UNIT - 1 Introduction to Human Resource Management Meaning of Human Resource The human resource or the people at work are

considered the most vital resource in any organization. There is a growing tendency on the part of the academicians and the professional managers to view management as a process concerned basically with the management of people. Good management means getting effective results with people. The human resource or people at work of an organization consist of all individuals engaged in any of the organizational activities, regardless of levels. Definition of Human Resource Management Human resource management may be defined as that activity in an enterprise which strives to mould the human resources into an effective organization, provides opportunity for maximum individual contributions under healthy working conditions, promotes individual development and encourages mutual confidence and understanding between the employees and the employers and between the employees themselves. It is also concerned with development of individuals and achieving integration of goals of the organization and those of the individuals. Human resource management aims at achieving maximum contribution of individuals and groups working in the organization for the effective achievement of organization goals. Nature of Human resource management The essential features of human resource management are discussed below: 1. Concerned with human element- Human resource management deals with people at work. Its main object is to maintain better human relations in the organization by the development, application and evaluation of policies, procedures and programmes and evaluation of policies, procedures and programmes relating to the individuals in the organization to optimize their contribution towards the realization of organizational objectives.

2. Integral part of management- It is an integral part of the job of a manager. Every manager is concerned with the performance of personnel functions such as training, communication, appraisal and guidance. If a manager is weak in dealing with people, he cannot achieve the goals of the organization. Thus, every manager must posses human relations skills to get maximum cooperation of thw workers. 3. Wide range of activities- Human resource management involves several functions concerned with the management of people at work. It includes manpower planning, employment, placement, training, appraisal and compensation of employees.

4. Motivation of human resource- Human resource management is concerned with the motivation of human resource in the organization. The manager should give due attention to these factors to motivate people at work. They also require skills in training, performance appraisal, and counseling of subordinates.

5. Development of human resource- Human resource management is concerned with developing potential of employees so that they get maximum satisfaction from their work and give their best efforts to the organization. 6. Pervasive function- Human resource management is pervasive in nature. Since people are a necessary element in any organization, personnel management is inherent in all enterprises. 7. Continuous function- Personnel management is of a continuous nature. Every manager has to perform this function continuously. 8. Multidisciplinary approach- Human resource management is multidisciplinary in nature. Effective management of human resources involves application of knowledge drawn from several disciplines. 9. Service or staff function- Human resource management is a staff function that is responsible for offering advice on personnel matters to the operating or line departments. It also offers services like recruitment, training and rating of staff to the operating department.

Scope of Human Resource Management The human resource management model developed by the Americans society for training and development (ASTD) integrates the nine areas or sub systems of human resource management. These areas include the following: Training and Development Organisation Development Job Design Human Re source Planning Selection and Staffing Compensation/ Benefits Employee Assistance Labour Relations

Each area contributes to the human resource outputs: 1. Quality of work life, 2. Productivity and 3. Readiness of change. These are the 3 functional objectives which every manager must keep in mind while managing the human resources.

Functions of Human Resource Management The functions of human resource management can be broadly divided into two categories: 1. Managerial Functions 2. Operating Functions Manageial Functions Human resource manager performs the functions of planning, organizing, directing and controlling. (a) Planning- A plan is a predetermined course of action. Planning is the process of deciding the goals and formulating policies and programmes to achieve the goals. Planning involves forecasting and research. Human resource management involves forecasting needs for human resources, predicting trends in labour market, wages, union demands, etc. and their impact on the organization. Planning helps to face successfully the changes that are likely to take place in future. It bridges the gap between where we are and where we want to go. (b) Organising- In order to implement the plans, a sound organization structure is required. Organising is the process of allocating tasks among the members of the group, establishing authority- responsibility relationships among them and integrating their activities towards the common objectives. In this way, a structure of relationships among jobs, personnel and physical factors is developed. (c) Directing- Directing is the process of motivating, activating, leading and supervising people. Directing includes all those activities by which a manager influences the actions of subordinates. Directing is the heart of the management process because it is concerned with initiating action. It helps to secure the willing and effective cooperation of employees for attaining organizational goals. Directing also helps in building sound individual and human relations in the organization. (d) Controlling- It implies checking, verifying and regulating to ensure that everything occurs in conformity with the plans adopted and the instructions issued. Such monitoring helps to minimize the gap between desired results and actual performance. Controlling the management of human resources involves auditing training programmes, analyzing labour turnover records, directing morale surveys, conducting separation interviews and such other means. Operative Functions The operative or service functions of human resource management are the tasks which are entrusted to the human resource department. These functions are concerned with specific activities of procuring , developing, compensating and maintaining an efficient work force.

1. Procurement Function- It is concerned with securing and employing the right kind and proper number of people required to accomplish the organizational objectives. It consists of the following activities: (a) Job Analysis- It is the process of studying in detail the operations and responsibilities involved in a job so as to identify the nature and level of human resources required to perform the job effectively. Job descriptions and job specifications are prepared with the help of information provided by job analysis. (b) Human Resource Planning- It is the process of estimating the present and future manpower requirements of the organization, preparing inventory of present manpower and formulating action programmes to bridge the gaps in manpower. (c) Recruitment- It is the process of searching for required human resource and stimulating them to apply for jobs in the organization. A proper balance should be maintained between the internal and external sources of recruitment. (d) Selection- I t implies judging the suitability of different candidates for jobs in the organization and choosing the most appropriate people. (e) Placement- I t means assigning suitable jobs to the selected candidates so as to match employee qualifications with job requirements. (f) Induction or Orientation- It involves familiarizing the new employees with the company, the work environment and the existing employees so that the new people feel at home and can start work confidently.

2. Development Function- Human Resource Development is the process of improving the knowledge, skills, aptitudes and values of employees so that they can perform the present and future jobs more effectively. This function comprises the following activities: (a) Performance and potential appraisal- It implies systematic evaluation of employees with respect to their performance on the job and their potential for development. (b) Training- It is the process by which employees learn knowledge, skills and attitudes to further organizational and personal goals. (c) Executive Development- It is the process of developing managerial talent through appropriate programmes. (d) Career Planning and Development- It involves planning the career of employees and implementing career plans so as to fulfill the career aspirations of people. It involves mobility of human resource through promotions and transfers.

3. Compensation Function- It refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organization objectives. It consist of the following activities: (a) Job Evaluation- It is the process of determining the relative worth of a job. (b) Wage and salary administration- It implies developing and operating a suitable wage and salary programme. Surveys are conducted to determine wage and salary structure for various jobs in the organization. (c) Bonus- It involves payment of bonus under the payment of bonus act, 1965 as well as nonstatutory bonus and other incentives. 4. Maintenance Function- It is concerned with protecting and promoting the physical and mental health of employees. Fot this, several types of fringe benefits such as housing, medical aid, educational facilities, conveyance facilities, etc. are provided to employees. Social security measures like provident fund, pension, gratuity, maternity benefits, injury/disablement allowance, group insurance etc. are also arranged. Objectives of Human Resource Management Every organization has some objectives and every part of it should contribute directly or indirectly to the attainment of desired objectives. Objectives also provide benchmark or standards of evaluating performance. The objectives of human resource management can be summarized as follows: 1. To help the organization attain its goals by providing well trained and well motivated employees. 2. To employ the skills and knowledge of employees efficiently and effectively, i.e. to utilize human resources effectively. 3. To enhance job satisfaction and self actualization of employees by encouraging and assisting every employee to realize his/ her potential. 4. To establish and maintain productive, self respecting and internally satisfying working relationships among all the members of the organization. 5. To bring maximum individual development of members of the organization by providing opportunities for training. 6. To secure the integration of all the individuals and groups with the organization by reconciling individual/ group goals with those of an organization. 7. To develop and maintain a quality life which makes employment in the organization a desirable personal and social situation. 8. To maintain high morale and good human relations within the organization. 9. To help maintain ethical policies and behavior inside and outside the organization. 10. To manage change to the mutual advantage of individual, group, the organization and the society.

11. To recognize and satisfy individual needs and group goals by offering appropriate monetary and non monetary incentives.

Importance of Human resource Management The significance of human resource management can be discussed at four levels- Corporate, Professional, Social and national. 1. Significance for an Enterprise/ corporate- human resource management can help an enterprise in achieving its goals more efficiently in the following ways: (a) Attracting and retaining the required talent through effective human resource planning, recruitment, selection, placement, orientation, compensation and promotion policies. (b) Developing the necessary skills and right attitude among the employees through training, development, performance appraisal etc. (c) Securing willing cooperation of employees through motivation, participation, grievance handling etc. (d) Utilizing effectively the available human resource. (e) Ensuring that the enterprise will have in future a team of competent and dedicated employees. 2. Professional Significance- Effective management of human resource helps to improve the quality of work life. It permits team work among employees by providing a healthy working environment. It contributes to professional growth in the following ways: (a) Providing maximum opportunities for personal development of each employee. (b) Maintaining healthy relationships among individuals and different work groups. (c) Allocating work properly. 3. Social Significance- Sound human resource management has a great significance for the society. It helps to enhance the dignity of labour in the following ways: (a) Providing suitable employment that provides social and psychological satisfaction to people. (b) Maintaining a balance between the jobs available and the jobseekers in terms of numbers, qualifications, needs. (c) Eliminating waste of human resources through conservation of physical and mental health. 4. National Significance- Human resource and their management plays a vital role in the development of nation. Human resource management has become very significant in recent decades due to the following factors: (a) Increase in the size and complexity of organization, e.g. a multinational corporation employing millions of persons. (b) Rapid technological developments like computerization etc.

(c) Rise of professional and knowledgeable workers. (d) Increasing proportion of women in the workforce. (e) Growth of powerful nationwide trade unions. (f) Widening scope of legislation designed to protect the interest of the working class. (g) Growing expectations of society from employees. Evolution of the concept of Human Resource Management Modern concept of human resource management has developed through the following stages: 1. The Commodity Concept- Before the industrial revolution, the guild system was the beginning of human resource management. Guild 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 owners and employees were broken. Labour began to be considered a commodity to be bought and sold. 2. The factor of production concept- Under this concept, employees were considered 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. This concept was an improvement in so far as employees gained through better working conditions and higher earnings. 3. The paternalistic concept- Employees organized together on the basis of their common interest and formed trade unions. 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 these forces, employers began to provide schemes to workers. The welfare schemes included health facilities, recreation facilities, pension plans, group insurance schemes, housing facilities, etc. Employers and employees both began to realize that they cannot survive and prosper without each other. 4. The Humanitarian Concept- The humanitarian approach is based on the belief that employees had certain inalienable rights as human beings and it was the duty of the employer to protect these rights. It pointed out that an employee was not merely interested in material rewards. Rather social and psychological satisfaction was equally important. This approach is known as human relation concept. 5. The behavioural human resource concept- Several studies were conducted to analyse and understand human behavior in organizations. These studies led to the application of behavior sciences to the problems of individual and group behavior at work. Motivation, group dynamics, organizational climate, organizational conflict etc. became popular concepts. Employees began to be considered as valuable asset of an organization. Efforts were made to integrate employee with

the organization so that organizational goals and employees aspirations could be achieved simultaneously. 6. The Emerging concept- Now employees are considered as partners in the industry. They are gradually being given share in companys stock membership. Workers representatives are being appointed on the board of directors. This emerging trend is aimed at creating a feeling among workers that the organization is their own. Human resource management is emerging as a special academic discipline and as a profession. It is growing as a career with distinct specializations like human resource development, industrial relations etc. Roles of Human Resource Manager In big organizations, a separate department is set up for the efficient management of personnel. Such department known as Human Resource or Personnel Department works under the Human Resource Manager who is a specialist in human resource management and industrial relations. It is the HR manager who is responsible for the employment, training, development, appraisal etc. of personnel. Every manager has some responsibility for personnel functions, but now it has been recognized that these functions cannot be the specialist of every manager. Human Resource Manager organizes the personnel department to carry out the functions entrusted to it. Personnel department develops the sources of recruitment, selects the right kinds of people and helps the line managers to place and adjust the personnel. Human Resource Manager is responsible for training and development of the people working in the enterprise. He develops the various programmes for increasing the knowledge and skills of the employees in consultation with the line managers. Personnel department also helps the other departments in evaluating the performance of the employees by developing a suitable system of merit rating or performance appraisal. Determining the wages and salaries to be paid to the employees of different categories in the organization is another important function of the personnel department. Personnel department also undertakes research of human behavior in the organization by conducting attitude and morale surveys. Types of Roles of HR Manager The major roles of a HR manager are as follows: 1. Advice and counsel- The HR manager often serves as an in house consultant to supervisors, managers, and executives. Given their knowledge of internal employment issues like policies, labor agreements, past practices, ethics and corporate governance, and the needs of employees as well as their awareness of external trends like economic and employment data, new legal and regulatory issues.

2. Service- HR manager also performs a host of service activities such as recruiting, selecting, testing, planning, conducting training programs, and hearing employee concerns and complaints. Technical expertise in these areas is essential for HR managers. Managers must be convinced that the HR staff is there to help them increase their productivity rather than to impose obstacles to their goals. 3. Policy formulation and implementation- HR managers generally propose and draft new policies revisions to cover recurring problems or to prevent anticipated problems. HR managers may monitor performance of line departments and other staff departments to ensure conformity with established HR policies, procedures and practices. 4. Employee advocacy- One of the enduring roles of HR managers is to serve as an employee advocate- listening to employees concerns and representing their needs to managers. Competitive Challenges and Human Resources Management Human Resource Management conduct ongoing studies of the most pressing competitive issues which the firm face in todays scenario. The following reasons may be cited for the increased role of human resource management in the modern age of globalization, mass production and advanced technology: Advancement in technology Changes in legal environment Globalization Management of information Changing profile of workforce Need for quality human resource Managing workforce diversity Empowerment of workers

1. Advancement in technology- Many significant changes take place in technology almost every day. In order to make use of the latest technology, the appointment of right types of persons is necessary. The personnel can be fitted into new job properly only if the management performs its personnel function satisfactorily.

2. Changes in legal environment- Many changes are taking place in the legal framework within which the industrial relations system in the country is now functioning. It is the duty of the HR executive to be aware of these changes and bring about necessary adjustments within the organization so that greater utilization of human resources can be achieved. This, indeed is and

would remain a major challenge for the HR executive. It is the responsibility of the HR executive to anticipate the changes and prepare the organization to face them without any breakdown in its normal functioning.

3. Globalization- Revolutions in production technology and information technology (IT) have led to the expansion of the frontiers of organizational activities. Various countries have become interdependent in terms of technology, capital, purchases and sales. Global companies buy from the cheapest markets and sell where they can get maximum prices. They carry on production in the country where cost of production is the minimum. In other words, globalization calls for reduction of costs, improvement of quality, expansion of markets and diversification into new areas and markets.

4. Management of information- The world has entered the information age surpassing the industrial age which has been made possible by the ever increasing developments in the field of information technology (IT). The IT revolution is about real time access and sharing of digital information, consisting of visual images, sound and virtual worlds, made possible by core information technologies like digital networks, computer graphics.

5. Changing profile of workforce- The occupational make up of the workforce is changing rapidly and is likely to continue to do so. Employees expectations and aspirations have changed as a result of the organizational and environmental flux in which they work. There is evidence that the traditional career structures of bureaucratic organizations, with clearly defined pay and grading systems, are becoming increasingly unattractive. Instead of job security, the new generation of employees expects better pay packages including new kinds of perquisites.

6. Need for quality

human resource- Advancement in science and technology and mass

production has given rise to giant companies employing thousands of workers. The performance of the country depends on the quality of the people employed. In some industries, labour turnover is very high. The management is required to determine the manpower requirements well in advance. It has also to develop the existing workforce for future promotion. Management has to spend money on recruitment and selection, training, payment of wages and salaries etc.

7. Managing workforce diversity- In modern organizations, management of diverse workforce is a great challenge. Workforce diversity can be observed in terms of male and female workers, young and old workers, educated and uneducated workers unskilled and skilled workers and professional employees etc. Many organizations also have people of different castes, religions and nationalities. New work force will comprise more of educated and self conscious workers They will ask for higher degree of participation and avenues for self fulfillment. With the changes in work force demographics, employee expectations and attitudes have also shifted.

8. Empowerment of workers- Empowerment means every member of a society or organization being able to take control of his/her own destiny and realizing his/ her potential to the full. It involves giving more power to those who, at present, have little control over what they do and little ability to influence the decisions being made around them. The basic goals of empowerment are that all people should: Understand and feel good about themselves. Relate to each other with empathy and respect Give voluntary agreement to the rules and structures that govern their lives Have sufficient resources (of knowledge, training, authority, money etc.) to be able to contribute all the value they can to their chosen roles. Emplooyee Empowerment Empowerment in work setting involves giving employees the means, ability, and authority to do something. According to Newstrom and Davis, Empowerment is any process that provides greater autonomy through the sharing of relevant information and the provision of control over factors affecting job performance. Empowerment involves efforts to take full advantage of organisations human resources by giving everyone mre information and control over how they perform their jobs. Various techniques of empowerment range from participation in decision making to the use of self managed or empowered teams. Empowernment would be all the more necessary to speed up the process of decision making, make use of environmental opportunities and to serve the customers and society better. Empowered teams- A team may be defined as a group whose members have complementary skills and are committed to a common purpose or goals for which they hold themselves mutually accountable. The practice of working in teams for coordinated efforts towards specified goals is known as teamwork. A work team generates positive synergy through the coordinated efforts of team members. The team efforts

result in a level of performance that is greater than the sum of the individual inputs of the team members. Many organizations structure their processes around teams which may be of three kinds: Problem- solving teams- These are meant for binding solutions to specific problems. Cross functional teams- These are composed of staff from different functional departments such as finance, production, quality control, marketing etc. Empowered or self managed teams- Also known as self directed team, an empowered or self managed team is set up to plan, organize, influence amd control its own work situation with only minimal intervening and direction from top management. Creation of empowered teams is an important way of structuring, managing and rewarding work. Such teams require only minimum attention of the top management which can concentrate on strategic planning. The activities which may be delegated to the self managed teams include setting of work schedules, establishing work pace, determing the level of increase in salary and perquisites, designing the performance appraisal system etc. Self managed teams are being increasingly used in industrial organizations exposed to greater environmental changes. Managing Protean Career The Protean Career is a concept that requires everyone to 1) monitor and assess the job market; 2) anticipate future developments, trends, and industry shifts, 3) gain the necessary skills, qualifications, relationships, and assets to meet the shifts, and 4) adapt quickly to thrive in an ever-changing workplace. The word Protean comes from the Mythical Greek Sea God Proteus, who was best known for 1) predicting and foretelling the future and 2) his versatility and adaptability to acclimate himself to successfully meet and thrive in the future he envisioned. In todays transformational, constantly changing workplace, everyone must master the strengths of Proteus! There may be limited jobs, but there are unlimited opportunities. Today, anyone can reach out and touch 7 billion people around the globe for jobs, business opportunities, new markets for almost anything and for FREE ! But each of us must take personal responsibility for our futures. We can no longer depend on businesses / employers or government. We MUST depend on our own creativity and resourcefulness. A person following a protean career likes some freedom, growth and mobility. For Example, a university lecturer may gain so much satisfaction and fulfillment from teaching her students that she prefers to stay that level and do not apply for promotion to become, for example, a department head.

Job seekers must become opportunity seekers The entrepreneurial spirit must be reignited throughout our society, our educational system everywhere! The NEW career coach will teach Protean Careers. Authors, educational career center staff, and One-Stop trainers must acknowledge that we live in the post Industrial Age workplace and thus, prepare students and opportunity seekers to thrive in the new protean workplace. 6 tips to thrive in the new Protean workplace 1. Reduce television time and spend an hour a day contemplating the future and where you fit in. You cant change anything tomorrow with the same thoughts you have today. 2. Dont put all your financial eggs in one basket; consider multiple sources of income. 3. Bring more value to the marketplace tomorrow than you did today; invest in lifelong education and increase your worth, so you are compensated accordingly. 4. Create your own job: You dont have to invest big bucks to start a business. Just seek out opportunities and go for it! Become a painter, a cook, an electrician, a subcontractor, or form a web-based business. Be resourceful and identify ways to self-generate income. 5. Downsize your life and live within your means: The federal government is broke and most states are as well. All of society must become fiscally responsible. 6. Invest in good health: No one can build a thriving future with poor health, no energy, and a negative mindset. We all must work as hard on ourselves as we do on our careers. The concepts of protean and boundary less careers are still developing and there are many factors such (for example social/cultural beliefs and economic status) which impact their

adoptability/implementation. Nevertheless, they are important concepts/developments and have implications that should be considered. Implications for organisations: If you want to retain the best people make sure you provide them with the resources/opportunities necessary for managing their career, either within or outside your firm. Why outside your firm? Because they will not stick on, if you are not providing them with development opportunities that enhance their marketability. Moonlighting Phenomenon Moonlighting- where employees either hold a second job in addition to the primary one or hold multiple jobs. Moonlighters holding a second, part-time job work at nights after hours of daily work or on

weekends, There are numerous, varied reasons for moonlighting, the primary reason being extra income. Apart from additional earnings individuals crave to gain experience in different jobs in different environments prior to making a final career decision. Today's moonlighters also explore the possibilities of entrepreneurial opportunities or want to satisfy their passion/interest or take benefit of learning a specific skill in another field. For example, a moonlighter, who is a senior executive in a TV media company during the day, also works as a faculty teaching sales management, media planning and public relations in a reputed Mumbai institute on weekends. Another moonlighter, a senior banking executive of a reputed bank de-stresses himself by writing novels with banking as the backdrop in all of them. This is not a full time second job. but, it is one he enjoys as much as his banking job and is a great stress buster for him. People get into moonlighting by studying their life and career involving personal, family and financial situations, comprising long-term objectives. Many opt for studies on parents and societal demands thereby making people end up with careers that they were never meant to be in. An excellent example of this situation is depicted in the movie `3 Idiots', where one of the idiots has great talent in photography but learns engineering because his parents want him to. Moonlighting is a trend that is seen impacting industries such as IT, finance, law, medicine, media, etc. Many employers are unaware that their employees are moonlighters and in all probability employers may not have such policies on the same may be due to ignorance. But, of course employers can have policies to govern moonlighters not only to retain efficient employees and discourage moonlighting, but, also to embrace new relationships including the use of part time and temporary workers. Moonlighting is of two types viz. external and internal. In external moonlighting employees take up second jobs, assignments, freelance work outside their regular permanent job that they are doing everyday. In contrast, internal moonlighting happens within the organization that the employee works in everyday. Impact Of Moonlighting: Moonlighting has its obvious impact on moonlighters. Besides, having an adverse impact on daily routines by working extra hours, employees have to even sacrifice being with their families and friends or are unable to engage in any leisure time activity until they are pursuing a job in their area of leisure activity, otherwise they could end up with more responsibility and risks.

There are some plus points of moonlighters as they usually score higher on self-esteem than their one-job counterparts. They take part or volunteer in charitable organizations or support NGOs. Also, they score higher on the dominance factor, suffer less from anxiety and are more practical, downto-earth, emotionally stable and Independent. Also, some people possess the stamina to work relentlessly, and have the ability to recognize their own limits too. Moonlighters having these qualities can thrive on the excitement of the second job, and probably go with same energy to their regular day job. Is it legally permissible in India? There is no single employment labour law or otherwise, which restricts or provides for moonlighting in general. The restrictions or policy on moonlighting would differ from case to case or organization to organization. In other words, whether moonlighting is permitted or not would depend on a number of factors, like nature of the organization whether government or private, the terms of the employment agreement, HR policy of the organization, nature of work carried out by the concerned employee, etc. concerned employee, etc. Moonlighting is specifically prohibited for government servants/public officials. Structuring Moonlighting Policy To shape up a good policy for moonlighters here are a few guidelines for HR: The purposes behind a moonlighting policy need to be communicated appropriately. The policy can explain the expected performance standards from the employee by the employer which takes care of moonlighting activities not interfering with employees' regular, daily work. Remind employees of holding company's information as confidential. Caution against conflicts of interests between the two jobs. The policy should also discourage any outside work activity that affects the employee's punctuality, loyalty and ability to execute other responsibilities of the primary job. Disciplinary actions should be stated for the reason if the outside work causes or contributes to job-related problems or conflict of interests.