HRM 1st Unit 

Unit 1:HRM Introduction, Definition & Concept:

1. CONCEPT OF HUMAN RESOURCE MANAGEMENT (HRM)

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.

2. OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

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.

2.1 Organizational 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

2.2 Functional Objectives

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

2.3 Personal Objectives

HRM also focuses on fulfilling the personal needs of employees such as:

• Job satisfaction

• Career growth and development

• Recognition and motivation

• Work-life balance

2.4 Social Objectives

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

3. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

HRM functions describe what HR managers actually do. These functions are usually classified into managerial functions and operative functions.

3.1 Managerial Functions of HRM

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.

3.2 Operative Functions of HRM

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.

4. SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of HRM is very wide and covers all aspects related to managing people in an organization.

4.1 Personnel Aspect

• Manpower planning

• Recruitment and selection

• Training and development

• Performance appraisal

4.2 Welfare Aspect

• Health and safety measures

• Employee welfare facilities

• Work-life balance initiatives

4.3 Industrial Relations Aspect

• Trade union relations

• Collective bargaining

• Grievance handling

4.4 Strategic Aspect

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.

5. IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

HRM is important for both organizations and employees. Its importance can be understood under the following points:

5.1 Effective Utilization of Human Resources

HRM ensures that employees’ skills and talents are used efficiently, avoiding wastage of human potential.

5.2 Improved Employee Performance

Through training, motivation, and appraisal, HRM improves employee performance and productivity.

5.3 Higher Job Satisfaction

Fair compensation, recognition, and growth opportunities lead to higher job satisfaction among employees.

5.4 Reduction in Employee Turnover

Good HR practices help in retaining skilled employees and reducing turnover rates.

5.5 Better Industrial Relations

HRM helps maintain harmony between management and employees, reducing conflicts and disputes.

5.6 Organizational Growth

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.

6. HUMAN RESOURCE PLANNING (HRP)

6.1 Meaning of Human Resource Planning

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?

6.2 Objectives of HR Planning

• To ensure adequate supply of manpower

• To avoid overstaffing and understaffing

• To develop employee skills in advance

• To improve organizational efficiency

6.3 Process of Human Resource Planning

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.

7. APPROACHES TO HUMAN RESOURCE MANAGEMENT

Different organizations follow different approaches to HRM depending on their philosophy and objectives.

7.1 Traditional Approach

This approach treats employees mainly as workers. Focus is on:

• Discipline

• Control

• Cost reduction

Employee welfare receives limited attention.

7.2 Behavioral Approach

This approach emphasizes human relations. It focuses on:

• Motivation

• Leadership

• Job satisfaction

• Group behavior

Employees are considered social beings with emotional needs.

7.3 Strategic Approach

Under this approach, HRM is linked with organizational strategy. HR managers play an active role in decision-making and long-term planning.

7.4 Humanistic Approach

This approach considers employees as valuable human assets. It emphasizes:

• Employee dignity

• Personal development

• Mutual trust

7.5 Systems Approach

The organization is viewed as a system where HRM interacts with other departments such as marketing, finance, and operations.