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Defining HRM

Human: refer to the skilled workforce in the organisation.

Resource: refer to limited availability or scarce.
Management: refer to maximise or proper utilisation and make best use of limited
and a scarce resource.
Altogether, human resource management is the process of proper and maximise
utilisation of available limited skilled workforce. The core purpose of the human
resource management is to make efficient use of existing human resource in the
organisation. The Best example at present situation is, construction industry has
been facing serious shortage of skilled workforce. It is expected to triple in the next
decade from the present 30 per cent, will negatively impact the overall productivity of
the sector, warn industry experts.
Every organisations' desire is to have skilled and competent people to make their
organisation more effective than their competitors. humans are very important
assets for the organisation rather than land and buildings, without employees
( humans ) no activity in the organisation can be done. Machines are meant to to
produce more goods with good quality but they should get operated by the human

"you must treat your employees with respect and dignity because in the
most automated factory in the world, you need the power of human
mind. That is what brings in innovation. If you want high quality minds to
work for you, then you must protect the respect and dignity. "
---Mr N.R. Narayana Murthy, Chairman Emeritus, Infosys Ltd >>.
Our progress as a nation can be no swifter than our progress in
education. The human mind is our fundamental resource. - John F.
Great Quotations
The greatest tragedy in America is not the destruction of our natural
resources, though that tragedy is great. The truly great tragedy is the
destruction of our human resources by our failure to fully utilize our
abilities, which means that most men and women go to their graves with
their music still in them. - Oliver Wendell Holmes.

The human mind is our fundamental resource. - John F. Kennedy.

The following four definitions encompass the aforesaid core issues in human
resource management. HRM could thus be referred to as;
1. ..a series of integrated decisions that govern employer-employee relations.
Their quality contributes to the ability of organisations and employees to achieve
their objectives (Milkovich & Boudreau, 1997).
2. Concerned with the people dimension to management. Since every
organisation comprises people, acquiring their services, developing their skills,
motivating them to higher levels of performance and ensuring that they continue at
the same level of commitment to the organisation are essential to achieving
organisational goal. This is true, regardless of the type of organisation: viz.
government, business, education, health, recreation, or social action. (Decenzo &
Robbins, 1989).
3. the planning, organising directing and controlling of the procurement,
development, compensation, integration, and maintenance of human resource to
the end those individual, organisational, and social objectives are accomplished.
(Flippo, 1984).
4. .. The organisation function that focuses on the effective management,
direction, and utilisation of people; both the people who manage produce and
market and sell the products and services of an organisation and those who support
organisational activities. It deals with the human element in the organisation,
people as individuals and groups, their recruitment, selection, assignment,
motivation, empowerment, compensation, utilisation, services, training,
development, promotion, termination and retirement.(Tracey,1994 )

Human Resource Management: Objectives

To help the organization reach its goals.
To ensure effective utilization and maximum development of human resources.
To ensure respect for human beings. To identify and satisfy the needs of
To ensure reconciliation of individual goals with those of the organization.
To achieve and maintain high morale among employees.
To provide the organization with well-trained and well-motivated employees.
To increase to the fullest the employees job satisfaction and self-actualization.

To develop and maintain a quality of work life.

To be ethically and socially responsive to the needs of society.
To develop overall personality of each employee in its multidimensional aspect.
To enhance employees capabilities to perform the present job.
To equip the employees with precision and clarity in transaction of business.
To inculcate the sense of team spirit, team work and inter-team collaboration.

Societal objective.To be socially responsible to the needs and
challenges of society while minimizing the negative impact of such
demands upon the organization. The failure of organizations to use their
resources for society's benefit may result in restrictions. For example,
societies may pass laws that limit human resource decisions.
Organizational objective. To recognize that HRM exists to contribute
to organizational effectiveness. HRM is not an end in itself; it is only a
means to assist the organization with its primary objectives. Simply
stated, the department exists to serve the rest of the organization.
Functional objective.To maintain the department's contribution at a level
appropriate to the organisation's needs. Resources are wasted when
HRM is more or less sophisticated than the organisation demands. A
department's level of service must be appropriate for the organisation it
Personal objective. To assist employees in achieving their personal
goals, at least insofar as these goals enhance the individual's
contribution to the organisation. Personal objectives of employees must
be met if workers are to be maintained, retained and motivated.
Otherwise, employee performance and satisfaction may decline, and
employees may leave the organisation.

Nature of Human Resource Management

Human Resource Management involves management functions like

planning, organizing, directing and controlling
It involves procurement, development, maintenance of human
It helps to achieve individual, organizational and social objectives
Human Resource Management is a multidisciplinary subject. It
includes the study of management, psychology, communication,
economics and sociology.
It involves team spirit and team work.
It is a continuous process.

Human Resource Management: Scope

The scope of HRM is very wide:
1. Personnel aspect-This is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, training and
development, layoff and retrenchment, remuneration, incentives,
productivity etc.
2. Welfare aspect-It deals with working conditions and amenities such as
canteens, creches, rest and lunch rooms, housing, transport, medical
assistance, education, healthand safety, recreation facilities, etc.
3. Industrial relations aspect-This covers union-management relations,
joint consultation, collective bargaining, grievance and disciplinary
procedures, settlement of disputes, etc.
The primary responsibilities of a human resource manager are:
1. To develop a thorough knowledge of corporate culture, plans and policies.

2. To act as an internal change agent and consultant.

3. To initiate change and act as an expert and facilitator.
4. To actively involve himself in companys strategy formulation.
5. To keep communication lines open between the HRD function and individuals
and groups both within and outside the organisation.
6. To identify and evolve HRD strategies in consonance with overall business
7. To facilitate the development of various organisational teams and their
working relationship with other teams and individuals.
8. To try and relate people and work so that the organisation objectives are
achieved effectively and efficiently.
9. To diagnose problems and to determine appropriate solution particularly in the
human resources areas.
10.To provide co-ordination and support services for the delivery of HRD
programmes and services.
11. To evaluate the impact of an HRD intervention or to conduct research so as to
identify, develop or test how HRD in general has improved individual or
organisational performance.

On the basis of the various issues and challenges the following
suggestions will be of much help to the philosophy of HRM with regard to
1. There should be a properly defined recruitment policy in the organization
that should give its focus on professional aspect and merit based
2. In every decision-making process there should be given proper

weightage to the aspect that employees are involved wherever possible. It

will ultimately lead to sense of team spirit, team-work and inter-team
3. Opportunity and comprehensive framework should be provided for full
expression of employees talents and manifest potentialities.
4. Networking skills of the organizations should be developed internally
5. For performance appraisal of the employees emphasis should be given
to 360 degree feedback which is based on the review by superiors, peers,
6. 360 degree feedback will further lead to increased focus on customer
services, creating of highly involved workforce, decreased hierarchies,
avoiding discrimination and biases and identifying performance threshold.
7. More emphasis should be given to Total Quality Management. TQM will
cover all employees at all levels; it will conform to customers needs and
expectations; it will ensure effective utilization of resources and will lead
towards continuous improvement in all spheres and activities of the
8. There should be focus on job rotation so that vision and knowledge of
the employees are broadened as well as potentialities of the employees
9. For proper utilization of manpower in the organization the concept of six
sigma of improving productivity should be intermingled in the HRM
10. The capacities of the employees should be assessed through potential
appraisal for performing new roles and responsibilities. It should not be
confined to organizational aspects only but the environmental changes of
political, economic and social considerations should also be taken into
11. The career of the employees should be planned in such a way that
individualizing process and socializing process come together for fusion
process and career planning should constitute the part of human resource

To conclude Human Resource Management should be linked with strategic
goals and objectives in order to improve business performance and
develop organizational cultures that foster innovation and flexibility. All the
above futuristic visions coupled with strategic goals and objectives should
be based on 3 Hs of Heart, Head and Hand i.e., we should feel by Heart,
think by Head and implement by Hand.

HR Policies of Aditya Birla Group

About Birlas
Aditya Birla Group started in 1857.
Shiv Narayan Birla started cotton trading operations in the
small town of Pilani in Rajasthan.
Ghyanshyamdas Birla
manufacturing company.





Grandson of G.D.Birla is Aditya Vikram Birla (A.V.Birla)-1964

Son of A.V.Birla is Kumar Mangalam Birla(K.M.Birla)-1995.
Headquartered in Mumbai.
Operates in 33 countries with more than 1,33,000 employees
US$ 35 billion conglomerate which gets 60 % of its revenues
from outside India.
Position in India

Largest cement player in India.

The top fashion (branded apparel) and lifestyle player.
Second largest player in viscose filament yarn.
The largest producer in chlor-alkali sector. Among the top three mobile
telecom players.
A leading player in life insurance and asset management.
Among the top two supermarket chains in India.

HR Policies
1. Recruitment policy.
2. 360 Degree Appraisal.
3. Training / Talent Management
4. Recognition
5. Benefits
6. Happiness At Work
Some of the implementations were brought about byMr.K.M.Birla
himself and were later carried on by theorganizations H.R department.

(details of above are given in this link)

Competitive advantage