HUMAN RESOURCE MANAGEMENT ( H R M )

Definition 1 – Integration
“HRM is a series of integrated decisions that form the employment
relationships; their quality contributes to the ability of the organizations and the
employees to achieve their objectives.”
Definition 2 – Influencing
“HRM is concerned with the people dimensions in management. Since every
organization is made up of people, acquiring their services, developing their
skills, motivating them to higher levels of performance and ensuring that they
continue to maintain their commitment to the organization are essential to
achieving organizational objectives. This is true, regardless of the type of the
organization – government, business, education, health, recreational, or social
action.”
Definition 3 – Applicability
“HRM planning, organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance and separation of human
resources to the end that individual, organizational and social objectives are
accomplished.”
MEANING OF HRM: -
HRM is management function that helps managers to recruit, select, train and
develop members for an organization. Obviously HRM is concerned with the
people’s dimensions in organizations. HRM refers to set of programs, functions,
and activities designed and carried out
Core elements of HRM
 People: Organizations mean people. It is the people who staff and manage
organizations.
 Management: HRM involves application of management functions and
principles for acquisitioning, developing, maintaining and remunerating
employees in organizations.
 Integration & Consistency: Decisions regarding people must be
integrated and consistent.
 Influence: Decisions must influence the effectiveness of organization
resulting into betterment of services to customers in the form of high quality
products supplied at reasonable cost.
 Applicability: HRM principles are applicable to business as well as non-
business organizations too, such as education, health, recreation and the like.
OBJECTIVES OF HRM: -
1. Societal Objectives: To be ethically and socially responsible to the needs
and challenges of the society while minimizing the negative impact of such
demands upon the organization.
2. Organizational Objectives: To recognize the role of HRM in bringing
about organizational effectiveness. HRM is only means to achieve to assist the
organization with its primary objectives.
3. Functional Objectives: To maintain department’s contribution and level
of services at a level appropriate to the organization’s needs.
4. Personal Objectives: To assist employees in achieving their personal
goals, at least in so far as these goals enhance the individual’s contribution to
the organization. This is necessary to maintain employee performance and
satisfaction for the purpose of maintaining, retaining and motivating the
employees in the organization.
SCOPE OF HRM: -
From Entry to the Exit of an employee in the organization
Scope of HRM can be described based on the following activities of HRM.
Based on these activities we can summarize the scope of HRM into 7 different
categories as mentioned below after the activities. Lets check out both of them.
HRM Activities –
1. HR Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10.Motivation
11.Communication
12.Welfare
13.Safety & Health
14.Industrial Relations
7 Categories of Scope of HRM
1. Introduction to HRM
2. Employee Hiring
3. Employee and Executive Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM
ROLE OF HRM
1. Advisory Role: HRM advises management on the solutions to any problems
affecting people, personnel policies and procedures.
a. Personnel Policies: Organization Structure, Social Responsibility,
Employment Terms & Conditions, Compensation, Career & Promotion,
Training & Development and Industrial Relations.
b. Personnel Procedures: Relating to manpower planning procedures,
recruitment and selection procedures, and employment procedures, training
procedures, management development procedures, performance appraisal
procedures, compensation procedures, industrial relations procedures and health
and safety procedures.
2. Functional Role: The personnel function interprets and helps to
communicate personnel policies. It provides guidance to managers, which will
ensure that agreed policies are implemented.
3. Service Role: Personnel function provides services that need to be carried
out by full time specialists. These services constitute the main activities carried
out by personnel departments and involve the implementation of the policies
and procedures described above.
Role of HR Managers (Today)
1. Humanitarian Role: Reminding moral and ethical obligations to employees
2. Counselor: Consultations to employees about marital, health, mental,
physical and career problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts
between individuals and groups and management.
4. Spokesman: To represent of the company because he has better overall
picture of his company’s operations.
5. Problem Solver: Solving problems of overall human resource management
and long-term organizational planning.
6. Change Agent: Introducing and implementing institutional changes and
installing organizational development programs
7. Management of Manpower Resources: Broadly concerned with leadership
both in the group and individual relationships and labor-management relations.
Role of HR Managers (Future)
1. Protection and enhancement of human and non-human resources
2. Finding the best way of using people to accomplish organizational goals
3. Improve organizational performance
4. Integration of techniques of information technology with the human
resources
5. Utilizing behavioral scientists in the best way for his people
6. Meeting challenges of increasing organizational effectiveness
7. Managing diverse workforce
FUNCTIONS OF HRM ALONG WITH OBJECTIVES
HRM Objectives Supporting HRM Functions
Social Objectives (3) Legal Compliance
Benefits
Union Management Relations
Organizational Objectives (7) Human Resource Planning
Employee Relations
Recruitment & Selection
Training & Development
Performance Appraisals
 Placement & Orientation
Employee Assessment
Functional Objectives (3) Performance Appraisals
Placement & Orientation
Employee Assessment
Personal Objectives (5) Training & Development
Performance Appraisals
Placement & Orientation
Compensation
Employee Assessment

Managerial Functions of HRM

1. Planning: Plan and research about wage trends, labor market conditions,
union demands and other personnel benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower and material resources by creating
authorities and responsibilities for the achievement of organizational goals and
objectives.
3. Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and
motivation of employees to follow the path laid-down.
5. Controlling: Regulating personnel activities and policies according to plans.
Observations and comparisons of deviations
Operational Functions of HRM
1. Procurement: Planning, Recruitment and Selection, Induction and
Placement
2. Development: Training, Development, Career planning and counseling.
3. Compensation: Wage and Salary determination and administration
4. Integration: Integration of human resources with organization.
5. Maintenance: Sustaining and improving working conditions, retentions,
employee communication
6. Separations: Managing separations caused by resignations, terminations,
lay offs, death, medical sickness etc.
CHALLENGES OF HRM IN INDIAN ECONOMY or
CHALLENGES OF MODERN MANAGEMENT
1. Globalization: - Growing internationalization of business has its impact
on HRM in terms of problems of unfamiliar laws, languages, practices,
competitions, attitudes, management styles, work ethics and more. HR
managers have a challenge to deal with more functions, more heterogeneous
functions and more involvement in employee’s personal life.
2. Corporate Re-organizations: - Reorganization relates to mergers
and acquisitions, joint ventures, take over, internal restructuring of
organizations. In these situations, it is difficult to imagine circumstances
that pose a greater challenge for HRM than reorganizations itself. It is a
challenge to manage employees’ anxiety, uncertainties, insecurities and
fears during these dynamic trends.
3. New Organizational forms: - The basic challenge to HRM comes
from the changing character of competitions. The competition is not
between individual firms but between constellations of firm. Major
companies are operating through a complex web of strategic alliances,
forgings with local suppliers, etc. These relationships give birth to
completely new forms of organizational structure, which highly depend
upon a regular exchange of people and information. The challenge for
HRM is to cope with the implications of these newly networked relations
more and more, in place of more comfortable hierarchical relationships
that existed within the organizations for ages in the past.
4. Changing Demographics of Workforce: - Changes in workforce are
largely reflected by dual career couples, large chunk of young blood between
age old superannuating employees, working mothers, more educated and aware
workers etc. These dynamic workforces have their own implications for HR
managers and from HRM point of view is a true challenge to handle.
5. Changed employee expectations: - With the changes in workforce
demographics, employee expectations and attitudes have also transformed.
Traditional allurements like job security, house, and remunerations are not much
attractive today, rather employees are demanding empowerment and equality
with management. Hence it is a challenge for HRM to redesign the profile of
workers, and discover new methods of hiring, training, remunerating and
motivating employees.
6. New Industrial Relations Approach: - In today’s dynamic world,
even unions have understood that strikes and militancy have lost their relevance
and unions are greatly affected by it. The trade union membership has fallen
drastically worldwide and the future of labor movement is in danger. The
challenge before HRM is to adopt a proactive industrial relations approach
which should enable HR specialist to look into challenges unfolding in the
future and to be prepared to convert them into opportunities.
7. Renewed People Focus: - The need of today’s world and business is the
people’s approach. The structure, strategy, systems approach which worked in
post war era is no more relevant in today’s economic environment which is
characterized by over capacities and intense competition. The challenge of HR
manager is to focus on people and make them justifiable and sustainable.
8. Managing the Managers: - Managers are unique tribe in any society,
they believe they are class apart. They demand decision-making, bossism, and
operational freedom. However in the post liberalization era, freedom given to
managers is grossly misused to get rid of talented and hard working juniors. The
challenge of HRM is how to manage this tribe? How to make them realize that
the freedom given to them is to enable them make quick decisions in the interest
of the organization and not to resort to witch-hunting.
9. Weaker Society interests: - Another challenge for HRM is to protect
the interest of weaker sections of society. The dramatic increase of women
workers, minorities and other backward communities in the workforce has
resulted in the need for organizations to reexamine their policies, practices and
values. In the name of global competition, productivity and quality the interests
of the society around should not be sacrificed. It is a challenge of today’s HR
managers to see that these weaker sections are neither denied their rightful jobs
nor are discriminated against while in service.
10.Contribution to the success of organizations: - The biggest
challenge to an HR manager is to make all employees contribute to the success
of the organization in an ethical and socially responsible way. Because society’s
well being to a large extent depends on its organizations.

HRM Models
The defining features of HRM is popularly known as models. These
models provide analytical framework for studying HRM. They
provide characterization of HRM that establishes variables and
relationship to be researched. Four most common models are :

1. The Fombrun Model

2. The Harvard Model
3. The Guest Model and
4. The Warwick Model
All these models serve the following purposes:

 They provide an analytical framework for studying HRM for example,

situational factors, stakeholders, strategic choice levels, competence etc.
 They validate certain HRM practices and provide distinctiveness to HRM
practices.
 They provide a characterization of HRM that establishes variables and
relationship to be researched.
 They help to discover and understand the world for explaining the nature
and significance of key HR practices.
1. The Fombrun Model
This is the model of HRM. It emphasizes four functions of management
and their interrelatedness Selection, Appraisal, Development and
Rewards. This model is incomplete as it focuses on only four functions of
HRM and ignore all other environmental and contingency factors. But,
this model is simple and can serve as a heuristic framework for
explaining the nature and significance of HR activities.

2. The Harvard Model

This model consists six critical components of HRM namely stake
holders interests, situational factors, HRM policy choices, HR out
comes, long term consequences and a feedback loop through.

3. The Guest Model

This model was developed by David Guest in 1997. This model emphasizes
on the assumption that HR manager has specific strategies to begin with,
which demand certain practices and when executed will result in outcomes.
These out comes include behavioural performance related and financial
rewards. The model emphasizes the logical sequence of six components : HR
strategy, HR practices, HR outcomes, Behavioural outcomes, Performance
results and financial consequences.
 4. The Warwick Model
This model was developed by two researchers, Hendry and Pettigrew of
University of Warwick (hence the name Warwick model). Like other human
resource management models, the Warwick proposition centers around five
elements-

 Outer context (macro environmental forces)

 Inner context (firm specific or micro environmental forces)
 Business strategy content
 HRM context
 HRM content
The strength of this model is that it identifies and classifies important
environment influences on HRM. This model takes cognizance of business
strategy and HR practices, the external and internal content, in which these
activities take place and process by which such changes take place including
transactions between changes in both external content and internal content.