Unit 1: Introduction to HRM & human resource planning
Human Resource Management notes · PTU syllabus (BBA 402-18)
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Unit summary
People are an organisation's most important resource. Human resource management (HRM) acquires, develops, motivates and retains them. This unit covers the nature, scope, role and importance of HRM, new trends from globalisation, deregulation and technology, HRM practices in India, and human resource planning.
After this unit you can
- Explain the nature, scope and importance of HRM
- Describe new trends in HRM
- Discuss HRM practices in India
- Explain the factors affecting HRP and the HRP process
PTU syllabus topics
- Nature
- scope
- role and importance of HRM
- new trends from globalisation
- deregulation and technology
- HRM practices in India
- factors affecting human resource planning
- the HRP process
- 1
Analyse objectives
Business plans and strategy
- 2
Forecast demand
How many people, which skills
- 3
Forecast supply
Internal staff and labour market
- 4
Identify the gap
Shortage or surplus
- 5
Action plans
Recruit, train, redeploy or reduce
- 6
Monitor and review
Topic 1
Nature, scope, role and importance of HRM
Human resource management is the process of acquiring, training, appraising and compensating employees and attending to their labour relations, health, safety and fairness (Dessler). Nature: people-oriented, pervasive, continuous, development-oriented and both a line and staff function.
Procurement
HR planning, recruitment, selection, induction
Development
Training, career planning
Compensation
Wages, incentives, benefits
Maintenance
Health, safety, welfare
Integration and relations
Motivation, grievances, industrial relations
Separation
Retirement, exit
Role of the HR manager: advisory, service, strategic partner, change agent and employee champion.
Topic 2
New trends in HRM
- Globalisation: managing diverse, cross-cultural and international workforces.
- Deregulation and liberalisation: competition demands productivity and flexibility.
- Technology: HRIS, e-recruitment, AI in hiring, HR analytics, remote and hybrid work.
- Others: talent management, employee engagement and well-being, gig and contract workers, diversity and inclusion, and strategic HRM linking people to business goals.
Topic 3
HRM practices in India
Indian HRM has moved from personnel administration (labour welfare and compliance) to strategic HRM. Large Indian firms (Tata, Infosys, HUL) use competency mapping, performance-linked pay, ESOPs and leadership development. Challenges include labour law compliance, a large informal workforce, skill gaps and attrition in IT and services.
Topic 4
Human resource planning (HRP)
HRP is the process of forecasting an organisation's future demand for and supply of the right type of people, in the right number, at the right time.
- 1
Analyse organisational plans and objectives
- 2
Forecast demand for HR
Workload analysis, trend analysis, managerial judgement
- 3
Forecast supply of HR
Internal (skills inventory, succession) and external
- 4
Estimate the gap
Shortage or surplus
- 5
Action plans
Recruitment, training, redeployment, downsizing
- 6
Monitor and control
Factors affecting HRP: type and strategy of the organisation, environmental uncertainties, time horizon, nature of jobs, outsourcing and the quality of information.
Key terms
- HRM
- Managing people to achieve organisational goals
- HRP
- Forecasting HR demand and supply and matching them
- HRIS
- Human resource information system
- Strategic HRM
- Aligning HR with business strategy
- Skills inventory
- A record of employees' skills and qualifications
Quick revision
- Scope: procurement, development, compensation, maintenance, integration, separation.
- Trends: globalisation, technology, analytics, engagement, diversity.
- HRP: objectives → demand → supply → gap → action → control.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Define HRM.
- Q2.List four functions of HRM.
- Q3.What is HRIS?
- Q4.Define human resource planning.
- Q5.List three factors affecting HRP.
Long-answer questions
- Q1.Explain the nature, scope and importance of HRM.
- Q2.Discuss new trends in HRM in the context of globalisation and technology.
- Q3.Explain the process of human resource planning.
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