Introduction HRM- Meaning and definition Importance of HRM Functions of HRM Conclusion

Introduction
An organization is nothing without its HR.

What is management?

 Management is the process of efficiently getting activities completed with and through other people. The management process includes planning, organizing, staffing, directing and controlling activities that take place to accomplish objectives.

 Any definition of management has 4 Ms . any definition of management must include three common factors: Goals, limited resources and people. Management is the process of efficiently getting activities completed with and through other people.

What is Human Resource management ?

HRM is concerned with the people dimension in management. Getting and keeping good people is critical to the success of every organization, whether profit or nonprofit, public or private. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to high levels of performance and ensuring that they continue to maintain their commitment to the orgn is highly important.

 HRM refers to a set of programs, functions and activities designed & carried out in order to maximise both employee as well as organizational effectiveness. Activities include - Human resource planning, Job analysis, & design, selection and recruitment, training & development, performance appraisal,& job evaluation, employee & executive remuneration, motivation, welfare, safety & health, Industrial relations etc.

 The utilization and development of HR is not by any means an ancillary activity but a central element in the operation of a business. Thus, HRM is a process consisting of four functions- acquisition, development, motivation and maintenance- of human resources.

 Acquisition: procurement of people with necessary skills, knowledge & aptitude. It includes, job analysis, man power planning, recruitment, selection, placement, induction, & internal mobility. Development: process of improving, moulding, changing & developing the skills, knowledge, creative ability, aptitude, attitude, values, commitment based on the present & future requirements. Includes Training, executive devt, career planning, HRD.

 Motivation & compensation: process that inspires people to give their best to the orgn thru the use of intrinsic (achievement, recognition , responsibility) & extrinsic (job design, work scheduling, appraisal based incentives) rewards. Maintenance: aims at protecting & preserving the physical & psychological well being of employees thru various welfare measures. Includes health & safety, employee welfare, social security measures(workmens compensation in accidents, Maternity benefits, dependant benefits, retirement benefits like PF, pension & gratuity etc.

 Organizations have now adopted the Human resource approach which treats the organizational goals and employee needs as being mutual and compatible and which can be pursued in unison Employees are asset to organization Policies, programs and practices should cater to the needs of employees and should help them in their work and also in their personal development.

 It is necessary to create and maintain a conducive work environment, to encourage the employees to develop and harness their knowledge and skills for their good and the good of the organization. HR policies and practices should be in alignment with the goal of balancing individual and organizational needs.

Importance of HRM
1.Good HR practices can help in attracting and retaining the best people in the organization. 2.Good recruitment and selection activities identify the best people for available jobs and make sure that they are placed in suitable positions 3. Performance appraisal and training develop individuals who need skills, knowledge and attitudes different from those they currently possess. 4.Good HR practices can also motivate organizational members to do outstanding work.

HRM Process
5 basic activities
1. 2. 3. 4. 5. Human Resource planning Staffing Training and development Performance appraisal and Compensation

Human Resource Planning

It is the process of determining future human resource needs relative to an organizations strategic plan and devising the steps necessary to meet those needs.
Estimating size and composition of future workforce Helping organization acquire the right number And right kind of people when they are needed

 It can be logically divided into 3 parts:

1. Forecasting manpower demand
1. It involves assessing how many people will be required in the organization in the foreseeable future and what abilities they are required to posses in order to enable the organization to remain in operation Human resources are subject to subtle erosion. Management replace them from internal( skills inventory, replacement planning and succession planning) and external (advertisements, educational institutions, employment agencies, voluntary applicants and referrals by employees) sources of supply

2. Forecasting manpower supply

1.

3. Human resource actions

1. After estimating demand and supply, managers to take steps to balance the two. The Matching of projected human resource needs with projected availability of hr provides the basis for undertaking various actions to ensure that supply will equal demand at the time specified.

Staffing
It involves a set of activities aimed at attracting and selecting individuals for positions that will facilitate the achievement of organizational goals
Basic steps are
Recruitment
Involves finding and attempting to attract job candidates who are suitable Job analysis, job description, and job specification are important tools

Selection
To find qualified people Preliminary screening, application blank, selectiontest, comprehensive interview etc.

Training and Development

Training is defined as the planned effort to improve the performance of the employee in his area of work.
Efforts to increase employee skills in their job Given to new recruits and existing manpower and at all levels.

Development programs are designed to educate employees beyond the requirements of their present position, to prepare them for promotions, to fit into the orgns

Performance Appraisal
Involves defining the expectations for employee performance, measuring , evaluating and recording employee performance against these expectations and providing the employee with feedback regarding their performance.
Major purpose- to influence employee performance and development in a positive way As a control technique it requires standards, information and corrective action.

 It is the formal evaluation of an individuals job performance. It involves giving feedback to the individual and includes constructive solutions for further improvement. The major purpose of PA is to influence in a positive way, both employee performance and organizational development.

Objectives of Appraisals
Performance feedback Performance improvement Identification of potential Promotion decisions Compensation administration Workforce planning Validation of selection procedures.

The Appraisal Process

Actual performance

Inputs
Setting Verifiable Objectives that become standards

Outputs
Measuring performance against standards 1 Formal comprehensive review( annually) 2. Progress or periodic reviews(Quarterly, monthly) Continous monitoring( daily with emphasis on self control.

Corrective actions for undesirable deviation from standards

Performance Rating Methods

Can be either Behavior oriented or Result oriented
Result oriented appraisal implies the evaluation of an individual based on actual performance Behavior oriented appraisal focuses on employee behavior
With behavior oriented appraisals 2 important means of assessment are Graphic Rating Scales Behaviorally Anchored Rating Scales ( BARS)

Graphic Rating Scales

It requires the rater to rate employees on factors like quality and quantity of work, job knowledge, dependability, punctuality, attendance etc. It includes numerical as well as written descriptions.

Behaviorally Anchored Rating Scales ( BARS)

It concentrates on the behavioral traits demonstrated by employees instead of actual performance.
3 steps in implementing BARS
1. Determination of relevant job dimensions by the manager and the employee 2. Identification of behavioral anchors by the manager and the employee for job dimension 3. Determination of the scale values to be used and grouping of anchors for each scale value based on consensus.

Compensation
Consists of wages paid directly to the employees for the amount of time worked or the number of units produced.
Monetary and non-monetary
Wages include basic pay, merit increases, or onuses Benefits protection plans, services, pay for time not worked & income supplements

A sound compensation program enhances the orgns ability to attract and retain employees

Objectives
Societal Objectives

Organizational Objectives
Functional Objectives

Personnel Personal Objectives Objectives

Societal Objectives

Manage HR in an ethical & socially responsible manner Ensure compliance with legal & ethical standards

Organizational Objectives
Bring organizational effectiveness

Means to assist the organization with its primary objectives

Functional Objectives
Level of service must be tailored to fit the organization It should employ the skills & abilities of the workforce efficiently It should provide well trained & well motivated employees

Personal Objectives
Provide job satisfaction Meet the self actualization needs Stimulate every employee to achieve his potential Maintain a quality of work life Communicate HR polices to get opinions, suggestions, etc

Functions
In order to realize the objectives, HRM should perform certain functions There is correlation b/w objectives and functions Some functions help realize specific objectives

HRM Objectives and function

HRM Objectives
Societal Objectives

Supporting Functions
Legal compliance Benefits Union- management relations Human resource planning Employee relations Selection Training and Development Appraisal Placement Assessment Appraisal Placement Assessment Training and development Appraisal Placement Compensation Assessment

Organizational Objectives

Functional Objectives

Personal Objectives