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HUMAN RESOURCES MANAGEMENT

INTRODUCTION:
Management of Human Resources requires proper attention to Managers at all levels in the organization.

They must guide the workforce, influence their behaviour and motivate them to contribute maximum towards the organizational goals. Huge capital investment in modern Science & Technology will not bring the desired results, if the Human Resource are not utilized properly. It is the Human beings who will use Materials, Machines, Methods and Other Resources to produce the Goods and Services. Management should understand that every worker has Needs, Aspirations, and Expectations which he likes to be fulfilled at the place of work. Therefore, the Management should provide ample opportunities to the workers to satisfy their needs and aspirations. One should understand that Workers do not merely sell their services.

(1)
It is the Human Being who, in turns, wants good Human Relations at the work Place where he spends 8 to 10 Hours every day.

Indeed, good Human Relations are not created automatically. Deliberate and persistent efforts should be made by the Management to build good relations between Management and Labour Force in the Industry. Management must recognize the Right to Expression of the workers and give them adequate opportunity to have a say in the Management affairs directly affecting their lives. Management of Personnel or Human Resources encompasses not only the process of Employment, Training & Development, Remuneration, Appraisals etc., but also achieving Good Industrial relations which are the pre-requisites to achieve the Higher Productivity. Human Resources are the first and foremost tangible assets of any organisation. People Power takes the Centre Stage in all operations whether in Commerce, Industry or Administration HR is acknowledged as the Driving Force of all Organisational Resources.

21st Century definitely belongs to Human Resources People are the Foundation of any Organisation and they are the Crucial Deciding Factor in the Success of a Company.

HR is a continuous process which nurtures, develops and harnesses human potential for the benefit of the organisation. (2) HR Professionals will find themselves indispensable at the Top Echelons of the organisations serving as the Driving Force in all organisational processes.

The Services of HR should ensure the significance of Business Strategy in order to make it a Motivating Force in all HR Policies, Plans and Actions. The changing ambience also calls for HRM to be business-driven, so as to be able to provide Value-Added Services to the organization. Once, a carefully defined HR Strategy exists at the Top, the tone is set for harmonizing HR Planning with Corporate Planning. Therefore, the Key Areas of HRM like Acquisition, Assigning, Rewarding as well as Developing are duly linked to the Corporate Plan of the business. On the other hand, Organisational Culture, Employees Resourcing, Compensation and Development for the Success of the Organisation are linked to Strategic HRM.

What Human Resource Management is all about and What does it deal with?

HRM is a new approach to managing people in any organization, where people are considered to be the key Resources. HRM is concerned with the People Dimension in the Management of an organization. (3)

Since an organization is a body of people, the acquisition, development of skills, motivation of higher level of attainments as well as ensuring maintenance of their levels of commitment are all significant activities.

All the above activities fall in the domain of HRM. Whether the organization is Private or Government HRM is one of the Key Functions of Management engaged in furtherance of Organizational Goals. This premise [principle] holds good for all types of organizations. An organisation is known by the type of people it employs. Thus, an organisation which acquires competent/potentially competent personnel and stimulates them to higher levels of performance and also develop their skills, is the one which proves to be effective. Thus, HRM is a process which consists of 4 main activities. They are: 1 Acquisition 2 Development 3 Motivation, and 4 Maintenance of HRs. HRM underscores the NEED for Communication, with all Concerned. HRM focusses on the involvement of people in the day-today activities as a measure for development of commitment. (4)

HRM helps in the development of a sense of purpose for the orgn. as well as identification with the organization. The above said points are the HALLMARKS for the success of an organisation.

CONTEMPORARY HRM

Contemporary HRM, as a part and parcel of Management Function, underscores Strategic Approach to Management in the areas of Acquisition, Motivation and Management of people.

ORIGIN/EVOLUTION

HRM derives its origin from the practices of the earliest Personnel Management. HRM leverages [influence, power, force, control, pull, weight] setting up the system and procedures for ensuring efficiency, controlling and providing equality of opportunities for all working for the overall development of the organization.

Personnel Management had its origin in the late 19th Century in UK with the concept of Welfare of Personnel which was practiced by erstwhile well known Business Families (Quaker Tradition). (eg.) Seebhom Rowntree and Cadbury

They were philanthropists in their approach to deal with their Factory Workers. (5)

The Quaker Tradition believed in taking welfare measures for the Betterment of Workers. This approach had yielded high output.

The Welfare Concept was continued to be practiced until II World War and beyond, the concept of provision of Canteen Facilities, Health Scheme for Workers and Creche for the Children.

Even today, these facilities have been provided in the Labour Legislation i.e. Factory Act, 1948 in India.

The next phase was development of Personnel Administration, with the emphasis on Recruitment, Payment Systems, Discipline, Training, Timekeeping and Personnel Record-Keeping. This period had witnessed growth in the size of Business Organisation and Development of Personnel Administration. In the Post-Second World War Period i.e. upto 1950s, the Scope of Personnel Management was extended to Salary Administration, Industrial Relations and Training. Increase in the size of the organisation enabled employers to initiate change in the practices in Industrial Relations. (i.e) Collective Bargaining Practices, Industrial Relations. Induction of Specialists in

1960s to 70s was the period for expansion of Personnel Management activities. (6)

Emergence of Trade Unions in UK and India. Trade Unions Bargaining Powers were conspicuous at workplaces for their influences on Management in dealing with the labour.

Specialists in Industrial Relations had to act as a bridge (an important as well as delicate role to play) to maintain a balance between Labour and Management. During this period, Personnel Management was acknowledged as an Essential Function of Management. Demand for Specialists in Negotiation Skills and Knowledge of different kinds of Remuneration System had increased in this period. 1980s witnessed Personnel Management entering into Entrepreneurial phase, otherwise called as Enterprise Culture. During this period, Personnel Managers had involved in the issues related to future directions.

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PERSONNEL FUNCTIONS IN INDIA

Personnel Function came into being as a necessity to look after the interest of the people, their welfare and happiness.

The First Royal Commission had recommended appointment of Labour officers in the Industry.

In 1931, the Commission had recommended appointment of Labour Officers for protecting the Workers from exploitation due to jobbing and indebtedness and to act as a Spokesperson for the Labour Force, besides promoting a cohesive relationship between Labour and Management. The Bombay Mill Owners Association had appointed Labour Officers during 1931 due to pressure of time for settling Worksmens Grievances and Disputes. Likewise, on the direction of the Jute Mills Association, Jute Mills in West Bengal also appointed Labour Officers who were engaged in promoting Labour Welfare and allied activities. The Textile Industry was the next to appoint Personnel Officers who looked after recruitment and settlement of grievances. Personnel Officers functioned as Industrial Relations Officers dealing with grievances, focusing attention on how disputes were to be prevented. During this period, Social Reforms Movement of the time brought to fore the public concern for improving Labour Administration. After independency in 1947, India had faced a Joint Partnership Approach in the Management of an industry.

Thus, Industry was termed as the Modern Temple of India.


Great significance was attached to the Labour Management by passing the Factories Act, 1948, which made obligatory for employers to appoint Welfare Officers in the organizations which have engaged 50 or more workers.

Presently, as per Factories Act, if any Company/Industry having more than 500 employees, it is mandatory to have a Welfare Officer. If any Industry is having more than 250 Women Employee, then the Welfare Officer must be a Female. Masters of Social Work Graduates are preferred or MA Specialized in Sociology can be also appointed as Welfare Officer. Similarly, the Industrial Dispute Act, 1947, laid down the procedure for Settlement of Disputes. To appoint/implement the provisions of this Act, the Industry needed qualified people with a Master Degree in Labour and/or Social Welfare [MSW] to deal with the grievances and disputes. Universities taught Diploma in Labour and Social Welfare Programmes. Other basic Industries like Coal, Steel, or Mines also employed, according to their need, Labour Welfare Officers with MSW Qualifications. This period gave higher importance to Man-Management Relations and XLRI and IIMs came into existence. XLRI started offering Master Degree in Personnel Management & Industrial Relations [PM&IRs]Programme.

At this stage, the term Labour Management was transferred to Personnel Management.

Labour Productivity became the Focus of Attention.

Study of Industrial Psychology and Sociology and Humanities became very relevant to Industry and Labour. Institutes like Indian Society for Applied Behavioural Science [ISABS], as the Prime Body of Professionals in Behavioural Sciences came into existence in 1972.

Indian Society for Industry and Social Development was established in 1975. Institute of Personnel Management [IPM] was established in Calcutta. In 1980s, Employers tend to recruit only the number of employees who were absolutely needed for the industry, so that optimum use of the Manpower employed. Attention was given to Training & Development which is a significant branch of Personnel/HRM in the country. Demand for Personnel/Human Resources Specialists got increased in the industry and other organizations, with the rising complexity in Managing People.

It became the necessity for the employers to keep the workforce satisfied for improving the productivity and eliminating the loss of man-hours whether due to work stoppages of any kind or even due to accidents. Development of Service Industry like Hotels, Tourism, Education and Entertainment etc. had also resulted in the demand for trained Personnel/HR Managers.

Later on, with the entry of MNCs, the demand for experienced Personnel/HR Professionals has become manifold. This has resulted into intense competition for Indian Industry and CEOs were attaching more importance to People Management.

Thus People Power being considered the Fountainhead of all ideas and organizations was making better use of Human Resources for Competitive Advantage. In the wake of emergence of Global Economy, Indian Labour Legislations viz. Industrial Disputes Act, Factories Act, Bonus Act, EPF Act, Wages Act, Trade Union Act etc. stood outdated and needed immediate revival/amendments. Some modifications suggested in respect of Trade Union[s] were: One Union for One Industry. Recognition of Trade Unions. Method of Election of Office Bearers Interference of Politics into Trade Unions etc.

Now, the Indian Market has been exposed to Global Market System, with the advent of Liberalisation, Privatisation and Globalisation. With the opening up of Global Market, new demands have arisen for newer skills/knowledge, especially in the field of IT/ITES. IT/Software/Service Industries have started recruiting experts with High Literacy in HR Field. Many Technological Giants like TISCO, TCS, HUL, Mittal Groups, Reliance etc. have taken a fresh look at the Management of Managers. A STATEMENT OF HINDUSTAN UNILEVER LIMITED:

A statement of the HUL read that a Fresh is no longer called a Management Trainees on joining HUL. There is a fancy Tag awaiting him BUSINESS LEADER, which implies that bigger responsibilities await him and will be offered to him quicker than in

15 years - that is the period of time and experience one is presently supposed to invest in service in HUL before promotion as Profit Centre Head. The Management Training Programme of HUL has been redesigned into BUSINESS LEADERSHIP PROGRAMME [BLP] with the objective of growing Business Leaders to match the needs of Business expansion in pursuance of what is termed as PROJECT MILLENNIUM. In brief, HUL has begun the process of building leaders. The Company plans to give exposure to the Trainees to develop as Business Leaders by the time they are in their 30s. The BLP accelerates learning and provides a Global Mindset to the Trainees. It enables functional excellence, besides making each Trainee Working on Cross-Functional Projects. Likewise, J.J. Irani, the Former CEO of TISCO made a Statement as a part of the Re-structuring Exercise of the Company at that time. Mr. Irani said that the Trainees would no longer be working under the Grey-Haired Superiors. In other words, a lot of opportunities would be given to Fresh Trainees on induction into the company.

EMERGENCE OF HRM
The First sign of Fundamental Change in the nature of Personnel Management activities came into existence around early 1980s.

In the early 1990s, saw the changes in emphasis with focus on the Spirit of Consent as well as Value of Teamwork. A certain amount of flexibility in hours of work was expected. The employees were expected to do multi-faceted work. Accordingly, they were remunerated at Market Rates. Simultaneously, Contract Work also got momentum and so the number of Contract Workers with the kinds of Part-Time, Full-Time, Fixed Contract etc. had emerged. A need for strategic approach to Human Resources Management in the context of Organisational Excellence was felt in the Corporate World. The factor responsible for emergence of Strategic Approach to HRM could be Emerging Challenges of European Market in managing the Human-related issues like Equal Opportunity, Workers Participation/Involvement in Management, Health and Safety Measures, Labour Mobility, Dealing with Union Representatives, Working Conditions etc.

DISTINCTIVE FEATURES OF PM/HRM


HRM is integrated with the Role of Line Managers and has a Firm Strategy towards business orientation. HRM is an Integrative Mechanism. It brings people-related issues in line with Business-related issues.

It focuses on Development.

Problem-solving,

Collaboration,

and

Employee

Thus, the Top Managements Role is much evident in HRM It highlights the considerable concern for development of Leadership, Vision, Creation of Commitment and Sustaining a Strong Proactive Work Culture compatible with Business Objectives. HRM underlines the need for strong Work-Culture with clarity in Organisational Values held by One-and-All and that it is a must for a Successful Organisation. Going by the above evolution, What are those factors which necessitated the emergence of HRM and its popularity on the Indian Scenario? The Factors are as follows: 1. Increased Competition 2. Emphasis on Quality in Staff, Goods and Services 3. Flexibility in Operations. 4. Advancement in Science & Technology, with special ref. to rapid advancement in Information Technology in all areas. 5. Willingness to adapt to changing Market Needs 6. Emergence of Global Market So, What is Management?

Management is the process of efficiently getting activities completed/ done with and through people. The Management Process includes the Planning, Organising, Leading, and Controlling that takes place to accomplish objectives. Indeed, any definition of Management should include 5 Common Factors Men, Machine, Materials, Money and Market. Then, What is Human Resource Management?

Human Resources Management is concerned with the PeopleCentric-Issues in Management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to High Levels of Performance and ensuring that they continue to maintain their commitment to the organization are the essential factors to achieving the Organisational Goals. Those organizations that are able to acquire, develop, stimulate and keep outstanding workers will be both effective and efficient.

Survival of an organization requires both the Managers and Workers to co-ordinate their efforts towards an ultimate goal.

IMPORTANT POINTS

The Roots of HRM go back to the pioneering work of Peter F. Drucker in 1950s. Drucker in the Practice of Management virtually invented MBOs. He wrote that an effective Management must direct the Vision and Effect of all Managers towards a Common Goal. This concept of visionary goal directed Leadership is fundamental to HRM. Thus, the Personnel Function in India has grown through Several Stages e.g. Labour Welfare, Industrial Relations, Labour Administration, Personnel Management and finally to Human Resources Management, Human Relations and Human Resources Development.

CONCEPT OF HRM
WHAT ARE THE VARIOUS CONCEPTS OF HRM? VARIOUS CONCEPTS OF HRM: 1. 2. 3. 4. 5. 6. 7. The Commodity Concept The Factor of Production Concept The Paternalistic Concept The Humanatarian Concept The Behavioural Human Resources Concept The Emerging Concept Conclusion.

1. The Commodity Concept: Before the Industrial Relations, the Guild System was the beginning of the Personnel Management. Guild System was a closely knit group concerned with selecting, training, rewarding and maintaining workers. Industrial Revolution gave rise to the factory system. Due to the separation of owners from Managers, close relationships between owner and employees were broken. Labourers began to be considered a commodity to be bought and sold.

2. The Factor of Production Concept:

Under this concept, employees were considered to be a Factor of Production just like Land, Materials, and Machinery.

Taylors Scientific Management stressed proper selection and training of employees so as to maximize productivity. The employees were treated primarily as operating organizations of machines or as mere appendage in the process of production. However, their concept was an improvement in so far as the employees gained through better working conditions and higher earnings were concerned.

3. The Paternalistic Concept: Employees organized together on the basis of their lot. The growing strength of democracy gave impetus to Collective Bargaining. The State also recognized that workers had a Right to Protection in the employment. Due to all those forces, employers began to provide schemes to workers. Employers assumed a fatherly and protective attitude towards their employees. The Welfare Schemes included Health Facilities, Recreation Facilities, Pension Plans, Group Insurance Schemes, Canteen Facilities, Creche Facilities etc. Employers and employees both began to realize that they cannot survive and prosper without co-operation of each other. 4. The Humanitarian Concept: Under the Paternalistic Approach, the employer was providing benefits to employees as a favour. The Humanitarian Approach is based on the belief that employees had certain inalienable rights as Human Beings, as it was the duty of the employer to protect these rights.

The Industrial Psychologists pointed out that an employee was not merely interested in material rewards. Rather, Social and Pychological satisfaction was also equally important. Hawthorne Experiments generated considerable interest in human problems of the work place. This approach is also known, therefore, as Human Relations Approach. 5. The Behavioural Human Resources Concept: Several studies were conducted to analyse and understand Human Behaviour in organizations. These studies led to the application of Behavioural Sciences to the problems of individual and group behaviour at work. Motivation, Group Dynamics, Organisational Climate, Organisational Climate, Organisational Conflict etc. became popular Concepts. Employees began to be considered as Valuable Assets of the Organisations. Effots were made to integrate employees with the organization, so that organizational goals and employees aspirations could be achieved simultaneously. Focus shifted towards Management Practices like 2-Way Communication, MBO, Role of Informal Groups, Quality Circles etc.

6. The Emerging Concept: Now, employees were considered as Partners of the organization/ industry. They were gradually being given share/importance in Companies Stock Membership [ESOPS]. Workers Representatives were being appointed on the Board of Directors. This emerging trend is aimed at creating a feeling among workers that the organization in their own. Slowly but steadily, Human Resources Management has emerged as a Special Academic Discipline and as a Profession. It is growing as a career with distinct specializations like Human Resources Development, Industrial Relations etc. 7. Conclusion:

Thus, Personnel Management began as a Record-Keeping Function.

Later on, Administration of Labour Agreements became its main task. Thus, it became the Corporate Conscience Keeper concerned with the Morale of Employees. After sometime, the focus shifted to Scientific aspect involving use of Systematic Techniques for Employees Selection, Training, and Compensation.

Under the Traditional Approach, Employees were considered as Problems, Procedures and Costs.

The Modern Approach, on the other hand, looks upon them as a Resource, as an Asset and an Opportunity. @@@@@@@@@@@@@@@

OBJECTIVES OF PM/HRM
1. To increase the welfare of Human resources.

2. To establish harmonious relations between Labour and Capital.

3. To arrange effective communications with employees.

4. To develop the employees in all aspects

5. Other objective, as may be laid out by the individual corporate.

1) To increase the welfare of Human Resources:

PM/HRM is to increase the welfare of workers and employees engaged in an enterprise; Best working conditions should be provided and many other welfare programmes must be lauched so that employees may get the facilities of health and recreation.

2) To Establish Harmonious Relations between Labour and Capital:

The objective of PM/HRM is to establish harmonious and friendly relations between Labour and Capital in the enterprise. The Philosophy of Modern management is that the contribution of Labour is not less important than that of the Capital. Managers realize that they cannot make the best use of capital without co-operation of the Labour. Therefore, it stresses upon the development of trust and faith between employees and employers.

3) To arrange effective Communication with employees:

Another very important object of Personnel Management/HR is to maintain effective Communication with employees, so that orders and directions of management may be passed to the employees and the problems and grievances of workers may be communicated to the Management.

4) To develop the employees:

The object of PM/HRM is the development of employees working is an enterprise. Employees are provided the facilities of Training with live practicals, so that efficiency and ability of the employees may be improved to the desired level. Ways should be paved for improving their E.Qs. Also in their relevant discipline. 5) Other Objectives: To arrange for the sufficient number of efficient capable employees in all the departments and at all the levels of Management. To motivated the employees, so that the productivity of enterprise may be increased. To increase the morale of employees, To provide best working conditions to the employees, so that they may complete their work in the most efficient manner.

NATURE/FEATURE/CHARACTERISTICS OF PERSONNEL MANAGEMENT/HRM


It is a continuous function. It cannot be turned on and off like water from a facet. It cannot be practiced for only one hour each day or one day a week. It requires a constant alertness and awareness of Human relations and their importance in every day organization. It is concerned with managing people at work. It covers all types of personnel. Personnel work may take different shapes and forms at each level in the organizational hierarchy, but the basic objectives, achieving organizational effectiveness through effective and efficient utilization of HRs, remains the same.

It is basically a method of developing It is conscious of its social obligations towards society in general and to employees in particular. It is concerned with the development of knowledge. Capabilities, Skills, Potentialities and attaining/achieving Employees Goals, including Job Satisfaction.

It is concerned with the employees both as individuals and as group in attaining goals.

It is also concerned with the behavior, emotional and social aspects of personnel.

Every person is an organization is involved with personal decisions. o (e.g.) All Managers in any organization need to know how to train their employees appraise their employees performance and tap their resources. Similarly, Non-Managerial employees are exposed to performance ratings, selection-interviews when hired and so on.

Thus, whether or not individuals plan to go into personnel work. They become involved with Personnel decisions.

SCOPE OF PERSONNEL MANAGEMENT/HRM

The Scope of PM/HRM has changed considerably in the last decade or so.

The changes have resulted into treating/giving more priority for Human Beings as Assets of the organization rather than mere workers/employees.

It is not only limited to procurement and taking work from the employees, but it has a broad connotation and functions starting from

Manpower Planning, Recruitment, Selection, Training & Development, Developing Human Relations, Compensating and doing other allied functions as well.

Strauss and Sayles defined the Scope of HRM, as follows: Deeping records of the Personnel Welfare Programmes Recruitment of workforce Selection and Placement Public Relations. Training and Educational Programmes Safety, Inspection and Control Analysis, description and Evolutions of work Personnel Appraisal and Development Compensation and Schemes of Appraisal work, and Labour Relations.

IIMs have included the following functions in the Scope of HRM:

Mutual Settlement of Industrial Disputes and maintenance of good Industrial Relations.

Labour Requirement, Selection, Test and their best utilization.

Condition of Working, Remuneration System, Management of Workforce and Labour Services and Convenience.

SIGNIFICANCE/ IMPORTANCE OF HRM


1. Importance for individual Enterprises. 2. Professional Importance. 3. Social Importance. 1. Importance For individual enterprise:

Securing willing co-operation of the employees for achieving goals of the enterprise and fulfilling their own social and psychological needs and recognition of Love Affection, Belongingness, Esteem and SelfActualization.

Creating right attitude among the employees through effective motivation. Utilizing effectively the available HRs. 2. Professional Importance: Providing maximum opportunities for personnel development.

Providing healthy relationship between different work groups so that work is effectively performed. Correcting the errors of wrong postings and proper reallocation of work. Maintaining the dignity of the employees as a human being. Improving the employees working skill and capacity. 3. Social Importance: 1. Providing suitable and most productive employment which might loving them psychological satisfaction. 2. By helping people to make their own decision. 3. Making maximum utilization of the resources in an effective manner and pay the employee a reasonable compensation in proportion to the contribution made lay him. 4. Maintaining a balance between the jobs available.

CHANGING ROLE OF PERSONNEL MANAGEMENT (OR) REASONS FOR GROWTH OF PM/HRM IN INDIA

Since the turns of 80s Personnel Management [PM] in India had undergone several changes that made to turn PM into HRM due to certain factors which were due to certain factors which were responsible for this change.

The origin and growth of HRM is due to the following factors:Changing Role of Employees. 2. Change in Management Attitude. 3. Social and Cultural Changes 4. Changing Role of Govt. and Labour Relation.
1.

1. Changing role of Employees: Previously the relationship between the management and the employees were those of Master and Servants But, more the employee feel that they are equal partners in industry and should be treated as human being/assets. 2. Change in Management Attitude: Formerly the labour was a factor of production and was handled like other technical and economic resources.

But, In the early 20th century employees began to be recognized as human beings and therefore, recreational, insurance, brings benefits and other plans and social security programmes were planned with the passage of time.

Employees became mature and they were accepted lay the management as collaborations. Rule of thumb was replaced by scientific approach to problem solving by management. 3. Social and Cultural Changes:

These changes have brought about the striking changes in the attitudes and actions of employees and their families. These changes have been the result of changes in knowledge, beliefs, moral, laws, language values and norms of individual as members of the society. A close relationship exists family background. between ones values and judgment and

A longer proportions of the population is now exposed to education. The increased knowledge has raised the productivity to employees and enhanced their earning capacity. Increased education has led to high mobility and therefore a high turnover. 4. Changing Role of Govt. and Labour Relations: Earlier the attitude of govt. towards labour problems was apathetic.

Frequent Strikes and Lock-outs, Public Concern for Sweated Labour have all led to the enactment of various Protective Laws pertaining to the Conditions of Labour, Industrial Safety, Industrial Disputes, Payment of Wages, Compensation etc. and laws which ensure equal opportunities for employment irrespective of caste, colour and creed.

Personnel Policies: Procedures & Programmes


Define Personnel Policy/HR Policy:

The entire Management Progammes revolves around Management Policy.

According to Flippo, A Policy is a Man-made Rule of Pre-determined course of action that is established to guide the performance of work towards the organizational goals/objectives.

The above definitions provide the general principles for guidelines and specify the broad strategies to be implemented by employing particulars tactics.

Dale Yoder says - A Policy is a Policy determined selected course established as guidelines towards the attainment of accepted goals and objectives. From the above definition, it represents a network of selection courses and intentions and facilitate delegation to lower levels, limiting the range of individual decisions. However going by Flippos definitions one could observe that personnel of labour of Industrial relations policy provides guidelines for a wide variety of employment relationship in the organization. These guidelines identify the organizations intentions in Recruitment Selection, Promotion, Development, Compensation, Organization, Motivation and otherwise leading and directing the people with working organisation. Thus, Personnel Policies serve as a Road map for Managers.

NEED AND IMPORTANCE OF PERSONNEL/ HR POLICY

The continuity of policies promotes stability in an organization.

Because of Policy a certainty of action is assured, even though the Top Management Personnel may change.

Established and sound Policies help to build employees enthusiasm and loyalty.

Policies are control guides for delegated decision-making. They seek to ensure consistency and uniformity in decision on problems that recur frequently and under similar, but not identical circumstances. Established policies ensure consistent treatment of all personnel throughout an organization, so that favoritism and discrimination are thereby minimized.

Policy specifies routes towards selected goals.

Policies are the standards for measuring and evaluation performance.

of

Policy sets patterns of behavior and permit participants of plan with a greater degree of confidence.

SCOPE OF COVERAGE OF PERSONNEL/HR POLICY


Coverage of HR/Personnel Policy:
a)

Employment:

Minimum hiring qualifications. Preferred source of recruitment. Reliance on various selection devices such as tests and interviews
b)

Development: Opportunities for promotion. Bases for training. Type of training viz on-the-job of off-the-job. Programmes for executive development.

c) Compensation: Minimum wages. Non-monetary rewards Profit-sharing and incentive plans d) Integration: Handling of grievances Recognition of Labour Unions Workers Participation in Management. e) Working conditions & motivation: Welfare Measures Safety Programmes. f) Employees Service: Types of employees services

Financing of employees services. Incentives to motivate different categories of personnel. Procedure for Policy Formation: The procedure for policy formation involves the following steps: Step1: Initiating Policy Step2: Uncovering the facts of Personnel Department. Step3: Rutting sown the policy in writing. Step4: Explaining and discussing the proposed policy with members of the organization. Step5: Adopting and Launching it . Step6: Communicating to the employees at the levels. Step7: Administering it Step8: Initiating follow-up action on it. Step9: Evaluating it. Step10: Restarting or Reformulating the policy. The authority for formulating the Personnel Policy must come from Top Management.

The responsibility of implementation rests with the line management at all levels of the Departmental Head and that of administration of dayto-day matters with the Lower Level of Management.

The responsibility for assessment, review and follow-up action should be with the Personnel Department.

Problems of HRM

Difficulty in identifying the people, use right kind/system of recruitment techniques and sources.
1.

Difficulty in identifying the right kind of Selection Tests, Interview etc.


2.

3. Difficulty in convincing the employees to accept the ratings of performance appraisal, accept the purpose and outcome of performance and/or potential appraisal. 4. Difficulty in motivating the employees to undergo training seriously and apply the knowledge/skills acquired on the job. 5. Difficulty in changing the behavior of employees in accordance with the required behavior of the organization. 6. Difficulty in formulating a wage/salary policy acceptable to all employees, trade unions and management.
7. 8.

Dissatisfaction of employees regarding promotions and transfers.

Employees reluctance to accept disciplinary rules of the company. 9. Employees grievances and inability of Management to redress all grievances.

Is HRM a Profession or Not? Or Equate HRM to a Profession.

With the passage of time, HRM has emerged as a distinct discipline. Before analyzing whether it is a profession or not, it is necessary to identify the essential attributes of a professions.

Characteristics of a Profession: The main characteristics of a profession are as follows: A specific body of organized and systematized knowledge. Prescribed academic qualification for entry into the profession. Formal methods of Training. Existence of a representative professional association. Changing of fees based on service rather than monetary gain. Continuous drive for progress through members towards desired goals. Training for practice of a profession is intellectual in character. It is pursued not for ones own sake but for others. Members of a profession have a sense of Common identity and purpose. Formal education and training is essential for acquiring the prescribed academic qualifications. Chartered Accounting, Company Secretary ship, Law and Medicine or main professions. HRM contains a recognized body of knowledge gathered form Literature and Research.

It also has a Professional body. The National Institutional of Personnel Management (NIPM) later on the service motive or social responsibility of HRM was being increasingly recognized. The HRM has developed a code of ethics for its members. Another Body is also known as National HRD with its various chapter, Zone wise. This body has also developed a code of ethics for its members. No definite academic qualifications have been prescribed so far for entry into HRM function except for welfare officers under the Factories Act. Trade Unionism, Labour Legislation, and other environmental changes have gradually enabled HR experts to expand their role and enhance their status. National Institute of Personnel Management [NIPM] conduct Preentry and Post-entry Training Programmes. But both the Bodies are organizing Seminars, Workshops and Conferences to up-date the knowledge of its Members.

But both the Bodies are not conducting any course on HRM. They have no jurisdictions in limiting the entry of people into HRM. Even expulsion of Membership form NIPM or NHRD does not disqualify a person from entering into another body of HRM. NIPM/NHRD has no authority to morally bind its Members to the prescribed Code of Ethics.

HRM has, no doubt, acquired some of the attributes of a profession.

But it has only recently emerged as full-fledged professions, but still its ambit is widening day-by-day.

Personnel Management can achieve professionalization.

It should seek professional status through performance, based on progressive outlook, attitude and practice. Minimum educational qualifications and standards of performance should be laid down. minimum desirable

From the above, it is very clear that HRM has become a profession.

FUNCTIONS OF HRM/PM
Introduction: The Personnel Manager has to perform the Managerial Functions such as Planning organizing, Directing, Motivating and Controlling personnel working in his department. In addition to usual Managerial functions he has also Operative Function in the personnel field covering the entire enterprise.

The Operative Functions are Procurement Development

Compensation Integration and Maintenance.

FUNCTIONS OF PM/HRM
Functions of PM/HRM

Managerial Functions

Operative Functions

1. 2. 3. 4. 5.

Planning Organizing Directing Motivating Controlling

1. Procurement of Personnel 2. Development of Personnel 3. Compensation of Personnel 4. Integrations 5. Maintenance 6. Quality of Work Life 7. H.R.I.S.

Managerial Functions: 1. Planning:

Planning is deciding in advance as to what to do in future.

In the content of HRM/PM, it is concerned with Manpower Planning, studying turn over rate, forecasting the future requirement of Personnel and Planning for Selection, Training and Development Procedures etc.

2. Organizing:

Organizing involves the establishment of inter-relationship within the organisation. It provides a structure for the company for identifying various subgroups headed by individuals in Managerial Jobs as well as Operative Jobs. 3. Directing:

Directing includes instructions to workers developing Communication Network, Interpreting various Industrial Laws and Integrating Workers.

4. Motivating:

Motivating Functions involve motivation of employees through financial and non-financial incentives to increase productivity.

5. Controlling:

Personnel Department provides basic data for establishing standards, makes Job Analysis and Performance Appraisal etc.

Operative Functions:

1. Procurement of Personnel:

It covers a Human Resource Planning and Forecasting and the Process of Recruitment, Selection, Placement and Induction of newly appointed employees.

2. Development of Personnel: Development of Workers and Managers demand systematic programmes for employees training and management development. Programmes of Performance Appraisal, Promotion, Transfers etc. are also included under this function. Development function yields synergic effect [i.e. 2 + 2 = 5]. 3. Compensation of Personnel: Equitable remuneration in the form of Wages, Salaries, Bonus etc. assume greater significance as Compensation is the main Motivator, because, our wants are satisfied with the help of money in the Market for Goods and Services. Economic Compensation involves varied and complex problems. It governs Labour-Management Relations. 4. Integration: Individual, social and organizational goals and interest are diverse and conflicting.

They have to be recognized, reconciled and properly co-ordinated or integrated. Then only employees can offer their willing co-operation for united and joint enterprise. Democratic Management reduces conflicts and assures effective morale and motivation. 5. Maintenance: It covers personnel activities relating to Employees Health and Safety, Favourable Work Environment/Climate, Employee Benefits and Services, Labour Welfare Activities, Workers Participation in Management etc. 6. Quality of Work Life: Employees usually have monotonous tasks and have less chances for promotion or change. In most of the countries, many employees formed Trade Unions. In order to maintain their work commitment and motivation, the organization must provide some welfare benefits such as Medical Insurance, Disability Insurance and Holidays and Vacations.

Generally, the Quality of Work Life Programmes focus on the environment within the organization and include basic physical concern, such as Heating and Air-conditioning, Lighting and Safety Precautions, Additional Physical Amenities such as Food and Beverage Facilities, Recreations and Aesthetics, Psychological and Motivational factors such as Flexible Work Hours, Freedom to suggest

changes or improvements, Challenging Work and varying degrees of Autonomy. HRM mainly focus on employees welfare and Quality of Work Life by continually examining employees needs and meeting them to the extent feasible. Job Enrichment Programmes, Educational Subsidies, Recreational Activities, Health and Medical Benefits and the like generating a sense of belongingness that benefits the organization in the long run. 7. HRIS:

The various types of information about employees should be stored in a Central Human Resources Data Bank i.e. Computer.

This includes all basic information about each employee, Training Programmes Attended, Performance Records, Potential Appraisals, Accomplishment etc. This Data is utilized whenever there is a need to identify employee for consideration for Special Projects, Additional Training or Higher Level Jobs.

ROLE OF HRM IN THE INDIAN INDUSTRY Role of HRM:

1. Policy Formulation 2. Advising 3. Assistance and Service 4. Monitoring and Control. 1. Policy Formulation: HR Department initiates and formulates New HR Policies and revises the existing policies.

The Department prepares programmes concerning Recruitment, Selection, Training, Appraisal etc. of employees in consultation with other Departments.

HRM Departments assists and counsels other Departments in Policy formulation. 2. Advising: As a Specialist, the HRM Department advises all other Departments in areas relating to the Management of Human Resources, Industrial Relations etc. The Department acts in the Advisory Capacity offering suggestions. It serves as a Change Agent and Consultant in the development of the total organization.

It facilitates Management Development and Organisation Development. 3. Assistant and Service: HRM Department provides information and infrastructure. It renders Secretarial and Executive Support Services like Securing and Scrutinizing Applications, Conducting Tests and Interviews, Arranging Orientation and Training etc. In order to provide Expert Advice and Assistance, the HRM Department conducts Personnel Research and Maintains Personnel Records. It can help to develop collaboration between Management and Trade Union. 4. Monitoring & Control: HRM Department evaluates actual performance in the light of the established Personnel Policies and Procedures and suggests appropriate corrective actions wherever necessary/ required.

As a Controller, the Department continually reviews the work of Line Departments concerning Accidents, Grievances, Absenteeism, Labour Turnover, Disciplinary Action etc.

According to Earnest Dale, HRM/Personnel Management Department and other types of Staff Experts can acquire command in the following ways: 1. Superior Articulation: Personnel Staff can obtain acceptance of its divisions and achieve command by skill in persuading others. 2. Technical Competence: Line Managers do not possess Technical Knowledge and Skills in the matters like Staff Training, Safety, Quality Control etc. Therefore, they cannot dispute the Staff Decision in these matters.

3. Status:

If a Staff Expert [e.g. Personnel/HR Director is the Member of Board of Directors, Departmental Heads cannot take him lightly.

4. Sanction: When a Staff Expert is so influential as to cause demotion and removal of Line Executives, his advice is treated as an Order. 5. Default:

In situations where Line Executives take no action, staff may make decisions. Conclusion: Thus, HRM Department creates and maintains the environment in which employees can work effectively and efficiently to accomplish organizational goals and at the same time satisfy their personal needs as well.
DIFFERENCE BETWEEN PERSONNEL MANAGEMENT [PM] AND HUMAN RESOURCES MANAGEMENT [HRM] Some experts assert that there is no difference between human resources and personnel management. They state that the two terms can be used interchangeably, with no difference in meaning. In fact, the terms are often used interchangeably help-wanted ads and job descriptions. Personnel management is molre administrative in nature, dealing with payroll, complying with employment law, and handling related tasks. Human resources, on the other hand, is responsible for managing a workforce as one of the prima4ry resources that contributes to the success of an organization. Human resources is described as much broader in scope than personnel management.

Human Resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency. Personnel Management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. Human Resources involves ongoing strategies to manage and develop an organizations workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a companys workforce. Personnel Management is often considered an independent function of an organization. Human Resource Management, on the other hand, tends to be an integral part of overall company function. Personnel Management, is typically the sole responsibility of an organizations personnel department. With Human Resources, all of an organizations and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks.

Personnel Management typically seeks to motivate employees with such things as comp0ersation, bonuses, rewards, and the simplification of work responsibilities. From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance. Human Resource Managemnt holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for meeting challenges, and hob creativity are seen as the primary motivators. When looking for a hob in Personnel Management or human resources, it is important to realize that many companies use the terms interchangeably. If you are offered a job as a personnel manager, you may be required to perform the same duties as a human resource manager, and vice versa. In some companies, a distinction is made, but the difference is very subtle. DIFFERENCE BETWEEN PM AND HRM ARTICLE-2: There is not a really big difference between Human Resource Management and Personnel Management, in actual fact Human Resource have largely replaced the term Personnel Management.

Human Resource Management is basically much broader in scope than Personnel Mangement. Human Resource Management could be described in two ways. Strategic and Proactive. The reason being that the strategies are ongoing and they constantly work towards managing and developing an organization workforce. It can be seen as Proactive because of their continuous development and functions to improve the companys workforce. Human Resource Management is the type of Management where almost everybody in Managing Position can play a part in Training and Development. They aim to have many different Managers in various departments with the necessary skills to handle employee tasks at hand. Personnel Management can be described as reactive. The reason is, because of the way they operate. An example of this would be that5 they respond to demands and concerns as they are presented.\ Personnel Management could also be seen as an independent way of managing. It is a sole responsibility of the organization. When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management.

Human Resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency. Personnel management can include administrative tasks that are both raditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. Human Resource involves ongoing strategies to manage and develop an organisations workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a companys workforce. Personnel management is often conside4red and independent function of an organization. Human Resource Management, on the other hand, tends to be an integral part of overall company function. Personnel Management is typically the sole responsibility of an organisations personnel department. With human resources, all of an organisations managers are often involved in some manner, and a chief goal may be to have mangers of various department develop the skills necessary to handle personnelrelated tasks.

COMPARISON OF PM, HRM AND HRD PERSONNEL MANAGEMENT [PM]: E. Flippo defines Personnel Management as that of Planning, Organising, Directing, Controlling of the Procurement, Development, Compensation, Integration, Maintenance and Separation of Human Resources to the end that individual, organizational and societal objectives are accomplished in the long run.

HUMAN RESOURCES MANAGEMENT [HRM]: Buyers and Rue defines that HRM encompasses those activities that are designed to provide for and Co-ordinate the Human Resources of an Organisation. HUMAN RESOURCES DEVELOPMENT [HRD]: According to Leonard Nadler, HRD means those learning experience which are organized for a specific time and designed to bring about the possibility of behavioural changes.

ROLE OF HR MANAGER IN AN ORGANISATION The Role of HR Manager can be described as follows: 1. As a Specialist 2. As an Information Source

3. As a Change Agent 4. As a Controller 5. As a Liaison Officer 6. As a House-Keeper 7. As a Fire-Fighter


1. As a Specialist: Human Resources Manager, being the Specialist in HR Field offers advices to the heads of different Financial Departments on various aspects of Human Resources Management. These include HRP, Recruitment, Selections, Orientation, Training, Appraisal, Compensation etc. The HR Manager should provide information in such a way he is considered as a source of help rathern than a source of threat to line managers. He should earn their confidence and goodwill.

2. As an Information Source:

The HR Manager should provide valuable & latest information about labour Market, labour laws and other Statutory Requirements to the top Management.

This is required for formulation of proper policies and procedures about human resources.

He should serve as a record-keeping officer and a researcher to provide required information.

3. As a Change Agent:

HRM can act as an Internal Change Agent to initiate and Spearhead necessary improvements in HR Practices.

As a Consultant, he can provide necessary infrastructure and support for organizational development. He helps in introducing and implementing major institutional changes in the organization. He should act as an Innovator in the Personnel matters. To be an effective Consultant, the Human Resource Managers should be familiar with the needs and the changing ambience of the organization with special reference to Human Resources.

4. As a Controller:

The HR Manager assists the line managers in effective implementation of HR Policies and Programmes.

His advice and service is very much essential for monitoring and controlling the progress. Being the arm of Top Management, the HR Manger should ensure that the Personnel Policies and Procedures approved and adopted by the Management are being Consistently implemented in all the Departments of the organization. 5. As a Liaison Officer: Very often, the HR Manager is asked by the Top Management to act as a link-pin between/among different departments/divisions of the organization. 6. As a House-Keeper: The HR manager looks after the safety, health, welfare etc. of all the employees. 8. As a Fire-Fighter:

In Union- Management relations, the HR manager acts as a Shock-Absorber.

He is the Managements Defence against Trade Union activities.

In a nutshell, he should act as a Trouble-Shooter.

QUALITIES OF AN HR MANAGER 1. Impersonality. 2. Effective Communication/Communication Skills 3. Operational Ability 4. Mental Ability 5. Foresightedness 6. Good Personality 7. High Character 8. Creativity 9. Structure 10. Intuition 11. Knowledge 12. Commitment 13. Being Human 14. Versatility 15. Lightness 16. Discipline/Focus 17 Big Picture, Small Actions 18. Strategic Acumen 19. Sound organizational Skills 20. Negotiation Skills/ Expertise 21. Mentorship Role

Qualities of H.R.Manager
Introduction: As the Role of HRM/PM has been changed drastically over a period of time right from procurement of employees to induction in the appropriate job, besides Training and Developing together with the development Human Relations in the organization to achieve organizational goals/objectives, the qualities of a PM/HRM have been largely widened with the turn of 21st Century. These Qualities should have been in-built inherently in him/her or gained systematically to carry out his duties efficiently. These qualities are enshrined below:
1. IMPERSONALITY:

A PM/HRM must be totally free from bias of fear or favour. He must consider all the matters and find out alternatives as well on the basis of their merits. He should be known for Honesty, Integrity, Character, Justice and Fairplay.
2. EFFECTIVE COMMUNICATOR:

A PM/HRM is required to address several verbal and Written Communication to the employees working under his supervision. He should be able to communicate his ideas and

opinions effectively and clearly, so that all the employees may understand and implement the message.
3. OPERATIONAL ABILITY:

A PM/HRM must be a good leader and an organizer. He must be able in motivating others. He must have the ability of analyzing problems from every Angle.
4. MENTAL ABILITY:

A PM/HRM must have the mental ability of very high standard. He must be able to understand different types of people. He must possess immense tact, practical mind and cool temperament.
5. FORESIGHTEDNESS:

A PM/HRM must have foresightedness also. He must be able in predicting the problems of business in advance. He must be able in evaluating the merits and demerits of all the alternatives.
6. GOOD PERSONALITY:

The PM/HRM must possess attractive and effective personality. He must be trained in Behavioural Science so that he may predict and control the Human Behaviour. He must be capabale of getting the work done by others.
7. HIGH CHARACTER:

A PM/HRM must be having a very high character. He should not be cynical-minded. He should be optimistic in all his activities and endeavours. In a nutshell, he should be a Sincere, Honest and role model for other.

8. CREATIVITY:

Creativity is what separates competence from excellence. Creativity is the spark that propels forward and that captures peoples attention. Creativity is the ingredient that pulls the difference pieces together into a cohesive whole, adding zest and appeal in the process.
9. STRUCTURE:

The context and structure we work within always have a set of parameters, limitations and guidelines. A PM/HRM knows how to work within the structure and not let the structure impinge upon the process or the project. Know the structure intimately, so as to guide others to effectively work within the given parameters.

10. INTUITION:

Intuition is the capacity of knowing without the use of rational processes It is the comer stone of emotional intelligence. People with keen insight are often able to sense what others are feeling and thinking. Consequently, they are able to respond perfectly to another through their deeper understanding. The stronger ones intuitions, the Manager one will be.
11. KNOWLEDGE:

A through knowledge base is very much essential for a PM/HRM. The knowledge must be so ingrained and integrated into their being that they become transparent, focusing on the employee and what he needs to learn, versus focusing on the knowledge base. The excellent Manager (HR) lives from a knowledge base, without having to draw attention to it.
12. COMMITMENT:

A HR manager is committed to the success of the project and of all team members. He holds the vision for the collective team and moves the team closer to the end result.

It is the HR Managers Commitment that pulls the Team forward during trying times.
BEING HUMAN:

13.

Employees value leaders who are human and dont hide behind their authority. The best leaders are those who are not afraid to be themselves. Managers who respect and connect with others on a human level inspire great loyalty.
14. VERSATILITY:

Flexibility and versatility are the valuable qualities in a manager. Beneath the flexibility and versatility is an ability to be both non-reactive and not attached to how things have to be. Versatility implies an openness. This openness allows the leader to quickly change on a dime when necessary. Flexibility and versatility are the pathways to speedy responsiveness.
15. LIGHTNESS:

A HR Manager does not just produce outstanding results. He has a fun in the process. Lightness does not impede results but rather, helps to move the Team forward.

lightness complements the seriousness of the task at had as well as the resolve of the team, therefore contributing to strong team results and retentions.

16. DISCIPLINE/FOCUS:

discipline is the ability to choose and live from what one pays attention to. Discipline as self-mastery can be exhilarating. Role Model the ability to live from your intention consistently and you will role model an important leadership quality.
17. BIG PICTURE/SMALL ACTIONS:

Excellent Managers see the Big Picture concurrent with managing the details. Small actions lead to the Big Picture. The Excellent Manager is skillful in doing both. Think of big, while paying attention to the details.

18. STRATEGIC ACUMEN:

An HR Manager must possess sharp strategic acumen to devise an organizational roadmap with his colleagues and the HR Development Blueprints reflects Corporate Objectives and Long Term Goals.
19. SOUND ORGANISATIONAL SKILLS:

An HR Manager is the Key Liaison Officer between the Top Management and the Employees and extended Workforce of all Communication Skills to articulate the view points and issues of all Stakeholders, address crisis scenarios and foster thereof. In addition to his, an HR Manager should exhibit sound organizational skills to co-ordinate regular Training and Development Programmes, Systems, Technologies and Modules.
20. Negotiation Expertise:

An HR Manager has to communicate/negotiate with the external contractors and staffing agencies to ensure employee needs and screen candidates to Business Unit Managers, Supervisors and other Top Executives.
21. MENTORSHIP ROLE:

An HR Manager should support newly hired employees, empathize with the needs of experienced employees and other members of the organization.

CORPORATE QUALITIES OF PM/HRM 1. Leadership 2. Good Memory 3. Love for detail 4. Ability to Speak & Write well. 5. Ability to Understand people 6. Power to Persuade 7. Ability to Negotiate 8. Ability to make Decisions & Solve Problems 9. Co-ordination work with others 10. Assessing Situations 11. Explaining Issues 12. Answering Questions 13. Interviewing 14. Advising 15. Keeping Records 16. Gathering Information 17. Conducting Training for various Cadres @@@@@@@@@@

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