HUMAN RESOURCE MANAGEMENT

INTRODUCTION:
Profit maximization, reasonable rate of return to owner and reinvestment in business through satisfaction of customers, maintenance of a satisfied workforce, and creation of good public image are some objective which every organization try hard to achieve. These objectives can best be achieved with the optimum use of all the available resources such as, human, technological, financial and physical resource. Human Resource available to the management, although a part of all the resources, can play vital role in achievement of the objectives. It is through the combined efforts of the people that monetary and other material resources are utilized for organizational objectives. Therefore, it is the human resources, which must be managed with utmost care so that it can contribute its maximum to achieve organizational objectives. According to Leon C. Magginson: The term human resources can be thought of as, The total knowledge, skills, creative abilities, talents and aptitudes of an organisations workforce, as well as the value, attitudes and beliefs of the individuals involved.

Human resource is a resource like any other natural resource. It means that management can get and use the skill, knowledge, ability etc. through the development of skills, tapping and utilizing them again and again.

Meaning of Human Resource Management:

Many terms used for HRM such as personnel or staff management, personnel administration, Labour relations, industrial relations etc. in simple sense human resource management mean employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organisation requirements. Human resource management is that process of

management which develops and manages the human elements of an enterprise. It is not only the management of skills but also the attitudes and aspirations of people. When individuals come to a work place, they come with not only technical skills, knowledge, experience etc., but also with their personal feelings, perception, desires, motives, attitude, value etc. So HRM means management of various aspects of human resource. An important element of human resource management is the Humane Approach while managing people. This approach helps the manager to view his people as an important resource. It is an approach in which manpower resources are developed not only to help the organisation in achieving its goals but also to the self satisfaction of the

concerned persons. On the one hand this approach focuses on human resource development, and on the other to an effective management of people. It focuses on the human aspect of individual worker and his aspirations and needs.

Definitions:
Human Resource Management has been defined differently by different writers. Some definitions are produced below:-

According

to

Flippo, is the

Human

resource organizing,

management development, maintenance resources to organizational accomplished. According training, employees, to

planning,

directing and controlling of the procurement, compensation, and the and reproduction end societal that integration, of human are individual,

objectives

dessler, is the

Human of and to

resource acquiring, labour

management

process

appraising and

compensating their

attending

relations, health, safety and fairness concerns. Functions of HRM:

The functions of HRM can be broadly classified into three categories, viz.,

1. 2. 3. 1.

Managerial Functions Operative Functions Advisory Functions Managerial Functions:

All the basic functions of the organizational management are performed by Human Resource manager which are as follows: (a) Planning: Planning is determination of future course of action.

According to Allen it is a trap laid to capture the future. Planning is determination of personnel programmes and changes in advance that will contribute to the organizational goals. Planning is necessary to determine the goals of the organisation and lay down policies and procedures to reach the goals. It involves planning of human resources requirements, recruitment, selection, training, development etc. The process of planning involves three steps, Firstly, a supply and demand forecast for each job category is made. Secondly, net shortage and excess of personnel by job category are projected for a specific time horizon.

Finally,

plan

are developed to eliminate

the forecast

shortages and excess of particular categories of human resources. (b) Organising: After a course of action has been determined an organisation should be established to carry it out. According to Koontz and O Donnell , organisation is the establishment of authority relationship with provision for coordination between them, both vertically and horizontally in the enterprise structure. Organisational activities: (i) (ii) Grouping of personnel activity logically into functions or positions. Assignment individuals. (iii) Delegation of authority according assigned and responsibilities involved. (iv) Coordination of activities of different individuals. (c) Directing to the tasks of different functions to different structure basically includes following

The basic function of personnel management at any level is motivating, commanding, leading and activating people. Directing is involved with getting person together and asking them to work willingly and effectively for the achievement of designated goals. Directing deals not only with the dissemination of orders within an organisation units and departments, but also with the acceptance and execution of these orders by the employees. Securing acceptance and

execution generally requires a certain amount of motivation of individuals and groups. Otherwise, the actual performance level may be well below that which is desired. The decision are taken by the top management, but only after consultation with personnel department. (d) Controlling: Controlling involves checking, regulating and verifying whether everything occurs in conformity with the plan that has been adopted, the instructions issued and the principles established. It is greatly concerned with actions and remedial actions. It is through control that actions and operations are adjusted to pre determined standards; and its basis is information in the hands of managers. By check , analysis and review, the personnel department assists in realizing the personnel objectives. Auditing training programmes, analysing labour turnover records, directing moral surveys, conducting separation interviews, interviewing new employees at stipulated intervals, comparing various features of the programme with other organisation programmes in the area, industry and nation are some of the means for controlling. OPERATIVE FUNCTIONS: Operative function includes specific activities which are the responsibility (i) (ii) of the human resource / personnel department. These functions include: Procurement Function Development Function

(iii) (iv) (v)

Compensating Function Integration Function Maintenance Function

Procurement Function: Procurement function is mainly concerned with securing and employing proper kind and number of personnel necessary to accomplish an organisations goals. It deals with the following activities: (i) (ii) Determination of manpower requirements, Recruitment , and placement tests, (comprising interviews, activities medical screen and hire personnel including application forms, psychological check-up, reference calling), (iv) Induction, (v) Follow-up, (vi) Transfer, (vii) Lay-offs, discharge and separation, etc. Development Function: It is mainly concerned with the process of improving, moulding and changing the skills, knowledge, creative ability, attitude, aptitude,values, commitment etc. through training so that job performance is properly achieved. This function undertake the following activities: (i) Drafting and directing training programmes for all level of employees.

(iii) Selection

(ii)

Arranging for on the job, office and vestibule training.

(iii) Holding seminars and conferences (iv) Providing for educational and vocational counseling and appraising employee potential and performance. Compensation Function: Each and every employee for the has to be paid adequate he renders to the compensation services

organisation. The compensation is one of the major factors of motivation to the employees, which has great bearing on the performance of the employees and inturn, the performance of the organisation. This function is concerned with securing adequate and equitable remuneration to personnel (i) (ii) for their contribution to the attainment of organistional objectives. It includes following functions: Wage surveys Job classification

(iii) Job analysis (iv) Job descriptions (v) Wage structure, wage plans and policies. (vi) Incentive and profit sharing plans. Integration Function: Integration is concerned with the attempt to effect a reasonable organization significant reconciliation interests. overlapping It of of rest individual, upon the do interest societal, premise exist in and that the

organization in such a programmes as job enlargement, job evaluation, variable compensation plans. The greater the

overlap, the more productivity would coincide with the employee satisfaction. Managerial integration relation activities of human that bring about and a reasonable organisation Human accidents, while

resources tend and to

the

objectives, are termed as Human Relations. programme turnover decrease absenteeism, operating errors

simultaneously raising morale, quality and productivity such programmes also prevent undesirable behaviour such as sabotage, insubordination, strikes, etc. Maintenance Function: Maintenance function is concerned with working conditions and welfare of the employees. The employees must be provided with good working conditions so that they may like their work and work place and maintain their efficiency. Safe and hygienic working conditions certainly influence the motivation and morale of the employees. These includes: (i) (ii) Measure taken for health , safety and comfort of the work force. Social and physical well being of the employees which includes, provision of cafeteria, rest rooms, counseling, group insurance, education for children of employees, recreational facilities. ADVISORY FUNCTIONS: Human Resource Manager has specialized education and training in managing human resources. He is an expert in his

area and so can give advise on matter relating to human resources of the organisation. He offers his advise to:
1.

Top Management: Personnel manager advises the top management in formulation and evaluation of personnel programmes, policies and procedures. He also gives advice for achieving and maintaining good human relations and high employee morale.

2.

Department

Heads:

Personnel

manager

offers

advice to the heads of various departments on matter such as manpower planning, job analysis and design, recruitment and selection, placement, training, performance appraisal etc. NATURE OF HUMAN RESOURCE MANAGEMENT The nature of human resource management has been highlighted in the following features:1. Integral part of the process of management: resource management is embedded in the Human

organisational structure of and enterprise and an integral part of the process of management itself. Human resource management can not be separated from the basic management function. This function is performed by all the managers throughout the organisation rather than by the personnel department only. 2. Comprehensive function: The main function of

human resource management is to manage people at work. It is a comprehensive function which covers all types of people at all levels in the organisation. In other words, it

applied to workers, supervisors, officers, managers and any other type of personnel in the organisation. 3. Pervasive function: human resource management

is comprehensive as well as pervasive. It is inherent in all organisations and at all levels. It is not confined to industry alone. It is equally useful and necessary in government , armed forces, sports organisations, and the like. It applied to all the functional areas e.g. production marketing, finance, research etc. Each and every manager is involved with human resource function. 4. People Oriented: human resource management is

people oriented function and is concenrned with employees as individuals as well as groups. It deals with human relationship within an organisation. It is a process of findingout the optimum arrangement between individuals, jobs, organisations and environment. It is concerned with all categories of personnel from top to the bottom of the organisation. 5. Based on Human Relations: Human resource

management is concerned with the motivation of human resources in the organisation. The human beings can not be treated as other physical factors of production. Therefore, human resource management: (i) Stresses the solution of personnel problems.

(ii) consider every employee as and individual so as to provide service and programmes to facilitate employee satisfaction and growth

(iii) Attempt to obtain willing cooperation of the employees for attainment of desired objectives. (iv) Considers employees. 6. the emotions and sentiments of the

Continuous Process:

Human resource management

is a continuous process. It is not a one function rather it is never ending exercise. 7. Science as well as Art: Human resource management is a science as it constrains an organised body of knowledge consisting of principles and techniques. It is also an art. Handling people is one of the most creative arts. It involves the application of theoretical knowledge to the problems of human resources. Thus it is science as well as art. 8. Recent Origin: human As compared to other areas of resource management is management,

comparatively a young discipline. It started in the later part of nineteenth century. 9. Interdisciplinary: In modern time, human

resource management has become highly specialized job. Moreover it is not an isolated subject, it is interdisciplinary. It involves application of knowledge drawn from several like sociology, anthropology, psychology, economics etc. SCOPE OF HUMAN RESOURCE MANAGEMENT According to Dale Yoder, the scope of human resource

management consists of the following activities:-

(i)

Setting policy

general for

and

specific and

management and

relationship

establishing

maintaining a suitable organisation for leadership and cooperation.

(ii)

Collective

bargaining,

contract

negotiations,

contract administration and grievances.

(iii)

Staffing the organisation, finding, getting and holding prescribed types and number of workers. Aiding the self-development of employees at all levels, providing opportunities for personnel development and growth as well as for requisite skill and experience.

(iv)

(v)

Incentivating, Reviewing

developing and

and

maintaining manpower

motivation for work.

(vi)

auditing

management in an organisation.
(vii)

Industrial relations research, carrying out studies designed thereby o explain effecting employment improvement behaviour in and manpower

management. Indian Institute of Personnel Management has

described the scope of human resource management in to the following aspects:(i) Personnel Aspect:This aspect is comprised of the placement, induction, promotion, transfer,

activities concerned with manpower planning, recruitment, selection, demotion, separation, layoff, retrenchment, training and

development, incentives and motivations, wage and salary administration. (ii) Welfare Aspect: This is concerned with the conditions of work, and amenities such as the provision of canteens, crches, housing, transport, medical, education, recreational and cultural facilities, and health and safety provisions. (iii) Industrial Aspect: Industrial aspect is includes activities which are concerned with trade union negotiations, settlement of disputes, grievance handling, disciplinary action, collective bargaining, joint consultation, benefits and services such as insurance, unemployment security, sickness, leave, loan fund etc. IMPORTANCE OF HUMAN RESOURCE MANAGEMENT The importance of human resource management can be discussed from three standpoints, viz.. 1. Social Significance: Proper management of personnel enhances their dignity by satisfying their social needs. This it done by:(i) Maintaining a balance between jobs available and the jobseekers, according to the qualifications and needs. (ii) Providing suitable and most productive employment, which might bring them psychological satisfaction. (iii) Making maximum utilization of the resources in an effective reasonable manner and paying in the employee to the compensation proportion

contribution made by him.

(iv) Eliminating resource, (v) 2.

waste through

or

improper

use of

of

human normal

conservation

their

energy and health. By helping people make their own decisions that are in their interests. Professional Significance: By environment it promotes providing team work healthy in the working (i) (ii)

employees. This is done by:Maintaining the dignity of the employee as a Human Being. Providing maximum opportunities for personal development. (iii) Providing healthy relationship between different work groups so that work is effectively performed. (iv) Improving the employees working skill and capacity. (v) 3. (i) (ii) Correcting the errors of wrong postings and proper reallocation work. Signification for individual Enterprise: Creating right attitude among the It employees can help the organisation in accomplishing its goals by :through effective motivation Utilizing effectively the available human resources achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualisation. (iii) Securing willing cooperation of the employees for

Role of Personnel Function in an Organisation:

The human resource department or personnel department is set up under the leadership of human resource manager or personnel manager. The human resource manager performs the basic functions of the management such as Planning, organising, directing and controlling. At the same time he performs certain operative functions such as recruitment, selection, training, placement etc. He has to play multiple roles to bring efficiency in managing the human resources and achieving human relations in the organisation. In addition to the managerial and operative functions, some of the important roles of the human resource manager in an organisation are as follows: 1. Advisory Role: The personnel manager advises top

management on effective utilisation of human resources. As a specialist the personnel manager advises the head of different functional department on various aspect of human resource management e.g. manpower planning, recruitment, selection, training and development, performance appraisal of individual and group behaviour. 2. Counselling role: The personnel manager plays

the role of a cousellor with the employees also. He discusses the various problems of the employment relating to work, career, their supervisors, collegues, health, family, financial, social etc. suggest them means to minimize and over come those problems.

3.

Role of a Change Agent:

Personnel

manager

works as a change agent regarding personnel areas. To be an effective consultant, he should be familiar with the needs and changing environment of the business. He should be familiar with the needs and changing environment of business. He should initiate and spearhead necessary improvement in human resource policies. As a consultant, he can provide necessary infrastructure and support for organisation development. He helps in introducing and implementing major institutional changes in origanisation. 4. the The conscience role: humanitarian about approach. the moral While playing the conscious He and should ethical advise the

role, the personnel manager informs the management about management obligations

towards the employees. 5. Mediators Role: The personnel manager often

acts as a mediator in the organisation. Whenever there is a friction between two employees, two groups of employees, superior and subordinates and employees and management, the personnel manager has to act as a mediator, so as to maintain industrial harmony. 6. Liaison Role: the personnel manager acts as a

representative of the organisation so as to give an overall picture of the organizational operations to the employees particularly in case of industrial disputes or grievance redressal. Similarly, he acts as employees representative in

representing their problems to the management particularly in concerns where trade unions are not there. 7. legal Role: The personnel manager plays this fire cases, collective bargaining, joint

fighting role of grievance handling settlement of disputes, handling disciplinary consultation, interpretation and implementation of various labour laws, contracting lawyer regarding court cases, filling suits in labour courts, industrial tribunals, civil courts and the like. 8. Welfare Role: under section 49 of the Factories Act, a

welfare officer has to be appointed in specific factories. Personnel manager is expected to be the welfare officer of the company. As a welfare officer he provides and maintains canteen, hospitals, crches, educational institutions, clubs, libraries, conveyance facilities, cooperative credit societies, consumer stores etc. 9. Controller Role: the personnel manager assists the

line managers in effective implementation of personnel policies and programmes. His advice and service is essential for monitoring and controlling the progress. As an arm of the top management, the personnel manager ensures that the personnel policies and procedures approved and adopted by the management are being consistently carried out in all the departments. 10. Human Relation Role: Personnel manager is

supposed to be an expert in human relations. He is expected

to improve productivity by fulfilling the economic, social and psychological needs and aspirations of employees. Personnel manager also has to meet the challenge of a fast changing post industrial society DIFFERENCE MANAGEMENT Some people do not make a distinction between HRM and personnel management. Both are taken to include identical functions. Some even say that HRM is a dignified term for personnel management. They consider HRM as old wine in a new bottle. However, there are thinkers who feel that HRM is much more than personnel management. The very philosophy of human resource management is different from that of personnel management as discussed below:(i) Focus: Organisational interest is important in BETWEEN HRM AND PERSONNEL

personnel management but, HRM projects the development of individuals in accordance with their needs and aspirations so that the individuals would be motivated to make their best contribution towards the accomplishment of the common goals. While personnel management was designed to respond to the organizational objectives like profit maximization, HRM visualized human element of enterprise as important resource. Hence, development of human resources is the most crucial aspect of human resource management.

(ii) Philosphy:

HRM is primarily a philosophy, an

attitude, an approach, a policy and a practice; while personnel management is viewed as a functional area of management. HRM represents the humanisation of management, while personnel management is concerned with managing personnel. (iii) Nature of Function: Personnel management has

been traditionally viewed as a staff function headed by personnel manager who is responsible for procurement, training, compensation and appraisal of personnel. On the contrary, HRM is a part and parcel of every line function. Since the primary job of every manager is leading and actuating, HRM can not be isolated from leading and actuating. However, the traditional personnel function included in HRM. Thus HRM includes not only manpower planning, procurement, training, compensation and appraisal etc, but also career planning and development, counseling, motivation and potential appraisal. (iv) Pervasiveness: personnel management personnel manager. (v) Motivation: is HRM concentrates more on motivation, and job satisfaction, concerned while with personnel selection, primarily HRM is the concern of all

managers from top to bottom in an organisation, while is mainly the concern of the

morale-boosting management

recruitment and appraisal of personnel.

(vi) Team Work: HRM is more concerned with working with people, team building and team work; while personnel management is interested in the orderly way of administration of personnel policies and programs. (vii) Techniques: Traditionally personnel manager

operated through pressure tactics and coercive measures including threats of punishments . but HRM aims to achieve workers cooperation through team building, mutual understanding and motivation. HRM is, in fact , an integrated approach to management of human resources in the organisation.