Lesson Notes 1: Introduction to Human Resource management.

Human Resource Management: Defined Human Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programmes relating to human resources to optimize their contribution towards the realization of organizational objectives. In other words, HRM is concerned with getting better results with the collaboration of people. Difference between Personnel management / HR management. PM is traditional, routine, maintenanceoriented, administrative function PM is an independent function with independent sub-functions. PM is reactive, responding to demands as and when they arise. PM is the exclusive responsibility of the personnel department. The scope of PM is relatively narrow with a focus on administering people. Important motivators in PM are compensation, rewards, job simplification etc. In PM improved satisfaction is considered to be the cause for improved performance In HRD performance is the cause and satisfaction is the result. HRD is continuous, on-going development function aimed at improving human processes. HRD follows the systems thinking approach. It is not considered in isolation from the larger organization HRD is proactive, anticipating, planning and advancing continuously. HRD is a concern for all managers in the organization The scope of HRD views the organization as a whole and lays emphasis on building a dynamic culture. HRD considers work groups, challenges and creativity on the job as motivators.

Human Resource Management: Nature Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels

in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.
Human Resource Management: Scope The scope of HRM is very wide: 1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc. 2. Welfare aspect-It deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Evolution of the Human Resource Management The human relations or behavioral school of management began in 1927 with a group of studies conducted at the Hawthorne plant of Western Electric, an AT&T subsidiary. In one of the studies, experimenters chose two women as test subjects and asked them to choose four other workers to join the test group. Together the women worked in a separate room over the course of five years (1927-1932) assembling telephone relays. Output was measured mechanically by counting how many finished relays each dropped down a chute. In the experiment room, they had a supervisor who discussed changes with them and at times used their suggestions. Then the researchers spent five years measuring how different variables impacted the group's and individuals' productivity. Some of the variables were:

changing the pay rules so that the group was paid for overall group production, not individual production giving two 5-minute breaks (after a discussion with them on the best length of time), and then changing to two 10-minute breaks (not their preference). Productivity increased, but when they received six 5-minute rests, they disliked it and reduced output.

providing food during the breaks shortening the day by 30 minutes (output went up); shortening it more (output per hour went up, but overall output decreased); returning to the first condition (where output

peaked). Changing a variable usually increased productivity, even if the variable was just a change back to the original condition. Researchers hypothesized that choosing one's own coworkers, working as a group, being treated as special (as evidenced by working in a separate room), and having a sympathetic supervisor

were the real reasons for the productivity increase. One interpretation, mainly due to Elton Mayo, was that "the six individuals became a team and the team gave itself wholeheartedly and spontaneously to cooperation in the experiment."

Based upon work with clerical and production workers, an important conclusion was that supervisors of high-producing units behaved differently from those of low-producing units. Among the differences in style noted were that supervisors of productive groups in comparison to their lower producing counterparts were: More emotionally supportive of subordinates. More likely to pay a differentiated role - plan, regulate, and coordinate the activities of subordinates, but not become directly involved in work tasks. More likely to exercise general rather than close or light supervision. The origin and progress of the human relations movement (particularly in U.S.A.) has been due to certain social and cultural forces working there, such as Recognition of the dignity of the individual and his personality. The individual has a lot of freedom of choice and the idea of decision-making by oneself is deep-rooted in the national tradition. A child is brought up to value independence and encouraged to think on his own and not to be dependent on parents. Virtual disappearance of owner managers and the growth of professional managers capable of managing according to professional code. * Strong organizations of labour, at all levels, calling for higher skills in communication and participative behaviour on the part of the management. Shortage of labour led to skilled labour being treated as nearly irreplaceable. Hence, much greater care in utilising this scarce and valuable resource had to be thought of in the form of "Human Relations." The changing work environment-greater specialization and a large scope of operations - which require a greater degree of managerial effectiveness with and through workers. A significant increase in the general educational level of workers who, as a result, demanded more from their employers. Human Relations Theory Human Relations in Management is a process that brings workers into contact with and causes them to be influenced by their leaders, their jobs, and other aspects of the organizations which they work. It includes everything in the work environment that influences the behavior of workers: their relationships with their bosses and with other workers, the nature of the work they do, and the impact on them of the practices of the organization as a whole. Human Resource Management: Objectives To To To To To To To help the organization reach its goals. ensure effective utilization and maximum development of human resources. ensure respect for human beings. To identify and satisfy the needs of individuals. ensure reconciliation of individual goals with those of the organization. achieve and maintain high morale among employees. provide the organization with well-trained and well-motivated employees. increase to the fullest the employee's job satisfaction and self-actualization.

To To To To To To

develop and maintain a quality of work life. be ethically and socially responsive to the needs of society. develop overall personality of each employee in its multidimensional aspect. enhance employee's capabilities to perform the present job. equip the employees with precision and clarity in transaction of business. inculcate the sense of team spirit, team work and inter-team collaboration.

Human Resource Management: Functions In order to achieve the above objectives, Human Resource Management undertakes the following activities: 1. Human resource or manpower planning. 2. Recruitment, selection and placement of personnel. 3. Training and development of employees. 4. Appraisal of performance of employees. 5. Taking corrective steps such as transfer from one job to another. 6. Remuneration of employees. 7. Social security and welfare of employees. 8. Setting general and specific management policy for organizational relationship. 9. Collective bargaining, contract negotiation and grievance handling. 10. Staffing the organization. 11. Aiding in the self-development of employees at all levels. 12. Developing and maintaining motivation for workers by providing incentives. 13. Reviewing and auditing manpower management in the organization 14. Potential Appraisal. Feedback Counseling. 15. Role Analysis for job occupants. 16. Job Rotation. 17. Quality Circle, Organization development and Quality of Working Life. Major trends To know the business environment an organization operates in, three major trends must be considered: 1. Demographics: the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc. 2. Diversity: the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of "baby-boomers" or older employees in comparison to thirty years ago. Advocates of "workplace diversity" simply advocate an employee base that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation, etc. 3. Skills and qualifications: as industries move from manual to more managerial professions so does the need for more highly skilled graduates. If the market is "tight" (i.e., not enough staff for the jobs), employers must compete for employees by offering financial rewards, community investment, etc..