Human Resource Management

Employees are the key assets of the organization. Human Resource Management (HRM) focuses on recruitment, training, management, and providing direction for the employees who work for the organization.

Human Resource Management function is to deal with issues related to the employees such as compensation, hiring, performance management, organization development, safety, benefits, employee motivation, communication, administration, training and retention.

Human Resource Management also help to manage people and the workplace culture and environment. Effective Human Resource Management (HRM) enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives.

Human Resource Management (HRM) is expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and measurements to demonstrate value. Effect Human Resource Management (HRM) leads to organizational growth by achieving highest degree of productivity.

Human Resource Management Functions are as follows :

    1. Human Resource Planning: is understood as the process of forecasting an organizations future demand for, and supply of, the right type of people in the right number.
    2. Job Analysis: is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specification.
    3. Recruitment: is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.
    4. Selection: is the process of differentiating between applicants in order to identify (and hire) those with greater likelihood of success in a job.
    5. Placement: is understood as the allocation of people to jobs. It is the assignment or re-assignment of an employee to a new or different job.
    6. Training and development: It is an attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge. The need for training and development is determined by employee’s performance deficiency, computed as follows: Training and development need = Standard performance – Actual performance
    7. Remuneration: is the compensation an employee receives in return for his or her contribution to the organization.
    8. Motivation: is a process that starts with a psychological or physiological deficiency or need that activates behavior or a drive that is aimed at a goal or an incentive

Participative management: Workers participation may broadly be taken to cover all terms of association of workers and their representatives with the decision making process, ranging from exchange of information, consultations, decisions and negotiations to more institutionalized forms such as the presence of workers members on management or supervisory boards.

  • Communication: may be understood as the process of exchanging information, and understanding among people.
    Safety and health: Safety means freedom from the occurrence or risk of injury or loss. In order to ensure the continuing good health of their employees, the HRM focuses on the need for healthy workers and health services.
  • Welfare: as defined by ILO at its Asian Regional Conference, defined labour welfare as a term which is understood to include such services, facilities, and amenities as may be established in or in the vicinity of undertakings to enable the person employed in them to perform their work in healthy, congenial surroundings and to provide them with amenities conducive to good health and high morale.
  • Transfer: involves a change in the job (accompanied by a change in the place of the job) of an employee without a change in the responsibilities or remuneration.


Separations: Lay-offs, resignations and dismissals separate employees from the employers.

  • Employee Relations: is concerned with the systems, rules and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers, and to regulate the ways in which employers treat their employees.
    Disputes and their settlement: Industrial disputes mean any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person.