Conceptual Framework of Human Resource Management (HRM)

Introduction

• Starting the first chapter on Human Resource Management (HRM).
• Emphasis on prior knowledge from Class 11th and 12th Business Studies.
• HRM entails managing human resources effectively in business.

Key Resources in Business (5M/6M)

• Man: The most crucial resource.
• Money: Financial resources needed for operations.
• Material: Raw materials for production.
• Machine: Equipment to process materials.
• Method: Procedures to combine materials and machines.
• Market: Some consider this as a sixth resource.

Importance of Human Resource (Man)

• Man is needed to operate other resources.
• Man's role includes decision-making, material handling, machine operation, and method application.
• HRM focuses on managing this human resource efficiently.

Concept of HRM

• HRM Definition: Managing human resources by acquiring, training, appraising, and maintaining good labor relationships.
• Core Functions: Training, development, motivation, health and safety, fairness, and compensation.
• Planning for HRM:
  • Estimating and identifying HR needs.
  • Setting standards and regulations.
  • Creating policies and development plans.
• Organizing HR:
  • Creating a work structure.
  • Assigning responsibilities and tasks.
  • Ensuring coordination between departments.

HRM Processes

• Directing: Providing guidance to the workforce.
• Controlling: Monitoring performance to ensure effectiveness.
• Performance Evaluation: Comparing standards to actual output and taking corrective actions.
• Relevance: Necessary for the functioning of any organization (religious, economic, social, political).

Benefits and Importance of HRM

• Organizational Level: Improves efficiency, effectiveness, quality, and cost management.
• Individual Level: Enhances job satisfaction and personal development.
• Societal Level: Skilled individuals contribute positively to society.
• National Level: Contributes to economic growth and improved living standards.

Evolution and Nature of HRM

• Historical development from 1930s focusing on employee relations and personal management.
• Involvement of principles from various disciplines like psychology, sociology, and economics.
• Continuous and comprehensive function essential for all organizational levels.

Objectives of HRM

• Achieving organizational goals through effective HRM.
• Enhancing workforce skills and abilities.
• Ensuring job satisfaction and motivation for employees.
• Communicating HR policies and maintaining quality work-life balance.
• Ethical and social responsibility towards employee welfare.

HRM Functions

Managerial Functions

• Planning: Strategizing HR needs and resources.
• Organizing: Structuring the workforce and their roles.
• Directing: Guiding and supervising employees.
• Controlling: Monitoring and evaluating performance.

Operational Functions

• Procurement: Acquiring talent and resources.
• Development: Training and development programs.
• Compensation: Designing fair compensation systems.
• Integration: Ensuring cohesive teamwork and collaboration.
• Maintenance: Sustaining employee well-being and satisfaction.

Roles, Status, and Competency of HR Manager

Roles of HR Manager

• Administrative Role:
  • Policy maker and administrative expert.
  • Advisor and housekeeper for organizational procedures.
  • Counselor and welfare officer for employees.
  • Legal consultant.
• Operational Role:
  • Recruiting talent and managing workforce.
  • Trainer, developer, and motivator.
  • Acting as a linking pin between various organizational divisions.
  • Mediator between employees and management.
• Strategic Role:
  • Formulating strategic plans for competitive advantage.
  • Providing purposeful direction and facilitating changes.

Competency of HR Manager

• Essential to have diverse skills, experience, and educational qualifications to manage HR effectively.