Unit 1:HRM Introduction, Definition & Concept:
Human Resource Management (HRM) is a very important part of modern organizations. It deals with the management of people at work. In simple words, HRM focuses on how employees are recruited, developed, motivated, and retained so that organizational goals can be achieved effectively.
Earlier, employees were treated only as a factor of production. However, with the development of management thought, organizations realized that human resources are the most valuable asset. Machines, technology, and money cannot work on their own; they require people to operate and manage them. Therefore, HRM emphasizes treating employees as human beings with skills, emotions, and potential, not just as workers.
HRM aims to ensure that the right people are placed in the right jobs at the right time, and they are properly trained and motivated to give their best performance. In service industries like hotels and hospitality, HRM plays a crucial role because service quality depends mainly on employee behavior, attitude, and skills.
The objectives of HRM explain why HRM activities are carried out in an organization. These objectives are broadly divided into organizational, functional, personal, and social objectives.
The main objective of HRM is to help the organization achieve its goals. HRM ensures:
Effective utilization of human resources
Increased productivity and efficiency
Achievement of organizational objectives
Development of a competent workforce
HRM ensures that all HR functions are performed efficiently. These objectives include:
Proper recruitment and selection of employees
Training and development of staff
Fair performance appraisal system
Effective compensation and reward management
HRM also focuses on fulfilling the personal needs of employees such as:
Job satisfaction
Career growth and development
Recognition and motivation
Work-life balance
Organizations have social responsibilities towards society. HRM helps by:
Providing equal employment opportunities
Ensuring ethical employment practices
Maintaining healthy work conditions
Contributing to social welfare
HRM functions describe what HR managers actually do. These functions are usually classified into managerial functions and operative functions.
a) Planning
Planning involves deciding future HR requirements. It includes manpower planning, job analysis, and forecasting employee needs.
b) Organizing
Organizing involves designing the organizational structure, allocating work, and defining authority and responsibility.
c) Directing
Directing includes guiding, supervising, motivating, and communicating with employees to achieve goals.
d) Controlling
Controlling ensures that HR activities are carried out as planned. It involves performance appraisal, monitoring employee behavior, and corrective actions.
a) Recruitment and Selection
Recruitment involves attracting candidates, while selection involves choosing the most suitable employee for the job.
b) Training and Development
Training improves employee skills for current jobs, while development prepares employees for future responsibilities.
c) Compensation Management
This includes wages, salaries, incentives, bonuses, and fringe benefits to motivate employees.
d) Performance Appraisal
Performance appraisal evaluates employee performance and helps in promotions, rewards, and career planning.
e) Employee Welfare
Employee welfare includes health, safety, working conditions, and other facilities for employee well-being.
f) Industrial Relations
This function deals with maintaining healthy relations between management and employees, including grievance handling and dispute resolution.
The scope of HRM is very wide and covers all aspects related to managing people in an organization.
Manpower planning
Recruitment and selection
Training and development
Performance appraisal
Health and safety measures
Employee welfare facilities
Work-life balance initiatives
Trade union relations
Collective bargaining
Grievance handling
Modern HRM also plays a strategic role by:
Aligning HR policies with organizational strategy
Developing leadership skills
Managing organizational change
In hospitality organizations, the scope of HRM is even broader because employees are in direct contact with guests, and their behavior directly affects guest satisfaction.
HRM is important for both organizations and employees. Its importance can be understood under the following points:
HRM ensures that employees’ skills and talents are used efficiently, avoiding wastage of human potential.
Through training, motivation, and appraisal, HRM improves employee performance and productivity.
Fair compensation, recognition, and growth opportunities lead to higher job satisfaction among employees.
Good HR practices help in retaining skilled employees and reducing turnover rates.
HRM helps maintain harmony between management and employees, reducing conflicts and disputes.
An efficient HR department contributes to long-term organizational success and sustainability.
In service sectors like hotels, effective HRM leads to better service quality, positive guest experience, and strong brand image.
Human Resource Planning is the process of forecasting future manpower requirements and ensuring that the organization has the right number of employees with the right skills.
In simple terms, HRP answers the following questions:
How many employees are needed?
What type of employees are required?
When and where will they be needed?
To ensure adequate supply of manpower
To avoid overstaffing and understaffing
To develop employee skills in advance
To improve organizational efficiency
Step 1: Analysis of Organizational Objectives
HR planning starts with understanding organizational goals and future plans.
Step 2: Forecasting Manpower Requirements
Estimating the number and type of employees required in the future.
Step 3: Analyzing Current Manpower
Assessing existing employees’ skills, performance, and potential.
Step 4: Forecasting Manpower Supply
Estimating internal and external sources of manpower availability.
Step 5: Matching Demand and Supply
Balancing manpower demand with available supply.
Step 6: Action Plans
Preparing plans for recruitment, training, promotion, or retrenchment.
Step 7: Review and Control
Regular monitoring and revision of HR plans.
Different organizations follow different approaches to HRM depending on their philosophy and objectives.
This approach treats employees mainly as workers. Focus is on:
Discipline
Control
Cost reduction
Employee welfare receives limited attention.
This approach emphasizes human relations. It focuses on:
Motivation
Leadership
Job satisfaction
Group behavior
Employees are considered social beings with emotional needs.
Under this approach, HRM is linked with organizational strategy. HR managers play an active role in decision-making and long-term planning.
This approach considers employees as valuable human assets. It emphasizes:
Employee dignity
Personal development
Mutual trust
The organization is viewed as a system where HRM interacts with other departments such as marketing, finance, and operations.