Human Resource Management

Shakti Awasthi

Human Resource Management

 HRM is concerned with managing manpower to improve individual , group and organizational effectiveness.
HRM involves:
HR planning Recruitment and selection Training and development Motivation Performance appraisal Career development Promotions and transfers

Definitions
David Decenzoand Stephen Robbins defined HRM as: process consists of four functions: acquisition, development , motivation and maintenance of Human resources. Human Resource Management is concerned with the people dimension in management . It is a process consisting of the acquisition, development, motivation and maintenance of Human resources. Wendell French defines HRM as: The philosophy ,policies ,procedures and practices related to the management of people within the organization. Edwin Flippo Planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.

Nature
HRM is a process Acquisition Development Motivation Maintenance Focus on Objectives Universal Application Continuous in Nature Integrated use of Subsystems Multidisciplinary Approach Key element in Coping with Problems Development of Team Spirit Development of Employees Potentialities Long term Benefits

Objectives of HRM
Ensure availability of competent workforce Integration of goals Cost containment Goals through able employees Harmonious Relationships Optimization of Human resources Growth and development of employees Satisfy needs Motivation Legal requirements Self Actualization

Scope of HRM
1. 2. Process: -HRM is a process of managing human resources. HRM process is undertaken to achieve organizational objectives. The process of HRM includes; Acquiring the services of people (selection) Developing the skills of human resources (training) Motivating the manpower. Ensuring the commitment of manpower towards organizational activities Multidisciplinary approach: HRM is dynamic and multidisciplinary approach. HR managers make use of various disciplines to manage the workforce effectively. The various disciplines include; Management Science, Psychology, Sociology, Communication, Economics, Organization Behavior, Philosophy, etc.

3.

4.

5.

6.

Universal Applications: HRM is all pervasive. It is applicable to business and non business organizations. For instance, a non-business organization, such as a college or university has to select, train and motivate human resources to achieve its objectives. Continuous in Nature: - HRM is continuous activity. Organizations need to manage human resources on a continuous basis. Organizations need to adapt to changing environment, i.e., changes in employees expectations, changes in consumer behavior, changes in competitors strategies, etc. Objective Oriented: - HRM places emphasis on the accomplishment of objectives. The objectives can be broadly listed under to four categories; a. Individual objectives employees such as career development, promotion, etc. b. Group objectives such as team work. c. Organizational objectives such as an increase in market share, profits, etc. Long-term Benefits: - HRM brings long-term benefits to the individuals, organizations and the society as well. Employees gain long-term benefits by the way of better monetary and non-monetary incentives. The organization can gain by the way of higher returns on investment and better corporate image.

7. Development of Team Spirit: HRM aims at developing and maintaining team spirit in every organizational unit, i.e., groups and departments. Such team spirit is required so that the people work effectively together and contribute to the success of the organization.

8. Key Element in Coping with problems: -Economic, technological and social trends have created acute problems for business and industry. As a result, management has focused attention on HRM as key elements in coping with these problems. 9. Integrated use of subsystems: - HRM involves the integrated use of subsystems such as training and development, career development, organizational development, performance appraisal, potential appraisal, etc.

10. Development of Employees Potentialities: - HRM aims at development of employees potentialities to the maximum possible extent, so that they gain maximum satisfaction from their job.

 Differences between Personnel Management (PM) and Human Resources Management (HRM) 1. Personnel mean employed persons of an organization. Management of these people is personnel management (PM). Human resource management (HRM) is the management of employees knowledge, aptitudes, abilities, talents, creative abilities and skills/competencies. 2. PM is traditional, routine, maintenance-oriented, administrative function whereas HRM is continuous, on-going development function aimed at improving human processes. 3. PM is an independent function with independent sub-functions. HRM follows the systems thinking approach. It is not considered in isolation from the larger organization and must take into account the linkages and interfaces.

 4. 5.

PM is treated like a less important auxiliary function whereas HRM is considered a strategic management function. PM is reactive, responding to demands as and when they arise. HRM is proactive, anticipating, planning and advancing continuously. PM is the exclusive responsibility of the personnel department. HRM is a concern for all managers in the organization and aims at developing the capabilities of all line managers to carry out the human resource related functions. The scope of PM is relatively narrow with a focus on administering people. The scope of HRM views the organization as a whole and lays emphasis on building a dynamic culture. PM is primarily concerned with recruitment, selection and administration of manpower. HRM takes efforts to satisfy the human needs of the people at work that helps to motivate people to make their best contribution.

6.

7.

8.

 9.

Important motivators in PM are compensation, rewards, job simplification and so on. HRM considers work groups, challenges and creativity on the job as motivators.
In PM improved satisfaction is considered to be the cause for improved performance but in HRM it is the other way round (performance is the cause and satisfaction is the result). In PM, employee is treated as an economic unit as his services are exchanged for wages/salary. Employee in HRM is treated not only as economic unit but also a social and psychological entity. PM treats employee as a commodity or a tool or like equipment that can be bought and used. Employee is treated as a resource and as a human being. In PM employees are considered as cost centers and therefore, management controls the cost of labor. HRM treats employees as profit centers and therefore, the management invests in this capital through their development and better future utility.

10.

11.

12.

13.

 14. PMs angle is that employees should be used mostly for organizational benefits and profits. HRM angle emphasizes on the mutual benefits, both of employees and their families and also the company. 15. PM preserves information and maintains its secrecy. In HRM communication is one of its main tasks which take into account vertical, lateral and feedback type communication.

PERSONNEL MANAGEMENT

The Personnel Function in our organization

Syllabus
The Personnel Function in our organization Recruitment, Induction, Placement & Development, Personnel Budget Personnel Policies & Standing orders Absenteeism, Personnel Turnover & Problem of indiscipline Transfers, Promotions & Voluntary retirements Compensation Plans - Perquisites & Bonus Job status, Grade & Salary & wage structure Out fore, Measure Morale studies & Personnel Research

The Personnel Function in organization

Definition of Personnel Management The Role of the Personnel Manager Challenges of Modern Personnel Management Approaches to Personnel Management Organizing the Personnel Unit Planning the Personnel Program Controlling the Personnel Unit

PERSONNEL MANAGEMENT - Definition

Personnel Management is the
Planning, Organizing, Directing and Controlling

Of the
Procurement, Development, Compensation, Integration, Maintenance & Separation

Of human resources to the end that individual, organizational, and societal objectives are accomplished.

The Role of the Personnel Manager

The Personnel Manager has Exclusive responsibility of
Personnel records, Insurance Benefits administration Unemployment compensation administration Personnel Research

The Heart of a Personnel Programme itself requires considerable coordination, as well as coordination with units in the remainder of the organization.

Challenges of Modern Personnel Management

Changing Mix of the Work force Changing Personal Values of the Work force Changing expectations of citizen-employees Changing levels of productivity Changing demands of government

Changing Mix of the workforce.

Increased numbers of minority members entering occupations requiring greater skills. Increasing levels of formal education for the entire work force. More female employees. More married female employees. More working mothers. A steadily increasing majority of white-collar employees in place of the blue-collar.

Changing Personal Values of the Work Force

Better morale Better fit of work time to the employees body clock Improving handling of fluctuating workloads Increased customer service Reduced employee absenteeism Reduced turnover

Challenges of Modern Personnel Management contd.

Changing Expectations of Citizen-Employees
Freedom of Speech Right to privacy

Changing Levels of Productivity

Numerous laws Increase in new numbers of employees Adversial relations with labour unions

Changing Demands of Government

In procurement, development, compensation, integration, maintenance and separation.

Approaches to Personnel Management

Mechanical Approach Paternalism Social System

Mechanical Approach toward Personnel

Labour must be classified with capital and land. Personnel are controllable, predictable, and interchangeable. Techniques such as time study, incentive wages were introduced. Problems incurred were
Loss of jobs through development of new machines or work techniques Decreased economic security leading to formation of labour organizations Labour organizations grew at a very slow pace Decreased pride in work

Paternalism
Management must assume a
fatherly and protective attitude

Toward employees. Activities such as

Company stores Company homes and Recreational facilities

were started

Social System
The firm is viewed as a complex central system operating within a complex environment which can be termed as outer-extended system The central system cannot be closed & directed in a mechanistic fashion. Options are available to central system members with the aid of labour unions, government, and various public groups.

Organizing the Personnel Unit

Bases of Departmentation
Procurement (employment) Development (training) Compensation (wage & salary administration) Integration (labor relations) Maintenance (safety) Separation (employee services, retirement)

Organizing the Personnel Unit

Line & Personnel Staff relationships
Line person may Advise and not Command or Order Staff relationship is of Service Staff advice compels the line person only to listen & not accept or follow advice Staff should be able to give truthful advice to superiors without fear of losing their jobs

Planning the Personnel Programme

Planning is determination of anything in advance of action. Decision Making Programmes and Policies The Computer and Personnel Standards

Decision Making
1. Recognize & define a problem that calls for action 2. Determine possible alternative solutions 3. Collect and analyze facts bearing upon the problem. 4. Decide on a solution

Programmes and Policies In 4 areas

1. Designing enriched jobs 2. The ease with which it can be implemented in the organization 3. Projected economic benefits to the firm 4. Possible economic risks associated with the programmes.

The Computer and Personnel

Payroll Timekeeping Taxes Increases etc. Personnel Skills Education Interests etc Fringe benefits Pensions Insurance Medical, etc

Integrated Computer system OUTPUTS Development- each employee skill profile Procurement Basic records Identification of vacancies Applicant flow ( when applied, source, process, hiring decision, why rejected etc.. Compensation- salary by job, education etc. Integration- grievance by unit, employee etc. Maintenance- Govt. reports (accidents, lost time etc.)

Separation- terminated employee reports

Standards
It is an established criterion or model against which actual results can be compared. Results or Standards cover
Time and Cost variables Method or function Personnel & Physical factors

Controlling the Personnel Unit

STRATEGIC CONTROL POINTS Procurement
Formal placement follow-up of employee job satisfaction

Development
Quality losses

Compensation
Wage & salary budgets

Integration
Morale surveys

Maintenance
Insurance premiums

Separation
Number of retirees participating in retirement programmes

The Personnel Audit & Human Resources Accounting

The Personnel Audit
Systematic survey & analysis of all operative functions of personnel, with a summarized statement of findings and recommendations for correction of deficiencies

Human Resources Accounting

Suppose a major catastrophe wiped out all the human resources in your organization, how long would it take & how much would it cost to replace them.

Dimension 1. Employment Contract 2. Rules 3. Key Relations 4. Speed of decision 5. Management role

Personnel Management Careful delineation of written contracts Importance of devising clear rules Labour Management Slow Transaction

HRM Aim to go beyond contract Can do outlook, Impatience with rule Customer Fast Transformational

6. Job design
7. Respect for employees

Division of labor
Labor is treated as a tool which is expendable & replaceable.

Team work
People are treated as assets to be used for the benefit of an organization, its employees & the society as a whole. Mutuality of interests

8. Shared interest

Interests of the organization are uppermost

Composition of HR / Personnel Department

Director HRM

ManagerPersonnel

Manager- Administration

Manager-HRD

Manager- IR

Appraisal

T & D

PR

Canteen

Medical

Welfare

Transport

Legal

HRP

Hiring

Grievance Handling

Compensation