Human Resources:

Human Resources HR is the total knowledge, skills, creative abilities, talents and aptitudes of an
organizations workforce as well as the values, attitudes and beliefs of the individuals involved

What is Human Resource Management (HRM)?:
What is Human Resource Management (HRM)? Human resource management is the effective
use of human resources in order to enhance organizational performance HRM is the art of
procuring, developing and maintaining competent workforce to achieve goals of an organisation
in an effective and efficient manner

Evolution of HRM Concept:
Evolution of HRM Concept Labour / Manpower denotes physical abilities & capacities of
employees commodity - wages based on demand & supply Personnel persons employed in
service employees as a whole HR- denotes resources of all the people who contribute their
services to the attainment of organisational goals

Evolution of HRM in India:
Evolution of HRM in India Welfare (1920s-1930s) Administration (1930s- 1940s) Employee
relations (1940-1960s) Functional expertise (1970s-1980s) Business partner / player (1990s)

Importance of HRM:
Importance of HRM HR most important resource Put other resources to proper use Help
transform lifeless factors of production into useful products Capable of enlargement produce
extraordinary things when inspired Can help organisation achieve results quickly, efficiently &
effectively

Objectives of HRM :
Objectives of HRM Maximize the return on investment from the organization's human capital
and minimize financial risk To align the capabilities and behaviors of employees with the short-
term and long-term goals of the organisation


Objectives of HRM:
Objectives of HRM Societal objectives To be ethically & socially responsible to the needs of the
society while minimizing the negative impact of such demands upon the organization
Organizational objectives To recognize the role of HRM in bringing about organizational
effectiveness Functional objectives To maintain the departments contribution at a level
appropriate to the organizations needs Personal objectives To assist employees in achieving
their personal goals in a manner that their personal goals enhance the individuals contribution to
the organization

Scope of HRM:
Scope of HRM Very vast Covers all major activities in the working life of a worker - from time
an individual enters into an organization until he or she leaves, comes under the purview of
HRM Prospects of HRM HRM Nature of HRM Industrial Relations Employee Maintenance
Employee Hiring Employee & Executive Remuneration Employee Motivation

Human Resource Management Functions

Recruitment

Recruitment The process by which a job vacancy is identified and potential employees are
notified The nature of the recruitment process is regulated and subject to employment law Main
forms of recruitment: through advertising in newspapers, magazines, trade papers and internal
vacancy lists, company websites

Recruitment Job description outline of the role of the job holder Person specification outline
of the skills and qualities required of the post holder Applicants may demonstrate their suitability
through application form, letter or curriculum vitae (CV)

Selection

Selection The process of assessing candidates and appointing a post holder Applicants short
listed most suitable candidates selected Selection process varies according to organisation

Selection Interview most common method Psychometric testing assessing the personality of
the applicants will they fit in? Aptitude testing assessing the skills of applicants In-tray
exercise activity based around what the applicant will be doing, e.g. writing a letter to a
disgruntled customer Presentation looking for different skills as well as the ideas of the
candidate

Employment Legislation

Discipline

Discipline Firms cannot just sack workers Wide range of procedures and steps in dealing with
workplace conflict Informal meetings Formal meetings Verbal warnings Written warnings
Grievance procedures Working with external agencies

Development
Development Developing the employee can be regarded as investing in a valuable asset A source
of motivation A source of helping the employee fulfil potential

Training

Training Similar to development: Provides new skills for the employee Keeps the employee up
to date with changes in the field Aims to improve efficiency Can be external or in-house

Rewards Systems

Rewards Systems The system of pay and benefits used by the firm to reward workers Money not
the only method Fringe benefits Flexibility at work Holidays, etc.

Trade Unions

Trade Unions Importance of building relationships with employee representatives Role of Trade
Unions has changed Importance of consultation and negotiation and working with trade unions
Contributes to smooth change management and leadership

Productivity

Productivity Measuring performance : How to value the workers contribution Difficulty in
measuring some types of output especially in the service industry Appraisal Meant to be non-
judgmental Involves the worker and a nominated appraiser Agreeing strengths, weaknesses and
ways forward to help both employee and organisation

Motivation:
Motivation Motivating employees to perform up to their potential is the key to maintaining a
productive, successful business Ways in which you can motivate employees Interact - Talk to
your employees regularly Recognition & Appreciation - A job well done should be appreciated
and encouraged Pay them Right - Pay employees for what they are worth and they will be happy
to work. New challenges - Give employees new and interesting challenges to keep them
stimulated and learning