Definition of HRM

The first definition of HRM is that it is the process of managing people in organizations in a
structured and thorough manner. This covers the fields of staffing (hiring people), retention of
people, pay and perks setting and management, performance management, change management
and taking care of exits from the company to round off the activities.

The second definition of HRM encompasses the management of people in organizations from a
macro perspective i.e. managing people in the form of a collective relationship between
management and employees. This approach focuses on the objectives and outcomes of the HRM
function. What this means is that the HR function in contemporary organizations is concerned
with the notions of people enabling, people development and a focus on making the
“employment relationship” fulfilling for both the management and employees.

Importance of Human Resource Management (HRM)

 Fulfil the Human Resource Requirement: Human resource management fills in the gap
between the vacancies in the organisation and the suitable candidates for such positions.
 Employee Retention: HRM not only functions to acquire the manpower but also
concentrates on the maintenance and retention of the human capital.
 Enhance the Quality of Work Life: It focuses on the continuous enhancement of the job
facilities, hence improving the quality of employee’s work life.
 Redressing Grievance and Conflict: HRM addresses the problems among employees or
with the management since it is essential for any organisation to resolve its internal
conflicts and grievances to ensure a sound and co-operative work environment.
 Achieving Organizational Goals: To reach the set objectives and targets on time, it is
necessary to direct the employee’s efforts towards the organisational goals. All this is
possible only through the practice of human resource management.
 Long-term Existence in the Market: As we all know that employees are the inevitable
part of any organisation, therefore to survive in the competition, it is imperative that the
organisation brings HRM into functioning.
 Developing Team Spirit and Feeling of Belongingness: It brings together the different
employees as a team to accomplish the goals of the organisation. HRM also make the
employees feel valuable to the organisation.
 Employee Satisfaction and Welfare: HRM works for the welfare, safety and security of
the organisation. It is majorly concerned about the level of satisfaction derived by an
employee from his job.
Objectives of Human Resource Management

Efficient Use of Resources

Efficient utilization of human is the main objective of HRM. HRM train the employees to utilize
the human and non-human resources so that the goals of an organization can be achieved for
efficient utilization of the resources HR departments formulations aims & policies.

Develop An Organizational Hierarchy For More Productivity

Organizational hierarchy different in structure and environmental relation between employees

and management. It gives the assignment to each employee working in the organization. The
assignment is to be carried out within the given constant it always define authority, right, duty,
accountability and responsibility thus HRM helps to maintain the organization hierarchy and
structure.

Development And Growth Of Human Resource

HRM provides an encouraging the environment. so that the people working in the organization
can work productively this, in turn, help them to maintain and develop, innovative, knowledge,
abilities, skill. Training and development season or organized by HRD such sessions provide
opportunity and overall development to the Employees.

Valued Human Beings

HRM focuses on promoting good working relationship among working and managers in an
organization thus good HRM system helps in creating an environment where employees are
respected.

Maintain Employee Satisfaction

HRM provides a series of amenities, services, opportunities to employees for there career
development this leads to job satisfaction and hence improve work performance. HRM aims in
meeting personnel objective of employees so that they can be motivated and retained.
Increasing Organizational Efficiency

HRM focuses on accomplished higher production with effective utilization of available

resources. this leads to an improvement in organizational goals and objective

Social Responsibility

It means catering to the needs and challenges of society while minimizing the negative impact of
such demand on the organization. HRM must see that legal, ethical and social environmental
issues are property equal opportunity and equal pay for equal work should not be dishonoured.
HRM should help the socially through generating employment opportunity creating school and
dispensaries helping women empowerment are the social responsibility issue.

Synchronizing Individuals Goals And Organization Goals

HRM bridges the gap between individual goals and organizational goals thereby ensuring into a
harmony. a proper match between individual goals and organizational goals should be
maintained in order to keep the employees motivated and utilize organizational resources
efficiently and effectively.

Functions of Human Resource Management

Human Resource Management functions can be classified into the following three categories.

 Managerial Functions,
 Operative Functions, and
 Advisory Functions.

The Managerial Functions of Human Resource Management are as follows:

1. Human Resource Planning - In this function of HRM, the number and type of employees
needed to accomplish organizational goals are determined. Research is an important part of this
function, information is collected and analyzed to identify current and future human resource
needs and to forecast changing values, attitudes, and behavior of employees and their impact on
the organization.
2. Organizing - In an organization tasks are allocated among its members, relationships are
identified, and activities are integrated towards a common objective. Relationships are
established among the employees so that they can collectively contribute to the attainment of the
organization's goal.

3. Directing - Activating employees at different levels and making them contribute maximum to
the organization is possible through proper direction and motivation. Taping the maximum
potentialities of the employees is possible through motivation and command.

4. Controlling - After planning, organizing, and directing, employees' actual performance is

checked, verified, and compared with the plans. If the actual performance is found deviated from
the plan, control measures are required to be taken.

The Operative Functions of Human Resource Management are as follows:

1. Recruitment and Selection - Recruitment of candidates is the function preceding the selection,
which brings the pool of prospective candidates for the organization so that the management can
select the right candidate from this pool.

2. Job Analysis and Design - Job analysis is the process of describing the nature of a job and
specifying the human requirements like qualification, skills, and work experience to perform that
job. Job design aims at outlining and organizing tasks, duties, and responsibilities into a single
unit of work for the achievement of certain objectives.

3. Performance Appraisal - Human resource professionals are required to perform this function
to ensure that the performance of employees is at an acceptable level.
4. Training and Development - This function of human resource management helps employees
acquire skills and knowledge to perform their jobs effectively. Training and development
programs are organized for both new and existing employees. Employees are prepared for
higher-level responsibilities through training and development.

5. Wage and Salary Administration - Human resource management determines what is to be paid
for different types of jobs. Human resource management decides employee's compensation
which includes - wage administration, salary administration, incentives, bonuses, fringe benefits,
etc,.

6. Employee Welfare - This function refers to various services, benefits, and facilities that are
provided to employees for their well-being.

7. Maintenance - Human resource is considered an asset for the organization. Employee turnover
is not considered good for the organization. Human resource management always tries to keep
their best performing employees with the organization.

8. Labour Relations - This function refers to human resource management interaction with
employees represented by a trade union. Employees come together and form a union to obtain
more voice in decisions affecting wage, benefits, working conditions, etc,.

9. Personnel Research - Personnel research is done by human resource management to gather

employees' opinions on wages and salaries, promotions, working conditions, welfare activities,
leadership, etc,. Such researches help in understanding employee satisfaction, employee
turnover, employee termination, etc,.

10. Personnel Record - This function involves recording, maintaining, and retrieving employee-
related information like - application forms, employment history, working hours, earnings,
employee absents and presents, employee turnover, and other data related to employees.
The Advisory Functions of Human Resource Management are as follows:

Human Resource Management is expert in managing human resources and so can give advice on
matters related to human resources of the organization. Human Resource Management can offer
advice to:

1. Advised to Top Management

The personnel manager advises the top management in the formulation and evaluation of
personnel programs, policies, and procedures.

2. Advised to Departmental Heads

The personnel manager advises the heads of various departments on matters such as manpower
planning, job analysis, job design, recruitment, selection, placement, training, performance
appraisal, etc.

Challenges to HR professionals

Attracting the Talent

The Internet has been a boon for applicants as well as the companies. It is a medium which helps
both the parties to get what they need. When there are such opportunities overflowing, the
potential candidates will have their choice to choose the best possible job opportunity. With this
situation, the HR Managers should find the best talent by giving them the best package and best
work environment. Therefore, attracting the top talent for the job requirement is one of the
biggest challenges that the HR Managers face currently.

Managing Diversity and Improving Cultural Sensitivity

Whilst there is a burst of diversity and networking amongst the staffs in a company, there ought
to be some rules to regulate the work culture. When in the past where people working in a
company are from the same locality and shared a similar culture, it wasn't a problem to educate
the staffs about the need to respect other cultures. But now as the company hires candidates from
different parts of the country the HR needs to address cultural and ethnic sensitivity among the
workers. The HR Managers should also take necessary steps to make employees from different
backgrounds feel included in the company.

Need to Address the Change

Change is probably the one thing that every human being is afraid of. It is inevitable. Let it be
the technological change or even the changes caused by the employees. Nature and the ability to
work changes over the course of time. Therefore the HR Managers should be equipped with
dealing with sudden changes like an immediate need for training or any substitution for a staff
who is gone for a leave of absence.

The HRM is not only attributed to just managing employee happiness, their work, and diversity,
it should also take care of the changes happening to the company by other factors and act
accordingly. This is yet another challenge that the HR faces.

Retaining the Talent Pool in the Company

Another serious challenge faced by HR is to retain the employees and not let the talent drain
from the company. It is common for the employees to move on for a change after 4 or 5 years in
a company. For this reason, the company should never put all its bet on an individual. However,
the talent pool should not be declining as the employees move to a different company. Therefore,
in order to keep them working at the same place, the company should provide them the different
tasks which would motivate them and give them a chance to revive their usual work. The
company should also give the employee's salary increments and promotions for keeping the
talent pool the same with them.

Induce Conductive Working Environment for the Staff

A conductive working environment is one which would enable better working conditions and
support the staffs to work to the fullest of their potential. It is known that the better working
condition is directly proportional to the better efficiency of the staffs, which in turn is
proportional to the overall company growth. HR should always be monitoring the teams and act
on the teams which require motivation or additional training.

Providing rewards to whole working employees by giving additional break time or introducing
some sort of game time in the midday will freshen up the tiring work of the day. It will revive the
workers' mind and help them to view the daily chores at a fresh perspective. These methods are
implemented in major MNCs’ like Google where they have separate places like a game room.
The Challenges of HR Managers are very dynamic. As there are changes happening in every
sector, so does the challenges faced by the HRM.

Roles and Responsibilities of HR professionals

1. Human Resource Planning

HR managers are responsible for planning and achieving organizational objectives. They usually
engage in identifying, preparing, and executing business goals with top-level executives.

This proactive participation in planning enables HR managers to gain a thorough understanding

of the activities required to support the sustainable growth of the company. This, in turn,
empowers HRs to assign the right resources to the right project and ensures timely delivery.

The role of HR manager includes analyzing and acknowledging team leaders (TL) about their
expected vs. actual results. They also help TLs better understand their target and create strategies
to achieve them.

2. Job Analysis and Design

As mentioned above, human resource planning requires assigning the right resources to the right
project. And if the right person is not in the organization, HR managers are responsible for
designing the job analysis to hire them.

A job analysis includes:

 Job description
 Employee’s position in the organization
 Who the employee should report to
 Resources the employee will need to perform the job efficiently
 Individual data related to the post, such as technical skills, work experience, etc.
 Work schedule
 Salary and incentives
 Personal attributes, such as personality, values, and interests
In addition to this, The responsibilities of the HR manager includes:

 Job rotation: Transferring employees from one task to another depending on the
requirement and their skills
 Job enlargement: Merging previously distributed (similar) tasks into one job
 Job enrichment: Adding more responsibility to an employee’s job
 Creating high-performance working groups: Building teams to complete tasks that
require high levels of performance

3. Hiring Candidates

Finding and hiring the right talent is a very complex process. Modern HR managers do more
than just post job requirements in portals to fill open positions. They develop strategic solutions
to attract the right candidates to fulfill the demands of the business. An HR manager might also
be responsible for a company’s employer brand reputation—or at minimum, guiding the
branding. Employer branding is a critical part of communicating a company’s culture and work-
life balance to potential employees. As more and more candidates search for open positions via
social media, managing employer brand is likely going to overlap with an HR manager’s job
duties.

From screening potential candidates on job portals and social platforms like LinkedIn to
interviewing them, HR managers have to follow an organized approach for hiring the best
suitable employee for the organization.

Once an applicant is selected, HR managers design offer letters documents, scan to email them to
the candidate and onboarding procedures. In case, a candidate backs out at the last moment,, HR
managers are bound to convince them to join the organization. If they still insist not to, HR
managers need to repeat the hiring process to fill open positions.

4. Training and Development

Hiring the best candidates is just half the job. HR managers need to train and upskill them to
maximize their return on investment.

The type of training and development new employees require depends on their experience. For
example, if they are freshers, managers might need to arrange for skill-development training
programs to ensure their work meets the industry standards.
However, if the recruits already have a few years of experience, managers might only need to
train them about company policies.

HR managers are also answerable for the quality of training. If most of the recruits are unable to
pass the assessments, it indicates that either the trainer or the training program is not compliant
with the industry standard, for which the HR manager will be held accountable.

5. Design Workplace Policies

It is essential for HR managers to design workplace policies to reduce conflicts, legal issues, and
improve employee productivity. These policies are designed in a way that protects the interests
of both the employees and employers alike.

Though workplace policies differ from organization to organization, the things it includes remain
the same in every company, such as:

 Standard operating procedures

 Anti-harassment and non-discrimination
 Paid leaves, sick leaves, and time-off benefits
 Meal and break periods
 Time tracking
 Employee attendance and punctuality

HR managers also need to comply with federal, state, and local laws while designing workplace
policies. Some laws require managers to communicate the workplace policies in writing. If you
are an HR manager (or aspiring to be), make sure to stay on top of the local laws to avoid issues
later.

6. Monitor Performance

Closely related to training, HR roles and responsibilities include examining employee

performance records to identify the scopes of improvement and arranging training workshops to
upskill them.
93% of employees say professional growth is a priority. By providing employees with a chance
to learn something new and grow professionally, you can create a positive environment and
boost employee loyalty.

Besides, improving your employees’ skills brings additional benefits to the organization.

 First, they feel they are a vital part of the company

 Second, due to increased job satisfaction, they will give their best in each task

The way you help employees improve their performance depends on the available resources. For
instance, if you have a high budget, you can arrange trainers to personally analyze and train them
to achieve better results. If not, you can enroll them to attend conferences, webinars, online
courses, etc.

7. Maintaining Work Culture

As an HR manager, it is your responsibility to shape and maintain organizational culture. It is

essential to create a positive impression of the company from day one, so the new employees
know what to expect. Besides, a person’s performance depends largely on the environment he is
working in. Therefore, you need to instill a certain level of comfort to eliminate any stressful
atmosphere that might affect employees’ performance.

It is also vital to have an open-door policy so that employees can communicate their problems
freely. This helps improve employee job satisfaction and retain talent. Additionally, consider
planning company events where employees can showcase their non-work-related talents like
singing, dancing, mimicry, etc. It enhances the overall brand image and spreads positivity
throughout the organization.

8. Resolve Conflict

In every organization, employees come from diverse backgrounds. And when people with
opposite opinions meet, the chances of having a conflict rise significantly.
Whether the issue is between two employees or an employee and the management, it’s the HR
manager who has to intervene and resolve it. Besides, the HR manager must listen to both parties
without being biased or judgemental. They also need to go to the root of the matter, which
includes questioning other employees.

Depending on the type of conflict, HR managers also hold the right to fire an employee.
However, this situation usually arises in cases of harassment in the office.

9. Ensure Health and Safety of Employee

Employees are the asset of the organization. Unless they are safe and healthy, they won’t be able
to give their best to the company. Thus, HR managers need to ensure the health and safety of
employees.

The way you plan for your employees’ health, and safety varies from company to company. For
instance, for organizations that provide cab services to their staff, HR managers need to make
sure that they are coming/reaching safely. It usually requires them to track the GPS of company
cabs, call the employee/driver, keep a tab on the expected vs. actual arrival time.

Other roles of HR managers, in terms of health and safety of employees, include:

 Arranging an on-premise doctor for emergencies

 Arranging an on-premise ambulance
 Setting employee health benefits
 Setting up a sick room in the office for employees to rest, in case they are unwell
 Organizing fire safety training workshops
 Ensuring the food in the canteen (if you have) is hygienic

10. Rewards and Incentives

Lastly, HR managers need to reward employees based on their performance and other factors
like punctuality. The biggest benefit of rewarding workers is that it creates a desire for other
employees to excel at their job in the hope of getting incentives. The type of rewards and
incentives could be anything, such as holiday packages, a word of appreciation and recognition,
promotions, or bonuses.
Additionally, you can consider giving the power to employees to choose the type of reward they
want. Let them decide whether they want a bonus, flexible work times, leave, etc. It will make
them feel valued, increase job satisfaction, and boost productivity.

Competencies of HR professionals

1. Effective Communication

Hr professionals must have impeccable communication skills. When the job is to deal with
people, it becomes paramount for any HR professional to have strong communication skills.
They constantly deal with people over the phone or email, draft company policies, and conduct
interviews.

Therefore any HR professional must have excellent writing skills to avoid any
miscommunication. They must actively listen to understand others’ perspectives and bring a
more honest discussion between them and the managers.Effective communication helps HR
managers to handle employee grievances empathically and also manage any internal conflicts
effectively.

2. Relationship-building

Building relationships between the HR group and other departments is one of the critical
components to bring business together. This helps in maximizing the potential of the
organization and its success. Relationships in the workplace often need a great deal of care and
communication. There are also some casual relationships (think of vendors and dealers who
deliver goods to your workplace) that need your attention. Therefore, HR professionals must
emphasize building relationships among every department so that they can thrive together.

HR professionals must listen and respond to the concerns of the other departments and act as a
glue to keep them stick together. Since a workplace has diverse individuals, HR professionals
must introduce inclusive policies, and everyone feels welcomed in the workplace.

3. Adaptability Skills

The world of business is changing every day. And you cannot get too comfortable but adapt
yourself to the changing times. These will allow HR managers to rethink their current company
policies and curate new ones that are more relevant and effective. Since HR managers actively
participate in decision-making and business strategies, they need to forecast the need for
changes.For fostering a healthy work environment, HR Professionals must develop new tactics to
keep the employees engaged and actively invest themselves in finding ways to retain them.

4. Technological Skills

With the whole world going increasingly digital, HR managers need the ability to adapt to new
technology. HR managers are expected to handle a variety of duties that includes-

 Recruiting talented employees.

 Managing onboarding and training for new hires.
 Tracking payroll.
 Handling employee grievances.
 Retaining good employees.

Technological skills give Hr professionals an edge while managing the above duties and more.

For example, social media tools help them posting job openings online and reach out to more
potential candidates. And at the same, Talent Acquisition Software (ATS) makes their jobs
incredibly easier while recruiting and hiring. Therefore, it is very critical for HR professionals to
have good digital skills.

5. Keep Learning

As they say, learning is a never-ending process. The same holds for any HR professionals. The
work culture of today’s organizations demands better management, support, growth, and
development. Deepening your knowledge in the Human Resource Management field and
applying new Hr trends will always help you become the front runner. Therefore, prosperous HR
managers look to develop and understand the benefits of new Hr research outcomes and connect
them to the current trends in the HR field.

6. Critical Thinking

Linder Elder, a prominent scholar, describes Critical thinking as “Self-guided, self-disciplined,

thinking which attempts to reason at the highest level of quality in a fair-minded way.
Critical thinking is one of the most essential attributes for anyone in HR. Whether you are hiring
a new candidate, negotiating pay rises, or deciding how to deal with employee grievances, it is
imperative to critically analyze the situation and make decisions.

Critical thinking helps bring a rational perspective and help HR professionals to deal with a
difficult situation with ease. Either it is conflict resolution or addressing an issue with the
employees, and critical thinking helps reconstruct or put forward views and ideas that work best
for the work environment.

7. Interpersonal skills

Interpersonal skills are the soft skills that hold great value to HR professionals. These skills
include active listening, verbal and non-verbal communication, social awareness, self-
management, accountability, and so on. People with high interpersonal skills are intuitively good
communicators and efficient managers. They show the right attitude and aptitude while
communicating. Interpersonal skills allow one to communicate successfully with others at work
and in the broader community. Some people are born with this kind of ability, but they can all be
enhanced with practice. Expressing respect, settling conflicts, and hearing well are all
interpersonal skills worth learning for any HR professional.

HR Operations:
Human Resources Operations, also known as HR Ops, is the department that supports the entire
employee lifecycle and assists your team in their day-to-day tasks. The scope of HR Operations
is multi-faceted. It plays a crucial role in developing a company’s people strategy to reach its
business goals. HR Operations is a part of an effective HR service delivery model.

Key responsibilities of HR Operations

Depending on the size of your organization, the HR Operations teams could look very different.
They can focus on specific regions/segments of the business or have a generalist approach. In
either case, they have the following responsibilities:

Administration: The HR Operations team is responsible for many administrative tasks that keep
the business running. These tasks include payroll management, staff data entry, and maintenance.
They are also responsible for maintaining the human resources information system – also known
as HRIS. This program is used to track and maintain all HR-related data, such as employee
contracts, non-disclosure agreements, compensation, employees’ personal data, and more.

Compliance: Compliance is one of the most important tasks your HR Operations department is
responsible for. They make sure that, legally, your organization is aligned with country-specific
labor laws when tasked with things such as hiring, workplace rules, and employee treatment. HR
Operations outlines the HR compliance policies that need to be followed internally.

Recruitment: If your organization is large enough to have a recruiting team, HR Operations will
focus on headcount planning. That is, making sure there are enough people in the organization so
that the business runs well, but not too many people that you waste resources. If you have a
smaller organization and no dedicated recruitment team, HR operations will pick up everything
from advertising, interviewing, and making job offers to candidates.

Onboarding: OfficeVibe’s Employee Engagement report found that 69% of employees are more
likely to stay with their company for at least three years if they experienced great onboarding.
HR Operations develops a structured onboarding program. They support managers in delivering
a positive onboarding experience to their new team members.

Employee Relations (ER): Employee relations refer to a company’s efforts to manage

relationships in an organization. HR Ops focuses on preventing and resolving issues between
coworkers and management. They also concentrate on understanding how your staff feels about
their job, company environment, and overall well-being.

Offboarding: Offboarding happens when an employee has either decided to leave the company
or was fired. It involves administrative tasks like ensuring the employee returns company
property, notifying IT and payroll about personnel changes, and preparing any paperwork the
employee might need to sign. Offboarding also involves exit interviews, which are conversations
between the employee, manager/HR, and the leadership team. During this chat, HR Operations is
looking for feedback from the leaving team member on how to create a better work environment
and employee experience for the current and future employees.

The main goals of HR Operations

Building a sustainable organization: Your company will only thrive when you have a
sustainable growth plan. HR Operations’ goal is to ensure that your organization has a headcount
strategy, succession plans for leadership roles, internal talent development goals, and career
management. Without these strategies, your company cannot adapt quickly to external or internal
changes.
Working on improving employee relations: When employees have strong, supportive
relationships with their coworkers and managers, the entire company benefits. Numerous studies
show that happy employees are more productive and will stay with your organization longer. The
goal of employee relations is just that – to make sure your staff works in an environment where
they can thrive and will have support if any issues pop up between coworkers. HR Ops goes
about this by creating clarity for employees with what is expected of them and how to work
within the company’s structure. They might also be present during performance reviews and
feedback sessions, among other things.

Implementing and maintaining HR best practices: In short, HR best practices are universal
processes and techniques that provide organizations with increased business performance results,
regardless of the company’s industry. HR Ops is responsible for implementing and monitoring
HR best practices in different departments of your organization. That way, they’re ensuring that
the company is on track to achieve its goals.

What is Human Resource Planning ?

Human Resource Planning (HRP) is the process of forecasting the future human resource
requirements of the organization and determining as to how the existing human resource capacity
of the organization can be utilized to fulfill these requirements. It, thus, focuses on the basic
economic concept of demand and supply in context to the human resource capacity of the
organization.

It is the HRP process which helps the management of the organization in meeting the future
demand of human resource in the organization with the supply of the appropriate people in
appropriate numbers at the appropriate time and place. Further, it is only after proper analysis of
the HR requirements can the process of recruitment and selection be initiated by the
management. Also, HRP is essential in successfully achieving the strategies and objectives of
organization. In fact, with the element of strategies and long term objectives of the organization
being widely associated with human resource planning these days, HR Planning has now became
Strategic HR Planning.

Objectives of Human Resource Planning

Achieve Goal: Human Resource Planning helps in achieving individual, Organizational &
National goals. Since Human resource planning is linked with career planning, it can able to
achieve individual goal while achieving organisational and national goal.
Estimates future organizational structure and Manpower Requirements: Human Resource
Planning is related with number of Personnel required for the future, job-family, age distribution
of employees, qualification & desired experience, salary range etc and thereby determines future
organisation structure.

Human Resource Audit: Human resource planning process is comprised of estimating the
future needs and determining the present supply of Manpower Resources. Manpower supply
analysis is done through skills inventory. This helps in preventing over staffing as well as under-
staffing.

Job Analysis: The process of studying and collecting information relating to operations and
responsibilities of a specific job is called Job analysis. Job analysis is comprised of job
description and job specification. Job description describes the duties and responsibilities of a
particular job in an organized factual way. Job specification specifies minimum acceptable
human qualities necessary to perform a particular job properly.

Human Resource Planning Process

The Human Resource Planning is a process of forecasting the organization’s demand for and
supply of manpower needs in the near future.

Determining the Objectives of Human Resource Planning: The foremost step in every
process is the determination of the objectives for which the process is to be carried on. The
objective for which the manpower planning is to be done should be defined precisely, so as to
ensure that a right number of people for the right kind of job are selected.The objectives can vary
across the several departments in the organization such as the personnel demand may differ in
marketing, finance, production, HR department, based on their roles or functions.

Analyzing Current Manpower Inventory: The next step is to analyze the current manpower
supply in the organization through the stored information about the employees in terms of their
experience, proficiency, skills, etc. required to perform a particular job.Also, the future vacancies
can be estimated, so as to plan for the manpower from both the internal (within the current
employees) and the external (hiring candidates from outside) sources. Thus, it is to be ensured
that reservoir of talent is maintained to meet any vacancy arising in the near future.
Forecasting Demand and Supply of Human Resources: Once the inventory of talented
manpower is maintained; the next step is to match the demand for the manpower arising in the
future with the supply or available resources with the organization.Here, the required skills of
personnel for a particular job are matched with the job description and specification.

Analyzing the Manpower Gaps: After forecasting the demand and supply, the manpower gaps
can be easily evaluated. In case the demand is more than the supply of human resources, that
means there is a deficit, and thus, new candidates are to be hired.Whereas, if the Demand is less
than supply, there arises a surplus in the human resources, and hence, the employees have to be
removed either in the form of termination, retirement, layoff, transfer, etc.

Employment Plan/Action Plan: Once the manpower gaps are evaluated, the action plan is to be
formulated accordingly. In a case of a deficit, the firm may go either for recruitment, training,
interdepartmental transfer plans whereas in the case of a surplus, the voluntary retirement
schemes, redeployment, transfer, layoff, could be followed.

Training and Development: The training is not only for the new joinees but also for the existing
employees who are required to update their skills from time to time.After the employment plan,
the training programmes are conducted to equip the new employees as well as the old ones with
the requisite skills to be performed on a particular job.

Appraisal of Manpower Planning: Finally, the effectiveness of the manpower planning process
is to be evaluated. Here the human resource plan is compared with its actual implementation to
ensure the availability of a number of employees for several jobs.At this stage, the firm has to
decide the success of the plan and control the deficiencies, if any.

Thus, human resource planning is a continuous process that begins with the objectives of Human
Resource planning and ends with the appraisal or feedback and control of the planning process.
What is Human resource information system?
HRIS stands for Human Resources Information System. The HRIS is a system that is used to
collect and store data on an organization’s employees.In most cases, an HRIS encompasses the
basic functionalities needed for end-to-end Human Resources Management (HRM). It is a
system for recruitment, performance management, learning & development, and more.

An HRIS is also known as HRIS software. This is a bit confusing as it implies that different
systems can have different software running on them. However, this is not the case. The HRIS is,
in essence, an HR software package.The HRIS can either run on the company’s own technical
infrastructure, or, more common nowadays, be cloud-based. This means that the HR software is
running outside of the company’s premises, making it much easier to update.

Other commonly used names are HRIS system and HRMS, or Human Resources Management
system. These are all different words for the same thing. Collectively, these systems are also
called Human Capital Management systems, or HCM. In this article, we will use the terms HRIS
and HRIS systems interchangeably.

Benefits of Human resource information system

As we discuss in our Digital HR Certificate Program, using an HRIS has a number of clear
benefits. That’s why companies of all sizes implement this tool to support their people
operations. Centrally, the HRIS holds employee information. A wide range of employee data is
then easily accessible, in one system.

Record-keeping. An HRIS is a record-keeping system that keeps track of changes to anything

related to employees. The HRIS can be seen as the single source of truth when it comes to
personnel data.

Compliance. Some data is collected and stored for compliance reasons. This includes material
for the identification of employees in case of theft, fraud, or other misbehaviors, first contact
information in case of accidents, citizens identification information for the tax office, and
expiration dates for mandatory certification. All this information can be stored in the HRIS. It is
essential that data is stored safely and securely, in line with GDPR regulations.

Efficiency. Having all this information stored in one place not only benefits accuracy but also
saves time. Some companies still keep a lot of data about employees as physical paperwork.
Finding the right folder, and locating the right sheet, can take up a lot of staff time.

HR strategy. The HRIS permits the tracking of data required to advance the HR and business
strategy. Depending on the priorities of the organization, different data will be essential to track.
This is where the HRIS shines.

Self-Service HR. A final benefit is the ability to offer self-service HR to employees and
managers. This enables employees to manage their own affairs. When done right, the HRIS can
offer a good employee experience. Keep in mind that not all HRIS systems offer this in a user-
friendly manner!

Working with an HRIS has multiple benefits for the organization, HR, and the employee. Using
an HRIS becomes interesting when you have between 30 to 50 employees.At this time,
managing this basic information in Excel becomes cumbersome and simple procedures like
approving employee holidays need to be standardized.Using an HRIS is especially beneficial for
large organizations which typically use more advanced HRIS systems to support different HR
functions. Small businesses would suit a more basic HRIS.

HRIS(Human resource information system) functions

Applicant Tracking System (ATS). This software handles all the company’s recruiting needs. It
tracks candidate information and resumes, enables recruiters to match job openings to suitable
candidates from the company’s application pool, and helps in guiding the hiring process.

Payroll. Payroll automates the pay process of employees. Contractual data and information on
new hires is often entered into this system – sometimes combined with time & attendance data –
and at the end of the month, payments orders are created.
Benefits administration. Another functionality of the HRIS is benefits management. Employee
benefits are an important aspect of compensation and are also managed in this system. More
advanced systems offer an employee self-service model for employee benefits. In this case,
employees can select the benefits they are looking for themselves. One may want more paternity
leave, the other one a more expensive company car. This self-service approach to benefits is also
called a cafeteria model.

Time & Attendance. This module gathers time and attendance data from employees. These are
especially relevant for shift workers where employees clock in and out. Back in the day,
employees often wrote down their working hours on a piece of paper. Then, the manager would
manually enter the data into a time tracking system. Based on this data, payment orders were
generated and paid to all employees. Nowadays, workers often check into work by fingerprint or
a card that is synced with an HRIS. This gives an exact time for arrival and departure. Any issues
with lateness are easily detected.

Training. Learning and development is a key element when it comes to employee management.
This module allows HR to track qualification, certification, and skills of the employees, as well
as an outline of available courses for company employees. This module is often referred to as an
LMS, or Learning Management System, when it’s a stand-alone. An LMS usually includes
available e-learning and other courses to be followed by employees.

Performance management. Performance management is a key part of managing people.

Performance ratings are generated once or multiple times a year by the direct manager or peers
of the employee.

Succession planning. Creating a talent pipeline and having replacements available for key roles
in the organization is another key component of an HRIS.

Employee self-service. Employee self-service has already been mentioned. Organizations are
focusing increasingly on having employees and their direct supervisors manage their own data.
Requests like holidays can be asked for by the employee him/herself. After approval, these are
then immediately saved into the system (and registered to track for payroll and benefits
purposes).
Reporting & Analytics. A much rarer module in HRIS systems is reporting and analytics.
Modern systems enable the creation of automated HR reports on various topics like employee
turnover, absence, performance, and more. Analytics involves the analysis of these insights for
better-informed decision making. We’ll explain more about this in the section below.

Contemporary issues in human resource management

The human resources department of today operates very differently from the human resources
department of only a decade ago. The changing job market, regulatory demands and compliance
issues have forced human resource managers to become nimble partners in the strategic
development of businesses. Business owners need to understand the contemporary issues that
human resources managers face, so that they may understand how to utilize this valuable
resource to the best advantage.

The Gig Economy

Many talented people have decided to leave the traditional workforce in exchange for freelance
work in their area of expertise. This gives them desired flexibility in their lifestyle, and is a great
selling point for potential clients, because overhead is less when you are a contract employee.
Although this is great system for the talent, working with a different system is a challenge for
human resources managers. If the best talent is no longer available for an in-house position,
human resource managers must find ways to either create long-term contracts or to develop other
suitable talents.

Innovation and Automation

Human resources departments are often tasked with training and developing employees. This
means that when a new company rollout includes technological advances, the human resources
department needs to prepare itself to train people. In some instances, this means coordinating
with technology developers to create programming that is easily rolled out to employees. In other
cases, the human resources department must help roll out the program and help run the training
programs internally.

Changing Regulatory Issues

Compliance with regulatory issues is a primary duty of human resources managers. While this
job duty hasn't changed over the years, what it covers evolves constantly. This means that human
resource managers need to be on top of all changes. An example of changes is new laws
regarding healthcare benefits.Privacy laws are constantly requiring updated disclosures and
employee training and acknowledgments. If the human resources manager is not current on new
regulations and laws, the company is exposed to lawsuits, penalties and potential public scrutiny.

Recruiting and Retaining Top Talent

Finding and keeping great talent is difficult, especially for small businesses that don't have the
resources to offer huge compensation and benefits packages. This means that human resources
managers are always looking to find talented, loyal prospects for the company. It is important for
human resources managers to look for talent internally and externally, as it is not enough to just
go to job fairs or to reach out to people on LinkedIn. HR managers must not only cultivate these
relationships, they must also cultivate internal employees that are suitable for development and
promotion.

Diversity and Harmony Issues

Business owners know that a diverse workforce that's working together in harmony will build
stronger teams, yield better ideas and offer broader customer satisfaction. However, without the
harmony, that diverse workforce has low morale, and therefore, low productivity. This isn't
solely a company culture and productivity issue, either. Diversity is a serious legal liability if
employees or customers are feeling harassed in some way.

Human resource managers must understand diversity laws, and must ensure that the company
has the protocol to deal appropriately with complaints, and also to focus on harmonizing the
diversity. This is done with training and workshops that build cohesiveness and embrace the
differences in each other.