File On HRM

HUMAN RESOURCE MANAGEMENT
Definition of Human Resource Management (HRM)

Human Resource Management is the utilization of human resources to achieve
organisational objectives.
Human Resource Management is designing management systems to ensure that
human talent is used effectively and efficiently to accomplish organisational goals.
Nature of HRM
Human Resource Management is a process of bringing people and organizations
together so that the goals of each are met. HR is multidisciplinary: It applies the
disciplines of Economics, Psychology, Sociology and Law .The following
constitute the core of HRM:
1. Organisations consist of the people who staff and manage organisations.
2. HRM involves the application of management functions and principles
3. Decisions relating to employees must be integrated.
4. Decisions made must influence the effectiveness of an organisation.
5. HRM functions are not confined to business establishments only. THE
NATURE OF HRM
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the organization.
OBJECTIVES
Written by Steve Owuor.
• To achieve and maintain high morale among employees.

• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To enhance employee's capabilities to perform the present job.
• To equip the employees with precision and clarity in transaction of business.
• To inculcate the sense of team spirit, team work and inter-team collaboration.
BELIEF OF HUMAN RESOURCE MANAGEMENT
The Human Resource Management philosophy is based on the following beliefs:
• Human resource is the most important asset in the
organization and can be
developed and increased to an unlimited extent.
• A healthy climate with values of openness, enthusiasm, trust, mutuality and
collaboration is essential for developing human resource.
• HRM can be planned and monitored in ways that are beneficial both to the
individuals and the organization.
• Employees feel committed to their work and the organization, if the organization
perpetuates a feeling of belongingness.
• Employees feel highly motivated if the organization provides for satisfaction of
their basic and higher level needs.
PRINCIPLES OF HUMAN RESOURCE MANAGEMENT

-Principle is a fundamental truth established by research, investigation and
analysis.
Human Resource Management principles,
1. Principle of individual development – to offer full and equal opportunities to
every employee to realise his/her full potential.
2. Principle of scientific selection – to select the right person for the right job.
3. Principle of free flow of communication- to keep all channels of
communication open & encourage upward, downward, horizontal, formal &
informal communication.
Written by Steve Owuor.
4. Principle of participation – to associate employee representatives at every

level of decision making.
5. Principle of fair remuneration- to pay fair & equitable wages & salaries
commiserating with jobs.
6. Principle of incentive – to recognise and reward good performance.
7. Principle of dignity of labour – to treat every job holder with dignity and
respect.
8. Principle of labour management co-operation – to promote cordial industrial
relations.
9. Principle of team spirit – to promote co-operation & team spirit among
employees.
10. Principle of contribution to national prosperity – to provide a higher
purpose of work to all employees and to contribute to national prosperity.
HUMAN RESOURCE POLICIES

-A policy is a plan of action. It is a statement of intention committing the
management to a general course of action.
Examples of specific HR policies:
1. Policy of hiring people with due respect to factors like reservation, sex,
marital status etc.
2. Policy on terms & conditions of employment- compensation policy &
methods, hours of work, overtime, promotion, transfer, lay-off.
3. Policy with regard to medical assistance-sickness benefits, company medical
benefits.
4. Policy regarding training & development – need for, methods, frequency of
training and development.
5. Policy regarding housing, transport, uniform & allowances.
Formulating Policies
There are five principle sources for determining the content and meaning of
policies.
i) Past practice in the organisation
ii) Prevailing practice in rival companies
iii) Attitudes & philosophy of founders of the company as also its directors
& top management.
iv) Attitudes & philosophy of middle & lower management.
v) Knowledge and experience gained from handling countless personal
problems on a day-to-day.
-Policies must be stable- to create a climate of security & remove uncertainty from
the minds of employees.
FUNCTIONS OF HRM
1. Human Resource Planning, Recruitment and Selection:
Human resource planning: The focus of HR planning is to ensure the organisation

has the right number of human resources, with right capabilities, at the right times
and in the right places.
Recruitment and Selection: Recruitment involves identifying the sources of

manpower and stimulating them to apply for jobs in the organizations. Selection is
the process of choosing the best out of those recruited.
2. Human Resource Training and Development:
This gives employees the skills and knowledge to perform their jobs effectively. In
addition to providing training for new or inexperienced employees, organisations
often provide training programmes for experienced employees whose jobs are
undergoing change.
3. Compensation and Benefits
Compensation: includes payment in the form of hourly wages or annual salaries.
Compensation affects staffing in that people are generally attracted to
organisations offering a higher level of pay in exchange for the work performed.
Benefits: includes insurance, pensions, vacation, sick days.
Benefits are another form of compensation to employees other than direct pay for
work performed.
4. Safety and Health
Not only must an organization see to it that employees' rights are not violated, but it
must also provide a safe and healthy working environment
5. Employee and Labour Relations:
The term “labour relations” refers to interaction with employees who are
represented by a trade union. Unions are organisation of employees who join
together to obtain more voice in decisions affecting wages, benefits, working
conditions, and other aspects of employment. With regard to labour relations, the
personnel responsibility primarily involves negotiating with the unions regarding
wages, service conditions, and resolving disputes and grievances.
6. Human Resource Research
The human resources department seems to be the storehouse for maintaining the
history of the organization— everything from studying a department's high turnover
or knowing the number of people presently employed, to generating statistics on the
percentages of women, minorities, and other demographic characteristics.
Research is not the sole responsibility of any one particular group or department in
an organisation. The initial responsibility is that of the human resource department,
which however should be assisted by line supervisors and executives at all levels
of management. The assistance that can be rendered by trade unions and other
organisations should not be ignored, but should be properly made use of.

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HUMAN RESOURCE MANAGEMENT

Definition of Human Resource Management (HRM)

• To achieve and maintain high morale among employees.

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT

4. Principle of participation – to associate employee representatives at every

HUMAN RESOURCE POLICIES

Human resource planning: The focus of HR planning is to ensure the organisation

Recruitment and Selection: Recruitment involves identifying the sources of

Benefits: includes insurance, pensions, vacation, sick days.

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