Meaning, Scope, Objective, Functions, Roles and Importance, interaction with other functional areas. HRM &HRD a comparative analysis. Human Resource Management practices in India.

Meaning, Scope, Objective, Functions, Roles and Importance, interaction with other functional areas. HRM &HRD a comparative analysis. Human Resource Management practices in India.

 Human Resources Management

The Meaning & Concept

 The only differentiating element between competing organizations is the “People Factor.”
• Human Resource Management is a process of bringing People and Organizations
together so that the goals of each one are met.
• HRM is the “art of procuring, developing and maintaining competent workforce to
achieve the goals of an organization in an effective and efficient manner”.
According to Scott, Clothier and Spriegal, ―The objectives of Human Resource Management,
in an organization, is to obtain maximum individual development, desirable working
relationships between employers and employees and employees and employees, and to affect the
moulding of human resources as contrasted with physical resources.
The Objectives of HRM:
The basic objective of human resource management is to contribute to the realisation of the
organizational goals. However, the specific objectives of human resource management are as
follows :
(i) To ensure effective utilisation of human resources, all other organizational resources will be
efficiently utilised by the human resources.
(ii) To establish and maintain an adequate organizational structure of relationship among all the
members of an organization by dividing of organization tasks into functions, positions and
jobs, and by defining clearly the responsibility, accountability, authority for each job and its
relation with other jobs in the organization.
(iii) To generate maximum development of human resources within the organization by offering
opportunities for advancement to employees through training and education.
(iv) To ensure respect for human beings by providing various services and welfare facilities to
the personnel.
(v) To ensure reconciliation of individual/group goals with those of the organization in such a
manner that the personnel feel a sense of commitment and loyalty towards it.
(vi) To identify and satisfy the needs of individuals by offering various monetary and nonmonetary rewards.
The emergence of human resource management can be attributed to the writings of the
human relation thinkers who attached great significance to the human factor. Lawrence Appley
remarked,
the personnel department in discharging this responsibility.
Nature of HRM
The nature of the human resource management has been highlighted in its following
features :
1. Inherent Part of Management : Human resource management is inherent in the
process of management. This function is performed by all the managers throughout the
organization rather that by the personnel department only. If a manager is to get the best of his
people, he must undertake the basic responsibility of selecting people who will work under him.
2. Pervasive Function : Human Resource Management is a pervasive function of management.
It is performed by all managers at various levels in the organization. It is not a responsibility that
a manager can leave completely to someone else. However, he may secure advice and help in
managing people from experts who have special competence in personnel management and
industrial relations.
3. Basic to all Functional Areas : Human Resource Management permeates all the
functional area of management such as production management, financial management, and
marketing management. That is every manager from top to bottom, working in any department
has to perform the personnel functions.
4. People Centered : Human Resource Management is people centered and is relevant in
all types of organizations. It is concerned with all categories of personnel from top to the bottom
of the organization. The broad classification of personnel in an industrial enterprise may be as
follows : (i) Blue-collar workers (i.e. those working on machines and engaged in loading,
unloading etc.) and white-collar workers (i.e. clerical employees), (ii) Managerial and nonmanagerial personnel, (iii) Professionals (such as Chartered Accountant, Company Secretary,
Lawyer, etc.) and non-professional personnel.
5. Personnel Activities or Functions : Human Resource Management involves several
functions concerned with the management of people at work. It includes manpower planning,
employment, placement, training, appraisal and compensation of employees. For the
performance of these activities efficiently, a separate department known as Personnel
Department is created in most of the organizations.
6. Continuous Process : Human Resource Management is not a ‗one shot‘ function. It
must be performed continuously if the organizational objectives are to be achieved smoothly.
7. Based on Human Relations : Human Resource Management is concerned with the
motivation of human resources in the organization. The human beings can‘t be dealt with like
physical factors of production. Every person has different needs, perceptions and expectations.
The managers should give due attention to these factors. They require human relations skills to
deal with the people at work. Human relations skills are also required in training performance
appraisal, transfer and promotion of subordinates.
SCOPE OF HRM: 
• HR Planning
• Job analysis and Design
• Recruitment and Selection
• Orientation and Placement,
• Training and Development
• Performance appraisal and Job Evaluation
• Employee and Executive Remuneration
• Motivation and communication
• Welfare, Safety and Health
• Industrial Relations (IR)
1. Managerial Functions:
The Human Resource Manager is a part of the organisational management. So he must perform
the basic managerial functions of planning, organising, directing and controlling in relation to his
department.
There functions are briefly discussed below:
1. Planning:
To get things done through the subordinates, a manager must plan ahead. Planning is necessary
to determine the goals of the organisation and lay down policies and procedures to reach the
goals. For a human resource manager, planning means the determination of personnel programs
that will contribute to the goals of the enterprise, i.e., anticipating vacancies, planning job
requirements, job descriptions and determination of the sources of recruitment.
The process of personnel
:
Firstly, a supply and demand forecast for each job category is made. This step requires
knowledge to both labour market conditions and the strategic posture and goals of the
organisation.
Secondly, net shortage and excess of personnel by job category are projected for a specific time
horizon.
Finally, plans are developed to eliminate the forecast shortages and excess of particular
categories of human resources.
2. Organizing:
Once the human resource manager has established objectives and developed plans and programs
to reach them, he must design and develop organisation structure to carry out the various
operations.
The organisation structure basically includes the following:
(i) Grouping of personnel activity logically into functions or positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and responsibilities involved;
(iv) Co-ordination of activities of different individuals.
3. Directing: 
The plans are to be pure into effect by people. But how smoothly the plans are implemented
depends on the motivation of people. The direction function of the personnel manager involves
encouraging people to work willingly and effectively for the goals of the enterprise.
In other words, the direction function is meant to guide and motivate the people to accomplish
the personnel programs. The personnel manager can motivate the employees in an organisation
through career planning, salary administration, ensuring employee morale, developing cordial
relationships and provision of safety requirements and welfare of employees.
The motivational function poses a great challenge for any manager. The personnel manager must
have the ability to identify the needs of employees and the means and methods of satisfy those
needs. Motivation is a continuous process as new needs and expectations emerge among
employees when old ones are satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities in accordance with the plans, which in
turn have been formulated on the basis of the objectives of the organisation. Thus, controlling
completes the cycle and leads back to planning. It involves the observation and comparison of
results with the standards and correction of deviations that may occur.
Controlling helps the personnel manager to evaluate the control the performance of the personnel
department in terms of various operative functions. It involves performance appraisal, critical
examination of personnel records and statistics and personnel audit.
2. Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the human
resource or personnel department. These are concerned with employment, development,
compensation, integration and maintenance of personnel of the organisation.
The operative functions of human resource or personnel department are discussed below:
1. Employment:
The first operative function of the human resource of personnel department is the employment of
proper kind and number of persons necessary to achieve the objectives of the organisation. This
involves recruitment, selection, placement, etc. of the personnel.
Before these processes are performed, it is better to determine the manpower requirements both
in terms of number and quality of the personnel. Recruitment and selection cover the sources of
supply of labour and the devices designed to select the right type of people for various jobs.
Induction and placement of personnel for their better performance also come under the
employment or procurement function.
2. Development:
Training and development of personnel is a follow up of the employment function. It is a duty of
management to train each employee property to develop technical skills for the job for which he
has been employed and also to develop him for the higher jobs in the organisation. Proper
development of personnel is necessary to increase their skills in doing their jobs and in satisfying
their growth need.
For this purpose, the personnel departments will device appropriate training programs. There are
several on- the-job and off-the-job methods available for training purposes. A good training
program should include a mixture of both types of methods. It is important to point out that 
personnel department arranges for training not only of new employees but also of old employees
to update their knowledge in the use of latest techniques.
3. Compensation:
This function is concerned with the determination of adequate and equitable remuneration of the
employees in the organisation of their contribution to the organisational goals. The personnel can
be compensated both in terms of monetary as well as non-monetary rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are their basic
needs, requirements of jobs, legal provisions regarding minimum wages, capacity of the
organisation to pay, wage level afforded by competitors etc. For fixing the wage levels, the
personnel department can make use of certain techniques like job evaluation and performance
appraisal.
4. Maintenance (Working Conditions and Welfare):
Merely appointment and training of people is not sufficient; they must be provided with good
working, conditions so that they may like their work and workplace and maintain their
efficiency. Working conditions certainly influence the motivation and morale of the employees.
These include measures taken for health, safety, and comfort of the workforce. The personnel
department also provides for various welfare services which relate to the physical and social
well-being of the employees. These may include provision of cafeteria, rest rooms, counseling,
group insurance, education for children of employees, recreational facilities, etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the cases, it is
found that they do not contribute towards the organisational goals as much as they can. This
happens because employees are not adequately motivated. The human resource manager helps
the various departmental managers to design a system of financial and non-financial rewards to
motivate the employees.
6. Personnel Records:
The human resource or personnel department maintains the records of the employees working in
the enterprise. It keeps full records of their training, achievements, transfer, promotion, etc. It
also preserves many other records relating to the behaviour of personnel like absenteeism and
labour turnover and the personnel programs and policies of the organisation.
7. Industrial Relations:
These days, the responsibility of maintaining good industrial relations is mainly discharged by
the human resource manager. The human resource manager can help in collective bargaining,
joint consultation and settlement of disputes, if the need arises. This is because of the fact that he
is in possession of full information relating to personnel and has the working knowledge of
various labour enactments.
The human resource manager can do a great deal in maintaining industrial peace in the
organisation as he is deeply associated with various committees on discipline, labour welfare,
safety, grievance, etc. He helps in laying down the grievance procedure to redress the grievances
of the employees. He also gives authentic information to the trade union leaders and conveys
their views on various labour problems to the top management. 
8. Separation:
Since the first function of human resource management is to procure the employees, it is logical
that the last should be the separation and return of that person to society. Most people do not die
on the job. The organisation is responsible for meeting certain requirements of due process in
separation, as well as assuring that the returned person is in as good shape as possible. The
personnel manager has to ensure the release of retirement benefits to the retiring personnel in
time.
References:
1. ASWATHAPA, K. 2013. Human Resource Management. Tata McGraw Hill, 2013.
2. DESSLER, Gary. 2004. Human Resource Management. Prentice Hall,2004.
3. FRENCH, WENDELL. L. 2006. Human Resource Management. Houghton Mifflin,2006
4. SUBBA RAO, P. 2009. Personnel and Human Resource Management. Himalaya
Publishing House, 2009.