Module-1

Introduction to human resource Management

Meaning
Human resource management is an art of managing the people in the workplace and also to
make them motivated and committed to contribute the best for the success of the
organization.
Human resource management is the strategic approach to nurturing and supporting
employees and ensuring a positive workplace environment.
Definition:
According to Decenzo and Robbins HRM is concerned with a peoples dimension.
According to Wendell defines HRM as the recruitment, selection, development, utilization,
compensation and motivation of Human resource by the organization.
Nature of HRM
1. Managerial Process
Human resource management is a vital part of management that includes planning,
organising, staffing, directing, and controlling human resources to achieve organisational
success. It is a managerial process that effectively utilises human resources to attain
organisational goals and objectives. 
2. Both Art and Science
Human resource management is a mixture of both art and science. It is an art as it deals
with qualitative attributes like creativity, knowledge, skills, and talent of the personnel. In
simple words, HRM is the art of getting things done by others effectively. HRM is a science as
it requires different scientific techniques for activities like recruitment, selection, training,
and appraisal of employees. 
3. Pervasive Force
Human resource management, being an inherent part of an organisation, is pervasive in
nature. It means that HRM is present in different functional areas of management, like
finance, marketing, and production, in all commercial and non-commercial enterprises.
Everyone in the organisation, from the top to the lowest level, must perform HRM functions
regularly. 
4. Improve Employee Relations
“In order to build a rewarding employee experience, you need to understand what matters
most to your people.” – Julie Bevacqua.
Human resource management is concerned with building healthy relationships between
employees at various organisational levels. Every individual has different needs, goals, and
expectations. HRM deals with these individual factors and motivates employees to reach
their maximum potential. Moreover, it creates an organisational culture that fosters learning
and growth. 
5. People-Centred
The nature of human resource management is people-centred and relevant in all types of
organisations. It is concerned with every employee from the top to the bottom level. HRM
value people both as individuals and as a group. Furthermore, it encourages people to
develop their full potential and fulfil individual and organisational goals. 
6. Development-Oriented
The development of the workforce in an organisation is crucial to the nature of human
resource management. HR managers use various tools to help employees understand their
strengths and unleash their potential. Regular training programs can benefit employees by
improving their skills. Also, monetary and non-monetary reinforcement can help people stay
motivated to perform better. 
7. Action Oriented
While human resource management does follow the rules and policies, its main focus is on
action and results rather than rules. A human resource manager stresses the importance of
providing effective solutions for employee problems, tensions, or controversies. 
8. Forward-Looking
Sustaining in the competitive business environment requires organisations to plan long-term
strategies. HRM is a future-oriented approach that evaluates the human resource
requirements and ensures the availability of required personnel in the right place at the right
time. With the forward-looking nature of human resource management, managers prepare
employees by motivation, training, and development to face current and future challenges
in the changing business environment. 
9. Continuous Process
Human resource management is not a ‘one-time’ function. Rather, it is a never-ending
process that must be performed continuously to achieve organisational objectives
effectively. It involves a series of tasks, beginning with identifying the human resource
requirement and continuing with recruitment, training, performance evaluation, and
appraisal. 
10. Basis of Other Functional Areas 
HRM is the basis of all other functional areas of management, such as finance, production,
and marketing. The effectiveness of each of these departments depends on the
effectiveness of their human resource management. 
 11. Interdisciplinary Function
Human resource management is multidisciplinary in nature. HR managers utilise knowledge
and inputs from various disciplines to manage the workforce effectively. The five major
disciplines in HRM include management, communication, psychology, sociology, and
economics. In order to effectively manage human resources, one must understand the
contribution of all these disciplines to HRM. 
Scope of HRM
1.Human resources planning
 Human Resource Planning refers to a process by which the company tries to find the
number of jobs vacancy in which a particular department and The number of staff required
with the necessary qualification and experience.
2. Job analysis design
Another important area of Human Resource Management is job analysis. Job analysis gives
detailed information about the job description and employee specifications in the company.
3  Recruitment and selection
 Based on information collected from job analysis the company prepares advertisements and
publishes them in the newspapers, Employment sites, etc. This is recruitment. A number of
applications are gathered after the advertisement is
published, interviews are conducted and the right employee is selected for the right post
and right time thus recruitment and selection are yet another important areas of Human
Resource Management.
4. Orientation and induction 
 Once the employees have been selected an induction or orientation program is conducted.
The employees are informed about companies’ backgrounds, products, different
subsidiaries’ organizational culture and values, and work ethics and introduced to the new
employee to other employees.
5.  Training and development
Every employee goes into a training program which helps him to put up a
better performance on the job. The training program is also conducted for existing staff that
have a lot of experience. This is called refresher training. Training and development is one
area where the company spends a huge amount.
6. Performance appraisal
 Once the employee has put on the job performance appraisal is conducted that is the
Human Resources department checks the performance of the employee. Which
helps appraise future promotions, incentives, increments in salary, etc
7. Compensation planning and remuneration
There are various rules regarding compensation and other benefits. It is the job of the
Human Resources department to look into remuneration and compensation planning.
8. Motivation, welfare, health, and safety
  Motivation becomes important to sustain the number of employees in the company. It is
the job of the Human Resources department to look into the different methods of
motivating & encourage the employee. Apart from this certain health and safety regulations
have to be followed for the benefit of the employees.
9. Industrial relations
Another important area of Human Resource Management is maintaining co-ordinal relations
with the union members. with employer-employee, and employee- employee  This will help
the organization to coordinate with one another for smooth working.
Objectives of HRM
1.Societal Objectives
While limiting the negative effects of such requirements upon the organisation to utilise its
resources for society’s advantages in ethical ways can lead to limitation, it is important to be
socially and morally accountable for the demands and difficulties of society.
2. Functional Objectives
Organisations should meet requirements in order to keep department contributions at a
suitable level. When human resource management seems to be either more or less
competent to meet the expectations of the company, resources are squandered.
3.Organisational Objectives
Human Resource Management should be understood as a tool to help the business achieve
its main goals rather than as an end in and of itself, which is the function of an HR manager
in fostering organisational performance.
4.Personal Objectives
Helping employees achieve their own objectives, at least to the extent that doing so will
improve their contribution to the company, is another role of human resource management.
Employees need to be inspired, retained and nurtured in their own goals.
There are many other additional objectives of human resource management
1. Organisational Goals
This is where human resource management begins. Fulfilling organisational goals is one of
the main purposes. Employing human resources to meet organisational needs and
objectives is crucial for efficient human resource management.
Workforce management and employee needs, including hiring and training, payroll
administration, and retirement, are all part of an organisation’s objectives. Human resource
management involves effective planning and implementation in order to achieve corporate
objectives. Human resource management is insufficient without predetermined objectives,
missions, and resource allocations. Reaching human resource management goals is not
challenging if you know your resources and strategy.
2. Work Culture
Employees and the workplace culture come first when managing human resource
management successfully and achieving goals. Workplace culture is crucial in determining
Human Resource Management and company performance.
An HR manager must be engaged when advocating for policies to promote a better
workplace culture. You can benefit from automated processes like acknowledging
reimbursement requests and approving leave. Empowerment of employees and a quick line
of operations contribute to a healthy work environment. Building a positive work culture
starts with cultivating and sustaining positive, open relationships across teams and team
members. More than half of your work may be resolved by implementing the appropriate
solutions, such as personnel management software.
Small efforts, like efficient onboarding procedures, can create a positive perception of the
workplace. 
3. Integrated Teamwork
Ensuring the team organises well is one of the key duties and goals of human resource
management. There must be effective communication between various departments and
teams in the company. Here, HR must ensure that there is a tool to simplify the integration
and make it more seamless.
Streamlining tasks and operations is the goal of functional objectives like team integration.
To guarantee efficiency, communication between people needs to be appropriate. You must
look for better integration platforms to facilitate user access to data to manage HR
successfully. The self-service portal, for example, can let employees get in touch with HR
personnel.
4. Training and Development
Two crucial and fundamental factors are employee effectiveness and performance for a
company to achieve its fundamental goals in human resource management. Employees feel
secure and organised with sufficient training and future prospects. The training methods
have a significant impact on effective employment. Giving staff opportunities is a fantastic
method for ensuring workforce management.
Planning, organising, training courses, and evaluating each on-board can be challenging
while dealing with employees as part of human resource management. Solutions such as
training management software may provide you with auto-reminders, a simple calendar,
reporting, and monitoring capabilities to alleviate the agony. The HR manager may make
sure that the company has efficient training procedures.
5. Employee Dynamism
Keeping everything on the right track is HR professionals’ main goal in human resource
management. Keep negative energy and distractions at a distance. The staff must be taken
care of and motivated at all times in order to do this. How can HR inspire employees?
Give them authority. Consider their points of view. Invite them to meetings or decisions
every week. Let them be a part of the company’s integral matters, even if they are new. Keep
the spirit up at all times. Employee appreciation measures like yearly performance-based
appraisals can also be beneficial in human resource management.
Your staff may be motivated and productive throughout the service with the help of an
automatic feedback mechanism for performance assessment management. If the workers
are happy and content, nothing else will stop your company from losing sight of its aims and
ambitions. Therefore, human resource management plays a key role in keeping the
employees and workforce happy and content in the company.
6. Empowering Employees
Another key objective of human resource management is the empowerment of employees.
Nothing can work more effectively in terms of employee engagement than giving them more
control. It can also save HR labour by equipping them with resources like the ESS (employee
self-service) site for human resource management.
Employees can self-apply for approvals using the site and monitor them via their mobile
devices. You no longer need to knock on HR’s door for small inquiries. HR interaction
becomes trivial for many reasons, including leave requests, payslip generation, PF account
checks, remaining vacation time, future holidays, manager information, etc.
7. Retention
One of the main goals and objectives of HR managers is employee retention, along with
offering leadership qualities and chances. Human Resource Management needs to keep
employees happy and engaged as a key priority.
The largest difficulty, or goal, facing HR professionals is keeping employees on board for a
long time beyond the recruiting, onboarding, and training phases. Employees frequently
depart the company within two months of joining it. It can result from a poor management
system or a difficult hiring procedure.
The experience of the workforce must be carefully considered. Maintaining a low employee
turnover rate may be achieved by keeping your current workforce. The HR manager in
human resource management must discover the top business retention advice if they want
to maintain it steady.
Scope of HRM
1. Human resources planning
 Human Resource Planning refers to a process by which the company tries to find the
number of jobs vacancy in which a particular department and The number of staff required
with the necessary qualification and experience.
2. Job analysis design
Another important area of Human Resource Management is job analysis. Job analysis gives
detailed information about the job description and employee specifications in the company.
3  Recruitment and selection
 Based on information collected from job analysis the company
prepares advertisements and publishes them in the newspapers, Employment sites, etc.
This is recruitment. A number of applications are gathered after the advertisement is
published, interviews are conducted and the right employee is selected for the right post
and right time thus recruitment and selection are yet another important areas of Human
Resource Management.
4. Orientation and induction 
 Once the employees have been selected an induction or orientation program is conducted.
The employees are informed about companies’ backgrounds, products, different
subsidiaries’ organizational culture and values, and work ethics and introduced to the new
employee to other employees.
5.  Training and development
Every employee goes into a training program which helps him to put up a
better performance on the job. The training program is also conducted for existing staff that
have a lot of experience. This is called refresher training. Training and development is one
area where the company spends a huge amount.
6. Performance appraisal
 Once the employee has put on the job performance appraisal is conducted that is the
Human Resources department checks the performance of the employee. Which
helps appraise future promotions, incentives, increments in salary, etc
7. Compensation planning and remuneration
There are various rules regarding compensation and other benefits. It is the job of the
Human Resources department to look into remuneration and compensation planning.
8. Motivation, welfare, health, and safety
  Motivation becomes important to sustain the number of employees in the company. It is
the job of the Human Resources department to look into the different methods of
motivating & encourage the employee. Apart from this certain health and safety regulations
have to be followed for the benefit of the employees.
9. Industrial relations
Another important area of Human Resource Management is maintaining co-ordinal relations
with the union members. with employer-employee, and employee- employee  This will
help the organization to coordinate with one another for smooth working.
Importance of Human Resource Management
1. To maintain quality of work life
Quality of work life is the perception of employees regarding the relationship between
working condition with management. Simply, it is the relationship between employees and
total work environment.
Quality of work life is concerned with the employee’s perception of physical as well as
psychological wellbeing at workplace and it can be obtained by maintaining work autonomy,
work freedom, job recognition, belongingness, rewards, etc.
2. To increase productivity and profit
Human resource management ensures right quality and quantity of personnel in workplace,
apart from which, it creates opportunities to facilitate and motivate individual and group of
employees to grow and advance their career. Motivated employees work hard to meet their
personal career goal which directly influences productivity of organisation. Minimising cost
and maximising profit is the essence of productivity.
3. To produce employees who are easily adaptable to change
Human resource management performs various functions, among which training and
development of employees is one of the vital ones. Training and development programs
keep employees updated with skills necessary to adjust with alteration of organisation’s
environment, structure and technology.
4. To match demand and supply of human resource
Human resource management probes existing human resource in certain interval of time to
identify if the company has adequate number of workers or not. In case when company has
inadequate human resource, human resource management performs activities like
recruitment and selection to balance the need. In the same way, it lay-off inefficient
employee in case when the company has excessive employees
5. To retain employees and motivate them to accomplish company’s goal
Utilising human resource to their fullest and maintaining them in the company for a long
term is a major function of human resource management. Under this function, HRM
performs tasks like providing fringe benefits, compensation and rewards to the deserving
employees. These activities do not only help in retaining employees in the company but also
in achieving organisation’s goal effectively.

6. To recognise merit and contribution of employee

Human resource management performs timely appraisal of employee’s performance in
order to recognise excellent and poor workers. The excellent workers are then rewarded as a
return for their contribution.
7. To create a feeling of belongingness and team spirit in the employee
Human resource management designs job on the basis of teamwork. As teamwork demands
contribution from every team member, HRM focuses on making each and every employee
feel valued so that employee contributes best from their side.
8. To sustain business in the market
Human resource management makes sure that the company has the best employee because
promising employees are capable of taking their company ahead in the race by delivering
excellent results. This guarantees organisation’s success and stability in future.
Factors influencing HRM
EXTERNAL FACTOR
1. Economic environment: Economic conditions, such as inflation, unemployment
rates, and economic growth, can influence HRM practices related to recruitment,
compensation, and workforce planning.
2. Technological environment: Advances in technology can impact HRM through
automation, remote work, digital recruitment processes, and the use of HR
information systems.
3. Legal environment: Employment laws and regulations imposed by governments
affect HRM practices, including areas such as labor relations, equal employment
opportunities, and workplace health and safety.
4. Workforce demographics: Factors such as age, gender, ethnicity, education levels,
and generational differences can affect HRM practices, including diversity and
inclusion initiatives, talent management, and succession planning.
5. Competitors' actions: The actions and strategies of competitors, such as their
recruitment efforts, compensation packages, and employee benefits, can influence
HRM practices in terms of attracting and retaining talent.
6. Industry characteristics: The nature of the industry, its competitiveness, and market
conditions can impact HRM practices, including workforce planning, training, and
employee engagement strategies.
 7. Union actions: The presence of labor unions and their negotiations with
management can influence HRM practices, particularly in areas such as collective
bargaining, employee rights, and labor relations.

Internal Factor
1. Organizational Size: The size of an organization can significantly impact HRM.
Larger organizations often have more complex HRM needs, such as managing a larger
workforce, handling diverse employee requirements, and implementing specialized HR
departments or functions.
2. Organizational Structure: The structure of an organization, including its hierarchy,
reporting relationships, and division of labor, affects HRM practices. Different
structures, such as functional, divisional, or matrix structures, can impact how HRM
responsibilities are distributed and how HR functions interact with other
departments.
3. Business Strategy: The strategic goals and objectives of the organization shape HRM
practices. HRM needs to align with the overall business strategy to ensure that
human resources are effectively utilized to achieve organizational goals. For example,
if a company's strategy is focused on innovation, HRM may need to emphasize
recruitment and retention of creative and skilled employees.
4. Organizational Culture: The values, beliefs, norms, and practices that define the
organization's culture have a significant impact on HRM. HRM practices should be
aligned with the organization's culture to ensure consistency and employee
engagement. For instance, a culture that values teamwork and collaboration may
emphasize HRM practices that promote cooperation and employee involvement.
MODELS OF HRM
The Harvard Model :
The Harvard Model was postulated by Beer et al (1984) at Harvard University. The authors of
the model also coined it the map of HRM territory. The Harvard model acknowledges the
existence of multiple stakeholders within the organization. These multiple stakeholders
include shareholders various groups of employees, government and the community at large.
The recognition of the legitimacy of these multiple stakeholders renders this model a neo -
pluralist model.This model emphasizes more on the human/soft side of HRM. Basically this is
because this model emphasizes more on the fact that employees like any other shareholder
are equally important in influencing organizational outcomes. In fact the interest of the
various groups must be fused and factored in the creation of HRM strategies and ultimately
the creation of business strategies.
A critical analysis of the model shows that it is deeply rooted in the human relations
tradition.Employee influence is recognised through people motivation and the development
of an organization culture based on mutual trust and team work.The factors above must be
factored into the HR strategy which is premised on employee influences, HR flows, reward
system etc.The outcomes from such a set up are soft in nature as they include high
congruence, commitment, competencies etc

The Warwick Model:

The Warwick model takes cognisance of business strategy and HR practices (as in the Guest
model), the external and internal context (unlike the Guest model) in which these activities
take place, and the process by which such changes take place, including interactions
between changes in both context and content. The strength of the model is that it identifies
and classifies important environmental influences on HRM. It maps the connection between
the external and environmental factors and explores how human resource management
adapts to changes in the context. Obviously, those organizations achieving an alignment
between the external and internal contexts will achieve performance and growth.

The 5P's Model :

As formulated by Schuler (1992) the 5-P model of HRM describes how HRM operates under
the five headings of:
1. HR philosophy – a statement of how the organization regards its human resources, the
role they play in the overall success of the business, and how they should be treated and
managed.
2. HR policies – these provide guidelines for action on people-related business issues and for
the development of HR programmes and practices based on strategic needs.
3. HR programs – these are shaped by HR policies and consist of coordinated HR efforts
intended to initiate and manage organizational change efforts prompted by strategic
business needs.

4. HR practices – these are the activities carried out in implementing HR policies and
programmes. They include resourcing, learning and development, performance and reward
management, employee relations and administration.
5. HR processes – these are the formal procedures and methods used to put HR strategic
plans and policies into effect.

The Ulrich Model

In his popular book,Human Resources champion,Ulrich sets an opinion that,to be succesful,
HR professionals need play at least four different roles namely strategic
partner,administrative expert, employee champion and change agent. He also proposes
that,HR managers should focuses on what they can deliver before they look at the activities
or works of HR.
The axis of Ulrich's model represent two aspects,namely focus and activities. The HRM roles
mentioned earlier are depicted in the four quadrants of the model. To clarify these roles
each quadrant also contains the outcome of each roles as well as the activities the HR
professional is to perform.

The ATSD competency model :

The American Society for Training & Development (ASTD), an association for learning and
development professionals, has updated its competency model to guide training
professionals’ career development. The ASTD Competency Model provides two sets of
actionable paths. First, it offers a broad inventory of topics—such as business acumen, global
mindset and industry knowledge—that training professionals need to understand in today’s
rapidly changing business environment. Second, it provides specific actions these
professionals should take within functional areas—including change management, coaching,
integrated talent management, and training design and delivery—to improve their skills and
performance.

HR competencies
HR Practices: HR practices refer to the processes, policies, and activities implemented by the
Human Resources department within an organization. These practices are designed to
effectively manage and develop the organization's human capital. Some common HR
practices include:
 1. Recruitment and Selection: The process of attracting, screening, and hiring qualified
individuals for job positions within the organization.
2. Onboarding and Orientation: Introducing new employees to the organization, its
culture, policies, and procedures, and ensuring a smooth transition into their roles.
3. Training and Development: Providing employees with the necessary knowledge,
skills, and abilities to perform their jobs effectively and develop their potential.
4. Performance Management: Setting performance goals, conducting performance
appraisals, and providing feedback to employees to improve their performance.
5. Compensation and Benefits: Developing and administering a fair and competitive
compensation system, including salaries, bonuses, and employee benefits.
6. Employee Relations: Managing relationships between employees and the
organization, addressing conflicts, and ensuring a positive work environment.
Personal Credibility: Personal credibility refers to the reputation, trustworthiness, and
reliability of an individual. In the context of HR, personal credibility is crucial for HR
professionals to effectively carry out their responsibilities. It involves building trust and
establishing a positive reputation among employees and leaders in the organization. Some
key factors that contribute to personal credibility include:
1. Integrity: Demonstrating ethical behavior and adhering to high moral standards.
2. Competence: Possessing the necessary knowledge, skills, and expertise in HR
practices and relevant areas of the business.
3. Consistency: Being reliable and consistent in words and actions, and following
through on commitments.
4. Communication: Effectively conveying information, actively listening, and being open
and transparent.
5. Empathy: Showing understanding and compassion towards others, and considering
their perspectives and needs.
Change Management: Change management refers to the structured approach of preparing,
supporting, and guiding individuals, teams, and organizations through a planned change
initiative. HR plays a vital role in change management processes. Key aspects of change
management include:
1. Planning: Developing a clear change management strategy, identifying objectives,
and creating a plan for implementing the change.
2. Communication: Effectively communicating the reasons for change, the benefits, and
addressing concerns or resistance from employees.
3. Training and Development: Providing employees with the necessary skills and
knowledge to adapt to the change and succeed in new roles or processes.
 4. Leadership Support: Ensuring that leaders actively support and communicate the
change, and serve as role models throughout the process.
5. Employee Engagement: Involving employees in the change process, seeking their
input, and addressing their concerns and feedback.
Manage Culture: Managing culture involves shaping and aligning the shared values, beliefs,
behaviors, and norms within an organization. HR plays a critical role in managing and
influencing organizational culture. Some strategies for managing culture include:
1. Define and Communicate Core Values: Clearly articulate the organization's core
values and ensure they are widely communicated and understood.
2. Lead by Example: Leaders and HR professionals should embody the desired culture
and demonstrate behaviors that align with the organization's values.
3. Hire and Develop Based on Culture Fit: Incorporate cultural fit as a consideration in
the recruitment and selection process, and provide ongoing training and
development opportunities that reinforce the desired culture.
4. Reward and Recognize Desired Behaviors: Align rewards and recognition systems
with the desired culture to reinforce and motivate employees to exhibit the desired
behaviors.
5. Foster Open Communication: Encourage open and transparent communication
channels that allow employees to express their ideas, concerns, and suggestions.
Deliver HR Practices: To effectively deliver HR practices, HR professionals should consider
the following:
1. Alignment with Business Strategy: Ensure that HR practices align with the overall
business strategy and contribute to achieving organizational goals.
2. Customization: Tailor HR practices to meet the specific needs and culture of the
organization.
3. Clear Policies and Procedures: Establish clear policies and procedures that outline
how HR practices are implemented and communicated to employees.
4. Continuous Improvement: Regularly review and update HR practices to adapt to
changing business needs and best practices.
5. Measurement and Evaluation: Establish metrics and measures to evaluate the
effectiveness and impact of HR practices, and make data-driven decisions for
improvement.
Business Knowledge: Having business knowledge is essential for HR professionals to
understand the organization's operations, industry, and competitive landscape. It enables HR
professionals to align HR practices with the business needs and contribute to strategic
decision-making. Some key areas of business knowledge for HR professionals include:
1. Industry Trends: Stay updated on industry trends, market conditions, and emerging
technologies that may impact the organization's talent management strategies.
2. Organizational Strategy: Understand the organization's goals, objectives, and
strategies to align HR practices with the overall business direction.
3. Financial Acumen: Gain knowledge of financial statements, budgeting, and cost
management to understand the financial implications of HR initiatives.
4. Organizational Structure and Functions: Familiarize yourself with the organizational
structure, reporting lines, and functional areas to effectively collaborate and support
different departments.
5. Business Metrics: Understand key performance indicators (KPIs) relevant to HR, such
as employee turnover, productivity, and engagement, to measure HR's impact on
business outcomes.