy relationship between different workgroups so that the work may be effectively
performed.

(iv)Enhancing the employee’s working skill and capacity.

(v) Rectifying the errors of wrong postings and proper re-allocation work.

3. Corporate Level:

HRM is of great use in helping business organisations to attain its goals and objectives more
efficiently and effectively in the following ways:

(i) By ensuring that business organisation has a team of dedicated, competent employees.

(ii) By utilizing all available human resources.

(iii) By attracting as well as retaining requisite talent through the following effective HR planning,
recruitment, selection, placement, orientation, compensation, and promotion policies.

(iv) By developing a requisite skills and correct attitude amongst the employees through the proper
training of employee, development, performance appraisal and other schemes.

(v) By effectively securing the willing cooperation of employees through motivation, grievance
handling and so on.

4. National Level:

HRM plays a very vital role in the development of nation in following ways:

(i) Judious utilisation of natural, physical and financial resources of nation requires an efficient and
committed workforce.

(ii) Economic development of nation is dependent upon the skills, attitudes, and values of its human
resource.

(iii) It aids to accelerate the process of economic growth.

(iv) It assists to help in improving the standard of living and better employment.
Recent trends in HRM:
The trends in HRM can be studied under management trends, demographic trends, the following
heads:

A. Management Trends

1. Work Team: Work teams have been of increasing interest to managers in a number of leading
companies, such as Procter & Gamble, Eli Lilley and Motorola. These include improved decision
making, improved performance, improved quality and increased flexibility afforded by the ease with
which they can be created and disbanded. The use of teams may also lead to reduce labour costs, lower
employee turnover, greater service efficiency, facilitation of change resulting from reduced individual
threat and shorter product development cycle.

2. Virtual Team: Virtual teams have members who work closely together even though they are based
at different locations, including different locations, including different countries, and may even be
indifferent time zones. They typically have members from different functions and work across
organisational boundaries as well. Advances in telecommunications, such as the internet, e-mail, cell
phones, and video conferencing, have made virtual teams a possibility. Team members communicate
frequently with each other using e-mail, fax and telephone and the team leader also makes frequent
trips between the different locations.

A team at a Johnson & Johnson unit provides a good example of a virtual team. This team has been
assigned the task of developing a new surgical product and bringing it into production.

3. Open – Book Management: The practice of sharing financial and performance information is
often referred to as Open Book Management. One of his most critical changes in implementing open-
book-management was to help employees think of the firm as a business instead of an organisation that
reconditioned diesel engines. Typically firms that practice open-book-management develop simplified
methods for reporting their financials to employer and train them to interpret various measures of
performance.

4. Management of Diversity: managers must be prepared to deal with the challenges associated with
such demographic changes. Effective management of diversity can increase an organisations’
productivity through several avenues, one of which is increased problem-solving ability.

6. Reengineering : Reengineering, which is also called process innovation, core process redesign, and
business process reengineering, has been practiced since the late 1980s, often by companies facing
intense competitive pressures. Essentially, reengineering is directed at achieving large cost savings by
eliminating unneeded activities and consolidating work.

Another example involves a bank. In order to reduce its operating costs The Banca di America and di
Italia (BAI) reengineered its retail banking operations with the goal of becoming a paperless bank.
After reengineering activities involved in depositing checks, the numbers declined from 64 to 25.

7. Management of Professionals :

The availability of managers who can manage the work, the professionals cannot be taken for granted.
The difficulties are well-known and there has been a long standing controversy over whether, such
managers should be the members of the relevant profession themselves or lawpersons. The problems
to plan for the development of managers who can be effective in such things are apparent.

B. Demographic Trends

Major changes include an ageing workforce, the baby born age glut, the baby bust labour shortage,
increased racial diversity, and greater feminization of the workforce.
The developments, particularly the variations in growth across different age cohorts, will have major
implications for the career potential of individual workers. Planning will be necessary to avoid age
bulges, age gaps, and surpluses in job categories or job families.

1.Ageing Workforce :

Some of the implications of ageing are that the workforce will be more productive. However, an older
workforce may not adapt as quickly to a dynamic economy. Greater costs will also request from
greater pension contributions that is likely to be associated with an ageing workforce. One implication
of this trend is that as the workforce ages there should be correspondingly greater health care costs.
Huge increases in health care costs have already occurred. Company’s age distributions have already
begun to affect their production costs of ability to compete.

2.Labour Shortages :

At the beginning of the twenty-first century, firms faced the highest US labour market in 30 years. In
some states, the unemployment rates for adults fell below three per cent. The combination of an
exceptionally strong economy and demographic trends produced the labour shortages that had been
predicted solely from demographic trends.

The internet has created many of the jobs for highly skilled workers and has helped the labour market
work more efficiently by providing information about jobs and applicants and facilitating match-ups.
Internet recruiting has become so important that trade journals publish ratings of the top job sites such
as Naukri(dot)com or Jobs(dot)com.

3. Greater Racial Diversity :

organisations will need to be proactive in helping to create a work environment in which the creativity
and innovations of diversity will flourish.

4. Changing occupational Distribution for Women:

Women have advanced most rapidly in cutting-edge industries because the need for pure intellectual
horsepower overcomes inclinations for exclusion on the basis of gender. In order to attract talented
women, many employers have work arrangements that better accommodates childbirth and, for women
as well as man, the care of young children. Such approaches include part-time schedules, flexitime,
flexi scheduling, and allowing employees to work part of the time at home.

5. Dual-Career Couples:
The number of couples having two-wage earners has increased rapidly, having passed the two-thirds
point more than a decade age. In order to accommodate such families, many employers offer support
services such as “sick child” care programmes and day care — such services are believed to produce
reductions in absenteeism, lower turnover, recruiting advantages, and a positive impact on
productivity.
In order to help such dual-career couples, as well as single parents, employers now provide several
forms of support. For example, referral services for child care are provided by one of the large public
accounting firms as well as IBM.

C. Trends in the Utilisation of Human Resources

Internet, e-mail, fax machines, cable modems, digital subscriber lines, personal computers, other forms
of telecommunications, and express mail make up of forces that have been able to relocate
geographically while continuing to perform the same work for their employers via telecommunications
technology.

1. Telecommunication:

Commuting or telecommunicating does not necessarily involve geographic communication but simply
involves working at home at least part of the time. Organisation benefits include shifting advantages,
lower costs in using part-time workers, increased ability of skilled professionals. There are also
concerns about the security of confidential or competitive information when it is transmitted over
telephone lines from to and from the telecommuter. Telecommuters also need remote office and
information technology support. In addition, some managers find it difficult to trust their employees to
work at home without their supervision.

2.Relocation of Work :

Telecommunication advances have allowed information workers to migrate from cities to rural areas
and small towns. These workers have been attracted to the heartland because there is less crime, a
lower cost of living, and quality of life benefits. Workers who are working on this relocation include
owners of home-based businesses, writers, artists, stock traders, composers, software developers and
engineers.
Companies are also relocating their operations. In information systems and data processing, companies
are relocating their facilities to areas where there are favourable costs.
Recently, manufacturing companies have been relocating out of their operating areas because of the
high costs of land and labour as well as regulative environment.

3. Growing Use of Temporary and Contingent Workers :

Temporary employees are often used to provide a buffer of protection for the jobs of the core of
permanent employees. Further, the use of such workers is increasing and there is likely to be additional
unbundling in the future. In contrast to core employees, contingent workers have short-term affiliations
with employers.
Examples include temporaries, subcontracted workers, part time workers, consultants, life of the
project workers and leased employees. The second largest category is industrial help workers such as
labourers, equipment cleaners, helpers and handlers. Temporary workers are even being used in the
health care industry as registered nurses, practical nurses and X-ray technicians.
The nature of temporary jobs is changing as there is a shift toward the higher skill levels. Temporary
workers now include accountants, computer specialists, engineering personnel, financial executives,
and technical writers.

4. Employee Leasing:

Employee leasing is different from the use of temporary workers because there is no implication that
employers will be other than full time, long-term employees. Often, when an employer makes the
decision to lease employees, his or her employees then become employees of a leasing firm. The
leasing firm then supplies these same employees to the original employer.
As with the use of temporaries, there are some advantages with employees leasing. One primary reason
for leasing is that small employers can obtain more economical health insurance by virtue of the
leasing company’s larger numbers of employees and inclusion in order pooled rates. The use of the
leasing company also may not eliminate liability, as there may be a shared employment relationship.
Another disadvantage is that a number of leasing companies have failed, leaving the employers using
based employers liable for workers compensation.

6. Global Sourcing of Labour:

Innovative uses of labour on a global basis are evident. One example is a large Insurance Company in
which claims are processed in Ireland. The combination of a common language, an educated labour
force, a shortage of jobs, and relatively low wages more than this is an attractive option.
EVOLUTION OF HRM:

Experts of HRM in our country have tried to chronicle the growth of the subject only since the 1920s.
This was the period when state intervention to protect the interests of workers was felt necessary
because of the difficult conditions which followed the First World War, and the emergence of trade
unions. The Royal Commission (1931) recommended the appointment of labour-welfare officers to
deal with the selection of workers and to settle their grievances. The Factories Act, 1948, made
appointment of welfare officers compulsory in industrial establishments employing 500 or more
workers each.

During the 1960s, the personnel function began to expand beyond the welfare aspect, with labour
welfare, IR and personnel administration integrating into the emerging profession called personnel
management (PM).

By the 1970s, a shift in professional values was discernible. It shifted from a concern for welfare to a
focus on efficiency. In the 1980s, professionals began to talk about new technologies, HRM challenges
and HRD. The two professional bodies, IIPM and NILM, merged in 1980 to form the National
Institute of Personnel Management (NIPM).

In the 1990s, the emphasis shifted to human values and productivity through people. Reflecting this
trend, the American Society for Personnel Administration (ASPA) was renamed as the Society for
Human Resources Management (SHRM). Thus, beginning in the 1920s, the subject of people
management has grown into a matured profession. The journey continues. The profession might be
called HCM in the near future. Below table shows the evolution of HRM.

FUNCTIONS OF HRM:

Human Resource Department is an integral part of any organization. Also, the Human Resource Manager
(HRM) is a member of the management.
Managerial Functions:
The Human Resource Manager is a part of the organisational management. So he must perform the
basic managerial functions of planning, organising, directing and controlling in relation to his
department. These functions are briefly discussed below:

Planning:
To get things done through the subordinates, a manager must plan ahead. Planning is necessary
to determine the goals of the organisation and lay down policies and procedures to reach the
goals. Anticipating vacancies, planning job requirements, job descriptions and determination of
the sources of recruitment.

Organizing:
Once the human resource manager has established objectives and developed plans and programs to
reach them, he must design and develop organisation structure to carry out the various operations.

Directing:
The plans are to be pure into effect by people. But how smoothly the plans are implemented
depends on the motivation of people. The direction function of the personnel manager involves
encouraging people to work willingly and effectively for the goals of the enterprise.
In other words, the direction function is meant to guide and motivate the people to accomplish the
personnel programs. The personnel manager can motivate the employees in an organisation through
career planning, salary administration, ensuring employee morale, developing cordial relationships
and provision of safety requirements and welfare of employees.

Controlling:
Controlling is concerned with the regulation of activities in accordance with the plans, which in
turn have been formulated on the basis of the objectives of the organisation. Thus, controlling
completes the cycle and leads back to planning. It involves the observation and comparison of
results with the standards and correction of deviations that may occur.
Controlling helps the personnel manager to evaluate the control the performance of the personnel
department in terms of various operative functions. It involves performance appraisal, critical
examination of personnel records and statistics and personnel audit.

Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the human
resource or personnel department. These are concerned with employment, development,
compensation, integration and maintenance of personnel of the organisation.

Employment:

The first operative function of the human resource of personnel department is the employment of
proper kind and number of persons necessary to achieve the objectives of the organisation. This
involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower requirements both in
terms of number and quality of the personnel. Recruitment and selection cover the sources of
supply of labour and the devices designed to select the right type of people for various jobs.
Induction and placement of personnel for their better performance also come under the
employment or procurement function.

Development:

Training and development of personnel is a follow up of the employment function. It is a duty of


management to train each employee property to develop technical skills for the job for which he
has been employed and also to develop him for the higher jobs in the organisation. Proper
development of personnel is necessary to increase their skills in doing their jobs and in satisfying
their growth need.

For this purpose, the personnel departments will device appropriate training programs. There are
several on- the-job and off-the-job methods available for training purposes. A good training
program should include a mixture of both types of methods. It is important to point out that
personnel department arranges for training not only of new employees but also of old employees
to update their knowledge in the use of latest techniques.

Compensation:

This function is concerned with the determination of adequate and equitable remuneration of the
employees in the organisation of their contribution to the organisational goals. The personnel can
be compensated both in terms of monetary as well as non-monetary rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are their basic
needs, requirements of jobs, legal provisions regarding minimum wages, capacity of the
organisation to pay, wage level afforded by competitors etc. For fixing the wage levels, the
personnel department can make use of certain techniques like job evaluation and performance
appraisal.
Maintenance (Working Conditions and Welfare):

Merely appointment and training of people is not sufficient; they must be provided with good
working, conditions so that they may like their work and workplace and maintain their efficiency.
Working conditions certainly influence the motivation and morale of the employees.
These include measures taken for health, safety, and comfort of the workforce. The personnel
department also provides for various welfare services which relate to the physical and social well-
being of the employees. These may include provision of cafeteria, rest rooms, counseling, group
insurance, education for children of employees, recreational facilities, etc.

Motivation:

Employees work in the organisation for the satisfaction of their needs. In many of the cases, it is
found that they do not contribute towards the organisational goals as much as they can. This
happens because employees are not adequately motivated. The human resource manager helps the
various departmental managers to design a system of financial and non-financial rewards to
motivate the employees.

Personnel Records:

The human resource or personnel department maintains the records of the employees working in
the enterprise. It keeps full records of their training, achievements, transfer, promotion, etc. It also
preserves many other records relating to the behaviour of personnel like absenteeism and labour
turnover and the personnel programs and policies of the organisation.

Industrial Relations:

These days, the responsibility of maintaining good industrial relations is mainly discharged by
the human resource manager. The human resource manager can help in collective bargaining,
joint consultation and settlement of disputes, if the need arises. This is because of the fact that he
is in possession of full information relating to personnel and has the working knowledge of
various labour enactments.

The human resource manager can do a great deal in maintaining industrial peace in the
organisation as he is deeply associated with various committees on discipline, labour welfare,
safety, grievance, etc. He helps in laying down the grievance procedure to redress the grievances
of the employees. He also gives authentic information to the trade union leaders and conveys their
views on various labour problems to the top management.

Separation:

Since the first function of human resource management is to procure the employees, it is logical
that the last should be the separation and return of that person to society. Most people do not die
on the job. The organisation is responsible for meeting certain requirements of due process in
separation, as well as assuring that the returned person is in as good shape as possible. The
personnel manager has to ensure the release of retirement benefits to the retiring personnel in
time.

For example- Personal objectives is sought to be realized through functions like remuneration,
assessment

CHALLENGES OF HR MANAGERS:

1. Attracting Top Talent.


2. Embracing Change With An Open Mind.
3. Developing The Leaders of Tomorrow.
4. Building a Culture of Continuous Learning.
5. Building a Diverse Team.
6. Looking After Health & Safety.
7. Managing The Turnover Rates.
8. Globalization.
9. Compliance with Laws and Regulation.
10. Retaining Top Talent.

For Organization
1. Turnover.
2. Productivity.
3. Relationships With Customers.
4. Uncertainty About The Future.
5. Financial Management.
6. Monitoring Performance.
7. Regulation & Compliance.
8. Understanding Generation Z.
9. Technology.
10. Meeting Aspirations of Employees.

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