Unit I: Essentials of Human Resource Management (HRM)

Essentials of Human Resource Management (HRM)

Human Resource Management (HRM) is the process of recruiting, selecting, training, developing, and retaining employees in an organization. It focuses on improving employee performance and ensuring their growth while fulfilling organizational goals.

🔹 Functions of HRM (Human Resource Management)

HRM functions are divided into two categories:

A. Managerial Functions (Planning & managing HR activities)

B. Operative (Operational) Functions (Core HR tasks)

HRM vs. HRD (Human Resource Development)

Although both HRM and HRD deal with people in an organization, they have different focuses

Summary

• HRM is the overall management of employees – hiring, developing, retaining, and rewarding.
• Functions of HRM include both strategic (planning, organizing) and practical (recruitment, training, payroll) activities.
• HRD is a sub-function of HRM, mainly focused on training and career development of employees.
• Strategic Human Resource Management (Strategic HRM)

Meaning of Strategic HRM

Strategic HRM refers to the process of aligning human resource practices and policies with the overall strategic goals of the organization. It ensures that HR plays a key role in strategy formulation and implementation to achieve long-term business success.

In simple terms: Strategic HRM means using HR in a smart way to support the company's big goals.

🧩 Role of HRM in Strategy Formulation & Implementation

Barriers to Strategic HRM

Several challenges can make strategic HRM difficult:

Linking HR Strategy with Business Strategy

To make HR truly strategic, it must support and drive business goals.

Example: If a business strategy is to go digital, HR must hire IT experts, train employees in digital tools, and promote a tech-friendly culture.

📝 Summary

Roles of an HR Manager

The HR Manager plays a central role in managing people and aligning HR with business goals.

Roles of HR in Mergers and Acquisitions (M&A)

Mergers and acquisitions bring big changes, and HR plays a key role in managing people, culture, and communication.

Example: If Company A merges with Company B, HR ensures both teams work together smoothly, without fear or job insecurity.

Technology & HR

Technology is transforming HR by making it faster, smarter, and more efficient.

Changing Roles of HR Due to Technology

Technology has reshaped the traditional role of HR into a more strategic and analytical function.

Result: HR is no longer just a support function — it’s now a business partner and data-driven strategist.

📝 Summary Table

HRM Linkage with TQM & Productivity

HRM and Total Quality Management (TQM)

Total Quality Management (TQM) is a continuous process that focuses on improving quality in all areas of the organization—products, services, people, and processes.

TQM requires the involvement of all employees and aims for long-term success through customer satisfaction.

✅ Role of HRM in TQM

HRM plays a crucial role in implementing TQM because TQM is people-driven. HR ensures that employees are trained, motivated, and aligned with quality goals.

Example: In a TQM-driven company like Toyota, HR ensures all employees receive training in lean manufacturing and continuous improvement techniques.

HRM and Productivity

Productivity means how efficiently an organization uses its resources (especially human resources) to produce output.

It is usually measured as:

📌 Productivity = Output / Input

✅ How HRM Enhances Productivity

Example: Companies like Infosys use HR analytics to track and improve employee productivity through personalized training and feedback.

📝 HRM Linkage with TQM & Productivity

Conclusion

• HRM is not just about hiring and salaries—it plays a strategic role in quality and productivity.
• A strong HR system helps build a quality-conscious workforce, which improves products/services and boosts organizational productivity