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Human resource management

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Meaning and definition

Human resource management is the process of bringing people and organization so that the goals of each are met. It tries to secure the best from the people by winning their co operation. It is the art of procuring, developing and maintaining competent workforce to achieve the goals of the organization in an effective and efficient manner.

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Pervasive force

Action oriented

Individually oriented
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Co mp reh en siv e fun cti Int on erd isci pli nar y

Nature of human resource managem ent

Continuous function

Auxiliary service

Pe opl e ori ent ed Fu tu re ori en Developm entte d oriented

 NATURE

OF HRM Pervasive force : HRM is pervasive in nature that means human resource is spread through out the organization. As enterprise or organization is composed existing human asset in the organization. Action oriented : it is action oriented as it is proactive in nature and focuses on solving existing problems of the employees through implementation of existing HR policies framed to safeguard the employees interest. Individually oriented : it not only focuses on enhancement of organization but also pays attention towards individual development through the means of training and development. People oriented: HRM is all about people at work. It tries to co-ordinate the individual as well as group activities towards attainment of organizational goal.
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 Future

oriented : it helps organization to meet its goal in future by providing competent and well motivated employees. Development oriented : it focuses on employee development in the organization as it motivates the employees to perform better through the means of timely reward and incentives and also provides required training and development which helps the employees to be flexible in terms of coping up with the changes around. Integrating mechanism: it tries to build and maintain cordial relations between people working at different levels in the organization. Comprehensive function: HRM covers all the aspects of organization, from levels off management, human relations, utilization of human resource etc Auxiliary services: apart from performing HR
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SCOPE OF HRM

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personnel

aspect : it is concerned with man power planning, recruitment, selection, placement, training & development, remuneration, productivity etc. Welfare aspect :it deals with the working conditions, housing, transport, medical assistance, education health etc. Industrial relation aspect : this covers union management relationship, joint consultations, collective bargaining, settlement of disputes etc.
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OBJECTIVES OF HRM
Help

organization towards its goal attainment To efficiently employ present skill and workforce in the organization. To provide organization with well trained and motivated employees. It focuses on increasing level of job satisfaction among the employees and help employees in attaining self actualization. develop and maintain quality of work life. Communicate HR policies to employees in organization. Be ethically and socially responsive to the needs of the society.
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Attract and retain employees Train people for challenging roles Develop skill and competencies Promote team spirit

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Importance of HRM

Develop loyalty and commitment Increase productivity and profits Improve job satisfaction Enhance standard of living Generate employment

Evolution of HRM
Commodity

concept: in the early years human resource was regarded as the commodity to be bought and sold. Wages were based on demand and supply. It was more of profit centric then human centric approach that was followed in the early years. Factor of production concept: labor is like any other factor of production that is money, material, land etc workers are like machine tools . So they only focused on getting work done from human resource in organization. Goodwill concept: it focused on welfare aspect of employees they concentrated on providing the facilities such as safety, lunch room and other basic infrastructure facilities required to enhance
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 Paternalistic

concept: management must be protective assume a fatherly and protective attitude towards employees. It focuses on satisfying various needs of the employees as parents meet the requirements of children. Humanitarian concept: this concept gave importance on fulfilling and improving productivity, physical, social and psychological needs of workers. It viewed organization as a social system that has both economic and social dimension. Human resource concept: it treats employees as valuable assets of organization. Conscious efforts were done to realize organizational goals by satisfying needs and aspirations of employees. Emerging concept : decentralized concept of decision making came into picture. Companies are becoming more of employee centric as welfare of employee is
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Points of Personnel function distinction 1. Orientation Maintenance oriented 2. Structure Independent function 3. Philosophy Reactive function responding to events

Human resource management Development oriented Interdependent parts Proactive function 1. responsibili Responsibility of , prefers taking ty personnel department action in advance Responsibility of Improved performance all managers in 5. Outcomes as result of improved organization satisfaction Effective utilization of human resource 6. AIMS Tries to improve the leads to improved efficiency of people satisfaction and administration
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Organization of hrm
HRM

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in small scale unit : manager

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Product ion manag er

Sales manag er

Office manager

accoun tant

Personne l assistant

 HRM

in large scale unit : Managing director

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Direct or produ ction

Direct or financ e

Direct or HRM

Direct or marke ting

Direc tor R&D

 Division

of organization into department depends upon the size of organization. SSU do not require division of department as per functions as number of operations and human resources to be handled in organization are limited. SSU prefer hiring HR services from outside firms as it is reasonable for organization. LSU have separate HR department for handling HR activities in organization. As process of recruitment is continuous in organization. As there is huge workforce present in organization separate HR department is required to monitor and control the activities of human resource in companies. HR department is composed of personnel manager, administration manager, HRD manager, industrial relation manager etc.
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FUNCTIONS OF HRM
MANAGERIAL

FUNCTIONS : Planning : personnel manager is expected to determine the personnel programme regarding recruitment, selection and training of employees. Organizing : is concerned with proper grouping of personnel activities, assigning different group of activities to different individuals and delegation of authority. Directing : it involves supervising and guiding the personnel. Personnel manager must be an effective leader who can create winning teams taking into consideration the expectation of employees at different level. Controlling : it comprises of measuring the employees performance providing them feedback on
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 OPERATIVE

FUNCTIONS :

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Procurement function Development 1.Training 1. Job analysis 2. Executive development 2. Human resource 3. Career planning and planning development 4. Human resource development 3. Recruitment 4. Selection 5. Placement 6. Induction orientation 7. Internal mobility Motivation and Maintenance health and safety compensation
1. 1. 2. 3. 4. 5. 6.

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Job design Work scheduling Motivation Job evaluation Performance appraisal Compensation administration

2. 3.

Employee welfare Social security measures

 Job

analysis : it is the process of collecting the in formation relating to the operations and responsibilities pertaining to specific job. Human resource planning: it focuses on providing adequate qualified human resource at time who ensure delivering effective performance towards organization. Recruitment : process of searching for efficient employees and stimulating them to apply for jobs. Selection : is process of making comparison between the skills required for job and asses weather the candidate possess the same abilities in him required to perform by job. Placement : is the process of placing right candidate for right job. Induction and orientation : is the process through which new employees get an overview about the
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 Internal

mobility : the movement of employees within the organization through the means of transfer, promotion. Development: Training : is a continuous process by which employees learn skills, knowledge to achieve further individual as well as organizational goals. Executive development: process of developing managerial skills and capabilities through appropriate programs. Career planning and development: it is concerned with the task of planning employees career plans by the means of education, training etc. Human resource development: it aims at development of total organization. It creates working environment where employees are required to update their knowledge at regular interval of time to
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Integration function
1. 2. 3. 4. 5.

Emerging issues 1.Personal records 2. Human resource audit 3. Human resource research 4. Human resource accounting 5. Human resource information system 6. Stress and counseling 7. International human resource management

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6.

7.

Grievance redressal Discipline Teams and teamwork Collective bargaining Employee participation and empowerment Trade unions and employees association Industrial relation

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 Motivation

and compensation: Job design : organizing task and responsibilities for making the work flow productive in the organization. Work scheduling: it is an attempt to structure the activities incorporating physical, psychological and behavioral aspects of work. Motivation : is process of winning employees cooperation towards delivering efficient performance by properly administered rewards foe effective and qualitative performance. Job evaluation : it refers to evaluating the value of job so as to fix proper wages to respective jobs performed by the employees. Performance appraisal: refers to evaluating performance of employee at regular interval to provide feedback to employees on their performance.
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 Compensation

administration: is the process of dividing how much an employee should be paid. Main motto of compensation is to ensure effective pay plan which can attract new employees and retain present employees in the organization. Maintenance: Health and safety: it ensures that the employees in the organization are protected from physical hazards, unhealthy conditions and unsafe act of personnel. Employee welfare : includes amenities and facilities offered to within or outside the establishment for their physical, psychological and social well being. Social security measures: these are security provided to employees in addition to fringe benefits. workmens compensation act.
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 Integration

function: Grievance redressal : it is concern with addressing problems related to wages, hours or condition and of employment. It focuses on sorting issues between trade union and management. Discipline : it abides the employees to follow rules and regulation set by organization to monitor and control the activities of workforce. Team and team work: it focuses creating teams, groups in the organization and coordinate their activities towards organization task accomplishment. Collective bargaining: it take place in organization to get collective consent of management as well as employees on certain terms and conditions. Agreement is mostly based on issues related to wages, hours of work, promotion etc.
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Employee

participation and empowerment: refers decentralized system of decision making in the organization. It enhances employees performance as employees get feeling of belonging towards organization. Trade unions and employees association: it is an association of employees or employers. It is permanent body working in the organization to protect interest of employees in company. Industrial relations : it main object is to maintain harmony between employees and management. Emerging issues: Personal records : refers to maintaining records of various events that take place in organization. Maintained data will serve as reference for future use.

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Human

resource audit: refers to examination and evaluation of policies, procedures and practices to determine the effectiveness of HRM in company. Human resource research: evaluating the effectiveness of existing HR policies. Human resource accounting: measurement of cost and value of human resource to the organization. Human resource information system: it is designed to maintain HR information as serves as reference to top management to obtain employee detail. International human resource management: it give an brief overview
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POLICIES

personal policies guide actions. They offer general standards or parameters which serves as road map for the managers in the process of decision making. Types of personnel policies : Originated policies : these are the policies framed by the top management to guide and control executive thinking at various levels of management. Appealed policies : these are types of policies framed depending upon the demand of situation and are also framed as existing policies are unable to provide solution for the same. Imposed policies :formed under the pressure from external agencies such as government, trade
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 General

policies : reflect the basic philosophy and priorities of the top management in formulating the broad plan for mapping out the organizations growth chart. Specific policies :they cover specific issues such as hiring, rewarding and bargaining. These should be in line with the basic frame work offered by general policies. Written or implied policies : implied policies are inferred from the behavior of members( dress code), written policies spell out the managerial thinking on papers so that there is very little room for loose interpretation.
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ADVANTAGES
1. 2. 3. 4.

DISADVANTAGES
1.

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5. 6. 7.

Delegation Uniformity Better control Standards of efficiency Confidence Speedy decisions Coordinating devices

2. 3.

4. 5.

Reluctant in following policy Leads to conflict Requires constant revision , modification and restructuring Difficult to communicate Managers take undue advantage
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ADVANTAGES Delegation

: they help managers operating at different levels to act with confidence without the need for consulting superiors every time. Uniformity : they try bringing in consistency in terms of performance among the employees in organization and employees are treated equally in terms of human dignity in organization. Better control : as policy framed in organization should be uniformly implemented it acts as monitor or standard in controlling the performance of employees in organization. Standards of efficiency : standards serve in execution of work. They enable the management to see if they have been translated into actions by various group in the organization.
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 Confidence

: policies make the employees aware of where they stand in the organization. They reduce chance of misinterpretation. Coordinating devices : personal policies help in achieving coordination. If organization members are guided by the same policies, they can predict more accurately the actions and decisions of others. DISADVANTAGES Managers are reluctant in following the policy as they restrict the powers of managers in organization. Policies may lead to conflict in organization as policies framed in organization may be favorable to some employees in organization as cost of other employees. E.g. promotion on basis of seniority. policies will be framed in organization during stable conditions as to which it will not do well during
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Procedures

are called as action guidelines which are derived from policies. Policies give broader perspective on contrary procedure show a sequence of required actions within that area. Programmes are set of goals, policies, procedures, rules that are necessary to carry out given course of action.

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Qualities
Personal

of HR manager

attributes : Intelligence : it includes skills to communicate, moderate, understand, command and tact in dealing with people intelligently. Educational skills : HR manager should posses learning and teaching skills as he has to learn and teach the employees about the organizational growth. Discriminating skills : HR manager should have the intelligence to discriminate between right and wrong, merit and demerit etc. Executing skills : HR manager is required to execute management regarding personal issues with accuracy and objective. He should be able to set standard for performance while coordinating and
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 Professional

attitudes : some of the professional attitudes to be possessed by HR manager are understanding, ability to listen to people this will help in maintaining friendly relationship among the employees in organization. Business mastery : HR manager is required to know the business of their organization for which he is required to have knowledge of all the process carried on in the organization. Change mastery : HR manager should be able to influence others and guide changes in the organization. Loyalty Transparency Dynamism and flexibility
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Roles

of HR manager
Operational role Recruiter Trainer developer, motivator Coordinator Mediator Employee champion Strategic role Change agent strategic partner

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Administrative role Policy maker Administrative expert Advisor House keeper Counsellor Welfare officer Legal consultant

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 Administrative

roles Policy maker: HR manager helps management in formulation that governs the human resource in the organization that is policies relating to talent acquisition, employee retention, medical facilities etc. Administrative expert : refers to HR manager is required to maintain database about the employees relating to their pay scale, position held by employee in organization, details about the facilities provided to employees in organization. Advisor: HR managers acts as advisor for various departments. He guides departments on preparation of reports, providing information regarding labor laws etc. House keeper: HR manager is know as house keeper as he is in charge of maintaining all the HR related
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Counsellor:

HR manager discusses various problems of employees relating to work, career, health, family and advices them on minimizing and overcoming problems. Welfare officer: as welfare officer it is the duty of the HR manager to address to quires of employees and try to fulfill their basic expectation from organization.E.g ( infrastructure facilities) Legal consultant: HR manager plays the role of grievance handling, settling of disputes, enable the process of joint consultation etc. Operational roles: HR manager is vested with the responsibility of hiring efficient employees for organization and should be able to provide effective career opportunities for employees in company.
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Trainer

developer, motivator: HR manager are required to design effective training program for employees to increase their level of flexibility to adjust to changes and motivate employees through attractive wage policy to retain potential employees in company. Coordinator : HR manager should try to build cordial relation between different department in company through the means of enhancing personal relation and ensure smooth flow of information among departments. Mediator : HR manager acts as mediator in situation of conflict between employees, employer and employees, trade union and management in companies. Employee champion: changing face of business has also led to changes in role of HR manager. He is not
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 Strategic

roles: Change agent: HR manager is required to update employees at regular interval of time, it creates flexibility among the employees to adjust to changes. He is held with the responsibility of taking initiative that focus on creating high performance teams, reducing cycle time for innovation. Strategic partner: HR manager should be able to build an effective workforce that must deliver efficient performance catering to the needs of consumers or potential customers.
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Factors
Size

influencing hrm

of work force : increased demand for efficient workforce and continuous expansion of business has increased the size of workforce in organization throwing up additional challenges for HR manager to satisfy the needs of diversified workforce such as better pay, working conditions etc. Composition of workforce : workforce composition refers to ratio of male and female employees working in organization. Demand for equal pay for equal work, putting end to gender inequality has become one of the major challenge for HR manager. Employee expectation : employees in present corporate world are much more composed which proves to be strength to employees to bargain for
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 Personnel

functions in future: Job redesign : refers to making the job flexible, job sharing and alternative work arrangements. Career opportunities: personal growth and self development is on of the major aspect which employees focus on. It becomes a challenging task for HR manager to restructure nature of job at regular interval to make task interesting for employees. Productivity : it is the responsibility of HR manager to generate qualitative output with minimum resources available for accomplishment of given task. Recruitment & selection : effective selection devices should be used which helps organization to hire efficient employees who have ability to match skills required by job.
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