Professional Documents
Culture Documents
Institute of Business
Administration
Class: SYBBA (Gen) Sem. -III
Unit 1: Human Resource Management
Prepared by: Ritesh H. Patel
Concept of Human Resource Management:
Human Resource Management (HRM) is a relatively new approach to managing people in any
organization. People are considered the key resource in this approach. it is concerned with the
people dimension in management of an organization. Since an organization is a body of people,
their acquisition, development of skills, motivation for higher levels of attainments, as well as
ensuring maintenance of their level of commitment are all significant activities. These activities
fall in the domain of HRM.
What is HRM?
Human resources management (HRM) refers to the management of people in organizations. It
comprises 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 organizations 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).
Let us understand it by dividing the term in the term into its sub parts;
Human People
Resource Assets/costs for organization
Management To Manage, to forecast, to plan, to organize, to command, to co-ordinate and to
control
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Cessation of feudalism, release of labour from land and the beginning of the free
employment relationship.
Shift from subsistence agriculture to a commercial mixed economy, a diffusion of
economic control and distribution of wealth and income.
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Functions of HRM
The main functions of human resource management are classified into two categories: (a)
Managerial Functions and (b) Operative Functions.
2. Organizing:
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3. Staffing:
This deals with the creation and maintenance of human resources through employment,
compensation, benefits, training and development and industrial relations measures. The steps
are:
4. Directing:
Its the sum of several activities like communication, leadership and motivation. Directing as a
function, aims at securing willing cooperation from the individuals and groups to achieve the
predetermined goals. It includes the following activities:
5. Controlling :
Controlling is the process of checking the efficiency of the individuals and the groups in fulfilling
the plans and goals through follow-up measures? The processes involved are:
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Collection of data, information, facts and ideas relating to various aspects of jobs including
which help in identifying the nature, levels and quantum of human resources.
Providing the guides, plans and basis for job design and for all operative functions of HRM.
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resources.
Taking steps to mould, change, and develop the strength of existing employees in the
4. Recruitment:
It is the process of searching for prospective employees and stimulating them to apply for jobs in
an organization. It deals with:
5. Selection:
It is the process of ascertaining the qualifications, experience, skill, knowledge etc., of an
applicant with a view to appraising his / her suitability to a job appraising.
This function includes:
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6. Placement:
It is the process of assigning the selected candidate with the most suitable job in terms of job
requirements. It is matching of employees specifications with job requirements. This function
includes:
Counseling
Conducting follow-up study, appraising employee performance in order to determine
Acquaint the employee with the company philosophy, objectives, policies, career planning
and development, opportunities, product, market share, social and community standing,
and subordinates.
Mould the employee attitude by orienting him to the new working and social environment.
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9. Research Role:The human resource manager maintains the records of the employees working in the enterprise.
On the basis of records, he undertakes research in various personnel areas such as absenteeism,
labor turnover, alcoholism etc and suggests suitable measures for improvement to the top
management.
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supply
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all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.
Estimation of Manpower Requirements
The HRD manager then estimates the manpower requirement of the organization. That is, he
finds out how many people (manager and employers) will be required to do all the jobs in the
organization. Estimation of manpower requirements must be made in terms of quantity and
quality.
3. Estimation of Manpower Supply:
The HRD manager then estimates the manpower supply. That is, he finds out how many
managers, and employers are available in the organization.
4. Comparison of Manpower Supply and Demand
The HR manager then compares the manpower requirements and manpower supply.
(a)
In case of no difference
If there is no difference between the manpower requirements and the manpower supply, then
the HR manager does not take any action. This is because manpower requirements are equal
to the manpower supply.
(b)
In case of difference
If there is a difference between the manpower requirements and the manpower supply the
HRD manager takes the following actions.
A. Manpower Surplus:
If the manpower requirements are less than the manpower supply then there is a
surplus.
During manpower surplus, the HRD manager takes the following actions :1. Termination i.e. removal of staff.
2. Lay-off.
3. Voluntary retirement.
B. Manpower Shortage:
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Job Analysis:
Job analysis is a process of determining which characteristics are necessary for satisfactory job
performance and analyzing the environmental conditions in which the job is performed. It analyzes
the work content of job & job content of work.
The process of job analysis leads to development of two documents viz., job description and job
specification. Job description indicates the tasks and responsibilities, job title, duties, machines, tools
and equipment, working conditions and occupational hazards that form part of the job whereas job
specification comprises of the capabilities required to perform job, education, experience, training,
judgmental skills, communication skills and personal skills required to perform the job effectively.
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What is the job meant to do - and how does this related to other parts
of the business?
Job content
Accountabilities
Performance criteria
Resource
requirements
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1. Job Description:
It is an important document. It is descriptive in nature. It is useful to identify a job for
consideration by job analyst. Important questions to be answered through job description are:
What should be done?
Why it should be done?
- Where it should be done?
There is no universal format of writing job description.
According to Ghorpade the following information is common in most of the job descriptions.
1. Job title: title of the job and other identifying information such as wages, salaries, other
benefits
2. Summary: summary is written in one or two lines that describes what outputs are expected
from job incumbents.
3. Equipment: a clear statement of tools, equipment and other information required to perform
job effectively.
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2. Job Specifications:
It also known as man or employee specifications is prepared on the basis of job specification. It
specifies the qualities required in a job incumbent for the effective performance of the job.
Basic contents of a job specification are as follows:
1. Personal characteristics such as education, job experience, age, sex, and extra co-curricular
activities.
2. Physical characteristics such as height, weight, chest, vision, hearing, health, voice poise, and
hand and foot coordination, (for specific positions only).
3. Mental characteristics such as general intelligence, memory, judgment, foresight, ability to
concentrate, etc.
4. Social and psychological characteristics such as emotional ability, flexibility, manners, drive,
conversational ability, interpersonal ability, attitude, values, creativity etc.
Various contents of a job specification can be prescribed in three terms:
1. Essential qualities which a person must possess;
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