•Selling the product at best price is possible by producing the product at low cost. Producing high quality product at low cost is the best strategy in the market economy. The HRM strategy relevant to such corporate strategy include:
-Employing the workforce with creative skills in developing technology and methods of minimizing cost.
-Trimming the workforce to cut the costs.
-Managing organizational exit policy strategically.
-Moldings the employee attitude towards low risk-taking, and cost-cutting.

•Employ people with most appropriate human resources create corporate culture for individual excellence.
•Employee development for broadening their roles.
•Reward the people for meeting organizational goals
•Ensure that the mindset of people is receptive to change.
•Facilitate management initiatives.
•Replace top-down interventions with company-wide participation.

Definition of HRM Policy :
A Policy is a plan of action. Brewster and Richbell defined HRM policies as, “a set of proposals and actions that act as a reference point for managers in their dealings with employees”. Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organization’s values,philosophy,concepts and principles”.
What is HRM Procedure ?
Policies are general instructions whereas procedures are specific applications. A procedure is a well thought out course of action. It prescribes the specific manner in which a piece of work is to be done. “Procedures are called ‘action guidelines.’ They are generally derived from policies. The basic purpose of a procedure is to spell out clearly the way one is to go about doing something.

1.Delegation : They help managers operating at various levels to act with confidence without the need for consulting the superiors every time.
2.Uniformity : They increase the chance that different people in different levels of organization make similar choices when independently facing similar situations.
3.Better Control : As personnel policies specify the relationship among organization, management and employees, they permit members to work toward achievement of the objectives of the organization without friction/conflict,paying the way for better control.
4.Standards of Efficiency : Policies can also serve as standards in the execution of work. They enable the management to find out whether the policies have been translated into action by various groups in the organization or not. In the light of actual performance, the existing policies may be subjected to amendment/refinement.
5. Confidence : Policies make employees aware of where they stand in the organization and creates confidence in them while confronting routine and recurring problems. Managers and subordinates can act with confidence.
6. Speedy Decisions: Policies can speed decision-making by providing a blanket framework within which personnel decisions could be made. They summarize past experience.
7.Co-ordinating Devices : Personnel policies help in achieving co-ordination.If organizational members are guided by the same policies, they can predict more accurately the actions and decisions of others.

•1. To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.
•2. To establish and maintain sound organizational structure and desirable working relationships among all the members of the organization.
•3. To secure the integration of individual and group within the organization by co-ordination of the individual and group goals with those of the organization.
•3. To create facilities and opportunities for individual or group development so as to match it with the growth of the organization.
•4. To attain an effective utilization of human resources in the achievement of organizational goals.
•5. To maintain high employee moral and sound human relations by sustaining and improving the various conditions and facilities.
•6. To strengthen and appreciate the human assets continuously by providing training and developmental programmes.
•7. To provide an opportunity for expression and voice in management.
•8. To provide fair, acceptable and efficient leadership.
•9. To provide facilities and conditions of work and creation of favourable atmosphere for maintaining stability or employment.

1.Managerial Functions :
-Planning : It is a pre-determined course of action. Planning is determination of personnel programmes and changes in advance that will contribute to the organizational goal.
-Organizing : An organization is a means to an end. It is essential to carry out the determined course of action. In the words of J.C. Massie, an organization is a “Structure and process by which co-operative group of human beings allocated it task among its members, identifies relationships and integrates its activities towards common objective.”
-Directing : The next logical function after completing planning and organizing is the execution of the plan. The basic function of personnel management at any level is motivating,commanding,leading and activating people.The willing and effective co-operation of employees for the attainment of organizational goals, is possible through proper motivation and command. Thus, direction is an important managerial function in building sound industrial and human relations besides securing employee contributions.
-Controlling : After planning, organizing and directing the various activities of the personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions. Controlling also involves checking,verifying and comparing of the actual with the plans, identification of deviations if any and correcting of identified deviations. Auditing training programmes, analyzing labour turnover records, directing morale surveys are some of the means for controlling the personnel management.

E.W. Vetter viewed human resource planning as “a process by which an organization should move from its current manpower position to its desired manpower position. Through planning management strives to have the right number and right kind of people at the right places at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefit.”
Human resource means skill,knowledge, values, ability,commitment, motivation etc., in addition to the number of employees