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procuring , developing and maintaining competent workforce to achieve the goals of an organization in an efficient manner
It can also be defined as a process consisting of the acquisition, development , motivation and maintenance of human resource
HRM is the planning , organizing , directing &controlling of the procurement , development , compensation , integration , maintenance & separation of the human resources to the end that individual , organizational & social objectives are accomplished.
Pervasive Force :
HRM is pervasive in nature. It is present in all enterprises all levels of management in an organization
Action Oriented : HRM focus attention on action , rather than a record keeping , written procedures & rules
People Oriented: HRM is all about people at work, both as individuals and groups.
Future Oriented : Effective HRM helps the organization meet its goal in the future by providing for competent and well motivated employees .
Development Oriented : HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of the employees. Training is offered to sharpen & improve their skills.
Integrating Mechanism: HRM tries to build & maintain cordial relations between people working at various level in the organization
Inter-disciplinary function: HRM is a multi-disciplinary activity , utilizing knowledge & inputs drawn from psychology , sociology and economics .
Continuous Function : HRM requires a constant alertness & awareness of human relations & their importance in every day operations
The scope of HRM is very wide. The Indian institute of management has specified the scope of HRM thus:
Personnel aspect: This is concerned with the manpower planning, recruitment , selection, placement, transfer ,promotion , training & development, lay off & retrenchment, remuneration, incentives , productivity etc..
Welfare aspect : It deals with working conditions & amenities such as canteens , crches , rest & lunch rooms , housing , transport , medical assistance, education etc.
Industrial relations aspect: This covers union-government relations , joint consultation, collective bargaining, grievance & disciplinary procedures, settlement of disputes .
Functions of HRM
Managerial Functions Operative Functions
Managerial Functions:
Managerial functions of personal management involve planning , organizing , directing and controlling. All these functions influence the operative functions
Managerial Functions
Planning
Organizing
Directing Controlling
Planning: This involves planning of planning of human resources, requirement , recruitment , selection , training etc. It also involves forecasting of personnel needs, changing values, attitudes and behavior of employees of employees and their impact on the organization.
Organizing: An organization is a means to an end. It is essential to carry out the determined course of action.
Directing: The basic function of personnel management at any level is motivating, commanding, leading& activating people. The willing & effective co-operation of employees for the attainment of organization goals is possible through proper direction . Tapping the maximum potentialities of the people is possible through motivation and command.
Controlling: Controlling involves checking , verifying and comparing of the actual with the plans , identification of deviations if any & correcting of identified deviations. Thus action & operation are adjusted to perdetermined plans and standards through control.
Operative Functions:
Operative Functions of HRM are related to specific activities of personnel management that is employment, development, compensation and relations .
Operative Functions
Employment
Human Resource Development
Compensation
Human relations Industrial relations
Employment :
It is concerned with securing & employing the people possessing the required kind of & level of human resources necessary to achieve the organizational objectives . It covers functions such as follows.
Employment
Job analysis HR planning Recruitment
Selection
Placement
Induction & Orientation
Job Analysis : It is the process of study & collection of information relating to the operations & responsibilities of a specific job .
Human Resources Planning : It is a process of determination & assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization & which would provide satisfaction for the individual involved .
Recruitment : It is the process of searching for prospective employees & stimulating them to apply for the jobs in an organization.
Selection : It is the process of ascertaining the qualifications, experiences, skills ,knowledge etc of an applicant with a view to appraising his/her suitability to a job.
Placement : It is the process of assigning the selected candidate with the most suitable job in terms of job requirements . It is matching of employee specifications with job requirements .
Induction & Orientation : These are the techniques by which a new employee is rehabilitated in the changed surrounding & introduced to the practices ,policies, purposes & people etc of the organization.
Human resource development Performance appraisal Training Managerial Development Career Planning & Development
Performance appraisal : It is the systematic evaluation of individuals with the respect to their performance on the job & their potential for development .
Training : It is the process of imparting to the employees technical & operating skills & knowledge .
Management Development :
It is the process of designing & conducting suitable executive development programs so as to development programs so as to develop the managerial & human relations skill of employees .
Career planning and development : It is the planning of ones career & implementation of career plans by means of education , training , job search & acquisition of work experiences . It includes internal and external mobility .
Compensation
Job evaluation
Wag e & Salary administration
Job evaluation:
Its a process of determining relative worth of jobs. Select suitable job evaluation techniques. Classify jobs into various categories. Determining relative value of jobs in various categories.
Wage & Salary Administration: This is the process of developing & operating a suitable wage & salary program. It includes
Conducting wage & salary survey Determining wage & salary rates based on various factors Administering wage & salary programs Evaluating its effectives
Incentives: Its the process of formulating, administering & reviewing the schemes of financial incentives in addition to regular payment of wages & salary
Bonus : It includes payment of statutory bonus act,1965 & its latest amendments.
Fringe Benefits: These are the various benefits at the fringe of the wage. Management provides these benefits to motivate the employees & to meet their lifes contingencies.
Human Relations :
It is the process of interaction among human beings. Human relations is an area of management in interacting people into work situations in a way that motivates them to work together productively, co-operatively & with economic, psychological & social satisfaction
Industrial Relation:
Industrial relations refer to he study of relations among employees, employer, government & trade unions.
Qualities Of HR Manager
Intelligence:
The HR manager should be intelligent. This includes skills to communicate, articulate, moderate, understand, command over language, mental ability and tact in dealing with the people intelligently, ability to draft agreements and tact in dealing with the people intelligently, ability to draft agreements, policies etc ..
Conceptual skill:
Personnel manager is expected to execute the managements decisions regarding personnel issues with speed, accuracy and objectivity. Conceptual skills are involving the ability to understand how the parts and people of an organizational depend each other
Motivating Qualities :
HR manager should motivate people to strive willingly to attain organizational objectives .
Emotional Stability:
HR manager should act with selfconfidence, avoid anger , take decisions on a rational basis and think clearly and maturely. He should have high frustration tolerance.
Communication Skill :
HR manager should have the ability to persuade, to inform, stimulate , direct and convince his employees. To achieve this he should have good communication skill.
Human Skill:
HR manager should considerate towards the employees because his success largely depends upon co-operation of his followers.
Professional attitude:
He should have people patience and understanding , ability to listen before offering advice. He must be able to couple his social justice with a warm personal interest in people which must be secured by an uncommon degree of common sense
Role of HR Manager
It has been recognized that the basic role that of the HR manager is the management of manpower resources. The challenge of HR manager today is to recognize the talent and nurture the same carefully and achieve significant productivity gains over a period of time.
Counselor role:
The personnel manager plays the role of a counselor to whom the employees frequently go for consultation and with the whom they discuss their marital, health, mental, physical and career problems
Mediator:
As a mediator, he plays the role of a peace maker, offering to settle the disputes that may arise among individuals or groups. He acts a liaison and communicating link btw an individual and a group and btw labor and management
Spokes-man:
The personnel manager has always been a frequent spokesman for or representative of the company. Because he has a better picture of his companys operations, since he deals intimately with many key organizational activities and functions .
Problem Solver:
The personnel manager also acts as a problem solver with respect to the issues that involve human resources management and overall long range organization planning
Change agent:
He works as a change agent within the organization because he is best suited to introduce and implement major institutional changes . He takes initiative for installing organizational development programs & convinces the top management of their need.
Personnel Management
It is a management of people employed
HRM
Objectives resources management is the management of employees skills knowledge , abilities , talents , aptitudes creative abilities etc
Employee is personnel Employee in HRM is treated not management is the mostly treated only as economic man but also as as an economic man as his services social and psychological man are exchanged for wage/salary
Employee is viewed as a Employee is treated as a commodity or tool or equipment resource which can be purchased and used Employee are treated as cost centre and therefore management controls the cost of labor Employees are used mostly for organizational benefits Employees are treated as profit center and therefore, invest capital for human resource development & future utility Employees are used for multiple mutual benefit of the organizational , employees and their family members HRM is strategic management
Objectives Of HRM
Objectives of HRM :
To utilize human resources effectively. To maintain good morale and good human relations within the organization To recognize & satisfy individual needs and group goals by offering appropriate monetary and non monetary incentives
To create facilities and opportunities for individual or group development . To help ethical policies & behavior inside & outside the organization To enhance job satisfaction and self actualization of employee by encouraging and assisting every employee to realize his full potential
To help organizational attain its goals by providing well trained and well motivated employees. To respect the individual as people are the greatest assets
Recruitment and selection Training and development Performance appraisal Reward management Health and safety management Discipline management
Creating right attitude or enterprise in achieving its goals effective motivation Utilizing effectively the available human resource Altering and retains the required talent through effective human resource planning, recruitment ,selection Developing the necessary skills and right attitude among the employees
Social significance:
Maintaining a balance between the job available and the job seekers, according to the qualifications and needs Providing suitable and most productive employment which might bring them psychological satisfaction By helping people make their own decisions that are in their interest Eliminating waste or improper use of human resource through conversion of its energy and health
Professional significance :
Maintaining the dignity of the employee as human being Providing maximum opportunity for personal development Providing healthy relationship between different work groups Improving the employee working skills and capacity.
National Significance: Proper utilization of nations natural, physical and financial resources require an efficient and commuted manpower.