Human resource management (HRM) is a pivotal function within

organizations, serving as the strategic driver behind effective

people management. It encompasses a comprehensive set of
practices and policies designed to maximize the potential of an
organization's most valuable asset—its human capital. In
essence, HRM is the art and science of aligning the workforce
with the strategic goals of the organization. This multifaceted
discipline involves activities such as recruitment, training,
performance management, and employee relations, all aimed at
fostering a productive and harmonious work environment.

At its core, HRM seeks to optimize the contribution of individuals

to the overall success of the organization. This involves not only
attracting and retaining top talent but also nurturing a culture that
values diversity, equity, and inclusion. Moreover, HRM plays a
crucial role in adapting to the ever-evolving business landscape,
responding to technological advancements, changing
demographics, and shifting employee expectations. As
organizations grapple with the complexities of a globalized and
dynamic market, effective HRM becomes a key differentiator in
achieving a competitive edge.
Human Resource Management may be defined as a
set of policies, practices and programmes designed to
maximize both personal and organizational goals It is
the process of binding people and organization
together so that the objectives of each are achieved

:Human resource management is

concerned with managing people at work. It covers all types
of people at all levels in the organization. It applies to workers,
supervisors, officers, managers and other types of personnel.

2. : Human resource management is

concerned with employees as individuals as well as groups. It
is the process of achieving the best fit between individuals,
jobs, organizations together so that the goals of each are met.

: Human resource management focuses

on action rather than on record keeping or procdures. It
stresses the solution 'of human resource problems to achieve
both organizational objectives and employees personal goals
4. : Under human resources
management, every employee is considered as an
individual so as to provide services and programmes to
facilitate employee satisfaction and growth

5. . Human resource
management is concerned with developing of
employees so that they get maximum satisfaction from
their work and give their best efforts to the organization.

6. Human resources management is

inherent in all organizations and at all levels It is equally
useful and necessary in government, armed forces, sports
organization and the like It permeates all the functional areas

7. : Management of human resources

is an ongoing or never-ending exercise rather than a one
shot function Human resource management requires a
constant alertness and awareness of human relations
and their importance in everyday operations

8. Future oriented: Human resource management is concerned

with helping an organization achieve its objectives in the future
by providing for competent and well-motivated employees.
9. Challenging function: Managing of human resources is a
challenging job due to the dynamic nature of people. People
have sentiments and emotions so they cannot be treated like
machines It is therefore, necessary to handle them tactfully It is
not simply managing people but admınıstering a social system.

10.Science as well as Art: HRM is a science as it contains an

organized body of knowledge consisting of principles and
technique It is also an art because it involves application of
theoretical knowledge to the problems of human resources.
Objectives of Human Resource Management

Objectives of human resource management are derived from

the basic objectives of an organization. In order to achieve
organizational objectives integration of employer's interest and
employee interests is necessary In this light, the objectives of
human resource management may be summarized as follows.

1. To help the organization attain its goals by providing

well-trained and well-motivated employees

2. To employ the skills and knowledge of employees

efficiently and effectively.

3. To enhance job satisfaction and self-actualization of

employees by encouraging and assisting every
employee to realized full potential.

4. To establish and maintain productive, self-respecting

and internally satisfying working relationship among
all the members of the organization

5. To secure the integration of all the individuals and

groups with the organization by reconciling individual
or group goals with those of an organization
 Importance of Human Resource Management

The significance of human resource management

can be discussed at four levels.

1. Significance for an enterprise:

Human resource management can help an enterprise in achieving
its goals more efficiently and effectively in the following ways

Attracting and retaining the required talent through

effective human resource planning, recruitment,
selection, placement, orientation, compensation and
promotion policies

Developing the necessary skills and right attitudes

among the employees through training,
development, performance appraisal etc,
Securing willing cooperation of employees through
motivation, participation, grievance handling etc,

Utilizing effectively the available human resources

Ensuring that the enterprise will have in future a

team of competent and dedicated employees.
2. Professional Signifance:

Effective management of human resource helps to improve

the quality of work life it permits team work among
employees by providing a healthy working environment. It
contributes to professional growth in the following ways.

Providing maximum opportunities for

personal development of each employee

Maintaining healthy relationships among

individuals, and different work groups

Allocating work properly

3. Social significance:

Effective management of human resource helps to improve

the quality of work lic It permits team work among
employees by providing a healthy working environment It
contributes to professional growth in the following ways

Providing suitable employment that provides

social and psychological satisfaction to people.

Maintaining a balance between the jobs available

and the jobseekers in terms of numbers,
qualifications, needs and aptitudes.
Eliminating waste of human resources through
conservation of physical and mental health
4. National significance:

Human resource management plays a vital role in the

development of a nation. The effective exploitation and
utilization of a nation's natural, physical and financial
resources require an efficient and committed manpower.
The level of development in a country depends primarily
on the skills, attitudes and values of its human resources.
Functions of Human Resource Management

Management of human resources consists of several

inter-related functions These functions are common to
all organizations though every organizations may have
its own human resource management programme.
These functions of human resource management may
broadly be classified into two categories.

1. Managerial functions

Managing people is the essence of being a manager. Like

other managers, a human resource manager performs the
function of planning, organızıng, directing and controlling.

i. Planning: The process of deciding the goals and

formulating policies and programmes to achieve the goals
In the area of human resource management, planning
involves deciding human resource management, planning
involves deciding human resource goals etc.
ii. Organizing: In order to implement the plans, a sound
organization structure is required Organizing is the process of
allocating tasks among the members of the group,
establishing authority-responsibility relationships among them
and integrating their activities towards the common objectives
iii. Directing: Directing is the process of motivating,
activating, leading and supervising people Directing
includes all those activities by which a manager
influences the action of subordinates.

iv. Controlling: It implies checking, verifying and

regulating to ensure that everything occurs in
conformity with the plans adopted and the instructions
issued. Controlling the management of human
resources involves auditing training programmes.

2. Operative Functions

The operative or service functions of human resource

management are concerned with specific activities of
procuring, developing, compensating and maintaining an
efficient work force.

i. Procurement function: It is concerned with securing

and employing the right kind and proper number of
people required to accomplish the organizational
objectives. It consists of the following activities.

1. Job analysis

2 Human resource planning

3. Recruitment

4 Selection
5. Placement

6. Induction or orientation

ii. Development function: Human resource development

is the process of improving the knowledge, skills,
aptitudes and values of employees so that they can
perform the present and future jobs more effectively.
This function comprises the following activities.

1.Performance and potential appraisal

2. Training

3 Executive development

4 Career planning and development

iii. Compensation function: It refers to providing equitable

and fair remuneration to employees for their contribution
to the attainment of organizational objectives. It consists
of the following activities.

1 Job evaluation

2 Wage and salary administration

3. Bonus
iv. Integration function: It is the process of reconcrling the
goals of the organization with those of its members.
Integration involves motivating employees through
various financial and non-financial incentives, providing
job satisfaction Handling employee grievances through
formal grievance procedures, developing bargaining,
workers participation in management. conflict resolution,
developing sound human relations, employee counseling

v. Maintenance Function: It is concerned with protecting and

promoting the physical and mental health of employees. For this
purpose, several types of fringe benefits such as housing,
medical and, educational facilities, conveyance facilities,
gratuity, maternity benefits, group insurance are also arranged
Scope of Human Resource Management

The Indian Institute of Personnel Management has

been described the scope of human resource
management into the following aspects

1.The labour or Human Resource Aspect: It is concerned with

manpower planning, recruitment, selection, and development,
induction, transfer, promotion, demotion, termination, training
and development, layoff and retrenchment, wage and salary
administration, incentives, productivity

2. The welfare Aspect: This aspect is concerned with working

conditions and amenities such as canteens, crèches, rest rooms,
lunch rooms, housing, transport, education, medical help, health
and safety, washing facilities, recreation, and cultural facilities.

3. The industrial Relations Aspect: This is concerned with

the company's relations with the employees It includes
union-management relations, joint consultation,
negotiating, collective bargaining, grievance handling,
disciplinary actions, and settlement of industrial disputes
Growth of HRM in India

In India, the origin of human resource management can be

traced to the concern for welfare of factory workers during
the 1920s The Royal Commission on Labour recommended
in 1931 the appointment of labour officers in order to protect
the workers from the evils of jobbery and indebtedness, to
check corrupt practices in recruitment and selection in
Indian industry to act as a spokesman of labour and to
promote an amicable settlement between the workers and
management Welfare officer was concerned mainly with the
recruitment and welfare of workers After 500 or more
workers to appoint welfare officers The Act also prescribed
the qualifications and duties of welfare officers.

The appointment of welfare officers remained by and large

symbolic, to satisfy statutory requirements The welfare
officers mainly play a policing and fire-fighting role. They
became an appendage to the industrial system With rising
expectations, the welfare needs of the working class
increased. As trade union movement gathered momentum
in the country, industrial relations became the major task.
Two professional bodies, viz., the Indian Institute of
Personnel Management(IIPM), Kolkatta and the National
Institute of Labour Management (NLM). Mumbai were
established during the 1950s.
 ORGANIZATIONAL
BEHAVIOUR

Introduction
An understanding of the ways in which people behave in
organizations is very important for all those who wish to become
an effective and efficient manager today and tomorrow. This
knowledge is a pre-requisite for them to be able to learn,
understand and effectively apply the basic principles of human
and organizational behavior at the place of work In other words,
all aspects of business or organization management are
governed by a basic understanding of the principles which
control human behavior, both at the Individual level and also in
terms of the prescribed, directed, organized and desired-at the
organization level Since organizational behavior as a discipline
plays a vital role in this age of superior technological
advancement and tremendous uncertainty, in this chapter we
have tried to briefly explain the significances of this discipline.

Organizations are created on the basis that more can be

achieved when people work in harmony for a specific (or
stated) purpose than by individuals acting alone. It is required
to work more effectively and efficiently towards fulfilling a
given set of wants or needs with the help of physical and
human resources. In a simple way, Organizational Behaviour
can be said to be the study involving the ability to see and
understand the behavior of individuals.
Contributing Disciplines
Organizational Behaviour uses an applied behavioural
science approach and is based on views and
contribution from various behavioural disciplines such
as Psychology, Sociology. Social Psychology,
Anthropology, Political Science and other disciplines
such as Economics, Ethics, Mathematics and Statistics.

Psychology is concerned with the study and understanding of

human. personality and behavior, the traits, characteristics,
perceptions, personality, attitudes, values, beliefs and motives
of individuals. More recently industrial and organizational
psychologists are actively involved in helping organizations to
understand the various factors such as learning, perception,
emotions, training, leadership, motives, job design, stress at
work etc, can affect the individual's performance at work

Sociology is the study of people as a part of the social

system especially in relation to other human beings.
Sociologists while contributing to OB, have tried to
understand the influence and role of group dynamics
especially in formal and complex organizations.

Social Psychology is the discipline that borrows a bit from both

Psychology and Sociology They are interested in areas related
to measuring. understanding and change of attitudes, building
healthy communication, power and conflict on group behavior.
Anthropology is related to the study of larger groups,
nations and cultures, global beliefs, customs, ideas and
values and the wider process_of_ socialization involving
religious activities, caste system etc

Political Science As the term itself indicates, this discipline

is mainly concerned with the structuring of conflict and
usage of power by people for self interest in organizations.

Economics: This study involves the use and distribution of

world's resources in the most optimum manner for the
pursuit of the organization's goal and objectives

Ethics refers to the establishment of absolute standards

with regard to interpersonal relationships and interactions
especially in terms of honesty, integrity, probity, value,
esteem and respect

Mathematics and Statics: This discipline involves the

necessity of using absolutes and facts with reference to
particular situations so as to draw logical and demonstrable
conclusions from bodies of knowledge and research.
Challenges

The contemporary Indian Business is characterized by

two major features. Liberalization of economy and
Globalization of economy.

Liberalization of economy has paved the way for free

economy in which one can do what one wants. This has
resulted in fears, business competition and business
organizations have been forced to change their working
styles to face this competition. This change is creating a lot
of behavioural problems which managers have to solve.

Another aspect of contemporary business is Globalization.

This has not only affected Indian business organizations but
organizations throughout the world have been affected.
Globalization has raised two types of behavioural problems

First when a manager of Indian orıgın goes abroad, he

has to manage a workforce which is quite different from
the workforce that he was managing Such differences
may not be only in terms of languages & living habits but
there may be differences in terms of aspirations, needs,
attitudes, way of working etc It implies that earlier strategy
of tackling behavioural issues may not be effective. This
has to be changed according to the new situation
Second when a manager joins a multinational company
operating in India, he finds himself in totally different work
culture In this situation the manager has to change
himself to fit with the new situation.

In the light of this economic liberalization & globalization, we

can identify the behavioural challenges and opportunities
that managers have in managing organizations These
challenges and opportunities are as follows:

1.Cross cultural dynamics

2. Mergers and Acquisitions

3. Changing workforce profile

4. Workforce diversity

5 Increasing quality consciousness

6. Newer Organizational designs

7. Ethical issues in organizational behavior

1. Cross Cultural Dynamics

Cross cultural dynamics implies that people of different

cultures have different behavioural patterns On the basis
of various researches, it has been concluded that
management practices are culture bound and no single
management practice is suitable to all cultures.

Culture Culture is a set of behefs, attitudes and values that are

shared commonly by the members of that society. Since
different countries may have different cultures, people of
different countries may have different behavioural patterns
Cultural diversity exists on five dimensions - Individualışm
versus Collectivism, Power Distance, Uncertainty Avoidance,
Masculinity versus Femınınity and Time Orientation

Let us see how these dimensions affect human

behaviour and consequently work practices

a. Individualism versus Collectivism: People differ in terms of

Individualism and collectivism Individualism is the extent to which
people place value on themselves, they define themselves by
referring themselves as singular persons rather than as part of a
group or organizations Collectivism is the extent to which people
emphasize the good of the group or society
b. Power Distance: Power distance is also known as
orientation to authority, is the extent to which less powerful
people accept the unequal distribution of power, people
prefer to be in a where the authority is clearly understood
and lines of authority are never bypassed

c. Uncertainty Avoidance: Uncertainty avoidance, also

known as preference for stability, is the extent to which
people feel threatened by unknown situations and prefer
to be in clear and unambiguous situations

d. Masculinity versus Femininity: Masculinity or Femininity, also

known as degree of assertiveness or materialism, is the extent
to which the dominant value in a society emphasizes
aggressiveness and the acquisition of money and material
goods, rather than concern for people and overall quality of life

e. Time Orientation:Time orientation dimension divides

people into two categories, long-term orientation and short-
time orientation People having long-term orientation focus on
future, prefer to work on projects having a distant payoff, and
have persistence and thrift People having short-term
orientation are more oriented towards past and present and
have respect for traditions and social obligations
2. Mergers and Acquisitions

Every organization strives for growth which may come either

through grassroots projects or mergers and acquisitions
Grassroot projects have the limitations of gestation period
while mergers and acquisitions provide quick entry in the
market. While mergers and acquisitions have business
sense as they result in synergistic effect, they create the
challenge of integrating acquiring and acquired companies
In the absence of proper integration between the two,
merger and acquisitions efforts are likely to nullify which
have been by various cases of mergers and acquisitions

People Attrition
In many cases of mergers and acquisitions, rate of people
attrition is very high. This happens in those cases where the work
culture of acquiring company is not perceived to be positive as
compared to that of acquired company. If key personnel of the
acquired company leave it, the merger and acquisition becomes
meaningless This problem is similar in industrial companies as
well as in knowledge-based companies

3. Changing Workforce Profile

Over the period of time, there has been a tremendous

change in Indian workforce profile.
Earlier our work force was considered to be illiterate and all
relevant activities used to be geared to meet job demand and
expectations based on that illiteracy Now the situation has
completely sansformed Today, workforce is more educated skill
oriented, comparatively younger and has high expectations

4. Workforce Diversity

Because of environmental changes, workforce diversity

has increased over then period of time This is expected to
increase further in future. Workforce diversity has
important implications for management practices
Managers have to shift their philosophy from treating
everyone alike to recognizing differences and responding
those differences in ways that ensure employees greater
productivity while at the same time, not discriminating

5. Increasing Quality Consciousness

With the increased competition at the global level and discerning

customers, more and more organizations are becoming
conscious about the quality of their products/services. Quality is
a sense of appreciation that something is better than something
else. From operational point of view, quality means focusing on
the creation of increasing better products/services at
progressively more competitive prices.
6. Newer Organizational Design

To cope up with the requirements of fast-changing

environment, newer organizational designs have emerged
Organizational designs, today, are not based on the classical
approach of division of labour, departmentation, authority-
responsibility parity, and hierarchical levels Their places have
been taken by flexible and dynamic organizational designs.

7. Ethical Issues in Organizational Behaviour.

Ethical issues in managing organizations have been accorded

high priority by many forward looking organizations b since
long. However, these issues have received added inıportance
because of emergence of corporate governance in
management throughout the world including India The
implications of ethics are that only right actions should be
taken and wrong actions should be avoided
CONCLUSION

Human resource management (HRM) and

organizational behavior (OB) are critical aspects of
managing employees in any organization. HRM
encompasses a chain of practices that aim to attract,
acquire, and retain a talented workforce. It involves
various functions, including recruitment and selection,
training and development, performance management,
and employee involvement. Organizational behavior is
defined as a systematic study of how individuals and
groups act within the organizations where they work. It
is related to organizational success and is influenced
by factors both within an individual and within the
environment. By understanding individual and group
behavior, leveraging organizational culture, and
implementing effective HRM practices, companies can
create a positive work environment, maximize
employee potential, and drive organizational success.
The future research agenda must recognize that
classical areas of HRM and OB are not stagnant, and
hence, scholarship must examine advances
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