Information technology (IT) – a wonderful creation of man-brought significant shifts in our day to day life. Indian software professionals made significant strides in the information technology industry of USA. Employees of Rourkela Steel Plant turned the loss-making unit into a profit making company.

Similarly, employees of TISCO, acquired core competencies for their company which was affected by dumping of steel from China. Most of the public sector companies like Hindustan Machine Tools Ltd. (HMT), and Hindustan Cables Ltd., (HCL) became sick. Thus, the people make or man an organization.

Every company or organization is deeply interested in having an answer to this question. The answer to this question centered around the following areas:

Getting the people who can make an organization.

Enabling those people to acquire required capabilities to make a successful organization.

Motivating them to contribute their resources continuously for running the organization successfully.

We need to know an important concept i.e., human resources. People with required skills to make an organization are generally referred to as human resources.

In simple sense, human resourcesmanagement means employing people,developing their resources, utilizing,maintain and compensating their services intune with the job and organizationalrequirements with a view to contribute to thegoals of the organization, individual and thesociety.

Michael J. Jucius defined Personnel Management as “the field of management which has to do with planning, organizing, directing and controlling the functions of procuring, developing, maintaining and utilising a labour force, such that the –

Objectives for which the company is established are attained economically and effectively,

Objectives of all levels of personnel are served to the highest possible degree, and

Objectives of society are duly considered and served.”

Human Resources Management (HRM) can be defined as managing (planning, organizing, directing and controlling) the functions of employing, developing and compensating human resources resulting in the creation and development of human relations with a view to contribute proportionately (due to them) to the organizational, individual and social goals.

Human resources management is concerned with employees both as individuals and as a group in attaining goals. It is also concerned with behavior, emotional and social aspects of personnel.

It is concerned with the development of human resources, i.e., knowledge, capability, skills, potentialities and attaining and achieving employee goals, including job satisfaction.

Human resources management covers all levels (low, middle, and top) and categories (unskilled, skilled, technical, professional, clerical and managerial) of employees. It covers both organized and unorganized employees.

IT applies to the employees in all types organizations in the world (industry, trade, service, commerce, economic, social, religious, political and government departments). Thus, it is common in all types of organizations.

Human resources management is a continuous and never ending process.

It aims at attaining the goals of organization, individual and society in an integrated approach.

Organization goals may include survival, growth and development in addition to profitability, productivity, innovation, excellence etc.

Individual employee-goals consist of job satisfaction, job security, high salary, attractive fringe benefits, challenging works, pride, status, recognition, opportunity for development etc.

Goals of the society include equal employment opportunity, protecting the disadvantaged sections and physically handicapped, minimization of inequalities in the distribution of income by minimizing wage differentials, developing the society in general by organizing developmental activities etc.

Human resources management is a responsibility of all line managers and a function of staff managers in an organization.

It is concerned mostly with managing human resource at work.

Human resources management is the central sub-system of an organization and its permeates all types of functional management, viz., production management, marketing management and financial management.

Human resources management aims at securing unreserved co-operation from all employees in order to attain predetermined goals.

Further, the analysis shows that most of the definitions are oriented towards the functions and objectives of human resources management. As such, the detailed discussion about the functions and objectives of HRM will help us to understand the term HRM more clearly and objectively.

HRM has unique significance in every organisation because it makes possible the effective use of human resources along with material resources. Effective HRM has a significant value in an organisation in terms of the following:

It helps in attracting and retaining competent and capable personnel in the organisation. The planning function of HRM ensures recruitment/acquisition of different types of personnel in the short, medium and long-run.

It helps to identify the best people for available jobs through recruitment and selection procedure. It also ensures that they are placed in suitable positions.

Through performance appraisal and training it enables individuals to develop skill, knowledge, abilities and attitudes from those they currently possess.

It also motivates personnel to excel in their work.

It provides maximum opportunity for personnel development.

It is helpful in achieving organizational goals, efficiency, and effectiveness.

It helps to maintain a balance between job seekers in the labour market and available jobs.

It helps in providing suitable and most productive employment.

It aids to bring about harmonious relations among different work groups.

It helps to improve employees working skill and capacity.

It helps to reduce income disparities through standardization of wages in the organisation.

It aids knowledge creation dissemination, sharing and utilization in the organisation called knowledge management.

Objectives are pre-determined goals to whichindividual or group activity in an organisation isdirected. Objectives of personnel management areinfluenced by social objectives, organizationalobjectives, functional objectives and individualobjectives. Institutions are instituted to attaincertain specific objectives. The objectives of theeconomic institutions are mostly to earn profits,and that of educational institutions are mostly toimpart education and/or conduct research so onand so forth. However, the fundamental objectiveof any organisation is survival. Organizations arenot just satisfied with this goal. Further, the goalof most of the organisation is growth and/orprofits.

To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.

to establish and maintain sound organizational structure and desirable working relationships among all the members of the organization.

to secure the integration of individual and groups within the organization by co-ordination of the individual and group goals with those of the organization.

to create facilities and opportunities for individual or group development so as to match it with the growth of the organisation.

to attain an effective utilization of human resources in the achievement of organizational goals.

To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security and measures for challenging work, prestige, recognition, security, status etc.

To respect the individual, as people are the greatest asset.

To govern individual and company relationships with the highest standard of conduct and integrity.

To be close to the customer through employees.

To achieve and maintain leadership in people management.

(I) Managerial functions and

(II) Operative functions.

Planning

Organizing

Directing

Controlling.

It is a pre-determined course of action. Planning pertains to formulating strategies of personnel programmers' and changes in advance that will contribute to the organizational goals. In other words, it involves planning of human resources, requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behavior of employees and their impact on the organization.

An organisation is a means to an end. It is essential to carry out the determined course of action. In the words of J.C. Massie, an organisation is a “Structure and a proves by which a co-operative group of human beings allocates its task among its members.” Complex relationships exist between the specialized departments and the general departments as many top managers are seeking the advice of the personnel manager. Thus, an organisation establishers relationships among the employees so that they can collectively contribute to the attainment of company goals.

The next logical function after completing planning and organizing is the execution of the plan. The basic function of personnel management at any level is motivating, commanding, leading and activating people. The willing and effective co-operation of employees for the attainment of organizational goals is possible through proper direction. Tapping the maximum potentialities of the people is possible through motivation and command. Co-ordination deals with the task of blending efforts in order to ensure successful attainment of an objective. The personnel manager has to co-ordinate various managers at different levels as far as personnel functions are concerned.

After planning, organizing and directing various activities of personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions of an organisation. Controlling also involves checking, verifying and comparing of the actual with the plans, identification of deviations if any and correcting of identified deviations. Thus, action and operation are adjusted to pre-determined plans and standards through control. Auditing training programmes, analyzing labour turnover records, directing morale surveys, conducting separate interviews are some of the means for controlling the personnel management function and making it effective.

The operative functions of human resources management are related to specific activities of personnel management viz., employment, development, compensation and relations. All these functions are interacted with managerial functions. Further, these functions are to be performed in conjunction with management functions.

Employment. Human Resource Development. Compensation. Human Relations. Industrial Relations.

It is first operative function of Human Resources Management (HRM). Employment is concerned with securing and employing the people possessing the required kind and level of human resources necessary to achieve the organizational objectives. It covers functions such as job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility.

It is the process of study and collection of information relating to the operations and responsibilities of a specific job. It includes:

Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials.

Preparation of job description, job specifications, job requirements and employee specifications which will help in identifying the nature, levels and quantum of human resources.

Providing the guides, plans and basis for job design and for all operative functions of HRM.

It is a process for determination and assuring that the organisation will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organisation and which would provide satisfaction for the individuals involved. It involves:

Estimation of present and future requirements and supply of human resources based on objectives and long range plans of the organisation.

Calculation of net human resources requirements based on present inventory of human resources.

Taking steps to mould, change and develop the strength of existing employees in the organisation so as to meet the future human resources requirements.

Preparation of action programmes to get the rest of human resources from outside the organisation and to develop the human resources in terms of existing employees.

It is the process of searching for prospective employees and stimulating them to apply for jobs in an organisation. It deals with:

Identification of existing sources of applicants and developing them.

Creation/identification of new sources of applicants.

Stimulating the candidates to apply for jobs in the organisation.

Striking a balance between internal and external sources.

It is the process of ascertaining the qualifications, experiences, skills, knowledge etc., of an applicant with a view to appraising his/her suitability to a job. This function includes:

Framing and developing application blanks. Creating and developing valid and reliable

testing techniques. Formulating interviewing techniques. Checking of references. Setting up a medical examination policy and

procedure. Line manager’s decision. Sending letters of appointment and rejection. Employing the selected candidates who report for

duty.

It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employees specifications with job requirements. This function includes:

Counseling the functional managers regarding placement.

Conducting follow-up study, appraising employee performance in order to determine employee adjustment with the job.

Correcting misplacements, if any.

Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and people etc., of the organisation.

Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc.

Introduce the employee to the people with whom has to work such as peers, supervisors and subordinates.

Mould the employee attitude by orienting him to the new working and social environment.

It is the process of improving, moulding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc., based on present and future job and organizational requirements. Thus functions includes:

It is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. It includes:

Developing policies, procedures and techniques.

Helping the functional managers.

Reviewing of reports and consolidation of reports.

Evaluating the effectiveness of various programmes.

It is the process of imparting to the employees technical and operating skills and knowledge. It includes:

Identification of training needs of the individuals and the company.

Developing suitable training programmes.

Helping and advising line management in the conduct of training programmes.

Imparting of requisite job skills and knowledge to employees.

Evaluating the effectiveness of training programmes.

It is the proves of designing and conducting suitable executive development programmes so as to develop the managerial and human relations skill of employees. It includes:

Identification of the areas in which management development is needed.

Conducting development programmes. Motivating the executives. Designing special development programmes for

promotions. Using the services of specialists, and/or utilising

of the institutional executive development programmes.

Evaluating the effectiveness of executive development programmes.

It is the planning of one’s career and implementation of career plans by means of education, training, job search and acquisition of work experiences. It includes internal and external mobility.

It includes vertical and horizontal movement of an employee within an organization. It consists of transfer, promotion and demotion.

It is the process of placing employees in the same level jobs where they can be utilized more effectively in consistence with their potentialities and needs of the employees and the organisation. It also deals with:

Developing transfer policies and procedures.

Guiding employees and line management on transfers.

Evaluating the execution of transfer policies and procedures.

It deals with upward reassignment given to an employee in the organisation to occupy higher position which commands better status and/or pay keeping in view the human resources of the employees and the job requirements.

This function covers the formulating of equitable, fair and consistent promotion policies and procedures.

Advising line management and employees on matters relating to promotions.

Evaluating the execution of promotion policies and procedures.

It deals with downward reassignment to an employee in the organisation.

Develop equitable, fair and consistent demotion policies and procedures.

Advising line managers on matters relating to demotions.

Oversee the implementations of demotion policies and procedures.

Employers prefer to retain more talented employees while they retrench less talented employees. Employers modify existing human resource strategies and craft new strategies in order to pay more salaries, provide more benefits and create high quality of work life to retain the best employees.

Change implies the creation of imbalances in the existent pattern or situation. Organisation development is a planned process designed to improve organizational effectiveness and health through modifications in individual and group behavior, culture and systems of the organisation using knowledge and technology of applied behavior sciences.

It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc.

It is the process of determining relative worth of jobs.

Select suitable job evaluation techniques.

Classify jobs into various categories.

Determining relative value of jobs in various categories.

This is the process of developing and operating a suitable wage and salary programme. It covers:

Conducting wage and salary survey.

Determining wage and salary rates based on various factors.

Administering wage and salary programmes

Evaluating its effectiveness.

It is the process of formulating, administering and reviewing the schemes of financial incentives in addition to regular payment of wages and salary. It includes:

Formulating incentive payment schemes.

Helping functional managers on the operation.

Review them periodically to evaluate effectiveness.

It includes payment of statutory bonus according to the Payment of Bonus Act, 1965 and its latest amendments.

These are the various benefits at the fringe of the wage. Management provides these benefits to motivate the employees and to meet their life’s contingencies. These benefits include:

Disablement benefit Housing facilities Educational facilities to employees and children Canteen facilities Recreational facilities Conveyance facilities Credit facilities Legal clinics Medical, maternity and welfare facilities Company stores.

Management provide social security to their employees in addition to the fringe benefits. These measures include:

Workmen’s compensation to those workers (or their dependents) who involve in accidents.

Maternity benefits to women employees.

Sickness benefits and medical benefits.

Disablement benefits/allowance

Dependent benefits

Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and the management.

It is the process of interaction among human beings. Human relations is an area of management in integrating people into work situations in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction.

Industrial relations refers to the study of relations among employees, employer, government and trade unions, Industrial relations include:

Indian labour market

Trade unionism

Collective bargaining

Industrial conflicts

Worker’s participation in management and

Quality circles.

Human Resources Management has been advancing at a fast rate. The recent trends in HRM include:

Quality of work life

Total quality in human resources

HR accounting, audit and research and

Recent techniques of HRM