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HUMAN RESOURCE MANAGEMENT (HRM) – FULL NOTES
1. Definition of HRM
Human Resource Management is the process of recruiting, selecting, developing, motivating, and retaining employees to achieve organizational goals effectively and efficiently.
Modern view: HRM is not just about hiring and paying employees; it’s about managing people strategically as valuable assets.
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2. Objectives of HRM
a) Organizational objectives
Ensure the right number of people with the right skills are available.
Improve productivity and efficiency.
b) Employee objectives
Provide fair compensation and career growth.
Ensure job satisfaction and motivation.
c) Societal objectives
Comply with labor laws.
Promote corporate social responsibility.
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3. Functions of HRM
HRM functions are divided into Managerial and Operative functions.
A) Managerial Functions
1. Planning – Forecasting human resource needs and developing strategies.
2. Organizing – Structuring work and allocating tasks.
3. Directing – Guiding and motivating employees.
4. Controlling – Monitoring HR activities and ensuring policies are followed.
B) Operative Functions
1. Recruitment & Selection – Attracting and choosing suitable candidates.
2. Training & Development – Improving employees’ skills and knowledge.
3. Performance Management – Evaluating and improving work output.
4. Compensation & Benefits – Providing fair pay, bonuses, and welfare.
5. Employee Relations – Maintaining positive relationships with staff.
6. Health, Safety & Welfare – Ensuring safe working conditions.
7. Compliance – Following labor laws and regulations.
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4. Importance of HRM
Ensures efficient use of human talent.
Improves productivity and quality of work.
Helps in conflict resolution.
Supports innovation and creativity.
Builds a strong organizational culture.
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5. Evolution of HRM
1. Pre-industrial era – Work managed by owners or supervisors.
2. Industrial revolution – Personnel departments emerged.
3. Personnel management – Focus on employee welfare and record keeping.
4. Modern HRM – Strategic approach to managing human capital.
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6. Key HRM Processes
1. Human Resource Planning (HRP) – Determining future staffing needs.
2. Recruitment – Attracting applicants.
3. Selection – Choosing the right candidate.
4. Placement & Induction – Assigning roles and introducing organization culture.
5. Training & Development – Skill enhancement.
6. Performance Appraisal – Evaluating job performance.
7. Career Planning – Providing growth opportunities.
8. Retention – Keeping valuable employees.
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7. Modern Trends in HRM
Technology in HR (HRIS, AI recruitment tools)
Remote work and hybrid models
Diversity, equity, and inclusion (DEI)
Employee wellness programs
Flexible working hours
Continuous learning culture
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8. Challenges in HRM
Talent shortage and skills gap.
High employee turnover.
Managing diversity.
Adapting to technological change.
Compliance with changing labor laws.
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9. Role of HR Manager
Strategic partner to management.
Employee advocate.
Change agent.
Policy maker and implementer.
Culture builder.
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10. Difference Between HRM & Personnel Management
Aspect Personnel Management Human Resource Management
Focus Administrative tasks Strategic people management
Approach Reactive Proactive
Time frame Short-term Long-term
Role in organization Support function Strategic partner
Employee view Workers Assets / capital
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11. Key HRM Theories
Maslow’s Hierarchy of Needs – Employee motivation.
Herzberg’s Two-Factor Theory – Hygiene & motivator factors.
McGregor’s Theory X and Theory Y – Assumptions about workers.
Equity Theory – Fair treatment.
Expectancy Theory – Effort leads to performance and rewards.
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12. HRM and the Law
HR managers must ensure compliance with:
Employment Acts
Occupational Safety & Health Act
Labour Relations Act
Minimum Wage Regulations
Equal Opportunity .
- Teacher: Admin User