Introduction To Human Resource Management Every business unit needs human resource (manpower) for the conduct of different

business activities. In fact, no organisation can exist or operate efficiently without the support of human resource. Such human resource includes top level managers, executives, supervisors and other subordinate / lower level staff / employees. A business organisation has to estimate its future manpower needs and adjust its manpower planning and development programmes accordingly. This is called 'staffing' function of management. Human resource management is also described as personnel management or manpower management. Various areas such as recruitment and selection, wage payment and industrial relations are covered under human resource management. Meaning of Human Resource In an industrial unit, large number of persons are employed in order to conduct various operations and activities. This is treated as human resource or manpower employed. A business unit needs material resources as well as human resource for the conduct of various activities. Of all the "M"s in management (such as Materials, Machines, Methods and Money) the most important "M" stands for Men i.e., manpower working in the organisation. It is through manpower/employees that all other ingredients of an enterprise-money, machines, materials, marketing, etc., are managed. In brief, Human Resource (HR) constitutes the most important and the most productive resource of an industrial / business unit. It is rightly said that "machines are important in the production process but the man behind the machines is more important". He transforms the lifeless factors of production into useful products. Human resource (HR) is an important asset of a business unit. Well-trained, loyal and efficient team of workers brings success and stability to a business unit. This suggests the importance of human resource in business. People and the organisation in which they work are inter-related and interdependent. organisation moves towards prosperity only by using its available human resource purposefully. Similarly, employees get various monetary and other benefits through the prosperity of their organisation. DEFINITION OF PERSONNEL MANAGEMENT "Personnel Management is the planning, organising, directing and controlling of the procurement, development, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and social goals".[Edwin Flippo] Objective of Personnel Management 1. To attain maximum individual development (self development) of the members of an Organisation and also to utilise available human resources fully and effectively. 2. To mould effectively the human resources. 3. To establish desirable working relationships between employer and employees and between groups of employees. 4. To ensure satisfaction to the workers so that they are freely ready to work. 5. To improve the service rendered by the enterprise to the society through better employee morale which leads to more efficient individual and group performance. 6. To establish and maintain a productive and self respecting relationship among the members of an Organisation. 7. To ensure the availability of a competent and willing workforce to the Organisation for its progress and prosperity.

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8. To help Organisation to achieve its goals by providing well trained, efficient and property motivated employees. 9. To maintain high morale and good human relations within the Organisation for the benefit of employer and employees. 10. To secure the integration of all the individuals and groups with the Organisation by reconciling individual/group goals with those of an Organisation. SIGNIFICANCE OF PERSONAL MANAGEMENT Personal management has unique significance in every organization because it makes possible the effective use of human resources along with material resources. Effective personnel management has significant value in an organization in terms of :Strategic Planning: Analysis of an organizations HR needs and preparing forecasts. Staffing: Obtaining appropriate employees through selection that is both reliable and can be justified in terms of its validity (criterion). o Training and Development: That is appropriate to the needs of the enterprise and/or employees. o Motivation: To achieve this, an appropriate rewards system needs to be in place, but also including other related features such as job evaluation and performance appraisal. o Maintenance: Administration and monitoring of workplace health and safety provisions is needed. This can also include a broader vision of workplace wellness (of the employees). o Managing Relationships: A range of employee involvement/participation schemes in both unionized and non-unionized workplaces. This can include collective agreements. o Managing Change: Managing this process in the workplace and its side-effects.
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FUNCTIONS OF PERSONNEL MANAGEMENT The functions of HRM can be broadly classified into two categories; I. Managerial Functions Managerial functions involve; i. Planning: It is a pre-determined course of action. Planning is determined of personnel programmes and changes in advance that will contribute to the organisational goals. In other words, planning involves human resources, requirements, recruitments, selection, training, etc. It also involves forecasting of persona\el needs, changing values, attitudes and behaviour of employees and their impact on organisation. ii. Organising: An organisation is a means to an end. It is essential to carry out the determined course of action. It can be said as structure and a process by which co-operative group of human beings allocates its task among its members, identifies relationship and integrates its activities towards common objective. iii. Directing: The next logical function after completing the above two is executing the plan. The basic function of personnel management is at any level is motivating, commanding, leading and activating people. This is an important managerial function in building sound industrial and human relations besides securing employee contribution. iv. Controlling: 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 actuals with the plans, identification of deviations, if any, and correcting of identified deviations.

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II. Operative Functions The operative functions of resources management are related to specific activities of personnel management like employment, development, compensations and relations. 1. Employment: Its the first operative function of HRM. Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organisational objectives. It covers the functions such as Job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. (i) Job Analysis: Its the process of study and collection of information relating to the operations and responsibilities of a specific job. (ii) Human Resource Planning: Its a process for determination and assuring that the organisation will have an adequate number of qualified persons, available at prior times, performing jobs which would meet the needs of the organisation and which would provide satisfaction for the individuals involved. (iii) Recruitment: Its the process of searching for prospective employees and stimulating them to apply for jobs in an organisation. (iv) Placement: Its the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching the employee specifications with job requirement. (v) Induction and Orientation:Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and people, etc., of the organisation 2. Human Resource Planning: Its the process of improving, moulding and changing the skills, knowledge, creative ability, aptitude, attitude, values commitments, etc., based on present and future job and organisational requirements. (i) Performance Appraisal: Its the systematic evaluation of individuals with respect to their performance on the job and their potential for development. (ii) Training: Its the process of imparting the employees the technical and operational skills and knowledge. (iii) Management Development: Its the process of designing and conducting suitable executive development programmes so as to develop the managerial skill of employees. (iv) Career Planning and Development: It is the planning of ones career and implementation of career plans by means of education, training, job search and acquisition of work experiences. (v) Organisation Development: It is a planned process designed to improve organisational effectiveness and health through modification. 3. Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures. (i) Job Evaluation: It is the process of determining relative worth of jobs. (ii) Wage and Salary Administration: This is the process of developing and operating a suitable wage and salary programme. (iii) Incentives: It is the process of formulating, administrating and reviewing the schemes of financial incentives in addition to regular payments of wage and salary. (iv) Bonus: It includes payments of statutory bonus according to the Payment Of bonus Act,1965, and its latest amendments. (v) Fringe Benefits: These are the various benefits at the fringe to the wage. Management provides these benefits to motivate the employees and to meet their lifes contingencies. (vi) Social Security Measures: Management provide social security to their employees in addition to the fringe benefits. 4. Human Relation: Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees creates a sense of relationship between the individual workers and management, among workers and trade unions and

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management. Human resource is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. 5. Effectiveness of Human Resource Management: Effectiveness of various personnel programmes and practices can be measured or evaluated by means of organisational health and human resources accounting, etc. (a) Organisational Health: Organisational health may be studied through the result of employees contribution to the organisation and the employee job satisfaction. The result of the employee satisfaction can be understood by labour turnover, absenteeism, commitment. Low rate of absenteeism and specific and high rate of employee commitment most probably indicates employee satisfaction about the job and the organisation. (b) Human Resource Accounting, Audit and Research: (i) Human Resource Accounting: It is a measurement of the cost and value of human resources to the organisation. Human resource management is said to be effective if the value and contribution of human resource to the organisation is more than the cost of human resource. (ii) Human Resource Audit: Human resource audit refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness of HRM. Personnel audit measures the effectiveness of personnel programmes and practices and determines what should or should not be done in future. (iii) Human Resource Research: It is the process of evaluating the effectiveness of human resource policies and practices and developing more appropriate ones. The Role of Personnel Manager: Personnel play an important role in the mgt. of change in an organization. He accomplishes organization goals by building a capable and dynamic work force. He tries to create a sense of involvement and commitment on the part of employees. He creates a sound and favorable working climate and working relationships by motivating employees and achieves organizational goals by effective utilization of human resources. The decisional role helps in taking innovative steps and increases the organizations effectiveness: 1. Policy Initiator and Formulator 2. Advisor 3. Problem Solver 4. Mediator 5. Well-wisher 6. Representative 7. Decision-maker 8. Conduct research 9. Developing Effective Appraisal System 10. Management & training 11. Effective Communication TRAINING & DEVELOPMENT In the field of human resource management training and development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. It has been known by several names, including human resource development, and learning and development. Training and development encompasses three main activities: training, education, and development.. However, to practitioners, they encompass three separate, although interrelated, activities: - Training: This activity is both focused upon, and evaluated against, the job that an individual currently holds.

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- Education: This activity focuses upon the jobs that an individual may potentially hold in the future, and is evaluated against those jobs. - Development: This activity focuses upon the activities that the organization employing the individual, or that the individual is part of, may partake in the future, and is almost impossible to evaluate Difference between Education, Training and Development In simple terms education provides a knowledge base that underpins any other activities the individual may engage in at a later stage. Training is not as general and tends to concentrate on skills development. Development allows both activities to be integrated. It has been described as the general enhancement and growth of an individuals skills and abilities through conscious and unconscious learning. Training and development Training and development are closely interrelated terms that aim to help in achieving the objectives of the company while at the same time increase the efficiency and productivity of the employees Training of a new employee is an integral part of his induction and orientation. Training is imparted so that he understands his roles and responsibilities and learns to perform the tasks entrusted to him with ease and with efficiency. Training makes an employee more productive for the organization and is thus concerned with his immediate improvement. Development of an employee is an ongoing process which continues well beyond training. The focus of development process is the person himself where the focus of training is the organization. Development concerns with making the employee efficient enough to handle critical situations in future. So while training concentrates on short term needs of the organization, development looks after long term goals of the organization. Training and Education There is no denying the importance of training and without training, education would be incomplete. Formal education is what is imparted in schools from elementary to 10+2 stage after which a student peruses undergraduate and then graduate level courses. The basic purpose of this type of education is to impart knowledge about facts, concepts, events and principles. All these form the foundation upon which skills learnt later work smoothly Training on the other hand is focused upon gaining a particular skill. Training is taken to master a particular task or job and is mostly imparted to adults to let them become proficient in a particular skill. If you are learning about driving laws and theoretical aspects of driving, you are getting education and not training. It is clear then that education pertains to remembering facts and understanding concepts. On the other hand training pertains to practical aspects of a task or job and is imparted in training institutes and special training sessions. Objectives of Training 1. To raise efficiency and productivity of employees and the Organisation as a whole. 2. To create a pool of well-trained, capable and loyal employees at all levels and thereby to make arrangement to meet the future needs of an organisation. 3. To provide opportunities of growth and self-development to employees and thereby to motivate them for promotion and other monetary benefits. In addition, to give safety and security to the life and health of employees. 4. To avoid accidents and wastages of all kinds. In addition, to develop balanced, healthy and safety attitudes among the employees. 5. To meet the challenges posed by new developments in science and technology. 6. To improve the quality of production and thereby to create market demand and reputation in the business world. 7. To develop cordial labour management relations and thereby to improve the organisational environment.

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8. To develop positive attitude and behavior pattern required by an employee to perform a job efficiently. In other words, to improve the culture of the Organisation. 9. To prevent manpower obsolescence in an organisation. 10. To develop certain personal qualities among employees which can serve as personal assets on long term basis. Benefits of Training To Employer / Management 1. Training raises the efficiency and productivity of managers. It also improves the performance of workers due to their motivation. 2. Training improves the quality of production. It also reduces the volume of spoiled work and wastages of all kinds. This reduces cost of production and improves quality. 3. It reduces accidents as trained employees work systematically and avoid mistakes in the work assigned. 4. Training reduces expenditure on supervision as trained employees take interest in the work and need limited supervision and control. 5. Training brings stability to labour force by reducing turnover of managerial personnel. 6. Training raises the morale of employees. 7. Training creates skilled and efficient manpower which is an asset of an industrial unit. 8. Training moulds attitudes of employees and develops cordial industrial relations. 9. Training reduces absenteeism as trained managers find their job interesting and prefer to remain present on all working days. 10. Training facilitates the introduction of new management techniques and also new production techniques including automation and computer technology. 11. Training creates a pool of trained and capable personnel from which replacements can be drawn to fill up the loss of key personnel due to retirement, etc. 12. Training provides proper guidance and instructions to newly appointed executives and assists them to adjust properly with the job and the organisation. TYPES OF TRAINING For management development, several methods / techniques are used. These methods can be divided into two broad categories:(A) Internal Training Methods / On The Job Methods Coaching: Coaching on the job coaching is a method by which a superior teaches job knowledge and skills to a subordinate manager. He briefs the trainee executive about what is expected of him and how it can be done. The superior also checks the performance of his subordinate and guides him to improve his shortfalls and deficiencies. The superior acts as a friend and guide of his subordinate. Coaching method favours learning by doing. Its effectiveness depends on the capacity and the interest taken by the superior and also by the subordinate. The superior should adopt a positive approach in the coaching process and help the subordinate in achieving self-development. Coaching has certain limitations. For example, a trainee manager cannot develop much beyond the limits of his own superior's abilities. Similarly, the success of coaching method depends on the interest and initiative taken by the trainee - manager. 2. Understudy assignment: An understudy is a trainee-manager who is to assume the full duties and responsibilities of the position currently held by his superior, when the later leaves his post due to retirement, transfer or promotion. Here, a departmental manager (head) selects one of his suitable subordinates to become his understudy. As an alternative, the personnel department may make the selection of understudy. The departmental manager will guide him (i.e. understudy) to learn his job and deal with the
1.

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problems that confront the manager daily. The understudy will learn the job of his superior through observation and participation in the decision making. He may be given specific problems to study and to make recommendations for solving them. The understudy will be given wider exposure and an opportunity to develop capacity to deal with difficult problems and complex situations. 3. Job Rotation: It involves transfer of executives from one job to another. The aim of job rotation is to broaden the knowledge, skills and outlook of executives. This method can be used in the case of management trainee and also in the case of an existing manager due for promotion. Job rotation method is also useful for providing variety of job experience to managers. Advantages of Job Rotation 1. It brings all departments on the same footing as executives move from one department to other. 2. Job rotation facilitates inter-departmental cooperation. New procedures are introduced in departments along with the rotation of managers. 3. The benefit of wider exposure is available to trainee manager. 4. There is absence of monotony in the training process due to job rotation. Limitations of Job Rotation are:1. The work of departments is affected due to frequent changes of executives for training purpose. 2. The trainee manager finds it difficult to adjust himself to his new bosses. 3. Even the executives are not in a position to have specialized knowledge and training in one particular branch of work. 4. Frequent changes of position of executives may also affect their morale. 4. Delegation: Delegation is one more internal method of management development. The performance of subordinates may not improve unless additional responsibility and authority are delegated to them. Making the subordinates to achieve a particular target through delegation is one way by which subordinates will learn to grow and develop independently. They will develop leadership qualities and decision-making skills, which are necessary for a good manager. 5. Membership of Committees: Inter-departmental committees are normally created for bringing co-ordination in the activities of different departments. Managers from different departments are taken on such committees. Junior managers are also given membership of such committees so as to give them a broader exposure to the viewpoints of other departmental heads. Ad hoc committee of executives is also constituted and is assigned a specific problem for study. Such commitee assignments offer opportunity of training to junior executives, as they have to study the problem in depth and make recommendations. (B) External Methods of Management Development / Off The job Methods 1. Role-playing: Role-playing has been defined as "A method of human interaction, which involves realistic behavior in the imaginary situations." It is particularly useful for learning human relations and leadership training. Its objective is to raise the ability of trainee manager while dealing with others. In the role playing, a conflict situation is artificially created and two or more trainees are assigned different roles to play. For example, a male employee may assume the role of a female supervisor and the female supervisor may assume the role of a male employee. Then, both may be given a typical work situation and asked to respond as they expect others to do. Such role playing results in better understanding among individuals. It helps to promote interpersonal relations and attitude change. 2. Case Study: Case study method was first developed by Christopher Langdell at Harvard Law School. A case is a written account giving certain details of the situation is relation to a specific matter. Such case study

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may be related to any aspect of management such as production, marketing, personnel, finance and so on. The case presented is always incomplete. This means the solution to the problem is not provided. The participants are supposed to identify the best available solution. A small group of managers are asked to study the case in the fight of theoretical study already completed and is followed by open discussion in the presence of capable instructor, who can guide intelligent discussion and analysis. There is nothing like one correct answer to the case study. Case study method has certain advantages like, (a) in-depth thinking about the matter by managers, (b) more perception in situation and greater respect for the opinions of others. 3. Conferences and Seminars: Deputing officers for conferences and seminars is a method available for management development. Various matters are discussed systematically in such conferences and seminars. This provides new information and knowledge to the managers. The participants in such conferences and seminars are limited. As a result, more persons get an opportunity to participate in such conferences for selfdevelopment. Conferences may be directed or guided or may be for consultation and finally for problem solving. 4. Simulation: Here, an executive or trainee is given practical training by creating situation / environment, which closely represents the real life situation at the work place. For example, activities of an organisation may be simulated and the trainee may be asked to make a decision in support of those activities. The results of those decisions are reported back to the trainee with an explanation. The report illustrates what would have happened if that decision was taken. The trainee teams from this feedback and improves his subsequent simulation. 5. Management / Business Games: A variety of computer and non-computer management / business games have been devised for training of managers. This training method is used in management development. It is a type of classroom method of training. The game is designed to represent real life situation. Employees for managerial positions are put in an exercise of actual decision-making. A problem is provided to them along with all the necessary information and constraints. The employee is asked to make a decision. The quality of this decision is judged by how well the applicant has processed the information provided to him. The processing of information is supposed to be guided by knowledge of the goals and policies of the organisation. Even if mistake is made in the game, the trainee can learn a lot out of his mistake. This avoids possible mistakes while taking decisions for his company. This method develops capacity to take rational decisions by managers. EFFECTIVENESS OF TRAINING PROGRAMMES 1. Test-retest Method Participants are given a test prior to and after the training programme is complete. Any change or any improvement of test-Cowrse is attributed to the training programme and is a measure of its effectiveness. It is assumed that the test-course will be reflected in the actual performance. 2. Per-post Performance Method- Its a method which evaluates the employee on actual job performance, both prior to the training and after the training. Any improvement is attributed to the training programme. 3. Experimental Control Group Method- Two groups are established with the similar skills, intelligence and learning characteristics, one group is called the control-group, the other is called the experimental-group. Both the groups perform the job prior to the training, but it is only the experimental group which is exposed to the training. After the training programme is over, both the groups are evaluated on actual job performance. It the experimental- group shows a better performance than the control-group, then we can say that the training programme was effective.

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