HUMAN RESOURCE MANAGEMENT- 18IM751

SIR M VISVESVARAYA INSTITUTE OF TECHNOLOGY

BANGALORE – 562 157

DEPARTMENT OF MECHANICAL ENGINEERING

HUMAN RESOURCE MANAGEMENT

H
Module-1
INTRODUCTION: Evolution of HRM, Objectives, Functions and Policies.
HUMAN RESOURCE PLANNING: Uses and benefits, Manpower Inventory, Manpower Forecasting,
Methods of Manpower Forecasting, job Description, Job Specification.

Evolution of HRM
Since mid-1980‘s Human Resource Management (HRM) has gained acceptance in both academic
and commercial circle. HRM is a multi-disciplinary organizational function that draws theories and
ideas from various fields such as management, psychology, sociology and economics.
Human resources management (HRM) is a management function concerned with hiring,
motivating and maintaining people in an organization. It focuses on people in organizations.
Human resource management is designing management systems to ensure that human talent is used
effectively and efficiently to accomplish organizational goals.
HRM is the personnel function which is concerned with procurement, development, compensation,
integration and maintenance of the personnel of an organization for the purpose of contributing
towards the accomplishments of the organization ‘s objectives. Therefore, personnel management
is the planning, organizing, directing, and controlling of the performance of those operative functions
(Edward B. Philippo).
According to the Invan cevich and Glueck, ―HRM is concerned with the most effective use of
people to achieve organizational and individual goals. It is the way of managing people at work, so
that they give their best to the organization‖.
According to Dessler (2008) the policies and practices involved in carrying out the ―people‖ or
human resource aspects of a management position, including recruiting, screening, training,
rewarding, and appraising comprises of HRM.
Generally, HRM refers to the management of people in organizations. It comprises of the activities,
policies, and practices involved in obtaining, developing, utilizing, evaluating, maintaining, and retaining
the appropriate number and skill mix of employees to accomplish the organization ‘s objectives. The
goal of HRM is to maximize employees ‘contributions in order to achieve optimal productivity and
effectiveness, while simultaneously attaining individual objectives (such as having a challenging job
and obtaining recognition), and societal objectives (such as legal compliance and demonstrating
social responsibility).
In short Human Resource Management (HRM) can be defined as the art of procuring, developing
and maintaining competent workforce to achieve the goals of an organization in an effective and
efficient manner.

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Objectives of HRM
The primary objective of HRM is to ensure the availability of competent and willing workforce to
an organization. The specific objectives include the following:
1) Human capital: assisting the organization in obtaining the right number and types of
employees to fulfill its strategic and operational goals
2) Developing organizational climate: help to create a climate in which employees are
encouraged to develop and utilize their skills to the fullest and to employ the skills and
abilities of the workforce efficiently
3) Help to maintain performance standards and increase productivity through effective job
design; providing adequate orientation, training and development; providing performance-related
feedback; and ensuring effective two-way communication.
4) Help to establish and maintain a harmonious employer/employee relationship
5) Helping to create and maintain a safe and healthy work environment
6) Developing programs to meet the economic, psychological, and social needs of the employees
and helping the organization to retain the productive employees
7) Ensuring that the organization follows provincial/territorial and federal laws affecting the
workplace (such as human rights, employment equity, occupational health and safety,
employment standards, and labor relations legislation). To help the organization to reach its
goals
8) To provide organization with well-trained and well-motivated employees
9) To increase the employee’s satisfaction and self-actualization
10) To develop and maintain the quality of work life
11) To communicate HR policies to all employees.
12) To help maintain ethical polices and behavior.
The above stated HRM objectives can be summarized under four specific objectives: societal,
organizational, and functional and personnel.

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1) Societal Objectives: seek to ensure that the organization becomes socially responsible to
the needs and challenges of the societywhile minimizing the negative impact of such

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demands upon the organization. The failure of the organizations to use their resources for the
society ‘s benefit in ethical ways may lead to restriction.
2) Organizational Objectives: it recognizes the role of HRM in bringing about
organizational effectiveness. It makes sure that HRM is not a standalone department, but
rather a means to assist the organization with its primary objectives. The HR department
exists to serve the rest of the organization.
3) Functional Objectives: is to maintain the department ‘s contribution at a level appropriate to
the organization ‘s needs. Human resources are to be adjusted to suit the organization ‘s
demands. The department ‘s value should not become too expensive at the cost of the
organization it serves.
4) Personnel Objectives: it is to assist employees in achieving their personal goals, at least as
far as these goals enhance the individual ‘s contribution to the organization. Personal
objectives of employees must be met if they are to be maintained, retained and motivated.
Otherwise employee performance and satisfaction may decline giving rise to employee turnover.

Functions and Policies

Human Resources management has an important role to play in equipping organizations to meet the
challenges of an expanding and increasingly competitive sector. Increase in staff numbers, contractual
diversification and changes in demographic profile which compel the HR managers to reconfigure the role and
significance of human resources management. The functions are responsive to current staffing needs but can be
proactive in reshaping organizational objectives.

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 Strategic HR Management: As a part of maintaining organizational competitiveness, strategic

planning for HR effectiveness can be increased through the use of HR metrics and HR technology. Human
resource planning (HRP) function determine the number and type of employees needed to accomplish
organizational goals. HRP includes creating venture teams with a balanced skill-mix, recruiting the right
people, and voluntary team assignment. This function analyzes and determines personnel needs in order to
create effective innovation teams. The basic HRP strategy is staffing and employee development.
 Equal Employment Opportunity: Compliance with equal employment opportunity (EEO) laws and
regulations affects all other HR activities.
 Staffing: The aim of staffing is to provide a sufficient supply of qualified individuals to fill jobs in an
organization. Job analysis, recruitment and selection are the main functions under staffing.
Workers job design and job analysis laid the foundation for staffing by identifying what diverse people
do in their jobs and how they are affected by them.
Job analysis is the process of describing the nature of a job and specifying the human requirements such as
knowledge, skills, and experience needed to perform the job. The result of job analysis is job
description. Job description spells out work duties and activities of employees.
Through HR planning, managers anticipate the future supply of and demand for employees and the
nature of workforce issues, including the retention of employees. So HRP precedes the actual selection of
people for organization. These factors are used when recruiting applicants for job openings. The
selection process is concerned with choosing qualified individuals to fill those jobs. In the selection
function, the most qualified applicants are selected for hiring from among the applicants based on the
extent to which their abilities and skills are matching with the job.
 Talent Management and Development: Beginning with the orientation of new employees, talent
management and development includes different types of training. Orientation is the first step towards
helping a new employee to adjust himself to the new job and the employer. It is a method to acquaint
new employees with particular aspects of their new job, including pay and benefit programmes, working
hours and company rules and expectations.
Training and Development programs provide useful means of assuring that the employees are capable of
performing their jobs at acceptable levels and also more than that. All the organizations provide training
for new and in experienced employee. In addition, organization often provide both on the job and off the
job training programmes for those employees whose jobs are undergoing change.
Likewise, HR development and succession planning of employees and managers is necessary to prepare
for future challenges. Career planning has developed as result of the desire of many employees to grow
in their jobs and to advance in their career. Career planning activities include assessing an individual
employee ‘s potential for growth and advancement in the organization.
Performance appraisal includes encouraging risk taking, demanding innovation, generating or adopting
new tasks, peer evaluation, frequent evaluations, and auditing innovation processes.
This function monitors employee performance to ensure that it is at acceptable levels. This strategy
appraises individual and team performance so that there is a link between individual innovativeness and
company profitability. Which tasks should be appraised and who should assess employees‘performance
are also taken into account.

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 Total Rewards: Compensation in the form of pay, incentives and benefits are the rewards given to the
employees for performing organizational work. Compensation management is the method for determining
how much employees should be paid for performing certain jobs. Compensation affects staffing in that
people are generally attracted to organizations offering a higher level of pay in exchange for the work
performed. To be competitive, employers develop and refine their basic compensation systems and may
use variable pay programs such as incentive rewards, promotion from within the team, recognition
rewards, balancing team and individual rewards etc. This function uses rewards to motivate personnel to
achieve an organization ‘s goals of productivity, innovation and profitability. Compensation is also related
to employee development in that it provides an important incentive in motivating employees to higher
levels of job performance to higher paying jobs in the organization.
Benefits are another form of compensation to employees other than direct pay for the work performed.
Benefits include both legally required items and those offered at employer ‘s discretion. Benefits are
primarily related to the area of employee maintenance as they provide for many basic employee needs.
 Risk Management and Worker Protection: HRM addresses various workplace risks to ensure
protection of workers by meeting legal requirements and being more responsive to concerns for workplace
health and safety along with disaster and recovery planning.
 Employee and Labor Relations: The relationship between managers and their employees must be
handled legally and effectively. Employer and employee rights must be addressed. It is important to
develop, communicate, and update HR policies and procedures so that managers and employees alike
know what is expected. In some organizations, union/management relations must be addressed as well.
The term labor relation refers to the interaction with employees who are represented by a trade union.
Unions are organization of employees who join to obtain more voice in decisions affecting wages,
benefits, working conditions and other aspects of employment. About labor relations the major function of
HR personnel includes negotiating with the unions regarding wages, service conditions and resolving
disputes and grievances.
The primary responsibilities of Human Resource managers are:
 To develop a thorough knowledge of corporate culture, plans and policies.
 To act as an internal change agent and consultant
 To initiate change and act as an expert and facilitator
 To actively involve in company’s strategy formulation
 To keep communication line open between the HRD function and individuals and groups
both within and outside the organization.
 To identify and evolve HRD strategies in consonance with overall business strategy.
 To facilitate the development of various organizational teams and their working relationship
with other teams and individuals.
 To try and relate people and work so that the organization objectives are achieved
efficiently and effectively.
 To diagnose problems and determine appropriate solution particularly in the human
resource areas.
 To provide co-ordination and support services for the delivery of HRD programmes and services
 To evaluate the impact of an HRD intervention or to conduct research so as to identify,
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develop or test how HRD In generalhasimproved individualand organizationalperformance.

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HUMAN RESOURCE PLANNING
Human resource planning is important for helping both organizations and employees
to prepare for the future. The basic goal of human resource planning is to predict the
future and based on these predictions, implement programmes to avoid anticipated
problems. Very briefly humans resource planning is the process of examining an
organization‘s or individual‘s future human resource needs for instance, what types
of skills will be needed for jobs of the future compared to future human resource
capabilities (such as the types of skilled employees you already have) and developing
human resource policies and practices to address potential problems for example,
implementing training programmes to avoid skill deficiencies.
Definition: HRP is the process by which management determines how the
organization should move from its current manpower position to desired manpower
position. Through planning, management strives to have the right time, doing things
which result in both the organization and individual receiving maximum long run
benefits‖.
Objectives of Human Resource Planning
 To ensure optimum utilization of human resources currently available in the organization.

 To assess or forecast the future skill requirement of the organization.

 To provide control measures to ensure that necessary resources are available as and when
required.

 A series of specified reasons are there that attaches importance to manpower

planning and forecasting exercises. They are elaborated below:
 To link manpower planning with the organizational planning
 To determine recruitment levels.
 To anticipate redundancies.
 To determine optimum training levels.
 To provide a basis for management development programs.
 To cost the manpower.
 To assist productivity bargaining.
 To assess future accommodation requirement.
 To study the cost of overheads and value of service functions.

HRP Process
HRP effectively involves forecasting personnel needs, assessing personnel supply and
matching demand– supply factors through personnel related programmes. The HR
planning process is influenced by over al organizational objectives and environment of
business.

[AUTHOR NAME]
 HRP Process
Job Description
Job: A job may be defined as a ―collection or aggregation of tasks, duties and responsibilities
which as a whole, are regarded as a regular assignment to individual employees,‖ and which is
different from other assignments, In other words, when the total work to be done is divided and
grouped into packages, we call it a ―job. Each job has a definite title based upon standardized
trade specifications within job.
Job description is the immediate product of job analysis process; the data collected
through job analysis provides a basis for job description and job specification.
Job Description: is a written record of the duties, responsibilities and requirements of a
job. It is concerned with the job itself and not with the job holders. It is a statement
describing the job in such terms as its title, location, duties, working conditions and
hazards.
Flippo has Defined Job Description as, ―A job description is an organized, factual
statement of duties and responsibilities of a specific job. In brief, it should tell what is to be
done. How it is done why. It is a standard of function, in that defines the appropriate and
authorized content of a job.
According to Pigors and Myres, ―Job description is a pertinent picture (in writing) of the
organizational relationships, responsibilities and specific duties that constitutes a given job or position. It
defines scope of responsibility and continuing work assignments that are sufficiently different form that of
other jobs to warrant a specific title.
Job Specification
The job specification states the minimum acceptable qualifications that the incumbent
must possess to perform the job successfully. Based on the information acquired through
job analysis, the job specification identifies the knowledge, skills, and abilities needed to do
the job effectively. Individuals possessing the personal characteristics identified in the job
[AUTHOR NAME]
specification should perform the job more effectively than individuals lacking these
personal characteristics. The job specification, therefore, is a important tool in the selection
process, for it keeps the selector’s attention on the list of qualifications necessary for an
incumbent to perform the job and assists in determining whether candidates are qualified.
According to Dale Yoder, ―The job specification, as such a summary properly described is thus a
specialized job description, emphasizing personnel requirement and designed specially to facilitate selection and
placement.

Flippo has defined job specification as, ―Job specification is a statement of the
minimum acceptable human qualities necessary to perform a job properly It is a standard
of personnel and designates the qualities required for acceptable performance.

In is clear from the above definitions that job specification is a statement of summary of
personnel requirements for a job. It may also be called standard of personal for the
selection‖
A Job Specification should include:
1. Physical characteristics, which include health, strength, endurance, age, height,
weight, vision, voice, eye, hand and foot co-ordination, motor co-ordination, and
color discrimination.
2. Psychological and social characteristics such as emotional stability, flexibility,
decision making ability, analytical view, mental ability, pleasing manners, initiative,
conversation ability.
3. Mental Characteristics such as general intelligence, memory, judgement, ability to
concentrate, foresight etc.
4. Personal Characteristics such as sex, education, family background, job
experience, hobbies, extracurricular activities

[AUTHOR NAME]