INTRODUCTION The human resources of an organization consist of all people who perform its activities.

Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job. WHAT IS THE FOCUS OF HRM DEPARTMENT? The HRM focus should always be maintaining and, ideally, expanding the customer base while maintaining, and ideally, maximizing profit. HRM has a whole lot to do with this focus regardless of the size of the business, or the products or services you are trying to sell. (Dr. James Spina, former head of Executive Development at the Tribune Company). HRM is involved in managing the human resources with a focus on expanding customer base that gives profit to the company. The bottom line of the company is the focus of the HRM department as well as the function. CONTRIBUTING TO THE BOTTOM-LINE OF THE COMPANY THROUGH HR TOPLINE ACTIVITIES A growing body research shows that progressive HRM practices have a significant effect on corporate bottom-line and middle-line performance. The positive effect on financial performance, productivity, product and service quality, and cost control are documented by researchers. High-performance work systems (HPWS) is a term used to describe a collection of HR practices or characteristics of HR systems designed to enhance employees competencies so that employees can be a reliable source of competitive advantage. A summary of the research on HPWS indicated that a one standard deviation of improved assessment on a HPWS measurement tool increased sales per employee in excess of $15,000 per employee, an 8 percent gain in labor productivity. THE ACTIVITIES OF HUMAN RESOURCES MANAGEMENT The activities performed by HRM professionals fall under five major domains: (1) Organizational design, (2) Staffing, (3) Performance Management and Appraisal, (4) Employee and Organizational Development, and (5) Reward Systems, Benefits and Compliance Acquiring human resource capability should begin with organizational design and analysis. Organizational design involves the arrangement of work tasks based on the interaction of people, technology and the tasks to be performed in the context of the objectives, goals and the strategic plan of the organization. HRM activities such as human resources planning, job and work analysis, organizational restructuring, job design, team building, computerization, and worker-machine interfaces fall under this domain.

Recruitment, employee orientation, selection, promotion, and termination are among the activities that fit into the staffing domain. The performance management domain includes assessments of individuals and teams to measure, and to improve work performance. Employee training and development programs are concerned with establishing, fostering, and maintaining employee skills base don organizational and employee needs. Reward systems, benefits and compliance have to do with any type of reward or benefit that may be available to employees. Labor law, health and safety issues and unemployment policy fall under compliance component. MAJOR TRENDS AFFECTING HRM The following trends have an effect on human resource management function and department. The importance of HRM increases due to some of them and the practices of HRM are affected to some extent due to some of them. 1. Increased globalization of the economy. 2. Technological changes and environmental changes. 3. The need to be flexible in response to business changes. 4. Increase in litigation related to HRM. 5. Changing characteristics of the workforce. The Importance of HRM Measurement Many HRM systems and activities are not subjected to systematic measurement. Many organizations do not assess either the short- or long-term consequences of their HRM programs or activities. A recurring theme of the book is that measurement and accountability are key components to organizational effectiveness and competitive advantage. Good measurement, allied with business strategies, will help organizations select and improve all of their HRM activities and provide a much stronger connection between HRM activities and organizational effectiveness. Stanford University professor Jeffrey Pfeffer considers measurement to be one of the keys to competitive advantage. His book Competitive Advantage Through People cites measurement as one of the 16 HRM practices that contribute the most to competitive advantage. A new book entitled The Workforce Scorecard by Professors Mark Huselid, Brian Becker, and Dick Beatty extends research on the "balanced scorecard" to a comprehensive management and measurement system to maximize workforce potential. COMPETITIVE ADVANTAGE AND HRM Competitive Advantage refers to the ability of an organization to formulate strategies that place it at favorable position relative to other companies in the industry. Two major principles, namely customer value and uniqueness, are relevant for gaining competitive advantage. Competitive advantage occurs if customers perceive that they receive more value form their transaction or relationship with an organization than from its competitors. HRM needs to make efforts to ensure that all employees are focused on understanding customer needs and expectations. The second principle of competitive advantage derives from offering a product or service that your competitor cannot easily imitate or copy. The status of HRM is improving relative to other potential sources of competitive advantage for an organization. Professor Pfeffer notes that "traditional sources of success (e.g., speed to market, financial, technological) can still provide competitive

leverage, but to a lesser degree now than in the past, leaving organizational culture and capabilities, derived from how people are managed, as comparatively more vital." For success in 21st century, HRM activities must be (1) responsive to a highly competitive marketplace and global business structures, (2) closely linked to business strategic plans, (3) jointly conceived and implemented by line and HR managers, and (4) focused on quality, customer service, productivity, employee involvement, teamwork, and workforce flexibility. IMPORTANCE OF STUDY OF HRM FOR STUDENTS SPECIALIZING IN OTHER FUNCTIONAL AREAS OF MANAGEMENT Even as line managers in any functional department, management students are likely to manage people at some point in their career. Research shows that the manner in which one conducts the human resource responsibilities of the management job will be the key for effectiveness and growth in ones career.

Human resources may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization. It is the sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the persons employed in the organization. The human resources are multidimensional in nature. From the national point of view, human resources may be defined as the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees. Human Resource Management: Defined Human Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programmes relating to human resources to optimize their contribution towards the realization of organizational objectives. In other words, HRM is concerned with getting better results with the collaboration of people. It is an integral but distinctive part of management, concerned with people at work and their relationships within the enterprise. HRM helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization. Human Resource Management: Evolution The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the employee's productivity. Recent decades have focused on increased concern for the quality of working life, total quality management and worker's participation in management. These three phases may be termed as welfare, development and empowerment.

Human Resource Management: Nature Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc. Human Resource Management: Scope The scope of HRM is very wide: 1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc. 2. Welfare aspect-It deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. Human Resource Management: Beliefs The Human Resource Management philosophy is based on the following beliefs: Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent. A healthy climate with values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resource. HRM can be planned and monitored in ways that are beneficial both to the individuals and the organization. Employees feel committed to their work and the organization, if the organization perpetuates a feeling of belongingness. Employees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs. Employee commitment is increased with the opportunity to discover and use one's capabilities and potential in one's work. It is every manager's responsibility to ensure the development and utilisation of the capabilities of subordinates. Human Resource Management: Objectives To To To To To help the organization reach its goals. ensure effective utilization and maximum development of human resources. ensure respect for human beings. To identify and satisfy the needs of individuals. ensure reconciliation of individual goals with those of the organization. achieve and maintain high morale among employees.

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provide the organization with well-trained and well-motivated employees. increase to the fullest the employee's job satisfaction and self-actualization. develop and maintain a quality of work life. be ethically and socially responsive to the needs of society. develop overall personality of each employee in its multidimensional aspect. enhance employee's capabilities to perform the present job. equip the employees with precision and clarity in transaction of business. inculcate the sense of team spirit, team work and inter-team collaboration.

Human Resource Management: Functions In order to achieve the above objectives, Human Resource Management undertakes the following activities: 1. Human resource or manpower planning. 2. Recruitment, selection and placement of personnel. 3. Training and development of employees. 4. Appraisal of performance of employees. 5. Taking corrective steps such as transfer from one job to another. 6. Remuneration of employees. 7. Social security and welfare of employees. 8. Setting general and specific management policy for organizational relationship. 9. Collective bargaining, contract negotiation and grievance handling. 10. Staffing the organization. 11. Aiding in the self-development of employees at all levels. 12. Developing and maintaining motivation for workers by providing incentives. 13. Reviewing and auditing manpower management in the organization 14. Potential Appraisal. Feedback Counseling. 15. Role Analysis for job occupants. 16. Job Rotation. 17. Quality Circle, Organization development and Quality of Working Life. Human Resource Management: Major Influencing Factors In the 21st century HRM will be influenced by following factors, which will work as various issues affecting its strategy: Size of the workforce. Rising employees' expectations Drastic changes in the technology as well as Life-style changes. Composition of workforce. New skills required. Environmental challenges. Lean and mean organizations. Impact of new economic policy. Political ideology of the Government. Downsizing and rightsizing of the organizations. Culture prevailing in the organization etc. Human Resource Management: Futuristic Vision On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision: 1. There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection. 2. In every decision-making process there should be given proper weightage to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work and inter-team collaboration. 3. Opportunity and comprehensive framework should be provided for full expression

of employees' talents and manifest potentialities. 4. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically. 5. For performance appraisal of the employees emphasis should be given to 360 degree feedback which is based on the review by superiors, peers, subordinates as well as self-review. 6. 360 degree feedback will further lead to increased focus on customer services, creating of highly involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold. 7. More emphasis should be given to Total Quality Management. TQM will cover all employees at all levels; it will conform to customer's needs and expectations; it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization. 8. There should be focus on job rotation so that vision and knowledge of the employees are broadened as well as potentialities of the employees are increased for future job prospects. 9. For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy. 10. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. It should not be confined to organizational aspects only but the environmental changes of political, economic and social considerations should also be taken into account. 11. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning. To conclude Human Resource Management should be linked with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. All the above futuristic visions coupled with strategic goals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement by Hand

Meaning of Human Resource Management HRM HRM means to Select, Develop, Motivate and Maintain human resources, in the organisation. It first selects the right human resources or staff (i.e. managers and employees). It trains and develops them. It motivates them by giving them recognition and rewards. It also provides them with the best working conditions. HRM is directly concerned with the "people" of the organisation. It is people oriented process. That is, it manages people at work. Features of Human Resource Management HRM Following is the nature or features of Human Resource Management HRM :1. HRM as a Process HRM is a process of four functions :-

1. Acquisition of human resources : This function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of staff. 2. Development of human resources : This function includes Training and Development and Career development. The knowledge, skills, attitudes and social behavious of the staff are developed. 3. Motivation of human resources : This function includes giving recognition and rewards to the staff. it also includes Performance Appraisal and handling the problems of staff. 4. Maintenance of human resources : This function includes providing the best working conditions for employees. It also looks after the health and safety of the staff. 2. Continuous Process HRM is not a one-time process. It is a continuous process. It has to continuously change and adjust according to the changes in the environment, changes in the expectations of the staff, etc. HRM has to give continuous training and development to the staff due to changes in technology. 3. Focus on Objectives HRM gives a lot of importance to achievement of objectives. The four main objectives HRM has to achieve are :1. 2. 3. 4. Individual objectives of the staff. Group or Departmental objectives. Organisational objectives. Societal objectives.

4. Universal Application HRM has universal application. That is, it can be used for business as well as for other organisations such as schools, colleges, hospital, religious organisations, etc. 5. Integrated use of Subsystems HRM involves the integrated use of sub-systems such as Training and Development, Career Development, Orgnisational Development, Performance Appraisal, Potential Appraisal, etc. All these subsystems increase the efficiency of the staff and bring success to the organisation. 6. Multidisciplinary HRM is multidisciplinary. That is, it uses many different subjects such as Psychology, Communication, Philosophy, Sociology, Management, Education, etc. 7. Developes Team Spirit HRM tries to develop the team spirit of the full organisation. Team spirit helps the staff to work together for achieving the objectives of the organisation. Now-a-days more importance is given to team work and not to individuals.

8. Develops Staff Potentialities HRM develops the potentialities of the staff by giving them training and development. This will make the staff more efficient, and it will give them more job satisfaction. 9. Key Elements for solving problems Today, we have rapid technological, managerial, economic and social changes. These changes bring many problems. HRM continuously tries to solve these problems. 10. Long Term Benefits HRM brings many long term benefits to the individuals (staff), the organisation and the society. It gives many financial and non-financial benefits to the staff. It improves the image and profits of the organisation. It also provides a regular supply of good quality goods and services at reasonable prices to the society. Scope of Human Resource Management HRM The Scope of Human Resource Management HRM is discussed below :1. Human Resource Planning (HRP) HRP estimates the manpower demand and manpower supply of the organisation. It compares the manpower demand and manpower supply. If there is manpower surplus then it gives voluntary retirement, lay-off, etc. to some employees. If there is manpower shortage then it hires employees from outside, gives promotion to employees, etc. 2. Acquisition Function Acquisition function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of employees. HRM uses the scientific selection procedure for selecting the right man for the right post. The "right man" is given proper placement and induction. 3. Placement Function HRM also performs the placement function. Placement is done after selection of employees. It means to put the right man in the right place of work. Proper placement gives job satisfaction to the employees, and it increases their efficiency. 4. Performance Appraisal HRM also conducts a performance appraisal. Performance appraisal is a systematic evaluation of the employees' performance at work. It informs the employees about their strengths and weakness. It also advises them about how to increase their strengths and remove their weaknesses. 5. Career Development

HRM also helps the employees in planning and developing their careers. It informs them about future promotions and how to get these promotions. It helps them to grow and develop in the organisation. 6. Training and Development HRM also provides training and development to the employees. Training means to increase the knowledge and skills of the employee for doing a particular job. Training given to managers is called development. So, training is given to employees while development is given to managers. 7. Quality of Work Life (QWL) HRM also includes Quality of Work Life. QWL is a technique for improving productivity and quality of work. It involves labour management co-operation, collective bargaining and participative management. QWL provides good working conditions, job security, good pay and other facilities such as flexible working hours, freedom to suggest changes or improvements, etc. OWL creates a sense of belonging. This benefits the organisation as well as the individual employees. 8. Employees' Welfare HRM provides employee's welfare. Welfare measures include paid holidays, medical insurance, canteen facilities, recreation facilities, rest room, transport facilities, etc. Proper and timely welfare facilities motivate the employees to work hard in the organisation. 9. Compensation Function Employees must be rewarded and recognised for their performance. HRM makes proper compensation packages for the employees. These packages motivate the employees and increase their morale. Rewards are given to individuals, and teams. The rewards may be in the form of higher pay, bonus, other monetary incentives, and non-monetary incentives such as a certificate of appreciation, etc. 10. Labour Relations HRM is also includes industrial relations. It includes union management relations, joint consultations, negotiating, collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes, etc. 11. Maintenance Function HRM also performs the maintenance function. That is, protecting and promoting the health and safety of the employees. HRM introduces health and safety measures. It also provides other benefits such as medical aid, provident fund, pension, gratuity, maternity benefits, accident compensation, etc., to the employees.