Human Resource Management

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In this presentation on Human Resource Management, we are going to discuss its functions, HRM-HRD Relationship, Challenges and its importance for the prosperity of the firm. Human Resources are an organisation’s greatest assets. All other resources get connected through employees. To make employee deliver as per company objectives, they need to be properly selected, trained and motivated.

HRM is the process of acquiring, training, appraising and compensating employees such that they are motivated to achieve both the organisational and individual goals. The importance of human resources can be discussed at four levels - Corporate, Professional, Social and National.


HRM can help an enterprise in the following ways:
  • Attracting talent through effective human resource planning
  • Developing necessary skills & attitude with training
  • Securing cooperation through motivation
  • Retaining talent through the right policies

HRM helps improve quality of work life and contributes to growth in the following ways:

  • Opportunities for personal development
  • Motivating work environment
  • Proper allocation of work
  • Healthy relationships between individuals & groups


  • Society benefits from good HRM in many ways:
  • Good employment opportunities
  • Development of human capital
  • Generation of income & consumption
  • Better lifestyles


  • Drivers of development of a country
  • Deliver economic growth

Primary Functions of HRM

The process of HRM consists of 4 basic functions. They are

  • Acquisition of human resources - Process of identifying and employing people possessing required level of skills (Job Analysis, Human Resource Planning, Recruitment
  • Selection).
  • Development of human resources - Process of improving, moulding and changing the skills, knowledge and ability of an employee ( Employee Training, Management Development, Career Development).
  • Motivation of human resources - Process of integrating people into a work situation in a way that it encourages them to perform / deliver to the best of their ability( Understanding needs, Designing motivators, Monitoring).
  • Maintenance of human resources - Process of providing employees the working conditions that help maintain their motivation and commitment to the organisation (Satisfaction Levels, Retention).

Secondary HRM Functions are Organization and job design, Performance management/ performance appraisal systems, Research and information systems.

Human Resource Management Process

Human Resource Planning

Human Resource Planning


Process of locating, identifying, and attracting capable candidates

Recruitment Sources


Purpose is to hire the person(s) best able to meet the needs of the organization


The process of introducing new employees to organization. Familiarize new employee to job and work unit. Help employee to understand values, beliefs, and acceptable behaviours

Training and development

It involves changing skills, knowledge, attitudes or behaviours. Training tends to be done for current job. Develop here means acquiring skills for future work. Before starting the training, an HR should try to answer following questions.

  • What deficiencies, if any, does job holder have in terms of skills, knowledge, abilities, and behaviours?
  • Is there a need for training?
  • What are the strategic goals of the organization?

Performance review

Integration of management practices that includes a formal review of employee performance and how often it should take place. It includes establishing performance standards and reviewing the performance. It is a means to ensure organizational goals are being met.


It is the process of determining cost-effective pay structure. It is designed to attract and retain good resources. It provide an incentive to work hard. It is structured to ensure that pay levels are perceived as fair.

Role of HR Manager

The differnet roles of HR manager are Job Design/Job Analysis, Human Resource Planning, Recruitment & Selection, Training & Development, Performance Appraisal, Compensation/Benefits, Personnel Information Systems, Employee Motivation and Assistance

Relationship Between HRM and HRD

Human resource management (HRM) encompasses many functions. Human resource development (HRD) is just one of the functions within HRM. HRD is too important to be left to amateurs. HRD should be a revenue producer, not a revenue user. HRD should be a central part of company. various HRD Functions are Training and development (T&D), Organizational development and Career development.

Various challenges before HRM are Globalization (More productivity), Technological Trends (New skill set), Increasing Service Sector (Customer Interface), Working Trends and Demographic Trends (Young India!).

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