GE3754 HUMAN RESOURCE MANAGEMENT

UNIT I INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 9

The importance of human resources – Objective of Human Resource Management –

Human resource policies - Role of human resource manager.

Introduction
Human beings are social beings and hardly ever live and work in isolation. We always plan, develop
and manage our relations both consciously and unconsciously. The relations are the outcome of our
actions and depend to a great extent upon our ability to manage our actions. From childhood each
and every individual acquire knowledge and experience on understanding others and how to
behave in each and every situations in life. Later we carry forward this learning and understanding in
carrying and managing relations at our workplace. The whole context of Human Resource
Management revolves around this core matter of managing relations at work place.
Since mid 1980’s Human Resource Management (HRM) has gained acceptance in both academic
and commercial circle. HRM is a multidisciplinary organizational function that draws theories and
ideas from various fields such as management, psychology, sociology and economics.
There is no best way to manage people and no manager has formulated how people can be
managed effectively, because people are complex beings with complex needs. Effective HRM
depends very much on the causes and conditions that an organizational setting would provide. Any
Organization has three basic components, People, Purpose, and Structure.

In 1994, a noted leader in the human resources (HR) field made the following observation: Yesterday,
the company with the access most to the capital or the latest technology had the best competitive
advantage;
Today, companies that offer products with the highest quality are the ones with a leg up on the
competition; But the only thing that will uphold a company’s advantage tomorrow is the caliber
of people in the organization.
That predicted future is today’s reality. Most managers in public- and private sector firms of all
sizes would agree that people truly are the organization’s most important asset. Having competent
staff on the payroll does not guarantee that a firm’s human resources will be a source of
competitive advantage. However in order to remain competitive, to grow, and diversify an
organization must ensure that its employees are qualified, placed in appropriate positions,
properly trained, managed effectively, and committed to the firm’s success. 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).

Opening Case
On October 3, 2003, Anant Dalvi and Akhtar Khan, who worked as contract workers in Tata
Electric Company until they were laid off in 1996, doused themselves with kerosene and set
themselves ablaze even as their co-workers protested before the company’s offices. While Dalvi
died on the spot, Khan died a few days later.
The Tata Electric Company said they were no longer on their payroll and were not permanent
workers. Employees union had taken up their case and filled petition in the Labour Court before
their contracts were terminated. The court directed the company not to terminate their services without
following the due process of law. Despite this their services were terminated on June 30, 1996.
The company union promised the workers that they would renegotiate. Yet on the night before they
kiled themselves when Khan and Dalvi spoke to the union leader Shinde, they were told that
nothing more could be done for them. It is this that led them to take their lives. Dalvi has been in
service as apeon for17 years and Khan had been employed for 19 years. But their services were not
regularized. Such workers draw salary much less than the permanent employees.
This is an example of the problem that comes under the purview of Human Resource Management-
the main concept elaborated in this chapter.

1.0 What is Human Resource Management?

HRM is the study of activities regarding people working in an organization. It is a managerial function
that tries to match an organization’s needs to the skills and abilities of its employees.
1.0.1 Definitions of HRM
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 personnelfunction whichis 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 Invancevich 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.

1.1 Nature of HRM

HRM is a management function that helps manager’s to recruit, select, train and develop members for
an organization. HRM is concerned with people’s dimension in organizations.
The following constitute the core of HRM
1. HRM Involves the Application of Management Functions and Principles. The
functions and principles are applied to acquiring, developing, maintaining and providing
remuneration to employees in organization.
2. Decision Relating to Employees must be Integrated. Decisions on different aspects
of employees must be consistent with other human resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an
organization will result in betterment of services to customers in the form of high quality
products supplied at reasonable costs.
4. HRM Functions are not Confined to Business Establishments Only but applicable to
non- business organizations such as education, health care, recreation and like.
HRM refers to a set of programmes, functions and activities designed and carried out in order to
maximize both employee as well as organizational effectiveness.

1.2 Scope of HRM

The scope of HRM is indeed vast. All major activities in the working life of a worker – from the time of
his or her entry into an organization untilhe or she leaves the organizations comes under the purview of
HRM. The major HRM activities include HR planning, job analysis, job design, employee hiring,
employee and executive remuneration, employee motivation, employee maintenance, industrial
relations and prospects of HRM.
The scope of Human Resources Management extends to:
 All the decisions, strategies, factors, principles, operations, practices, functions, activities
and methods related to the management of people as employees in any type of organization.
 All the dimensions related to people in their employment relationships, and all the
dynamics that flow from it.
 Figure 1.1: Scope of HRM

The scope of HRM is really vast. All major activities n the working life of a worker – from the time of
his or her entry into an organization until he or she leaves it comes under the purview of HRM.
American Society for Training and Development (ASTD) conducted fairly an exhaustive study in
this field and identified nine broad areas of activities of HRM.

These are given below:

 Human Resource Planning
 Design of the Organization and Job
 Selection and Staffing
 Training and Development
 Organizational Development
 Compensation and Benefits
 Employee Assistance
 Union/Labour Relations
 Personnel Research and Information System

a) Human Resource Planning: The objective of HR Planning is to ensure that the organization
has the right types of persons at the right time at the right place. It prepares human resources
inventory with a view to assess present and future needs, availability and possible shortages
inhuman resource. Thereupon, HR Planning forecast demand and supplies and identify
sources of selection. HR Planning develops strategies both long-term and short-term, to meet
the man-power requirement.
b) Design of Organization and Job: This is the task of laying down organization structure,
authority, relationship and responsibilities. This will also mean definition of work contents for
 each position in the organization. This is done by―job description‖. Another important step is
―Job specification‖. Job specification identifies the attributes of persons who will be most
suitable for each job which is defined by job description.
c) Selection and Staffing: This is the process of recruitment and selection of staff. This
involves matching people and their expectations with which the job specifications and career
path available within the organization.
d) Training and Development: This involves an organized attempt to find out training needs of
the individuals to meet the knowledge and skill which is needed not only to perform current
job but also to fulfil the future needs of the organization.
e) Organizational Development: This is an important aspect whereby ―Synergetic effect‖
is generated in an organization i.e. healthy interpersonal and inter-group relationship
within the organization.
f) Compensation and Benefits: This is the area of wages and salaries administration where
wages and compensations are fixed scientifically to meet fairness and equity criteria. In
addition labour welfare measures are involved which include benefits and services.
g) Employee Assistance: Each employee is unique in character, personality, expectation
and temperament. By and large each one of them faces problems everyday. Some are
personal some are official. In their case he or she remains worried. Such worries must be
removed to make him or her more productive and happy.
h) Union-Labour Relations: Healthy Industrial and Labour relations are veryimportant for
enhancing peace and productivity in an organization. This is one of the areas of HRM.
i) Personnel Research and Information System: Knowledge on behavioral science and
industrial psychology throws better insight into the workers expectations, aspirations and
behaviour. Advancement of technology of product and production methods have created
working environment which are much different from the past. Globalization of economy has
increased competition many fold. Science of ergonomics gives better ideas of doing a work
more conveniently by an employee. Thus, continuous research in HR areas is an unavoidable
requirement. It must also take special care for improving exchange of information through
effective communication systems on a continuous basis especially on moral and motivation.
HRM is a broad concept; personnel management (PM) and Human resource development (HRD)
are a part of HRM.

1.3 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: helping 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) Helping 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) Helping 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 is in compliance with provincial/territorial and federal laws
affecting the workplace (such as human rights, employment equity, occupational health
and safety, employment standards, and labour 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 employees 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.

Personnel

Figure 1.2: Objectives of HRM

1) Societal Objectives: seek to ensure that the organization becomes socially responsible to
the needs and challenges of the society while minimizing the negative impact of such
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.
Table 1.1 HRM Objectives and Functions

HRM Objectives Supporting Functions

1. Societal Objectives Legal compliance
Benefits
Union- management relations
2. Organizational Objectives Human Resource Planning
Employee relations
Selection
Training and development
Appraisal
Placement
Assessment
3. Functional Objectives Appraisal
Placement
Assessment
4. Personal Objectives Training and development
Appraisal
Placement
Compensation
Assessment

1.4 Functions of HRM

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. All the functions of
HRM are correlated with the core objectives of HRM (Table 1.1). For example personal
objectives is sought to be realized through functions like remuneration, assessment etc.
 Figure 1.3 : Functions of HRM
HR management can be thought of as seven interlinked functions taking place within organizations,
as depicted in Figure 1.3 Additionally, external forces—legal, economic, technological, global,
environmental, cultural/geographic, political, and social—significantly affect how HR functions are
designed, managed, and changed. The functions can be grouped as follows:
 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
end 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.
 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 ofpay 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 ofworkers 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 labour relation refers to the
interaction with employees who are represented by a trade union. Unions are organization
of employees who join together to obtain more voice in decisions affecting wages, benefits,
working conditions and other aspects of employment. With regard to labour relations the major
function of HR personnel includes negotiating with the unions regarding wages, service
conditions and resolving disputes and grievances.
1.5 Role of HRM
The role of HRM is to plan, develop and administer policies and programs designed to make optimum
use of an organizations human resources. It is that part of management which is concerned with the
people at work and with their relationship within enterprises. Its objectives are: (a) effective
utilization of human resources, (b) desirable working relationships among all members of the
organizations, and (c) maximum individual development. Human resources function as primarily
administrative and professional. HR staff focused on administering benefits and other payrolland
operational functions and didn’t think of themselves as playing a part in the firm’s overall strategy.
HR professionals have an all-encompassing role. They are required to have a thorough knowledge of
the organization and its intricacies and complexities. The ultimate goal of every HR person should
be to develop a linkage between the employee and organization because employee’s
commitment to the organization is crucial.
The first and foremost role of HR personnel is to impart continuous education to the employees about
the changes and challenges facing the country in general and their organization in particular. The
employees should know about the balance sheet of the company, sales progress, and diversification
of plans, share price movements, turnover and other details about the company. The HR
professionals should impart such knowledge to all employees through small booklets, video films
and lectures.
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, develop
or test how HRD In general has improved individual and organizational performance.
Different management gurus have deliberated different roles for the HR manager based on the
major responsibilities that they full fill in the organization. Few of the commonly accepted models are
enumerated below.
Pat Mc Lagan has suggested nine roles that are played by HR practitioners
 1. To bring the issues and trends concerning an organization’s external and internal people to
the attention of strategic decision makers and to recommend long term strategies to
support organizational excellence and endurance.
2. To design and prepare HR systems and actions for implementation so that they can
produce maximum impact on organizational performance and development.
3. To facilitate the development and implementation of strategies for transforming one’s
own organization by pursuing values and visions.
4. To create a positive relationship with the customer’s by providing them with the best services;
to utilize the resources to the maximum and to create commitment among the people who
help the organization to meet the customers needs whether directly connected or indirectly
connected to the organization.
5. To identify the learning needs hence to design and develop structured learning programmes
and materials to help accelerate learning for individuals and groups.
6. To enable the individuals and groups to work in new situations and to expend \and change
their views so that people in power move from authoritarian to participative models of
leadership.
7. To help employees to assess their competencies, values and goals so that they can identify,
plan and implement development plans.
8. He also assists the individual employee to add values in the workplace and to focus on
the interventions and interpersonal skills for helping people change and sustain change.
9. He assesses the HRD practices and programmes and their impact and to communicate results
so that the organization and its people accelerate their change and development.
According to Dave Ulrich HR play’s four key roles.
1. Strategic Partner Role-turning strategy into results by building organizations that create value;
2. Change Agent Role- making change happen, and in particular, help it happen fast
3. Employees Champion Role—managing the talent or the intellectual capital within a firm
4. Administrative Role—trying to get things to happen better, faster and cheaper.
The role HR in organizations has undergone an extensive change and many organizations have
gradually oriented themselves from the traditional personnelmanagement to a human resources
management approach. The basic approach of HRM is to perceive the organization as a whole. Its
emphasis is not only on production and productivity but also on the quality of life. It seeks to achieve
the paramount development of human resources and the utmost possible socio-economic
development.
Current Classification of HR roles
According to R.L Mathis and J. H. Jackson (2010) several roles can be fulfilled by HR management.
The nature and extent of these roles depend on both what upper management wants HR
management to do and what competencies the HR staff have demonstrated. Three roles are typically
identified for HR. The focus of each of them, as shown in Figure 1.is elaborated below:
 Administrative Operational Actions Strategic HR
Personnel practices Managing employee Organizational/business
Legal compliance forms relationship issues strategies
and paperwork Employee advocate HR strategic or planning
Evaluation of HR
effectiveness.

Figure 1.4 : Current Classification of HR roles

Fig 1.4 Current Classification of HR Roles

1. Administrative Role of HR
The administrative role of HR management has been heavily oriented to administration and
recordkeeping including essential legal paperwork and policy implementation. Major changes have
happened in the administrative role of HR during the recent years. Two major shifts driving the
transformation of the
administrative role are: Greater use of technology and Outsourcing.

Technology has been widely used to improve the administrative efficiency of HR and the
responsiveness of HR to employees and managers, more HR functions are becoming available
electronically or are being done on the Internet using Web-based technology. Technology is being
used in most HR activities, from employment applications and employee benefits enrollments to e-
learning using Internet-based resources.
Increasingly, many HR administrative functions are being outsourced to vendors. This outsourcing
ofHR administrative activities has grown dramatically in HR areas such as employee assistance
(counseling), retirement planning, benefits administration, payroll services, and outplacement
services.

2. Operational and Employee Advocate Role for HR

HR managers manage most HR activities in line with the strategies and operations that have been
identified by management and serves as employee ―champion‖ for employee issues and concerns.
HR often has been viewed as the ―employee advocate‖ in organizations. They act as the voice for
employee concerns, and spend considerable time on HR ―crisis management,‖ dealing with employee
problems that are both work-related and not work-related. Employee advocacy helps to ensure
fair and equitable treatment for employees regardless of personal background or circumstances.
Sometimes the HR’s advocate role may create conflict with operating managers. However, without
the HR advocate role, employers could face even more lawsuits and regulatory complaints than they
do now.

The operational role requires HR professionals to cooperate with various departmental and
operating managers and supervisors in order to identify and implement needed programs and
policies in the organization. Operational activities are tactical in nature. Compliance with
equalemployment opportunity and other laws is ensured, employment applications are processed,
current openings are filled through interviews, supervisors are trained, safety problems are
resolved, and wage and benefit questions are answered. For carrying out these activities HR
manager matches HR activities with the strategies of the organization.
3. Strategic Role for HR
The administrative role traditionally has been the dominant role for HR. However, as Figure 1.4
indicates that a broader transformation in HR is needed so that significantly less HR time and fewer
HR staffs are used just for clerical work.

Differences between the operational and strategic roles exist in a number of HR areas. The strategic
HR role means that HR professionals are proactive in addressing business realities and focusing on
future business needs, such as strategic planning, compensation strategies, the performance of HR, and
measuring its results. However, in some organizations, HR often does not play a key role in formulating
the strategies for the organization as a whole; instead it merely carries them out through HR
activities.
Many executives, managers, and HR professionals are increasingly seeing the need for HR
management to become a greater strategic contributor to the ―business‖ success of
organizations. HR should be responsible for knowing what the true cost of human capital is for an
employer. For example, it may cost two times key employees’ annual salaries to replace them if they
leave. Turnover can be controlled though HR activities, and if it is successfulin saving the
companymoney with good retention and talent management strategies, those may be important
contributions to the bottom line of organizational performance.
The role of HR as a strategic business partner is often described as ―having a seat at the table,‖
and contributing to the strategic directions and success of the organization. That means HR is
involved in devising strategy in addition to implementing strategy. Part of HR’s contribution is to
have financial expertise and to produce financial results, not just to boost employee morale or
administrative efficiencies. Therefore, a significant concern for chief financial officers (CFOs) is
whether HR executives are equipped to help them to plan and meet financial requirements.
However, even though this strategic role of HR is recognized, many organizations still need to
make significant progress toward fulfilling it. Some examples of areas where strategic contributions can
be made by HR are:
 Evaluating mergers and acquisitions for organizational ―compatibility,‖ structural changes,
and staffing needs
 Conducting workforce planning to anticipate the retirement of employees at all levels and
identify workforce expansion in organizational strategic plans
 Leading site selection efforts for new facilities or transferring operations to international outsourcing
 locations based on workforce needs
 Instituting HR management systems to reduce administrative time, equipment, and staff by
using HR technology
 Working with executives to develop a revised sales
 compensation and incentives plan as new products
It is the era when for the competitive triumph of the organization there is a need to involve HRM
significantly in an integrated manner, which demands such capabilities from the HR specialists.
The role of HR shifted from a facilitator to a functional peer with competencies in other functions, and
is acknowledged as an equal partner byothers. The HR is motivated to contribute to organizational
objectives of profitability and customer satisfaction, and is seen as a vehicle for realization of quality
development. The department has a responsibility for monitoring employee satisfaction, since it is
seen as substitute to customer satisfaction.

According to McKinsey’s 7-S framework model HR plays the role of a catalyst for the
organization. According to this framework, effective organizational change is a complex
relationship between seven S’s. HRM is a total matching process between the three Hard S’s
(Strategy, Structure and Systems) and the four Soft S’s (Style, Staff, Skills and Super-ordinate
Goals). Clearly, all the S’s have to complement each other and have to be aligned towards a single
corporate vision for the organization to be effective. It has to be realized that most of the S’s are
determined directly or indirectly by the way Human Resources are managed, and therefore, HRM
must be a part of the total business strategy.

NEED/IMPORTANCE OF HRM POLICY

1. To Achieve the Objectives of the Organization:

Policies guide the employees to take action for achieving the objectives of the organization.
Hence, they must be known and well understood by everyone in order to concentrate efforts
on the objectives.
2. To Bring Uniformity in Decisions:
HR policies furnish the general standard on which decisions are taken. Various line
authorities take decisions in an organization keeping in view the HR policies. Thus,
uniformity of action is maintained in similar cases.
3. To Delegate Authority:
HR policies make delegation of authority possible, which means assigning the work to others
and give them authority to do it. HR policies help executives at various levels of decision
centres to act with confidence without consulting the superiors every time. HR policies give a
manager liberty to choose the alternatives provided and to decide upon the action.
4. To Achieve Better Control:
HR policies specify relationships among organization, management and workers. Therefore,
each group works for the achievement of the larger objectives of the organization without any
policy conflicts. Thus, HR policies provide better control.
5. To Evaluate Efficiency:
HR policies serve as standards in execution of work. Efficiency of a group may be evaluated
by its performance in the light of the policy. After assessing whether organization has
achieved the desired results set in the policy, HR policy may be amended or a new policy
may be formulated in the light of the actual performance.
6. To Create Confidence among Employees:
HR policies provide the workers a security against exploitation and create confidence in
employees who may know where they stand in the organization.
7. To Motivate:
HR policies introduce the employees to the objectives of the organization. It guides the
workers in achieving the objectives. They work enthusiastically and with loyalty to get those
objectives.
8. To Guide the Management:
HR policies provide guidance to management in relation to the HR problems. HR policies
decide how to get the work done by the people or how to behave with them.

CHARACTERISTICS OF SOUND HRM POLICY

While developing sound personnel policies management should pay attention to the following
things:

1. Related to Objectives:- Policies must be capable of relating objectives functions,

physical factors and Organisational personnel.

2. Easy to Understand: Policies should be stated in define, positive, clear and

understandable language.

3. Precise: Policies should be sufficiently comprehensive and prescribe limits and

yardsticks for future action.

4. Stable as well as Flexible: Personnel policies should be stable enough assure

people that there will not be drastic overnight changes. They should be flexible
enough to keep the organization in tune with the times.

5. Based on Facts: Personnel policies should be built on the basis of facts and sound
judgment and not in personal feelings or opportunistic decision.

6. Appropriate Number: There should be as many personnel policies as necessary to

cover conditions that can be anticipated, but not so many policies as to become
confusing or meaningless.

7. Fair & Equitable:- policies should be just fair & equitable to internal as well as
external groups. Eg:- a policy of recruitment from within may limit opportunities to
bright candidates from outside & a policy of recruitment from outside only a would
limit promotional avenue to promising internal candidates.

8. Reasonable:- policies must be reasonable & capabable of being accomplished. To

gain acceptance & commitment from employees, the policy should be conditioned by
 the suggestions & reactions of those who are affected by the policy.

9. Review:- periodic review of policies is essential to keep in tune with changing

times & a avoid organisational complacency or managerial stagnation.

BENEFITS OF HRM POLICY

1. Recruitment and Selection

Policies pertaining to the recruitment and selection process are the foundation of building any
workforce. You must have a plan for creating applications, how to prequalify applicants, how
applicants move up to become a candidate and other employment procedures. This set of policies also
benefits current employees who refer applicants to your business.
2. Training and Professional Development

Provisions for employee training and development are included in human resource policy
documents because it informs employees of the kind of professional development available to
them. In addition, policies related to training and development assistance in the formulation
of employee development plans or performance improvement plans. Training and
development policies serve as an outline of educational benefits available to current
employees.

3. Handling Employee Concerns

Many companies have written procedures for handling employee complaints, whether
they are internal, informal complaints or allegations made about the employer to
enforcement agencies. The benefit of this policy is to document your company’s commitment
to non-discriminatory practices and how such complaints are resolved. These policies also
benefit employees because they provide important information about workplace
communication in the event an employee is unsure of who she contacts to discuss any
concerns or problems.

4. Workplace Safety

In a time when more than worker safety in the performance of her job is the primary issue
addressed in safety policies, employers distribute policies that address matters such as
workplace violence. These types of policies are generally discussed in detail with employee
groups; an emergency evacuation policy isn’t effective if you don’t discuss it until the
emergency happens. Another benefit to having a human resources safety policy is adherence
to federal and state guidelines for workplace safety.

5. Organizational Structure

An introduction to the human resources policy manual explains the organizational structure,
what departments fulfill which expectations and company leadership. In the introductory
section, many employers also explain the company philosophy as it is related to customer
service, co-workers, and leadership and business ethics. Ethics statements are extremely
popular, especially in a world where social responsibility is observed by so much of the
population. This section of a human resources policy manual may also state the company's
compliance with federal, state and local anti- discrimination laws.
6. Employment Rules:-

Employees are accustomed to learning specific workplace rules such as dress code, discipline
procedures, parking, attendance and working hours, holidays, employee benefits and payroll
dates. The human resources policy on these issues is easy accessed by employees who have
questions, or reviewed by new employees eager to learn more about their new employer.

7. Training and Professional Development

Provisions for employee training and development are included in human resource policy
documents because it informs employees of the kind of professional development available to
them. In addition, policies related to training and development assistance in the formulation
of employee development plans or performance improvement plans. Training and
development policies serve as an outline of educational benefits available to current
employees.

8. Handling Employee Concerns

Many companies have written procedures for handling employee complaints, whether
they are internal, informal complaints or allegations made about the employer to
enforcement agencies. The benefit of this policy is to document your company’s commitment
to non-discriminatory practices and how such complaints are resolved. These policies also
benefit employees because they provide important information about workplace
communication in the event an employee is unsure of who she contacts to discuss any
concerns or problems.

9. Workplace Safety

In a time when more than worker safety in the performance of her job is the primary issue
addressed in safety policies, employers distribute policies that address matters such as
workplace violence. These types of policies are generally discussed in detail with employee
groups; an emergency evacuation policy isn’t effective if you don’t discuss it until the
emergency happens. Another benefit to having a human resources safety policy is adherence
to federal and state guidelines for workplace safety.

10. Organizational Structure

An introduction to the human resources policy manual explains the organizational structure,
what departments fulfill which expectations and company leadership. In the introductory
section, many employers also explain the company philosophy as it is related to customer
service, co-workers, and leadership and business ethics. Ethics statements are extremely
popular, especially in a world where social responsibility is observed by so much of the
population. This section of a human resources policy manual may also state the company's
compliance with federal, state and local anti- discrimination laws.

11. Employment Rules

Employees are accustomed to learning specific workplace rules such as dress code, discipline
procedures, parking, attendance and working hours, holidays, employee benefits and payroll
dates. The human resources policy on these issues is easy accessed by employees who have
questions, or reviewed by new employees eager to learn more about their new employer.
BENEFITS OF HRM POLICY
1. Recruitment and Selection

Policies pertaining to the recruitment and selection process are the foundation of building any
workforce. You must have a plan for creating applications, how to prequalify applicants, how
applicants move up to become a candidate and other employment procedures. This set of
policies also benefits current employees who refer applicants to your business.
Training and Professional Development
Provisions for employee training and development are included in human resource
policy documents because it informs employees of the kind of professional
development available to them. In addition, policies related to training and
development assistance in the formulation of employee development plans or
performance improvement plans. Training and development policies serve as an
outline of educational benefits available to current employees.

Handling Employee Concerns

Many companies have written procedures for handling employee complaints,

whether they are internal, informal complaints or allegations made about the
employer to enforcement agencies. The benefit of this policy is to document your
company’s commitment to non-discriminatory practices and how such
complaints are resolved. These policies also benefit employees because they provide
important information about workplace communication in the event an employee is
unsure of who she contacts to discuss any concerns or problems.

Workplace Safety
In a time when more than worker safety in the performance of her job is the primary
issue addressed in safety policies, employers distribute policies that address matters
such as workplace violence. These types of policies are generally discussed in detail
with employee groups; an emergency evacuation policy isn’t effective if you don’t
discuss it until the emergency happens. Another benefit to having a human resources
safety policy is adherence to federal and state guidelines for workplace safety.

Organizational Structure

An introduction to the human resources policy manual explains the organizational

structure, what departments fulfill which expectations and company leadership.
In the introductory section, many employers also explain the company philosophy
as it is related to customer service, co-workers, leadership and business ethics.
Ethics statements are extremely popular, especially in a world where social
responsibility is observed by so much of the population. This section of a human
resources policy manual may also state the company's compliance with federal, state
and local anti- discrimination laws.

Employment Rules:-

Employees are accustomed to learning specific workplace rules such as dress code,
discipline procedures, parking, attendance and working hours, holidays, employee
benefits and payroll dates. The human resources policy on these issues is easy
accessed by employees who have questions, or reviewed by new employees eager to
learn more about their new employer.
 12. Training and Professional Development

Provisions for employee training and development are included in human resource
policy documents because it informs employees of the kind of professional
development available to them. In addition, policies related to training and
development assistance in the formulation of employee development plans or
performance improvement plans. Training and development policies serve as an
outline of educational benefits available to current employees.

13. Handling Employee Concerns

Many companies have written procedures for handling employee complaints,

whether they are internal, informal complaints or allegations made about the
employer to enforcement agencies. The benefit of this policy is to document your
company’s commitment to non-discriminatory practices and how such
complaints are resolved. These policies also benefit employees because they
provide important information about workplace communication in the event an
employee is unsure of who she contacts to discuss any concerns or problems.

14. Workplace Safety

In a time when more than worker safety in the performance of her job is the
primary issue addressed in safety policies, employers distribute policies that address
matters such as workplace violence. These types of policies are generally discussed
in detail with employee groups; an emergency evacuation policy isn’t effective if
you don’t discuss it until the emergency happens. Another benefit to having a
human resources safety policy is adherence to federal and state guidelines for
workplace safety.

15. Organizational Structure

An introduction to the human resources policy manual explains the organizational

structure, what departments fulfill which expectations and company leadership.
In the introductory section, many employers also explain the company philosophy
as it is related to customer service, co-workers, leadership and business ethics.
Ethics statements are extremely popular, especially in a world where social
responsibility is observed by so much of the population. This section of a human
resources policy manual may also state the company's compliance with federal,
state and local anti- discrimination laws.

16. Employment Rules:-

Employees are accustomed to learning specific workplace rules such as dress code, discipline
procedures, parking, attendance and working hours, holidays, employee benefits and payroll
dates. The human resources policy on these issues is easy accessed by employees who have
questions, or reviewed by new employees eager to learn more about their new employer.