🌟 1.

Meaning and Functions of HRM

Meaning of HRM

HRM (Human Resource Management) is the process of recruiting, training,

evaluating, and rewarding employees. It also ensures that the workforce
contributes effectively to the achievement of the organization’s goals.
HRM is both an art and a science because it involves managing people
(art) and applying processes (science).

Functions of HRM

1. Recruitment & Selection – Finding and hiring the right people.

2. Training & Development – Improving employee skills.
3. Performance Appraisal – Measuring how well employees perform.
4. Compensation Management – Deciding salaries, bonuses,
incentives.
5. Employee Welfare & Safety – Ensuring well-being at the workplace.
6. Industrial Relations – Managing union and labor issues.
7. HR Planning – Forecasting manpower needs.
8. Compliance – Following labor laws and policies.

🌟 2. Meaning and Functions of MRD (Manpower Resource Development)

Meaning

MRD focuses on improving the quality of the human workforce. It is a

broader concept that includes training, education, and other
developmental activities to make employees more capable and
productive.

Functions

Skill development through training.

Preparing future leaders.

Enhancing employee potential.

Building a learning culture.

Aligning individual goals with organizational goals.

🌟 3. HRD (Human Resource Development)

Meaning
HRD is a continuous process of improving the capabilities of employees
through training, coaching, mentoring, and career development programs.

Objectives

Help employees grow professionally.

Improve organizational effectiveness.

Create a motivated and productive workforce.

Develop leadership and teamwork skills.

Features

Continuous and long-term process.

Employee-centered.

Aims at both personal and organizational growth.

Includes performance appraisals, career planning, and coaching.

🌟 4. Role of HRM in Strategic Formulation and Competitive Advantage

HRM contributes to strategy in the following ways:

Strategic Hiring – Hiring employees who support company vision.

Performance Management – Ensuring high employee productivity.

Training – Updating skills to meet future needs.

Employee Engagement – Keeping workers motivated and loyal.

Innovation & Flexibility – Encouraging creative thinking.

By aligning HR strategies with business strategies, organizations like

Infosys or Google gain competitive advantage.

🌟 5. Effect of HRM on Global Recruitment

Global HRM has changed recruitment significantly:

Technology Integration: Use of AI, LinkedIn, and online job portals.

Virtual Interviews: Reduced time and location barriers.

Global Talent Access: Hire from anywhere in the world.

Diversity Hiring: Focus on inclusive recruitment.

Employer Branding: Attract top talent with strong brand image.

🌟 6. Human Resource Planning (HRP)

Meaning
HRP is the process of identifying current and future human resource needs
to meet the goals of the organization.

Resources in HRM

Human resources: Skills, talents, and knowledge.

Technological resources: HR software, databases.

Financial resources: Budget for recruitment and training.

Legal resources: Employment laws and compliance policies.

🌟 7. Forecasting Demand and Supply of HR

Demand Forecasting

Estimating how many employees are needed in the future.

Methods: Trend analysis, ratio analysis, managerial judgment.

Supply Forecasting

Estimating available employees inside and outside the organization.

Sources: Promotions, retirements, external hiring, etc.

🌟 8. HRS (Human Resource Strategy)

Meaning

HRS aligns HR goals with organizational goals to ensure success.

Objectives

Long-term talent development.

Cost-effective workforce management.

Innovation through people.

Factors

Business plans.

Labor market conditions.

Technology.

Government regulations.

Functions

Workforce planning.

Skill gap analysis.

Policy formulation.

Leadership development.

🌟 9. Job Analysis

Meaning

Job analysis is the process of collecting information about a job to define

duties, responsibilities, and skills required.

Methods

Observation

Interviews

Questionnaires

Work logs

Steps

1. Select job to analyze.

2. Collect job information.
3. Validate data.
4. Write job description and specification.

Requirements

Expert HR professionals.

Manager support.

Employee cooperation.

🌟 10. Sources of Recruitment

Internal Sources: Promotions, transfers, referrals.

External Sources: Campus recruitment, job portals, advertisements.

🌟 11. Oblique Method

Used during selection to test personality and behavior indirectly, like:

Psychological Tests

Group Discussions

Assessment Centers

These assess leadership, attitude, and emotional intelligence.

🌟 12. Training
Meaning

Training is a planned effort to increase employee skills for performing a job

effectively.

Needs

To update knowledge.

To reduce errors.

For new employees.

Benefits

Productivity increase.

Motivation boost.

Reduces supervision.

Methods

On-the-job: Job rotation, mentoring.

Off-the-job: Seminars, role plays, e-learning.

🌟 13. Performance Analysis / Merit Rating

Meaning

Evaluation of employee performance against set standards.

Features

Systematic and objective.

Based on set goals.

Feedback-oriented.

Objectives

Identify performers.

Determine pay and promotions.

Plan development.

Benefits

Builds accountability.

Improves morale.

Limitations
Can be biased.

Time-consuming.

Methods

Rating scales.

360-degree feedback.

BARS.

MBO.

🌟 14. Career Planning

Meaning

It’s a structured plan for one’s professional growth.

Types

Vertical: Promotions.

Horizontal: Same-level changes.

Diagonal: Cross-departmental shifts.

Factors

Interests.

Skills.

Organizational structure.

Market trends.

🌟 15. Compensation

Meaning

Total rewards (financial and non-financial) given to employees.

Steps to Determine Compensation

1. Job analysis.
2. Market research.
3. Pay structure.
4. Review and adjustment.

Pay Structure

Basic pay.

Allowances (HRA, DA).

Incentives and bonuses.

Factors Affecting Compensation

Job value.

Experience.

Market rates.

Company policy.

🌟 16. Industrial Relations

Meaning

Relationship between employees, employers, and unions.

Functions

Maintain discipline.

Resolve conflicts.

Promote cooperation.

Problems

Miscommunication.

Low wages.

Political interference.

Causes of Disputes

Wage disputes.

Poor work conditions.

Job insecurity.

🌟 17. Collective Bargaining

Meaning

Negotiation between employer and employees/unions about employment

terms.

Types

Distributive – Over wages.

Integrative – Mutual gains.

Productivity-based – Linked to output.

Role

Improves relations.

Ensures fair treatment.

Resolves disputes peacefully.

✨ Differences

✅ HRM vs HRD

HRM HRD

Managing people and systems Developing skills and abilities

Short-term focused Long-term development

Administrative Developmental

Broader scope Narrow scope

✅ Recruitment vs Selection

Recruitment Selection

Attracting candidates Choosing the best candidate

Positive process Negative process (filters out)

Focus on quantity Focus on quality

Creates applicant pool Final decision making

📝 Short Notes

Job Enlargement: Adding more tasks at the same level to reduce boredom.

Job Enrichment: Giving more authority and responsibilities to make the job
fulfilling.

Environment: All internal and external factors affecting HRM like laws,
tech, culture.
Career Anchor: A person’s core values that guide their career (e.g., job
security, freedom).

Profit Sharing: Sharing a part of profits with employees to boost

motivation.

Employee Store and Planning: Providing discounted goods and planning

future employee needs.

Career Life Stage: Phases of career — exploration, establishment, mid-

career, late career, decline.