Human Resource Management

The only vital value an enterprise has is the experience, skills, innovativeness and insights of its people. The people make or mar an organization. How to induce the people to make an organization but not to mar it? Getting the people who can make an organization Enabling those people to acquire required capabilities to make a successful organization. Motivating them to contribute their resources continuously for running the organization successfully.

Meaning and Definition

According to Leon C Megginson: The Total knowledge skills, creative abilities, talents and aptitudes of an organizations workforce, as well as the value, attitude and beliefs of the individuals involved is called Human resources.

In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements with a view to contribute to the goals of the organization, individual and the society.

Nature and Scope

Nature of HRM

Complex Dynamism A Social System A Challenging Task

Scope of HRM Personnel aspect (HRP, recruitment, selection, placement, transfer, promotion, T & D, lay off and retrenchment, remuneration, incentives, productivity, etc) Welfare aspect (canteens, crches, rest and lunch rooms, housing, transport, medical assistant, education, health and safety, recreation facilities etc) Industrial relations aspect (union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes etc)

Evolution of HRM
Period
1920-30 1940-60

Emphasis
Welfare management Paternalistic practices Expanding the role to cover labor, welfare, industrial relations and personnel administration

status
Clerical Administrative

Roles
Welfare administrator Policeman Appraiser Advisor Mediator Legal advisor Fire fighting

1970-80

Efficiency, effectiveness dimensions added emphasis on human values, aspirations, dignity, usefulness

Developmental

Change agent Integrator Trainer Educator

Developer Counselor Coach Mentor Problem solver Compete with the best and win

1990-2000

Incremental productivity gains Proactive, through human assets growth-oriented

Post 2000

Aggressive cost cutting in order to compete in a global environment

Fight for survival to live for another day

Difference between PM & HRM

Personnel Management views the man as economic man who works for money or salary. HRM treats the people as human beings having economic, social and psychological needs. According to David Guest, Storey and others, differences between PM & HRM are:
Flexibility Scope Approach to labor relations Relationships with line management The Strategy aspects are also vastly different

Features of HRM
HRM is concerned with employees both as individual and as a group in attaining goals. Development of human resources. It covers both organized and unorganized employees. It is common in all types of organization. It is continuous and never ending process. It is a responsibility of all line managers and function of staff managers. It is concerned mostly with managing HR at work. It is the central sub-system of an organization.

HRM Functions
HRM

Managerial Function
Procurement Development Motivation& Compensati on Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensatio n administration Incentives benefits and services Maintenan ce Health Safety Welfare Social security

Operative Functions
integration Emerging issues Personnel records Personnel audit Personnel research HR Accounting HRIS Job Stress Counseling Mentoring IHRM

-Planning
Job Analysis Training Executive development Career planning Selection Placement Induction Internal mobility Succession Planning HRD Strategies

-Organizing - Directing -Controlling

HR Planning Recruitment

Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerme nt Trade unions Employers association Industrial relations

Objectives of HRM
1. To help the organization reach its goals To employ the skills and abilities of the workforce efficiently To provide the organization with well-trained and well-motivated employees. To increase to the fullest the employees job satisfaction and selfactualization. To develop and maintain a quality of work life. To communicate HR policies to all employees. To be ethically and socially responsive to the needs of society.

2.
3.

4.

5.

6.
7.

Policies, procedures and Programmes

HRM Policy: a set of proposals and actions that act as a reference point for managers in their dealings with employees . HRM Procedure: Procedures are called action guidelines. Procedures are specific applications. HRM Programmes: are complex sets of goals, policies, procedures, rules, steps to be taken, resources to be employed and other elements necessary to carry out a given course of action.

Organization of HRM (Organizational Design)

Organizations are usually formed to satisfy objectives that can best be met collectively. The steps involved in designing organization structure are: a) External environment b) Overall aims and purpose of the enterprise c) Objectives d) Activities e) Decisions to be taken across horizontally and vertical dimension f) Relationships g) Organization structure h) Job structure i) Organization climate j) Management style k) Human resource

Line and staff responsibility

Formal relations are divided into line and staff relations. a) Line and staff relationship b) Line relationship c) Staff relations

Role of PM/HR
HR Manager plays a vital role in the modern organization. These are i) The Conscience role ii) The Counselor iii) The Mediator iv) The Spokesman v) The Problem-solver vi) The Change Agent As a Specialist the other roles of HR Manager are: i) Personnel role ii) Welfare role iii) Clerical role iv) Fire-fighting / legal role

Qualities of HR Manager
The function of personnel management vary from orgn to orgn both in nature and degree. However, the qualities which will be applicable in general can be summarized as follows: HR Manager must have initiative, resourcefulness, depth of perception, maturity in judgment and analytical ability. He should be thorough with labor laws. He must be familiar with human needs, wants, hopes and desires, values, aspiration etc. without which adequate motivation in impossible. He should also possess personal attributes like:
i) ii) iii) iv) v) vi) vii)

Intelligence Educational skills Discriminating skills Executing skills Experience and training Professional attitudes qualifications

HR Manager as a strategic partner

SHRM Strategic Human Resource Management ? SHRM is built around 3 important propositions:
1) 2) 3)

The HR of a firm are a major source of competitive advantage Successful organizational performance depends on a close fit between business and HR strategy (vertical fit) Individual HR Strategy should cohere by being linked to each other to offer mutual support (horizontal fit)

HR Manager as a strategic partner:

HR can play a vital role, especially in identifying and analyzing external threats and opportunities. HR can also offer competitive intelligence that may be helpful while giving shape to strategic plan. HR can also throw light on companys internal strengths and weakness.

Factors influencing HRM

There are external & internal factors influencing HRM. External factors includes: a) Economic factors (Customers, Suppliers, competitors & Globalization) b) Political & Legislative factors ( The Legislative, the Employers, & The Judiciary) c) Technological Factors d) Social & Cultural factors e) Demographic factors Internal factors include: a) Shareholders b) Customers c) suppliers d) Government e) Public f) Unions g) The employees h) Top Management

Challenges in HRM
Workplace Diversity The Challenges of Workplace Diversity

The Management of Workplace Diversity

Planning a Mentoring Program Organizing Talents Strategically Leading the Talk

Control and Measure Results

Motivational Approaches Gain-sharing Managing Gain-sharing

Executive Information Systems

Managing EIS