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CHAPTER 1

INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT

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Introduction to Human Resource Management :

Organizations are made up of people and function through people. Material resources such

as money and materials are utilized through people for different purposes. People constitute

the most significant resource of an organization. Human resource is most active, productive

and sensitive. Employees have capacity to think and act or react accordingly. This source

needs delicate handling so that it will e useful for the progress and prosperity of an

organization.

!n the present world, all organizational resources "human and material# are important for

achieving organizational o$ectives. %aturally, their effective utilization is necessary. Here,

organizations give special attention to human resources which includes manpower working at

different levels in the organization. The employees need to e efficient, highly trained and

professional co&operative and loyal to the organization. They are e'pected to make positive

contriution in achieving organizational o$ectives. (uch useful laour force will not

developed automatically ut needs to e nurtured through special efforts in the form of

training, career development, cordial industrial relations, participative management and so

on.

Human )esource Management "H)M# is concerned with the manpower employed in an

organization. !t is that part of management which is concerned with people at work and their

relationships within the organization. H)M is one important ranch of management as it

touches all other aspects of usiness management. H)M is concerned with human resource

planning, recruitment and selection of manpower, training and development of manpower,

compensation payment to manpower and so on. !n this introductory chapter, we propose to

discuss the nature and scope of human resource management.

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MEANING OF HRM CONCEPT OF HRMI WHAT IS HRM

Personnel refer to the employees working in an organization at different levels. Personnel

management "also called H)M# is that aspect of total usiness management which deals with

human relationships within an organization. Personnel represent human resources which is

different from material resources. !t is rightly said that organizations are not mere ricks,

mortar, machineries or inventories. They are people. !t is the people who staff and manage

organizations. Human resources are the people and their characteristics at work. They are

human factors in usiness.

Human resource is the most productive and most versatile. !n addition, the manpower in an

organization needs human treatment. Employees have a capacity to feel, think and even to

react. Management has to deal with the employees in a careful and tactful manner. Material

resources such as land, machines, raw materials, e*uipment, etc. are easy to manage. This is

ecause they have no capacity to feel or think or react. This is not the case with human

resource i.e. manpower. +or e'ample, you may use a ad word for a machine or you may put

your leg. on the machine ut you must not ause a worker or put your leg on his head. This

is ecause he has a capacity to feel, think and even react *uickly in the same manner or even

in a more challenging manner.

!n production activity, men and machines are important. However, man ehind the machine

is more important as he is a human eing. Man and machine are not on par and must not e

treated in the same manner. This is ecause of all the resources manpower is the only

resource which does not depreciate, with the passage of time.

ccording to Peter +. -rucker , "the prosperity, if not the survival of any business depends on

the performance of its managers of tomorrow. The material resources alone will not help the

organization to achieve its o$ectives. +or this, effective coordination and utilization of

material and human resources are re*uired. This suggests the importance of human resources.

Human resources of an organization function at top management, middle management,

supervisory management and at operative management levels. Human resources are most

vital assets of an organization. They can e used as a means for developing competitive

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advantages. !n addition, manpower people in the organization act as (ource of creativity.

They can produce unlimited ideas which can e used for the progress of the prosperity of an

organization. This suggests the significance of human resources which need effective

utilization through careful management.

The human resource is very important and useful in every organization. !t should e nurtured

and used for the enefit of the organization. This is a challenging $o efore personnel

manager management. The organization can make rapid progress only when the employees

are efficient, satisfied and co&operative. On the other hand, the organization will have to face

various prolems and difficulties, if the employees are not co&operative ut hostile. This

indicates that human resource is most strategic and critical determinant of growth of a

usiness unit. Every organization needs loyal, efficient and satisfied laor force. +or this,

ade*uate attention should e given to H)M.

H)M is a management function that helps managers to recruit, select, train and develop

employees for an organization. !t is concerned with the people/s dimension in organizations.

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!EFINITIONS OF H"MAN RESO"RCE MANAGEMENT:

ccording to (cott and others, "Human resource management is that branch of management

which is responsible on a staff basis for concentrating on those aspects of relationship of

management to employees and employees to employees and with the development of the

individual and the group. The objective is to attain maximum individual development,

desirable working relationship between employers and employees and employers and

employees, and effective moulding of human resources as contrasted with physical resources

0,

ccording to %ational !nstitute of Personnel Management of !ndia, "Human resource

management is part of management concerned with people at work and with their

relationships within the organization. t seeks to bring together men and women who make

up an enterprise, enabling each to make his own best contribution to its success both as an

individual and as a member of a working group 0.

Ed#in F$i%%o de&ines HRM as '

1Planning, organizing, directing, controlling of procurement, development, compensation,

integration, maintenance and separation of human resources to the end that individual,

organizational and social o$ectives are achieved.2

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FEAT"RES OF HRM:

3. Managing %eo%$e4 H)M relates to managing people at work. !t covers all levels of

personnel5s and their needs, e'pectations and so on. !n this sense, it is a comprehensive

function and is asically concerned with managing people at work. H)M has universal

e'istence and application as it is applicale to usiness and other organizations &

government, educational, social, and religious and so on.

6. Peo%$e'oriented %rocess4 H)M is concerned with employees, oth as individuals

as well as a group. The aim of H)M is to get etter results through their involvement,

motivation and co&operation. !t is a people&oriented process of ringing people and

organizations together so that the goals of each are met properly. c*uisition,

development, motivation and maintenance of manpower human resources are four

asic functions in the H)M process.

7. !e(e$o%s em%$o)ees* %otentia$ities4 H)M is concerned with helping the

employees to learn and develop their potentialities to the highest level for their enefits

as well as for the enefits of their organization. !t is manpower employee5s

development oriented su$ect.

8. Integra$ %art o& organi+ations4 H)M is an integral part of all organizations. !t is

concerned with recruitment, selection and development of manpower availale.

9. Continuous acti(it)4 H)M is a continuous activity in an organization as personnel

prolems continue to e'ist as long as employees are working in an organization. They

need constant attention as they may distur normal working of an organization, ifneglected.

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:. Securing em%$o)ee co'o%eration4 H)M aims at securing willing co&operation of

employees for achieving organizational o$ectives. This is natural as industrial and

other activities can e conducted only with the support ;of human resources. H)M aims

at developing and maintaining team spirit at the organizational level. (uch team spirit

rings success to the organization.

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SCOPE-F"NCTIONS OF HRM:

1. Human resources %$anning:

Human resource planning or H)P refers to a process y which the company to identify the

numer of $os vacant, whether the company has e'cess staff or shortage of staff and to deal

with this e'cess or shortage.

/. 0o ana$)sis design:

nother important area of H)M is $o analysis. >o analysis gives a detailed e'planation

aout each and every $o in the company. ?ased on this $o analysis the company prepares

advertisements.

2. Recruitment and se$ection:

?ased on information collected from $o analysis the company prepares advertisements and

pulishes them in the news papers. This is recruitment. numer of applications are received

after the advertisement is pulished, interviews are conducted and the right employee is

selected thus recruitment and selection are yet another important area of H)M.

3. Orientation and induction:

Once the employees have een selected an induction or orientation program is conducted.

This is another important area of H)M. The employees are informed aout the ackground

of the company, e'plain aout the organizational culture and values and work ethics and

introduce to the other employees.

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4. Training and de(e$o%ment:

Every employee goes under training program which helps him to put up a etter performance

on the $o. Training program is also conducted for e'isting staff that have a lot of e'perience.

This is called refresher training. Training and development is one area where the company

spends a huge amount.

5. Per&ormance a%%raisa$:

Once the employee has put in around 3 year of service, performance appraisal is conducted

that is the H) department checks the performance of the employee. ?ased on these appraisal

future promotions, incentives, increments in salary are decided.

6. Com%ensation %$anning and remuneration:

There are various rules regarding compensation and other enefits. !t is the $o of the H)

department to look into remuneration and compensation planning.

7. Moti(ation8 #e$&are8 ,ea$t, and sa&et):

Motivation ecomes important to sustain the numer of employees in the company. !t is the

$o of the H) department to look into the different methods of motivation. part from this

certain health and safety regulations have to e followed for the enefits of the employees.

This is also handled y the H) department.

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9. Industria$ re$ations:

nother important area of H)M is maintaining co&ordinal relations with the union memers.

This will help the organization to prevent strikes lockouts and ensure smooth working in the

company.

1. Procurement o& man%o#er ;Human' Resource Ac

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organisation. H)- programmes are for education, training and development of e'isting

manpower in an organisation. This is for facing new prolems and !6hallenges likely to

develop in the near future.

1/. Per&ormance management and com%ensation %a)ment to man%o#er

em%$o)ed4

Performance management involves performance planning, performance appraisal and

performance counselling used for various purposes. One more function of personnel

management is to pay compensation "in monetary form# to employees for the services

rendered. +or this, a fair system of remuneration payment "wages and salaries/ needs to e

introduced. )emuneration to employees should e attractive so that the laour force will e

satisfied and disputes, etc. will e minimized. +air wage payment acts as a motivating factor

in compensation management

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CHAPTER /

HR PRACTICES OF ICICI >AN?

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A>O"T THE COMPAN@

!B!B! ?ank is an !ndianmultinationalanking andfinancial servicescompany head*uartered

in Mumai, Maharashtra, !ndia. s of 6C38, it is the second largest ank in !ndia in terms of

assets and market capitalization. !t offers a wide range of anking products and financial

services for corporate and retail customersthrough a variety of delivery channels and

specialized susidiaries in the areas of investment anking, life, non&life insurance, venture

capitaland asset management. The ?ank has a network of 8,C9C ranches and

36,D3D TM5s in !ndia, and has a presence in 3< countries including !ndia.33F

!B!B! ?ank is one of theBig Four banksof !ndia, along with (tate ?ank of !ndia,Pun$a

%ational ?ankand ?ank of ?aroda. The ank has susidiaries in the Gnited ingdom and

BanadaI ranches in Gnited (tates, (ingapore, ?ahrain, Hong ong, (ri Janka, Katar, -uai

!nternational +inance Bentre and BhinaI and representative offices in Gnited ra Emirates,

(outh frica, ?angladesh, Malaysia and !ndonesia. The company/s G susidiary has also

estalished ranches in ?elgium and Lermany.

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